Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 02, 2018 | Jun. 25, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | HARLEY DAVIDSON INC | ||
Entity Central Index Key | 793,952 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 168,413,679 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 9,561,795,781 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||
Motorcycles and Related Products | $ 4,915,027 | $ 5,271,376 | $ 5,308,744 |
Financial Services | 732,197 | 725,082 | 686,658 |
Total revenue | 5,647,224 | 5,996,458 | 5,995,402 |
Costs and expenses: | |||
Motorcycles and Related Products cost of goods sold | 3,261,683 | 3,419,710 | 3,356,284 |
Financial Services interest expense | 180,193 | 173,756 | 161,983 |
Financial Services provision for credit losses | 132,444 | 136,617 | 101,345 |
Selling, administrative and engineering expense | 1,181,641 | 1,217,439 | 1,220,095 |
Total costs and expenses | 4,755,961 | 4,947,522 | 4,839,707 |
Operating income | 891,263 | 1,048,936 | 1,155,695 |
Investment income | 3,580 | 4,645 | 6,585 |
Interest expense | 31,004 | 29,670 | 12,117 |
Income before provision for income taxes | 863,839 | 1,023,911 | 1,150,163 |
Provision for income taxes | 342,080 | 331,747 | 397,956 |
Net income | $ 521,759 | $ 692,164 | $ 752,207 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 3.03 | $ 3.85 | $ 3.71 |
Diluted (in dollars per share) | 3.02 | 3.83 | 3.69 |
Cash dividends per common share (in dollars per share) | $ 1.46 | $ 1.40 | $ 1.24 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 521,759 | $ 692,164 | $ 752,207 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 46,280 | (9,288) | (55,362) |
Derivative financial instruments | (29,778) | 6,638 | (13,156) |
Marketable securities | 1,194 | (100) | (394) |
Pension and postretirement benefit plans | 47,636 | 52,574 | (31,350) |
Total other comprehensive income (loss), net of tax | 65,332 | 49,824 | (100,262) |
Comprehensive income | $ 587,091 | $ 741,988 | $ 651,945 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 687,521 | $ 759,984 |
Marketable securities | 0 | 5,519 |
Accounts receivable, net | 329,986 | 285,106 |
Finance receivables, net | 2,105,662 | 2,076,261 |
Inventories | 538,202 | 499,917 |
Restricted cash | 47,518 | 52,574 |
Other current assets | 175,853 | 174,491 |
Total current assets | 3,884,742 | 3,853,852 |
Finance receivables, net | 4,859,424 | 4,759,197 |
Property, plant and equipment, net | 967,781 | 981,593 |
Prepaid pension costs | 19,816 | 0 |
Goodwill | 55,947 | 53,391 |
Deferred income taxes | 109,073 | 167,729 |
Other long-term assets | 75,889 | 74,478 |
Total assets | 9,972,672 | 9,890,240 |
Current liabilities: | ||
Accounts payable | 227,597 | 235,318 |
Accrued liabilities | 529,822 | 486,652 |
Short-term debt | 1,273,482 | 1,055,708 |
Current portion of long-term debt, net | 1,127,269 | 1,084,884 |
Total current liabilities | 3,158,170 | 2,862,562 |
Long-term debt, net | 4,587,258 | 4,666,975 |
Pension liability | 54,606 | 84,442 |
Postretirement healthcare liability | 118,753 | 173,267 |
Other long-term liabilities | 209,608 | 182,836 |
Commitments and contingencies (Note 14) | ||
Shareholders’ equity: | ||
Preferred stock, none issued | 0 | 0 |
Common stock, 181,286,547 and 180,595,054 shares issued, respectively | 1,813 | 1,806 |
Additional paid-in-capital | 1,422,808 | 1,381,862 |
Retained earnings | 1,607,570 | 1,337,673 |
Accumulated other comprehensive loss | (500,049) | (565,381) |
Treasury stock (13,195,731 and 4,647,345 shares, respectively), at cost | (687,865) | (235,802) |
Total shareholders’ equity | 1,844,277 | 1,920,158 |
Total liabilities and shareholders' equity | 9,972,672 | 9,890,240 |
Variable Interest Entity, Primary Beneficiary | ||
Current assets: | ||
Finance receivables, net | 194,813 | 225,289 |
Other current assets | 2,148 | 2,781 |
Finance receivables, net | 521,940 | 643,047 |
Restricted cash - current and non-current | 48,706 | 57,057 |
Current liabilities: | ||
Current portion of long-term debt, net | 209,247 | 241,396 |
Long-term debt, net | $ 422,834 | $ 554,879 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares issued | 0 | 0 |
Common stock, shares issued | 181,286,547 | 180,595,054 |
Treasury stock, shares | 13,195,731 | 4,647,345 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net cash provided by operating activities (Note 2) | $ 1,005,061 | $ 1,174,339 | $ 1,100,118 |
Cash flows from investing activities: | |||
Capital expenditures | (206,294) | (256,263) | (259,974) |
Origination of finance receivables | (3,591,948) | (3,664,495) | (3,751,830) |
Collections on finance receivables | 3,228,311 | 3,175,031 | 3,136,885 |
Proceeds from finance receivables sold | 0 | 312,571 | 0 |
Sales and redemptions of marketable securities | 6,916 | 40,014 | 11,507 |
Acquisition of business | 0 | 0 | (59,910) |
Other | 547 | 411 | 7,474 |
Net cash used by investing activities | (562,468) | (392,731) | (915,848) |
Cash flows from financing activities: | |||
Proceeds from issuance of medium-term notes | 893,668 | 1,193,396 | 595,386 |
Repayments of medium-term notes | (800,000) | (451,336) | (610,331) |
Proceeds from issuance of senior unsecured notes | 0 | 0 | 740,385 |
Proceeds from securitization debt | 0 | 0 | 1,195,668 |
Repayments of securitization debt | (444,671) | (665,400) | (1,008,135) |
Borrowings of asset-backed commercial paper | 469,932 | 62,396 | 87,442 |
Repayments of asset-backed commercial paper | (176,227) | (71,500) | (72,727) |
Net increase (decrease) in credit facilities and unsecured commercial paper | 212,809 | (145,812) | 469,473 |
Net change in restricted cash | 8,458 | 43,495 | 11,410 |
Dividends paid | (251,862) | (252,321) | (249,262) |
Purchase of common stock for treasury | (465,263) | (465,341) | (1,537,020) |
Excess tax benefits from share-based payments | 0 | 2,251 | 3,468 |
Issuance of common stock under employee stock option plans | 11,353 | 15,782 | 20,179 |
Net cash used by financing activities | (541,803) | (734,390) | (354,064) |
Effect of exchange rate changes on cash and cash equivalents | 26,747 | (9,443) | (14,677) |
Net (decrease) increase in cash and cash equivalents | (72,463) | 37,775 | (184,471) |
Cash and cash equivalents: | |||
Cash and cash equivalents—beginning of period | 759,984 | 722,209 | 906,680 |
Net (decrease) increase in cash and cash equivalents | (72,463) | 37,775 | (184,471) |
Cash and cash equivalents—end of period | $ 687,521 | $ 759,984 | $ 722,209 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Balance |
Beginning Balance, shares at Dec. 31, 2014 | 344,174,653 | |||||
Balance, beginning of period at Dec. 31, 2014 | $ 2,909,286 | $ 3,442 | $ 1,265,257 | $ 8,459,040 | $ (514,943) | $ (6,303,510) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 752,207 | 752,207 | ||||
Total other comprehensive income (loss), net of tax | (100,262) | (100,262) | ||||
Dividends | (249,262) | (249,262) | ||||
Repurchase of common stock | (1,537,020) | (1,537,020) | ||||
Share-based compensation and 401(k) match made with Treasury shares | 40,851 | 39,457 | 1,394 | |||
Issuance of nonvested stock (in shares) | 162,193 | |||||
Issuance of nonvested stock | 0 | $ 2 | (2) | |||
Exercise of stock options (in shares) | 518,858 | |||||
Exercise of stock options | 20,179 | $ 5 | 20,174 | |||
Tax benefit of equity awards | 3,675 | 3,675 | ||||
Ending Balance, shares at Dec. 31, 2015 | 344,855,704 | |||||
Balance, end of period at Dec. 31, 2015 | 1,839,654 | $ 3,449 | 1,328,561 | 8,961,985 | (615,205) | (7,839,136) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 692,164 | 692,164 | ||||
Total other comprehensive income (loss), net of tax | 49,824 | 49,824 | ||||
Dividends | (252,321) | (252,321) | ||||
Repurchase of common stock | (465,341) | (465,341) | ||||
Share-based compensation and 401(k) match made with Treasury shares | 39,826 | 36,956 | 2,870 | |||
Issuance of nonvested stock (in shares) | 272,479 | |||||
Issuance of nonvested stock | 0 | $ 2 | (2) | |||
Exercise of stock options (in shares) | 466,871 | |||||
Exercise of stock options | 15,782 | $ 5 | 15,777 | |||
Tax benefit of equity awards | $ 570 | 570 | ||||
Retirement of treasury stock (in shares) | (165,000,000) | (165,000,000) | ||||
Retirement of treasury stock | $ 0 | $ (1,650) | (8,064,155) | 8,065,805 | ||
Ending Balance, shares at Dec. 31, 2016 | 180,595,054 | |||||
Balance, end of period at Dec. 31, 2016 | 1,920,158 | $ 1,806 | 1,381,862 | 1,337,673 | (565,381) | (235,802) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 521,759 | 521,759 | ||||
Total other comprehensive income (loss), net of tax | 65,332 | 65,332 | ||||
Dividends | (251,862) | (251,862) | ||||
Repurchase of common stock | (465,263) | (465,263) | ||||
Share-based compensation and 401(k) match made with Treasury shares | 42,800 | 29,600 | 13,200 | |||
Issuance of nonvested stock (in shares) | 408,950 | |||||
Issuance of nonvested stock | $ 0 | $ 4 | (4) | |||
Exercise of stock options (in shares) | 282,000 | 282,543 | ||||
Exercise of stock options | $ 11,353 | $ 3 | 11,350 | |||
Ending Balance, shares at Dec. 31, 2017 | 181,286,547 | |||||
Balance, end of period at Dec. 31, 2017 | $ 1,844,277 | $ 1,813 | $ 1,422,808 | $ 1,607,570 | $ (500,049) | $ (687,865) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation – The consolidated financial statements include the accounts of Harley-Davidson, Inc. and its wholly-owned subsidiaries (the Company), including the accounts of the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). In addition, certain variable interest entities (VIEs) related to secured financing are consolidated as the Company is the primary beneficiary. All intercompany accounts and transactions are eliminated. All of the Company’s subsidiaries are wholly owned and are included in the consolidated financial statements. Substantially all of the Company’s international subsidiaries use their respective local currency as their functional currency. Assets and liabilities of international subsidiaries have been translated at period-end exchange rates, and revenues and expenses have been translated using average exchange rates for the period. Monetary assets and liabilities denominated in a currency that is different from an entity's functional currency are remeasured from the transactional currency to the entity's functional currency on a monthly basis. The effect of this remeasurement is reported in Motorcycle and Related Products cost of goods sold. The pre-tax gain for foreign currency remeasurements was $15.0 million for the year ended 2017. The pre-tax loss for foreign currency remeasurements was $15.1 million and $21.5 million for the years ended 2016 and 2015, respectively. The Company operates in two reportable segments: Motorcycles & Related Products (Motorcycles) and Financial Services. Use of Estimates – The preparation of financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents – The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Marketable Securities – The Company’s marketable securities consisted of the following at December 31 (in thousands): 2017 2016 Available-for-sale securities: corporate bonds $ — $ 5,519 Trading securities: mutual funds 48,006 38,119 Total marketable securities $ 48,006 $ 43,638 The Company’s available-for-sale securities were carried at fair value with any unrealized gains or losses reported in other comprehensive income. During 2017 and 2016, unrealized losses were not material. There were no available-for-sale securities outstanding at December 31, 2017 . The Company's trading securities relate to investments held by the Company to fund certain deferred compensation obligations. The trading securities are carried at fair value with gains and losses recorded in net income and investments are included in other long-term assets on the consolidated balance sheets. Accounts Receivable, Net – The Company’s motorcycles and related products are sold to independent dealers outside the U.S. and Canada generally on open account and the resulting receivables are included in accounts receivable in the Company’s consolidated balance sheets. The allowance for doubtful accounts deducted from total accounts receivable was $4.1 million and $2.7 million as of December 31, 2017 and 2016 , respectively. Accounts receivable are written down once management determines that the specific customer does not have the ability to repay the balance in full. The Company’s sales of motorcycles and related products in the U.S. and Canada are financed by the purchasing dealers through HDFS and the related receivables are included in finance receivables in the consolidated balance sheets. Finance Receivables, Net – Finance receivables include both retail and wholesale finance receivables, net, including amounts held by consolidated VIEs. Finance receivables are recorded in the financial statements at amortized cost net of an allowance for credit losses. The provision for credit losses on finance receivables is charged to earnings in amounts sufficient to maintain the allowance for credit losses at a level that is adequate to cover estimated losses of principal inherent in the existing portfolio. Portions of the allowance for credit losses are specified to cover estimated losses on finance receivables specifically identified for impairment. The unspecified portion of the allowance covers estimated losses on finance receivables which are collectively reviewed for impairment. Finance receivables are considered impaired when management determines it is probable that the Company will be unable to collect all amounts due according to the terms of the loan agreement. The retail portfolio primarily consists of a large number of small balance, homogeneous finance receivables. The Company performs a periodic and systematic collective evaluation of the adequacy of the retail allowance for credit losses. The Company utilizes loss forecast models which consider a variety of factors including, but not limited to, historical loss trends, origination or vintage analysis, known and inherent risks in the portfolio, the value of the underlying collateral, recovery rates and current economic conditions including items such as unemployment rates. Retail finance receivables are not evaluated individually for impairment prior to charge-off and therefore are not reported as impaired loans. The wholesale portfolio is primarily composed of large balance, non-homogeneous loans. The Company’s wholesale allowance evaluation is first based on a loan-by-loan review. A specific allowance for credit losses is established for wholesale finance receivables determined to be individually impaired when management concludes that the borrower will not be able to make full payment of contractual amounts due based on the original terms of the loan agreement. The impairment is determined based on the cash that the Company expects to receive discounted at the loan’s original interest rate or the fair value of the collateral, if the loan is collateral-dependent. Finance receivables in the wholesale portfolio that are not individually evaluated for impairment are segregated, based on similar risk characteristics, according to the Company’s internal risk rating system and collectively evaluated for impairment. The related allowance is based on factors such as the Company’s past loan loss experience, the specific borrower’s financial performance as well as ability to repay, current economic conditions as well as the value of the underlying collateral. Impaired finance receivables also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulty. Generally, it is the Company’s policy not to change the terms and conditions of finance receivables. However, to minimize the economic loss, the Company may modify certain impaired finance receivables in troubled debt restructurings. Total restructured finance receivables are not significant. Repossessed inventory representing recovered collateral on impaired finance receivables is recorded at the lower of cost or net realizable value. In the period during which the collateral is repossessed, the related finance receivable is adjusted to the fair value of the collateral through a charge to the allowance for credit losses and reclassified to repossessed inventory. Repossessed inventory is included in other current assets and was $19.6 million and $19.3 million at December 31, 2017 and 2016 , respectively. Asset-Backed Financing – The Company participates in asset-backed financing both through asset-backed securitization transactions and through asset-backed commercial paper conduit facilities. In the Company's asset-backed financing programs, the Company transfers retail motorcycle finance receivables to special purpose entities (SPE), which are considered VIEs under U.S. GAAP. Each SPE then converts those assets into cash, through the issuance of debt. The Company retains servicing rights for all of the retail motorcycle finance receivables transferred to SPEs as part of an asset-backed financing. The accounting treatment for asset-backed financings depends on the terms of the related transaction and the Company’s continuing involvement with the VIE. In transactions where the Company has power over the significant activities of the VIE and has an obligation to absorb losses or the right to receive benefits from the VIE that are potentially significant to the VIE, the Company is the primary beneficiary of the VIE and consolidates the VIE within its consolidated financial statements. On a consolidated basis, the asset-backed financing is treated as a secured borrowing in this type of transaction and is referred to as an on-balance sheet asset-backed financing. In transactions where the Company is not the primary beneficiary of the VIE, the Company must determine whether it can achieve a sale for accounting purposes under ASC Topic 860, "Transfers and Servicing." To achieve a sale for accounting purposes, the assets being transferred must be legally isolated, not be constrained by restrictions from further transfer, and be deemed to be beyond the Company’s control. If the Company does not meet all these criteria for sale accounting, then the transaction is accounted for as a secured borrowing and is referred to as an on-balance sheet asset-backed financing. If the Company meets all three of the sale criteria above, the transaction is recorded as a sale for accounting purposes and is referred to as an off-balance sheet asset-backed financing. Upon sale, the retail motorcycle finance receivables are removed from the Company’s balance sheet and a gain or loss is recognized for the difference between the cash proceeds received, the assets derecognized, and the liabilities recognized as part of the transaction. The gain or loss on sale is included in Financial Services revenue in the Consolidated Statement of Income. The Company is not required, and does not currently intend, to provide any additional financial support to the on or off-balance sheet VIEs associated with these transactions. Investors and creditors in these transactions only have recourse to the assets held by the VIEs. Inventories – Substantially all inventories located in the United States are valued using the last-in, first-out (LIFO) method. Other inventories totaling $234.9 million at December 31, 2017 and $221.7 million at December 31, 2016 are valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Property, Plant and Equipment – Property, plant and equipment is recorded at cost. Depreciation is determined on the straight-line basis over the estimated useful lives of the assets. The following useful lives are used to depreciate the various classes of property, plant and equipment: buildings – 30 years; building equipment and land improvements – 7 years; machinery and equipment – 3 to 10 years; furniture and fixtures – 5 years; and software – 3 to 7 years. Accelerated methods of depreciation are used for income tax purposes. Goodwill – Goodwill represents the excess of acquisition cost over the fair value of the net assets purchased. Goodwill is tested for impairment, based on financial data related to the reporting unit to which it has been assigned, at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The impairment test involves comparing the estimated fair value of the reporting unit associated with the goodwill to its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, goodwill must be adjusted to its implied fair value. During 2017 and 2016 , the Company performed a quantitative test on its goodwill balances for impairment and no adjustments were recorded to goodwill as a result of those reviews. Long-lived Assets – The Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such review. If the carrying value of a long-lived asset is considered impaired, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset for assets to be held and used. The Company also reviews the useful life of its long-lived assets when events and circumstances indicate that the actual useful life may be shorter than originally estimated. In the event that the actual useful life is deemed to be shorter than the original useful life, depreciation is adjusted prospectively so that the remaining book value is depreciated over the revised useful life. Asset groups classified as held for sale are measured at the lower of carrying amount or fair value less cost to sell, and a loss is recognized for any initial adjustment required to reduce the carrying amount to the fair value less cost to sell in the period the held for sale criteria are met. The fair value less cost to sell must be assessed each reporting period the asset group remains classified as held for sale. Gains or losses not previously recognized resulting from the sale of an asset group will be recognized on the date of sale. Product Warranty and Recall – The Company currently provides a standard two -year limited warranty on all new motorcycles sold worldwide, except for Japan, where the Company provides a standard three -year limited warranty on all new motorcycles sold. In addition, the Company offers a one -year warranty for Parts & Accessories (P&A). The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company accrues for future warranty claims using an estimated cost based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary recall campaigns. The Company accrues for the estimated cost associated with voluntary recalls in the period that management approves and commits to the recall. Changes in the Company’s warranty and recall liability were as follows (in thousands): 2017 2016 2015 Balance, beginning of period $ 79,482 $ 74,217 $ 69,250 Warranties issued during the period 57,834 60,215 59,259 Settlements made during the period (82,554 ) (99,298 ) (96,529 ) Recalls and changes to pre-existing warranty liabilities 39,438 44,348 42,237 Balance, end of period $ 94,200 $ 79,482 $ 74,217 The liability associated with recalls, including the amount recorded in 2017 in connection with the NHTSA matter discussed in Note 14, was $35.3 million , $13.6 million and $10.2 million at December 31, 2017 , 2016 and 2015 , respectively. Derivative Financial Instruments – The Company is exposed to certain risks such as foreign currency exchange rate risk, interest rate risk and commodity price risk. To reduce its exposure to such risks, the Company selectively uses derivative financial instruments. All derivative transactions are authorized and executed pursuant to regularly reviewed policies and procedures, which prohibit the use of financial instruments for speculative trading purposes. All derivative instruments are recognized on the balance sheet at fair value (see Note 6). In accordance with ASC Topic 815, “Derivatives and Hedging,” the accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. Changes in the fair value of derivatives that are designated as fair value hedges, along with the gain or loss on the hedged item, are recorded in current period earnings. For derivative instruments that are designated as cash flow hedges, the effective portion of gains and losses that result from changes in the fair value of derivative instruments is initially recorded in other comprehensive income (OCI) and subsequently reclassified into earnings when the hedged item affects income. The Company assesses, at both the inception of each hedge and on an on-going basis, whether the derivatives that are used in its hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. Any ineffective portion is immediately recognized in earnings. No component of a hedging derivative instrument’s gain or loss is excluded from the assessment of hedge effectiveness. Derivative instruments that do not qualify for hedge accounting are recorded at fair value and any changes in fair value are recorded in current period earnings. Refer to Note 7 for a detailed description of the Company’s derivative instruments. Motorcycles and Related Products Revenue Recognition – Sales are recorded when title and ownership is transferred, which is generally when products are shipped to wholesale customers (independent dealers). The Company may offer sales incentive programs to both wholesale and retail customers designed to promote the sale of motorcycles and related products. The total costs of these programs are generally recognized as revenue reductions and are accrued at the later of the date the related sales are recorded or the date the incentive program is both approved and communicated. Financial Services Revenue Recognition – Interest income on finance receivables is recorded as earned and is based on the average outstanding daily balance for wholesale and retail receivables. Accrued and uncollected interest is classified with finance receivables. Certain loan origination costs related to finance receivables, including payments made to dealers for certain retail loans, are deferred and recorded within finance receivables, and amortized over the estimated life of the contract. Retail finance receivables are contractually delinquent if the minimum payment is not received by the specified due date. Retail finance receivables are generally charged-off when the receivable is 120 days or more delinquent, the related asset is repossessed or the receivable is otherwise deemed uncollectible. All retail finance receivables accrue interest until either collected or charged-off. Accordingly, as of December 31, 2017 and 2016 , all retail finance receivables are accounted for as interest-earning receivables. Wholesale finance receivables are delinquent if the minimum payment is not received by the contractual due date. Wholesale finance receivables are written down once management determines that the specific borrower does not have the ability to repay the loan in full. Interest continues to accrue on past due finance receivables until the date the finance receivable becomes uncollectible and the finance receivable is placed on non-accrual status. The Company will resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. While on non-accrual status, all cash received is applied to principal or interest as appropriate. Insurance and protection product revenue, including revenue from the sale of extended service contracts, is recognized when contractually earned. Deferred revenue related to extended service contracts was $4.7 million and $4.5 million as of December 31, 2017 and 2016 , respectively. Research and Development Expenses – Expenditures for research activities relating to product development and improvement are charged against income as incurred and included within selling, administrative and engineering expenses in the consolidated statement of income. Research and development expenses were $175.2 million , $172.3 million and $161.2 million for 2017 , 2016 and 2015 , respectively. Advertising Costs – The Company expenses the production cost of advertising the first time the advertising takes place. Advertising costs relate to the Company’s efforts to promote its products and brands through the use of media. During 2017 , 2016 and 2015 , the Company incurred $135.5 million , $137.4 million and $119.8 million in advertising costs, respectively. Shipping and Handling Costs – The Company classifies shipping and handling costs as a component of cost of goods sold. Share-Based Award Compensation Costs – The Company recognizes the cost of its share-based awards in its statement of income. The cost of each share-based equity award is based on the grant date fair value and the cost of each share-based cash-settled award is based on the settlement date fair value. Share-based award expense is recognized on a straight-line basis over the service or performance periods of the awards. The expense recognized reflects the number of awards that are ultimately expected to vest based on the service and, if applicable, performance requirements of each award. Total share-based award compensation expense recognized by the Company during 2017 , 2016 and 2015 was $32.5 million , $32.3 million and $29.4 million , respectively, or $20.5 million , $20.4 million and $18.5 million net of taxes, respectively. Income Tax Expense – The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. New Accounting Standards Accounting Standards Recently Adopted In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09 Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). ASU 2016-09 amends the guidance on several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, accounting for forfeitures, and classification on the statement of cash flows. The Company adopted ASU 2016-09 on January 1, 2017. The Company elected to apply the amendments related to the classification of excess tax benefits on the statement of cash flows on a prospective basis, and prior periods were not adjusted. The adoption of ASU 2016-09 did not have a material impact on the Company's consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11 Inventory (Topic 330): Simplifying the Measurement of Inventory (ASU 2015-11). ASU 2015-11 simplifies the subsequent measurement of inventory by using only the lower of cost or net realizable value. ASU 2015-11 does not apply to inventory measured using the last-in, first-out method. The Company adopted ASU 2015-11 on January 1, 2017. The adoption of ASU 2015-11 did not have a material impact on the Company’s consolidated financial statements. Accounting Standards Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09 Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14 Revenue from Contracts with Customers: Deferral of Effective Date (ASU 2015-14) to defer the effective date of the new revenue recognition standard by one year to fiscal years beginning after December 15, 2017 and interim periods therein. The Company will adopt the new revenue recognition guidance on January 1, 2018 using the modified retrospective method by recording the cumulative effect of initially applying the new standard as an increase of approximately $6 million to the opening balance of retained earnings. The on-going application of the new guidance is not expected to have a material impact on the Company's financial statements. In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). ASU 2016-01 enhances the existing financial instruments reporting model by modifying fair value measurement tools, simplifying impairment assessments for certain equity instruments and modifying overall presentation and disclosure requirements. The Company is required to adopt ASU 2016-01 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017 on a prospective basis. The Company does not expect the adoption of ASU 2016-01 to have a material impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) (ASU 2016-02). ASU 2016-02 amends the existing lease accounting model by requiring a lessee to recognize the rights and obligations resulting from certain leases as assets and liabilities on the balance sheet. ASU 2016-02 also requires a company to disclose key information about their leasing arrangements. The Company is required to adopt ASU 2016-02 for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 using a modified retrospective approach. Early adoption is permitted. The Company is currently in the process of gathering and analyzing information necessary to quantify the impact of adopting ASU 2016-02 and evaluating the transition practical expedients it will apply upon adoption. In July 2016, the FASB issued ASU No. 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 changes how to recognize expected credit losses on financial assets. The standard requires a more timely recognition of credit losses on loans and other financial assets and also provides additional transparency about credit risk. The current credit loss standard generally requires that a loss actually be incurred before it is recognized, while the new standard will require recognition of full lifetime expected losses upon initial recognition of the financial instrument. The Company is required to adopt ASU 2016-13 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019 on a modified retrospective basis. Early adoption is permitted for fiscal years beginning after December 15, 2018. An entity should apply the standard by recording a cumulative effect adjustment to retained earnings upon adoption. Adoption of this standard will impact how the Company recognizes credit losses on its financial instruments. The Company is currently evaluating the impact of adoption of ASU 2016-13 but anticipates the adoption of ASU 2016-13 will result in an increase in the annual provision for credit losses and the related allowance for credit losses. In August 2016, the FASB issued ASU No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing diversity in practice regarding how certain cash receipts and cash payments are presented in the statement of cash flows. The standard provides guidance on the classification of the following items: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from the settlement of corporate-owned life insurance policies, (6) distributions received from equity method investments, (7) beneficial interests in securitization transactions, and (8) separately identifiable cash flows. The Company is required to adopt ASU 2016-15 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017 on a retrospective basis. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-15 to have a material impact on its financial statements. In October 2016, the FASB issued ASU No. 2016-16 Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16). ASU 2016-16 states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Two common assets included in the scope of the ASU are intellectual property and property, plant and equipment. The Company is required to adopt ASU 2016-16 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017 using a modified retrospective approach with a cumulative-effect adjustment to retained earnings. The Company does not expect the adoption of ASU 2016-16 to have a material impact on its financial statements. In November 2016, the FASB issued ASU No. 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As such, restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company is required to adopt ASU 2016-18 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017 on a retrospective basis. Early adoption is permitted, including adoption in an interim period. Subsequent to the adoption of ASU 2016-18, the change in restricted cash will be excluded from financing activities and included in the change in total cash which will include restricted cash in addition to cash and cash equivalents. In January 2017, the FASB issued ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the requirement to calculate the implied fair value of goodwill. Rather, the goodwill impairment is calculated by comparing the fair value of a reporting unit to its carrying value, and an impairment loss is recognized for the amount by which the carrying amount exceeds the fair value, limited to the total goodwill allocated to the reporting unit. All reporting units apply the same impairment test under the new standard. The Company is required to adopt ASU 2017-04 for its annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In March 2017, the FASB issued ASU No. 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07). ASU 2017-07 amends ASC 715, Compensation - Retirement Benefits by requiring employers to present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Other components of the net periodic benefit cost will be presented separately from the line item that includes the service cost and outside of any subtotal of operating income. The guidance also limits the components that are eligible for capitalization in assets. The Company is required to adopt ASU 2017-07 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period for which interim or annual financial statements have not been issued or made available for issuance. The amendments related to the presentation of the components of net periodic benefit cost should be applied retrospectively. The amendments related to the capitalization of certain components in assets should be applied prospectively. The Company's net periodic benefit cost components are disclosed in Note 12. In August 2017, the FASB issued ASU No. 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). ASU 2017-12 amends ASC 815, Derivatives and Hedging to improve the financial reporting of hedging relationships and to simplify the application of the hedge accounting guidance. The ASU makes various updates to the hedge accounting model, including changing the recognition and presentation of changes in the fair value of the hedging instrument and amending disclosure requirements, among other things. The Company is require |
Additional Balance Sheet and Ca
Additional Balance Sheet and Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Balance Sheet and Cash Flow Information | Additional Balance Sheet and Cash Flow Information The following information represents additional detail for selected line items included in the consolidated balance sheets at December 31, and the statements of cash flows for the years ended December 31. Balance Sheet Information: Inventories, net (in thousands): 2017 2016 Raw materials and work in process $ 161,664 $ 140,639 Motorcycle finished goods 289,530 285,281 Parts and accessories and general merchandise 139,363 122,264 Inventory at lower of FIFO cost or net realizable value 590,557 548,184 Excess of FIFO over LIFO cost (52,355 ) (48,267 ) Total inventories, net $ 538,202 $ 499,917 Inventory obsolescence reserves deducted from FIFO cost were $38.7 million and $39.9 million as of December 31, 2017 and 2016 , respectively. Property, plant and equipment, at cost (in thousands): 2017 2016 Land and related improvements $ 70,256 $ 65,533 Buildings and related improvements 464,454 464,200 Machinery and equipment 1,890,126 1,887,269 Software 660,090 630,114 Construction in progress 200,396 214,409 3,285,322 3,261,525 Accumulated depreciation (2,317,541 ) (2,279,932 ) Total property, plant and equipment, net $ 967,781 $ 981,593 Accrued liabilities (in thousands): 2017 2016 Payroll, employee benefits and related expenses $ 124,093 $ 148,221 Warranty and recalls 75,089 57,698 Sales incentive programs 48,309 43,218 Tax-related accruals 25,944 26,140 Fair value of derivative financial instruments 21,308 142 Accrued interest 40,347 42,788 Other 194,732 168,445 Total accrued liabilities $ 529,822 $ 486,652 Cash Flow Information: The reconciliation of net income to net cash provided by operating activities of continuing operations is as follows (in thousands): 2017 2016 2015 Cash flows from operating activities: Net income $ 521,759 $ 692,164 $ 752,207 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 222,188 209,555 198,074 Amortization of deferred loan origination costs 82,911 86,681 93,546 Amortization of financing origination fees 8,045 9,252 9,975 Provision for long-term employee benefits 29,900 38,273 60,824 Employee benefit plan contributions and payments (63,277 ) (55,809 ) (28,490 ) Stock compensation expense 32,491 32,336 29,433 Net change in wholesale finance receivables related to sales 35,172 (3,233 ) (113,970 ) Provision for credit losses 132,444 136,617 101,345 Gain on off-balance sheet asset-backed securitization — (9,269 ) — Loss on debt extinguishment — 118 1,099 Deferred income taxes 50,855 (165 ) (16,484 ) Other, net 8,559 (6,907 ) 20,913 Changes in current assets and liabilities: Accounts receivable, net (18,149 ) (45,934 ) (13,665 ) Finance receivables – accrued interest and other (1,313 ) (1,489 ) (3,046 ) Inventories (20,584 ) 85,072 (155,222 ) Accounts payable and accrued liabilities 10,128 38,237 138,823 Derivative instruments 1,866 (3,413 ) (5,615 ) Other (27,934 ) (27,747 ) 30,371 Total adjustments 483,302 482,175 347,911 Net cash provided by operating activities $ 1,005,061 $ 1,174,339 $ 1,100,118 Cash paid during the period for interest and income taxes (in thousands): 2017 2016 2015 Interest $ 204,866 $ 185,804 $ 148,654 Income taxes $ 300,113 $ 356,553 $ 371,547 Interest paid represents interest payments of HDFS (included in financial services interest expense) and interest payments of the Company (included in interest expense). |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On August 4, 2015, the Company completed its purchase of certain assets and liabilities from Fred Deeley Imports, Ltd. (Deeley Imports) including, among other things, the acquisition of the exclusive right to distribute the Company's motorcycles and other products in Canada (Transaction) for total consideration of $59.9 million . The majority equity owner of Deeley Imports, prior to the transaction closing, was also a member of the Board of Directors of the Company. The acquisition of the Canadian distribution rights allowed the Company to align its distribution in Canada with its global go-to-market approach. The financial impact of the acquisition, which was part of the Motorcycles segment, has been included in the Company's consolidated financial statements from the date of acquisition. Proforma information reflecting this acquisition has not been disclosed as the proforma impact on consolidated net income was not material. The following table summarizes the fair values of the Deeley Imports assets acquired and liabilities assumed at the date of acquisition (in thousands): August 4, 2015 Current assets $ 11,088 Property, plant and equipment 144 Intangible assets 20,842 Goodwill 28,567 Total assets 60,641 Current liabilities 731 Net assets acquired $ 59,910 As noted above, in conjunction with the acquisition of certain assets and assumption of certain liabilities of Deeley Imports, the Company recorded goodwill of $28.6 million , all of which the Company believes is tax deductible, and intangible assets with an initial fair value of $20.8 million . Of the total intangible assets acquired, $13.3 million was assigned to reacquired distribution rights with a useful life of two years and $7.5 million was assigned to customer relationships with a useful life of twenty years. The Company agreed to reimburse Deeley Imports for certain severance costs associated with the Transaction resulting in $3.3 million of expense included in selling, administrative and engineering expense in the third quarter of 2015. The Company did not acquire any cash as part of the Transaction. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table summarizes changes in the carrying amount of goodwill in the Motorcycles segment for the following years ended December 31 (in thousands): 2017 2016 2015 Balance, beginning of period $ 53,391 $ 54,182 $ 27,752 Business acquisitions — — 28,567 Currency translation 2,556 (791 ) (2,137 ) Balance, end of period $ 55,947 $ 53,391 $ 54,182 The following table summarizes the Motorcycles segment intangible assets other than goodwill at December 31 (in thousands): 2017 Gross Carrying Amount Accumulated Amortization Net Estimated useful life (years) Intangible assets other than goodwill Reacquired distribution rights $ 13,933 $ (13,933 ) $ — 2 Customer relationships 7,860 (950 ) 6,910 20 Total other intangible assets $ 21,793 $ (14,883 ) $ 6,910 2016 Gross Carrying Amount Accumulated Amortization Net Estimated useful life (years) Intangible assets other than goodwill Reacquired distribution rights $ 12,928 $ (9,157 ) $ 3,771 2 Customer relationships 7,293 (517 ) 6,776 20 Total other intangible assets $ 20,221 $ (9,674 ) $ 10,547 Intangible assets other than goodwill are included in other long-term assets on the Company's consolidated balance sheets. The gross carrying amounts at December 31 differ from the acquisition date amounts due to changes in foreign currency exchange rates. Total amortization expense of other intangible assets was $4.2 million , $7.0 million and $2.8 million for 2017 , 2016 and 2015 , respectively. The Company estimates future amortization to be as follows (in thousands): Estimated Amortization 2018 $ 384 2019 384 2020 384 2021 384 2022 384 Thereafter 4,990 Total $ 6,910 The Financial Services segment had no goodwill or intangible assets at December 31, 2017 and 2016 . |
