Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 01, 2018 | May 04, 2018 | |
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-Q | |
Document Period End Date | Apr. 1, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 166,436,632 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Revenue: | ||
Motorcycles and Related Products | $ 1,363,947 | $ 1,328,711 |
Financial Services | 178,174 | 173,221 |
Total revenue | 1,542,121 | 1,501,932 |
Costs and expenses: | ||
Motorcycles and Related Products cost of goods sold | 890,174 | 853,888 |
Financial Services interest expense | 48,450 | 43,289 |
Financial Services provision for credit losses | 30,052 | 43,589 |
Selling, administrative and engineering expense | 290,186 | 271,984 |
Restructuring expense | 46,842 | 0 |
Total costs and expenses | 1,305,704 | 1,212,750 |
Operating income | 236,417 | 289,182 |
Other income (expense), net | 220 | 2,296 |
Investment income | 1,203 | 879 |
Interest expense | 7,690 | 7,673 |
Income before provision for income taxes | 230,150 | 284,684 |
Provision for income taxes | 55,387 | 98,315 |
Net income | $ 174,763 | $ 186,369 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 1.04 | $ 1.06 |
Diluted (in dollars per share) | 1.03 | 1.05 |
Cash dividends per common share (in dollars per share) | $ 0.370 | $ 0.365 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 174,763 | $ 186,369 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | 6,915 | 15,557 |
Derivative financial instruments | 765 | (9,052) |
Marketable securities | 0 | (10) |
Pension and postretirement benefit plans | 85,765 | 7,256 |
Total other comprehensive income, net of tax | 93,445 | 13,751 |
Comprehensive income | $ 268,208 | $ 200,120 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 |
Current assets: | |||
Cash and cash equivalents | $ 753,517 | $ 687,521 | $ 839,700 |
Marketable securities | 0 | 0 | 5,004 |
Accounts receivable, net | 355,107 | 329,986 | 335,578 |
Finance receivables, net | 2,341,918 | 2,105,662 | 2,354,095 |
Inventories | 564,571 | 538,202 | 485,476 |
Restricted cash | 54,569 | 47,518 | 75,705 |
Other current assets | 150,472 | 175,853 | 142,362 |
Total current assets | 4,220,154 | 3,884,742 | 4,237,920 |
Finance receivables, net | 4,784,524 | 4,859,424 | 4,792,027 |
Property, plant and equipment, net | 934,645 | 967,781 | 953,044 |
Prepaid pension costs | 122,230 | 19,816 | 0 |
Goodwill | 56,524 | 55,947 | 53,967 |
Deferred income taxes | 77,624 | 109,073 | 165,196 |
Other long-term assets | 81,920 | 75,889 | 79,701 |
Total assets | 10,277,621 | 9,972,672 | 10,281,855 |
Current liabilities: | |||
Accounts payable | 319,040 | 227,597 | 358,684 |
Accrued liabilities | 566,408 | 529,822 | 547,637 |
Short-term debt | 1,036,976 | 1,273,482 | 953,357 |
Current portion of long-term debt, net | 1,872,679 | 1,127,269 | 697,061 |
Total current liabilities | 3,795,103 | 3,158,170 | 2,556,739 |
Long-term debt, net | 4,108,511 | 4,587,258 | 5,320,797 |
Pension liability | 54,921 | 54,606 | 52,559 |
Postretirement healthcare liability | 113,031 | 118,753 | 171,143 |
Other long-term liabilities | 210,106 | 209,608 | 187,208 |
Commitments and contingencies | |||
Shareholders’ equity: | |||
Preferred stock, none issued | 0 | 0 | 0 |
Common stock | 1,818 | 1,813 | 1,813 |
Additional paid-in-capital | 1,432,692 | 1,422,808 | 1,397,172 |
Retained earnings | 1,725,626 | 1,607,570 | 1,459,431 |
Accumulated other comprehensive loss | (406,604) | (500,049) | (551,630) |
Treasury stock, at cost | (757,583) | (687,865) | (313,377) |
Total shareholders' equity | 1,995,949 | 1,844,277 | 1,993,409 |
Total liabilities and shareholders' equity | 10,277,621 | 9,972,672 | 10,281,855 |
Variable interest entities | |||
Current assets: | |||
Finance receivables, net | 182,033 | 194,813 | 218,001 |
Restricted Cash and Cash Equivalents | 55,140 | 48,706 | 79,254 |
Other current assets | 2,175 | 2,148 | 3,204 |
Finance receivables, net | 464,185 | 521,940 | 825,825 |
Current liabilities: | |||
Current portion of long-term debt, net | 205,055 | 209,247 | 253,070 |
Long-term debt, net | $ 361,049 | $ 422,834 | $ 718,509 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 |
Statement of Financial Position [Abstract] | |||
Preferred stock, shares issued | 0 | 0 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Cash flows from operating activities: | ||
Net cash provided by operating activities | $ 191,594 | $ 159,939 |
Cash flows from investing activities: | ||
Capital expenditures | (28,436) | (23,967) |
Origination of finance receivables | (798,067) | (844,692) |
Collections on finance receivables | 809,800 | 781,154 |
Other | (4,948) | 52 |
Net cash used by investing activities | (21,651) | (87,453) |
Cash flows from financing activities: | ||
Proceeds from issuance of medium-term notes | 347,553 | 497,406 |
Repayments of medium-term notes | 0 | (400,000) |
Repayments of securitization debt | (67,955) | (111,359) |
Borrowings of asset-backed commercial paper | 35,504 | 305,209 |
Repayments of asset-backed commercial paper | 45,907 | 29,383 |
Net decrease in credit facilities and unsecured commercial paper | (234,145) | (101,702) |
Dividends paid | (62,731) | (64,611) |
Purchase of common stock for treasury | (72,968) | (79,753) |
Issuance of common stock under employee stock option plans | 1,719 | 7,336 |
Net cash (used) provided by financing activities | (98,930) | 23,143 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,034 | 7,219 |
Net increase in cash, cash equivalents and restricted cash | 73,047 | 102,848 |
Cash, cash equivalents and restricted cash: | ||
Cash, cash equivalents and restricted cash—beginning of period | 746,210 | 827,131 |
Net increase in cash, cash equivalents and restricted cash | 73,047 | 102,848 |
Cash, cash equivalents and restricted cash—end of period | 819,257 | 929,979 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 753,517 | 839,700 |
Restricted cash | 54,569 | 75,705 |
Restricted cash included in other long-term assets | $ 11,171 | $ 14,574 |
Basis of Presentation and Use o
Basis of Presentation and Use of Estimates | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The consolidated financial statements include the accounts of Harley-Davidson, Inc. and its wholly-owned subsidiaries (the Company), including the accounts of the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). In addition, certain variable interest entities (VIEs) related to secured financing are consolidated as the Company is the primary beneficiary. All intercompany accounts and material intercompany transactions are eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the consolidated balance sheets as of April 1, 2018 and March 26, 2017 , the consolidated statements of income for the three month periods then ended, the consolidated statements of comprehensive income for the three month periods then ended and the consolidated statements of cash flows for the three month periods then ended. Certain information and footnote disclosures normally included in complete financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and U.S. generally accepted accounting principles (U.S. GAAP) for interim financial reporting. These consolidated financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . The Company operates in two reportable segments: Motorcycles & Related Products (Motorcycles) and Financial Services. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Apr. 01, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Standards Recently Adopted In May 2014, the FASB issued Accounting Standards Update (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. The Company adopted ASU 2014-09 on January 1, 2018. The Company applied the standard to all contracts using the modified retrospective method. As such, the Company recognized the cumulative effect of the adoption as an adjustment to the opening balance of retained earnings. The comparative information has not been restated. The majority of the Company’s Motorcycles and related products revenue will continue to be recognized when products are shipped to customers. For a limited number of vehicle sales where revenue was previously deferred due to a guaranteed resale value the Company will now recognize revenue when those vehicles are shipped in accordance with ASU 2014-09. The Company recorded a net increase to the opening balance of retained earnings of $6.0 million , net of income taxes, as of January 1, 2018 as a result of adopting ASU 2014-09. The Company also adjusted other assets and accrued liabilities associated with these vehicle sales in connection with its adoption of ASU 2014-09. The majority of the Financial Services segment’s revenues relate to loan and servicing activities which are outside the scope of this guidance. Financial Services revenues that fall under the scope of ASU 2014-09 continue to be recognized at the point of sale, or over the estimated life of the contract, as appropriate. The following tables illustrate the impact of adoption of ASU 2014-09 on the consolidated statement of income for the three months ended April 1, 2018 and the consolidated balance sheet as of April 1, 2018 (in thousands): Consolidated Statement of Income As Reported Without Adoption of ASC 606 Effect of Change Revenue: Motorcycles and Related Products $ 1,363,947 $ 1,367,984 $ (4,037 ) Costs and expenses: Motorcycles and Related Products cost of goods sold $ 890,174 $ 890,238 $ (64 ) Operating income $ 236,417 $ 240,390 $ (3,973 ) Income before provision for income taxes $ 230,150 $ 234,123 $ (3,973 ) Provision for income taxes $ 55,387 $ 56,350 $ (963 ) Net income $ 174,763 $ 177,773 $ (3,010 ) Consolidated Balance Sheet As Reported Without Adoption of ASC 606 Effect of Change ASSETS Other current assets $ 150,472 $ 166,864 $ (16,392 ) Deferred income taxes $ 77,624 $ 79,472 $ (1,848 ) LIABILITIES AND SHAREHOLDERS' EQUITY Accrued liabilities $ 566,408 $ 587,662 $ (21,254 ) Retained earnings $ 1,725,626 $ 1,722,612 $ 3,014 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 adopted ASU 2017-07 retrospectively on January 1, 2018. As a result, the non-service cost components of net periodic benefit cost have been presented in Other income (expense), net and the prior period has been recast to reflect the new presentation. The Company elected the practical expedient allowing the use of previously disclosed benefit components as the basis for the retrospective application. Net periodic benefit cost (credit) previously recorded in Motorcycles and Related Products cost of goods sold and Selling, administrative and engineering expense of $2.7 million and $(0.4) million , respectively, for the three months ended March 26, 2017 has been reclassified to Other income (expense), net. 