Finance Receivables
Finance Receivables | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Finance receivables, net at December 31 for the past five years were as follows (in thousands): 2017 2016 2015 2014 2013 Wholesale United States $ 939,621 $ 961,150 $ 965,379 $ 903,380 $ 800,491 Canada 77,336 65,440 58,481 48,941 44,721 Total wholesale 1,016,957 1,026,590 1,023,860 952,321 845,212 Retail United States 5,901,002 5,769,410 5,803,071 5,398,006 5,051,245 Canada 239,598 212,801 188,400 209,918 213,799 Total retail 6,140,600 5,982,211 5,991,471 5,607,924 5,265,044 7,157,557 7,008,801 7,015,331 6,560,245 6,110,256 Allowance for credit losses (192,471 ) (173,343 ) (147,178 ) (127,364 ) (110,693 ) Total finance receivables, net $ 6,965,086 $ 6,835,458 $ 6,868,153 $ 6,432,881 $ 5,999,563 The Company offers wholesale financing to the Company’s independent dealers Wholesale loans to dealers are generally secured by financed inventory or property and are originated in the U.S. and Canada. Wholesale finance receivables are related primarily to motorcycles and related parts and accessories sales. The Company provides retail financial services to customers of the Company’s independent dealers in the U.S. and Canada. The origination of retail loans is a separate and distinct transaction between the Company and the retail customer, unrelated to the Company’s sale of product to its dealers. Retail finance receivables consist of secured promissory notes and secured installment contracts and are primarily related to sales of motorcycles to the dealers’ customers. The Company holds either titles or liens on titles to vehicles financed by promissory notes and installment sales contracts. As of December 31, 2017 and 2016 , approximately 11% of gross outstanding retail finance receivables were originated in Texas; there were no other states that accounted for more than 10% of gross outstanding retail finance receivables. Unused lines of credit extended to the Company's wholesale finance customers totaled $1.27 billion and $1.32 billion at December 31, 2017 and 2016 , respectively. Approved but unfunded retail finance loans totaled $166.3 million and $177.9 million at December 31, 2017 and 2016 , respectively. Wholesale finance receivables are generally contractually due within one year. On December 31, 2017 , contractual maturities of finance receivables were as follows (in thousands): United States Canada Total 2018 $ 2,018,646 $ 126,345 $ 2,144,991 2019 1,160,372 51,764 1,212,136 2020 1,251,444 56,173 1,307,617 2021 1,250,821 60,957 1,311,778 2022 1,144,281 21,695 1,165,976 Thereafter 15,059 — 15,059 Total $ 6,840,623 $ 316,934 $ 7,157,557 The allowance for credit losses on finance receivables is comprised of individual components relating to wholesale and retail finance receivables. Changes in the allowance for credit losses on finance receivables by portfolio for the year ended December 31 were as follows (in thousands): 2017 Retail Wholesale Total Balance, beginning of period $ 166,810 $ 6,533 $ 173,343 Provision for credit losses 132,760 (316 ) 132,444 Charge-offs (160,972 ) — (160,972 ) Recoveries 47,656 — 47,656 Balance, end of period $ 186,254 $ 6,217 $ 192,471 2016 Retail Wholesale Total Balance, beginning of period $ 139,320 $ 7,858 $ 147,178 Provision for credit losses 137,942 (1,325 ) 136,617 Charge-offs (148,566 ) — (148,566 ) Recoveries 41,405 — 41,405 Other (a) (3,291 ) — (3,291 ) Balance, end of period $ 166,810 $ 6,533 $ 173,343 2015 Retail Wholesale Total Balance, beginning of period $ 122,025 $ 5,339 $ 127,364 Provision for credit losses 98,826 2,519 101,345 Charge-offs (123,911 ) — (123,911 ) Recoveries 42,380 — 42,380 Balance, end of period $ 139,320 $ 7,858 $ 147,178 (a) Related to the sale of finance receivables during the second quarter of 2016 with a principal balance of $301.8 million through an off-balance sheet asset-backed securitization transaction (see Note 10 for additional information). There were no finance receivables individually evaluated for impairment on December 31, 2017 or 2016 . The allowance for credit losses and finance receivables by portfolio, collectively evaluated for impairment, at December 31 was as follows (in thousands): 2017 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 186,254 6,217 192,471 Total allowance for credit losses $ 186,254 $ 6,217 $ 192,471 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 6,140,600 1,016,957 7,157,557 Total finance receivables $ 6,140,600 $ 1,016,957 $ 7,157,557 2016 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 166,810 6,533 173,343 Total allowance for credit losses $ 166,810 $ 6,533 $ 173,343 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 5,982,211 1,026,590 7,008,801 Total finance receivables $ 5,982,211 $ 1,026,590 $ 7,008,801 Finance receivables are considered impaired when management determines it is probable that the Company will be unable to collect all amounts due according to the loan agreement. As retail finance receivables are collectively and not individually reviewed for impairment, this portfolio does not have specifically impaired finance receivables. At December 31, 2017 and 2016 , there were no wholesale finance receivables that were on non-accrual status or individually deemed to be impaired under ASC Topic 310, “Receivables.” An analysis of the aging of past due finance receivables at December 31 was as follows (in thousands): 2017 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Total Finance Receivables Retail $ 5,913,473 $ 139,629 $ 47,539 $ 39,959 $ 227,127 $ 6,140,600 Wholesale 1,016,000 595 245 117 957 1,016,957 Total $ 6,929,473 $ 140,224 $ 47,784 $ 40,076 $ 228,084 $ 7,157,557 2016 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Total Finance Receivables Retail $ 5,760,818 $ 131,302 $ 49,642 $ 40,449 $ 221,393 $ 5,982,211 Wholesale 1,024,995 1,000 319 276 1,595 1,026,590 Total $ 6,785,813 $ 132,302 $ 49,961 $ 40,725 $ 222,988 $ 7,008,801 The recorded investment of retail and wholesale finance receivables, excluding non-accrual status finance receivables, that were contractually past due 90 days or more at December 31 for the past five years was as follows (in thousands): 2017 2016 2015 2014 2013 United States $ 39,051 $ 39,399 $ 31,677 $ 27,800 $ 23,770 Canada 1,025 1,326 1,192 1,118 1,031 Total $ 40,076 $ 40,725 $ 32,869 $ 28,918 $ 24,801 A significant part of managing the Company's finance receivable portfolios includes the assessment of credit risk associated with each borrower. As the credit risk varies between the retail and wholesale portfolios, the Company utilizes different credit risk indicators for each portfolio. The Company manages retail credit risk through its credit approval policy and ongoing collection efforts. The Company uses FICO scores, a standard credit rating measurement, to differentiate the expected default rates of retail credit applicants, enabling the Company to better evaluate credit applicants for approval and to tailor pricing according to this assessment. Retail loans with a FICO score of 640 or above at origination are considered prime, and loans with a FICO score below 640 are considered sub-prime. These credit quality indicators are determined at the time of loan origination and are not updated subsequent to the loan origination date. The recorded investment of retail finance receivables, by credit quality indicator, at December 31 was as follows (in thousands): 2017 2016 Prime $ 4,966,193 $ 4,768,420 Sub-prime 1,174,407 1,213,791 Total $ 6,140,600 $ 5,982,211 The Company's credit risk on the wholesale portfolio is different from that of the retail portfolio. Whereas the retail portfolio represents a relatively homogeneous pool of retail finance receivables that exhibit more consistent loss patterns, the wholesale portfolio exposures are less consistent. The Company utilizes an internal credit risk rating system to manage credit risk exposure consistently across wholesale borrowers and evaluates credit risk factors for each borrower. The Company uses the following internal credit quality indicators, based on an internal risk rating system, listed from highest level of risk to lowest level of risk, for the wholesale portfolio: Doubtful, Substandard, Special Mention, Medium Risk and Low Risk. Based upon management’s review, the dealers classified in the Doubtful category are the dealers with the greatest likelihood of being charged-off, while the dealers classified as Low Risk are least likely to be charged-off. The internal rating system considers factors such as the specific borrower's ability to repay and the estimated value of any collateral. Dealer risk rating classifications are reviewed and updated on a quarterly basis. The recorded investment of wholesale finance receivables, by internal credit quality indicator, at December 31 was as follows (in thousands): 2017 2016 Doubtful $ 688 $ 1,333 Substandard 3,837 1,773 Special Mention 26,866 30,152 Medium Risk 9,917 14,620 Low Risk 975,649 978,712 Total $ 1,016,957 $ 1,026,590 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value The Company assesses the inputs used to measure fair value using a three-tier hierarchy. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, foreign currency exchange rates, and commodity prices. The Company uses the market approach to derive the fair value for its level 2 fair value measurements. Forward contracts for foreign currency and commodities are valued using current quoted forward rates and prices; and investments in marketable securities and cash equivalents are valued using publicly quoted prices. Level 3 inputs are not observable in the market and include management's judgments about the assumptions market participants would use in pricing the asset or liability. Recurring Fair Value Measurements The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31 (in thousands): 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 488,432 $ 358,500 $ 129,932 $ — Marketable securities 48,006 48,006 — — Derivatives 1,769 — 1,769 — Total $ 538,207 $ 406,506 $ 131,701 $ — Liabilities: Derivatives $ 21,308 $ — $ 21,308 $ — 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 531,519 $ 426,266 $ 105,253 $ — Marketable securities 43,638 38,119 5,519 — Derivatives 29,034 — 29,034 — Total $ 604,191 $ 464,385 $ 139,806 $ — Liabilities: Derivatives $ 142 $ — $ 142 $ — Nonrecurring Fair Value Measurements Repossessed inventory is recorded at the lower of cost or net realizable value through a nonrecurring fair value measurement. Repossessed inventory was $19.6 million and $19.3 million at December 31, 2017 and 2016 , for which the fair value adjustment was $9.0 million and $9.3 million at December 31, 2017 and 2016 , respectively. Fair value is estimated using Level 2 inputs based on the recent market values of repossessed inventory. Fair Value of Financial Instruments Measured at Cost The carrying value of the Company’s cash and cash equivalents and restricted cash approximates their fair values. The following table summarizes the fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost at December 31 (in thousands): 2017 2016 Fair Value Carrying Value Fair Value Carrying Value Assets: Finance receivables, net $ 7,021,549 $ 6,965,086 $ 6,921,037 $ 6,835,458 Liabilities: Unsecured commercial paper $ 1,273,482 $ 1,273,482 $ 1,055,708 $ 1,055,708 Asset-backed U.S. commercial paper conduit facilities $ 279,457 $ 279,457 $ — $ — Asset-backed Canadian commercial paper conduit facility $ 174,779 $ 174,779 $ 149,338 $ 149,338 Medium-term notes $ 4,189,092 $ 4,165,706 $ 4,139,462 $ 4,064,940 Senior unsecured notes $ 784,433 $ 741,961 $ 744,552 $ 741,306 Asset-backed securitization debt $ 351,767 $ 352,624 $ 797,688 $ 796,275 Finance Receivables, Net – The carrying value of retail and wholesale finance receivables in the financial statements is amortized cost less an allowance for credit losses. The fair value of retail finance receivables is generally calculated by discounting future cash flows using an estimated discount rate that reflects current credit, interest rate and prepayment risks associated with similar types of instruments. Fair value is determined based on Level 3 inputs. The amortized cost basis of wholesale finance receivables approximates fair value because they either are short-term or have interest rates that adjust with changes in market interest rates. Debt – The carrying value of debt in the financial statements is generally amortized cost, net of discounts and debt issuance costs. The carrying value of unsecured commercial paper calculated using Level 2 inputs approximates fair value due to its short maturity. The carrying value of debt provided under the U.S. conduit facilities and Canadian conduit facility calculated using Level 2 inputs approximates fair value since the interest rates charged under the facility are tied directly to market rates and fluctuate as market rates change. The fair values of the medium-term notes and senior unsecured notes are estimated based upon rates currently available for debt with similar terms and remaining maturities (Level 2 inputs). The fair value of the debt related to on-balance sheet asset-backed securitization transactions is estimated based on pricing currently available for transactions with similar terms and maturities (Level 2 inputs). |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company is exposed to certain risks such as foreign currency exchange rate risk, interest rate risk and commodity price risk. To reduce its exposure to such risks, the Company selectively uses derivative financial instruments. All derivative transactions are authorized and executed pursuant to regularly reviewed policies and procedures, which prohibit the use of financial instruments for speculative trading purposes. All derivative instruments are recognized on the balance sheet at fair value. In accordance with ASC Topic 815, "Derivatives and Hedging," the accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. Changes in the fair value of derivatives that are designated as fair value hedges, along with the gain or loss on the hedged item, are recorded in current period earnings. For derivative instruments that are designated as cash flow hedges, the effective portion of gains and losses that result from changes in the fair value of derivative instruments is initially recorded in other comprehensive income (OCI) and subsequently reclassified into earnings when the hedged item affects income. The Company assesses, both at the inception of each hedge and on an on-going basis, whether the derivatives that are used in its hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. Any ineffective portion is immediately recognized in earnings. No component of a hedging derivative instrument’s gain or loss is excluded from the assessment of hedge effectiveness. Derivative instruments that do not qualify for hedge accounting are recorded at fair value and any changes in fair value are recorded in current period earnings. The Company sells its products internationally, and in most markets those sales are made in the foreign country’s local currency. As a result, the Company’s earnings can be affected by fluctuations in the value of the U.S. dollar relative to foreign currency. The Company utilizes foreign currency exchange contracts to mitigate the effects of the Euro, the Australian dollar, the Japanese yen, the Brazilian real, the Canadian dollar and the Mexican peso. The foreign currency exchange contracts are entered into with banks and allow the Company to exchange a specified amount of foreign currency for U.S. dollars at a future date, based on a fixed exchange rate. The Company utilizes commodity contracts to hedge portions of the cost of certain commodities consumed in the Company’s motorcycle production and distribution operations. The Company’s foreign currency exchange contracts and commodity contracts generally have maturities of less than one year. The Company entered into treasury rate lock contracts to fix the interest rate on a portion of the principal related to the issuance of long-term debt. The treasury rate lock contracts have since settled and the loss at settlement was recorded in accumulated other comprehensive loss which is being reclassified into earnings over the life of the debt. The following tables summarize the fair value of the Company’s derivative financial instruments at December 31 (in thousands): 2017 2016 Derivatives Designated As Hedging Instruments Under ASC Topic 815 Notional Value Asset Fair Value (a) Liability Fair Value (b) Notional Value Asset Fair Value (a) Liability Fair Value (b) Foreign currency contracts (c) $ 675,724 $ 1,388 $ 21,239 $ 554,551 $ 28,528 $ 142 Commodities contracts (c) 915 — 69 992 177 — Total $ 676,639 $ 1,388 $ 21,308 $ 555,543 $ 28,705 $ 142 2017 2016 Derivatives Not Designated As Hedging Instruments Under ASC Topic 815 Notional Value Asset Fair Value (a) Liability Fair Value (b) Notional Value Asset Fair Value (a) Liability Fair Value (b) Commodities contracts $ 4,532 $ 381 $ — $ 5,025 $ 329 $ — Total $ 4,532 $ 381 $ — $ 5,025 $ 329 $ — (a) Included in other current assets (b) Included in accrued liabilities (c) Derivative designated as a cash flow hedge The following tables summarize the amount of gains and losses for the following years ended December 31 related to derivative financial instruments designated as cash flow hedges (in thousands): Amount of Gain/(Loss) Recognized in OCI, before tax Cash Flow Hedges 2017 2016 2015 Foreign currency contracts $ (53,964 ) $ 28,099 $ 45,810 Commodities contracts (246 ) 77 (421 ) Treasury rate locks (719 ) — (7,381 ) Total $ (54,929 ) $ 28,176 $ 38,008 Amount of Gain/(Loss) Reclassified from AOCL into Income Cash Flow Hedges 2017 2016 2015 Expected to be Reclassified Over the Next Twelve Months Foreign currency contracts (a) $ (7,202 ) $ 18,253 $ 59,730 $ (20,178 ) Commodities contracts (a) — (258 ) (677 ) (69 ) Treasury rate locks (b) (442 ) (362 ) (151 ) (506 ) Total $ (7,644 ) $ 17,633 $ 58,902 $ (20,753 ) (a) Gain/(loss) reclassified from accumulated other comprehensive loss (AOCL) to income is included in cost of goods sold (b) Gain/(loss) reclassified from AOCL to income is included in interest expense For the years ended December 31, 2017 and 2016 , the cash flow hedges were highly effective and, as a result, the amount of hedge ineffectiveness was not material. No amounts were excluded from effectiveness testing. The following table summarizes the amount of gains and losses for the years ended December 31 related to derivative financial instruments not designated as hedging instruments (in thousands): Amount of Gain/(Loss) Recognized in Income on Derivative Derivatives not Designated as Hedges 2017 2016 2015 Commodities contracts (a) $ 503 $ 167 $ (648 ) Total $ 503 $ 167 $ (648 ) (a) Gain/(loss) recognized in income is included in cost of goods sold |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table sets forth the changes in accumulated other comprehensive loss (AOCL) for the years ended December 31 (in thousands): 2017 Foreign currency translation adjustments Marketable securities Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (68,132 ) $ (1,194 ) $ 12,524 $ (508,579 ) $ (565,381 ) Other comprehensive income (loss) before reclassifications 52,145 1,896 (54,929 ) 24,321 23,433 Income tax (5,865 ) (702 ) 20,338 (5,711 ) 8,060 Net other comprehensive income (loss) before reclassifications 46,280 1,194 (34,591 ) 18,610 31,493 Reclassifications: Realized (gains) losses - foreign currency contracts (a) — — 7,202 — 7,202 Realized (gains) losses - treasury rate locks (b) — — 442 — 442 Prior service credits (c) — — — (1,153 ) (1,153 ) Actuarial losses (c) — — — 47,254 47,254 Total before tax — — 7,644 46,101 53,745 Income tax benefit — — (2,831 ) (17,075 ) (19,906 ) Net reclassifications — — 4,813 29,026 33,839 Other comprehensive income (loss) 46,280 1,194 (29,778 ) 47,636 65,332 Balance, end of period $ (21,852 ) $ — $ (17,254 ) $ (460,943 ) $ (500,049 ) 2016 Foreign currency translation adjustments Marketable securities Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (58,844 ) $ (1,094 ) $ 5,886 $ (561,153 ) $ (615,205 ) Other comprehensive (loss) income before reclassifications (7,591 ) (159 ) 28,176 33,937 54,363 Income tax (1,697 ) 59 (10,436 ) (12,570 ) (24,644 ) Net other comprehensive (loss) income before reclassifications (9,288 ) (100 ) 17,740 21,367 29,719 Reclassifications: Realized (gains) losses - foreign currency contracts (a) — — (18,253 ) — (18,253 ) Realized (gains) losses - commodities contracts (a) — — 258 — 258 Realized (gains) losses - treasury rate lock (b) — — 362 — 362 Prior service credits (c) — — — (1,784 ) (1,784 ) Actuarial losses (c) — — — 49,888 49,888 Curtailment and settlement losses (c) — — — 1,463 1,463 Total before tax — — (17,633 ) 49,567 31,934 Income tax expense (benefit) — — 6,531 (18,360 ) (11,829 ) Net reclassifications — — (11,102 ) 31,207 20,105 Other comprehensive (loss) income (9,288 ) (100 ) 6,638 52,574 49,824 Balance, end of period $ (68,132 ) $ (1,194 ) $ 12,524 $ (508,579 ) $ (565,381 ) 2015 Foreign currency translation adjustments Marketable securities Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (3,482 ) $ (700 ) $ 19,042 $ (529,803 ) $ (514,943 ) Other comprehensive (loss) income before reclassifications (48,309 ) (626 ) 38,008 (106,059 ) (116,986 ) Income tax (7,053 ) 232 (14,079 ) 39,284 18,384 Net other comprehensive (loss) income before reclassifications (55,362 ) (394 ) 23,929 (66,775 ) (98,602 ) Reclassifications: Realized (gains) losses - foreign currency contracts (a) — — (59,730 ) — (59,730 ) Realized (gains) losses - commodities contracts (a) — — 677 — 677 Realized (gains) losses - treasury rate lock (b) — — 151 — 151 Prior service credits (c) — — — (2,782 ) (2,782 ) Actuarial losses (c) — — — 58,680 58,680 Curtailment and settlement losses (c) — — — 368 368 Total before tax — — (58,902 ) 56,266 (2,636 ) Income tax expense (benefit) — — 21,817 (20,841 ) 976 Net reclassifications — — (37,085 ) 35,425 (1,660 ) Other comprehensive loss (55,362 ) (394 ) (13,156 ) (31,350 ) (100,262 ) Balance, end of period $ (58,844 ) $ (1,094 ) $ 5,886 $ (561,153 ) $ (615,205 ) (a) Amounts reclassified to net income are included in Motorcycles and Related Products cost of goods sold. (b) Amounts reclassified to net income are presented in interest expense. (c) Amounts reclassified are included in the computation of net periodic benefit cost. See Note 12 for information related to pension and postretirement benefit plans. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt with a contractual term less than one year is generally classified as short-term debt and consisted of the following as of December 31 (in thousands): 2017 2016 Unsecured commercial paper $ 1,273,482 $ 1,055,708 Total short-term debt $ 1,273,482 $ 1,055,708 Debt with a contractual term greater than one year is generally classified as long-term debt and consisted of the following as of December 31 (in thousands): 2017 2016 Secured debt (Note 10) Asset-backed Canadian commercial paper conduit facility $ 174,779 $ 149,338 Asset-backed U.S. commercial paper conduit facilities 279,457 — Asset-backed securitization debt 353,085 797,755 Less: unamortized discount and debt issuance costs (461 ) (1,480 ) Total secured debt 806,860 945,613 Unsecured notes (at par value) 2.70% Medium-term notes due in 2017, issued January 2012 — 400,000 1.55% Medium-term notes due in 2017, issued November 2014 — 400,000 6.80% Medium-term notes due in 2018, issued May 2008 877,488 877,488 2.25% Medium-term notes due in 2019, issued January 2016 600,000 600,000 Floating-rate Medium-term notes due in 2019, issued March 2017 (a) 150,000 — 2.40% Medium-term notes due in 2019, issued September 2014 600,000 600,000 2.15% Medium-term notes due in 2020, issued February 2015 600,000 600,000 2.40% Medium-term notes due in 2020, issued March 2017 350,000 — 2.85% Medium-term notes due in 2021, issued January 2016 600,000 600,000 2.55% Medium-term notes due in 2022, issued June 2017 400,000 — 3.50% Senior unsecured notes due in 2025, issued July 2015 450,000 450,000 4.625% Senior unsecured notes due in 2045, issued July 2015 300,000 300,000 Less: unamortized discount and debt issuance costs (19,821 ) (21,242 ) Gross long-term debt 5,714,527 5,751,859 Less: current portion of long-term debt, net of unamortized discount and issuance costs (1,127,269 ) (1,084,884 ) Total long-term debt $ 4,587,258 $ 4,666,975 (a) Floating interest rate based on LIBOR plus 35 bps. A summary of the Company’s expected principal payments for debt obligations as of December 31, 2017 is as follows (in thousands): 2018 $ 2,405,569 2019 1,594,518 2020 1,098,489 2021 721,705 2022 438,010 Thereafter 750,000 Total $ 7,008,291 Commercial paper maturities may range up to 365 days from the issuance date. The weighted-average interest rate of outstanding commercial paper balances was 1.48% and 0.93% at December 31, 2017 and 2016 , respectively. In May 2017, the Company entered into a $100.0 million 364 -day credit facility which matures in April 2018. The Company also has a $675.0 million five -year credit facility which matures in April 2019 and a $765.0 million five -year credit facility which matures in April 2021. The new 364 -day credit facility and the five-year credit facilities (together, the Global Credit Facilities) bear interest at variable interest rates, which may be adjusted upward or downward depending on certain criteria, such as credit ratings. The Global Credit Facilities also require the Company to pay a fee based on the average daily unused portion of the aggregate commitments under the Global Credit Facilities. The Global Credit Facilities are committed facilities and primarily used to support the Company's unsecured commercial paper program. Additionally, during the second quarter of 2017, the Company renewed its $25.0 million credit facility which expired in May 2017. The $25.0 million credit facility bears interest at variable interest rates, and the Company must pay a fee based on the unused portion of the $25.0 million commitment. The credit facility expires in May 2018. All of the Company's unsecured notes provide for semi-annual interest payments and principal due at maturity. During 2017, the Company did not repurchase any of its medium-term notes. During 2016 and 2015 , the Company repurchased an aggregate of $1.2 million and $9.3 million , respectively, of its 6.80% medium-term notes which mature in June 2018 . As a result, the Company recognized in financial services interest expense $0.1 million and $1.1 million of loss on extinguishment of debt, respectively, which included unamortized discounts and fees. During March and November 2017 , $400.0 million of 2.70% and $400.0 million of 1.55% medium-term notes matured, respectively, and the principal and accrued interest were paid in full. HDFS and the Company are subject to various operating and financial covenants related to the credit facilities and various operating covenants under the Notes and the U.S. and Canadian asset-backed commercial paper conduit facilities. The more significant covenants are described below. The operating covenants limit the Company’s and HDFS’ ability to: • Assume or incur certain liens; • Participate in certain mergers or consolidations; and • Purchase or hold margin stock. Under the current financial covenants of the Global Credit Facilities, the consolidated debt to equity ratio of HDFS cannot exceed 10.00 to 1.00 as of the end of any fiscal quarter. In addition, the ratio of the Company's consolidated debt to the Company's consolidated debt and equity, in each case excluding the debt of HDFS and its subsidiaries, cannot exceed 0.70 to 1.00 as of the end of any fiscal quarter. No financial covenants are required under the Notes or the U.S. or Canadian asset-backed commercial paper conduit facilities. At December 31, 2017 and 2016 , HDFS and the Company remained in compliance with all of these covenants. |
Asset-Backed Financing
Asset-Backed Financing | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Asset-Backed Financing | Asset-Backed Financing The Company participates in asset-backed financing both through asset-backed securitization transactions and through asset-backed commercial paper conduit facilities. See Note 1 for more information on the Company's accounting for asset-backed financings and VIEs. The following table shows the assets and liabilities related to the on-balance sheet asset-backed financings included in the financial statements at December 31 (in thousands): 2017 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 $ 439,301 $ (13,686 ) $ 34,919 $ 1,260 $ 461,794 $ 352,624 Asset-backed U.S. commercial paper conduit facilities 300,530 (9,392 ) 13,787 888 305,813 279,457 Unconsolidated VIEs Asset-backed Canadian commercial paper conduit facility 203,691 (3,746 ) 9,983 470 210,398 174,779 Total on-balance sheet assets and liabilities $ 943,522 $ (26,824 ) $ 58,689 $ 2,618 $ 978,005 $ 806,860 2016 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 $ 893,804 $ (25,468 ) $ 57,057 $ 2,452 $ 927,845 $ 796,275 Asset-backed U.S. commercial paper conduit facilities — — — 329 329 — Unconsolidated VIEs Asset-backed Canadian commercial paper conduit facility 165,719 (3,573 ) 10,090 426 172,662 149,338 Total on-balance sheet assets and liabilities $ 1,059,523 $ (29,041 ) $ 67,147 $ 3,207 $ 1,100,836 $ 945,613 On-Balance Sheet Asset-Backed Securitization VIEs The Company transfers U.S. retail motorcycle finance receivables to SPEs which in turn issue secured notes to investors, with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance receivables. Each on-balance sheet asset-backed securitization SPE is a separate legal entity and the U.S. retail motorcycle finance receivables included in the asset-backed securitizations are only available for payment of the secured debt and other obligations arising from the asset-backed securitization transactions and are not available to pay other obligations or claims of the Company’s creditors until the associated secured debt and other obligations are satisfied. Restricted cash balances held by the SPEs are used only to support the securitizations. There are no amortization schedules for the secured notes; however, the debt is reduced monthly as available collections on the related U.S. retail motorcycle finance receivables are applied to outstanding principal. The secured notes’ contractual lives have various maturities ranging from 2019 to 2022. The Company is the primary beneficiary of its on-balance sheet asset-backed securitization VIEs because it retains servicing rights and a residual interest in the VIEs in the form of a debt security. As the servicer, the Company is the variable interest holder with the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. As a residual interest holder, the Company has the obligation to absorb losses and the right to receive benefits which could potentially be significant to the VIE. There were no on-balance sheet asset-backed securitization transactions during 2017 or 2016. At December 31, 2017 , the Company's consolidated balance sheet included outstanding balances related to the following secured notes with the related maturity dates and interest rates (in thousands): Issue Date Principal Amount at Date of Issuance Weighted-Average Rate at Date of Issuance Contractual Maturity Date May 2015 $500,000 0.88% May 2016 - December 2022 January 2015 $700,000 0.89% February 2016 - August 2022 April 2014 $850,000 0.66% April 2015 - October 2021 In addition, outstanding balances related to the following secured notes included in the Company's consolidated balance sheet at December 31, 2016 were repaid during 2017 (in thousands): Issue Date Principal Amount at Date of Issuance Weighted-Average Rate at Date of Issuance Contractual Maturity Date April 2013 $650,000 0.57% May 2014 - December 2020 For the years ended December 31, 2017 and 2016 , interest expense on the secured notes was $7.9 million and $13.1 million , respectively, which is included in financial services interest expense. The weighted average interest rate of the outstanding on-balance sheet asset-backed securitization transactions was 1.53% and 1.31% at December 31, 2017 and 2016 , respectively. On-Balance Sheet Asset-Backed U.S. Commercial Paper Conduit Facilities VIE On December 13, 2017 , the Company renewed its existing $300.0 million and $600.0 million revolving facility agreements with a third party bank-sponsored asset-backed U.S. commercial paper conduit. Availability under the revolving facilities (together, the U.S. Conduit Facilities) is based on, among other things, the amount of eligible U.S. retail motorcycle finance receivables held by the SPE as collateral. Under the U.S. Conduit Facilities, the Company may transfer U.S. retail motorcycle finance receivables to an SPE, which in turn may issue debt to the third party bank-sponsored asset-backed commercial paper conduit. The assets of the SPE are restricted as collateral for the payment of the debt or other obligations arising in the transaction and are not available to pay other obligations or claims of the Company’s creditors. The terms for this debt provide for interest on the outstanding principal based on prevailing commercial paper rates or LIBOR to the extent the advance is not funded by a conduit lender through the issuance of commercial paper plus, in each case, a program fee based on outstanding principal. The U.S. Conduit Facilities also provide for an unused commitment fee based on the unused portion of the total aggregate commitment of $900.0 million . There is no amortization schedule; however, the debt will be reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the U.S. Conduit Facilities, any outstanding principal will continue to be reduced monthly through available collections. Unless earlier terminated or extended by mutual agreement of the Company and the lenders, the U.S. Conduit Facilities have an expiration date of December 12, 2018 . The Company is the primary beneficiary of its U.S. Conduit Facilities VIE because it retains servicing rights and a residual interest in the VIE in the form of a debt security. As the servicer, the Company is the variable interest holder with the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. As a residual interest holder, the Company has the obligation to absorb losses and the right to receive benefits which could potentially be significant to the VIE. During 2017, the Company transferred $429.7 million of U.S. retail motorcycle finance receivables to an SPE which, in turn, issued $383.3 million of debt under the U.S. Conduit Facilities. The VIE did not borrow under the U.S. Conduit Facilities during 2016 and did not have an outstanding balance at December 31, 2016 . The contractual maturity of the debt is approximately 5 years. For the year ended December 31, 2017 , the Company recorded interest expense of $7.1 million under the U.S. Conduit Facilities. The weighted average interest rate of the outstanding U.S. Conduit Facilities was 2.33% at December 31, 2017 . For the year ended December 31, 2016 , interest expense was $1.3 million related to the unused portion of the total aggregate commitment. Interest expense on the U.S. Conduit Facilities is included in financial services interest expense. On-Balance Sheet Asset-Backed Canadian Commercial Paper Conduit Facility In June 2017, the Company amended its facility agreement (Canadian Conduit) with a Canadian bank-sponsored asset-backed commercial paper conduit. Under the agreement, the Canadian Conduit is contractually committed, at the Company's option, to purchase eligible Canadian retail motorcycle finance receivables for proceeds up to C$220.0 million . The transferred assets are restricted as collateral for the payment of debt. The terms for this debt provide for interest on the outstanding principal based on prevailing market interest rates plus a specified margin. The Canadian Conduit also provides for a program fee and an unused commitment fee based on the unused portion of the total aggregate commitment of C$220.0 million . There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the Canadian Conduit, any outstanding principal will continue to be reduced monthly through available collections. The contractual maturity of the debt is approximately 5 years. Unless earlier terminated or extended by mutual agreement of the Company and the lenders, the Canadian Conduit expires on June 30, 2018 . During 2017 and 2016, the Company transferred $105.4 million and $71.1 million , respectively, of Canadian retail motorcycle finance receivables to the Canadian Conduit for proceeds of $87.0 million and $62.4 million , respectively. For the years ended December 31, 2017 and 2016 , the Company recorded interest expense of $2.6 million and $2.7 million , respectively, on the secured notes. Interest expense on the Canadian Conduit is included in financial services interest expense. The weighted average interest rate of the outstanding Canadian Conduit was 1.96% and 1.84% at December 31, 2017 and 2016 . The Company is not the primary beneficiary of the Canadian bank-sponsored, multi-seller conduit VIE; therefore, the Company doesn’t consolidate the VIE. However, the Company treats the conduit facility as a secured borrowing as it maintains effective control over the assets transferred to the VIE and therefore doesn’t meet the requirements for sale accounting. As the Company participates in and does not consolidate the Canadian bank-sponsored, multi-seller conduit VIE, the maximum exposure to loss associated with this VIE, which would only be incurred in the unlikely event that all the finance receivables and underlying collateral have no residual value, is $35.6 million at December 31, 2017 . The maximum exposure is not an indication of the Company's expected loss exposure. Off-Balance Sheet Asset-Backed Securitization VIE There were no off-balance sheet asset-backed securitization transactions during the year ended December 31, 2017 . During the second quarter of 2016, the Company sold retail motorcycle finance receivables with a principal balance of $301.8 million into a securitization VIE that was not consolidated, recognized a gain of $9.3 million and received cash proceeds of $312.6 million . Similar to an on-balance sheet asset-backed securitization, the Company transferred U.S. retail motorcycle finance receivables to an SPE which in turn issued secured notes to investors, with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance receivables. The off-balance sheet asset-backed securitization SPE is a separate legal entity, and the U.S. retail motorcycle finance receivables included in the term asset-backed securitization are only available for payment of the secured debt and other obligations arising from the asset-backed securitization transaction and are not available to pay other obligations or claims of the Company’s creditors. In an on-balance sheet asset-backed securitization, the Company retains a financial interest in the VIE in the form of a debt security. As part of this off-balance sheet securitization, the Company did not retain any financial interest in the VIE beyond servicing rights and ordinary representations and warranties and related covenants. The Company is not the primary beneficiary of the off-balance sheet asset-backed securitization VIE because it only retained servicing rights and does not have the obligation to absorb losses or the right to receive benefits from the VIE which could potentially be significant to the VIE. Accordingly, this transaction met the accounting sale requirements under ASC Topic 860 and was recorded as a sale for accounting purposes. Upon the sale, the retail motorcycle finance receivables were removed from the Company’s balance sheet and a gain was recognized for the difference between the cash proceeds received, the assets derecognized and the liabilities recognized as part of the transaction. The gain on sale was included in financial services revenue in the Consolidated Statement of Income. At December 31, 2017 , the assets of this off-balance sheet asset-backed securitization VIE were $146.4 million and represented the current unpaid principal balance of the retail motorcycle finance receivables, which was the Company’s maximum exposure to loss in the off-balance sheet VIE at December 31, 2017 . This is based on the unlikely event that all the receivables have underwriting defects or other defects that trigger a violation of certain covenants and that the underlying collateral has no residual value. This maximum exposure is not an indication of expected losses. Servicing Activities The Company services all retail motorcycle finance receivables that it originates. When the Company transfers retail motorcycle finance receivables to SPEs through asset-backed financings, the Company retains the right to service the finance receivables and receives servicing fees based on the securitized finance receivables balance and certain ancillary fees. In on-balance sheet asset-backed financing, servicing fees are eliminated in consolidation and therefore are not recorded on a consolidated basis. In off-balance sheet asset-backed financings, servicing fees and ancillary fees are recorded in Financial Services revenue in the Consolidated Statement of Income. The fees the Company is paid for servicing represent adequate compensation, and, consequently, the Company does not recognize a servicing asset or liability. The Company recognized servicing fee income of $1.9 million and $1.6 million for the years ended December 31, 2017 and December 31, 2016 , respectively. The unpaid principal balance of serviced retail motorcycle finance receivables at December 31 was as follows (in thousands): 2017 2016 On-balance sheet retail motorcycle finance receivables $ 5,993,185 $ 5,839,467 Off-balance sheet retail motorcycle finance receivables 146,425 236,706 Total serviced retail motorcycle finance receivables $ 6,139,610 $ 6,076,173 The balance of serviced finance receivables 30 days or more delinquent at December 31 was as follows (in thousands): Amount 30 days or more past due: 2017 2016 On-balance sheet retail motorcycle finance receivables $ 227,127 $ 221,393 Off-balance sheet retail motorcycle finance receivables 2,106 1,858 Total serviced retail motorcycle finance receivables $ 229,233 $ 223,251 Credit losses, net of recoveries for the serviced finance receivables for the years ended December 31 were as follows (in thousands): 2017 2016 On-balance sheet retail motorcycle finance receivables $ 113,316 $ 107,161 Off-balance sheet retail motorcycle finance receivables 1,191 820 Total serviced retail motorcycle finance receivables $ 114,507 $ 107,981 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, "H.R.1", also known as the "Tax Cuts and Jobs Act" (2017 Tax Act) was signed into law. The 2017 Tax Act resulted in an income tax charge of $53.1 million , all of which the Company regards as provisional. Given the complexity and timing of the 2017 Tax Act, the Company has recorded the impact of the 2017 Tax Act based on reasonable estimates and considers these estimates to be provisional under SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118). The Company was impacted by the following aspects of the 2017 Tax Act: the remeasurement of net deferred tax assets resulting from the federal income tax rate change from 35% to 21%, a one-time transition tax related to the inclusion of deferred foreign earnings in U.S. taxable income, the write-off of foreign tax credit deferred tax assets related to withholding tax on foreign dividend payments, state tax estimates related to the conformity of federal tax law changes (notably the transition tax and 100% expensing of certain qualified property acquired and placed in service after September 27, 2017), and other smaller items. The 2017 Tax Act requires companies to include in taxable income the earnings of certain foreign subsidiaries that were previously deferred for U.S. tax purposes. This inclusion results in a one-time transition tax and creates new deferred tax liabilities related to foreign earnings. The Company has made a reasonable estimate of the effects of this foreign inclusion in its 2017 U.S. taxable income and to its deferred tax balances based on the Company’s interpretation of the computations and intent of Congress as defined in the 2017 Tax Act. The one-time transition tax which is based on the Company’s accumulated post-1986 deferred foreign earnings did not have a significant impact on income tax expense. Uncertainty concerning the transition tax exists due to the lack of guidance within the 2017 Tax Act regarding certain highly technical aspects of the current year tax calculation as well as the deferred tax impacts. It is expected that future guidance will be issued that will enable the Company to refine these calculations. U.S. federal taxable income is the base starting point for determining most state jurisdictions’ taxable income. Each of the 50 states is free to individually adopt a potentially different level of conformity to federal tax law each time it changes. This variability creates significant uncertainty for state income tax purposes, especially with regard to states that do not have “rolling conformity” to follow enacted federal tax law. It is expected that each state will provide guidance related to their conformity to the Act in the future that will enable the Company to refine the state tax current year and deferred tax impacts. Finally, the Company believes future guidance, interpretations and pronouncements will add clarity to the numerous aspects of the 2017 Tax Act that may impact the Company. Future clarifications may give rise to additional unanticipated impacts on the Company’s tax liabilities or effective tax rate and revisions to the Company’s provisional estimates related to the impacts of the 2017 Tax Act on the Company’s income tax provision. Provision for income taxes for the years ended December 31 consists of the following (in thousands): 2017 2016 2015 Current: Federal $ 245,189 $ 284,489 $ 363,803 State 24,898 28,406 37,811 Foreign 21,138 19,017 12,826 291,225 331,912 414,440 Deferred: Federal 47,046 (4,250 ) (15,474 ) State 2,688 7,038 (2,264 ) Foreign 1,121 (2,953 ) 1,254 50,855 (165 ) (16,484 ) Total $ 342,080 $ 331,747 $ 397,956 The components of income before income taxes for the years ended December 31 were as follows (in thousands): 2017 2016 2015 Domestic $ 788,878 $ 954,138 $ 1,101,427 Foreign 74,961 69,773 48,736 Total $ 863,839 $ 1,023,911 $ 1,150,163 The provision for income taxes differs from the amount that would be provided by applying the statutory U.S. corporate income tax rate due to the following items for the years ended December 31: 2017 2016 2015 Provision at statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 1.9 1.8 1.8 Foreign rate differential (0.8 ) (0.6 ) (0.4 ) Domestic manufacturing deduction (2.2 ) (2.1 ) (2.1 ) Research and development credit (0.7 ) (0.4 ) (0.4 ) Unrecognized tax benefits including interest and penalties 2.3 (1.3 ) 1.1 Valuation allowance adjustments (0.1 ) 0.1 (0.1 ) Deferred remeasurement for rate change 5.5 — — Tax reform territorial tax (0.1 ) — — Adjustments for previously accrued taxes (1.2 ) 0.2 (0.1 ) Other — (0.3 ) (0.2 ) Provision for income taxes 39.6 % 32.4 % 34.6 % The principal components of the Company’s deferred tax assets and liabilities as of December 31 include the following (in thousands): 2017 2016 Deferred tax assets: Accruals not yet tax deductible $ 92,158 $ 141,961 Pension and postretirement benefit plan obligations 37,357 88,741 Stock compensation 12,669 19,051 Net operating loss carryforward 33,171 33,587 Valuation allowance (21,561 ) (30,953 ) Other, net 52,422 56,903 206,216 309,290 Deferred tax liabilities: Depreciation, tax in excess of book (88,989 ) (139,268 ) Other (8,154 ) (2,293 ) (97,143 ) (141,561 ) Total $ 109,073 $ 167,729 The Company reviews its deferred tax asset valuation allowances on a quarterly basis, or whenever events or changes in circumstances indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with any positive or negative evidence including tax law changes. Since future financial results and tax law may differ from previous estimates, periodic adjustments to the Company’s valuation allowances may be necessary. At December 31, 2017 , the Company had approximately $291.1 million gross state operating loss carryforwards expiring in 2031 . At December 31, 2017 the Company also had Wisconsin research and development credit carryforwards of $11.3 million expiring in 2028 . The Company had a deferred tax asset of $27.1 million as of December 31, 2017 for the benefit of these losses and credits. A valuation allowance of $4.5 million has been established against the deferred tax asset, which is a decrease of $0.1 million from the prior year. The Company has foreign net operating losses (NOL) totaling $6.1 million as of December 31, 2017 . It has a valuation allowance of $17.1 million against both the NOLs and other deferred tax assets of $11.0 million . The valuation allowance on foreign net operating losses decreased by $9.2 million , reflecting movement related to realizability assessment on additional earnings and loss, as well as movements related to foreign currency rates. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands): 2017 2016 Unrecognized tax benefits, beginning of period $ 55,539 $ 73,100 Increase in unrecognized tax benefits for tax positions taken in a prior period 9,513 2,828 Decrease in unrecognized tax benefits for tax positions taken in a prior period (3,749 ) (21,061 ) Increase in unrecognized tax benefits for tax positions taken in the current period 13,779 7,402 Statute lapses — (1,907 ) Settlements with taxing authorities (2,852 ) (4,823 ) Unrecognized tax benefits, end of period $ 72,230 $ 55,539 The amount of unrecognized tax benefits as of December 31, 2017 that, if recognized, would affect the effective tax rate was $63.1 million . The total gross amount of expense related to interest and penalties associated with unrecognized tax benefits recognized during 2017 in the Company’s Consolidated Statements of Income was $2.8 million . The total gross amount of interest and penalties associated with unrecognized tax benefits recognized at December 31, 2017 in the Company’s Consolidated Balance Sheets was $30.9 million . The Company does not expect a significant increase or decrease to the total amounts of unrecognized tax benefits related to continuing operations during the fiscal year ending December 31, 2018. However, the Company is under regular audit by tax authorities. The Company believes that it has appropriate support for the positions taken on its tax returns and that its annual tax provision includes amounts sufficient to pay any assessments. Nonetheless, the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year. The Company or one of its subsidiaries files income tax returns in the U.S. federal and Wisconsin state jurisdictions and various other state and foreign jurisdictions. The Company is no longer subject to income tax examinations for Wisconsin state income taxes before 2013 or for U.S. federal income taxes before 2014. |
Employee Benefit Plans and Othe
Employee Benefit Plans and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans and Other Postretirement Benefits | Employee Benefit Plans and Other Postretirement Benefits The Company has a qualified defined benefit pension plan and several postretirement healthcare benefit plans, which cover employees of the Motorcycles segment. The Company also has unfunded supplemental employee retirement plan agreements (SERPA) with certain employees which were instituted to replace benefits lost under the Tax Revenue Reconciliation Act of 1993. Pension benefits are based primarily on years of service and, for certain plans, levels of compensation. Employees are eligible to receive postretirement healthcare benefits upon attaining age 55 after rendering at least 10 years of service to the Company. Some of the plans require employee contributions to partially offset benefit costs. Obligations and Funded Status: The following table provides the changes in the benefit obligations, fair value of plan assets and funded status of the Company’s pension, SERPA and postretirement healthcare plans as of the Company’s December 31, 2017 and 2016 measurement dates (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation, beginning of period $ 1,986,435 $ 2,009,000 $ 346,431 $ 354,739 Service cost 31,584 33,437 7,500 7,478 Interest cost 85,076 90,827 13,648 14,814 Actuarial losses (gains) 195,444 13,481 (8,408 ) (4,647 ) Plan participant contributions — — 2,525 2,669 Plan amendments (13,227 ) — — — Benefits paid (84,291 ) (160,310 ) (23,208 ) (28,622 ) Benefit obligation, end of period 2,201,021 1,986,435 338,488 346,431 Change in plan assets: Fair value of plan assets, beginning of period 1,899,889 1,841,967 170,092 156,765 Actual return on plan assets 320,144 188,376 32,445 13,327 Company contributions 25,000 25,000 15,000 — Plan participant contributions — — 2,525 2,669 Benefits paid (82,148 ) (155,454 ) (2,525 ) (2,669 ) Fair value of plan assets, end of period 2,162,885 1,899,889 217,537 170,092 Funded status of the plans, December 31 $ (38,136 ) $ (86,546 ) $ (120,951 ) $ (176,339 ) Amounts recognized in the Consolidated Balance Sheets, December 31: Prepaid benefit costs (long-term assets) $ 19,816 $ — $ — $ — Accrued benefit liability (current liabilities) (3,346 ) (2,104 ) (2,198 ) (3,072 ) Accrued benefit liability (long-term liabilities) (54,606 ) (84,442 ) (118,753 ) (173,267 ) Net amount recognized $ (38,136 ) $ (86,546 ) $ (120,951 ) $ (176,339 ) The funded status of the qualified pension plan and the SERPA plans are combined above. Plan level information for plans with projected benefit obligations (PBO) or accumulated benefit obligations (ABO) in excess of the fair value of plan assets at December 31 is presented below (in millions): 2017 2016 Plans with PBOs in excess of fair value of plan assets: PBO $ 58.0 $ 1,986.4 Fair value of plan assets $ — $ 1,899.9 Plans with ABOs in excess of fair value of plan assets: PBO $ 58.0 $ 52.3 ABO $ 42.1 $ 38.4 Fair value of plan assets $ — $ — The total ABO for all the Company's pension and SERPA plans combined was $2.10 billion and $1.90 billion as of December 31, 2017 and 2016 , respectively. Benefit Costs: Components of net periodic benefit costs for the years ended December 31 (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits 2017 2016 2015 2017 2016 2015 Service cost $ 31,584 $ 33,437 $ 40,039 $ 7,500 $ 7,478 $ 8,259 Interest cost 85,076 90,827 87,345 13,648 14,814 14,166 Special early retirement benefits — — 10,563 — — 622 Expected return on plan assets (141,385 ) (145,781 ) (144,929 ) (12,623 ) (12,069 ) (11,506 ) Amortization of unrecognized: Prior service cost (credit) 1,018 1,019 435 (2,171 ) (2,803 ) (3,217 ) Net loss 43,993 46,351 54,709 3,261 3,537 3,971 Settlement loss — 1,463 368 — — — Net periodic benefit cost $ 20,286 $ 27,316 $ 48,530 $ 9,615 $ 10,957 $ 12,295 Net periodic benefit costs are allocated among selling, administrative and engineering expense, cost of goods sold and inventory. The expected return on plan assets is calculated based on the market-related value of plan assets. The market-related value of plan assets is different from the fair value in that asset gains/losses are smoothed over a five year period. U nrecognized gains and losses related to plan obligations and assets are initially recorded in other comprehensive income and result from actual experience that differs from assumed or expected results, and the impacts of changes in assumptions. Unrecognized plan asset gains and losses not yet reflected in the market-related value of plan assets are not subject to amortization. Remaining unrecognized gains and losses that exceed 10% of the greater of the projected benefit obligation or the market-related value of plan assets are amortized to earnings over the estimated future service period of active plan participants. The impacts of plan amendments, if any, are amortized over the estimated future service period of plan participants at the time of the amendment. Amounts included in accumulated other comprehensive loss, net of tax, at December 31, 2017 which have not yet been recognized in net periodic benefit cost are as follows (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits Total Prior service credit $ (4,136 ) $ (5,871 ) $ (10,007 ) Net actuarial loss 450,754 20,196 470,950 Total $ 446,618 $ 14,325 $ 460,943 Amounts expected to be recognized in net periodic benefit cost, net of tax, during the year ended December 31, 2018 are as follows (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits Total Prior service credit $ (329 ) $ (1,409 ) $ (1,738 ) Net actuarial loss 45,364 1,391 46,755 Total $ 45,035 $ (18 ) $ 45,017 Assumptions: Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost at December 31 were as follows: Pension and SERPA Benefits Postretirement Healthcare Benefits 2017 2016 2015 2017 2016 2015 Assumptions for benefit obligations: Discount rate 3.71 % 4.30 % 4.53 % 3.52 % 4.03 % 4.29 % Rate of compensation 3.43 % 3.50 % 3.50 % n/a n/a n/a Assumptions for net periodic benefit cost: Discount rate 4.30 % 4.53 % 4.21 % 4.03 % 4.29 % 3.99 % Expected return on plan assets 7.25 % 7.50 % 7.75 % 7.25 % 7.50 % 7.70 % Rate of compensation increase 3.50 % 3.50 % 4.00 % n/a n/a n/a Plan Assets: Pension Plan Assets - The Company’s investment objective is to ensure assets are sufficient to pay benefits while mitigating the volatility of retirement plan assets or liabilities recorded in the balance sheet. The Company mitigates volatility through asset diversification and partial asset/liability matching. The investment portfolio for the Company's pension plan assets contains a diversified blend of equity and fixed-income investments. The Company’s current overall targeted asset allocation as a percentage of total market value was approximately 63% equities and 37% fixed-income and cash. Assets are rebalanced regularly to keep the actual allocation in line with targets. Equity holdings primarily include investments in small-, medium- and large-cap companies in the U.S. (including Company stock), investments in developed and emerging foreign markets and other investments such as private equity and real estate. Fixed-income holdings consist of U.S. government and agency securities, state and municipal bonds, corporate bonds from diversified industries and foreign obligations. In addition, cash equivalent balances are maintained at levels adequate to meet near-term plan expenses and benefit payments. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews. Postretirement Healthcare Plan Assets - The Company's investment objective is to maximize the return on assets to help pay the benefits by prudently investing in equities, fixed income and alternative assets. The Company's current overall targeted asset allocation as a percentage of total market value was approximately 69% equities and 31% fixed-income and cash. Equity holdings primarily include investments in small-, medium-, and large-cap companies in the U.S., investments in developed and emerging foreign markets and other investments such as private equity and real estate. Fixed-income holdings consist of U.S. government and agency securities, state and municipal bonds, corporate bonds from diversified industries and foreign obligations. In addition, cash equivalent balances are maintained at levels adequate to meet near-term plan expenses and benefit payments. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews. The following tables present the fair values of the plan assets related to the Company’s pension and postretirement healthcare plans within the fair value hierarchy as defined in Note 6. The fair values of the Company’s pension plan assets as of December 31, 2017 were as follows (in thousands): Balance as of December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash and cash equivalents $ 51,082 $ 1,057 $ 50,025 Equity holdings: U.S. companies 722,527 705,111 17,416 Foreign companies 78,765 78,765 — Harley-Davidson common stock 64,800 64,800 — Pooled equity funds 416,881 416,881 — Other 119 119 — Total equity holdings 1,283,092 1,265,676 17,416 Fixed-income holdings: U.S. Treasuries 39,866 39,866 — Federal agencies 29,188 — 29,188 Corporate bonds 462,563 — 462,563 Pooled fixed income funds 189,361 61,875 127,486 Foreign bonds 81,732 — 81,732 Municipal bonds 11,800 — 11,800 Total fixed-income holdings 814,510 101,741 712,769 Total assets in the fair value hierarchy 2,148,684 $ 1,368,474 $ 780,210 Assets measured at net asset value as a practical expedient: Limited partnership interests 9,099 Real estate investment trust 5,102 Total pension plan assets $ 2,162,885 Included in the pension plan assets are 1,273,592 shares of the Company’s common stock with a market value of $64.8 million at December 31, 2017 . The fair values of the Company’s postretirement healthcare plan assets as of December 31, 2017 were as follows (in thousands): Balance as of December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash and cash equivalents $ 19,317 $ — $ 19,317 Equity holdings: U.S. companies 101,720 101,720 — Foreign companies 19,498 19,495 3 Pooled equity funds 23,563 23,563 — Other 14 14 — Total equity holdings 144,795 144,792 3 Fixed-income holdings: U.S. Treasuries 6,803 6,803 — Federal agencies 5,060 — 5,060 Corporate bonds 6,756 — 6,756 Pooled fixed income funds 27,461 27,461 — Foreign bonds 311 — 311 Municipal bonds 284 — 284 Total fixed-income holdings 46,675 34,264 12,411 Total assets in the fair value hierarchy 210,787 $ 179,056 $ 31,731 Assets measured at net asset value as a practical expedient: Real estate investment trust 6,750 Total postretirement healthcare plan assets $ 217,537 The fair values of the Company’s pension plan assets as of December 31, 2016 were as follows (in thousands): Balance as of December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash and cash equivalents $ 84,548 $ 1,284 $ 83,264 Equity holdings: U.S. companies 603,568 586,302 17,266 Foreign companies 50,256 50,256 — Harley-Davidson common stock 74,301 74,301 — Pooled equity funds 316,225 316,225 — Other 105 105 — Total equity holdings 1,044,455 1,027,189 17,266 Fixed-income holdings: U.S. Treasuries 41,089 41,089 — Federal agencies 36,210 — 36,210 Corporate bonds 418,522 — 418,522 Pooled fixed income funds 170,741 57,543 113,198 Foreign bonds 69,871 — 69,871 Municipal bonds 12,509 — 12,509 Total fixed-income holdings 748,942 98,632 650,310 Total assets in the fair value hierarchy 1,877,945 $ 1,127,105 $ 750,840 Assets measured at net asset value as a practical expedient: Limited partnership interests 9,321 Real estate investment trust 12,623 Total pension plan assets $ 1,899,889 Included in the pension plan assets are 1,273,592 shares of the Company’s common stock with a market value of $74.3 million at December 31, 2016 . The fair values of the Company’s postretirement healthcare plan assets as of December 31, 2016 were as follows (in thousands): Balance as of December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash and cash equivalents $ 4,442 $ 1,180 $ 3,262 Equity holdings: U.S. companies 84,643 84,643 — Foreign companies 14,190 13,995 195 Pooled equity funds 19,132 19,132 — Other 9 9 — Total equity holdings 117,974 117,779 195 Fixed-income holdings: U.S. Treasuries 12,262 12,262 — Federal agencies 7,364 — 7,364 Corporate bonds 11,750 — 11,750 Pooled fixed income funds 9,690 — 9,690 Foreign bonds 633 — 633 Municipal bonds 459 — 459 Total fixed-income holdings 42,158 12,262 29,896 Total assets in the fair value hierarchy 164,574 $ 131,221 $ 33,353 Assets measured at net asset value as a practical expedient: Real estate investment trust 5,518 Total postretirement healthcare plan assets $ 170,092 No plan assets are expected to be returned to the Company during the fiscal year ending December 31, 2018 . For 2018 , the Company’s overall expected long-term rate of return is 7.25% for pension assets and 7.25% for postretirement healthcare plan assets. The expected long-term rate of return is based on the portfolio as a whole and not on the sum of the returns on individual asset categories. The return is based on historical returns adjusted to reflect the current view of the long-term investment market. Postretirement Healthcare Cost: The weighted-average healthcare cost trend rate used in determining the accumulated postretirement benefit obligation of the healthcare plans was as follows: 2017 2016 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 2026 2021 This healthcare cost trend rate assumption can have a significant effect on the amounts reported. A one-percentage-point change in the assumed healthcare cost trend rate would have the following effects (in thousands): One Percent Increase One Percent Decrease Total of service and interest cost components in 2017 $ 648 $ (623 ) Accumulated benefit obligation as of December 31, 2017 $ 11,984 $ (10,940 ) Future Contributions and Benefit Payments: During 2017 , the Company voluntarily contributed $25.0 million to its qualified pension plan and $15.0 million to its postretirement healthcare plans. No pension plan contributions are required in 2018 . The Company expects that 2018 postretirement healthcare plan benefits and benefits due under the SERPA plans will be paid by the Company or funded with plan assets. The expected benefit payments for the next five years and thereafter were as follows (in thousands): Pension Benefits SERPA Benefits Postretirement Healthcare Benefits 2018 $ 90,510 $ 3,346 $ 28,446 2019 $ 92,694 $ 2,325 $ 28,309 2020 $ 95,930 $ 2,843 $ 27,351 2021 $ 98,109 $ 3,294 $ 26,175 2022 $ 102,258 $ 3,528 $ 25,096 2023-2027 $ 574,745 $ 27,719 $ 120,438 Defined Contribution Plans: The Company has various defined contribution benefit plans that in total cover substantially all full-time employees. Employees can make voluntary contributions in accordance with the provisions of their respective plan, which includes a 401(k) tax deferral option. The Company expensed $19.0 million , $18.2 million and $18.0 million for Company contributions during 2017 , 2016 and 2015 , respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | Leases The Company operates certain administrative, manufacturing, warehouse and testing facilities and equipment under lease arrangements that are accounted for as operating leases. Total rental expense was $15.1 million , $14.4 million and $15.0 million for 2017 , 2016 and 2015 , respectively. Future minimum operating lease payments at December 31, 2017 were as follows (in thousands): 2018 $ 15,074 2019 14,225 2020 9,601 2021 8,523 2022 6,192 Thereafter 8,379 Total operating lease payments $ 61,994 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to lawsuits and other claims related to environmental, product and other matters. In determining costs to accrue related to these items, the Company carefully analyzes cases and considers the likelihood of adverse judgments or outcomes, as well as the potential range of possible loss. Any amounts accrued for these matters are monitored on an ongoing basis and are updated based on new developments or new information as it becomes available for each matter. Environmental Protection Agency Notice: In December 2009, the Company received formal, written requests for information from the United States Environmental Protection Agency (EPA) regarding: (i) certificates of conformity for motorcycle emissions and related designations and labels, (ii) aftermarket parts, and (iii) warranty claims on emissions related components. The Company promptly submitted written responses to the EPA’s inquiry and has engaged in information exchanges and discussions with the EPA. In August 2016, the Company entered into a consent decree with the EPA regarding these issues, and the consent decree was subsequently revised in July 2017 (the Settlement). In the Settlement, the Company agreed to, among other things, pay a fine, and not sell tuning products unless they are approved by the EPA or California Air Resources Board. In December 2017, the EPA filed the Settlement with the U.S. District Court for the District of Columbia for the purpose of obtaining court approval of the Settlement. Three amicus briefs opposing portions of the Settlement were filed with the court by the deadline of January 31, 2018. The Company anticipates the court will make a decision whether or not to finalize the Settlement in the following months. The Company has an accrual associated with this matter which is included in accrued liabilities in the Consolidated Balance Sheets, and as a result, if it is finalized, the Settlement would not have a material adverse effect on the Company's financial condition or results of operations. The Settlement is not final until it is approved by the court, and if it is not approved by the court, the Company cannot reasonably estimate the impact of any remedies the EPA might seek beyond the Company's current reserve for this matter. York Environmental Matters: The Company is involved with government agencies and groups of potentially responsible parties related to a matter involving the cleanup of soil and groundwater contamination at its York, Pennsylvania facility. The York facility was formerly used by the U.S. Navy and AMF prior to the purchase of the York facility by the Company from AMF in 1981. Although the Company is not certain as to the full extent of the environmental contamination at the York facility, it has been working with the Pennsylvania Department of Environmental Protection (PADEP) since 1986 in undertaking environmental investigation and remediation activities, including a site-wide remedial investigation/feasibility study (RI/FS). In January 1995, the Company entered into a settlement agreement (the Agreement) with the Navy, and the parties amended the Agreement in 2013 to address ordnance and explosive waste. The Agreement calls for the Navy and the Company to contribute amounts into a trust equal to 53% and 47% , respectively, of costs associated with environmental investigation and remediation activities at the York facility (Response Costs). The trust administers the payment of the Response Costs incurred at the York facility as covered by the Agreement. The Company has an accrual for its estimate of its share of the future Response Costs at the York facility which is included in other long-term liabilities in the Consolidated Balance Sheets. While much of the work on the RI/FS is complete, it is still under agency review and given the uncertainty that exists concerning the nature and scope of additional environmental investigation and remediation that may ultimately be required under the RI/FS that is finally approved or otherwise at the York facility, the Company is unable to make a reasonable estimate of those additional costs, if any, that may result. The estimate of the Company's future Response Costs that will be incurred at the York facility is based on reports of independent environmental consultants retained by the Company, the actual costs incurred to date and the estimated costs to complete the necessary investigation and remediation activities. Product Liability Matters: The Company is involved in product liability suits related to the operation of its business. The Company accrues for claim exposures that are probable of occurrence and can be reasonably estimated. The Company also maintains insurance coverage for product liability exposures. The Company believes that its accruals and insurance coverage are adequate and that product liability suits will not have a material adverse effect on the Company’s consolidated financial statements. National Highway Traffic Safety Administration Matters: In July 2016, the National Highway Traffic Safety Administration (NHTSA) began an investigation into certain of the Company's motorcycles equipped with anti-lock braking systems (ABS). NHTSA’s investigation is in response to rider complaints related to brake failures and applies to model-year 2008-2013 Touring and model-year 2008-2017 V-ROD ® motorcycles. NHTSA noted that Harley-Davidson has a two-year brake fluid replacement interval that owners either are unaware of or ignore. During 2017, the Company estimated and recorded a $29.4 million accrual associated with the NHTSA matter which is included in accrued liabilities. On January 30, 2018, the Company announced a voluntary recall which offers a free brake fluid flush for model-year 2008-2011 Touring and V-ROD ® motorcycles. The Company believes the accrued liability it has recorded will adequately cover the cost of the recall. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Common Stock: The Company is authorized to issue 800,000,000 shares of common stock of $0.01 par value. There were 168.1 million and 175.9 million common shares outstanding as of December 31, 2017 and 2016 , respectively. During 2016, the Company retired 165.0 million shares of its treasury stock. During 2017 , the Company repurchased 8.8 million shares of its common stock at a weighted-average price of $53 . This includes 0.2 million shares of common stock that were repurchased from employees that surrendered stock to satisfy withholding taxes in connection with the vesting of restricted stock awards. The remaining repurchases were made pursuant to the following authorizations (in millions of shares): Shares Repurchased Authorization Remaining Board of Directors’ Authorization 2017 2016 2015 1997 Authorization — — 0.9 — 2007 Authorization — — 0.9 — 2014 Authorization — — 20.0 — 2015 Authorization — 9.0 6.0 — 2016 Authorization 8.7 0.7 — 10.6 Total 8.7 9.7 27.8 10.6 1997 Authorization – The Company had an authorization from its Board of Directors (originally adopted December 1997) to repurchase shares of its outstanding common stock under which the cumulative number of shares repurchased, at the time of any repurchase, shall not exceed the sum of (1) the number of shares issued in connection with the exercise of stock options occurring on or after January 1, 2004, and (2) 1% of the issued and outstanding common stock of the Company on January 1 of the current year, adjusted for any stock split. 2007 Authorization – In December 2007, the Company’s Board of Directors separately authorized the Company to buy back up to 20.0 million shares of its common stock with no dollar limit or expiration date. 2014 Authorization – In February 2014, the Company’s Board of Directors separately authorized the Company to buy back up to 20.0 million shares of its common stock with no dollar limit or expiration date. 2015 Authorization – In June 2015, the Company’s Board of Directors separately authorized the Company to buy back up to 15.0 million shares of its common stock with no dollar limit or expiration date. 2016 Authorization – In February 2016, the Company’s Board of Directors separately authorized the Company to buy back up to 20.0 million shares of its common stock with no dollar limit or expiration date. Preferred Stock: The Company is authorized to issue 2,000,000 shares of preferred stock of $1.00 par value, none of which is outstanding. |
Share-Based Awards
Share-Based Awards | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Awards | Share-Based Awards The Company has a share-based compensation plan which was approved by its shareholders in April 2014 (Plan) under which the Board of Directors may grant to employees share-based awards including restricted stock units (RSUs), performance shares, nonqualified stock options and stock appreciation rights (SARs). Performance shares include a three -year performance period with vesting based on achievement of internal performance targets. Forfeitures are estimated at the grant date and adjusted when it is likely to change. RSUs granted under the Plan vest ratably over a three -year period with the first one-third of the grant vesting one year after the date of grant. Dividends are paid on RSUs settled with stock and performance shares settled with stock. Dividend equivalents are paid on RSUs and performance shares settled with cash. The options and SARs granted under the Plan have an exercise price equal to the fair market value of the underlying stock at the date of grant and vest ratably over a three -year period with the first one-third of the grant becoming exercisable one year after the date of grant. The options and SARs expire 10 years from the date of grant. At December 31, 2017 , there were 10.8 million shares of common stock available for future awards under the Plan. Restricted Stock Units and Performance Shares Settled in Stock: The fair value of RSUs and performance shares settled in stock is determined based on the market price of the Company’s shares on the grant date. The following table summarizes the activity for these awards for the year ended December 31, 2017 (in thousands except for per share amounts): Shares / Units Grant Date Fair Value Per Share Nonvested, beginning of period 1,371 $ 46 Granted 730 $ 56 Vested (408 ) $ 51 Forfeited (92 ) $ 50 Nonvested, end of period 1,601 $ 49 As of December 31, 2017 , there was $33.9 million of unrecognized compensation cost related to RSUs and performance shares settled in stock (net of estimated forfeitures) that is expected to be recognized over a weighted-average period of 1.7 years. Restricted Stock Units and Performance Shares Settled in Cash: RSUs and performance shares that are settled in cash are recorded in the Company’s consolidated balance sheets as a liability until vested. The fair value is determined based on the market price of the Company’s stock and is remeasured at each balance sheet date. The following table summarizes the activity for these awards for the year ended December 31, 2017 (in thousands except for per share amounts): Units Weighted-Average Grant Date Fair Value Per Share Nonvested, beginning of period 124 $ 54 Granted 56 $ 52 Vested (49 ) $ 60 Forfeited (30 ) $ 59 Nonvested, end of period 101 $ 53 Stock Options: There were no stock options granted in 2017 and 2016. In 2015, the Company estimated the grant date fair value of its option awards granted using a lattice-based option valuation model. The Company believes that the lattice-based option valuation model provided a more precise estimate of fair value than the Black-Scholes option pricing model. Lattice-based option valuation models utilize ranges of assumptions over the expected term of the options. The Company used implied volatility to determine the expected volatility of its stock. The Company used historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted was derived from the output of the option valuation model and represents the average period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Assumptions used in calculating the lattice-based fair value of options granted during 2015 were as follows: 2015 Expected average term (in years) 6.0 Expected volatility 24% - 30% Weighted average volatility 28 % Expected dividend yield 2.0 % Risk-free interest rate 0.1% - 2.0% The following table summarizes the stock option transactions for the year ended December 31, 2017 (in thousands except for per share amounts): Options Weighted- Average Price Options outstanding, beginning of period 1,878 $ 49 Options exercised (282 ) $ 40 Options forfeited (192 ) $ 68 Options outstanding, end of period 1,404 $ 48 Exercisable, end of period 1,309 $ 47 The weighted-average fair value of options granted during the year ended December 31, 2015 was $13 . As of December 31, 2017 , there was $0.1 million of unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 0.1 year. The following table summarizes the aggregate intrinsic value related to options outstanding, exercisable and exercised as of and for the years ended December 31 (in thousands): 2017 2016 2015 Exercised $ 4,051 $ 9,595 $ 9,890 Outstanding $ 11,711 $ 22,383 $ 16,605 Exercisable $ 11,711 $ 22,383 $ 16,605 The Company’s policy is to issue new shares of common stock upon the exercise of employee stock options. Stock options outstanding at December 31, 2017 were as follows (options in thousands): Price Range Weighted-Average Contractual Life Options Weighted-Average Exercise Price $10.01 to $20 1.2 151 $ 13 $20.01 to $30 2.1 145 $ 24 $30.01 to $40 0.1 37 $ 39 $40.01 to $50 3.6 239 $ 44 $50.01 to $60 4.6 193 $ 52 $60.01 to $70 5.2 639 $ 63 Options outstanding 4.0 1,404 $ 48 Options exercisable 3.7 1,309 $ 47 Stock Appreciation Rights (SARs): There were no SARs granted in 2017 or 2016 . SARs vest under the same terms and conditions as options; however, they are settled in cash equal to their settlement date fair value. As a result, SARs are recorded in the Company’s consolidated balance sheets as a liability until the date of exercise. The fair value of each SAR award is estimated using a lattice-based valuation model. In accordance with ASC Topic 718, “Stock Compensation,” the fair value of each SAR award is recalculated at the end of each reporting period and the liability and expense adjusted based on the new fair value and the percent vested. The assumptions used to determine the fair value of the SAR awards at December 31, 2017 and 2016 were as follows: 2017 2016 Expected average term (in years) 5.7 5.2 - 5.7 Expected volatility 28% - 31% 28% - 31% Expected dividend yield 2.9 % 2.4 % Risk-free interest rate 1.3% - 2.5% 0.5% - 2.6% The following table summarizes the SAR transactions for the year ended December 31, 2017 (in thousands except for per share amounts): SARs Weighted-Average Price Outstanding, beginning of period 75 $ 37 Granted — $ — Exercised (32 ) $ 31 Forfeited (16 ) $ 62 Outstanding, end of period 27 $ 30 Exercisable, end of period 27 $ 30 The weighted-average fair value of SARs granted during the year ended December 31, 2015 was $13 . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the years ended December 31 (in thousands except per share amounts): 2017 2016 2015 Numerator : Income used in computing basic and diluted earnings per share $ 521,759 $ 692,164 $ 752,207 Denominator : Denominator for basic earnings per share-weighted-average common shares 171,995 179,676 202,681 Effect of dilutive securities – employee stock compensation plan 937 859 1,005 Denominator for diluted earnings per share- adjusted weighted-average shares outstanding 172,932 180,535 203,686 Earnings per common share: Basic $ 3.03 $ 3.85 $ 3.71 Diluted $ 3.02 $ 3.83 $ 3.69 Options to purchase 0.8 million , 1.4 million and 1.0 million weighted-average shares of common stock outstanding during 2017 , 2016 and 2015 , respectively, were not included in the Company’s computation of dilutive securities because the exercise price was greater than the market price and therefore the effect would have been anti-dilutive. The Company has a share-based compensation plan under which employees may be granted share-based awards, including restricted stock units (RSUs). Non-forfeitable dividend equivalents are paid on unvested RSUs. As such, RSUs are considered participating securities under the two-class method of calculating earnings per share as described in ASC Topic 260, “Earnings per Share.” The two-class method of calculating earnings per share did not have a material impact on the Company’s earnings per share calculation as of December 31, 2017 , 2016 and 2015 . |
Reportable Segments and Geograp
Reportable Segments and Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Reportable Segments and Geographic Information | Reportable Segments and Geographic Information Reportable Segments: Harley-Davidson, Inc. is the parent company for the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The Company operates in two segments: the Motorcycles & Related Products (Motorcycles) segment and the Financial Services segment. The Company’s reportable segments are strategic business units that offer different products and services and are managed separately based on the fundamental differences in their operations. The Motorcycles segment consists of HDMC which designs, manufactures and sells at wholesale on-road Harley-Davidson motorcycles as well as motorcycle parts, accessories, general merchandise and related services. The Company’s products are sold to retail customers through a network of independent dealers. The Company conducts business on a global basis, with sales in the United States, Canada, Latin America, Europe/Middle East/Africa (EMEA) and Asia Pacific. The Financial Services segment consists of HDFS which provides wholesale and retail financing and provides insurance and insurance-related programs primarily to Harley-Davidson dealers and their retail customers. HDFS conducts business principally in the United States and Canada. Information by segment is set forth below for the years ended December 31 (in thousands): 2017 2016 2015 Motorcycles net revenue $ 4,915,027 $ 5,271,376 $ 5,308,744 Gross profit 1,653,344 1,851,666 1,952,460 Selling, administrative and engineering expense 1,037,386 1,078,260 1,076,970 Operating income from Motorcycles 615,958 773,406 875,490 Financial Services revenue 732,197 725,082 686,658 Financial Services expense 456,892 449,552 406,453 Operating income from Financial Services 275,305 275,530 280,205 Operating income $ 891,263 $ 1,048,936 $ 1,155,695 Financial Services revenue includes $6.9 million , $4.4 million and $6.9 million of interest that HDMC paid to HDFS on wholesale finance receivables in 2017 , 2016 and 2015 , respectively. The offsetting cost of these interest incentives was recorded as a reduction to Motorcycles revenue. Information by segment is set forth below as of December 31 (in thousands): Motorcycles Financial Services Consolidated 2017 Total assets $ 2,449,603 $ 7,523,069 $ 9,972,672 Depreciation and amortization $ 215,639 $ 6,549 $ 222,188 Capital expenditures $ 193,204 $ 13,090 $ 206,294 2016 Total assets $ 2,490,450 $ 7,399,790 $ 9,890,240 Depreciation and amortization $ 202,122 $ 7,433 $ 209,555 Capital expenditures $ 245,316 $ 10,947 $ 256,263 2015 Total assets $ 2,522,249 $ 7,450,728 $ 9,972,977 Depreciation and amortization $ 188,926 $ 9,148 $ 198,074 Capital expenditures $ 249,772 $ 10,202 $ 259,974 Geographic Information: Included in the consolidated financial statements are the following amounts relating to geographic locations for the years ended December 31 (in thousands): 2017 2016 2015 Revenue from Motorcycles (a) : United States $ 3,215,513 $ 3,579,129 $ 3,768,069 EMEA 790,725 798,489 728,198 Japan 180,938 200,309 162,675 Canada 232,883 212,099 178,042 Australia and New Zealand 168,670 181,809 165,854 Other foreign countries 326,298 299,541 305,906 Total revenue from Motorcycles $ 4,915,027 $ 5,271,376 $ 5,308,744 Revenue from Financial Services (a) : United States $ 698,383 $ 692,784 $ 656,888 Europe 6,845 6,528 5,373 Canada 22,580 21,626 21,180 Other foreign countries 4,389 4,144 3,217 Total revenue from Financial Services $ 732,197 $ 725,082 $ 686,658 Long-lived assets (b) : United States $ 912,032 $ 943,479 $ 915,509 International 55,749 38,114 26,909 Total long-lived assets $ 967,781 $ 981,593 $ 942,418 (a) Revenue is attributed to geographic regions based on location of customer. (b) Long-lived assets include all long-term assets except those specifically excluded under ASC Topic 280, “Segment Reporting,” such as deferred income taxes and finance receivables. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions A former director of the Company was Chairman and Chief Executive Officer and an equity owner of Fred Deeley Imports Ltd. (Deeley Imports) when certain of its assets and liabilities were acquired by the Company in 2015. Deeley Imports was the exclusive distributor of the Company’s motorcycles in Canada until August 2015 when the Company completed its purchase of certain assets and liabilities from Deeley Imports including, among other things, the acquisition of the exclusive right to distribute the Company's motorcycles and other products in Canada. The Company recorded Motorcycles and Related Products revenue and Financial Services revenue from Deeley Imports during 2015 of $117.3 million prior to the acquisition. As a result of the acquisition, the Company no longer does business with Deeley Imports. Refer to Note 3 for further details. Upon the termination of the distribution agreement between the Company and Deeley Imports, the Company entered into dealer agreements with approximately 66 dealers in Canada, all of which had preexisting dealer agreements with Deeley Imports. These new Canadian dealer agreements included an agreement with Trev Deeley Motorcycles for the operation of a Harley-Davidson dealership located in Richmond, British Columbia. Trev Deeley Motorcycles is owned by the Darren James 2014 Trust, of which a former director of the Company is the sole trustee and his son is the beneficiary. The former director of the Company retired from the Board of Directors in April 2017 at which time he was no longer considered a related party. The Company recorded Motorcycles and Related Products revenue and Financial Services revenue from Trev Deeley Motorcycles during 2017 and 2016 of $5.8 million and $5.3 million , respectively, and had finance receivables balances due from Trev Deeley Motorcycles of $0.3 million and $0.5 million at December 31, 2017 and 2016 , respectively. |
Supplemental Consolidating Data