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 adopted ASU 2016-18 on January 1, 2018 on a retrospective basis. As a result, the change in restricted cash has been excluded from financing activities and included in the change in cash, cash equivalents and restricted cash and the prior period has been recast to reflect the new presentation. 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 ASU was subsequently amended by ASU No. 2018-03 and ASU No. 2018-04. The Company adopted ASU 2016-01 on January 1, 2018 on a prospective basis. The adoption of ASU 2016-01 did not have a material impact on its financial statements. 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 items 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 Company adopted ASU 2016-15 on January 1, 2018 on a retrospective basis. The adoption of ASU 2016-15 did not 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. The Company adopted ASU 2016-16 on January 1, 2018 using a modified retrospective approach. The adoption of ASU 2016-16 did not have a material impact on its financial statements. Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) (ASU 2016-02). ASU 2016-02 amends the existing lease accounting model by requiring a lessee to recognize the rights and obligations resulting from certain leases as assets and liabilities on the balance sheet. ASU 2016-02 also requires a company to disclose key information about their leasing arrangements. The Company 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. The Company anticipates the adoption of ASU 2016-02 will result in an increase in assets and liabilities recognized in the balance sheet related to its lease arrangements. In July 2016, the FASB issued ASU No. 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 changes how to recognize expected credit losses on financial assets. The standard requires a more timely recognition of credit losses on loans and other financial assets and also provides additional transparency about credit risk. The current credit loss standard generally requires that a loss actually be incurred before it is recognized, while the new standard will require recognition of full lifetime expected losses upon initial recognition of the financial instrument. The Company is required to adopt ASU 2016-13 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019 on a modified retrospective basis. Early adoption is permitted for fiscal years beginning after December 15, 2018. An entity should apply the standard by recording a cumulative effect adjustment to retained earnings upon adoption. Adoption of this standard will impact how the Company recognizes credit losses on its financial instruments. The Company is currently evaluating the impact of adoption of ASU 2016-13 but anticipates the adoption of ASU 2016-13 will result in an increase in the annual provision for credit losses and the related allowance for credit losses. In January 2017, the FASB issued ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the requirement to calculate the implied fair value of goodwill. Rather, the goodwill impairment is calculated by comparing the fair value of a reporting unit to its carrying value, and an impairment loss is recognized for the amount by which the carrying amount exceeds the fair value, limited to the total goodwill allocated to the reporting unit. All reporting units apply the same impairment test under the new standard. The Company is required to adopt ASU 2017-04 for its annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In August 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 impact of adopting ASU 2018-02. |
Revenue
Revenue | 3 Months Ended |
Apr. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or service to a customer. Revenue is measured based on the consideration that the Company expects to be entitled to in exchange for the goods or services transferred. Taxes that are collected from a customer concurrent with revenue-producing activities are excluded from revenue. The following table disaggregates revenue by major source for the three months ended April 1, 2018 (in thousands): Motorcycles and Related Products: Motorcycles $ 1,121,673 Parts & Accessories 169,075 General Merchandise 56,601 Licensing 8,358 Other 8,240 Revenue from Motorcycles and Related Products 1,363,947 Financial Services: Interest income 154,041 Securitization and servicing fee income 352 Other income 23,781 Revenue from Financial Services 178,174 Total revenue $ 1,542,121 The following is a description of principal activities from which the Company generates its revenue, by reportable segment. Motorcycles and Related Products Motorcycles, Parts and Accessories, and General Merchandise - Sales of motorcycles, parts and accessories, and general merchandise are recorded when control is transferred to wholesale customers (independent dealers). This generally takes place upon shipment of the products. The sale of products to independent dealers outside the U.S. and Canada is generally on open account with terms that generally approximate 30 - 120 days and the resulting receivables are included in accounts receivable in the consolidated balance sheets. The sale of products in the U.S. and Canada is financed by the purchasing dealers through HDFS and the related receivables are included in finance receivables in the consolidated balance sheets. The Company may offer sales incentive programs to dealers and retail customers designed to promote the sale of motorcycles, parts and accessories, and general merchandise. The Company estimates its variable consideration related to motorcycles and related products sold under its sales incentive programs using the expected value method. Further, the Company accounts for consideration payable to a customer as part of its sales incentives as a reduction of revenue, which is accrued at the later of the date the related sale is recorded or the date the incentive program is both approved and communicated. The Company may offer to its dealers the right to return eligible parts and accessories and general merchandise. When the Company offers a right to return, it estimates returns based on an analysis of historical trends and records revenue on the initial sale only in the amount that it expects to be entitled. The remaining consideration is deferred in a refund liability account. The refund liability is remeasured for changes in the estimate at each reporting date with a corresponding adjustment to revenue. Variable consideration related to sales incentives and rights to return is adjusted at the earliest of when the amount of consideration the Company expects to receive changes or the consideration becomes fixed. Adjustments for variable consideration related to previously recognized sales decreased revenue by an immaterial amount during the three months ended April 1, 2018. Shipping and handling costs associated with freight after control of a product has transferred to a customer are accounted for as fulfillment costs. The Company accrues for the shipping and handling in the same period that the related revenue is recognized. The Company offers standard, limited warranties on its motorcycles and parts and accessories. These warranties provide assurance that the product will function as expected and are not separate performance obligations. The Company accounts for estimated warranty costs as a liability when control of the product transfers to the customer. Licensing - The Company licenses the name “Harley-Davidson” and other trademarks owned by the Company and collects royalties from its customers (licensees). The trademark licenses are considered symbolic intellectual property, which grant the customer a right to access the Company’s intellectual property. The Company satisfies its performance obligation over the license period, as the Company fulfills its promise to grant the customer rights to use and benefit from the intellectual property as well as maintain the intellectual property. Payment is typically due within thirty days of the end of each quarter, for the royalties earned in that quarter. Revenue, in the form of sales-based royalties, is recognized when the customers’ subsequent sales occur. The Company applies the practical expedient in ASC 606-10-55-18 to recognize licensing revenues in the amount that the Company has the right to invoice because the royalties due each period correspond directly with the value of the Company’s performance to date. Revenue will be recognized over the remaining contract terms which range up to 6 years. Other Revenue - Other Revenue consists primarily of revenue from Harley Ownership Group (H.O.G.) membership sales, motorcycle rental commissions, dealer software sales, museum admissions and events, and other miscellaneous products and services. Financial Services Interest income - 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. Securitization and Servicing Income - Securitization and Servicing income consists of revenue from servicing and ancillary fees associated with HDFS' off-balance sheet asset-backed securitization transaction. Refer to Note 11 of the Notes to Consolidated Financial Statements for further discussion regarding asset-backed financing. Other income - Other income consists primarily of insurance and licensing revenues. HDFS works with certain unaffiliated insurance companies to offer motorcycle insurance and protection products through most Harley-Davidson dealers in the U.S. and Canada. HDFS also works with third-party financial institutions that issue credit cards, or offer other financial products bearing the Harley-Davidson brand in the U.S and internationally. For many of these contracts, the Company grants temporary rights to use the licensed trademarks owned by the Company and collects royalties from its customers in connection with sales of their products. The trademark licenses are considered symbolic intellectual property, which grant the customer a right to access the intellectual property. The Company satisfies its performance obligation over the license period, as it fulfills its promise to grant the customer rights to use and benefit from the intellectual property as well as maintain the intellectual property. Royalty and profit sharing amounts are received either quarterly or per annum, based upon the contract. Revenue, in the form of sales-based royalties, is recognized when the customers’ subsequent sales occur. Revenue will be recognized over the remaining contract terms which range up to 6 years. The Company is the primary obligor for certain other insurance related contracts and as a result revenue is recognized over the life of the contract as the Company fulfills its performance obligation. Contract Liabilities Deferred revenue relates to payments received at contract inception in advance of the Company’s performance under the contract and generally relates to the sale of H.O.G. memberships and extended service plan contracts. Deferred revenue is recognized as revenue as the Company performs under the contract. On January 1, 2018, $23.4 million of deferred revenue was included in Accrued liabilities and Other long-term liabilities in the consolidated balance sheet. $4.0 million of this was recognized as revenue in the three months ended April 1, 2018. At April 1, 2018, the unearned revenue balance was $27.6 million . The Company expects to recognize approximately $12.7 million of the remaining unearned revenue in 2018, $7.2 million in 2019 and $7.8 million thereafter. |