Supplemental Consolidating Data | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Consolidating Data | Supplemental Consolidating Data The supplemental consolidating data for the periods noted is presented for informational purposes. The supplemental consolidating data may be different than segment information presented elsewhere due to the allocation of intercompany eliminations to reporting segments. All supplemental data is presented in thousands. Year Ended December 31, 2017 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 4,925,003 $ — $ (9,976 ) $ 4,915,027 Financial Services — 734,008 (1,811 ) 732,197 Total revenue 4,925,003 734,008 (11,787 ) 5,647,224 Costs and expenses: Motorcycles and Related Products cost of goods sold 3,261,683 — — 3,261,683 Financial Services interest expense — 180,193 — 180,193 Financial Services provision for credit losses — 132,444 — 132,444 Selling, administrative and engineering expense 1,038,994 154,232 (11,585 ) 1,181,641 Total costs and expenses 4,300,677 466,869 (11,585 ) 4,755,961 Operating income 624,326 267,139 (202 ) 891,263 Investment income 199,580 — (196,000 ) 3,580 Interest expense 31,004 — — 31,004 Income before provision for income taxes 792,902 267,139 (196,202 ) 863,839 Provision for income taxes 214,175 127,905 — 342,080 Net income $ 578,727 $ 139,234 $ (196,202 ) $ 521,759 Year Ended December 31, 2016 HDMC HDFS Eliminations Consolidated Revenue: Motorcycles and Related Products $ 5,281,355 $ — $ (9,979 ) $ 5,271,376 Financial Services — 726,736 (1,654 ) 725,082 Total revenue 5,281,355 726,736 (11,633 ) 5,996,458 Costs and expenses: Motorcycles and Related Products cost of goods sold 3,419,710 — — 3,419,710 Financial Services interest expense — 173,756 — 173,756 Financial Services provision for credit losses — 136,617 — 136,617 Selling, administrative and engineering expense 1,080,020 149,157 (11,738 ) 1,217,439 Total costs and expenses 4,499,730 459,530 (11,738 ) 4,947,522 Operating income 781,625 267,206 105 1,048,936 Investment income 187,645 — (183,000 ) 4,645 Interest expense 29,670 — — 29,670 Income before provision for income taxes 939,600 267,206 (182,895 ) 1,023,911 Provision for income taxes 231,986 99,761 — 331,747 Net income $ 707,614 $ 167,445 $ (182,895 ) $ 692,164 Year Ended December 31, 2015 HDMC HDFS Eliminations Consolidated Revenue: Motorcycles and Related Products $ 5,318,850 $ — $ (10,106 ) $ 5,308,744 Financial Services — 688,211 (1,553 ) 686,658 Total revenue 5,318,850 688,211 (11,659 ) 5,995,402 Costs and expenses: Motorcycles and Related Products cost of goods sold 3,356,284 — — 3,356,284 Financial Services interest expense — 161,983 — 161,983 Financial Services provision for credit losses — 101,345 — 101,345 Selling, administrative and engineering expense 1,078,525 153,229 (11,659 ) 1,220,095 Total costs and expenses 4,434,809 416,557 (11,659 ) 4,839,707 Operating income 884,041 271,654 — 1,155,695 Investment income 106,585 — (100,000 ) 6,585 Interest expense 12,117 — — 12,117 Income before provision for income taxes 978,509 271,654 (100,000 ) 1,150,163 Provision for income taxes 300,499 97,457 — 397,956 Net income $ 678,010 $ 174,197 $ (100,000 ) $ 752,207 December 31, 2017 HDMC HDFS Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 338,186 $ 349,335 $ — $ 687,521 Accounts receivable, net 483,709 — (153,723 ) 329,986 Finance receivables, net — 2,105,662 — 2,105,662 Inventories 538,202 — — 538,202 Restricted cash — 47,518 — 47,518 Other current assets 132,999 48,521 (5,667 ) 175,853 Total current assets 1,493,096 2,551,036 (159,390 ) 3,884,742 Finance receivables, net — 4,859,424 — 4,859,424 Property, plant and equipment, net 922,280 45,501 — 967,781 Prepaid pension costs 19,816 — — 19,816 Goodwill 55,947 — — 55,947 Deferred income taxes 66,877 43,515 (1,319 ) 109,073 Other long-term assets 138,344 23,593 (86,048 ) 75,889 $ 2,696,360 $ 7,523,069 $ (246,757 ) $ 9,972,672 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 214,263 $ 167,057 $ (153,723 ) $ 227,597 Accrued liabilities 444,028 90,942 (5,148 ) 529,822 Short-term debt — 1,273,482 — 1,273,482 Current portion of long-term debt, net — 1,127,269 — 1,127,269 Total current liabilities 658,291 2,658,750 (158,871 ) 3,158,170 Long-term debt, net 741,961 3,845,297 — 4,587,258 Pension liability 54,606 — — 54,606 Postretirement healthcare liability 118,753 — — 118,753 Other long-term liabilities 171,200 35,503 2,905 209,608 Commitments and contingencies (Note 14) Shareholders’ equity 951,549 983,519 (90,791 ) 1,844,277 $ 2,696,360 $ 7,523,069 $ (246,757 ) $ 9,972,672 December 31, 2016 HDMC HDFS Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 425,540 $ 334,444 $ — $ 759,984 Marketable securities 5,019 500 — 5,519 Accounts receivable, net 450,186 — (165,080 ) 285,106 Finance receivables, net — 2,076,261 — 2,076,261 Inventories 499,917 — — 499,917 Restricted cash — 52,574 — 52,574 Other current assets 127,606 46,934 (49 ) 174,491 Total current assets 1,508,268 2,510,713 (165,129 ) 3,853,852 Finance receivables, net — 4,759,197 — 4,759,197 Property, plant and equipment, net 942,634 38,959 — 981,593 Goodwill 53,391 — — 53,391 Deferred income taxes 103,487 66,152 (1,910 ) 167,729 Other long-term assets 132,835 24,769 (83,126 ) 74,478 $ 2,740,615 $ 7,399,790 $ (250,165 ) $ 9,890,240 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 219,353 $ 181,045 $ (165,080 ) $ 235,318 Accrued liabilities 395,907 90,910 (165 ) 486,652 Short-term debt — 1,055,708 — 1,055,708 Current portion of long-term debt, net — 1,084,884 — 1,084,884 Total current liabilities 615,260 2,412,547 (165,245 ) 2,862,562 Long-term debt, net 741,306 3,925,669 — 4,666,975 Pension liability 84,442 — — 84,442 Postretirement healthcare liability 173,267 — — 173,267 Other long-term liabilities 150,391 29,697 2,748 182,836 Commitments and contingencies (Note 14) Shareholders’ equity 975,949 1,031,877 (87,668 ) 1,920,158 $ 2,740,615 $ 7,399,790 $ (250,165 ) $ 9,890,240 Year Ended December 31, 2017 HDMC HDFS Eliminations Consolidated Cash flows from operating activities: Net income $ 578,727 $ 139,234 $ (196,202 ) $ 521,759 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 215,639 6,549 — 222,188 Amortization of deferred loan origination costs — 82,911 — 82,911 Amortization of financing origination fees 655 7,390 — 8,045 Provision for long-term employee benefits 29,900 — — 29,900 Employee benefit plan contributions and payments (63,277 ) — — (63,277 ) Stock compensation expense 29,570 2,921 — 32,491 Net change in wholesale finance receivables related to sales — — 35,172 35,172 Provision for credit losses — 132,444 — 132,444 Deferred income taxes 29,949 21,497 (591 ) 50,855 Other, net 4,858 3,498 203 8,559 Changes in current assets and liabilities: Accounts receivable, net (6,792 ) — (11,357 ) (18,149 ) Finance receivables—accrued interest and other — (1,313 ) — (1,313 ) Inventories (20,584 ) — — (20,584 ) Accounts payable and accrued liabilities 9,753 (11,497 ) 11,872 10,128 Derivative instruments 1,785 81 — 1,866 Other (31,868 ) (1,684 ) 5,618 (27,934 ) Total adjustments 199,588 242,797 40,917 483,302 Net cash provided by operating activities 778,315 382,031 (155,285 ) 1,005,061 Cash flows from investing activities: Capital expenditures (193,204 ) (13,090 ) — (206,294 ) Origination of finance receivables — (7,109,624 ) 3,517,676 (3,591,948 ) Collections on finance receivables — 6,786,702 (3,558,391 ) 3,228,311 Sales and redemptions of marketable securities 6,916 — — 6,916 Other 547 — — 547 Net cash used by investing activities (185,741 ) (336,012 ) (40,715 ) (562,468 ) Year Ended December 31, 2017 HDMC HDFS Eliminations Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 893,668 — 893,668 Repayments of medium-term notes — (800,000 ) — (800,000 ) Repayments of securitization debt — (444,671 ) — (444,671 ) Borrowings of asset-backed commercial paper — 469,932 — 469,932 Repayments of asset-backed commercial paper — (176,227 ) — (176,227 ) Net increase in credit facilities and unsecured commercial paper — 212,809 — 212,809 Net change in restricted cash — 8,458 — 8,458 Dividends paid (251,862 ) (196,000 ) 196,000 (251,862 ) Purchase of common stock for treasury (465,263 ) — — (465,263 ) Issuance of common stock under employee stock option plans 11,353 — — 11,353 Net cash used by financing activities (705,772 ) (32,031 ) 196,000 (541,803 ) Effect of exchange rate changes on cash and cash equivalents 25,844 903 — 26,747 Net (decrease) increase in cash and cash equivalents $ (87,354 ) $ 14,891 $ — $ (72,463 ) Cash and cash equivalents: Cash and cash equivalents—beginning of period $ 425,540 $ 334,444 $ — $ 759,984 Net (decrease) increase in cash and cash equivalents (87,354 ) 14,891 — (72,463 ) Cash and cash equivalents—end of period $ 338,186 $ 349,335 $ — $ 687,521 Year Ended December 31, 2016 HDMC HDFS Eliminations Consolidated Cash flows from operating activities: Net income $ 707,614 $ 167,445 $ (182,895 ) $ 692,164 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 202,122 7,433 — 209,555 Amortization of deferred loan origination costs — 86,681 — 86,681 Amortization of financing origination fees 654 8,598 — 9,252 Provision for long-term employee benefits 38,273 — — 38,273 Employee benefit plan contributions and payments (55,809 ) — — (55,809 ) Stock compensation expense 29,811 2,525 — 32,336 Net change in wholesale finance receivables related to sales — — (3,233 ) (3,233 ) Provision for credit losses — 136,617 — 136,617 Gain on off-balance sheet asset-backed securitization — (9,269 ) — (9,269 ) Loss on debt extinguishment — 118 — 118 Deferred income taxes 7,772 (7,705 ) (232 ) (165 ) Other, net (7,041 ) 239 (105 ) (6,907 ) Changes in current assets and liabilities: Accounts receivable, net (67,621 ) — 21,687 (45,934 ) Finance receivables – accrued interest and other — (1,489 ) — (1,489 ) Inventories 85,072 — — 85,072 Accounts payable and accrued liabilities 26,005 25,027 (12,795 ) 38,237 Derivative instruments (3,413 ) — — (3,413 ) Other (25,415 ) (2,332 ) — (27,747 ) Total adjustments 230,410 246,443 5,322 482,175 Net cash provided by operating activities 938,024 413,888 (177,573 ) 1,174,339 Cash flows from investing activities: Capital expenditures (245,316 ) (10,947 ) — (256,263 ) Origination of finance receivables — (7,420,177 ) 3,755,682 (3,664,495 ) Collections on finance receivables — 6,936,140 (3,761,109 ) 3,175,031 Proceeds from finance receivables sold — 312,571 — 312,571 Sales and redemptions of marketable securities 40,014 — — 40,014 Other 411 — — 411 Net cash used by investing activities (204,891 ) (182,413 ) (5,427 ) (392,731 ) Year Ended December 31, 2016 HDMC HDFS Eliminations Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 1,193,396 — 1,193,396 Repayments of medium-term notes — (451,336 ) — (451,336 ) Repayments of securitization debt — (665,400 ) — (665,400 ) Borrowings of asset-backed commercial paper — 62,396 — 62,396 Repayments of asset-backed commercial paper — (71,500 ) — (71,500 ) Net decrease in credit facilities and unsecured commercial paper — (145,812 ) — (145,812 ) Net change in restricted cash — 43,495 — 43,495 Dividends paid (252,321 ) (183,000 ) 183,000 (252,321 ) Purchase of common stock for treasury (465,341 ) — — (465,341 ) Excess tax benefits from share-based payments 2,251 — — 2,251 Issuance of common stock under employee stock option plans 15,782 — — 15,782 Net cash used by financing activities (699,629 ) (217,761 ) 183,000 (734,390 ) Effect of exchange rate changes on cash and cash equivalents (8,407 ) (1,036 ) — (9,443 ) Net increase in cash and cash equivalents $ 25,097 $ 12,678 $ — $ 37,775 Cash and cash equivalents: Cash and cash equivalents – beginning of period $ 400,443 $ 321,766 $ — $ 722,209 Net increase in cash and cash equivalents 25,097 12,678 — 37,775 Cash and cash equivalents – end of period $ 425,540 $ 334,444 $ — $ 759,984 Year Ended December 31, 2015 HDMC HDFS Eliminations Consolidated Cash flows from operating activities: Net income $ 678,010 $ 174,197 $ (100,000 ) $ 752,207 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 188,926 9,148 — 198,074 Amortization of deferred loan origination costs — 93,546 — 93,546 Amortization of financing origination fees 267 9,708 — 9,975 Provision for long-term employee benefits 60,824 — — 60,824 Employee benefit plan contributions and payments (28,490 ) — — (28,490 ) Stock compensation expense 26,775 2,658 — 29,433 Net change in wholesale finance receivables related to sales — — (113,970 ) (113,970 ) Provision for credit losses — 101,345 — 101,345 Loss on debt extinguishment — 1,099 — 1,099 Deferred income taxes (4,792 ) (11,692 ) — (16,484 ) Other, net 19,625 1,288 — 20,913 Changes in current assets and liabilities: Accounts receivable, net 4,055 — (17,720 ) (13,665 ) Finance receivables – accrued interest and other — (3,046 ) — (3,046 ) Inventories (155,222 ) — — (155,222 ) Accounts payable and accrued liabilities 81,929 18,539 38,355 138,823 Derivative instruments (5,615 ) — — (5,615 ) Other 33,658 (3,287 ) — 30,371 Total adjustments 221,940 219,306 (93,335 ) 347,911 Net cash provided by operating activities 899,950 393,503 (193,335 ) 1,100,118 Cash flows from investing activities: Capital expenditures (249,772 ) (10,202 ) — (259,974 ) Origination of finance receivables — (7,836,279 ) 4,084,449 (3,751,830 ) Collections on finance receivables — 7,127,999 (3,991,114 ) 3,136,885 Sales and redemptions of marketable securities 11,507 — — 11,507 Acquisition of business (59,910 ) — — (59,910 ) Other 7,474 — — 7,474 Net cash used by investing activities (290,701 ) (718,482 ) 93,335 (915,848 ) Year Ended December 31, 2015 HDMC HDFS Eliminations Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 595,386 — 595,386 Repayments of medium-term notes — (610,331 ) — (610,331 ) Proceeds from issuance of senior unsecured notes 740,385 — — 740,385 Intercompany borrowing activity 250,000 (250,000 ) — — Proceeds from securitization debt — 1,195,668 — 1,195,668 Repayments of securitization debt — (1,008,135 ) — (1,008,135 ) Borrowings of asset-backed commercial paper — 87,442 — 87,442 Repayments of asset-backed commercial paper — (72,727 ) — (72,727 ) Net increase in credit facilities and unsecured commercial paper — 469,473 — 469,473 Net change in restricted cash — 11,410 — 11,410 Dividends paid (249,262 ) (100,000 ) 100,000 (249,262 ) Purchase of common stock for treasury (1,537,020 ) — — (1,537,020 ) Excess tax benefits from share-based payments 3,468 — — 3,468 Issuance of common stock under employee stock option plans 20,179 — — 20,179 Net cash (used by) provided by financing activities (772,250 ) 318,186 100,000 (354,064 ) Effect of exchange rate changes on cash and cash equivalents (10,451 ) (4,226 ) — (14,677 ) Net decrease in cash and cash equivalents $ (173,452 ) $ (11,019 ) $ — $ (184,471 ) Cash and cash equivalents: Cash and cash equivalents – beginning of period $ 573,895 $ 332,785 $ — $ 906,680 Net decrease in cash and cash equivalents (173,452 ) (11,019 ) — (184,471 ) Cash and cash equivalents – end of period $ 400,443 $ 321,766 $ — $ 722,209 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 25, 2018, the Board of Directors of the Company approved a plan to further improve its manufacturing operations and cost structure by commencing a multi-year manufacturing optimization plan anchored by the consolidation of its motorcycle assembly plant in Kansas City, Missouri, into its plant in York, Pennsylvania. The Company expects to incur restructuring and other consolidation costs of $170 to $200 million related to this plan through 2019, of which approximately 70% will be cash charges. In February 2018, HDFS issued $350.0 million of medium-term notes that mature in February 2023 and have an annual interest rate of 3.35% . |
Consolidated Valuation and Qual
Consolidated Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Consolidated Valuation And Qualifying Accounts | CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2017 , 2016 and 2015 (In thousands) 2017 2016 2015 Accounts receivable – allowance for doubtful accounts Balance, beginning of period $ 2,741 $ 2,905 $ 3,458 Provision charged to expense 1,328 (101 ) 266 Reserve adjustments 99 (63 ) (276 ) Write-offs, net of recoveries (77 ) — (543 ) Balance, end of period $ 4,091 $ 2,741 $ 2,905 Finance receivables – allowance for credit losses Balance, beginning of period $ 173,343 $ 147,178 $ 127,364 Provision for credit losses 132,444 136,617 101,345 Charge-offs, net of recoveries (113,316 ) (107,161 ) (81,531 ) Other (a) — (3,291 ) — Balance, end of period $ 192,471 $ 173,343 $ 147,178 Inventories – allowance for obsolescence (b) Balance, beginning of period $ 39,873 $ 26,740 $ 17,775 Provision charged to expense 16,940 21,137 19,564 Reserve adjustments 306 (88 ) (1,028 ) Write-offs, net of recoveries (18,450 ) (7,916 ) (9,571 ) Balance, end of period $ 38,669 $ 39,873 $ 26,740 Deferred tax assets – valuation allowance Balance, beginning of period $ 30,953 $ 20,659 $ 25,462 Adjustments (9,392 ) 10,294 (4,803 ) Balance, end of period $ 21,561 $ 30,953 $ 20,659 (a) Related to the sale of finance receivables during the second quarter of 2016 with a principal balance of $301.8 million through an off-balance sheet asset-backed securitization transaction (see Note 10 for additional information). (b) Inventory obsolescence reserves deducted from cost determined on first-in, first-out (FIFO) basis, before deductions for last-in, first-out (LIFO) valuation reserves. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Presentation | The consolidated financial statements include the accounts of Harley-Davidson, Inc. and its wholly-owned subsidiaries (the Company), including the accounts of the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). In addition, certain variable interest entities (VIEs) related to secured financing are consolidated as the Company is the primary beneficiary. All intercompany accounts and transactions are eliminated. All of the Company’s subsidiaries are wholly owned and are included in the consolidated financial statements. Substantially all of the Company’s international subsidiaries use their respective local currency as their functional currency. Assets and liabilities of international subsidiaries have been translated at period-end exchange rates, and revenues and expenses have been translated using average exchange rates for the period. Monetary assets and liabilities denominated in a currency that is different from an entity's functional currency are remeasured from the transactional currency to the entity's functional currency on a monthly basis. The effect of this remeasurement is reported in Motorcycle and Related Products cost of goods sold. |
Use of Estimates | The preparation of financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Marketable Securities | The Company’s available-for-sale securities were carried at fair value with any unrealized gains or losses reported in other comprehensive income. During 2017 and 2016, unrealized losses were not material. There were no available-for-sale securities outstanding at December 31, 2017 . The Company's trading securities relate to investments held by the Company to fund certain deferred compensation obligations. The trading securities are carried at fair value with gains and losses recorded in net income and investments are included in other long-term assets on the consolidated balance sheets. |
Accounts Receivable, Net | The Company’s motorcycles and related products are sold to independent dealers outside the U.S. and Canada generally on open account and the resulting receivables are included in accounts receivable in the Company’s consolidated balance sheets. The allowance for doubtful accounts deducted from total accounts receivable was $4.1 million and $2.7 million as of December 31, 2017 and 2016 , respectively. Accounts receivable are written down once management determines that the specific customer does not have the ability to repay the balance in full. The Company’s sales of motorcycles and related products in the U.S. and Canada are financed by the purchasing dealers through HDFS and the related receivables are included in finance receivables in the consolidated balance sheets. |
Finance Receivables, Net | Finance receivables include both retail and wholesale finance receivables, net, including amounts held by consolidated VIEs. Finance receivables are recorded in the financial statements at amortized cost net of an allowance for credit losses. The provision for credit losses on finance receivables is charged to earnings in amounts sufficient to maintain the allowance for credit losses at a level that is adequate to cover estimated losses of principal inherent in the existing portfolio. Portions of the allowance for credit losses are specified to cover estimated losses on finance receivables specifically identified for impairment. The unspecified portion of the allowance covers estimated losses on finance receivables which are collectively reviewed for impairment. Finance receivables are considered impaired when management determines it is probable that the Company will be unable to collect all amounts due according to the terms of the loan agreement. The retail portfolio primarily consists of a large number of small balance, homogeneous finance receivables. The Company performs a periodic and systematic collective evaluation of the adequacy of the retail allowance for credit losses. The Company utilizes loss forecast models which consider a variety of factors including, but not limited to, historical loss trends, origination or vintage analysis, known and inherent risks in the portfolio, the value of the underlying collateral, recovery rates and current economic conditions including items such as unemployment rates. Retail finance receivables are not evaluated individually for impairment prior to charge-off and therefore are not reported as impaired loans. The wholesale portfolio is primarily composed of large balance, non-homogeneous loans. The Company’s wholesale allowance evaluation is first based on a loan-by-loan review. A specific allowance for credit losses is established for wholesale finance receivables determined to be individually impaired when management concludes that the borrower will not be able to make full payment of contractual amounts due based on the original terms of the loan agreement. The impairment is determined based on the cash that the Company expects to receive discounted at the loan’s original interest rate or the fair value of the collateral, if the loan is collateral-dependent. Finance receivables in the wholesale portfolio that are not individually evaluated for impairment are segregated, based on similar risk characteristics, according to the Company’s internal risk rating system and collectively evaluated for impairment. The related allowance is based on factors such as the Company’s past loan loss experience, the specific borrower’s financial performance as well as ability to repay, current economic conditions as well as the value of the underlying collateral. Impaired finance receivables also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulty. Generally, it is the Company’s policy not to change the terms and conditions of finance receivables. However, to minimize the economic loss, the Company may modify certain impaired finance receivables in troubled debt restructurings. Total restructured finance receivables are not significant. Repossessed inventory representing recovered collateral on impaired finance receivables is recorded at the lower of cost or net realizable value. In the period during which the collateral is repossessed, the related finance receivable is adjusted to the fair value of the collateral through a charge to the allowance for credit losses and reclassified to repossessed inventory. |
Asset-Backed Financing | The Company participates in asset-backed financing both through asset-backed securitization transactions and through asset-backed commercial paper conduit facilities. In the Company's asset-backed financing programs, the Company transfers retail motorcycle finance receivables to special purpose entities (SPE), which are considered VIEs under U.S. GAAP. Each SPE then converts those assets into cash, through the issuance of debt. The Company retains servicing rights for all of the retail motorcycle finance receivables transferred to SPEs as part of an asset-backed financing. The accounting treatment for asset-backed financings depends on the terms of the related transaction and the Company’s continuing involvement with the VIE. In transactions where the Company has power over the significant activities of the VIE and has an obligation to absorb losses or the right to receive benefits from the VIE that are potentially significant to the VIE, the Company is the primary beneficiary of the VIE and consolidates the VIE within its consolidated financial statements. On a consolidated basis, the asset-backed financing is treated as a secured borrowing in this type of transaction and is referred to as an on-balance sheet asset-backed financing. In transactions where the Company is not the primary beneficiary of the VIE, the Company must determine whether it can achieve a sale for accounting purposes under ASC Topic 860, "Transfers and Servicing." To achieve a sale for accounting purposes, the assets being transferred must be legally isolated, not be constrained by restrictions from further transfer, and be deemed to be beyond the Company’s control. If the Company does not meet all these criteria for sale accounting, then the transaction is accounted for as a secured borrowing and is referred to as an on-balance sheet asset-backed financing. If the Company meets all three of the sale criteria above, the transaction is recorded as a sale for accounting purposes and is referred to as an off-balance sheet asset-backed financing. Upon sale, the retail motorcycle finance receivables are removed from the Company’s balance sheet and a gain or loss is recognized for the difference between the cash proceeds received, the assets derecognized, and the liabilities recognized as part of the transaction. The gain or loss on sale is included in Financial Services revenue in the Consolidated Statement of Income. The Company is not required, and does not currently intend, to provide any additional financial support to the on or off-balance sheet VIEs associated with these transactions. Investors and creditors in these transactions only have recourse to the assets held by the VIEs. |
Inventories | Substantially all inventories located in the United States are valued using the last-in, first-out (LIFO) method. Other inventories totaling $234.9 million at December 31, 2017 and $221.7 million at December 31, 2016 are valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. |
Property, Plant and Equipment | Property, plant and equipment is recorded at cost. Depreciation is determined on the straight-line basis over the estimated useful lives of the assets. The following useful lives are used to depreciate the various classes of property, plant and equipment: buildings – 30 years; building equipment and land improvements – 7 years; machinery and equipment – 3 to 10 years; furniture and fixtures – 5 years; and software – 3 to 7 years. Accelerated methods of depreciation are used for income tax purposes. |
Goodwill | Goodwill represents the excess of acquisition cost over the fair value of the net assets purchased. Goodwill is tested for impairment, based on financial data related to the reporting unit to which it has been assigned, at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The impairment test involves comparing the estimated fair value of the reporting unit associated with the goodwill to its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, goodwill must be adjusted to its implied fair value. |
Long-lived Assets | The Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such review. If the carrying value of a long-lived asset is considered impaired, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset for assets to be held and used. The Company also reviews the useful life of its long-lived assets when events and circumstances indicate that the actual useful life may be shorter than originally estimated. In the event that the actual useful life is deemed to be shorter than the original useful life, depreciation is adjusted prospectively so that the remaining book value is depreciated over the revised useful life. Asset groups classified as held for sale are measured at the lower of carrying amount or fair value less cost to sell, and a loss is recognized for any initial adjustment required to reduce the carrying amount to the fair value less cost to sell in the period the held for sale criteria are met. The fair value less cost to sell must be assessed each reporting period the asset group remains classified as held for sale. Gains or losses not previously recognized resulting from the sale of an asset group will be recognized on the date of sale. |
Product Warranty and Recall Campaigns | The Company currently provides a standard two -year limited warranty on all new motorcycles sold worldwide, except for Japan, where the Company provides a standard three -year limited warranty on all new motorcycles sold. In addition, the Company offers a one -year warranty for Parts & Accessories (P&A). The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company accrues for future warranty claims using an estimated cost based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary recall campaigns. The Company accrues for the estimated cost associated with voluntary recalls in the period that management approves and commits to the recall. |
Derivative Financial Instruments | The Company is exposed to certain risks such as foreign currency exchange rate risk, interest rate risk and commodity price risk. To reduce its exposure to such risks, the Company selectively uses derivative financial instruments. All derivative transactions are authorized and executed pursuant to regularly reviewed policies and procedures, which prohibit the use of financial instruments for speculative trading purposes. All derivative instruments are recognized on the balance sheet at fair value (see Note 6). In accordance with ASC Topic 815, “Derivatives and Hedging,” the accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. Changes in the fair value of derivatives that are designated as fair value hedges, along with the gain or loss on the hedged item, are recorded in current period earnings. For derivative instruments that are designated as cash flow hedges, the effective portion of gains and losses that result from changes in the fair value of derivative instruments is initially recorded in other comprehensive income (OCI) and subsequently reclassified into earnings when the hedged item affects income. The Company assesses, at both the inception of each hedge and on an on-going basis, whether the derivatives that are used in its hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. Any ineffective portion is immediately recognized in earnings. No component of a hedging derivative instrument’s gain or loss is excluded from the assessment of hedge effectiveness. Derivative instruments that do not qualify for hedge accounting are recorded at fair value and any changes in fair value are recorded in current period earnings. |
Revenue Recognition | Motorcycles and Related Products Revenue Recognition – Sales are recorded when title and ownership is transferred, which is generally when products are shipped to wholesale customers (independent dealers). The Company may offer sales incentive programs to both wholesale and retail customers designed to promote the sale of motorcycles and related products. The total costs of these programs are generally recognized as revenue reductions and are accrued at the later of the date the related sales are recorded or the date the incentive program is both approved and communicated. Financial Services Revenue Recognition – Interest income on finance receivables is recorded as earned and is based on the average outstanding daily balance for wholesale and retail receivables. Accrued and uncollected interest is classified with finance receivables. Certain loan origination costs related to finance receivables, including payments made to dealers for certain retail loans, are deferred and recorded within finance receivables, and amortized over the estimated life of the contract. Retail finance receivables are contractually delinquent if the minimum payment is not received by the specified due date. Retail finance receivables are generally charged-off when the receivable is 120 days or more delinquent, the related asset is repossessed or the receivable is otherwise deemed uncollectible. All retail finance receivables accrue interest until either collected or charged-off. Accordingly, as of December 31, 2017 and 2016 , all retail finance receivables are accounted for as interest-earning receivables. Wholesale finance receivables are delinquent if the minimum payment is not received by the contractual due date. Wholesale finance receivables are written down once management determines that the specific borrower does not have the ability to repay the loan in full. Interest continues to accrue on past due finance receivables until the date the finance receivable becomes uncollectible and the finance receivable is placed on non-accrual status. The Company will resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. While on non-accrual status, all cash received is applied to principal or interest as appropriate. Insurance and protection product revenue, including revenue from the sale of extended service contracts, is recognized when contractually earned. |
Research and Development Expenses | Expenditures for research activities relating to product development and improvement are charged against income as incurred and included within selling, administrative and engineering expenses in the consolidated statement of income. |
Advertising Costs | The Company expenses the production cost of advertising the first time the advertising takes place. Advertising costs relate to the Company’s efforts to promote its products and brands through the use of media. |
Shipping and Handling Costs | The Company classifies shipping and handling costs as a component of cost of goods sold. |
Share-Based Award Compensation Costs | The Company recognizes the cost of its share-based awards in its statement of income. The cost of each share-based equity award is based on the grant date fair value and the cost of each share-based cash-settled award is based on the settlement date fair value. Share-based award expense is recognized on a straight-line basis over the service or performance periods of the awards. The expense recognized reflects the number of awards that are ultimately expected to vest based on the service and, if applicable, performance requirements of each award. |
Income Tax Expense | The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. |
New Accounting Standards | Accounting Standards Recently Adopted In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09 Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). ASU 2016-09 amends the guidance on several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, accounting for forfeitures, and classification on the statement of cash flows. The Company adopted ASU 2016-09 on January 1, 2017. The Company elected to apply the amendments related to the classification of excess tax benefits on the statement of cash flows on a prospective basis, and prior periods were not adjusted. The adoption of ASU 2016-09 did not have a material impact on the Company's consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11 Inventory (Topic 330): Simplifying the Measurement of Inventory (ASU 2015-11). ASU 2015-11 simplifies the subsequent measurement of inventory by using only the lower of cost or net realizable value. ASU 2015-11 does not apply to inventory measured using the last-in, first-out method. The Company adopted ASU 2015-11 on January 1, 2017. The adoption of ASU 2015-11 did not have a material impact on the Company’s consolidated financial statements. Accounting Standards Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09 Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14 Revenue from Contracts with Customers: Deferral of Effective Date (ASU 2015-14) to defer the effective date of the new revenue recognition standard by one year to fiscal years beginning after December 15, 2017 and interim periods therein. The Company will adopt the new revenue recognition guidance on January 1, 2018 using the modified retrospective method by recording the cumulative effect of initially applying the new standard as an increase of approximately $6 million to the opening balance of retained earnings. The on-going application of the new guidance is not expected to have a material impact on the Company's financial statements. In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). ASU 2016-01 enhances the existing financial instruments reporting model by modifying fair value measurement tools, simplifying impairment assessments for certain equity instruments and modifying overall presentation and disclosure requirements. The Company is required to adopt ASU 2016-01 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017 on a prospective basis. The Company does not expect the adoption of ASU 2016-01 to have a material impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) (ASU 2016-02). ASU 2016-02 amends the existing lease accounting model by requiring a lessee to recognize the rights and obligations resulting from certain leases as assets and liabilities on the balance sheet. ASU 2016-02 also requires a company to disclose key information about their leasing arrangements. The Company is required to adopt ASU 2016-02 for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 using a modified retrospective approach. Early adoption is permitted. The Company is currently in the process of gathering and analyzing information necessary to quantify the impact of adopting ASU 2016-02 and evaluating the transition practical expedients it will apply upon adoption. In July 2016, the FASB issued ASU No. 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 changes how to recognize expected credit losses on financial assets. The standard requires a more timely recognition of credit losses on loans and other financial assets and also provides additional transparency about credit risk. The current credit loss standard generally requires that a loss actually be incurred before it is recognized, while the new standard will require recognition of full lifetime expected losses upon initial recognition of the financial instrument. The Company is required to adopt ASU 2016-13 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019 on a modified retrospective basis. Early adoption is permitted for fiscal years beginning after December 15, 2018. An entity should apply the standard by recording a cumulative effect adjustment to retained earnings upon adoption. Adoption of this standard will impact how the Company recognizes credit losses on its financial instruments. The Company is currently evaluating the impact of adoption of ASU 2016-13 but anticipates the adoption of ASU 2016-13 will result in an increase in the annual provision for credit losses and the related allowance for credit losses. In August 2016, the FASB issued ASU No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing diversity in practice regarding how certain cash receipts and cash payments are presented in the statement of cash flows. The standard provides guidance on the classification of the following items: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from the settlement of corporate-owned life insurance policies, (6) distributions received from equity method investments, (7) beneficial interests in securitization transactions, and (8) separately identifiable cash flows. The Company is required to adopt ASU 2016-15 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017 on a retrospective basis. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-15 to have a material impact on its financial statements. In October 2016, the FASB issued ASU No. 2016-16 Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16). ASU 2016-16 states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Two common assets included in the scope of the ASU are intellectual property and property, plant and equipment. The Company is required to adopt ASU 2016-16 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017 using a modified retrospective approach with a cumulative-effect adjustment to retained earnings. The Company does not expect the adoption of ASU 2016-16 to have a material impact on its financial statements. In November 2016, the FASB issued ASU No. 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As such, restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company is required to adopt ASU 2016-18 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017 on a retrospective basis. Early adoption is permitted, including adoption in an interim period. Subsequent to the adoption of ASU 2016-18, the change in restricted cash will be excluded from financing activities and included in the change in total cash which will include restricted cash in addition to cash and cash equivalents. In January 2017, the FASB issued ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the requirement to calculate the implied fair value of goodwill. Rather, the goodwill impairment is calculated by comparing the fair value of a reporting unit to its carrying value, and an impairment loss is recognized for the amount by which the carrying amount exceeds the fair value, limited to the total goodwill allocated to the reporting unit. All reporting units apply the same impairment test under the new standard. The Company is required to adopt ASU 2017-04 for its annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In March 2017, the FASB issued ASU No. 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07). ASU 2017-07 amends ASC 715, Compensation - Retirement Benefits by requiring employers to present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Other components of the net periodic benefit cost will be presented separately from the line item that includes the service cost and outside of any subtotal of operating income. The guidance also limits the components that are eligible for capitalization in assets. The Company is required to adopt ASU 2017-07 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period for which interim or annual financial statements have not been issued or made available for issuance. The amendments related to the presentation of the components of net periodic benefit cost should be applied retrospectively. The amendments related to the capitalization of certain components in assets should be applied prospectively. The Company's net periodic benefit cost components are disclosed in Note 12. In August 2017, the FASB issued ASU No. 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). ASU 2017-12 amends ASC 815, Derivatives and Hedging to improve the financial reporting of hedging relationships and to simplify the application of the hedge accounting guidance. The ASU makes various updates to the hedge accounting model, including changing the recognition and presentation of changes in the fair value of the hedging instrument and amending disclosure requirements, among other things. The Company is required to adopt ASU 2017-12 for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance of the ASU. For cash flow and net investment hedges existing at the date of adoption, the Company must apply a cumulative-effect adjustment as of the beginning of the fiscal year in which the standard is adopted. The amendments related to presentation and disclosure are required prospectively. The Company is currently evaluating the impact of adoption of ASU 2017-12. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02). Under existing U.S. GAAP, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in accumulated other comprehensive income are adjusted, certain tax effects become stranded in accumulated other comprehensive income. The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act. The amendments in this ASU also require certain disclosures about stranded tax effects. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption in any period is permitted. The Company’s provisional adjustments recorded in 2017 to account for the impact of the 2017 Tax Cuts and Jobs Act resulted in stranded tax effects. The Company is currently evaluating the timing and impact of adopting ASU 2018-02. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Marketable Securities | Marketable Securities – The Company’s marketable securities consisted of the following at December 31 (in thousands): 2017 2016 Available-for-sale securities: corporate bonds $ — $ 5,519 Trading securities: mutual funds 48,006 38,119 Total marketable securities $ 48,006 $ 43,638 |