Restructuring Expenses
Restructuring Expenses | 3 Months Ended |
Apr. 01, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Expenses In January 2018, the Company initiated a plan to further improve its manufacturing operations and cost structure by commencing a multi-year manufacturing optimization plan which includes the consolidation of its motorcycle assembly plant in Kansas City, Missouri, into its plant in York, Pennsylvania, and the closure of its wheel operations in Adelaide, Australia. As the U.S. operations are consolidated, the Company expects approximately 800 jobs will be eliminated with the closure of Kansas City operations and approximately 450 jobs will be added in York by 2019. Approximately 90 jobs will be eliminated in Adelaide. The Company expects to incur restructuring and other consolidation costs of $170 to $200 million in the Motorcycles segment related to this plan through 2019, of which approximately 70% will be cash charges. This includes $135 million to $155 million of restructuring expense and $35 million to $45 million of costs related to temporary inefficiencies. The Company expects restructuring expenses to include the cost of employee termination benefits, accelerated depreciation and other project implementation costs of $50 million to $60 million, $45 million to $50 million and $40 million to $45 million, respectively. Restructuring expense is recorded as a separate line item in the consolidated statement of income and the accrued restructuring liability is recorded in accrued liabilities in the consolidated balance sheet. The Company expects the plan to be completed by mid-2019. Changes in the accrued restructuring liability (in thousands) were as follows: Three months ended April 1, 2018 Employee Termination Benefits Accelerated Depreciation Other Total Balance, beginning of period $ — $ — $ — $ — Restructuring expense (40,791 ) (5,613 ) (438 ) (46,842 ) Utilized - cash 2,300 — 374 2,674 Utilized - non cash — 5,613 — 5,613 Foreign currency changes 204 — 1 205 Balance, end of period $ (38,287 ) $ — $ (63 ) $ (38,350 ) The Company incurred $0.7 million of incremental cost of goods sold during the three month period ended April 1, 2018 due to temporary inefficiencies resulting from implementing the manufacturing optimization plan. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s 2018 effective income tax rate for the three months ended April 1, 2018 was 24.1% compared to 34.5% for the three months ended March 26, 2017 . The Company's effective income tax rate was lower in 2018 due primarily to the impact of the 2017 Tax Cuts and Jobs Act (2017 Tax Act) that was enacted in December of 2017. The 2017 Tax Act included broad and complex changes to the U.S. tax code including a reduction of the corporate income tax rate from 35% to 21%, the move toward a territorial tax system and the elimination of the domestic manufacturing deduction. During the three months ended December 31, 2017, the Company recorded a $53.1 million tax expense to recognize the initial effects of the 2017 Tax Act relating primarily to the remeasurement of deferred tax assets. The Company has deemed its income tax estimates related to the 2017 Tax Act 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 believes future guidance, interpretations and pronouncements will add clarity to the numerous aspects of the 2017 Tax Act that may impact the Company which may result in revisions to the Company’s provisional estimates. There were no material changes to these provisional estimates during the three month period ended April, 1 2018. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 01, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three months ended April 1, March 26, Numerator : Net income used in computing basic and diluted earnings per share $ 174,763 $ 186,369 Denominator : Denominator for basic earnings per share - weighted-average common shares 168,139 176,001 Effect of dilutive securities - employee stock compensation plan 1,035 1,069 Denominator for diluted earnings per share - adjusted weighted-average shares outstanding 169,174 177,070 Earnings per common share: Basic $ 1.04 $ 1.06 Diluted $ 1.03 $ 1.05 Outstanding options to purchase 1.0 million and 0.8 million shares of common stock for the three months ended April 1, 2018 and March 26, 2017 , respectively, were not included in the Company’s computation of dilutive securities because the exercise price was greater than the market price, and therefore, the effect would have been anti-dilutive. The Company has a share-based compensation plan under which employees may be granted share-based awards including restricted stock units (RSUs). Non-forfeitable dividend equivalents are paid on unvested RSUs. As such, RSUs are considered participating securities under the two-class method of calculating earnings per share as described in ASC Topic 260, “Earnings per Share.” The two-class method of calculating earnings per share did not have a material impact on the Company’s earnings per share calculation for the three month periods ended April 1, 2018 and March 26, 2017 . |
Additional Balance Sheet and Ca
Additional Balance Sheet and Cash Flow Information | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Balance Sheet and Cash Flow Information | Additional Balance Sheet and Cash Flow Information Marketable Securities The Company’s marketable securities consisted of the following (in thousands): April 1, December 31, March 26, Available-for-sale corporate bonds $ — $ — $ 5,004 Mutual funds 49,402 48,006 41,674 Total marketable securities $ 49,402 $ 48,006 $ 46,678 The Company’s available-for-sale corporate debt securities are carried at fair value with any unrealized gains or losses reported in other comprehensive income. During the first three months of 2017 , unrealized losses were not material. There were no available-for-sale debt securities outstanding at April 1, 2018 . The mutual fund investments are held by the Company to fund certain deferred compensation obligations. These investments are carried at fair value with gains and losses recorded in net income and are included in other long-term assets on the consolidated balance sheets. Inventories Substantially all inventories located in the United States are valued using the last-in, first-out (LIFO) method. Other inventories are valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Inventories consisted of the following (in thousands): April 1, December 31, March 26, Raw materials and work in process $ 177,652 $ 161,664 $ 153,195 Motorcycle finished goods 289,046 289,530 263,408 Parts and accessories and general merchandise 150,228 139,363 117,140 Inventory at lower of FIFO cost or net realizable value 616,926 590,557 533,743 Excess of FIFO over LIFO cost (52,355 ) (52,355 ) (48,267 ) Total inventories, net $ 564,571 $ 538,202 $ 485,476 Operating Cash Flow The reconciliation of net income to net cash provided by operating activities is as follows (in thousands): Three months ended April 1, March 26, Cash flows from operating activities: Net income $ 174,763 $ 186,369 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 62,473 54,900 Amortization of deferred loan origination costs 20,116 20,078 Amortization of financing origination fees 2,028 2,076 Provision for long-term employee benefits 9,747 7,475 Employee benefit plan contributions and payments (5,486 ) (29,957 ) Stock compensation expense 7,962 6,992 Net change in wholesale finance receivables related to sales (239,902 ) (317,087 ) Provision for credit losses 30,052 43,589 Deferred income taxes 3,188 3,989 Other, net (1,902 ) (5,334 ) Changes in current assets and liabilities: Accounts receivable, net (17,688 ) (39,230 ) Finance receivables - accrued interest and other 4,758 5,142 Inventories (21,542 ) 23,476 Accounts payable and accrued liabilities 148,923 182,928 Derivative instruments 702 3,120 Other 13,402 11,413 Total adjustments 16,831 (26,430 ) Net cash provided by operating activities $ 191,594 $ 159,939 |
Finance Receivables
Finance Receivables | 3 Months Ended |
Apr. 01, 2018 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables The Company provides retail financial services to customers of the Company’s independent dealers in the United States and Canada. The origination of retail loans is a separate and distinct transaction between the Company and the retail customer, unrelated to the Company’s sale of product to its dealers. Retail finance receivables consist of secured promissory notes and secured installment sales contracts. The Company holds either titles or liens on titles to vehicles financed by promissory notes and installment sales contracts. The Company offers wholesale financing to the Company’s independent dealers. Wholesale loans to dealers are generally secured by financed inventory or property and are originated in the U.S. and Canada. Finance receivables, net, consisted of the following (in thousands): April 1, December 31, March 26, Retail $ 6,064,192 $ 6,140,600 $ 6,002,550 Wholesale 1,252,600 1,016,957 1,327,602 Total finance receivables 7,316,792 7,157,557 7,330,152 Allowance for credit losses (190,350 ) (192,471 ) (184,030 ) Finance receivables, net $ 7,126,442 $ 6,965,086 $ 7,146,122 A provision for credit losses on finance receivables is charged or credited to earnings in amounts that the Company believes are sufficient to maintain the allowance for credit losses at a level that is adequate to cover losses of principal inherent in the existing portfolio. The allowance for credit losses represents management’s estimate of probable losses inherent in the finance receivable portfolio as of the balance sheet date. However, due to the use of projections and assumptions in estimating the losses, the amount of losses actually incurred by the Company could differ from the amounts estimated. Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands): Three months ended April 1, 2018 Retail Wholesale Total Balance, beginning of period $ 186,254 $ 6,217 $ 192,471 Provision for credit losses 28,069 1,983 30,052 Charge-offs (45,081 ) — (45,081 ) Recoveries 12,908 — 12,908 Balance, end of period $ 182,150 $ 8,200 $ 190,350 Three months ended March 26, 2017 Retail Wholesale Total Balance, beginning of period $ 166,810 $ 6,533 $ 173,343 Provision for credit losses 42,160 1,429 43,589 Charge-offs (45,924 ) — (45,924 ) Recoveries 13,022 — 13,022 Balance, end of period $ 176,068 $ 7,962 $ 184,030 Finance receivables are considered impaired when management determines it is probable that the Company will be unable to collect all amounts due according to the terms of the loan agreement. Portions of the allowance for credit losses are established to cover estimated losses on finance receivables specifically identified for impairment. The unspecified portion of the allowance for credit losses covers estimated losses on finance receivables which are collectively reviewed for impairment. The retail portfolio primarily consists of a large number of small balance, homogeneous finance receivables. The Company performs a periodic and systematic collective evaluation of the adequacy of the retail allowance for credit losses. The Company utilizes loss forecast models which consider a variety of factors including, but not limited to, historical loss trends, origination or vintage analysis, known and inherent risks in the portfolio, the value of the underlying collateral, recovery rates, and current economic conditions including items such as unemployment rates. Retail finance receivables are not evaluated individually for impairment prior to charge-off and, therefore, are not reported as impaired loans. The wholesale portfolio is primarily composed of large balance, non-homogeneous loans. The Company’s evaluation for the wholesale allowance for credit losses is first based on a loan-by-loan review. A specific allowance for credit losses is established for wholesale finance receivables determined to be individually impaired when management concludes that the borrower will not be able to make full payment of the contractual amounts due based on the original terms of the loan agreement. The impairment is determined based on the cash that the Company expects to receive discounted at the loan’s original interest rate or the fair value of the collateral, if the loan is collateral-dependent. Finance receivables in the wholesale portfolio that are not considered impaired on an individual basis are segregated, based on similar risk characteristics, according to the Company’s internal risk rating system and collectively evaluated for impairment. The related allowance for credit losses is based on factors such as the specific borrower’s financial performance and ability to repay, the Company’s past loan loss experience, current economic conditions, and the value of the underlying collateral. Generally, it is the Company’s policy not to change the terms and conditions of finance receivables. However, to minimize the economic loss, the Company may modify certain finance receivables in troubled debt restructurings. Total restructured finance receivables are not significant. The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in thousands): April 1, 2018 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ 184 $ 184 Collectively evaluated for impairment 182,150 8,016 190,166 Total allowance for credit losses $ 182,150 $ 8,200 $ 190,350 Finance receivables, ending balance: Individually evaluated for impairment $ — $ 220 $ 220 Collectively evaluated for impairment 6,064,192 1,252,380 7,316,572 Total finance receivables $ 6,064,192 $ 1,252,600 $ 7,316,792 December 31, 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 March 26, 2017 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 176,068 7,962 184,030 Total allowance for credit losses $ 176,068 $ 7,962 $ 184,030 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 6,002,550 1,327,602 7,330,152 Total finance receivables $ 6,002,550 $ 1,327,602 $ 7,330,152 Additional information related to the wholesale finance receivables that are individually deemed to be impaired under ASC Topic 310, “Receivables,” at April 1, 2018 includes (in thousands): Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Wholesale: No related allowance recorded $ — $ — $ — $ — $ — Related allowance recorded 251 220 184 251 — Total impaired wholesale finance receivables $ 251 $ 220 $ 184 $ 251 $ — Retail finance receivables are contractually delinquent if the minimum payment is not received by the specified due date. Retail finance receivables are generally charged-off when the receivable is 120 days or more delinquent, the related asset is repossessed or the receivable is otherwise deemed uncollectible. All retail finance receivables accrue interest until either collected or charged-off. Accordingly, as of April 1, 2018 , December 31, 2017 and March 26, 2017 , all retail finance receivables were accounted for as interest-earning receivables, of which $27.9 million , $40.0 million and $28.5 million , respectively, were 90 days or more past due. Wholesale finance receivables are delinquent if the minimum payment is not received by the contractual due date. Wholesale finance receivables are written down once management determines that the specific borrower does not have the ability to repay the loan in full. Interest continues to accrue on past due finance receivables until the date the finance receivable becomes uncollectible and the finance receivable is placed on non-accrual status. The Company will resume accruing interest on these accounts when payments are current according to the terms of the loans and future payments are reasonably assured. While on non-accrual status, all cash received is applied to principal or interest as appropriate. The recorded investment of non-accrual status wholesale finance receivables at April 1, 2018 was $0.2 million . There were no wholesale receivables on non-accrual status at December 31, 2017 or March 26, 2017 . At April 1, 2018 , December 31, 2017 and March 26, 2017 , $0.2 million , $0.1 million , and $0.6 million of wholesale finance receivables were 90 days or more past due and accruing interest, respectively. An analysis of the aging of past due finance receivables was as follows (in thousands): April 1, 2018 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Total Finance Receivables Retail $ 5,897,632 $ 105,366 $ 33,275 $ 27,919 $ 166,560 $ 6,064,192 Wholesale 1,247,175 549 4,705 171 5,425 1,252,600 Total $ 7,144,807 $ 105,915 $ 37,980 $ 28,090 $ 171,985 $ 7,316,792 December 31, 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 March 26, 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 $ 5,840,164 $ 100,471 $ 33,403 $ 28,512 $ 162,386 $ 6,002,550 Wholesale 1,325,575 1,129 273 625 2,027 1,327,602 Total $ 7,165,739 $ 101,600 $ 33,676 $ 29,137 $ 164,413 $ 7,330,152 A significant part of managing the Company's finance receivable portfolios includes the assessment of credit risk associated with each borrower. As the credit risk varies between the retail and wholesale portfolios, the Company utilizes different credit risk indicators for each portfolio. The Company manages retail credit risk through its credit approval policy and ongoing collection efforts. The Company uses FICO scores, a standard credit rating measurement, to differentiate the expected default rates of retail credit applicants, enabling the Company to better evaluate credit applicants for approval and to tailor pricing according to this assessment. Retail loans with a FICO score of 640 or above at origination are considered prime, and loans with a FICO score below 640 are considered sub-prime. These credit quality indicators are determined at the time of loan origination and are not updated subsequent to the loan origination date. The recorded investment in retail finance receivables, by credit quality indicator, was as follows (in thousands): April 1, 2018 December 31, 2017 March 26, 2017 Prime $ 4,923,237 $ 4,966,193 $ 4,806,730 Sub-prime 1,140,955 1,174,407 1,195,820 Total $ 6,064,192 $ 6,140,600 $ 6,002,550 The Company's credit risk on the wholesale portfolio is different from that of the retail portfolio. Whereas the retail portfolio represents a relatively homogeneous pool of retail finance receivables that exhibit more consistent loss patterns, the wholesale portfolio exposures are less consistent. The Company utilizes an internal credit risk rating system to manage credit risk exposure consistently across wholesale borrowers and individually evaluates credit risk factors for each borrower. The Company uses the following internal credit quality indicators, based on an internal risk rating system, listed from highest level of risk to lowest level of risk for the wholesale portfolio: Doubtful, Substandard, Special Mention, Medium Risk and Low Risk. Based upon management’s review, the dealers classified in the Doubtful category are the dealers with the greatest likelihood of being charged-off, while the dealers classified as Low Risk are least likely to be charged-off. The internal rating system considers factors such as the specific borrower's ability to repay and the estimated value of any collateral. Dealer risk rating classifications are reviewed and updated on a quarterly basis. The recorded investment in wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands): April 1, 2018 December 31, 2017 March 26, 2017 Doubtful $ 1,582 $ 688 $ 1,133 Substandard 3,368 3,837 9,213 Special Mention 33,085 26,866 19,898 Medium Risk 10,512 9,917 14,648 Low Risk 1,204,053 975,649 1,282,710 Total $ 1,252,600 $ 1,016,957 $ 1,327,602 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Apr. 01, 2018 | |
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 has periodically utilized treasury rate lock contracts to fix the interest rate on a portion of the principal related to the issuance of long-term debt. All such 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 (in thousands): April 1, 2018 December 31, 2017 March 26, 2017 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) Notional Value Asset Fair Value (a) Liability Fair Value (b) Foreign currency contracts (c) $ 720,869 $ 3,442 $ 22,807 $ 675,724 $ 1,388 $ 21,239 $ 534,652 $ 12,195 $ 1,015 Commodity contracts (c) 728 — 11 915 — 69 1,027 23 — Total $ 721,597 $ 3,442 $ 22,818 $ 676,639 $ 1,388 $ 21,308 $ 535,679 $ 12,218 $ 1,015 April 1, 2018 December 31, 2017 March 26, 2017 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) Notional Value Asset Fair Value (a) Liability Fair Value (b) Commodity contracts $ 4,577 $ 171 $ 32 $ 4,532 $ 381 $ — $ 5,046 $ 228 $ 37 Total $ 4,577 $ 171 $ 32 $ 4,532 $ 381 $ — $ 5,046 $ 228 $ 37 (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 related to derivative financial instruments designated as cash flow hedges (in thousands): Amount of Gain/(Loss) Recognized in OCI, before tax Three months ended Cash Flow Hedges April 1, March 26, Foreign currency contracts $ (5,890 ) $ (11,797 ) Commodity contracts (16 ) (106 ) Total $ (5,906 ) $ (11,903 ) Amount of Gain/(Loss) Reclassified from AOCL into Income Three months ended Expected to be Reclassified Cash Flow Hedges April 1, March 26, Over the Next Twelve Months Foreign currency contracts (a) $ (6,709 ) $ 2,516 $ (15,783 ) Commodity contracts (a) (73 ) 48 1 Treasury rate locks (b) (126 ) (90 ) (506 ) Total $ (6,908 ) $ 2,474 $ (16,288 ) (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 three months ended April 1, 2018 and March 26, 2017 , 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 related to derivative financial instruments not designated as hedging instruments (in thousands): Amount of Gain/(Loss) Recognized in Income on Derivative Three months ended Derivatives Not Designated As Hedges April 1, March 26, Commodity contracts (a) $ 6 $ 20 Total $ 6 $ 20 (a) Gain/(loss) recognized in income is included in cost of goods sold The Company is exposed to credit loss risk in the event of non-performance by counterparties to these derivative financial instruments. Although no assurances can be given, the Company does not expect any of the counterparties to these derivative financial instruments to fail to meet its obligations. To manage credit loss risk, the Company evaluates counterparties based on credit ratings and, on a quarterly basis, evaluates each hedge’s net position relative to the counterparty’s ability to cover its position. |