Changes In Warranty And Safety Recall Liability | Changes in the Company’s warranty and recall liability were as follows (in thousands): 2017 2016 2015 Balance, beginning of period $ 79,482 $ 74,217 $ 69,250 Warranties issued during the period 57,834 60,215 59,259 Settlements made during the period (82,554 ) (99,298 ) (96,529 ) Recalls and changes to pre-existing warranty liabilities 39,438 44,348 42,237 Balance, end of period $ 94,200 $ 79,482 $ 74,217 |
Additional Balance Sheet and 32
Additional Balance Sheet and Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventories, Net | Inventories, net (in thousands): 2017 2016 Raw materials and work in process $ 161,664 $ 140,639 Motorcycle finished goods 289,530 285,281 Parts and accessories and general merchandise 139,363 122,264 Inventory at lower of FIFO cost or net realizable value 590,557 548,184 Excess of FIFO over LIFO cost (52,355 ) (48,267 ) Total inventories, net $ 538,202 $ 499,917 |
Property, Plant And Equipment, At Cost | Property, plant and equipment, at cost (in thousands): 2017 2016 Land and related improvements $ 70,256 $ 65,533 Buildings and related improvements 464,454 464,200 Machinery and equipment 1,890,126 1,887,269 Software 660,090 630,114 Construction in progress 200,396 214,409 3,285,322 3,261,525 Accumulated depreciation (2,317,541 ) (2,279,932 ) Total property, plant and equipment, net $ 967,781 $ 981,593 |
Accrued Liabilities | Accrued liabilities (in thousands): 2017 2016 Payroll, employee benefits and related expenses $ 124,093 $ 148,221 Warranty and recalls 75,089 57,698 Sales incentive programs 48,309 43,218 Tax-related accruals 25,944 26,140 Fair value of derivative financial instruments 21,308 142 Accrued interest 40,347 42,788 Other 194,732 168,445 Total accrued liabilities $ 529,822 $ 486,652 |
Schedule of Cash Flow, Supplemental Disclosures | The reconciliation of net income to net cash provided by operating activities of continuing operations is as follows (in thousands): 2017 2016 2015 Cash flows from operating activities: Net income $ 521,759 $ 692,164 $ 752,207 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 222,188 209,555 198,074 Amortization of deferred loan origination costs 82,911 86,681 93,546 Amortization of financing origination fees 8,045 9,252 9,975 Provision for long-term employee benefits 29,900 38,273 60,824 Employee benefit plan contributions and payments (63,277 ) (55,809 ) (28,490 ) Stock compensation expense 32,491 32,336 29,433 Net change in wholesale finance receivables related to sales 35,172 (3,233 ) (113,970 ) Provision for credit losses 132,444 136,617 101,345 Gain on off-balance sheet asset-backed securitization — (9,269 ) — Loss on debt extinguishment — 118 1,099 Deferred income taxes 50,855 (165 ) (16,484 ) Other, net 8,559 (6,907 ) 20,913 Changes in current assets and liabilities: Accounts receivable, net (18,149 ) (45,934 ) (13,665 ) Finance receivables – accrued interest and other (1,313 ) (1,489 ) (3,046 ) Inventories (20,584 ) 85,072 (155,222 ) Accounts payable and accrued liabilities 10,128 38,237 138,823 Derivative instruments 1,866 (3,413 ) (5,615 ) Other (27,934 ) (27,747 ) 30,371 Total adjustments 483,302 482,175 347,911 Net cash provided by operating activities $ 1,005,061 $ 1,174,339 $ 1,100,118 Cash paid during the period for interest and income taxes (in thousands): 2017 2016 2015 Interest $ 204,866 $ 185,804 $ 148,654 Income taxes $ 300,113 $ 356,553 $ 371,547 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the Deeley Imports assets acquired and liabilities assumed at the date of acquisition (in thousands): August 4, 2015 Current assets $ 11,088 Property, plant and equipment 144 Intangible assets 20,842 Goodwill 28,567 Total assets 60,641 Current liabilities 731 Net assets acquired $ 59,910 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes changes in the carrying amount of goodwill in the Motorcycles segment for the following years ended December 31 (in thousands): 2017 2016 2015 Balance, beginning of period $ 53,391 $ 54,182 $ 27,752 Business acquisitions — — 28,567 Currency translation 2,556 (791 ) (2,137 ) Balance, end of period $ 55,947 $ 53,391 $ 54,182 |
Schedule of Finite-Lived Intangible Assets Other than Goodwill | The following table summarizes the Motorcycles segment intangible assets other than goodwill at December 31 (in thousands): 2017 Gross Carrying Amount Accumulated Amortization Net Estimated useful life (years) Intangible assets other than goodwill Reacquired distribution rights $ 13,933 $ (13,933 ) $ — 2 Customer relationships 7,860 (950 ) 6,910 20 Total other intangible assets $ 21,793 $ (14,883 ) $ 6,910 2016 Gross Carrying Amount Accumulated Amortization Net Estimated useful life (years) Intangible assets other than goodwill Reacquired distribution rights $ 12,928 $ (9,157 ) $ 3,771 2 Customer relationships 7,293 (517 ) 6,776 20 Total other intangible assets $ 20,221 $ (9,674 ) $ 10,547 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The Company estimates future amortization to be as follows (in thousands): Estimated Amortization 2018 $ 384 2019 384 2020 384 2021 384 2022 384 Thereafter 4,990 Total $ 6,910 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Finance Receivables | Finance receivables, net at December 31 for the past five years were as follows (in thousands): 2017 2016 2015 2014 2013 Wholesale United States $ 939,621 $ 961,150 $ 965,379 $ 903,380 $ 800,491 Canada 77,336 65,440 58,481 48,941 44,721 Total wholesale 1,016,957 1,026,590 1,023,860 952,321 845,212 Retail United States 5,901,002 5,769,410 5,803,071 5,398,006 5,051,245 Canada 239,598 212,801 188,400 209,918 213,799 Total retail 6,140,600 5,982,211 5,991,471 5,607,924 5,265,044 7,157,557 7,008,801 7,015,331 6,560,245 6,110,256 Allowance for credit losses (192,471 ) (173,343 ) (147,178 ) (127,364 ) (110,693 ) Total finance receivables, net $ 6,965,086 $ 6,835,458 $ 6,868,153 $ 6,432,881 $ 5,999,563 |
Contractual Maturities Of Finance Receivables | On December 31, 2017 , contractual maturities of finance receivables were as follows (in thousands): United States Canada Total 2018 $ 2,018,646 $ 126,345 $ 2,144,991 2019 1,160,372 51,764 1,212,136 2020 1,251,444 56,173 1,307,617 2021 1,250,821 60,957 1,311,778 2022 1,144,281 21,695 1,165,976 Thereafter 15,059 — 15,059 Total $ 6,840,623 $ 316,934 $ 7,157,557 |
Changes In The Allowance For Finance Credit Losses On Finance Receivables | Changes in the allowance for credit losses on finance receivables by portfolio for the year ended December 31 were as follows (in thousands): 2017 Retail Wholesale Total Balance, beginning of period $ 166,810 $ 6,533 $ 173,343 Provision for credit losses 132,760 (316 ) 132,444 Charge-offs (160,972 ) — (160,972 ) Recoveries 47,656 — 47,656 Balance, end of period $ 186,254 $ 6,217 $ 192,471 2016 Retail Wholesale Total Balance, beginning of period $ 139,320 $ 7,858 $ 147,178 Provision for credit losses 137,942 (1,325 ) 136,617 Charge-offs (148,566 ) — (148,566 ) Recoveries 41,405 — 41,405 Other (a) (3,291 ) — (3,291 ) Balance, end of period $ 166,810 $ 6,533 $ 173,343 2015 Retail Wholesale Total Balance, beginning of period $ 122,025 $ 5,339 $ 127,364 Provision for credit losses 98,826 2,519 101,345 Charge-offs (123,911 ) — (123,911 ) Recoveries 42,380 — 42,380 Balance, end of period $ 139,320 $ 7,858 $ 147,178 (a) Related to the sale of finance receivables during the second quarter of 2016 with a principal balance of $301.8 million through an off-balance sheet asset-backed securitization transaction (see Note 10 for additional information). There were no finance receivables individually evaluated for impairment on December 31, 2017 or 2016 . The allowance for credit losses and finance receivables by portfolio, collectively evaluated for impairment, at December 31 was as follows (in thousands): 2017 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 186,254 6,217 192,471 Total allowance for credit losses $ 186,254 $ 6,217 $ 192,471 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 6,140,600 1,016,957 7,157,557 Total finance receivables $ 6,140,600 $ 1,016,957 $ 7,157,557 2016 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 166,810 6,533 173,343 Total allowance for credit losses $ 166,810 $ 6,533 $ 173,343 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 5,982,211 1,026,590 7,008,801 Total finance receivables $ 5,982,211 $ 1,026,590 $ 7,008,801 |
Past Due Financing Receivables | An analysis of the aging of past due finance receivables at December 31 was as follows (in thousands): 2017 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Total Finance Receivables Retail $ 5,913,473 $ 139,629 $ 47,539 $ 39,959 $ 227,127 $ 6,140,600 Wholesale 1,016,000 595 245 117 957 1,016,957 Total $ 6,929,473 $ 140,224 $ 47,784 $ 40,076 $ 228,084 $ 7,157,557 2016 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Total Finance Receivables Retail $ 5,760,818 $ 131,302 $ 49,642 $ 40,449 $ 221,393 $ 5,982,211 Wholesale 1,024,995 1,000 319 276 1,595 1,026,590 Total $ 6,785,813 $ 132,302 $ 49,961 $ 40,725 $ 222,988 $ 7,008,801 The recorded investment of retail and wholesale finance receivables, excluding non-accrual status finance receivables, that were contractually past due 90 days or more at December 31 for the past five years was as follows (in thousands): 2017 2016 2015 2014 2013 United States $ 39,051 $ 39,399 $ 31,677 $ 27,800 $ 23,770 Canada 1,025 1,326 1,192 1,118 1,031 Total $ 40,076 $ 40,725 $ 32,869 $ 28,918 $ 24,801 |
Financing Receivable Credit Quality Indicators | The recorded investment of retail finance receivables, by credit quality indicator, at December 31 was as follows (in thousands): 2017 2016 Prime $ 4,966,193 $ 4,768,420 Sub-prime 1,174,407 1,213,791 Total $ 6,140,600 $ 5,982,211 The recorded investment of wholesale finance receivables, by internal credit quality indicator, at December 31 was as follows (in thousands): 2017 2016 Doubtful $ 688 $ 1,333 Substandard 3,837 1,773 Special Mention 26,866 30,152 Medium Risk 9,917 14,620 Low Risk 975,649 978,712 Total $ 1,016,957 $ 1,026,590 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31 (in thousands): 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 488,432 $ 358,500 $ 129,932 $ — Marketable securities 48,006 48,006 — — Derivatives 1,769 — 1,769 — Total $ 538,207 $ 406,506 $ 131,701 $ — Liabilities: Derivatives $ 21,308 $ — $ 21,308 $ — 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 531,519 $ 426,266 $ 105,253 $ — Marketable securities 43,638 38,119 5,519 — Derivatives 29,034 — 29,034 — Total $ 604,191 $ 464,385 $ 139,806 $ — Liabilities: Derivatives $ 142 $ — $ 142 $ — |
Summary Of The Fair Value And Carrying Value Of The Company's Financial Instruments | The following table summarizes the fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost at December 31 (in thousands): 2017 2016 Fair Value Carrying Value Fair Value Carrying Value Assets: Finance receivables, net $ 7,021,549 $ 6,965,086 $ 6,921,037 $ 6,835,458 Liabilities: Unsecured commercial paper $ 1,273,482 $ 1,273,482 $ 1,055,708 $ 1,055,708 Asset-backed U.S. commercial paper conduit facilities $ 279,457 $ 279,457 $ — $ — Asset-backed Canadian commercial paper conduit facility $ 174,779 $ 174,779 $ 149,338 $ 149,338 Medium-term notes $ 4,189,092 $ 4,165,706 $ 4,139,462 $ 4,064,940 Senior unsecured notes $ 784,433 $ 741,961 $ 744,552 $ 741,306 Asset-backed securitization debt $ 351,767 $ 352,624 $ 797,688 $ 796,275 |
Derivative Instruments and He37
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instrument Fair Value | The following tables summarize the fair value of the Company’s derivative financial instruments at December 31 (in thousands): 2017 2016 Derivatives Designated As Hedging Instruments Under ASC Topic 815 Notional Value Asset Fair Value (a) Liability Fair Value (b) Notional Value Asset Fair Value (a) Liability Fair Value (b) Foreign currency contracts (c) $ 675,724 $ 1,388 $ 21,239 $ 554,551 $ 28,528 $ 142 Commodities contracts (c) 915 — 69 992 177 — Total $ 676,639 $ 1,388 $ 21,308 $ 555,543 $ 28,705 $ 142 2017 2016 Derivatives Not Designated As Hedging Instruments Under ASC Topic 815 Notional Value Asset Fair Value (a) Liability Fair Value (b) Notional Value Asset Fair Value (a) Liability Fair Value (b) Commodities contracts $ 4,532 $ 381 $ — $ 5,025 $ 329 $ — Total $ 4,532 $ 381 $ — $ 5,025 $ 329 $ — (a) Included in other current assets (b) Included in accrued liabilities (c) Derivative designated as a cash flow hedge |
Gain/(Loss) On Derivative Cash Flow Hedges Reclassified From AOCI Into Income | The following tables summarize the amount of gains and losses for the following years ended December 31 related to derivative financial instruments designated as cash flow hedges (in thousands): Amount of Gain/(Loss) Recognized in OCI, before tax Cash Flow Hedges 2017 2016 2015 Foreign currency contracts $ (53,964 ) $ 28,099 $ 45,810 Commodities contracts (246 ) 77 (421 ) Treasury rate locks (719 ) — (7,381 ) Total $ (54,929 ) $ 28,176 $ 38,008 Amount of Gain/(Loss) Reclassified from AOCL into Income Cash Flow Hedges 2017 2016 2015 Expected to be Reclassified Over the Next Twelve Months Foreign currency contracts (a) $ (7,202 ) $ 18,253 $ 59,730 $ (20,178 ) Commodities contracts (a) — (258 ) (677 ) (69 ) Treasury rate locks (b) (442 ) (362 ) (151 ) (506 ) Total $ (7,644 ) $ 17,633 $ 58,902 $ (20,753 ) (a) Gain/(loss) reclassified from accumulated other comprehensive loss (AOCL) to income is included in cost of goods sold (b) Gain/(loss) reclassified from AOCL to income is included in interest expense |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table summarizes the amount of gains and losses for the years ended December 31 related to derivative financial instruments not designated as hedging instruments (in thousands): Amount of Gain/(Loss) Recognized in Income on Derivative Derivatives not Designated as Hedges 2017 2016 2015 Commodities contracts (a) $ 503 $ 167 $ (648 ) Total $ 503 $ 167 $ (648 ) (a) Gain/(loss) recognized in income is included in cost of goods sold |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table sets forth the changes in accumulated other comprehensive loss (AOCL) for the years ended December 31 (in thousands): 2017 Foreign currency translation adjustments Marketable securities Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (68,132 ) $ (1,194 ) $ 12,524 $ (508,579 ) $ (565,381 ) Other comprehensive income (loss) before reclassifications 52,145 1,896 (54,929 ) 24,321 23,433 Income tax (5,865 ) (702 ) 20,338 (5,711 ) 8,060 Net other comprehensive income (loss) before reclassifications 46,280 1,194 (34,591 ) 18,610 31,493 Reclassifications: Realized (gains) losses - foreign currency contracts (a) — — 7,202 — 7,202 Realized (gains) losses - treasury rate locks (b) — — 442 — 442 Prior service credits (c) — — — (1,153 ) (1,153 ) Actuarial losses (c) — — — 47,254 47,254 Total before tax — — 7,644 46,101 53,745 Income tax benefit — — (2,831 ) (17,075 ) (19,906 ) Net reclassifications — — 4,813 29,026 33,839 Other comprehensive income (loss) 46,280 1,194 (29,778 ) 47,636 65,332 Balance, end of period $ (21,852 ) $ — $ (17,254 ) $ (460,943 ) $ (500,049 ) 2016 Foreign currency translation adjustments Marketable securities Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (58,844 ) $ (1,094 ) $ 5,886 $ (561,153 ) $ (615,205 ) Other comprehensive (loss) income before reclassifications (7,591 ) (159 ) 28,176 33,937 54,363 Income tax (1,697 ) 59 (10,436 ) (12,570 ) (24,644 ) Net other comprehensive (loss) income before reclassifications (9,288 ) (100 ) 17,740 21,367 29,719 Reclassifications: Realized (gains) losses - foreign currency contracts (a) — — (18,253 ) — (18,253 ) Realized (gains) losses - commodities contracts (a) — — 258 — 258 Realized (gains) losses - treasury rate lock (b) — — 362 — 362 Prior service credits (c) — — — (1,784 ) (1,784 ) Actuarial losses (c) — — — 49,888 49,888 Curtailment and settlement losses (c) — — — 1,463 1,463 Total before tax — — (17,633 ) 49,567 31,934 Income tax expense (benefit) — — 6,531 (18,360 ) (11,829 ) Net reclassifications — — (11,102 ) 31,207 20,105 Other comprehensive (loss) income (9,288 ) (100 ) 6,638 52,574 49,824 Balance, end of period $ (68,132 ) $ (1,194 ) $ 12,524 $ (508,579 ) $ (565,381 ) 2015 Foreign currency translation adjustments Marketable securities Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (3,482 ) $ (700 ) $ 19,042 $ (529,803 ) $ (514,943 ) Other comprehensive (loss) income before reclassifications (48,309 ) (626 ) 38,008 (106,059 ) (116,986 ) Income tax (7,053 ) 232 (14,079 ) 39,284 18,384 Net other comprehensive (loss) income before reclassifications (55,362 ) (394 ) 23,929 (66,775 ) (98,602 ) Reclassifications: Realized (gains) losses - foreign currency contracts (a) — — (59,730 ) — (59,730 ) Realized (gains) losses - commodities contracts (a) — — 677 — 677 Realized (gains) losses - treasury rate lock (b) — — 151 — 151 Prior service credits (c) — — — (2,782 ) (2,782 ) Actuarial losses (c) — — — 58,680 58,680 Curtailment and settlement losses (c) — — — 368 368 Total before tax — — (58,902 ) 56,266 (2,636 ) Income tax expense (benefit) — — 21,817 (20,841 ) 976 Net reclassifications — — (37,085 ) 35,425 (1,660 ) Other comprehensive loss (55,362 ) (394 ) (13,156 ) (31,350 ) (100,262 ) Balance, end of period $ (58,844 ) $ (1,094 ) $ 5,886 $ (561,153 ) $ (615,205 ) (a) Amounts reclassified to net income are included in Motorcycles and Related Products cost of goods sold. (b) Amounts reclassified to net income are presented in interest expense. (c) Amounts reclassified are included in the computation of net periodic benefit cost. See Note 12 for information related to pension and postretirement benefit plans. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt With Contractual Term Less Than One Year | Debt with a contractual term less than one year is generally classified as short-term debt and consisted of the following as of December 31 (in thousands): 2017 2016 Unsecured commercial paper $ 1,273,482 $ 1,055,708 Total short-term debt $ 1,273,482 $ 1,055,708 |
Debt With A Contractual Term Greater Than One Year | Debt with a contractual term greater than one year is generally classified as long-term debt and consisted of the following as of December 31 (in thousands): 2017 2016 Secured debt (Note 10) Asset-backed Canadian commercial paper conduit facility $ 174,779 $ 149,338 Asset-backed U.S. commercial paper conduit facilities 279,457 — Asset-backed securitization debt 353,085 797,755 Less: unamortized discount and debt issuance costs (461 ) (1,480 ) Total secured debt 806,860 945,613 Unsecured notes (at par value) 2.70% Medium-term notes due in 2017, issued January 2012 — 400,000 1.55% Medium-term notes due in 2017, issued November 2014 — 400,000 6.80% Medium-term notes due in 2018, issued May 2008 877,488 877,488 2.25% Medium-term notes due in 2019, issued January 2016 600,000 600,000 Floating-rate Medium-term notes due in 2019, issued March 2017 (a) 150,000 — 2.40% Medium-term notes due in 2019, issued September 2014 600,000 600,000 2.15% Medium-term notes due in 2020, issued February 2015 600,000 600,000 2.40% Medium-term notes due in 2020, issued March 2017 350,000 — 2.85% Medium-term notes due in 2021, issued January 2016 600,000 600,000 2.55% Medium-term notes due in 2022, issued June 2017 400,000 — 3.50% Senior unsecured notes due in 2025, issued July 2015 450,000 450,000 4.625% Senior unsecured notes due in 2045, issued July 2015 300,000 300,000 Less: unamortized discount and debt issuance costs (19,821 ) (21,242 ) Gross long-term debt 5,714,527 5,751,859 Less: current portion of long-term debt, net of unamortized discount and issuance costs (1,127,269 ) (1,084,884 ) Total long-term debt $ 4,587,258 $ 4,666,975 At December 31, 2017 , the Company's consolidated balance sheet included outstanding balances related to the following secured notes with the related maturity dates and interest rates (in thousands): Issue Date Principal Amount at Date of Issuance Weighted-Average Rate at Date of Issuance Contractual Maturity Date May 2015 $500,000 0.88% May 2016 - December 2022 January 2015 $700,000 0.89% February 2016 - August 2022 April 2014 $850,000 0.66% April 2015 - October 2021 In addition, outstanding balances related to the following secured notes included in the Company's consolidated balance sheet at December 31, 2016 were repaid during 2017 (in thousands): Issue Date Principal Amount at Date of Issuance Weighted-Average Rate at Date of Issuance Contractual Maturity Date April 2013 $650,000 0.57% May 2014 - December 2020 |
Schedule of Maturities of Long-term Debt | A summary of the Company’s expected principal payments for debt obligations as of December 31, 2017 is as follows (in thousands): 2018 $ 2,405,569 2019 1,594,518 2020 1,098,489 2021 721,705 2022 438,010 Thereafter 750,000 Total $ 7,008,291 |
Asset-Backed Financing (Tables)
Asset-Backed Financing (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Schedule Of Assets And Liabilities Of Variable Interest Entities | The following table shows the assets and liabilities related to the on-balance sheet asset-backed financings included in the financial statements at December 31 (in thousands): 2017 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 $ 439,301 $ (13,686 ) $ 34,919 $ 1,260 $ 461,794 $ 352,624 Asset-backed U.S. commercial paper conduit facilities 300,530 (9,392 ) 13,787 888 305,813 279,457 Unconsolidated VIEs Asset-backed Canadian commercial paper conduit facility 203,691 (3,746 ) 9,983 470 210,398 174,779 Total on-balance sheet assets and liabilities $ 943,522 $ (26,824 ) $ 58,689 $ 2,618 $ 978,005 $ 806,860 2016 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 $ 893,804 $ (25,468 ) $ 57,057 $ 2,452 $ 927,845 $ 796,275 Asset-backed U.S. commercial paper conduit facilities — — — 329 329 — Unconsolidated VIEs Asset-backed Canadian commercial paper conduit facility 165,719 (3,573 ) 10,090 426 172,662 149,338 Total on-balance sheet assets and liabilities $ 1,059,523 $ (29,041 ) $ 67,147 $ 3,207 $ 1,100,836 $ 945,613 |
Schedule Of Secured Notes With Related Maturity | Debt with a contractual term greater than one year is generally classified as long-term debt and consisted of the following as of December 31 (in thousands): 2017 2016 Secured debt (Note 10) Asset-backed Canadian commercial paper conduit facility $ 174,779 $ 149,338 Asset-backed U.S. commercial paper conduit facilities 279,457 — Asset-backed securitization debt 353,085 797,755 Less: unamortized discount and debt issuance costs (461 ) (1,480 ) Total secured debt 806,860 945,613 Unsecured notes (at par value) 2.70% Medium-term notes due in 2017, issued January 2012 — 400,000 1.55% Medium-term notes due in 2017, issued November 2014 — 400,000 6.80% Medium-term notes due in 2018, issued May 2008 877,488 877,488 2.25% Medium-term notes due in 2019, issued January 2016 600,000 600,000 Floating-rate Medium-term notes due in 2019, issued March 2017 (a) 150,000 — 2.40% Medium-term notes due in 2019, issued September 2014 600,000 600,000 2.15% Medium-term notes due in 2020, issued February 2015 600,000 600,000 2.40% Medium-term notes due in 2020, issued March 2017 350,000 — 2.85% Medium-term notes due in 2021, issued January 2016 600,000 600,000 2.55% Medium-term notes due in 2022, issued June 2017 400,000 — 3.50% Senior unsecured notes due in 2025, issued July 2015 450,000 450,000 4.625% Senior unsecured notes due in 2045, issued July 2015 300,000 300,000 Less: unamortized discount and debt issuance costs (19,821 ) (21,242 ) Gross long-term debt 5,714,527 5,751,859 Less: current portion of long-term debt, net of unamortized discount and issuance costs (1,127,269 ) (1,084,884 ) Total long-term debt $ 4,587,258 $ 4,666,975 At December 31, 2017 , the Company's consolidated balance sheet included outstanding balances related to the following secured notes with the related maturity dates and interest rates (in thousands): Issue Date Principal Amount at Date of Issuance Weighted-Average Rate at Date of Issuance Contractual Maturity Date May 2015 $500,000 0.88% May 2016 - December 2022 January 2015 $700,000 0.89% February 2016 - August 2022 April 2014 $850,000 0.66% April 2015 - October 2021 In addition, outstanding balances related to the following secured notes included in the Company's consolidated balance sheet at December 31, 2016 were repaid during 2017 (in thousands): Issue Date Principal Amount at Date of Issuance Weighted-Average Rate at Date of Issuance Contractual Maturity Date April 2013 $650,000 0.57% May 2014 - December 2020 |
Schedule of Unpaid Principal Balance of Serviced Retail Motorcycle Finance Receivables | The unpaid principal balance of serviced retail motorcycle finance receivables at December 31 was as follows (in thousands): 2017 2016 On-balance sheet retail motorcycle finance receivables $ 5,993,185 $ 5,839,467 Off-balance sheet retail motorcycle finance receivables 146,425 236,706 Total serviced retail motorcycle finance receivables $ 6,139,610 $ 6,076,173 The balance of serviced finance receivables 30 days or more delinquent at December 31 was as follows (in thousands): Amount 30 days or more past due: 2017 2016 On-balance sheet retail motorcycle finance receivables $ 227,127 $ 221,393 Off-balance sheet retail motorcycle finance receivables 2,106 1,858 Total serviced retail motorcycle finance receivables $ 229,233 $ 223,251 Credit losses, net of recoveries for the serviced finance receivables for the years ended December 31 were as follows (in thousands): 2017 2016 On-balance sheet retail motorcycle finance receivables $ 113,316 $ 107,161 Off-balance sheet retail motorcycle finance receivables 1,191 820 Total serviced retail motorcycle finance receivables $ 114,507 $ 107,981 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Provision For Income Taxes | Provision for income taxes for the years ended December 31 consists of the following (in thousands): 2017 2016 2015 Current: Federal $ 245,189 $ 284,489 $ 363,803 State 24,898 28,406 37,811 Foreign 21,138 19,017 12,826 291,225 331,912 414,440 Deferred: Federal 47,046 (4,250 ) (15,474 ) State 2,688 7,038 (2,264 ) Foreign 1,121 (2,953 ) 1,254 50,855 (165 ) (16,484 ) Total $ 342,080 $ 331,747 $ 397,956 |
Components Of Income Before Taxes | The components of income before income taxes for the years ended December 31 were as follows (in thousands): 2017 2016 2015 Domestic $ 788,878 $ 954,138 $ 1,101,427 Foreign 74,961 69,773 48,736 Total $ 863,839 $ 1,023,911 $ 1,150,163 |
Provision For Income Tax Rate To Statutory Rate Reconciliation | The provision for income taxes differs from the amount that would be provided by applying the statutory U.S. corporate income tax rate due to the following items for the years ended December 31: 2017 2016 2015 Provision at statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 1.9 1.8 1.8 Foreign rate differential (0.8 ) (0.6 ) (0.4 ) Domestic manufacturing deduction (2.2 ) (2.1 ) (2.1 ) Research and development credit (0.7 ) (0.4 ) (0.4 ) Unrecognized tax benefits including interest and penalties 2.3 (1.3 ) 1.1 Valuation allowance adjustments (0.1 ) 0.1 (0.1 ) Deferred remeasurement for rate change 5.5 — — Tax reform territorial tax (0.1 ) — — Adjustments for previously accrued taxes (1.2 ) 0.2 (0.1 ) Other — (0.3 ) (0.2 ) Provision for income taxes 39.6 % 32.4 % 34.6 % |
Principal Components Of The Company's Deferred Tax Assets And Liabilities | The principal components of the Company’s deferred tax assets and liabilities as of December 31 include the following (in thousands): 2017 2016 Deferred tax assets: Accruals not yet tax deductible $ 92,158 $ 141,961 Pension and postretirement benefit plan obligations 37,357 88,741 Stock compensation 12,669 19,051 Net operating loss carryforward 33,171 33,587 Valuation allowance (21,561 ) (30,953 ) Other, net 52,422 56,903 206,216 309,290 Deferred tax liabilities: Depreciation, tax in excess of book (88,989 ) (139,268 ) Other (8,154 ) (2,293 ) (97,143 ) (141,561 ) Total $ 109,073 $ 167,729 |
Changes In Gross Liability For Unrecognized Tax Benefits Excluding Interest And Penalties | The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands): 2017 2016 Unrecognized tax benefits, beginning of period $ 55,539 $ 73,100 Increase in unrecognized tax benefits for tax positions taken in a prior period 9,513 2,828 Decrease in unrecognized tax benefits for tax positions taken in a prior period (3,749 ) (21,061 ) Increase in unrecognized tax benefits for tax positions taken in the current period 13,779 7,402 Statute lapses — (1,907 ) Settlements with taxing authorities (2,852 ) (4,823 ) Unrecognized tax benefits, end of period $ 72,230 $ 55,539 |
Employee Benefit Plans and Ot42
Employee Benefit Plans and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Obligation And Funded Status | The following table provides the changes in the benefit obligations, fair value of plan assets and funded status of the Company’s pension, SERPA and postretirement healthcare plans as of the Company’s December 31, 2017 and 2016 measurement dates (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation, beginning of period $ 1,986,435 $ 2,009,000 $ 346,431 $ 354,739 Service cost 31,584 33,437 7,500 7,478 Interest cost 85,076 90,827 13,648 14,814 Actuarial losses (gains) 195,444 13,481 (8,408 ) (4,647 ) Plan participant contributions — — 2,525 2,669 Plan amendments (13,227 ) — — — Benefits paid (84,291 ) (160,310 ) (23,208 ) (28,622 ) Benefit obligation, end of period 2,201,021 1,986,435 338,488 346,431 Change in plan assets: Fair value of plan assets, beginning of period 1,899,889 1,841,967 170,092 156,765 Actual return on plan assets 320,144 188,376 32,445 13,327 Company contributions 25,000 25,000 15,000 — Plan participant contributions — — 2,525 2,669 Benefits paid (82,148 ) (155,454 ) (2,525 ) (2,669 ) Fair value of plan assets, end of period 2,162,885 1,899,889 217,537 170,092 Funded status of the plans, December 31 $ (38,136 ) $ (86,546 ) $ (120,951 ) $ (176,339 ) Amounts recognized in the Consolidated Balance Sheets, December 31: Prepaid benefit costs (long-term assets) $ 19,816 $ — $ — $ — Accrued benefit liability (current liabilities) (3,346 ) (2,104 ) (2,198 ) (3,072 ) Accrued benefit liability (long-term liabilities) (54,606 ) (84,442 ) (118,753 ) (173,267 ) Net amount recognized $ (38,136 ) $ (86,546 ) $ (120,951 ) $ (176,339 ) |
Schedule of Amounts Recognized in Balance Sheet | The following table provides the changes in the benefit obligations, fair value of plan assets and funded status of the Company’s pension, SERPA and postretirement healthcare plans as of the Company’s December 31, 2017 and 2016 measurement dates (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation, beginning of period $ 1,986,435 $ 2,009,000 $ 346,431 $ 354,739 Service cost 31,584 33,437 7,500 7,478 Interest cost 85,076 90,827 13,648 14,814 Actuarial losses (gains) 195,444 13,481 (8,408 ) (4,647 ) Plan participant contributions — — 2,525 2,669 Plan amendments (13,227 ) — — — Benefits paid (84,291 ) (160,310 ) (23,208 ) (28,622 ) Benefit obligation, end of period 2,201,021 1,986,435 338,488 346,431 Change in plan assets: Fair value of plan assets, beginning of period 1,899,889 1,841,967 170,092 156,765 Actual return on plan assets 320,144 188,376 32,445 13,327 Company contributions 25,000 25,000 15,000 — Plan participant contributions — — 2,525 2,669 Benefits paid (82,148 ) (155,454 ) (2,525 ) (2,669 ) Fair value of plan assets, end of period 2,162,885 1,899,889 217,537 170,092 Funded status of the plans, December 31 $ (38,136 ) $ (86,546 ) $ (120,951 ) $ (176,339 ) Amounts recognized in the Consolidated Balance Sheets, December 31: Prepaid benefit costs (long-term assets) $ 19,816 $ — $ — $ — Accrued benefit liability (current liabilities) (3,346 ) (2,104 ) (2,198 ) (3,072 ) Accrued benefit liability (long-term liabilities) (54,606 ) (84,442 ) (118,753 ) (173,267 ) Net amount recognized $ (38,136 ) $ (86,546 ) $ (120,951 ) $ (176,339 ) |
Schedule Of PBO In Excess Of Fair Value Of Plan Assets | The funded status of the qualified pension plan and the SERPA plans are combined above. Plan level information for plans with projected benefit obligations (PBO) or accumulated benefit obligations (ABO) in excess of the fair value of plan assets at December 31 is presented below (in millions): 2017 2016 Plans with PBOs in excess of fair value of plan assets: PBO $ 58.0 $ 1,986.4 Fair value of plan assets $ — $ 1,899.9 Plans with ABOs in excess of fair value of plan assets: PBO $ 58.0 $ 52.3 ABO $ 42.1 $ 38.4 Fair value of plan assets $ — $ — |
Schedule of ABO in Excess of Fair Value of Plan Assets | The funded status of the qualified pension plan and the SERPA plans are combined above. Plan level information for plans with projected benefit obligations (PBO) or accumulated benefit obligations (ABO) in excess of the fair value of plan assets at December 31 is presented below (in millions): 2017 2016 Plans with PBOs in excess of fair value of plan assets: PBO $ 58.0 $ 1,986.4 Fair value of plan assets $ — $ 1,899.9 Plans with ABOs in excess of fair value of plan assets: PBO $ 58.0 $ 52.3 ABO $ 42.1 $ 38.4 Fair value of plan assets $ — $ — |
Components Of Net Periodic Benefit Costs | Components of net periodic benefit costs for the years ended December 31 (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits 2017 2016 2015 2017 2016 2015 Service cost $ 31,584 $ 33,437 $ 40,039 $ 7,500 $ 7,478 $ 8,259 Interest cost 85,076 90,827 87,345 13,648 14,814 14,166 Special early retirement benefits — — 10,563 — — 622 Expected return on plan assets (141,385 ) (145,781 ) (144,929 ) (12,623 ) (12,069 ) (11,506 ) Amortization of unrecognized: Prior service cost (credit) 1,018 1,019 435 (2,171 ) (2,803 ) (3,217 ) Net loss 43,993 46,351 54,709 3,261 3,537 3,971 Settlement loss — 1,463 368 — — — Net periodic benefit cost $ 20,286 $ 27,316 $ 48,530 $ 9,615 $ 10,957 $ 12,295 |
Schedule Of Net Periodic Benefit Cost Recognized In Accumulated Other Comprehensive Loss | Amounts included in accumulated other comprehensive loss, net of tax, at December 31, 2017 which have not yet been recognized in net periodic benefit cost are as follows (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits Total Prior service credit $ (4,136 ) $ (5,871 ) $ (10,007 ) Net actuarial loss 450,754 20,196 470,950 Total $ 446,618 $ 14,325 $ 460,943 |
Schedule Of Net Periodic Benefit Cost Expected To Be Recognized | Amounts expected to be recognized in net periodic benefit cost, net of tax, during the year ended December 31, 2018 are as follows (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits Total Prior service credit $ (329 ) $ (1,409 ) $ (1,738 ) Net actuarial loss 45,364 1,391 46,755 Total $ 45,035 $ (18 ) $ 45,017 |
Schedule Of Assumptions Used To Determine Net Periodic Benefit Cost | Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost at December 31 were as follows: Pension and SERPA Benefits Postretirement Healthcare Benefits 2017 2016 2015 2017 2016 2015 Assumptions for benefit obligations: Discount rate 3.71 % 4.30 % 4.53 % 3.52 % 4.03 % 4.29 % Rate of compensation 3.43 % 3.50 % 3.50 % n/a n/a n/a Assumptions for net periodic benefit cost: Discount rate 4.30 % 4.53 % 4.21 % 4.03 % 4.29 % 3.99 % Expected return on plan assets 7.25 % 7.50 % 7.75 % 7.25 % 7.50 % 7.70 % Rate of compensation increase 3.50 % 3.50 % 4.00 % n/a n/a n/a |
Schedule of Allocation of Plan Assets | The fair values of the Company’s postretirement healthcare plan assets as of December 31, 2017 were as follows (in thousands): Balance as of December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash and cash equivalents $ 19,317 $ — $ 19,317 Equity holdings: U.S. companies 101,720 101,720 — Foreign companies 19,498 19,495 3 Pooled equity funds 23,563 23,563 — Other 14 14 — Total equity holdings 144,795 144,792 3 Fixed-income holdings: U.S. Treasuries 6,803 6,803 — Federal agencies 5,060 — 5,060 Corporate bonds 6,756 — 6,756 Pooled fixed income funds 27,461 27,461 — Foreign bonds 311 — 311 Municipal bonds 284 — 284 Total fixed-income holdings 46,675 34,264 12,411 Total assets in the fair value hierarchy 210,787 $ 179,056 $ 31,731 Assets measured at net asset value as a practical expedient: Real estate investment trust 6,750 Total postretirement healthcare plan assets $ 217,537 The fair values of the Company’s pension plan assets as of December 31, 2017 were as follows (in thousands): Balance as of December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash and cash equivalents $ 51,082 $ 1,057 $ 50,025 Equity holdings: U.S. companies 722,527 705,111 17,416 Foreign companies 78,765 78,765 — Harley-Davidson common stock 64,800 64,800 — Pooled equity funds 416,881 416,881 — Other 119 119 — Total equity holdings 1,283,092 1,265,676 17,416 Fixed-income holdings: U.S. Treasuries 39,866 39,866 — Federal agencies 29,188 — 29,188 Corporate bonds 462,563 — 462,563 Pooled fixed income funds 189,361 61,875 127,486 Foreign bonds 81,732 — 81,732 Municipal bonds 11,800 — 11,800 Total fixed-income holdings 814,510 101,741 712,769 Total assets in the fair value hierarchy 2,148,684 $ 1,368,474 $ 780,210 Assets measured at net asset value as a practical expedient: Limited partnership interests 9,099 Real estate investment trust 5,102 Total pension plan assets $ 2,162,885 The fair values of the Company’s postretirement healthcare plan assets as of December 31, 2016 were as follows (in thousands): Balance as of December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash and cash equivalents $ 4,442 $ 1,180 $ 3,262 Equity holdings: U.S. companies 84,643 84,643 — Foreign companies 14,190 13,995 195 Pooled equity funds 19,132 19,132 — Other 9 9 — Total equity holdings 117,974 117,779 195 Fixed-income holdings: U.S. Treasuries 12,262 12,262 — Federal agencies 7,364 — 7,364 Corporate bonds 11,750 — 11,750 Pooled fixed income funds 9,690 — 9,690 Foreign bonds 633 — 633 Municipal bonds 459 — 459 Total fixed-income holdings 42,158 12,262 29,896 Total assets in the fair value hierarchy 164,574 $ 131,221 $ 33,353 Assets measured at net asset value as a practical expedient: Real estate investment trust 5,518 Total postretirement healthcare plan assets $ 170,092 The fair values of the Company’s pension plan assets as of December 31, 2016 were as follows (in thousands): Balance as of December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash and cash equivalents $ 84,548 $ 1,284 $ 83,264 Equity holdings: U.S. companies 603,568 586,302 17,266 Foreign companies 50,256 50,256 — Harley-Davidson common stock 74,301 74,301 — Pooled equity funds 316,225 316,225 — Other 105 105 — Total equity holdings 1,044,455 1,027,189 17,266 Fixed-income holdings: U.S. Treasuries 41,089 41,089 — Federal agencies 36,210 — 36,210 Corporate bonds 418,522 — 418,522 Pooled fixed income funds 170,741 57,543 113,198 Foreign bonds 69,871 — 69,871 Municipal bonds 12,509 — 12,509 Total fixed-income holdings 748,942 98,632 650,310 Total assets in the fair value hierarchy 1,877,945 $ 1,127,105 $ 750,840 Assets measured at net asset value as a practical expedient: Limited partnership interests 9,321 Real estate investment trust 12,623 Total pension plan assets $ 1,899,889 |
Schedule Of Weighted Average Health Care Cost Trend Rate | The weighted-average healthcare cost trend rate used in determining the accumulated postretirement benefit obligation of the healthcare plans was as follows: 2017 2016 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 2026 2021 |
Schedule Of Weighted Average Health Care Cost Trend Rate Assumption | This healthcare cost trend rate assumption can have a significant effect on the amounts reported. A one-percentage-point change in the assumed healthcare cost trend rate would have the following effects (in thousands): One Percent Increase One Percent Decrease Total of service and interest cost components in 2017 $ 648 $ (623 ) Accumulated benefit obligation as of December 31, 2017 $ 11,984 $ (10,940 ) |
Schedule Of Expected Benefit Payments For Next Five Years And Thereafter | The expected benefit payments for the next five years and thereafter were as follows (in thousands): Pension Benefits SERPA Benefits Postretirement Healthcare Benefits 2018 $ 90,510 $ 3,346 $ 28,446 2019 $ 92,694 $ 2,325 $ 28,309 2020 $ 95,930 $ 2,843 $ 27,351 2021 $ 98,109 $ 3,294 $ 26,175 2022 $ 102,258 $ 3,528 $ 25,096 2023-2027 $ 574,745 $ 27,719 $ 120,438 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Future Minimum Operating Lease Payments, Maturity Schedule | Future minimum operating lease payments at December 31, 2017 were as follows (in thousands): 2018 $ 15,074 2019 14,225 2020 9,601 2021 8,523 2022 6,192 Thereafter 8,379 Total operating lease payments $ 61,994 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stock Repurchases Pursuant To Board Of Director Authorizations | The remaining repurchases were made pursuant to the following authorizations (in millions of shares): Shares Repurchased Authorization Remaining Board of Directors’ Authorization 2017 2016 2015 1997 Authorization — — 0.9 — 2007 Authorization — — 0.9 — 2014 Authorization — — 20.0 — 2015 Authorization — 9.0 6.0 — 2016 Authorization 8.7 0.7 — 10.6 Total 8.7 9.7 27.8 10.6 |
Share-Based Awards (Tables)
Share-Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock Units and Performance Shares Settled in Stock Transactions | The following table summarizes the activity for these awards for the year ended December 31, 2017 (in thousands except for per share amounts): Shares / Units Grant Date Fair Value Per Share Nonvested, beginning of period 1,371 $ 46 Granted 730 $ 56 Vested (408 ) $ 51 Forfeited (92 ) $ 50 Nonvested, end of period 1,601 $ 49 |
Summary of Restricted Stock Units and Performance Shares Settled in Cash Transactions | The following table summarizes the activity for these awards for the year ended December 31, 2017 (in thousands except for per share amounts): Units Weighted-Average Grant Date Fair Value Per Share Nonvested, beginning of period 124 $ 54 Granted 56 $ 52 Vested (49 ) $ 60 Forfeited (30 ) $ 59 Nonvested, end of period 101 $ 53 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Assumptions used in calculating the lattice-based fair value of options granted during 2015 were as follows: 2015 Expected average term (in years) 6.0 Expected volatility 24% - 30% Weighted average volatility 28 % Expected dividend yield 2.0 % Risk-free interest rate 0.1% - 2.0% |
Summary of Stock Option Transactions | The following table summarizes the stock option transactions for the year ended December 31, 2017 (in thousands except for per share amounts): Options Weighted- Average Price Options outstanding, beginning of period 1,878 $ 49 Options exercised (282 ) $ 40 Options forfeited (192 ) $ 68 Options outstanding, end of period 1,404 $ 48 Exercisable, end of period 1,309 $ 47 |
Summary of Aggregate Intrinsic Value Related to Options Outstanding, Exercisable and Exercised | The following table summarizes the aggregate intrinsic value related to options outstanding, exercisable and exercised as of and for the years ended December 31 (in thousands): 2017 2016 2015 Exercised $ 4,051 $ 9,595 $ 9,890 Outstanding $ 11,711 $ 22,383 $ 16,605 Exercisable $ 11,711 $ 22,383 $ 16,605 |
Stock Options Outstanding By Price Range | Stock options outstanding at December 31, 2017 were as follows (options in thousands): Price Range Weighted-Average Contractual Life Options Weighted-Average Exercise Price $10.01 to $20 1.2 151 $ 13 $20.01 to $30 2.1 145 $ 24 $30.01 to $40 0.1 37 $ 39 $40.01 to $50 3.6 239 $ 44 $50.01 to $60 4.6 193 $ 52 $60.01 to $70 5.2 639 $ 63 Options outstanding 4.0 1,404 $ 48 Options exercisable 3.7 1,309 $ 47 |
Assumptions Used In Calculating Fair Value of Stock Appreciation Rights | The assumptions used to determine the fair value of the SAR awards at December 31, 2017 and 2016 were as follows: 2017 2016 Expected average term (in years) 5.7 5.2 - 5.7 Expected volatility 28% - 31% 28% - 31% Expected dividend yield 2.9 % 2.4 % Risk-free interest rate 1.3% - 2.5% 0.5% - 2.6% |
Summary of Stock Appreciation Right Transactions | The following table summarizes the SAR transactions for the year ended December 31, 2017 (in thousands except for per share amounts): SARs Weighted-Average Price Outstanding, beginning of period 75 $ 37 Granted — $ — Exercised (32 ) $ 31 Forfeited (16 ) $ 62 Outstanding, end of period 27 $ 30 Exercisable, end of period 27 $ 30 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation Of Earnings Per Share Basic And Diluted | The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the years ended December 31 (in thousands except per share amounts): 2017 2016 2015 Numerator : Income used in computing basic and diluted earnings per share $ 521,759 $ 692,164 $ 752,207 Denominator : Denominator for basic earnings per share-weighted-average common shares 171,995 179,676 202,681 Effect of dilutive securities – employee stock compensation plan 937 859 1,005 Denominator for diluted earnings per share- adjusted weighted-average shares outstanding 172,932 180,535 203,686 Earnings per common share: Basic $ 3.03 $ 3.85 $ 3.71 Diluted $ 3.02 $ 3.83 $ 3.69 |
Reportable Segments and Geogr47
Reportable Segments and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Information By Industry Segment | Information by segment is set forth below for the years ended December 31 (in thousands): 2017 2016 2015 Motorcycles net revenue $ 4,915,027 $ 5,271,376 $ 5,308,744 Gross profit 1,653,344 1,851,666 1,952,460 Selling, administrative and engineering expense 1,037,386 1,078,260 1,076,970 Operating income from Motorcycles 615,958 773,406 875,490 Financial Services revenue 732,197 725,082 686,658 Financial Services expense 456,892 449,552 406,453 Operating income from Financial Services 275,305 275,530 280,205 Operating income $ 891,263 $ 1,048,936 $ 1,155,695 Information by segment is set forth below as of December 31 (in thousands): Motorcycles Financial Services Consolidated 2017 Total assets $ 2,449,603 $ 7,523,069 $ 9,972,672 Depreciation and amortization $ 215,639 $ 6,549 $ 222,188 Capital expenditures $ 193,204 $ 13,090 $ 206,294 2016 Total assets $ 2,490,450 $ 7,399,790 $ 9,890,240 Depreciation and amortization $ 202,122 $ 7,433 $ 209,555 Capital expenditures $ 245,316 $ 10,947 $ 256,263 2015 Total assets $ 2,522,249 $ 7,450,728 $ 9,972,977 Depreciation and amortization $ 188,926 $ 9,148 $ 198,074 Capital expenditures $ 249,772 $ 10,202 $ 259,974 |
Segment Information By Geographical Locations | Included in the consolidated financial statements are the following amounts relating to geographic locations for the years ended December 31 (in thousands): 2017 2016 2015 Revenue from Motorcycles (a) : United States $ 3,215,513 $ 3,579,129 $ 3,768,069 EMEA 790,725 798,489 728,198 Japan 180,938 200,309 162,675 Canada 232,883 212,099 178,042 Australia and New Zealand 168,670 181,809 165,854 Other foreign countries 326,298 299,541 305,906 Total revenue from Motorcycles $ 4,915,027 $ 5,271,376 $ 5,308,744 Revenue from Financial Services (a) : United States $ 698,383 $ 692,784 $ 656,888 Europe 6,845 6,528 5,373 Canada 22,580 21,626 21,180 Other foreign countries 4,389 4,144 3,217 Total revenue from Financial Services $ 732,197 $ 725,082 $ 686,658 Long-lived assets (b) : United States $ 912,032 $ 943,479 $ 915,509 International 55,749 38,114 26,909 Total long-lived assets $ 967,781 $ 981,593 $ 942,418 (a) Revenue is attributed to geographic regions based on location of customer. (b) Long-lived assets include all long-term assets except those specifically excluded under ASC Topic 280, “Segment Reporting,” such as deferred income taxes and finance receivables. |
Supplemental Consolidating Da48
Supplemental Consolidating Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations | The supplemental consolidating data for the periods noted is presented for informational purposes. The supplemental consolidating data may be different than segment information presented elsewhere due to the allocation of intercompany eliminations to reporting segments. All supplemental data is presented in thousands. Year Ended December 31, 2017 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 4,925,003 $ — $ (9,976 ) $ 4,915,027 Financial Services — 734,008 (1,811 ) 732,197 Total revenue 4,925,003 734,008 (11,787 ) 5,647,224 Costs and expenses: Motorcycles and Related Products cost of goods sold 3,261,683 — — 3,261,683 Financial Services interest expense — 180,193 — 180,193 Financial Services provision for credit losses — 132,444 — 132,444 Selling, administrative and engineering expense 1,038,994 154,232 (11,585 ) 1,181,641 Total costs and expenses 4,300,677 466,869 (11,585 ) 4,755,961 Operating income 624,326 267,139 (202 ) 891,263 Investment income 199,580 — (196,000 ) 3,580 Interest expense 31,004 — — 31,004 Income before provision for income taxes 792,902 267,139 (196,202 ) 863,839 Provision for income taxes 214,175 127,905 — 342,080 Net income $ 578,727 $ 139,234 $ (196,202 ) $ 521,759 Year Ended December 31, 2016 HDMC HDFS Eliminations Consolidated Revenue: Motorcycles and Related Products $ 5,281,355 $ — $ (9,979 ) $ 5,271,376 Financial Services — 726,736 (1,654 ) 725,082 Total revenue 5,281,355 726,736 (11,633 ) 5,996,458 Costs and expenses: Motorcycles and Related Products cost of goods sold 3,419,710 — — 3,419,710 Financial Services interest expense — 173,756 — 173,756 Financial Services provision for credit losses — 136,617 — 136,617 Selling, administrative and engineering expense 1,080,020 149,157 (11,738 ) 1,217,439 Total costs and expenses 4,499,730 459,530 (11,738 ) 4,947,522 Operating income 781,625 267,206 105 1,048,936 Investment income 187,645 — (183,000 ) 4,645 Interest expense 29,670 — — 29,670 Income before provision for income taxes 939,600 267,206 (182,895 ) 1,023,911 Provision for income taxes 231,986 99,761 — 331,747 Net income $ 707,614 $ 167,445 $ (182,895 ) $ 692,164 Year Ended December 31, 2015 HDMC HDFS Eliminations Consolidated Revenue: Motorcycles and Related Products $ 5,318,850 $ — $ (10,106 ) $ 5,308,744 Financial Services — 688,211 (1,553 ) 686,658 Total revenue 5,318,850 688,211 (11,659 ) 5,995,402 Costs and expenses: Motorcycles and Related Products cost of goods sold 3,356,284 — — 3,356,284 Financial Services interest expense — 161,983 — 161,983 Financial Services provision for credit losses — 101,345 — 101,345 Selling, administrative and engineering expense 1,078,525 153,229 (11,659 ) 1,220,095 Total costs and expenses 4,434,809 416,557 (11,659 ) 4,839,707 Operating income 884,041 271,654 — 1,155,695 Investment income 106,585 — (100,000 ) 6,585 Interest expense 12,117 — — 12,117 Income before provision for income taxes 978,509 271,654 (100,000 ) 1,150,163 Provision for income taxes 300,499 97,457 — 397,956 Net income $ 678,010 $ 174,197 $ (100,000 ) $ 752,207 |
Balance Sheet | December 31, 2017 HDMC HDFS Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 338,186 $ 349,335 $ — $ 687,521 Accounts receivable, net 483,709 — (153,723 ) 329,986 Finance receivables, net — 2,105,662 — 2,105,662 Inventories 538,202 — — 538,202 Restricted cash — 47,518 — 47,518 Other current assets 132,999 48,521 (5,667 ) 175,853 Total current assets 1,493,096 2,551,036 (159,390 ) 3,884,742 Finance receivables, net — 4,859,424 — 4,859,424 Property, plant and equipment, net 922,280 45,501 — 967,781 Prepaid pension costs 19,816 — — 19,816 Goodwill 55,947 — — 55,947 Deferred income taxes 66,877 43,515 (1,319 ) 109,073 Other long-term assets 138,344 23,593 (86,048 ) 75,889 $ 2,696,360 $ 7,523,069 $ (246,757 ) $ 9,972,672 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 214,263 $ 167,057 $ (153,723 ) $ 227,597 Accrued liabilities 444,028 90,942 (5,148 ) 529,822 Short-term debt — 1,273,482 — 1,273,482 Current portion of long-term debt, net — 1,127,269 — 1,127,269 Total current liabilities 658,291 2,658,750 (158,871 ) 3,158,170 Long-term debt, net 741,961 3,845,297 — 4,587,258 Pension liability 54,606 — — 54,606 Postretirement healthcare liability 118,753 — — 118,753 Other long-term liabilities 171,200 35,503 2,905 209,608 Commitments and contingencies (Note 14) Shareholders’ equity 951,549 983,519 (90,791 ) 1,844,277 $ 2,696,360 $ 7,523,069 $ (246,757 ) $ 9,972,672 December 31, 2016 HDMC HDFS Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 425,540 $ 334,444 $ — $ 759,984 Marketable securities 5,019 500 — 5,519 Accounts receivable, net 450,186 — (165,080 ) 285,106 Finance receivables, net — 2,076,261 — 2,076,261 Inventories 499,917 — — 499,917 Restricted cash — 52,574 — 52,574 Other current assets 127,606 46,934 (49 ) 174,491 Total current assets 1,508,268 2,510,713 (165,129 ) 3,853,852 Finance receivables, net — 4,759,197 — 4,759,197 Property, plant and equipment, net 942,634 38,959 — 981,593 Goodwill 53,391 — — 53,391 Deferred income taxes 103,487 66,152 (1,910 ) 167,729 Other long-term assets 132,835 24,769 (83,126 ) 74,478 $ 2,740,615 $ 7,399,790 $ (250,165 ) $ 9,890,240 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 219,353 $ 181,045 $ (165,080 ) $ 235,318 Accrued liabilities 395,907 90,910 (165 ) 486,652 Short-term debt — 1,055,708 — 1,055,708 Current portion of long-term debt, net — 1,084,884 — 1,084,884 Total current liabilities 615,260 2,412,547 (165,245 ) 2,862,562 Long-term debt, net 741,306 3,925,669 — 4,666,975 Pension liability 84,442 — — 84,442 Postretirement healthcare liability 173,267 — — 173,267 Other long-term liabilities 150,391 29,697 2,748 182,836 Commitments and contingencies (Note 14) Shareholders’ equity 975,949 1,031,877 (87,668 ) 1,920,158 $ 2,740,615 $ 7,399,790 $ (250,165 ) $ 9,890,240 |
Cash Flows | Year Ended December 31, 2017 HDMC HDFS Eliminations Consolidated Cash flows from operating activities: Net income $ 578,727 $ 139,234 $ (196,202 ) $ 521,759 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 215,639 6,549 — 222,188 Amortization of deferred loan origination costs — 82,911 — 82,911 Amortization of financing origination fees 655 7,390 — 8,045 Provision for long-term employee benefits 29,900 — — 29,900 Employee benefit plan contributions and payments (63,277 ) — — (63,277 ) Stock compensation expense 29,570 2,921 — 32,491 Net change in wholesale finance receivables related to sales — — 35,172 35,172 Provision for credit losses — 132,444 — 132,444 Deferred income taxes 29,949 21,497 (591 ) 50,855 Other, net 4,858 3,498 203 8,559 Changes in current assets and liabilities: Accounts receivable, net (6,792 ) — (11,357 ) (18,149 ) Finance receivables—accrued interest and other — (1,313 ) — (1,313 ) Inventories (20,584 ) — — (20,584 ) Accounts payable and accrued liabilities 9,753 (11,497 ) 11,872 10,128 Derivative instruments 1,785 81 — 1,866 Other (31,868 ) (1,684 ) 5,618 (27,934 ) Total adjustments 199,588 242,797 40,917 483,302 Net cash provided by operating activities 778,315 382,031 (155,285 ) 1,005,061 Cash flows from investing activities: Capital expenditures (193,204 ) (13,090 ) — (206,294 ) Origination of finance receivables — (7,109,624 ) 3,517,676 (3,591,948 ) Collections on finance receivables — 6,786,702 (3,558,391 ) 3,228,311 Sales and redemptions of marketable securities 6,916 — — 6,916 Other 547 — — 547 Net cash used by investing activities (185,741 ) (336,012 ) (40,715 ) (562,468 ) Year Ended December 31, 2017 HDMC HDFS Eliminations Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 893,668 — 893,668 Repayments of medium-term notes — (800,000 ) — (800,000 ) Repayments of securitization debt — (444,671 ) — (444,671 ) Borrowings of asset-backed commercial paper — 469,932 — 469,932 Repayments of asset-backed commercial paper — (176,227 ) — (176,227 ) Net increase in credit facilities and unsecured commercial paper — 212,809 — 212,809 Net change in restricted cash — 8,458 — 8,458 Dividends paid (251,862 ) (196,000 ) 196,000 (251,862 ) Purchase of common stock for treasury (465,263 ) — — (465,263 ) Issuance of common stock under employee stock option plans 11,353 — — 11,353 Net cash used by financing activities (705,772 ) (32,031 ) 196,000 (541,803 ) Effect of exchange rate changes on cash and cash equivalents 25,844 903 — 26,747 Net (decrease) increase in cash and cash equivalents $ (87,354 ) $ 14,891 $ — $ (72,463 ) Cash and cash equivalents: Cash and cash equivalents—beginning of period $ 425,540 $ 334,444 $ — $ 759,984 Net (decrease) increase in cash and cash equivalents (87,354 ) 14,891 — (72,463 ) Cash and cash equivalents—end of period $ 338,186 $ 349,335 $ — $ 687,521 Year Ended December 31, 2016 HDMC HDFS Eliminations Consolidated Cash flows from operating activities: Net income $ 707,614 $ 167,445 $ (182,895 ) $ 692,164 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 202,122 7,433 — 209,555 Amortization of deferred loan origination costs — 86,681 — 86,681 Amortization of financing origination fees 654 8,598 — 9,252 Provision for long-term employee benefits 38,273 — — 38,273 Employee benefit plan contributions and payments (55,809 ) — — (55,809 ) Stock compensation expense 29,811 2,525 — 32,336 Net change in wholesale finance receivables related to sales — — (3,233 ) (3,233 ) Provision for credit losses — 136,617 — 136,617 Gain on off-balance sheet asset-backed securitization — (9,269 ) — (9,269 ) Loss on debt extinguishment — 118 — 118 Deferred income taxes 7,772 (7,705 ) (232 ) (165 ) Other, net (7,041 ) 239 (105 ) (6,907 ) Changes in current assets and liabilities: Accounts receivable, net (67,621 ) — 21,687 (45,934 ) Finance receivables – accrued interest and other — (1,489 ) — (1,489 ) Inventories 85,072 — — 85,072 Accounts payable and accrued liabilities 26,005 25,027 (12,795 ) 38,237 Derivative instruments (3,413 ) — — (3,413 ) Other (25,415 ) (2,332 ) — (27,747 ) Total adjustments 230,410 246,443 5,322 482,175 Net cash provided by operating activities 938,024 413,888 (177,573 ) 1,174,339 Cash flows from investing activities: Capital expenditures (245,316 ) (10,947 ) — (256,263 ) Origination of finance receivables — (7,420,177 ) 3,755,682 (3,664,495 ) Collections on finance receivables — 6,936,140 (3,761,109 ) 3,175,031 Proceeds from finance receivables sold — 312,571 — 312,571 Sales and redemptions of marketable securities 40,014 — — 40,014 Other 411 — — 411 Net cash used by investing activities (204,891 ) (182,413 ) (5,427 ) (392,731 ) Year Ended December 31, 2016 HDMC HDFS Eliminations Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 1,193,396 — 1,193,396 Repayments of medium-term notes — (451,336 ) — (451,336 ) Repayments of securitization debt — (665,400 ) — (665,400 ) Borrowings of asset-backed commercial paper — 62,396 — 62,396 Repayments of asset-backed commercial paper — (71,500 ) — (71,500 ) Net decrease in credit facilities and unsecured commercial paper — (145,812 ) — (145,812 ) Net change in restricted cash — 43,495 — 43,495 Dividends paid (252,321 ) (183,000 ) 183,000 (252,321 ) Purchase of common stock for treasury (465,341 ) — — (465,341 ) Excess tax benefits from share-based payments 2,251 — — 2,251 Issuance of common stock under employee stock option plans 15,782 — — 15,782 Net cash used by financing activities (699,629 ) (217,761 ) 183,000 (734,390 ) Effect of exchange rate changes on cash and cash equivalents (8,407 ) (1,036 ) — (9,443 ) Net increase in cash and cash equivalents $ 25,097 $ 12,678 $ — $ 37,775 Cash and cash equivalents: Cash and cash equivalents – beginning of period $ 400,443 $ 321,766 $ — $ 722,209 Net increase in cash and cash equivalents 25,097 12,678 — 37,775 Cash and cash equivalents – end of period $ 425,540 $ 334,444 $ — $ 759,984 Year Ended December 31, 2015 HDMC HDFS Eliminations Consolidated Cash flows from operating activities: Net income $ 678,010 $ 174,197 $ (100,000 ) $ 752,207 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 188,926 9,148 — 198,074 Amortization of deferred loan origination costs — 93,546 — 93,546 Amortization of financing origination fees 267 9,708 — 9,975 Provision for long-term employee benefits 60,824 — — 60,824 Employee benefit plan contributions and payments (28,490 ) — — (28,490 ) Stock compensation expense 26,775 2,658 — 29,433 Net change in wholesale finance receivables related to sales — — (113,970 ) (113,970 ) Provision for credit losses — 101,345 — 101,345 Loss on debt extinguishment — 1,099 — 1,099 Deferred income taxes (4,792 ) (11,692 ) — (16,484 ) Other, net 19,625 1,288 — 20,913 Changes in current assets and liabilities: Accounts receivable, net 4,055 — (17,720 ) (13,665 ) Finance receivables – accrued interest and other — (3,046 ) — (3,046 ) Inventories (155,222 ) — — (155,222 ) Accounts payable and accrued liabilities 81,929 18,539 38,355 138,823 Derivative instruments (5,615 ) — — (5,615 ) Other 33,658 (3,287 ) — 30,371 Total adjustments 221,940 219,306 (93,335 ) 347,911 Net cash provided by operating activities 899,950 393,503 (193,335 ) 1,100,118 Cash flows from investing activities: Capital expenditures (249,772 ) (10,202 ) — (259,974 ) Origination of finance receivables — (7,836,279 ) 4,084,449 (3,751,830 ) Collections on finance receivables — 7,127,999 (3,991,114 ) 3,136,885 Sales and redemptions of marketable securities 11,507 — — 11,507 Acquisition of business (59,910 ) — — (59,910 ) Other 7,474 — — 7,474 Net cash used by investing activities (290,701 ) (718,482 ) 93,335 (915,848 ) Year Ended December 31, 2015 HDMC HDFS Eliminations Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 595,386 — 595,386 Repayments of medium-term notes — (610,331 ) — (610,331 ) Proceeds from issuance of senior unsecured notes 740,385 — — 740,385 Intercompany borrowing activity 250,000 (250,000 ) — — Proceeds from securitization debt — 1,195,668 — 1,195,668 Repayments of securitization debt — (1,008,135 ) — (1,008,135 ) Borrowings of asset-backed commercial paper — 87,442 — 87,442 Repayments of asset-backed commercial paper — (72,727 ) — (72,727 ) Net increase in credit facilities and unsecured commercial paper — 469,473 — 469,473 Net change in restricted cash — 11,410 — 11,410 Dividends paid (249,262 ) (100,000 ) 100,000 (249,262 ) Purchase of common stock for treasury (1,537,020 ) — — (1,537,020 ) Excess tax benefits from share-based payments 3,468 — — 3,468 Issuance of common stock under employee stock option plans 20,179 — — 20,179 Net cash (used by) provided by financing activities (772,250 ) 318,186 100,000 (354,064 ) Effect of exchange rate changes on cash and cash equivalents (10,451 ) (4,226 ) — (14,677 ) Net decrease in cash and cash equivalents $ (173,452 ) $ (11,019 ) $ — $ (184,471 ) Cash and cash equivalents: Cash and cash equivalents – beginning of period $ 573,895 $ 332,785 $ — $ 906,680 Net decrease in cash and cash equivalents (173,452 ) (11,019 ) — (184,471 ) Cash and cash equivalents – end of period $ 400,443 $ 321,766 $ — $ 722,209 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Pre-tax loss from foreign currency remeasurements | $ 15,100 | $ 21,500 | ||
Pre-tax gain from foreign currency remeasurements | $ 15,000 | |||
Number of reportable segments | segment | 2 | |||
Allowance for doubtful accounts receivable | $ 4,100 | 2,700 | ||
Repossessed inventory | 19,600 | 19,300 | ||
Other inventories | 234,900 | 221,700 | ||
Property, Plant and Equipment [Line Items] | ||||
Liability for recall campaign | 94,200 | 79,482 | 74,217 | $ 69,250 |
Research and development expenses | 175,200 | 172,300 | 161,200 | |
Advertising costs | 135,500 | 137,400 | 119,800 | |
Total share-based award compensation expense | 32,500 | 32,300 | 29,400 | |
Total share-based award compensation expense, net of taxes | 20,500 | 20,400 | 18,500 | |
Net change in restricted cash | $ 8,458 | 43,495 | 11,410 | |
Retail | ||||
Property, Plant and Equipment [Line Items] | ||||
Threshold days past due for write-off of financing receivable (in days) | 120 days | |||
Extended Service Contracts | ||||
Property, Plant and Equipment [Line Items] | ||||
Deferred revenue related to extended service contracts | $ 4,700 | 4,500 | ||
Recall Campaign | ||||
Property, Plant and Equipment [Line Items] | ||||
Liability for recall campaign | $ 35,300 | $ 13,600 | $ 10,200 | |
Parts And Accessories And General Merchandise | ||||
Property, Plant and Equipment [Line Items] | ||||
Standard product warranty, period (in years) | 1 year | |||
All Countries, Excluding Japan | Motorcycles | ||||
Property, Plant and Equipment [Line Items] | ||||
Standard product warranty, period (in years) | 2 years | |||
Japan | Motorcycles | ||||
Property, Plant and Equipment [Line Items] | ||||
Standard product warranty, period (in years) | 3 years | |||
Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives of property, plant and equipment (in years) | 30 years | |||
Building Equipment and Land Improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives of property, plant and equipment (in years) | 7 years | |||
Machinery and equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives of property, plant and equipment (in years) | 3 years | |||
Machinery and equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives of property, plant and equipment (in years) | 10 years | |||
Furniture and Fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives of property, plant and equipment (in years) | 5 years | |||
Software | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives of property, plant and equipment (in years) | 3 years | |||
Software | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives of property, plant and equipment (in years) | 7 years |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Marketable Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Available-for-sale securities: corporate bonds | $ 0 | $ 5,519 |
Trading securities: mutual funds | 48,006 | 38,119 |
Marketable Securities | $ 48,006 | $ 43,638 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Changes In Warranty And Safety Recall Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance, beginning of period | $ 79,482 | $ 74,217 | $ 69,250 |
Warranties issued during the period | 57,834 | 60,215 | 59,259 |
Settlements made during the period | (82,554) | (99,298) | (96,529) |
Recalls and changes to pre-existing warranty liabilities | 39,438 | 44,348 | 42,237 |
Balance, end of period | $ 94,200 | $ 79,482 | $ 74,217 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (New Accounting Standards) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect to opening balance of retained earnings related to initially applying ASU 2014-09 | $ 6 |
Additional Balance Sheet and 53
Additional Balance Sheet and Cash Flow Information (Inventories, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw materials and work in process | $ 161,664 | $ 140,639 |
Inventory at lower of FIFO cost or net realizable value | 590,557 | 548,184 |
Excess of FIFO over LIFO cost | (52,355) | (48,267) |
Total inventories, net | 538,202 | 499,917 |
Obsolescence reserves deducted from FIFO cost | 38,700 | 39,900 |
Motorcycles | ||
Inventory [Line Items] | ||
Inventory, finished goods, net of inventory valuation adjustment | 289,530 | 285,281 |
Parts And Accessories And General Merchandise | ||
Inventory [Line Items] | ||
Inventory, finished goods, net of inventory valuation adjustment | $ 139,363 | $ 122,264 |
Additional Balance Sheet and 54
Additional Balance Sheet and Cash Flow Information (Property, Plant And Equipment, At Cost) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,285,322 | $ 3,261,525 |
Accumulated depreciation | (2,317,541) | (2,279,932) |
Total property, plant and equipment, net | 967,781 | 981,593 |
Land and related improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 70,256 | 65,533 |
Buildings and related improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 464,454 | 464,200 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,890,126 | 1,887,269 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 660,090 | 630,114 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 200,396 | $ 214,409 |
Additional Balance Sheet and 55
Additional Balance Sheet and Cash Flow Information (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities, Current [Abstract] | ||
Payroll, employee benefits and related expenses | $ 124,093 | $ 148,221 |
Warranty and recalls | 75,089 | 57,698 |
Sales incentive programs | 48,309 | 43,218 |
Tax-related accruals | 25,944 | 26,140 |
Derivative Liability, Current | 21,308 | 142 |
Accrued interest | 40,347 | 42,788 |
Other | 194,732 | 168,445 |
Total accrued liabilities | $ 529,822 | $ 486,652 |
Additional Balance Sheet and 56
Additional Balance Sheet and Cash Flow Information (Reconciliation Of Net Income (Loss) To Net Cash Provided By Operating Activities Of Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 521,759 | $ 692,164 | $ 752,207 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of intangibles | 222,188 | 209,555 | 198,074 |
Amortization of deferred loan origination costs | 82,911 | 86,681 | 93,546 |
Amortization of financing origination fees | 8,045 | 9,252 | 9,975 |
Provision for long-term employee benefits | 29,900 | 38,273 | 60,824 |
Employee benefit plan contributions and payments | (63,277) | (55,809) | (28,490) |
Stock compensation expense | 32,491 | 32,336 | 29,433 |
Net change in wholesale finance receivables related to sales | 35,172 | (3,233) | (113,970) |
Provision for credit losses | 132,444 | 136,617 | 101,345 |
Gain on off-balance sheet asset-backed securitization | 0 | (9,269) | 0 |
Loss on debt extinguishment | 0 | 118 | 1,099 |
Deferred income taxes | 50,855 | (165) | (16,484) |
Other, net | 8,559 | (6,907) | 20,913 |
Changes in current assets and liabilities: | |||
Accounts receivable, net | (18,149) | (45,934) | (13,665) |
Finance receivables – accrued interest and other | (1,313) | (1,489) | (3,046) |
Inventories | (20,584) | 85,072 | (155,222) |
Accounts payable and accrued liabilities | 10,128 | 38,237 | 138,823 |
Derivative instruments | 1,866 | (3,413) | (5,615) |
Other | (27,934) | (27,747) | 30,371 |
Total adjustments | 483,302 | 482,175 | 347,911 |
Net cash provided by operating activities | 1,005,061 | 1,174,339 | 1,100,118 |
Supplemental Cash Flow Information [Abstract] | |||
Interest | 204,866 | 185,804 | 148,654 |
Income taxes | $ 300,113 | $ 356,553 | $ 371,547 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) | Aug. 04, 2015 | Sep. 27, 2015 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 55,947,000 | $ 53,391,000 | ||
Fred Deeley Imports, Ltd. | ||||
Business Acquisition [Line Items] | ||||
Total consideration | $ 59,900,000 | |||
Goodwill | 28,567,000 | |||
Goodwill, expected tax deductible amount | 28,567,000 | |||
Intangible assets, fair value | 20,842,000 | |||
Integration related costs | $ 3,300,000 | |||
Fred Deeley Imports, Ltd. | Distribution Rights | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, fair value | $ 13,300,000 | |||
Intangible asset, weighted average useful life (in years) | 2 years | |||
Fred Deeley Imports, Ltd. | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, fair value | $ 7,500,000 | |||
Intangible asset, weighted average useful life (in years) | 20 years |
Acquisition (Summary of Fair Va
Acquisition (Summary of Fair Values of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 04, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 55,947 | $ 53,391 | |
Fred Deeley Imports, Ltd. | |||
Business Acquisition [Line Items] | |||
Current assets | $ 11,088 | ||
Property, plant and equipment | 144 | ||
Intangible assets | 20,842 | ||
Goodwill | 28,567 | ||
Total assets | 60,641 | ||
Current liabilities | 731 | ||
Net assets acquired | $ 59,910 |
Goodwill and Intangible Asset59
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | |||
Balance, beginning of period | $ 53,391 | ||
Balance, end of period | 55,947 | $ 53,391 | |
Motorcycles | |||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 53,391 | 54,182 | $ 27,752 |
Business acquisitions | 0 | 0 | 28,567 |
Currency translation | 2,556 | (791) | (2,137) |
Balance, end of period | 55,947 | 53,391 | $ 54,182 |
Financial Services | |||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 0 | ||
Balance, end of period | $ 0 | $ 0 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Motorcycles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 21,793 | $ 20,221 |
Accumulated Amortization | (14,883) | (9,674) |
Total other intangible assets | 6,910 | 10,547 |
Motorcycles | Distribution Rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13,933 | 12,928 |
Accumulated Amortization | (13,933) | (9,157) |
Total other intangible assets | $ 0 | $ 3,771 |
Estimated useful life (years) | 2 years | 2 years |
Motorcycles | Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 7,860 | $ 7,293 |
Accumulated Amortization | (950) | (517) |
Total other intangible assets | $ 6,910 | $ 6,776 |
Estimated useful life (years) | 20 years | 20 years |
Financial Services | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangible assets | $ 0 | $ 0 |
Goodwill and Intangible Asset61
Goodwill and Intangible Assets (Schedule of Finite-Lived Intangible Assets Future Amortization Expense) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 4,200,000 | $ 7,000,000 | $ 2,776,000 |
Motorcycles | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,018 | 384,000 | ||
2,019 | 384,000 | ||
2,020 | 384,000 | ||
2,021 | 384,000 | ||
2,022 | 384,000 | ||
Thereafter | 4,990,000 | ||
Total other intangible assets | $ 6,910,000 | $ 10,547,000 |
Finance Receivables (Narrative)
Finance Receivables (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jun. 26, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable individually evaluated for impairment | $ 0 | $ 0 | |
Unconsolidated VIEs | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal balance of finance receivable | $ 301,800,000 | ||
Wholesale | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unused lines of credit, wholesale | 1,270,000,000 | 1,320,000,000 | |
Financing receivable individually evaluated for impairment | 0 | 0 | |
Financing receivable on non-accrual status | 0 | 0 | |
Retail | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Approved but unfunded retail loans | 166,300,000 | 177,900,000 | |
Financing receivable individually evaluated for impairment | $ 0 | $ 0 | |
Finance receivables | Geographic Concentration Risk | Texas | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration risk (as a percent) | 11.00% | 11.00% |
Finance Receivables (Finance Re
Finance Receivables (Finance Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, gross | $ 7,157,557 | $ 7,008,801 | $ 7,015,331 | $ 6,560,245 | $ 6,110,256 |
Allowance for credit losses | (192,471) | (173,343) | (147,178) | (127,364) | (110,693) |
Total finance receivables, net | 6,965,086 | 6,835,458 | 6,868,153 | 6,432,881 | 5,999,563 |
United States | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, gross | 6,840,623 | ||||
Canada | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, gross | 316,934 | ||||
Wholesale | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, gross | 1,016,957 | 1,026,590 | 1,023,860 | 952,321 | 845,212 |
Allowance for credit losses | (6,217) | (6,533) | (7,858) | (5,339) | |
Wholesale | United States | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, gross | 939,621 | 961,150 | 965,379 | 903,380 | 800,491 |
Wholesale | Canada | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, gross | 77,336 | 65,440 | 58,481 | 48,941 | 44,721 |
Retail | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, gross | 6,140,600 | 5,982,211 | 5,991,471 | 5,607,924 | 5,265,044 |
Allowance for credit losses | (186,254) | (166,810) | (139,320) | (122,025) | |
Retail | United States | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, gross | 5,901,002 | 5,769,410 | 5,803,071 | 5,398,006 | 5,051,245 |
Retail | Canada | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, gross | $ 239,598 | $ 212,801 | $ 188,400 | $ 209,918 | $ 213,799 |
Finance Receivables (Contractua
Finance Receivables (Contractual Maturities Of Finance Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2,018 | $ 2,144,991 | ||||
2,019 | 1,212,136 | ||||
2,020 | 1,307,617 | ||||
2,021 | 1,311,778 | ||||
2,022 | 1,165,976 | ||||
Thereafter | 15,059 | ||||
Total finance receivables | 7,157,557 | $ 7,008,801 | $ 7,015,331 | $ 6,560,245 | $ 6,110,256 |
United States | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2,018 | 2,018,646 | ||||
2,019 | 1,160,372 | ||||
2,020 | 1,251,444 | ||||
2,021 | 1,250,821 | ||||
2,022 | 1,144,281 | ||||
Thereafter | 15,059 | ||||
Total finance receivables | 6,840,623 | ||||
Canada | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2,018 | 126,345 | ||||
2,019 | 51,764 | ||||
2,020 | 56,173 | ||||
2,021 | 60,957 | ||||
2,022 | 21,695 | ||||
Thereafter | 0 | ||||
Total finance receivables | $ 316,934 |
Finance Receivables (Changes In
Finance Receivables (Changes In The Allowance For Finance Credit Losses On Finance Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | $ 173,343 | $ 147,178 | $ 127,364 |
Provision for credit losses | 132,444 | 136,617 | 101,345 |
Charge-offs | (160,972) | (148,566) | (123,911) |
Recoveries | 47,656 | 41,405 | 42,380 |
Other | (3,291) | ||
Balance, end of period | 192,471 | 173,343 | 147,178 |
Retail | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 166,810 | 139,320 | 122,025 |
Provision for credit losses | 132,760 | 137,942 | 98,826 |
Charge-offs | (160,972) | (148,566) | (123,911) |
Recoveries | 47,656 | 41,405 | 42,380 |
Other | (3,291) | ||
Balance, end of period | 186,254 | 166,810 | 139,320 |
Wholesale | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance, beginning of period | 6,533 | 7,858 | 5,339 |
Provision for credit losses | (316) | (1,325) | 2,519 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Other | 0 | ||
Balance, end of period | $ 6,217 | $ 6,533 | $ 7,858 |
Finance Receivables (Allowance
Finance Receivables (Allowance For Credit Losses And Finance Receivables By Portfolio, Individually And Collectively Evaluated For Impairment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Individually evaluated for impairment | $ 0 | $ 0 | |||
Collectively evaluated for impairment | 192,471 | 173,343 | |||
Total allowance for credit losses | 192,471 | 173,343 | $ 147,178 | $ 127,364 | $ 110,693 |
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 7,157,557 | 7,008,801 | |||
Total finance receivables | 7,157,557 | 7,008,801 | 7,015,331 | 6,560,245 | 6,110,256 |
Retail | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 186,254 | 166,810 | |||
Total allowance for credit losses | 186,254 | 166,810 | 139,320 | 122,025 | |
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 6,140,600 | 5,982,211 | |||
Total finance receivables | 6,140,600 | 5,982,211 | 5,991,471 | 5,607,924 | 5,265,044 |
Wholesale | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 6,217 | 6,533 | |||
Total allowance for credit losses | 6,217 | 6,533 | 7,858 | 5,339 | |
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 1,016,957 | 1,026,590 | |||
Total finance receivables | $ 1,016,957 | $ 1,026,590 | $ 1,023,860 | $ 952,321 | $ 845,212 |
Finance Receivables (Aging Of P
Finance Receivables (Aging Of Past Due Finance Receivables Including Non-Accrual Status Finance Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current | $ 6,929,473 | $ 6,785,813 | |||
Total Past Due | 228,084 | 222,988 | |||
Total finance receivables | 7,157,557 | 7,008,801 | $ 7,015,331 | $ 6,560,245 | $ 6,110,256 |
31-60 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 140,224 | 132,302 | |||
61-90 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 47,784 | 49,961 | |||
Greater than 90 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 40,076 | 40,725 | |||
Retail | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current | 5,913,473 | 5,760,818 | |||
Total Past Due | 227,127 | 221,393 | |||
Total finance receivables | 6,140,600 | 5,982,211 | 5,991,471 | 5,607,924 | 5,265,044 |
Retail | 31-60 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 139,629 | 131,302 | |||
Retail | 61-90 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 47,539 | 49,642 | |||
Retail | Greater than 90 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 39,959 | 40,449 | |||
Wholesale | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current | 1,016,000 | 1,024,995 | |||
Total Past Due | 957 | 1,595 | |||
Total finance receivables | 1,016,957 | 1,026,590 | $ 1,023,860 | $ 952,321 | $ 845,212 |
Wholesale | 31-60 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 595 | 1,000 | |||
Wholesale | 61-90 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 245 | 319 | |||
Wholesale | Greater than 90 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | $ 117 | $ 276 |
Finance Receivables (Wholesale
Finance Receivables (Wholesale And Retail Receivables Accruing Interest And Are Past Due) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Receivables past due and accruing interest | $ 40,076 | $ 40,725 | $ 32,869 | $ 28,918 | $ 24,801 |
United States | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Receivables past due and accruing interest | 39,051 | 39,399 | 31,677 | 27,800 | 23,770 |
Canada | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Receivables past due and accruing interest | $ 1,025 | $ 1,326 | $ 1,192 | $ 1,118 | $ 1,031 |
Finance Receivables (Investment
Finance Receivables (Investment Of Wholesale Finance Receivables By Internal And External Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing receivable, gross | $ 7,157,557 | $ 7,008,801 | $ 7,015,331 | $ 6,560,245 | $ 6,110,256 |
Retail | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing receivable, gross | 6,140,600 | 5,982,211 | 5,991,471 | 5,607,924 | 5,265,044 |
Retail | Prime | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing receivable, gross | 4,966,193 | 4,768,420 | |||
Retail | Sub-prime | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing receivable, gross | 1,174,407 | 1,213,791 | |||
Wholesale | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing receivable, gross | 1,016,957 | 1,026,590 | $ 1,023,860 | $ 952,321 | $ 845,212 |
Wholesale | Doubtful | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing receivable, gross | 688 | 1,333 | |||
Wholesale | Substandard | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing receivable, gross | 3,837 | 1,773 | |||
Wholesale | Special Mention | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing receivable, gross | 26,866 | 30,152 | |||
Wholesale | Medium Risk | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing receivable, gross | 9,917 | 14,620 | |||
Wholesale | Low Risk | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing receivable, gross | $ 975,649 | $ 978,712 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 488,432 | $ 531,519 |
Marketable securities | 48,006 | 43,638 |
Derivatives | 1,769 | 29,034 |
Total | 538,207 | 604,191 |
Derivatives | 21,308 | 142 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 358,500 | 426,266 |
Marketable securities | 48,006 | 38,119 |
Derivatives | 0 | 0 |
Total | 406,506 | 464,385 |
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 129,932 | 105,253 |
Marketable securities | 0 | 5,519 |
Derivatives | 1,769 | 29,034 |
Total | 131,701 | 139,806 |
Derivatives | 21,308 | 142 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Derivatives | 0 | 0 |
Total | 0 | 0 |
Derivatives | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Fair Value Adjustment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Repossessed inventory at the lower of cost or net realizable value | 9,000 | 9,300 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Repossessed inventory at the lower of cost or net realizable value | $ 19,600 | $ 19,300 |
Fair Value Fair Value (Summary
Fair Value Fair Value (Summary of Fair Value and Carrying Value of Company Financial Instruments) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Estimate of Fair Value Measurement | ||
Assets: | ||
Finance receivables, net | $ 7,021,549 | $ 6,921,037 |
Estimate of Fair Value Measurement | Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE | ||
Liabilities: | ||
Debt instrument, fair value | 279,457 | 0 |
Estimate of Fair Value Measurement | Secured Debt | Asset-backed Canadian commercial paper conduit facility | ||
Liabilities: | ||
Debt instrument, fair value | 174,779 | 149,338 |
Estimate of Fair Value Measurement | Secured Debt | Term asset-backed securitization debt, VIE | ||
Liabilities: | ||
Debt instrument, fair value | 351,767 | 797,688 |
Estimate of Fair Value Measurement | Medium-term Notes | ||
Liabilities: | ||
Debt instrument, fair value | 4,189,092 | 4,139,462 |
Estimate of Fair Value Measurement | Senior Notes | ||
Liabilities: | ||
Debt instrument, fair value | 784,433 | 744,552 |
Estimate of Fair Value Measurement | Unsecured Commercial Paper | ||
Liabilities: | ||
Unsecured commercial paper | 1,273,482 | 1,055,708 |
Carrying Value | ||
Assets: | ||
Finance receivables, net | 6,965,086 | 6,835,458 |
Carrying Value | Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE | ||
Liabilities: | ||
Debt instrument, fair value | 279,457 | 0 |
Carrying Value | Secured Debt | Asset-backed Canadian commercial paper conduit facility | ||
Liabilities: | ||
Debt instrument, fair value | 174,779 | 149,338 |
Carrying Value | Secured Debt | Term asset-backed securitization debt, VIE | ||
Liabilities: | ||
Debt instrument, fair value | 352,624 | 796,275 |
Carrying Value | Medium-term Notes | ||
Liabilities: | ||
Debt instrument, fair value | 4,165,706 | 4,064,940 |
Carrying Value | Senior Notes | ||
Liabilities: | ||
Debt instrument, fair value | 741,961 | 741,306 |
Carrying Value | Unsecured Commercial Paper | ||
Liabilities: | ||
Unsecured commercial paper | $ 1,273,482 | $ 1,055,708 |
Derivative Instruments and He72
Derivative Instruments and Hedging Activities (Schedule Of Derivative Instrument Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Value | $ 676,639 | $ 555,543 |
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset, Fair Value | 1,388 | 28,705 |
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability, Fair Value | 21,308 | 142 |
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Foreign currency contracts | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Notional Value | 675,724 | 554,551 |
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Foreign currency contracts | Other Current Assets | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Asset, Fair Value | 1,388 | 28,528 |
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Foreign currency contracts | Accrued Liabilities | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liability, Fair Value | 21,239 | 142 |
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Commodities contracts | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Notional Value | 915 | 992 |
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Commodities contracts | Other Current Assets | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Asset, Fair Value | 0 | 177 |
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Commodities contracts | Accrued Liabilities | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liability, Fair Value | 69 | 0 |
Derivatives Not Designated As Hedging Instruments Under ASC Topic 815 | ||
Derivatives, Fair Value [Line Items] | ||
Notional Value | 4,532 | 5,025 |
Derivatives Not Designated As Hedging Instruments Under ASC Topic 815 | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset, Fair Value | 381 | 329 |
Derivatives Not Designated As Hedging Instruments Under ASC Topic 815 | Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability, Fair Value | 0 | 0 |
Derivatives Not Designated As Hedging Instruments Under ASC Topic 815 | Commodities contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Value | 4,532 | 5,025 |
Derivatives Not Designated As Hedging Instruments Under ASC Topic 815 | Commodities contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset, Fair Value | 381 | 329 |
Derivatives Not Designated As Hedging Instruments Under ASC Topic 815 | Commodities contracts | Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability, Fair Value | $ 0 | $ 0 |
Derivative Instruments and He73
Derivative Instruments and Hedging Activities (Gain Loss On Derivative Cash Flow Hedges Recognized In OCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Cash flow ineffectiveness | $ 0 | $ 0 | |
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Amount of Gain/(Loss) Recognized in OCI, before tax | (54,929) | 28,176 | $ 38,008 |
Amount of Gain/(Loss) Reclassified from AOCL into Income | (7,644) | 17,633 | 58,902 |
Expected to be Reclassified Over the Next Twelve Months | (20,753) | ||
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Cash Flow Hedging | Foreign currency contracts | |||
Derivative [Line Items] | |||
Amount of Gain/(Loss) Recognized in OCI, before tax | (53,964) | 28,099 | 45,810 |
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Cash Flow Hedging | Foreign currency contracts | Cost of Sales | |||
Derivative [Line Items] | |||
Amount of Gain/(Loss) Reclassified from AOCL into Income | (7,202) | 18,253 | 59,730 |
Expected to be Reclassified Over the Next Twelve Months | (20,178) | ||
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Cash Flow Hedging | Commodities contracts | |||
Derivative [Line Items] | |||
Amount of Gain/(Loss) Recognized in OCI, before tax | (246) | 77 | (421) |
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Cash Flow Hedging | Commodities contracts | Cost of Sales | |||
Derivative [Line Items] | |||
Amount of Gain/(Loss) Reclassified from AOCL into Income | 0 | (258) | (677) |
Expected to be Reclassified Over the Next Twelve Months | (69) | ||
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Cash Flow Hedging | Treasury rate locks | |||
Derivative [Line Items] | |||
Amount of Gain/(Loss) Recognized in OCI, before tax | (719) | 0 | (7,381) |
Derivatives Designated As Hedging Instruments Under ASC Topic 815 | Cash Flow Hedging | Treasury rate locks | Interest Expense | |||