Debt
Debt | 3 Months Ended |
Apr. 01, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt with a contractual term of one year or less is generally classified as short-term debt and consisted of the following (in thousands): April 1, December 31, March 26, Unsecured commercial paper $ 1,036,976 $ 1,273,482 $ 953,357 Total short-term debt $ 1,036,976 $ 1,273,482 $ 953,357 Debt with a contractual term greater than one year is generally classified as long-term debt and consisted of the following (in thousands): April 1, December 31, March 26, Secured debt (Note 11) Asset-backed Canadian commercial paper conduit facility $ 158,162 $ 174,779 $ 141,013 Asset-backed U.S. commercial paper conduit facilities 281,311 279,457 286,205 Asset-backed securitization debt 285,130 353,085 686,396 Less: unamortized discount and debt issuance costs (337 ) (461 ) (1,022 ) Total secured debt 724,266 806,860 1,112,592 Unsecured notes (at par value) 1.55% Medium-term notes due in 2017, issued November 2014 — — 400,000 6.80% Medium-term notes due in 2018, issued May 2008 877,488 877,488 877,488 2.25% Medium-term notes due in 2019, issued January 2016 600,000 600,000 600,000 Floating-rate Medium-term notes due in 2019, issued March 2017 (a) 150,000 150,000 150,000 2.40% Medium-term notes due in 2019, issued September 2014 600,000 600,000 600,000 2.15% Medium-term notes due in 2020, issued February 2015 600,000 600,000 600,000 2.40% Medium-term notes due in 2020, issued March 2017 350,000 350,000 350,000 2.85% Medium-term notes due in 2021, issued January 2016 600,000 600,000 600,000 2.55% Medium-term notes due in 2022, issued June 2017 400,000 400,000 — 3.35% Medium-term notes due in 2023, issued February 2018 350,000 — — 3.50% Senior unsecured notes due in 2025, issued July 2015 450,000 450,000 450,000 4.625% Senior unsecured notes due in 2045, issued July 2015 300,000 300,000 300,000 Less: unamortized discount and debt issuance costs (20,564 ) (19,821 ) (22,222 ) Gross long-term debt 5,981,190 5,714,527 6,017,858 Less: current portion of long-term debt, net of unamortized discount and debt issuance costs (1,872,679 ) (1,127,269 ) (697,061 ) Total long-term debt $ 4,108,511 $ 4,587,258 $ 5,320,797 (a) Floating interest rate based on LIBOR plus 35 bps. |
Asset-Backed Financing
Asset-Backed Financing | 3 Months Ended |
Apr. 01, 2018 | |
Transfers and Servicing [Abstract] | |
Asset-Backed Financing | Asset-Backed Financing The Company participates in asset-backed financing both through asset-backed securitization transactions and through asset-backed commercial paper conduit facilities. In the Company's asset-backed financing programs, the Company transfers retail motorcycle finance receivables to special purpose entities (SPEs), which are considered VIEs under U.S. GAAP. Each SPE then converts those assets into cash, through the issuance of debt. The Company retains servicing rights for all of the retail motorcycle finance receivables transferred to SPEs as part of an asset-backed financing. The accounting treatment for asset-backed financings depends on the terms of the related transaction and the Company’s continuing involvement with the VIE. In transactions where the Company has power over the significant activities of the VIE and has an obligation to absorb losses or the right to receive benefits from the VIE that are potentially significant to the VIE, the Company is the primary beneficiary of the VIE and consolidates the VIE within its consolidated financial statements. On a consolidated basis, the asset-backed financing is treated as a secured borrowing in this type of transaction and is referred to as an on-balance sheet asset-backed financing. In transactions where the Company is not the primary beneficiary of the VIE, the Company must determine whether it can achieve a sale for accounting purposes under ASC Topic 860, "Transfers and Servicing." To achieve a sale for accounting purposes, the assets being transferred must be legally isolated, not be constrained by restrictions from further transfer, and be deemed to be beyond the Company’s control. If the Company does not meet all of these criteria for sale accounting, then the transaction is accounted for as a secured borrowing and is referred to as an on-balance sheet asset-backed financing. If the Company meets all three of the sale criteria above, the transaction is recorded as a sale for accounting purposes and is referred to as an off-balance sheet asset-backed financing. Upon sale, the retail motorcycle finance receivables are removed from the Company’s balance sheet and a gain or loss is recognized for the difference between the cash proceeds received, the assets derecognized, and the liabilities recognized as part of the transaction. The gain or loss on sale is included in Financial Services revenue in the Consolidated 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. The following tables show the assets and liabilities related to the on-balance sheet asset-backed financings included in the financial statements (in thousands): April 1, 2018 Finance receivables Allowance for credit losses Restricted cash Other assets Total assets Asset-backed debt On-balance sheet assets and liabilities Consolidated VIEs Asset-backed securitizations $ 367,584 $ (11,387 ) $ 38,207 $ 1,207 $ 395,611 $ 284,793 Asset-backed U.S. commercial paper conduit facilities 299,318 (9,297 ) 16,933 968 307,922 281,311 Unconsolidated VIEs Asset-backed Canadian commercial paper conduit facility 183,073 (3,085 ) 10,600 320 190,908 158,162 Total on-balance sheet assets and liabilities $ 849,975 $ (23,769 ) $ 65,740 $ 2,495 $ 894,441 $ 724,266 December 31, 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 March 26, 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 $ 772,152 $ (23,239 ) $ 63,473 $ 2,532 $ 814,918 $ 685,374 Asset-backed U.S. commercial paper conduit facilities 304,091 (9,178 ) 15,781 672 311,366 286,205 Unconsolidated VIEs Asset-backed Canadian commercial paper conduit facility 155,240 (3,048 ) 11,025 382 163,599 141,013 Total on-balance sheet assets and liabilities $ 1,231,483 $ (35,465 ) $ 90,279 $ 3,586 $ 1,289,883 $ 1,112,592 On-Balance Sheet Asset-Backed Securitization VIEs The Company transfers U.S. retail motorcycle finance receivables to SPEs which in turn issue secured notes to investors, with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance receivables. Each on-balance sheet asset-backed securitization SPE is a separate legal entity, and the U.S. retail motorcycle finance receivables included in the asset-backed securitizations are only available for payment of the secured debt and other obligations arising from the asset-backed securitization transaction and are not available to pay other obligations or claims of the Company’s creditors until the associated secured debt and other obligations are satisfied. Restricted cash balances held by the SPEs are used only to support the securitizations. There are no amortization schedules for the secured notes; however, the debt is reduced monthly as available collections on the related U.S. retail motorcycle finance receivables are applied to outstanding principal. The secured notes’ contractual lives have various maturities ranging from 2020 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 the first quarter of 2018 or 2017. On-Balance Sheet Asset-Backed U.S. Commercial Paper Conduit Facilities VIE In December 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 receivables held by the relevant 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. The contractual maturity of the debt is approximately 5 years . Unless earlier terminated or extended by mutual agreement of the Company and the lenders, as of April 1, 2018 , 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. The following table includes quarterly transfers of U.S. retail motorcycle finance receivables to the U.S. Conduit and the respective proceeds (in thousands): 2018 2017 Transfers Proceeds Transfers Proceeds First quarter $ 32,900 $ 29,300 $ 333,400 $ 300,000 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 the debt. The terms for this debt provide for interest on the outstanding principal based on prevailing market interest rates plus a specified margin. The Canadian Conduit also provides for a program fee and an unused commitment fee based on the unused portion of the total aggregate commitment of C$220.0 million . There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the Canadian Conduit, any outstanding principal will continue to be reduced monthly through available collections. The contractual maturity of the debt is approximately 5 years . Unless earlier terminated or extended by mutual agreement between the Company and the lenders, as of April 1, 2018 , the Canadian Conduit has an expiration date of June 30, 2018 . The Company is not the primary beneficiary of the Canadian bank-sponsored, multi-seller conduit VIE; therefore, the Company does not consolidate the VIE. However, the Company treats the conduit facility as a secured borrowing as it maintains effective control over the assets transferred to the VIE and, therefore, does not meet the requirements for sale accounting. As the Company participates in and does not consolidate the Canadian bank-sponsored, multi-seller conduit VIE, the maximum exposure to loss associated with this VIE, which would only be incurred in the unlikely event that all the finance receivables and underlying collateral have no residual value, was $32.7 million at April 1, 2018 . The maximum exposure is not an indication of the Company's expected loss exposure. The following table includes quarterly transfers of