Derivative [Line Items] | |||
Amount of Gain/(Loss) Reclassified from AOCL into Income | (442) | $ (362) | $ (151) |
Expected to be Reclassified Over the Next Twelve Months | $ (506) |
Derivative Instruments and He74
Derivative Instruments and Hedging Activities (Gain Loss Recognized In Income On Hedged Derivatives) (Details) - Derivatives Not Designated As Hedging Instruments Under ASC Topic 815 - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income on Derivative | $ 503 | $ 167 | $ (648) |
Commodities contracts | Cost of Sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income on Derivative | $ 503 | $ 167 | $ (648) |
Accumulated Other Comprehensi75
Accumulated Other Comprehensive Loss (Changes in Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ 1,920,158 | $ 1,839,654 | $ 2,909,286 |
Other comprehensive income (loss) before reclassifications | 23,433 | 54,363 | (116,986) |
Income tax | 8,060 | (24,644) | 18,384 |
Net other comprehensive income (loss) before reclassifications | 31,493 | 29,719 | (98,602) |
Reclassifications | 53,745 | 31,934 | (2,636) |
Net reclassifications | 33,839 | 20,105 | (1,660) |
Total other comprehensive income (loss), net of tax | 65,332 | 49,824 | (100,262) |
Balance, end of period | 1,844,277 | 1,920,158 | 1,839,654 |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (565,381) | (615,205) | (514,943) |
Income tax benefit | (19,906) | (11,829) | 976 |
Total other comprehensive income (loss), net of tax | 65,332 | 49,824 | (100,262) |
Balance, end of period | (500,049) | (565,381) | (615,205) |
Foreign currency translation adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (68,132) | (58,844) | (3,482) |
Other comprehensive income (loss) before reclassifications | 52,145 | (7,591) | (48,309) |
Income tax | (5,865) | (1,697) | (7,053) |
Net other comprehensive income (loss) before reclassifications | 46,280 | (9,288) | (55,362) |
Reclassifications | 0 | 0 | 0 |
Income tax benefit | 0 | 0 | 0 |
Net reclassifications | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | 46,280 | (9,288) | (55,362) |
Balance, end of period | (21,852) | (68,132) | (58,844) |
Marketable securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (1,194) | (1,094) | (700) |
Other comprehensive income (loss) before reclassifications | 1,896 | (159) | (626) |
Income tax | (702) | 59 | 232 |
Net other comprehensive income (loss) before reclassifications | 1,194 | (100) | (394) |
Reclassifications | 0 | 0 | 0 |
Income tax benefit | 0 | 0 | 0 |
Net reclassifications | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | 1,194 | (100) | (394) |
Balance, end of period | 0 | (1,194) | (1,094) |
Derivative financial instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 12,524 | 5,886 | 19,042 |
Other comprehensive income (loss) before reclassifications | (54,929) | 28,176 | 38,008 |
Income tax | 20,338 | (10,436) | (14,079) |
Net other comprehensive income (loss) before reclassifications | (34,591) | 17,740 | 23,929 |
Reclassifications | 7,644 | (17,633) | (58,902) |
Income tax benefit | (2,831) | 6,531 | 21,817 |
Net reclassifications | 4,813 | (11,102) | (37,085) |
Total other comprehensive income (loss), net of tax | (29,778) | 6,638 | (13,156) |
Balance, end of period | (17,254) | 12,524 | 5,886 |
Derivative financial instruments | Foreign currency contracts | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassifications | 7,202 | (18,253) | (59,730) |
Derivative financial instruments | Commodity contracts | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassifications | 258 | 677 | |
Derivative financial instruments | Treasury rate locks | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassifications | 442 | 362 | 151 |
Pension and postretirement benefit plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (508,579) | (561,153) | (529,803) |
Other comprehensive income (loss) before reclassifications | 24,321 | 33,937 | (106,059) |
Income tax | (5,711) | (12,570) | 39,284 |
Net other comprehensive income (loss) before reclassifications | 18,610 | 21,367 | (66,775) |
Reclassifications | 46,101 | 49,567 | 56,266 |
Income tax benefit | (17,075) | (18,360) | (20,841) |
Net reclassifications | 29,026 | 31,207 | 35,425 |
Total other comprehensive income (loss), net of tax | 47,636 | 52,574 | (31,350) |
Balance, end of period | (460,943) | (508,579) | (561,153) |
Pension and postretirement benefit plans; Prior service credits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassifications | (1,153) | (1,784) | (2,782) |
Pension and postretirement benefit plans; Actuarial losses | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassifications | $ 47,254 | 49,888 | 58,680 |
Pension and postretirement benefit plans; Curtailment and settlement losses | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassifications | $ 1,463 | $ 368 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2017USD ($) | May 31, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 25, 2017USD ($) | |
Debt Instrument [Line Items] | |||||||
Loss on debt extinguishment | $ 0 | $ 118,000 | $ 1,099,000 | ||||
Senior Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized discount and debt issuance costs | $ 19,821,000 | 21,242,000 | |||||
6.80% Medium-term notes due 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 6.80% | ||||||
6.80% Medium-term notes due 2018 | Medium-term Notes | |||||||
Debt Instrument [Line Items] | |||||||
Repurchased amount of notes | 1,200,000 | 9,300,000 | |||||
Stated interest rate | 6.80% | ||||||
Loss on debt extinguishment | $ 100,000 | $ 1,100,000 | |||||
2.70% Medium-term notes due in 2017 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2.70% | ||||||
2.70% Medium-term notes due in 2017 | Medium-term Notes | |||||||
Debt Instrument [Line Items] | |||||||
Extinguishment of debt, amount | $ 400,000,000 | ||||||
Extinguishment of debt, stated interest rate | 2.70% | ||||||
1.55% Medium-term notes due in 2017 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 1.55% | ||||||
1.55% Medium-term notes due in 2017 | Medium-term Notes | |||||||
Debt Instrument [Line Items] | |||||||
Extinguishment of debt, amount | $ 400,000,000 | ||||||
Extinguishment of debt, stated interest rate | 1.55% | ||||||
Line of Credit | Global Credit Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Covenant, debt to equity ratio | 10 | ||||||
Covenant, debt to equity ratio, excluding subsidiary debt | 0.70 | ||||||
Line of Credit | Credit Facility Maturing April 2021, 5 Year Term | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 5 years | ||||||
Line of credit, maximum borrowing capacity | $ 765,000,000 | ||||||
Line of Credit | Credit Facility Maturing April 2019, 5 Year Term | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 5 years | ||||||
Line of credit, maximum borrowing capacity | $ 675,000,000 | ||||||
Line of Credit | Credit Facility Maturing April 2018, 364 Day Term [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 364 days | ||||||
Line of credit, maximum borrowing capacity | $ 100,000,000 | ||||||
Line of Credit | Credit Facility Expiring May 2018 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit, maximum borrowing capacity | $ 25,000,000 | ||||||
Unsecured Commercial Paper | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 365 days | ||||||
Weighted-average interest rate of commercial paper | 1.48% | 0.93% |
Debt (Debt With Contractual Ter
Debt (Debt With Contractual Term Less Than One Year) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term Debt [Line Items] | ||
Short-term debt | $ 1,273,482 | $ 1,055,708 |
Unsecured Commercial Paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 1,273,482 | $ 1,055,708 |
Debt (Debt With A Contractual T
Debt (Debt With A Contractual Term Greater Than One Year) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt, net | $ 5,714,527 | $ 5,751,859 |
Current portion of long-term debt, net | (1,127,269) | (1,084,884) |
Long-term debt | $ 4,587,258 | $ 4,666,975 |
2.70% Medium-term notes due in 2017 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.70% | |
1.55% Medium-term notes due in 2017 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 1.55% | |
6.80% Medium-term notes due 2018 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.80% | |
2.40% Medium-term notes due 2019 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.40% | |
2.25% Medium-term notes due 2019 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.25% | |
2.15% Medium-term notes due 2020 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.15% | |
Two Point Four Percent Medium-Term Notes Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.40% | |
Two Point Eighty-five Percent Medium-Term Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.85% | |
Two Point Fifty-five Percent Medium-Term Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.55% | |
3.50% Senior unsecured notes due in 2025 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.50% | |
4.625% Senior unsecured notes due in 2045 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.625% | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Less: unamortized discount and debt issuance costs | $ (461) | $ (1,480) |
Long-term debt, net | 806,860 | 945,613 |
Secured Debt | Asset-backed Canadian commercial paper conduit facility | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 174,779 | 149,338 |
Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 279,457 | 0 |
Secured Debt | Term asset-backed securitization debt, VIE | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 353,085 | 797,755 |
Senior Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Less: unamortized discount and debt issuance costs | (19,821) | (21,242) |
Senior Unsecured Debt | 2.70% Medium-term notes due in 2017 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 0 | 400,000 |
Senior Unsecured Debt | 1.55% Medium-term notes due in 2017 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 0 | 400,000 |
Senior Unsecured Debt | 6.80% Medium-term notes due 2018 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 877,488 | 877,488 |
Senior Unsecured Debt | 2.40% Medium-term notes due 2019 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 600,000 | 600,000 |
Senior Unsecured Debt | 2.25% Medium-term notes due 2019 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 600,000 | 600,000 |
Senior Unsecured Debt | Floating-Rate Medium Term Notes due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 150,000 | 0 |
Senior Unsecured Debt | 2.15% Medium-term notes due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 600,000 | 600,000 |
Senior Unsecured Debt | Two Point Four Percent Medium-Term Notes Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 350,000 | 0 |
Senior Unsecured Debt | Two Point Eighty-five Percent Medium-Term Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 600,000 | 600,000 |
Senior Unsecured Debt | Two Point Fifty-five Percent Medium-Term Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 400,000 | 0 |
Senior Unsecured Debt | 3.50% Senior unsecured notes due in 2025 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 450,000 | 450,000 |
Senior Unsecured Debt | 4.625% Senior unsecured notes due in 2045 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 300,000 | $ 300,000 |
Debt (Schedule of Maturities of
Debt (Schedule of Maturities of Long-term debt) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 2,405,569 |
2,019 | 1,594,518 |
2,020 | 1,098,489 |
2,021 | 721,705 |
2,022 | 438,010 |
Thereafter | 750,000 |
Total | $ 7,008,291 |
Asset-Backed Financing (Assets
Asset-Backed Financing (Assets And Liabilities Of Variable Interest Entities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Total assets | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | $ 978,005 | $ 1,100,836 |
Total assets | Term asset-backed securitizations | Consolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 461,794 | 927,845 |
Total assets | Asset-backed U.S. commercial paper conduit facility | Consolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 305,813 | 329 |
Total assets | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 210,398 | 172,662 |
Finance receivables | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 943,522 | 1,059,523 |
Finance receivables | Term asset-backed securitizations | Consolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 439,301 | 893,804 |
Finance receivables | Asset-backed U.S. commercial paper conduit facility | Consolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 300,530 | 0 |
Finance receivables | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 203,691 | 165,719 |
Allowance for credit losses | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | (26,824) | (29,041) |
Allowance for credit losses | Term asset-backed securitizations | Consolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | (13,686) | (25,468) |
Allowance for credit losses | Asset-backed U.S. commercial paper conduit facility | Consolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | (9,392) | 0 |
Allowance for credit losses | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | (3,746) | (3,573) |
Restricted cash | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 58,689 | 67,147 |
Restricted cash | Term asset-backed securitizations | Consolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 34,919 | 57,057 |
Restricted cash | Asset-backed U.S. commercial paper conduit facility | Consolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 13,787 | 0 |
Restricted cash | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 9,983 | 10,090 |
Other assets | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 2,618 | 3,207 |
Other assets | Term asset-backed securitizations | Consolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 1,260 | 2,452 |
Other assets | Asset-backed U.S. commercial paper conduit facility | Consolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 888 | 329 |
Other assets | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 470 | 426 |
Asset-backed debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, liabilities, carrying amount | 806,860 | 945,613 |
Asset-backed debt | Term asset-backed securitizations | Consolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, liabilities, carrying amount | 352,624 | 796,275 |
Asset-backed debt | Asset-backed U.S. commercial paper conduit facility | Consolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, liabilities, carrying amount | 279,457 | 0 |
Asset-backed debt | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, liabilities, carrying amount | $ 174,779 | $ 149,338 |
Asset-Backed Financing (Narrati
Asset-Backed Financing (Narrative) (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2016CAD | Jun. 26, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 14, 2016USD ($) | |
Variable Interest Entity [Line Items] | ||||||
Company issued secured notes, net of discount and issuance costs | $ 5,714,527,000 | $ 5,751,859,000 | ||||
Financial Services interest expense | 180,193,000 | 173,756,000 | $ 161,983,000 | |||
Servicing and ancillary fees | 1,900,000 | 1,600,000 | ||||
Secured Debt | ||||||
Variable Interest Entity [Line Items] | ||||||
Company issued secured notes, net of discount and issuance costs | 806,860,000 | 945,613,000 | ||||
Variable Interest Entity, Primary Beneficiary | Secured Debt | ||||||
Variable Interest Entity [Line Items] | ||||||
Financial Services interest expense | $ 7,900,000 | $ 13,100,000 | ||||
Weighted average interest rate at date of issuance | 1.53% | 1.31% | ||||
Variable Interest Entity, Primary Beneficiary | Secured Debt | Secured Notes Issued January 2015 | ||||||
Variable Interest Entity [Line Items] | ||||||
Company issued secured notes | $ 700,000,000 | |||||
Weighted average interest rate at date of issuance | 0.89% | |||||
Variable Interest Entity, Primary Beneficiary | Secured Debt | Term asset-backed securitizations | ||||||
Variable Interest Entity [Line Items] | ||||||
Company issued secured notes | $ 500,000,000 | |||||
Weighted average interest rate at date of issuance | 0.88% | |||||
Variable Interest Entity, Primary Beneficiary | Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE | Line of Credit | ||||||
Variable Interest Entity [Line Items] | ||||||
Financial Services interest expense | $ 7,100,000 | $ 1,300,000 | ||||
Weighted average interest rate at date of issuance | 2.33% | |||||
Variable Interest Entity, Primary Beneficiary | Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE | U.S. Line of Credit | ||||||
Variable Interest Entity [Line Items] | ||||||
Company issued secured notes | $ 383,300,000 | |||||
Line of credit, maximum borrowing capacity | $ 900,000,000 | |||||
Borrowings outstanding under conduit facility | 0 | |||||
Debt instrument, term | 5 years | |||||
Transfers on finance receivables | $ 429,700,000 | |||||
Variable Interest Entity, Primary Beneficiary | Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE, Facility 1 | U.S. Line of Credit | ||||||
Variable Interest Entity [Line Items] | ||||||
Line of credit, maximum borrowing capacity | 600,000,000 | |||||
Variable Interest Entity, Primary Beneficiary | Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE, Facility 2 | U.S. Line of Credit | ||||||
Variable Interest Entity [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 300,000,000 | |||||
Unconsolidated VIEs | ||||||
Variable Interest Entity [Line Items] | ||||||
Principal balance of finance receivable | $ 301,800,000 | |||||
Gain on sale of finance receivable | 9,300,000 | |||||
Cash proceeds from sale of financial asset | $ 312,600,000 | |||||
Unpaid principal balance of the retail motorcycle finance receivables | 146,400,000 | |||||
Unconsolidated VIEs | Secured Debt | Asset-backed Canadian commercial paper conduit facility | ||||||
Variable Interest Entity [Line Items] | ||||||
Financial Services interest expense | $ 2,600,000 | $ 2,700,000 | ||||
Weighted average interest rate at date of issuance | 1.96% | 1.84% | ||||
Unconsolidated VIEs | Secured Debt | Asset-backed Canadian commercial paper conduit facility | Foreign Line of Credit | ||||||
Variable Interest Entity [Line Items] | ||||||
Line of credit, maximum borrowing capacity | CAD | CAD 220,000,000 | |||||
Debt instrument, term | 5 years | |||||
Transfers on finance receivables | $ 105,400,000 | $ 71,100,000 | ||||
Amount transferred, face amount | 87,000,000 | $ 62,400,000 | ||||
VIE, maximum loss exposure, amount | $ 35,600,000 |
Asset-Backed Financing (Schedul
Asset-Backed Financing (Schedule Of Secured Notes With Related Maturity) (Details) - Variable Interest Entity, Primary Beneficiary - Secured Debt - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Weighted average interest rate at date of issuance | 1.53% | 1.31% |
Secured Notes Issued May 2015 | ||
Debt Instrument [Line Items] | ||
Company issued secured notes | $ 500,000,000 | |
Weighted average interest rate at date of issuance | 0.88% | |
Secured Notes Issued January 2015 | ||
Debt Instrument [Line Items] | ||
Company issued secured notes | $ 700,000,000 | |
Weighted average interest rate at date of issuance | 0.89% | |
Secured Notes Issued April 2014 | ||
Debt Instrument [Line Items] | ||
Company issued secured notes | $ 850,000,000 | |
Weighted average interest rate at date of issuance | 0.66% | |
Secured Notes Issued April 2013 | ||
Debt Instrument [Line Items] | ||
Company issued secured notes | $ 650,000,000 | |
Weighted average interest rate at date of issuance | 0.57% |
Asset-Backed Financing (Servici
Asset-Backed Financing (Servicing Activities) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | ||
Current unpaid balance - total serviced retail motorcycle finance receivables | $ 5,993,185 | $ 5,839,467 |
Current unpaid balance - off-balance sheet retail motorcycle finance receivables | 146,425 | 236,706 |
Current unpaid balance - on-balance sheet retail motorcycle finance receivables | 6,139,610 | 6,076,173 |
Delinquent - on-balance sheet retail motorcycle finance receivables | 227,127 | 221,393 |
Delinquent - off-balance sheet retail motorcycle finance receivables | 2,106 | 1,858 |
Delinquent - total serviced retail motorcycle finance receivables | 229,233 | 223,251 |
Credit losses net of recoveries - on-balance sheet retail motorcycle finance receivables | 113,316 | 107,161 |
Credit losses net of recoveries - off-balance sheet retail motorcycle finance receivables | 1,191 | 820 |
Credit losses net of recoveries - total serviced retail motorcycle finance receivables | $ 114,507 | $ 107,981 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 53,100 | |
Tax Credit Carryforward [Line Items] | ||
Valuation allowance | 21,561 | $ 30,953 |
Unrecognized tax benefits affecting effective tax rate | 63,100 | |
Interest and penalties associated with unrecognized tax benefits (Operations) | (2,800) | |
Interest and penalties associated with unrecognized tax benefits (Balance Sheet) | 30,900 | |
State and Local Jurisdiction | ||
Tax Credit Carryforward [Line Items] | ||
Net operating loss carryforwards | 291,100 | |
Deferred tax assets, operating loss and tax credit carryforwards | 27,100 | |
State and Local Jurisdiction | Wisconsin | ||
Tax Credit Carryforward [Line Items] | ||
Valuation allowance | 4,500 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 100 | |
State and Local Jurisdiction | Wisconsin Research And Development Credit | Wisconsin | ||
Tax Credit Carryforward [Line Items] | ||
Net capital loss carryforwards | 11,300 | |
Foreign Tax Authority | ||
Tax Credit Carryforward [Line Items] | ||
Net operating loss carryforwards | 6,100 | |
Deferred tax assets, operating loss and tax credit carryforwards | 11,000 | |
Operating loss carryforwards, valuation allowance | 17,100 | |
Operating loss carryforward, increase in valuation allowance | $ 9,200 |
Income Taxes (Provision For Inc
Income Taxes (Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current, Federal | $ 245,189 | $ 284,489 | $ 363,803 |
Current, State | 24,898 | 28,406 | 37,811 |
Current, Foreign | 21,138 | 19,017 | 12,826 |
Total Current | 291,225 | 331,912 | 414,440 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Deferred, Federal | 47,046 | (4,250) | (15,474) |
Deferred, State | 2,688 | 7,038 | (2,264) |
Deferred, Foreign | 1,121 | (2,953) | 1,254 |
Total, Deferred | 50,855 | (165) | (16,484) |
Total Current and Deferred | $ 342,080 | $ 331,747 | $ 397,956 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income Before Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 788,878 | $ 954,138 | $ 1,101,427 |
Foreign | 74,961 | 69,773 | 48,736 |
Income before provision for income taxes | $ 863,839 | $ 1,023,911 | $ 1,150,163 |
Income Taxes (Provision For I87
Income Taxes (Provision For Income Tax Rate To Statutory Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Provision at statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 1.90% | 1.80% | 1.80% |
Foreign rate differential | (0.80%) | (0.60%) | (0.40%) |
Domestic manufacturing deduction | (2.20%) | (2.10%) | (2.10%) |
Research and development credit | (0.70%) | (0.40%) | (0.40%) |
Unrecognized tax benefits including interest and penalties | 2.30% | (1.30%) | 1.10% |
Valuation allowance adjustments | (0.10%) | 0.10% | (0.10%) |
Deferred remeasurement for rate change | 5.50% | 0.00% | 0.00% |
Tax reform territorial tax | (0.10%) | 0.00% | 0.00% |
Adjustments for previously accrued taxes | (1.20%) | 0.20% | (0.10%) |
Other | 0.00% | (0.30%) | (0.20%) |
Provision for income taxes | 39.60% | 32.40% | 34.60% |
Income Taxes (Principal Compone
Income Taxes (Principal Components Of The Company's Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Accruals not yet tax deductible | $ 92,158 | $ 141,961 |
Pension and postretirement benefit plan obligations | 37,357 | 88,741 |
Stock compensation | 12,669 | 19,051 |
Net operating loss carryforward | 33,171 | 33,587 |
Valuation allowance | (21,561) | (30,953) |
Other, net | 52,422 | 56,903 |
Deferred tax assets, net | 206,216 | 309,290 |
Deferred tax liabilities: | ||
Depreciation, tax in excess of book | (88,989) | (139,268) |
Other | (8,154) | (2,293) |
Deferred tax liabilities, net | (97,143) | (141,561) |
Total | $ 109,073 | $ 167,729 |
Income Taxes (Changes In Gross
Income Taxes (Changes In Gross Liability For Unrecognized Tax Benefits Excluding Interest And Penalties) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits, beginning of period | $ 55,539 | $ 73,100 |
Increase in unrecognized tax benefits for tax positions taken in a prior period | 9,513 | 2,828 |
Decrease in unrecognized tax benefits for tax positions taken in a prior period | (3,749) | (21,061) |
Increase in unrecognized tax benefits for tax positions taken in the current period | 13,779 | 7,402 |
Statute lapses | 0 | (1,907) |
Settlements with taxing authorities | (2,852) | (4,823) |
Unrecognized tax benefits, end of period | $ 72,230 | $ 55,539 |
Employee Benefit Plans and Ot90
Employee Benefit Plans and Other Postretirement Benefits (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Retirement age threshold | 55 years | |||
Postretirement benefits eligibility, years of service requirement | 10 years | |||
Period over which asset gain (losses) are amortized | 5 years | |||
Company contributions | $ 19,000 | $ 18,200 | $ 18,000 | |
Pension and SERPA Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | 2,100,000 | 1,900,000 | ||
Projected benefit obligations | $ 2,201,021 | $ 1,986,435 | $ 2,009,000 | |
Expected return on plan assets | 7.25% | 7.50% | 7.75% | |
Company contributions | $ 25,000 | $ 25,000 | ||
Pension Plan Assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Investment in company common stock - shares | 1,273,592 | 1,273,592 | ||
Investment in company common stock - value | $ 64,800 | $ 74,300 | ||
Company contributions | $ 25,000 | |||
Pension Plan Assets | Scenario, Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected return on plan assets | 7.25% | |||
Pension Plan Assets | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation | 63.00% | |||
Pension Plan Assets | Fixed Income Securities and Cash and Cash Equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation | 37.00% | |||
Postretirement Health Coverage | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligations | $ 338,488 | $ 346,431 | $ 354,739 | |
Expected return on plan assets | 7.25% | 7.50% | 7.70% | |
Company contributions | $ 15,000 | $ 0 | ||
Postretirement Health Coverage | Scenario, Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected return on plan assets | 7.25% | |||
Postretirement Health Coverage | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation | 69.00% | |||
Postretirement Health Coverage | Fixed Income Securities and Cash and Cash Equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation | 31.00% |
Employee Benefit Plans and Ot91
Employee Benefit Plans and Other Postretirement Benefits (Schedule Of Obligation And Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in plan assets: | |||
Prepaid benefit costs (long-term assets) | $ 19,816 | $ 0 | |
Pension and SERPA Benefits | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of period | 1,986,435 | 2,009,000 | |
Service cost | 31,584 | 33,437 | $ 40,039 |
Interest cost | 85,076 | 90,827 | 87,345 |
Actuarial losses (gains) | 195,444 | 13,481 | |
Plan participant contributions | 0 | 0 | |
Plan amendments | (13,227) | 0 | |
Benefits paid | (84,291) | (160,310) | |
Benefit obligation, end of period | 2,201,021 | 1,986,435 | 2,009,000 |
Change in plan assets: | |||
Fair value of plan assets, beginning of period | 1,899,889 | 1,841,967 | |
Actual return on plan assets | 320,144 | 188,376 | |
Company contributions | 25,000 | 25,000 | |
Plan participant contributions | 0 | 0 | |
Benefits paid | 82,148 | 155,454 | |
Fair value of plan assets, end of period | 2,162,885 | 1,899,889 | 1,841,967 |
Funded status of the plans, December 31 | (38,136) | (86,546) | |
Prepaid benefit costs (long-term assets) | 19,816 | 0 | |
Accrued benefit liability (current liabilities) | (3,346) | (2,104) | |
Accrued benefit liability (long-term liabilities) | (54,606) | (84,442) | |
Net amount recognized | (38,136) | (86,546) | |
Postretirement Health Coverage | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of period | 346,431 | 354,739 | |
Service cost | 7,500 | 7,478 | 8,259 |
Interest cost | 13,648 | 14,814 | 14,166 |
Actuarial losses (gains) | (8,408) | (4,647) | |
Plan participant contributions | 2,525 | 2,669 | |
Plan amendments | 0 | 0 | |
Benefits paid | (23,208) | (28,622) | |
Benefit obligation, end of period | 338,488 | 346,431 | 354,739 |
Change in plan assets: | |||
Fair value of plan assets, beginning of period | 170,092 | 156,765 | |
Actual return on plan assets | 32,445 | 13,327 | |
Company contributions | 15,000 | 0 | |
Plan participant contributions | 2,525 | 2,669 | |
Benefits paid | 2,525 | 2,669 | |
Fair value of plan assets, end of period | 217,537 | 170,092 | $ 156,765 |
Funded status of the plans, December 31 | (120,951) | (176,339) | |
Prepaid benefit costs (long-term assets) | 0 | 0 | |
Accrued benefit liability (current liabilities) | (2,198) | (3,072) | |
Accrued benefit liability (long-term liabilities) | (118,753) | (173,267) | |
Net amount recognized | $ (120,951) | $ (176,339) |
Employee Benefit Plans and Ot92
Employee Benefit Plans and Other Postretirement Benefits (Schedule Of Pension Plans With PBO And ABO In Excess Of Fair value Of Plan Assets) (Details) - Pension and SERPA Benefits - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 2,100 | $ 1,900 |
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets [Abstract] | ||
PBO | 58 | 1,986.4 |
Fair value of plan assets | 0 | 1,899.9 |
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 58 | 52.3 |
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | 42.1 | 38.4 |
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Fair Value of Plan Assets | $ 0 | $ 0 |
Employee Benefit Plans and Ot93
Employee Benefit Plans and Other Postretirement Benefits (Components Of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension and SERPA Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 31,584 | $ 33,437 | $ 40,039 |
Interest cost | 85,076 | 90,827 | 87,345 |
Special early retirement benefits | 0 | 0 | 10,563 |
Expected return on plan assets | (141,385) | (145,781) | (144,929) |
Prior service cost (credit) | 1,018 | 1,019 | 435 |
Net loss | 43,993 | 46,351 | 54,709 |
Settlement loss | 0 | 1,463 | 368 |
Net periodic benefit cost | 20,286 | 27,316 | 48,530 |
Postretirement Health Coverage | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 7,500 | 7,478 | 8,259 |
Interest cost | 13,648 | 14,814 | 14,166 |
Special early retirement benefits | 0 | 0 | 622 |
Expected return on plan assets | (12,623) | (12,069) | (11,506) |
Prior service cost (credit) | (2,171) | (2,803) | (3,217) |
Net loss | 3,261 | 3,537 | 3,971 |
Settlement loss | 0 | 0 | 0 |
Net periodic benefit cost | $ 9,615 | $ 10,957 | $ 12,295 |
Employee Benefit Plans and Ot94
Employee Benefit Plans and Other Postretirement Benefits (Schedule Of Net Periodic Benefit Cost Recognized In Accumulated And Other Comprehensive Income) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost (credit) | $ (10,007) |
Net actuarial loss | 470,950 |
Amounts included in other comprehensive income, net of tax | 460,943 |
Pension and SERPA Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost (credit) | (4,136) |
Net actuarial loss | 450,754 |
Amounts included in other comprehensive income, net of tax | 446,618 |
Postretirement Health Coverage | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost (credit) | (5,871) |
Net actuarial loss | 20,196 |
Amounts included in other comprehensive income, net of tax | $ 14,325 |
Employee Benefit Plans and Ot95
Employee Benefit Plans and Other Postretirement Benefits (Schedule Of Net Periodic Benefit Cost Expected To Be Recognized) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | $ (1,738) |
Net actuarial loss | 46,755 |
Amounts expected to be recognized in net periodic benefit cost, net of tax | 45,017 |
Pension and SERPA Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | (329) |
Net actuarial loss | 45,364 |
Amounts expected to be recognized in net periodic benefit cost, net of tax | 45,035 |
Postretirement Health Coverage | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | (1,409) |
Net actuarial loss | 1,391 |
Amounts expected to be recognized in net periodic benefit cost, net of tax | $ (18) |
Employee Benefit Plans and Ot96
Employee Benefit Plans and Other Postretirement Benefits (Schedule Of Assumptions Used To Determine Net Periodic Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension and SERPA Benefits | |||
Assumptions for benefit obligations: | |||
Discount rate | 3.71% | 4.30% | 4.53% |
Rate of compensation | 3.43% | 3.50% | 3.50% |
Assumptions for net periodic benefit cost: | |||
Discount rate | 4.30% | 4.53% | 4.21% |
Expected return on plan assets | 7.25% | 7.50% | 7.75% |
Rate of compensation increase | 3.50% | 3.50% | 4.00% |
Postretirement Health Coverage | |||
Assumptions for benefit obligations: | |||
Discount rate | 3.52% | 4.03% | 4.29% |
Assumptions for net periodic benefit cost: | |||
Discount rate | 4.03% | 4.29% | 3.99% |
Expected return on plan assets | 7.25% | 7.50% | 7.70% |
Employee Benefit Plans and Ot97
Employee Benefit Plans and Other Postretirement Benefits (Schedule Of Fair Value Of Pension Plan and Postretirement Healthcare Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Pension Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | $ 2,162,885 | $ 1,899,889 | |
Total assets in the fair value hierarchy excluding assets measured at net asset value | 2,148,684 | 1,877,945 | |
Pension Plan Assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 1,368,474 | 1,127,105 | |
Pension Plan Assets | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 780,210 | 750,840 | |
Pension Plan Assets | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 51,082 | 84,548 | |
Pension Plan Assets | Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 1,057 | 1,284 | |
Pension Plan Assets | Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 50,025 | 83,264 | |
Pension Plan Assets | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 1,283,092 | 1,044,455 | |
Pension Plan Assets | Equity Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 1,265,676 | 1,027,189 | |
Pension Plan Assets | Equity Securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 17,416 | 17,266 | |
Pension Plan Assets | U.S. companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 722,527 | 603,568 | |
Pension Plan Assets | U.S. companies | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 705,111 | 586,302 | |
Pension Plan Assets | U.S. companies | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 17,416 | 17,266 | |
Pension Plan Assets | Foreign companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 78,765 | 50,256 | |
Pension Plan Assets | Foreign companies | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 78,765 | 50,256 | |
Pension Plan Assets | Foreign companies | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Pension Plan Assets | Harley-Davidson common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 64,800 | 74,301 | |
Pension Plan Assets | Harley-Davidson common stock | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 64,800 | 74,301 | |
Pension Plan Assets | Harley-Davidson common stock | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Pension Plan Assets | Pooled equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 416,881 | 316,225 | |
Pension Plan Assets | Pooled equity funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 416,881 | 316,225 | |
Pension Plan Assets | Pooled equity funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Pension Plan Assets | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 119 | 105 | |
Pension Plan Assets | Other | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 119 | 105 | |
Pension Plan Assets | Other | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Pension Plan Assets | Fixed-income holdings | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 814,510 | 748,942 | |
Pension Plan Assets | Fixed-income holdings | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 101,741 | 98,632 | |
Pension Plan Assets | Fixed-income holdings | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 712,769 | 650,310 | |
Pension Plan Assets | U.S. Treasuries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 39,866 | 41,089 | |
Pension Plan Assets | U.S. Treasuries | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 39,866 | 41,089 | |
Pension Plan Assets | U.S. Treasuries | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Pension Plan Assets | Federal agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 29,188 | 36,210 | |
Pension Plan Assets | Federal agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Pension Plan Assets | Federal agencies | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 29,188 | 36,210 | |
Pension Plan Assets | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 462,563 | 418,522 | |
Pension Plan Assets | Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Pension Plan Assets | Corporate bonds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 462,563 | 418,522 | |
Pension Plan Assets | Pooled fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 189,361 | 170,741 | |
Pension Plan Assets | Pooled fixed income funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 61,875 | 57,543 | |
Pension Plan Assets | Pooled fixed income funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 127,486 | 113,198 | |
Pension Plan Assets | Foreign bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 81,732 | 69,871 | |
Pension Plan Assets | Foreign bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Pension Plan Assets | Foreign bonds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 81,732 | 69,871 | |
Pension Plan Assets | Municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 11,800 | 12,509 | |
Pension Plan Assets | Municipal bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Pension Plan Assets | Municipal bonds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 11,800 | 12,509 | |
Pension Plan Assets | Limited partnership interests | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at net asset value | 9,099 | 9,321 | |
Pension Plan Assets | Real estate investment trust | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at net asset value | 5,102 | 12,623 | |
Postretirement Health Coverage | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 217,537 | 170,092 | $ 156,765 |
Total assets in the fair value hierarchy excluding assets measured at net asset value | 210,787 | 164,574 | |
Postretirement Health Coverage | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 179,056 | 131,221 | |
Postretirement Health Coverage | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 31,731 | 33,353 | |
Postretirement Health Coverage | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 19,317 | 4,442 | |
Postretirement Health Coverage | Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 1,180 | |
Postretirement Health Coverage | Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 19,317 | 3,262 | |
Postretirement Health Coverage | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 144,795 | 117,974 | |
Postretirement Health Coverage | Equity Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 144,792 | 117,779 | |
Postretirement Health Coverage | Equity Securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 3 | 195 | |
Postretirement Health Coverage | U.S. companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 101,720 | 84,643 | |
Postretirement Health Coverage | U.S. companies | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 101,720 | 84,643 | |
Postretirement Health Coverage | U.S. companies | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Postretirement Health Coverage | Foreign companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 19,498 | 14,190 | |
Postretirement Health Coverage | Foreign companies | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 19,495 | 13,995 | |
Postretirement Health Coverage | Foreign companies | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 3 | 195 | |
Postretirement Health Coverage | Pooled equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 23,563 | 19,132 | |
Postretirement Health Coverage | Pooled equity funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 23,563 | 19,132 | |
Postretirement Health Coverage | Pooled equity funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Postretirement Health Coverage | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 14 | 9 | |
Postretirement Health Coverage | Other | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 14 | 9 | |
Postretirement Health Coverage | Other | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Postretirement Health Coverage | Fixed-income holdings | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 46,675 | 42,158 | |
Postretirement Health Coverage | Fixed-income holdings | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 34,264 | 12,262 | |
Postretirement Health Coverage | Fixed-income holdings | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 12,411 | 29,896 | |
Postretirement Health Coverage | U.S. Treasuries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 6,803 | 12,262 | |
Postretirement Health Coverage | U.S. Treasuries | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 6,803 | 12,262 | |
Postretirement Health Coverage | U.S. Treasuries | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Postretirement Health Coverage | Federal agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 5,060 | 7,364 | |
Postretirement Health Coverage | Federal agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Postretirement Health Coverage | Federal agencies | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 5,060 | 7,364 | |
Postretirement Health Coverage | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 6,756 | 11,750 | |
Postretirement Health Coverage | Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Postretirement Health Coverage | Corporate bonds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 6,756 | 11,750 | |
Postretirement Health Coverage | Pooled fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 27,461 | 9,690 | |
Postretirement Health Coverage | Pooled fixed income funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 27,461 | 0 | |
Postretirement Health Coverage | Pooled fixed income funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 9,690 | |
Postretirement Health Coverage | Foreign bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 311 | 633 | |
Postretirement Health Coverage | Foreign bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Postretirement Health Coverage | Foreign bonds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 311 | 633 | |
Postretirement Health Coverage | Municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 284 | 459 | |
Postretirement Health Coverage | Municipal bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
Postretirement Health Coverage | Municipal bonds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 284 | 459 | |
Postretirement Health Coverage | Real estate investment trust | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at net asset value | $ 6,750 | $ 5,518 |
Employee Benefit Plans and Ot98
Employee Benefit Plans and Other Postretirement Benefits (Schedule Of Weighted-Average Health Care Cost Trend Rate) (Details) - Postretirement Health Coverage | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | ||
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 | 2,026 | 2,021 |
Employee Benefit Plans and Ot99
Employee Benefit Plans and Other Postretirement Benefits (Schedule Of-Weighted Average Health Care Cost Trend Rate Assumption) (Details) - Postretirement Health Coverage $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |
Total of service and interest cost components, One Percent Increase | $ 648 |
Total of service and interest cost components, One Percent Decrease | (623) |
Accumulated benefit obligation as of December 31, One Percent Increase | 11,984 |
Accumulated benefit obligation as of December 31, One Percent Decrease | $ (10,940) |
Employee Benefit Plans and O100
Employee Benefit Plans and Other Postretirement Benefits (Schedule Of Expected Benefit Payments For Next Five Years And Thereafter) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Pension Plan Assets | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
Expected benefit payments in 2018 | $ 90,510 |
Expected benefit payments in 2019 | 92,694 |
Expected benefit payments in 2020 | 95,930 |
Expected benefit payments in 2021 | 98,109 |
Expected benefit payments in 2022 | 102,258 |
Expected benefit payments Thereafter | 574,745 |
SERPA Benefits | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
Expected benefit payments in 2018 | 3,346 |
Expected benefit payments in 2019 | 2,325 |
Expected benefit payments in 2020 | 2,843 |
Expected benefit payments in 2021 | 3,294 |
Expected benefit payments in 2022 | 3,528 |
Expected benefit payments Thereafter | 27,719 |
Postretirement Health Coverage | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
Expected benefit payments in 2018 | 28,446 |
Expected benefit payments in 2019 | 28,309 |
Expected benefit payments in 2020 | 27,351 |
Expected benefit payments in 2021 | 26,175 |
Expected benefit payments in 2022 | 25,096 |
Expected benefit payments Thereafter | $ 120,438 |
Leases (Schedule Of Future Mini
Leases (Schedule Of Future Minimum Operating Lease Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | |||
Total rental expense | $ 15,100 | $ 14,400 | $ 15,000 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,018 | 15,074 | ||
2,019 | 14,225 | ||
2,020 | 9,601 | ||
2,021 | 8,523 | ||
2,022 | 6,192 | ||
Thereafter | 8,379 | ||
Total operating lease payments | $ 61,994 |
Commitments and Contingencies (
Commitments and Contingencies (Site Contingency) (Details) - York, Pennsylvania Facility | 12 Months Ended |
Dec. 31, 2017 | |
Site Contingency [Line Items] | |
Site contingency, portion of total cost | 47.00% |
Navy | |
Site Contingency [Line Items] | |
Site contingency, portion of total cost | 53.00% |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Voluntary Recall) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Accrued Liabilities | Voluntary Recall [Member] | |
Product Liability Contingency [Line Items] | |
Accrual for voluntary recall | $ 29.4 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - $ / shares | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | Feb. 28, 2014 | Dec. 31, 2007 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Shares authorized | 800,000,000 | ||||||
Common stock stated value per share (in dollars per share) | $ 0.01 | ||||||
Common shares outstanding | 168,100,000 | 175,900,000 | |||||
Treasury stock, number of shares retired | 165,000,000 | ||||||
Stock repurchased | 8,700,000 | 9,700,000 | 27,800,000 | ||||
Preferred stock shares authorized | 2,000,000 | ||||||
Preferred stock stated value per share (in dollars per share) | $ 1 | ||||||
Preferred stock, shares outstanding | 0 | ||||||
1997 Authorization | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased | 0 | 0 | 900,000 | ||||
Stock repurchase program, covenant percentage | 1.00% | ||||||
2007 Authorization | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased | 0 | 0 | 900,000 | ||||
2014 Authorization | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased | 0 | 0 | 20,000,000 | ||||
2015 Authorization | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased | 0 | 9,000,000 | 6,000,000 | ||||
2016 Authorization | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased | 8,700,000 | 700,000 | 0 | ||||
Common Stock | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Treasury stock, number of shares retired | 165,000,000 | ||||||
Stock repurchased | 8,800,000 | ||||||
Weighted-average cost per share repurchased (in dollars per share) | $ 53 | ||||||
Treasury stock, shares, acquired from employees | 200,000 | ||||||
Common Stock | 2007 Authorization | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Common stock repurchase authorization value | 20,000,000 | ||||||
Common Stock | 2014 Authorization | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Common stock repurchase authorization value | 20,000,000 | ||||||
Common Stock | 2015 Authorization | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Common stock repurchase authorization value | 15,000,000 | ||||||
Common Stock | 2016 Authorization | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Common stock repurchase authorization value | 20,000,000 |
Capital Stock (Stock Repurchase
Capital Stock (Stock Repurchases Pursuant To Board Of Director Authorizations) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased | 8.7 | 9.7 | 27.8 |
Stock repurchase program remaining authorization | 10.6 | ||
1997 Authorization | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased | 0 | 0 | 0.9 |
Stock repurchase program remaining authorization | 0 | ||
2007 Authorization | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased | 0 | 0 | 0.9 |
Stock repurchase program remaining authorization | 0 | ||
2014 Authorization | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased | 0 | 0 | 20 |
Stock repurchase program remaining authorization | 0 | ||
2015 Authorization | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased | 0 | 9 | 6 |
Stock repurchase program remaining authorization | 0 | ||
2016 Authorization | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased | 8.7 | 0.7 | 0 |
Stock repurchase program remaining authorization | 10.6 |
Share-Based Awards (Narrative)
Share-Based Awards (Narrative) (Details) - 2014 Plan - shares shares in Millions | 1 Months Ended | 12 Months Ended |
Apr. 30, 2014 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock reserved for future issuance under the plan | 10.8 | |
Performance Restricted Units (PRSU) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award performance period (in years) | 3 years | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 3 years | |
Restricted Stock | First vesting period | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual award vesting (as a percent) | 33.33% | |
Restricted Stock | Second vesting period | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual award vesting (as a percent) | 33.33% | |
Restricted Stock | Third vesting period | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual award vesting (as a percent) | 33.33% | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 3 years | |
Restricted Stock Units (RSUs) | First vesting period | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual award vesting (as a percent) | 33.33% | |
Restricted Stock Units (RSUs) | Second vesting period | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual award vesting (as a percent) | 33.33% | |
Restricted Stock Units (RSUs) | Third vesting period | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual award vesting (as a percent) | 33.33% | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 3 years | |
Expiration period (in years) | 10 years | |
Stock Options | First vesting period | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual award vesting (as a percent) | 33.33% | |
Stock Options | Second vesting period | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual award vesting (as a percent) | 33.33% | |
Stock Options | Third vesting period | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual award vesting (as a percent) | 33.33% | |
Stock Appreciation Rights (SARs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 3 years | |
Expiration period (in years) | 10 years | |
Stock Appreciation Rights (SARs) | First vesting period | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual award vesting (as a percent) | 33.33% | |
Stock Appreciation Rights (SARs) | Second vesting period | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual award vesting (as a percent) | 33.33% | |
Stock Appreciation Rights (SARs) | Third vesting period | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual award vesting (as a percent) | 33.33% |
Share-Based Awards (Summary Of
Share-Based Awards (Summary Of Restricted Share and RSUs Transactions) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instrument Other Than Options Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Weighted-average period of recognition (years) | 1 month |
Restricted Stock, Restricted Stock Units (RSUs) And Performance Restricted Stock Units (PRSUs) Settled In Stock | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested, beginning of period | shares | 1,371 |
Granted | shares | 730 |
Vested | shares | (408) |
Forfeited | shares | (92) |
Nonvested, end of period | shares | 1,601 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instrument Other Than Options Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Grant Date Fair Value Per Share, Nonvested, beginning of period (in dollars per share) | $ / shares | $ 46 |
Grant Date Fair Value Per Share, Granted (in dollars per share) | $ / shares | 56 |
Grant Date Fair Value Per Share, Vested (in dollars per share) | $ / shares | 51 |
Grant Date Fair Value Per Share, Forfeited (in dollars per share) | $ / shares | 50 |
Grant Date Fair Value Per Share, Nonvested, end of period (in dollars per share) | $ / shares | $ 49 |
Unrecognized compensation | $ | $ 33.9 |
Weighted-average period of recognition (years) | 1 year 8 months |
Restricted Stock Units (RSUIs) And Performance Restricted Stock Units (PRSUIs) Settled in Cash | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested, beginning of period | shares | 124 |
Granted | shares | 56 |
Vested | shares | (49) |
Forfeited | shares | (30) |
Nonvested, end of period | shares | 101 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instrument Other Than Options Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Grant Date Fair Value Per Share, Nonvested, beginning of period (in dollars per share) | $ / shares | $ 54 |
Grant Date Fair Value Per Share, Granted (in dollars per share) | $ / shares | 52 |
Grant Date Fair Value Per Share, Vested (in dollars per share) | $ / shares | 60 |
Grant Date Fair Value Per Share, Forfeited (in dollars per share) | $ / shares | 59 |
Grant Date Fair Value Per Share, Nonvested, end of period (in dollars per share) | $ / shares | $ 53 |
Share-Based Awards (Assumptions
Share-Based Awards (Assumptions Used In Calculating Fair Value Of Options) (Details) - Stock Options | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected average term (in years) | 6 years |
Expected volatility (minimum) | 24.00% |
Expected volatility (maximum) | 30.00% |
Weighted average volatility | 28.00% |
Expected dividend yield | 2.00% |
Risk-free interest rate (minimum) | 0.10% |
Risk-free interest rate (maximum) | 2.00% |
Share-Based Awards (Summary 109
Share-Based Awards (Summary Of Stock Option Transactions) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, beginning of period | shares | 1,878 |
Options exercised | shares | (282) |
Options forfeited | shares | (192) |
Options outstanding, end of period | shares | 1,404 |
Exercisable, end of period | shares | 1,309 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-Average Price, Options outstanding, beginning of period (in dollars per share) | $ / shares | $ 49 |
Weighted-Average Price, Options exercised (in dollars per share) | $ / shares | 40 |
Weighted-Average Price, Options forfeited (in dollars per share) | $ / shares | 68 |
Weighted-Average Price, Options outstanding, end of period (in dollars per share) | $ / shares | 48 |
Weighted-Average Price, Exercisable, end of period (in dollars per share) | $ / shares | $ 47 |
Share-Based Awards (Stock Optio
Share-Based Awards (Stock Options) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Weighted-average Aggregate weighted-average fair value of options (in dollars per share) | $ 13 | |
Unrecognized share-based compensation expense | $ 0.1 | |
Unrecognized share-based compensation expense recognition period (in years) | 1 month |
Share-Based Awards (Aggregate I
Share-Based Awards (Aggregate Intrinsic Value) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Exercised | $ 4,051 | $ 9,595 | $ 9,890 |
Outstanding | 11,711 | 22,383 | 16,605 |
Exercisable | $ 11,711 | $ 22,383 | $ 16,605 |
Share-Based Awards (Stock Op112
Share-Based Awards (Stock Options Outstanding By Price Range) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted-Average Contractual Life, options outstanding (in years) | 4 years |
Options | shares | 1,404 |
Weighted-Average Exercise Price, options outstanding (in dollars per share) | $ 48 |
Weighted-Average Contractual Life, Options exercisable (in years) | 3 years 8 months |
Options exercisable | shares | 1,309 |
Weighted-Average Exercise Price, Options exercisable (in dollars per share) | $ 47 |
$10.01 to $20 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted-Average Contractual Life, options outstanding (in years) | 1 year 2 months |
Options | shares | 151 |
Weighted-Average Exercise Price, options outstanding (in dollars per share) | $ 13 |
Lower Range Limit (in dollars per share) | 10.01 |
Upper Range Limit (in dollars per share) | $ 20 |
$20.01 to $30 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted-Average Contractual Life, options outstanding (in years) | 2 years 1 month |
Options | shares | 145 |
Weighted-Average Exercise Price, options outstanding (in dollars per share) | $ 24 |
Lower Range Limit (in dollars per share) | 20.01 |
Upper Range Limit (in dollars per share) | $ 30 |
$30.01 to $40 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted-Average Contractual Life, options outstanding (in years) | 1 month |
Options | shares | 37 |
Weighted-Average Exercise Price, options outstanding (in dollars per share) | $ 39 |
Lower Range Limit (in dollars per share) | 30.01 |
Upper Range Limit (in dollars per share) | $ 40 |
$40.01 to $50 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted-Average Contractual Life, options outstanding (in years) | 3 years 7 months |
Options | shares | 239 |
Weighted-Average Exercise Price, options outstanding (in dollars per share) | $ 44 |
Lower Range Limit (in dollars per share) | 40.01 |
Upper Range Limit (in dollars per share) | $ 50 |
$50.01 to $60 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted-Average Contractual Life, options outstanding (in years) | 4 years 7 months |
Options | shares | 193 |
Weighted-Average Exercise Price, options outstanding (in dollars per share) | $ 52 |
Lower Range Limit (in dollars per share) | 50.01 |
Upper Range Limit (in dollars per share) | $ 60 |
$60.01 to $70 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted-Average Contractual Life, options outstanding (in years) | 5 years 2 months |
Options | shares | 639 |
Weighted-Average Exercise Price, options outstanding (in dollars per share) | $ 63 |
Lower Range Limit (in dollars per share) | 60.01 |
Upper Range Limit (in dollars per share) | $ 70 |
Share-Based Awards (Assumpti113
Share-Based Awards (Assumptions Used In Calculating Fair Value Of Stock Appreciation Rights) (Details) - Stock Appreciation Rights (SARs) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected average term (in years) | 5 years 8 months | |
Expected volatility (minimum) | 28.00% | 28.00% |
Expected volatility (maximum) | 31.00% | 31.00% |
Expected dividend yield | 2.90% | 2.40% |
Risk-free interest rate (minimum) | 1.30% | 0.50% |
Risk-free interest rate (maximum) | 2.50% | 2.60% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected average term (in years) | 5 years 2 months | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected average term (in years) | 5 years 8 months |
Share-Based Awards (Summary 114
Share-Based Awards (Summary Of Stock Appreciation Right Transactions) (Details) - Stock Appreciation Rights (SARs) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
SARs granted (in shares) | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Options outstanding, beginning of period | 75 | ||
Options exercised | (32) | ||
Options forfeited | (16) | ||
Options outstanding, beginning of period | 27 | 75 | |
Exercisable, end of period | 27 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instrument Other Than Options Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted-Average Price, Options outstanding, beginning of period (in dollars per share) | $ 37 | ||
Weighted-Average Price, Options exercised (in dollars per share) | 31 | ||
Weighted-Average Price, Options forfeited (in dollars per share) | 62 | ||
Weighted-Average Price, Options outstanding, beginning of period (in dollars per share) | 30 | $ 37 | |
Weighted-Average Price, Exercisable, end of period (in dollars per share) | $ 30 | ||
Weighted average fair value of SARs granted during period (in dollars per share) | $ 13 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||
Income used in computing basic and diluted earnings per share | $ 521,759 | $ 692,164 | $ 752,207 |
Denominator: | |||
Denominator for basic earnings per share-weighted-average common shares (in shares) | 171,995 | 179,676 | 202,681 |
Effect of dilutive securities – employee stock compensation plan (in shares) | 937 | 859 | 1,005 |
Denominator for diluted earnings per share- adjusted weighted-average shares outstanding (in shares) | 172,932 | 180,535 | 203,686 |
Basic (in dollars per share) | $ 3.03 | $ 3.85 | $ 3.71 |
Diluted (in dollars per share) | $ 3.02 | $ 3.83 | $ 3.69 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 0.8 | 1.4 | 1 |
Reportable Segments and Geog117
Reportable Segments and Geographic Information (Information By Strategic Business Units) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Motorcycles net revenue | $ 4,915,027 | $ 5,271,376 | $ 5,308,744 |
Selling, administrative and engineering expense | 1,181,641 | 1,217,439 | 1,220,095 |
Financial Services revenue | 732,197 | 725,082 | 686,658 |
Operating income | 891,263 | 1,048,936 | 1,155,695 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Financial Services revenue | 6,900 | 4,400 | 6,900 |
Motorcycles | |||
Segment Reporting Information [Line Items] | |||
Motorcycles net revenue | 4,915,027 | 5,271,376 | 5,308,744 |
Gross profit | 1,653,344 | 1,851,666 | 1,952,460 |
Selling, administrative and engineering expense | 1,037,386 | 1,078,260 | 1,076,970 |
Operating income | 615,958 | 773,406 | 875,490 |
Financial Services | |||
Segment Reporting Information [Line Items] | |||
Financial Services revenue | 732,197 | 725,082 | 686,658 |
Financial Services expense | 456,892 | 449,552 | 406,453 |
Operating income | $ 275,305 | $ 275,530 | $ 280,205 |
Reportable Segments and Geog118
Reportable Segments and Geographic Information (Information By Industry Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 9,972,672 | $ 9,890,240 | $ 9,972,977 |
Depreciation and amortization | 222,188 | 209,555 | 198,074 |
Capital expenditures | 206,294 | 256,263 | 259,974 |
Motorcycles | |||
Segment Reporting Information [Line Items] | |||
Total assets | 2,449,603 | 2,490,450 | 2,522,249 |
Depreciation and amortization | 215,639 | 202,122 | 188,926 |
Capital expenditures | 193,204 | 245,316 | 249,772 |
Financial Services | |||
Segment Reporting Information [Line Items] | |||
Total assets | 7,523,069 | 7,399,790 | 7,450,728 |
Depreciation and amortization | 6,549 | 7,433 | 9,148 |
Capital expenditures | $ 13,090 | $ 10,947 | $ 10,202 |
Reportable Segments and Geog119
Reportable Segments and Geographic Information (Segment Information By Geographical Locations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Motorcycles net revenue | $ 4,915,027 | $ 5,271,376 | $ 5,308,744 |
Financial Services revenue | 732,197 | 725,082 | 686,658 |
Long-lived assets | 967,781 | 981,593 | 942,418 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Motorcycles net revenue | 3,215,513 | 3,579,129 | 3,768,069 |
Financial Services revenue | 698,383 | 692,784 | 656,888 |
Long-lived assets | 912,032 | 943,479 | 915,509 |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 55,749 | 38,114 | 26,909 |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Motorcycles net revenue | 790,725 | 798,489 | 728,198 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Financial Services revenue | 6,845 | 6,528 | 5,373 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Motorcycles net revenue | 180,938 | 200,309 | 162,675 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Motorcycles net revenue | 232,883 | 212,099 | 178,042 |
Financial Services revenue | 22,580 | 21,626 | 21,180 |
Australia and New Zealand | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Motorcycles net revenue | 168,670 | 181,809 | 165,854 |
Other foreign countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Motorcycles net revenue | 326,298 | 299,541 | 305,906 |
Financial Services revenue | $ 4,389 | $ 4,144 | $ 3,217 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | Aug. 04, 2015dealer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Canada | ||||
Related Party Transaction [Line Items] | ||||
Number of dealers establishing distribution agreements | dealer | 66 | |||
Affiliated Entity | Deeley Imports | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related party | $ 117.3 | |||
Affiliated Entity | Trev Deeley Motorcycles | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related party | $ 5.8 | $ 5.3 | ||
Amounts due from related parties | $ 0.3 | $ 0.5 |
Supplemental Consolidating D121
Supplemental Consolidating Data (Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||
Motorcycles and Related Products | $ 4,915,027 | $ 5,271,376 | $ 5,308,744 |
Financial Services | 732,197 | 725,082 | 686,658 |
Total revenue | 5,647,224 | 5,996,458 | 5,995,402 |
Costs and expenses: | |||
Motorcycles and Related Products cost of goods sold | 3,261,683 | 3,419,710 | 3,356,284 |
Financial Services interest expense | 180,193 | 173,756 | 161,983 |
Financial Services provision for credit losses | 132,444 | 136,617 | 101,345 |
Selling, administrative and engineering expense | 1,181,641 | 1,217,439 | 1,220,095 |
Total costs and expenses | 4,755,961 | 4,947,522 | 4,839,707 |
Operating income | 891,263 | 1,048,936 | 1,155,695 |
Investment income | 3,580 | 4,645 | 6,585 |
Interest expense | 31,004 | 29,670 | 12,117 |
Income before provision for income taxes | 863,839 | 1,023,911 | 1,150,163 |
Provision for income taxes | 342,080 | 331,747 | 397,956 |
Net income | 521,759 | 692,164 | 752,207 |
Reportable Legal Entities | HDMC Entities | |||
Revenue: | |||
Motorcycles and Related Products | 4,925,003 | 5,281,355 | 5,318,850 |
Financial Services | 0 | 0 | 0 |
Total revenue | 4,925,003 | 5,281,355 | 5,318,850 |
Costs and expenses: | |||
Motorcycles and Related Products cost of goods sold | 3,261,683 | 3,419,710 | 3,356,284 |
Financial Services interest expense | 0 | 0 | 0 |
Financial Services provision for credit losses | 0 | 0 | 0 |
Selling, administrative and engineering expense | 1,038,994 | 1,080,020 | 1,078,525 |
Total costs and expenses | 4,300,677 | 4,499,730 | 4,434,809 |
Operating income | 624,326 | 781,625 | 884,041 |
Investment income | 199,580 | 187,645 | 106,585 |
Interest expense | 31,004 | 29,670 | 12,117 |
Income before provision for income taxes | 792,902 | 939,600 | 978,509 |
Provision for income taxes | 214,175 | 231,986 | 300,499 |
Net income | 578,727 | 707,614 | 678,010 |
Reportable Legal Entities | HDFS Entities | |||
Revenue: | |||
Motorcycles and Related Products | 0 | 0 | 0 |
Financial Services | 734,008 | 726,736 | 688,211 |
Total revenue | 734,008 | 726,736 | 688,211 |
Costs and expenses: | |||
Motorcycles and Related Products cost of goods sold | 0 | 0 | 0 |
Financial Services interest expense | 180,193 | 173,756 | 161,983 |
Financial Services provision for credit losses | 132,444 | 136,617 | 101,345 |
Selling, administrative and engineering expense | 154,232 | 149,157 | 153,229 |
Total costs and expenses | 466,869 | 459,530 | 416,557 |
Operating income | 267,139 | 267,206 | 271,654 |
Investment income | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Income before provision for income taxes | 267,139 | 267,206 | 271,654 |
Provision for income taxes | 127,905 | 99,761 | 97,457 |
Net income | 139,234 | 167,445 | 174,197 |
Eliminations | |||
Revenue: | |||
Motorcycles and Related Products | (9,976) | (9,979) | (10,106) |
Financial Services | (1,811) | (1,654) | (1,553) |
Total revenue | (11,787) | (11,633) | (11,659) |
Costs and expenses: | |||
Motorcycles and Related Products cost of goods sold | 0 | 0 | 0 |
Financial Services interest expense | 0 | 0 | 0 |
Financial Services provision for credit losses | 0 | 0 | 0 |
Selling, administrative and engineering expense | (11,585) | (11,738) | (11,659) |
Total costs and expenses | (11,585) | (11,738) | (11,659) |
Operating income | (202) | 105 | 0 |
Investment income | (196,000) | (183,000) | (100,000) |
Interest expense | 0 | 0 | 0 |
Income before provision for income taxes | (196,202) | (182,895) | (100,000) |
Provision for income taxes | 0 | 0 | 0 |
Net income | $ (196,202) | $ (182,895) | $ (100,000) |
Supplemental Consolidating D122
Supplemental Consolidating Data (Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 687,521 | $ 759,984 | $ 722,209 | $ 906,680 |
Marketable securities | 0 | 5,519 | ||
Accounts receivable, net | 329,986 | 285,106 | ||
Finance receivables, net | 2,105,662 | 2,076,261 | ||
Inventories | 538,202 | 499,917 | ||
Restricted cash | 47,518 | 52,574 | ||
Other current assets | 175,853 | 174,491 | ||
Total current assets | 3,884,742 | 3,853,852 | ||
Finance receivables, net | 4,859,424 | 4,759,197 | ||
Property, plant and equipment, net | 967,781 | 981,593 | ||
Prepaid pension costs | 19,816 | 0 | ||
Goodwill | 55,947 | 53,391 | ||
Deferred income taxes | 109,073 | 167,729 | ||
Other long-term assets | 75,889 | 74,478 | ||
Total assets | 9,972,672 | 9,890,240 | 9,972,977 | |
Current liabilities: | ||||
Accounts payable | 227,597 | 235,318 | ||
Accrued liabilities | 529,822 | 486,652 | ||
Short-term debt | 1,273,482 | 1,055,708 | ||
Current portion of long-term debt, net | 1,127,269 | 1,084,884 | ||
Total current liabilities | 3,158,170 | 2,862,562 | ||
Long-term debt, net | 4,587,258 | 4,666,975 | ||
Pension liability | 54,606 | 84,442 | ||
Postretirement healthcare liability | 118,753 | 173,267 | ||
Other long-term liabilities | 209,608 | 182,836 | ||
Commitments and contingencies (Note 14) | ||||
Shareholders’ equity: | ||||
Total shareholders’ equity | 1,844,277 | 1,920,158 | 1,839,654 | 2,909,286 |
Total liabilities and shareholders' equity | 9,972,672 | 9,890,240 | ||
Reportable Legal Entities | HDMC Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 338,186 | 425,540 | 400,443 | 573,895 |
Marketable securities | 5,019 | |||
Accounts receivable, net | 483,709 | 450,186 | ||
Finance receivables, net | 0 | 0 | ||
Inventories | 538,202 | 499,917 | ||
Restricted cash | 0 | 0 | ||
Other current assets | 132,999 | 127,606 | ||
Total current assets | 1,493,096 | 1,508,268 | ||
Finance receivables, net | 0 | 0 | ||
Property, plant and equipment, net | 922,280 | 942,634 | ||
Prepaid pension costs | 19,816 | |||
Goodwill | 55,947 | 53,391 | ||
Deferred income taxes | 66,877 | 103,487 | ||
Other long-term assets | 138,344 | 132,835 | ||
Total assets | 2,696,360 | 2,740,615 | ||
Current liabilities: | ||||
Accounts payable | 214,263 | 219,353 | ||
Accrued liabilities | 444,028 | 395,907 | ||
Short-term debt | 0 | 0 | ||
Current portion of long-term debt, net | 0 | 0 | ||
Total current liabilities | 658,291 | 615,260 | ||
Long-term debt, net | 741,961 | 741,306 | ||
Pension liability | 54,606 | 84,442 | ||
Postretirement healthcare liability | 118,753 | 173,267 | ||
Other long-term liabilities | 171,200 | 150,391 | ||
Commitments and contingencies (Note 14) | ||||
Shareholders’ equity: | ||||
Total shareholders’ equity | 951,549 | 975,949 | ||
Total liabilities and shareholders' equity | 2,696,360 | 2,740,615 | ||
Reportable Legal Entities | HDFS Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 349,335 | 334,444 | 321,766 | 332,785 |
Marketable securities | 500 | |||
Accounts receivable, net | 0 | 0 | ||
Finance receivables, net | 2,105,662 | 2,076,261 | ||
Inventories | 0 | 0 | ||
Restricted cash | 47,518 | 52,574 | ||
Other current assets | 48,521 | 46,934 | ||
Total current assets | 2,551,036 | 2,510,713 | ||
Finance receivables, net | 4,859,424 | 4,759,197 | ||
Property, plant and equipment, net | 45,501 | 38,959 | ||
Prepaid pension costs | 0 | |||
Goodwill | 0 | 0 | ||
Deferred income taxes | 43,515 | 66,152 | ||
Other long-term assets | 23,593 | 24,769 | ||
Total assets | 7,523,069 | 7,399,790 | ||
Current liabilities: | ||||
Accounts payable | 167,057 | 181,045 | ||
Accrued liabilities | 90,942 | 90,910 | ||
Short-term debt | 1,273,482 | 1,055,708 | ||
Current portion of long-term debt, net | 1,127,269 | 1,084,884 | ||
Total current liabilities | 2,658,750 | 2,412,547 | ||
Long-term debt, net | 3,845,297 | 3,925,669 | ||
Pension liability | 0 | 0 | ||
Postretirement healthcare liability | 0 | 0 | ||
Other long-term liabilities | 35,503 | 29,697 | ||
Commitments and contingencies (Note 14) | ||||
Shareholders’ equity: | ||||
Total shareholders’ equity | 983,519 | 1,031,877 | ||
Total liabilities and shareholders' equity | 7,523,069 | 7,399,790 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Marketable securities | 0 | |||
Accounts receivable, net | (153,723) | (165,080) | ||
Finance receivables, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Other current assets | (5,667) | (49) | ||
Total current assets | (159,390) | (165,129) | ||
Finance receivables, net | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Prepaid pension costs | 0 | |||
Goodwill | 0 | 0 | ||
Deferred income taxes | (1,319) | (1,910) | ||
Other long-term assets | (86,048) | (83,126) | ||
Total assets | (246,757) | (250,165) | ||
Current liabilities: | ||||
Accounts payable | (153,723) | (165,080) | ||
Accrued liabilities | (5,148) | (165) | ||
Short-term debt | 0 | 0 | ||
Current portion of long-term debt, net | 0 | 0 | ||
Total current liabilities | (158,871) | (165,245) | ||
Long-term debt, net | 0 | 0 | ||
Pension liability | 0 | 0 | ||
Postretirement healthcare liability | 0 | 0 | ||
Other long-term liabilities | 2,905 | 2,748 | ||
Commitments and contingencies (Note 14) | ||||
Shareholders’ equity: | ||||
Total shareholders’ equity | (90,791) | (87,668) | ||
Total liabilities and shareholders' equity | $ (246,757) | $ (250,165) |
Supplemental Consolidating D123
Supplemental Consolidating Data (Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 521,759 | $ 692,164 | $ 752,207 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of intangibles | 222,188 | 209,555 | 198,074 |
Amortization of deferred loan origination costs | 82,911 | 86,681 | 93,546 |
Amortization of financing origination fees | 8,045 | 9,252 | 9,975 |
Provision for long-term employee benefits | 29,900 | 38,273 | 60,824 |
Employee benefit plan contributions and payments | (63,277) | (55,809) | (28,490) |
Stock compensation expense | 32,491 | 32,336 | 29,433 |
Net change in wholesale finance receivables related to sales | 35,172 | (3,233) | (113,970) |
Provision for credit losses | 132,444 | 136,617 | 101,345 |
Gain on off-balance sheet asset-backed securitization | 0 | (9,269) | 0 |
Loss on debt extinguishment | 0 | 118 | 1,099 |
Deferred income taxes | 50,855 | (165) | (16,484) |
Other, net | 8,559 | (6,907) | 20,913 |
Changes in current assets and liabilities: | |||
Accounts receivable, net | (18,149) | (45,934) | (13,665) |
Finance receivables – accrued interest and other | (1,313) | (1,489) | (3,046) |
Inventories | (20,584) | 85,072 | (155,222) |
Accounts payable and accrued liabilities | 10,128 | 38,237 | 138,823 |
Derivative instruments | 1,866 | (3,413) | (5,615) |
Other | (27,934) | (27,747) | 30,371 |
Total adjustments | 483,302 | 482,175 | 347,911 |
Net cash provided by operating activities | 1,005,061 | 1,174,339 | 1,100,118 |
Cash flows from investing activities: | |||
Capital expenditures | (206,294) | (256,263) | (259,974) |
Origination of finance receivables | (3,591,948) | (3,664,495) | (3,751,830) |
Collections on finance receivables | 3,228,311 | 3,175,031 | 3,136,885 |
Proceeds from finance receivables sold | 0 | 312,571 | 0 |
Sales and redemptions of marketable securities | 6,916 | 40,014 | 11,507 |
Acquisition of business | 0 | 0 | (59,910) |
Other | 547 | 411 | 7,474 |
Net cash used by investing activities | (562,468) | (392,731) | (915,848) |
Cash flows from financing activities: | |||
Proceeds from issuance of medium-term notes | 893,668 | 1,193,396 | 595,386 |
Repayments of medium-term notes | (800,000) | (451,336) | (610,331) |
Proceeds from issuance of senior unsecured notes | 0 | 0 | 740,385 |
Intercompany borrowing activity | 0 | ||
Proceeds from securitization debt | 0 | 0 | 1,195,668 |
Repayments of securitization debt | (444,671) | (665,400) | (1,008,135) |
Borrowings of asset-backed commercial paper | 469,932 | 62,396 | 87,442 |
Repayments of asset-backed commercial paper | (176,227) | (71,500) | (72,727) |
Net increase (decrease) in credit facilities and unsecured commercial paper | 212,809 | (145,812) | 469,473 |
Net change in restricted cash | 8,458 | 43,495 | 11,410 |
Dividends paid | (251,862) | (252,321) | (249,262) |
Purchase of common stock for treasury | (465,263) | (465,341) | (1,537,020) |
Excess tax benefits from share-based payments | 0 | 2,251 | 3,468 |
Issuance of common stock under employee stock option plans | 11,353 | 15,782 | 20,179 |
Net cash used by financing activities | (541,803) | (734,390) | (354,064) |
Effect of exchange rate changes on cash and cash equivalents | 26,747 | (9,443) | (14,677) |
Net (decrease) increase in cash and cash equivalents | (72,463) | 37,775 | (184,471) |
Cash and cash equivalents: | |||
Cash and cash equivalents—beginning of period | 759,984 | 722,209 | 906,680 |
Net (decrease) increase in cash and cash equivalents | (72,463) | 37,775 | (184,471) |
Cash and cash equivalents—end of period | 687,521 | 759,984 | 722,209 |
Reportable Legal Entities | HDMC Entities | |||
Cash flows from operating activities: | |||
Net income | 578,727 | 707,614 | 678,010 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of intangibles | 215,639 | 202,122 | 188,926 |
Amortization of deferred loan origination costs | 0 | 0 | 0 |
Amortization of financing origination fees | 655 | 654 | 267 |
Provision for long-term employee benefits | 29,900 | 38,273 | 60,824 |
Employee benefit plan contributions and payments | (63,277) | (55,809) | (28,490) |
Stock compensation expense | 29,570 | 29,811 | 26,775 |
Net change in wholesale finance receivables related to sales | 0 | 0 | 0 |
Provision for credit losses | 0 | 0 | 0 |
Gain on off-balance sheet asset-backed securitization | 0 | ||
Loss on debt extinguishment | 0 | 0 | |
Deferred income taxes | 29,949 | 7,772 | (4,792) |
Other, net | 4,858 | (7,041) | 19,625 |
Changes in current assets and liabilities: | |||
Accounts receivable, net | (6,792) | (67,621) | 4,055 |
Finance receivables – accrued interest and other | 0 | 0 | 0 |
Inventories | (20,584) | 85,072 | (155,222) |
Accounts payable and accrued liabilities | 9,753 | 26,005 | 81,929 |
Derivative instruments | 1,785 | (3,413) | (5,615) |
Other | (31,868) | (25,415) | 33,658 |
Total adjustments | 199,588 | 230,410 | 221,940 |
Net cash provided by operating activities | 778,315 | 938,024 | 899,950 |
Cash flows from investing activities: | |||
Capital expenditures | (193,204) | (245,316) | (249,772) |
Origination of finance receivables | 0 | 0 | 0 |
Collections on finance receivables | 0 | 0 | 0 |
Proceeds from finance receivables sold | 0 | ||
Sales and redemptions of marketable securities | 6,916 | 40,014 | 11,507 |
Acquisition of business | (59,910) | ||
Other | 547 | 411 | 7,474 |
Net cash used by investing activities | (185,741) | (204,891) | (290,701) |
Cash flows from financing activities: | |||
Proceeds from issuance of medium-term notes | 0 | 0 | 0 |
Repayments of medium-term notes | 0 | 0 | 0 |
Proceeds from issuance of senior unsecured notes | 740,385 | ||
Intercompany borrowing activity | 250,000 | ||
Proceeds from securitization debt | 0 | ||
Repayments of securitization debt | 0 | 0 | 0 |
Borrowings of asset-backed commercial paper | 0 | 0 | 0 |
Repayments of asset-backed commercial paper | 0 | 0 | 0 |
Net increase (decrease) in credit facilities and unsecured commercial paper | 0 | 0 | 0 |
Net change in restricted cash | 0 | 0 | 0 |
Dividends paid | (251,862) | (252,321) | (249,262) |
Purchase of common stock for treasury | (465,263) | (465,341) | (1,537,020) |
Excess tax benefits from share-based payments | 2,251 | 3,468 | |
Issuance of common stock under employee stock option plans | 11,353 | 15,782 | 20,179 |
Net cash used by financing activities | (705,772) | (699,629) | (772,250) |
Effect of exchange rate changes on cash and cash equivalents | 25,844 | (8,407) | (10,451) |
Net (decrease) increase in cash and cash equivalents | (87,354) | 25,097 | (173,452) |
Cash and cash equivalents: | |||
Cash and cash equivalents—beginning of period | 425,540 | 400,443 | 573,895 |
Net (decrease) increase in cash and cash equivalents | (87,354) | 25,097 | (173,452) |
Cash and cash equivalents—end of period | 338,186 | 425,540 | 400,443 |
Reportable Legal Entities | HDFS Entities | |||
Cash flows from operating activities: | |||
Net income | 139,234 | 167,445 | 174,197 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of intangibles | 6,549 | 7,433 | 9,148 |
Amortization of deferred loan origination costs | 82,911 | 86,681 | 93,546 |
Amortization of financing origination fees | 7,390 | 8,598 | 9,708 |
Provision for long-term employee benefits | 0 | 0 | 0 |
Employee benefit plan contributions and payments | 0 | 0 | 0 |
Stock compensation expense | 2,921 | 2,525 | 2,658 |
Net change in wholesale finance receivables related to sales | 0 | 0 | 0 |
Provision for credit losses | 132,444 | 136,617 | 101,345 |
Gain on off-balance sheet asset-backed securitization | (9,269) | ||
Loss on debt extinguishment | 118 | 1,099 | |
Deferred income taxes | 21,497 | (7,705) | (11,692) |
Other, net | 3,498 | 239 | 1,288 |
Changes in current assets and liabilities: | |||
Accounts receivable, net | 0 | 0 | 0 |
Finance receivables – accrued interest and other | (1,313) | (1,489) | (3,046) |
Inventories | 0 | 0 | 0 |
Accounts payable and accrued liabilities | (11,497) | 25,027 | 18,539 |
Derivative instruments | 81 | 0 | 0 |
Other | (1,684) | (2,332) | (3,287) |
Total adjustments | 242,797 | 246,443 | 219,306 |
Net cash provided by operating activities | 382,031 | 413,888 | 393,503 |
Cash flows from investing activities: | |||
Capital expenditures | (13,090) | (10,947) | (10,202) |
Origination of finance receivables | (7,109,624) | (7,420,177) | (7,836,279) |
Collections on finance receivables | 6,786,702 | 6,936,140 | 7,127,999 |
Proceeds from finance receivables sold | 312,571 | ||
Sales and redemptions of marketable securities | 0 | 0 | 0 |
Acquisition of business | 0 | ||
Other | 0 | 0 | 0 |
Net cash used by investing activities | (336,012) | (182,413) | (718,482) |
Cash flows from financing activities: | |||
Proceeds from issuance of medium-term notes | 893,668 | 1,193,396 | 595,386 |
Repayments of medium-term notes | (800,000) | (451,336) | (610,331) |
Proceeds from issuance of senior unsecured notes | 0 | ||
Intercompany borrowing activity | (250,000) | ||
Proceeds from securitization debt | 1,195,668 | ||
Repayments of securitization debt | (444,671) | (665,400) | (1,008,135) |
Borrowings of asset-backed commercial paper | 469,932 | 62,396 | 87,442 |
Repayments of asset-backed commercial paper | (176,227) | (71,500) | (72,727) |
Net increase (decrease) in credit facilities and unsecured commercial paper | 212,809 | (145,812) | 469,473 |
Net change in restricted cash | 8,458 | 43,495 | 11,410 |
Dividends paid | (196,000) | (183,000) | (100,000) |
Purchase of common stock for treasury | 0 | 0 | 0 |
Excess tax benefits from share-based payments | 0 | 0 | |
Issuance of common stock under employee stock option plans | 0 | 0 | 0 |
Net cash used by financing activities | (32,031) | (217,761) | 318,186 |
Effect of exchange rate changes on cash and cash equivalents | 903 | (1,036) | (4,226) |
Net (decrease) increase in cash and cash equivalents | 14,891 | 12,678 | (11,019) |
Cash and cash equivalents: | |||
Cash and cash equivalents—beginning of period | 334,444 | 321,766 | 332,785 |
Net (decrease) increase in cash and cash equivalents | 14,891 | 12,678 | (11,019) |
Cash and cash equivalents—end of period | 349,335 | 334,444 | 321,766 |
Eliminations | |||
Cash flows from operating activities: | |||
Net income | (196,202) | (182,895) | (100,000) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of intangibles | 0 | 0 | 0 |
Amortization of deferred loan origination costs | 0 | 0 | 0 |
Amortization of financing origination fees | 0 | 0 | 0 |
Provision for long-term employee benefits | 0 | 0 | 0 |
Employee benefit plan contributions and payments | 0 | 0 | 0 |
Stock compensation expense | 0 | 0 | 0 |
Net change in wholesale finance receivables related to sales | 35,172 | (3,233) | (113,970) |
Provision for credit losses | 0 | 0 | 0 |
Gain on off-balance sheet asset-backed securitization | 0 | ||
Loss on debt extinguishment | 0 | 0 | |
Deferred income taxes | (591) | (232) | 0 |
Other, net | 203 | (105) | 0 |
Changes in current assets and liabilities: | |||
Accounts receivable, net | (11,357) | 21,687 | (17,720) |
Finance receivables – accrued interest and other | 0 | 0 | 0 |
Inventories | 0 | 0 | 0 |
Accounts payable and accrued liabilities | 11,872 | (12,795) | 38,355 |
Derivative instruments | 0 | 0 | 0 |
Other | 5,618 | 0 | 0 |
Total adjustments | 40,917 | 5,322 | (93,335) |
Net cash provided by operating activities | (155,285) | (177,573) | (193,335) |
Cash flows from investing activities: | |||
Capital expenditures | 0 | 0 | 0 |
Origination of finance receivables | 3,517,676 | 3,755,682 | 4,084,449 |
Collections on finance receivables | (3,558,391) | (3,761,109) | (3,991,114) |
Proceeds from finance receivables sold | 0 | ||
Sales and redemptions of marketable securities | 0 | 0 | 0 |
Acquisition of business | 0 | ||
Other | 0 | 0 | 0 |
Net cash used by investing activities | (40,715) | (5,427) | 93,335 |
Cash flows from financing activities: | |||
Proceeds from issuance of medium-term notes | 0 | 0 | 0 |
Repayments of medium-term notes | 0 | 0 | 0 |
Proceeds from issuance of senior unsecured notes | 0 | ||
Intercompany borrowing activity | 0 | ||
Proceeds from securitization debt | 0 | ||
Repayments of securitization debt | 0 | 0 | 0 |
Borrowings of asset-backed commercial paper | 0 | 0 | 0 |
Repayments of asset-backed commercial paper | 0 | 0 | 0 |
Net increase (decrease) in credit facilities and unsecured commercial paper | 0 | 0 | 0 |
Net change in restricted cash | 0 | 0 | 0 |
Dividends paid | 196,000 | 183,000 | 100,000 |
Purchase of common stock for treasury | 0 | 0 | 0 |
Excess tax benefits from share-based payments | 0 | 0 | |
Issuance of common stock under employee stock option plans | 0 | 0 | 0 |
Net cash used by financing activities | 196,000 | 183,000 | 100,000 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents: | |||
Cash and cash equivalents—beginning of period | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents—end of period | $ 0 | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions | Feb. 28, 2018 | Jan. 25, 2018 |
Medium-term Notes | ||
Subsequent Event [Line Items] | ||
Company issued secured notes | $ 350 | |
Stated interest rate | 3.35% | |
2018 Restructuring Plan [Member] | ||
Subsequent Event [Line Items] | ||
Restructuring and Related Cost, Expected Cost, Percentage Paid in Cash | 70.00% | |
2018 Restructuring Plan [Member] | Minimum | ||
Subsequent Event [Line Items] | ||
Restructuring and Related Cost, Expected Cost | $ 170 | |
2018 Restructuring Plan [Member] | Maximum | ||
Subsequent Event [Line Items] | ||
Restructuring and Related Cost, Expected Cost | $ 200 |
Consolidated Valuation and Q125
Consolidated Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 26, 2016 | |
Unconsolidated VIEs | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Principal balance of finance receivable | $ 301,800 | |||
Accounts receivable – allowance for doubtful accounts | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance, beginning of period | $ 2,741 | $ 2,905 | $ 3,458 | |
Provision charged to expense | 1,328 | (101) | 266 | |
Reserve adjustments | 99 | (63) | (276) | |
Write-offs, net of recoveries | (77) | 0 | (543) | |
Balance, end of period | 4,091 | 2,741 | 2,905 | |
Finance receivables – allowance for credit losses | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance, beginning of period | 173,343 | 147,178 | 127,364 | |
Provision charged to expense | (132,444) | (136,617) | (101,345) | |
Write-offs, net of recoveries | (113,316) | (107,161) | (81,531) | |
Other | 0 | (3,291) | 0 | |
Balance, end of period | 192,471 | 173,343 | 147,178 | |
Inventories – allowance for obsolescence | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance, beginning of period | 39,873 | 26,740 | 17,775 | |
Provision charged to expense | (16,940) | (21,137) | (19,564) | |
Reserve adjustments | 306 | (88) | (1,028) | |
Write-offs, net of recoveries | (18,450) | (7,916) | (9,571) | |
Balance, end of period | 38,669 | 39,873 | 26,740 | |
Deferred tax assets – valuation allowance | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance, beginning of period | 30,953 | 20,659 | 25,462 | |
Reserve adjustments | (9,392) | 10,294 | (4,803) | |
Balance, end of period | $ 21,561 | $ 30,953 | $ 20,659 |