Canadian retail motorcycle finance receivables to the Canadian Conduit and the respective proceeds (in thousands): 2018 2017 Transfers Proceeds Transfers Proceeds First quarter $ 7,600 $ 6,200 $ 6,300 $ 5,500 Off-Balance Sheet Asset-Backed Securitization VIE There were no off-balance sheet asset-backed securitization transactions during first quarter of 2018 or 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 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 April 1, 2018 , the assets of this off-balance sheet asset-backed securitization VIE were $127.6 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 April 1, 2018 . This is based on the unlikely event that all the receivables have underwriting defects or other defects that trigger a violation of certain covenants and that the underlying collateral has no residual value. This maximum exposure is not an indication of expected losses. Servicing Activities The Company services all retail motorcycle finance receivables that it originates. When the Company transfers retail motorcycle finance receivables to SPEs through asset-backed financings, the Company retains the right to service the finance receivables and receives servicing fees based on the securitized finance receivables balance and certain ancillary fees. In on-balance sheet asset-backed financings, servicing fees are eliminated in consolidation and therefore are not recorded on a consolidated basis. In off-balance sheet asset-backed financings, servicing fees and ancillary fees are recorded in Financial Services revenue in the Consolidated 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 $0.4 million and $0.6 million during the first quarter of 2018 and 2017, respectively. The unpaid principal balance of retail motorcycle finance receivables serviced by the Company was as follows (in thousands): April 1, December 31, March 26, On-balance sheet retail motorcycle finance receivables $ 5,923,564 $ 5,993,185 $ 5,867,143 Off-balance sheet retail motorcycle finance receivables 127,643 146,425 212,764 Total serviced retail motorcycle finance receivables $ 6,051,207 $ 6,139,610 $ 6,079,907 The unpaid principal balance of retail motorcycle finance receivables serviced by the Company 30 days or more delinquent was as follows (in thousands): Amount 30 days or more past due: April 1, December 31, March 26, On-balance sheet retail motorcycle finance receivables $ 166,560 $ 227,127 $ 162,386 Off-balance sheet retail motorcycle finance receivables 1,652 2,106 1,476 Total serviced retail motorcycle finance receivables $ 168,212 $ 229,233 $ 163,862 Credit losses, net of recoveries for the retail motorcycle finance receivables serviced by the Company were as follows (in thousands): Three months ended April 1, March 26, On-balance sheet retail motorcycle finance receivables $ 32,173 $ 32,902 Off-balance sheet retail motorcycle finance receivables 361 414 Total serviced retail motorcycle finance receivables $ 32,534 $ 33,316 |
Fair Value
Fair Value | 3 Months Ended |
Apr. 01, 2018 | |
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; 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 (in thousands): April 1, 2018 Balance Quoted Prices in Significant Significant Assets: Cash equivalents $ 653,124 $ 326,324 $ 326,800 $ — Marketable securities 49,402 49,402 — — Derivatives 3,613 — 3,613 — Total $ 706,139 $ 375,726 $ 330,413 $ — Liabilities: Derivatives $ 22,850 $ — $ 22,850 $ — December 31, 2017 Balance Quoted Prices in Significant Significant 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 $ — March 26, 2017 Balance Quoted Prices in Significant Significant Assets: Cash equivalents $ 628,895 $ 370,084 $ 258,811 $ — Marketable securities 46,678 41,674 5,004 — Derivatives 12,446 — 12,446 — Total $ 688,019 $ 411,758 $ 276,261 $ — Liabilities: Derivatives $ 1,052 $ — $ 1,052 $ — 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 $23.8 million , $19.6 million and $20.1 million at April 1, 2018 , December 31, 2017 and March 26, 2017 , respectively, for which the fair value adjustment was $8.3 million , $9.0 million and $6.3 million , respectively. Fair value is estimated using Level 2 inputs based on the recent market values of repossessed inventory. Fair Value of Financial Instruments Measured at Cost The carrying value of the Company's cash and cash equivalents and restricted cash approximates their fair values. The following table summarizes the fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost (in thousands): April 1, 2018 December 31, 2017 March 26, 2017 Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Assets: Finance receivables, net $ 7,195,908 $ 7,126,442 $ 7,021,549 $ 6,965,086 $ 7,225,210 $ 7,146,122 Liabilities: Unsecured commercial paper $ 1,036,976 $ 1,036,976 $ 1,273,482 $ 1,273,482 $ 953,357 $ 953,357 Asset-backed U.S. commercial paper conduit facilities $ 281,311 $ 281,311 $ 279,457 $ 279,457 $ 286,205 $ 286,205 Asset-backed Canadian commercial paper conduit facility $ 158,162 $ 158,162 $ 174,779 $ 174,779 $ 141,013 $ 141,013 Medium-term notes $ 4,486,399 $ 4,514,798 $ 4,189,092 $ 4,165,706 $ 4,234,664 $ 4,163,797 Senior unsecured notes $ 750,440 $ 742,126 $ 784,433 $ 741,961 $ 755,646 $ 741,469 Asset-backed securitization debt $ 283,591 $ 284,793 $ 351,767 $ 352,624 $ 685,953 $ 685,374 Finance Receivables, Net – The carrying value of retail and wholesale finance receivables in the financial statements is amortized cost less an allowance for credit losses. The fair value of retail finance receivables is generally calculated by discounting future cash flows using an estimated discount rate that reflects current credit, interest rate and prepayment risks associated with similar types of instruments. Fair value is determined based on Level 3 inputs. The amortized cost basis of wholesale finance receivables approximates fair value because they either are short-term or have interest rates that adjust with changes in market interest rates. Debt – The carrying value of debt in the financial statements is generally amortized cost, net of discounts and debt issuance costs. The carrying value of unsecured commercial paper calculated using Level 2 inputs approximates fair value due to its short maturity. The carrying value of debt provided under the U.S. conduit facilities and Canadian conduit facility calculated using Level 2 inputs approximates fair value since the interest rates charged under the facility are tied directly to market rates and fluctuate as market rates change. The fair values of the medium-term notes and senior unsecured notes are estimated based upon rates currently available for debt with similar terms and remaining maturities (Level 2 inputs). The fair value of the debt related to on-balance sheet asset-backed securitization transactions is estimated based on pricing currently available for transactions with similar terms and maturities (Level 2 inputs). |
Product Warranty and Safety Rec
Product Warranty and Safety Recall Campaigns | 3 Months Ended |
Apr. 01, 2018 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty and Safety Recall Campaigns | Product Warranty and Recall Campaigns The Company currently provides a standard two -year limited warranty on all new motorcycles sold worldwide, except for Japan, where the Company currently provides a standard three -year limited warranty on all new motorcycles sold. In addition, the Company provides a one -year warranty for Parts & Accessories (P&A). The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company accrues for future warranty claims using an estimated cost based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary recall campaigns. The Company accrues for the estimated cost associated with voluntary recalls in the period that management approves and commits to the recall. Changes in the Company’s warranty and recall liability were as follows (in thousands): Three months ended April 1, March 26, Balance, beginning of period $ 94,202 $ 79,482 Warranties issued during the period 14,606 16,752 Settlements made during the period (16,638 ) (19,333 ) Recalls and changes to pre-existing warranty liabilities 2,905 1,310 Balance, end of period $ 95,075 $ 78,211 The liability for recall campaigns was $32.3 million , $35.3 million and $10.3 million as of April 1, 2018 , December 31, 2017 and March 26, 2017 , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Apr. 01, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has a defined benefit qualified pension plan and postretirement healthcare benefit plans that cover certain employees of the Motorcycles segment. The Company also has unfunded supplemental employee retirement plan agreements (SERPA) with certain employees which were instituted to replace benefits lost under the Tax Revenue Reconciliation Act of 1993. Service cost is allocated among selling, administrative and engineering expense, cost of goods sold and inventory. Amounts capitalized in inventory are not significant. Non-service cost components of net periodic benefit cost are presented in other income (expense), net. Refer to Note 2 regarding the adoption of ASU 2017-07 for further discussion of the impact on net periodic benefit costs. Components of net periodic benefit costs were as follows (in thousands): Three months ended April 1, March 26, Pension and SERPA Benefits Service cost $ 8,155 $ 7,896 Interest cost 20,590 21,269 Expected return on plan assets (36,891 ) (35,345 ) Amortization of unrecognized: Prior service (credit) cost (106 ) 254 Net loss 15,819 10,998 Curtailment loss 1,018 — Net periodic benefit cost $ 8,585 $ 5,072 Postretirement Healthcare Benefits Service cost $ 1,812 $ 1,875 Interest cost 2,897 3,412 Expected return on plan assets (3,541 ) (3,156 ) Amortization of unrecognized: Prior service credit (460 ) (543 ) Net loss 454 815 Net periodic benefit cost $ 1,162 $ 2,403 During the three months ended April 1, 2018, the qualified pension plan and certain postretirement healthcare plan assets and obligations were remeasured as a result of a curtailment of benefits related to the planned closure of the Company's motorcycle assembly plant in Kansas City, Missouri, discussed further in Note 4. As a result of the remeasurement, the Company recorded a benefit of $96.4 million before income taxes in other comprehensive income during the three months ended April 1, 2018. There are no required or planned qualified pension plan contributions for 2018 . The Company expects it will continue to make ongoing benefit payments under the SERPA and postretirement healthcare plans. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 01, 2018 | |
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. On March 1, 2018, the Company and the EPA each filed separate response briefs. 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. 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. In late April 2018, the Company received the closing resume from NHTSA which officially closes the investigation. The Company believes the accrued liability it has recorded will adequately cover the cost of the recall. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 01, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables set forth the changes in accumulated other comprehensive loss (AOCL) (in thousands): Three months ended April 1, 2018 Foreign currency translation adjustments Marketable securities Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (21,852 ) $ — $ (17,254 ) $ (460,943 ) $ (500,049 ) Other comprehensive income (loss) before reclassifications 6,915 — (5,906 ) 96,374 97,383 Income tax benefit (expense) — — 1,387 (22,629 ) (21,242 ) Net other comprehensive income (loss) before reclassifications 6,915 — (4,519 ) 73,745 76,141 Reclassifications: Realized (gains) losses - foreign currency contracts (a) — — 6,709 — 6,709 Realized (gains) losses - commodity contracts (a) — — 73 — 73 Realized (gains) losses - treasury rate locks (b) — — 126 — 126 Prior service credits (c) — — — (566 ) (566 ) Actuarial losses (c) — — — 16,273 16,273 Total reclassifications before tax — — 6,908 15,707 22,615 Income tax expense — — (1,624 ) (3,687 ) (5,311 ) Net reclassifications — — 5,284 12,020 17,304 Other comprehensive income 6,915 — 765 85,765 93,445 Balance, end of period $ (14,937 ) $ — $ (16,489 ) $ (375,178 ) $ (406,604 ) Three months ended March 26, 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 15,633 (16 ) (11,903 ) — 3,714 Income tax (expense) benefit (76 ) 6 4,409 — 4,339 Net other comprehensive income (loss) before reclassifications 15,557 (10 ) (7,494 ) — 8,053 Reclassifications: Realized (gains) losses - foreign currency contracts (a) — — (2,516 ) — (2,516 ) Realized (gains) losses - commodity contracts (a) — — (48 ) — (48 ) Realized (gains) losses - treasury rate locks (b) — — 90 — 90 Prior service credits (c) — — — (289 ) (289 ) Actuarial losses (c) — — — 11,813 11,813 Total reclassifications before tax — — (2,474 ) 11,524 9,050 Income tax benefit (expense) — — 916 (4,268 ) (3,352 ) Net reclassifications — — (1,558 ) 7,256 5,698 Other comprehensive income (loss) 15,557 (10 ) (9,052 ) 7,256 13,751 Balance, end of period $ (52,575 ) $ (1,204 ) $ 3,472 $ (501,323 ) $ (551,630 ) (a) Amounts reclassified to net income are included in Motorcycles and Related Products cost of goods sold. (b) Amounts reclassified to net income are included in interest expense. (c) Amounts reclassified are included in the computation of net periodic benefit cost. See Note 14 for information related to pension and postretirement benefit plans. |
Business Segments
Business Segments | 3 Months Ended |
Apr. 01, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Harley-Davidson, Inc. is the parent company for the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The Company operates in two segments: the Motorcycles & Related Products (Motorcycles) segment and the Financial Services segment. The Company’s reportable segments are strategic business units that offer different products and services and are managed separately based on the fundamental differences in their operations. Selected segment information is set forth below (in thousands): Three months ended April 1, March 26, Motorcycles net revenue $ 1,363,947 $ 1,328,711 Gross profit 473,773 474,823 Selling, administrative and engineering expense 254,093 238,277 Restructuring expense 46,842 — Operating income from Motorcycles 172,838 236,546 Financial Services revenue 178,174 173,221 Financial Services expense 114,595 120,585 Operating income from Financial Services 63,579 52,636 Operating income $ 236,417 $ 289,182 As discussed in Note 2, the Company adopted ASU 2017-07 on January 1, 2018 which required the Company to record the non-service cost components of net periodic benefit plan costs in non-operating income on a prospective and retrospective basis. As a result, operating income from Motorcycles excludes these costs for all periods presented. |
Supplemental Consolidating Data
Supplemental Consolidating Data | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Consolidating Data | Supplemental Consolidating Data The supplemental consolidating data for the periods noted is presented for informational purposes. The supplemental consolidating data may be different than segment information presented elsewhere due to the allocation of intercompany eliminations to the reportable segments. All supplemental data is presented in thousands. Three months ended April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 1,366,246 $ — $ (2,299 ) $ 1,363,947 Financial Services — 178,460 (286 ) 178,174 Total revenue 1,366,246 178,460 (2,585 ) 1,542,121 Costs and expenses: Motorcycles and Related Products cost of goods sold 890,174 — — 890,174 Financial Services interest expense — 48,450 — 48,450 Financial Services provision for credit losses — 30,052 — 30,052 Selling, administrative and engineering expense 254,401 38,391 (2,606 ) 290,186 Restructuring expense 46,842 — — 46,842 Total costs and expenses 1,191,417 116,893 (2,606 ) 1,305,704 Operating income 174,829 61,567 21 236,417 Other income (expense), net 220 — — 220 Investment income 111,203 — (110,000 ) 1,203 Interest expense 7,690 — — 7,690 Income before provision for income taxes 278,562 61,567 (109,979 ) 230,150 Provision for income taxes 40,233 15,154 — 55,387 Net income $ 238,329 $ 46,413 $ (109,979 ) $ 174,763 Three months ended March 26, 2017 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 1,330,618 $ — $ (1,907 ) $ 1,328,711 Financial Services — 173,557 (336 ) 173,221 Total revenue 1,330,618 173,557 (2,243 ) 1,501,932 Costs and expenses: Motorcycles and Related Products cost of goods sold 853,888 — — 853,888 Financial Services interest expense — 43,289 — 43,289 Financial Services provision for credit losses — 43,589 — 43,589 Selling, administrative and engineering expense 238,630 35,614 (2,260 ) 271,984 Total costs and expenses 1,092,518 122,492 (2,260 ) 1,212,750 Operating income 238,100 51,065 17 289,182 Other income (expense), net 2,296 — — 2,296 Investment income 106,879 — (106,000 ) 879 Interest expense 7,673 — — 7,673 Income before provision for income taxes 339,602 51,065 (105,983 ) 284,684 Provision for income taxes 79,157 19,158 — 98,315 Net income $ 260,445 $ 31,907 $ (105,983 ) $ 186,369 April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 403,009 $ 350,508 $ — $ 753,517 Accounts receivable, net 686,265 — (331,158 ) 355,107 Finance receivables, net — 2,341,918 — 2,341,918 Inventories 564,571 — — 564,571 Restricted cash — 54,569 — 54,569 Other current assets 108,613 44,724 (2,865 ) 150,472 Total current assets 1,762,458 2,791,719 (334,023 ) 4,220,154 Finance receivables, net — 4,784,524 — 4,784,524 Property, plant and equipment, net 887,522 47,123 — 934,645 Prepaid pension costs 122,230 — — 122,230 Goodwill 56,524 — — 56,524 Deferred income taxes 36,140 42,543 (1,059 ) 77,624 Other long-term assets 145,344 23,514 (86,938 ) 81,920 $ 3,010,218 $ 7,689,423 $ (422,020 ) $ 10,277,621 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 297,162 $ 353,036 $ (331,158 ) $ 319,040 Accrued liabilities 462,279 106,149 (2,020 ) 566,408 Short-term debt — 1,036,976 — 1,036,976 Current portion of long-term debt, net — 1,872,679 — 1,872,679 Total current liabilities 759,441 3,368,840 (333,178 ) 3,795,103 Long-term debt, net 742,126 3,366,385 — 4,108,511 Pension liability 54,921 — — 54,921 Postretirement healthcare liability 113,031 — — 113,031 Other long-term liabilities 171,389 35,899 2,818 210,106 Commitments and contingencies (Note 15) Shareholders’ equity 1,169,310 918,299 (91,660 ) 1,995,949 $ 3,010,218 $ 7,689,423 $ (422,020 ) $ 10,277,621 December 31, 2017 HDMC Entities HDFS Entities 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 15) Shareholders’ equity 951,549 983,519 (90,791 ) 1,844,277 $ 2,696,360 $ 7,523,069 $ (246,757 ) $ 9,972,672 March 26, 2017 HDMC Entities HDFS Entities Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 479,439 $ 360,261 $ — $ 839,700 Marketable securities 5,004 — — 5,004 Accounts receivable, net 740,231 — (404,653 ) 335,578 Finance receivables, net — 2,354,095 — 2,354,095 Inventories 485,476 — — 485,476 Restricted cash — 75,705 — 75,705 Other current assets 102,298 40,064 — 142,362 Total current assets 1,812,448 2,830,125 (404,653 ) 4,237,920 Finance receivables, net — 4,792,027 — 4,792,027 Property, plant and equipment, net 913,462 39,582 — 953,044 Goodwill 53,967 — — 53,967 Deferred income taxes 98,291 68,306 (1,401 ) 165,196 Other long-term assets 137,712 25,790 (83,801 ) 79,701 $ 3,015,880 $ 7,755,830 $ (489,855 ) $ 10,281,855 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 333,227 $ 430,110 $ (404,653 ) $ 358,684 Accrued liabilities 442,181 105,060 396 547,637 Short-term debt — 953,357 — 953,357 Current portion of long-term debt, net — 697,061 — 697,061 Total current liabilities 775,408 2,185,588 (404,257 ) 2,556,739 Long-term debt, net 741,469 4,579,328 — 5,320,797 Pension liability 52,559 — — 52,559 Postretirement healthcare liability 171,143 — — 171,143 Other long-term liabilities 152,974 31,506 2,728 187,208 Commitments and contingencies (Note 15) Shareholders’ equity 1,122,327 959,408 (88,326 ) 1,993,409 $ 3,015,880 $ 7,755,830 $ (489,855 ) $ 10,281,855 Three months ended April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from operating activities: Net income $ 238,329 $ 46,413 $ (109,979 ) $ 174,763 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 61,405 1,068 — 62,473 Amortization of deferred loan origination costs — 20,116 — 20,116 Amortization of financing origination fees 165 1,863 — 2,028 Provision for long-term employee benefits 9,747 — — 9,747 Employee benefit plan contributions and payments (5,486 ) — — (5,486 ) Stock compensation expense 7,072 890 — 7,962 Net change in wholesale finance receivables related to sales — — (239,902 ) (239,902 ) Provision for credit losses — 30,052 — 30,052 Deferred income taxes 2,469 979 (260 ) 3,188 Other, net (2,081 ) 200 (21 ) (1,902 ) Changes in current assets and liabilities: Accounts receivable, net (195,123 ) — 177,435 (17,688 ) Finance receivables - accrued interest and other — 4,758 — 4,758 Inventories (21,542 ) — — (21,542 ) Accounts payable and accrued liabilities 121,833 201,056 (173,966 ) 148,923 Derivative instruments 666 36 — 702 Other 9,935 6,269 (2,802 ) 13,402 Total adjustments (10,940 ) 267,287 (239,516 ) 16,831 Net cash provided by operating activities 227,389 313,700 (349,495 ) 191,594 Three months ended April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from investing activities: Capital expenditures (25,746 ) (2,690 ) — (28,436 ) Origination of finance receivables — (1,786,309 ) 988,242 (798,067 ) Collections on finance receivables — 1,558,547 (748,747 ) 809,800 Other (4,948 ) — — (4,948 ) Net cash used by investing activities (30,694 ) (230,452 ) 239,495 (21,651 ) Cash flows from financing activities: Proceeds from issuance of medium-term notes — 347,553 — 347,553 Repayments of securitization debt — (67,955 ) — (67,955 ) Borrowings of asset-backed commercial paper — 35,504 — 35,504 Repayments of asset-backed commercial paper — (45,907 ) — (45,907 ) Net decrease in credit facilities and unsecured commercial paper — (234,145 ) — (234,145 ) Dividends paid (62,731 ) (110,000 ) 110,000 (62,731 ) Purchase of common stock for treasury (72,968 ) — — (72,968 ) Issuance of common stock under employee stock option plans 1,719 — — 1,719 Net cash used by financing activities (133,980 ) (74,950 ) 110,000 (98,930 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 2,108 (74 ) — 2,034 Net increase in cash, cash equivalents and restricted cash $ 64,823 $ 8,224 $ — $ 73,047 Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash—beginning of period $ 338,186 $ 408,024 $ — $ 746,210 Net increase in cash, cash equivalents and restricted cash 64,823 8,224 — 73,047 Cash, cash equivalents and restricted cash—end of period $ 403,009 $ 416,248 $ — $ 819,257 Three months ended March 26, 2017 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from operating activities: Net income $ 260,445 $ 31,907 $ (105,983 ) $ 186,369 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 53,241 1,659 — 54,900 Amortization of deferred loan origination costs — 20,078 — 20,078 Amortization of financing origination fees 163 1,913 — 2,076 Provision for long-term employee benefits 7,475 — — 7,475 Employee benefit plan contributions and payments (29,957 ) — — (29,957 ) Stock compensation expense 6,317 675 — 6,992 Net change in wholesale finance receivables related to sales — — (317,087 ) (317,087 ) Provision for credit losses — 43,589 — 43,589 Deferred income taxes 6,728 (2,230 ) (509 ) 3,989 Other, net (6,728 ) 1,411 (17 ) (5,334 ) Changes in current assets and liabilities: Accounts receivable, net (278,803 ) — 239,573 (39,230 ) Finance receivables - accrued interest and other — 5,142 — 5,142 Inventories 23,476 — — 23,476 Accounts payable and accrued liabilities 154,372 263,011 (234,455 ) 182,928 Derivative instruments 3,120 — — 3,120 Other 5,537 5,925 (49 ) 11,413 Total adjustments (55,059 ) 341,173 (312,544 ) (26,430 ) Net cash provided by operating activities 205,386 373,080 (418,527 ) 159,939 Cash flows from investing activities: Capital expenditures (21,686 ) (2,281 ) — (23,967 ) Origination of finance receivables — (1,932,599 ) 1,087,907 (844,692 ) Collections on finance receivables — 1,556,534 (775,380 ) 781,154 Other 52 — — 52 Net cash used by investing activities (21,634 ) (378,346 ) 312,527 (87,453 ) Cash flows from financing activities: Proceeds from issuance of medium-term notes — 497,406 — 497,406 Repayments of medium-term notes — (400,000 ) — (400,000 ) Repayments of securitization debt — (111,359 ) — (111,359 ) Borrowings of asset-backed commercial paper — 305,209 — 305,209 Repayments of asset-backed commercial paper — (29,383 ) — (29,383 ) Net decrease in credit facilities and unsecured commercial paper — (101,702 ) — (101,702 ) Dividends paid (64,611 ) (106,000 ) 106,000 (64,611 ) Purchase of common stock for treasury (79,753 ) — — (79,753 ) Issuance of common stock under employee stock option plans 7,336 — — 7,336 Net cash (used) provided by financing activities (137,028 ) 54,171 106,000 23,143 Effect of exchange rate changes on cash, cash equivalents and restricted cash 7,175 44 — 7,219 Net increase in cash, cash equivalents and restricted cash $ 53,899 $ 48,949 $ — $ 102,848 Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash—beginning of period $ 425,540 $ 401,591 $ — $ 827,131 Net increase in cash, cash equivalents and restricted cash 53,899 48,949 — 102,848 Cash, cash equivalents and restricted cash—end of period $ 479,439 $ 450,540 $ — $ 929,979 |
Basis of Presentation and Use25
Basis of Presentation and Use of Estimates (Policies) | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates. |
Accounting Standards Recently Adopted and Not Yet Adopted | Accounting Standards Recently Adopted In May 2014, the FASB issued Accounting Standards Update (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. The Company adopted ASU 2014-09 on January 1, 2018. The Company applied the standard to all contracts using the modified retrospective method. As such, the Company recognized the cumulative effect of the adoption as an adjustment to the opening balance of retained earnings. The comparative information has not been restated. The majority of the Company’s Motorcycles and related products revenue will continue to be recognized when products are shipped to customers. For a limited number of vehicle sales where revenue was previously deferred due to a guaranteed resale value the Company will now recognize revenue when those vehicles are shipped in accordance with ASU 2014-09. The Company recorded a net increase to the opening balance of retained earnings of $6.0 million , net of income taxes, as of January 1, 2018 as a result of adopting ASU 2014-09. The Company also adjusted other assets and accrued liabilities associated with these vehicle sales in connection with its adoption of ASU 2014-09. The majority of the Financial Services segment’s revenues relate to loan and servicing activities which are outside the scope of this guidance. Financial Services revenues that fall under the scope of ASU 2014-09 continue to be recognized at the point of sale, or over the estimated life of the contract, as appropriate. The following tables illustrate the impact of adoption of ASU 2014-09 on the consolidated statement of income for the three months ended April 1, 2018 and the consolidated balance sheet as of April 1, 2018 (in thousands): Consolidated Statement of Income As Reported Without Adoption of ASC 606 Effect of Change Revenue: Motorcycles and Related Products $ 1,363,947 $ 1,367,984 $ (4,037 ) Costs and expenses: Motorcycles and Related Products cost of goods sold $ 890,174 $ 890,238 $ (64 ) Operating income $ 236,417 $ 240,390 $ (3,973 ) Income before provision for income taxes $ 230,150 $ 234,123 $ (3,973 ) Provision for income taxes $ 55,387 $ 56,350 $ (963 ) Net income $ 174,763 $ 177,773 $ (3,010 ) Consolidated Balance Sheet As Reported Without Adoption of ASC 606 Effect of Change ASSETS Other current assets $ 150,472 $ 166,864 $ (16,392 ) Deferred income taxes $ 77,624 $ 79,472 $ (1,848 ) LIABILITIES AND SHAREHOLDERS' EQUITY Accrued liabilities $ 566,408 $ 587,662 $ (21,254 ) Retained earnings $ 1,725,626 $ 1,722,612 $ 3,014 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 adopted ASU 2017-07 retrospectively on January 1, 2018. As a result, the non-service cost components of net periodic benefit cost have been presented in Other income (expense), net and the prior period has been recast to reflect the new presentation. The Company elected the practical expedient allowing the use of previously disclosed benefit components as the basis for the retrospective application. Net periodic benefit cost (credit) previously recorded in Motorcycles and Related Products cost of goods sold and Selling, administrative and engineering expense of $2.7 million and $(0.4) million , respectively, for the three months ended March 26, 2017 has been reclassified to Other income (expense), net. 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 adopted ASU 2016-18 on January 1, 2018 on a retrospective basis. As a result, the change in restricted cash has been excluded from financing activities and included in the change in cash, cash equivalents and restricted cash and the prior period has been recast to reflect the new presentation. 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 ASU was subsequently amended by ASU No. 2018-03 and ASU No. 2018-04. The Company adopted ASU 2016-01 on January 1, 2018 on a prospective basis. The adoption of ASU 2016-01 did not have a material impact on its financial statements. 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 items 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 Company adopted ASU 2016-15 on January 1, 2018 on a retrospective basis. The adoption of ASU 2016-15 did not 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. The Company adopted ASU 2016-16 on January 1, 2018 using a modified retrospective approach. The adoption of ASU 2016-16 did not have a material impact on its financial statements. Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) (ASU 2016-02). ASU 2016-02 amends the existing lease accounting model by requiring a lessee to recognize the rights and obligations resulting from certain leases as assets and liabilities on the balance sheet. ASU 2016-02 also requires a company to disclose key information about their leasing arrangements. The Company 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. The Company anticipates the adoption of ASU 2016-02 will result in an increase in assets and liabilities recognized in the balance sheet related to its lease arrangements. In July 2016, the FASB issued ASU No. 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 changes how to recognize expected credit losses on financial assets. The standard requires a more timely recognition of credit losses on loans and other financial assets and also provides additional transparency about credit risk. The current credit loss standard generally requires that a loss actually be incurred before it is recognized, while the new standard will require recognition of full lifetime expected losses upon initial recognition of the financial instrument. The Company is required to adopt ASU 2016-13 for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019 on a modified retrospective basis. Early adoption is permitted for fiscal years beginning after December 15, 2018. An entity should apply the standard by recording a cumulative effect adjustment to retained earnings upon adoption. Adoption of this standard will impact how the Company recognizes credit losses on its financial instruments. The Company is currently evaluating the impact of adoption of ASU 2016-13 but anticipates the adoption of ASU 2016-13 will result in an increase in the annual provision for credit losses and the related allowance for credit losses. In January 2017, the FASB issued ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the requirement to calculate the implied fair value of goodwill. Rather, the goodwill impairment is calculated by comparing the fair value of a reporting unit to its carrying value, and an impairment loss is recognized for the amount by which the carrying amount exceeds the fair value, limited to the total goodwill allocated to the reporting unit. All reporting units apply the same impairment test under the new standard. The Company is required to adopt ASU 2017-04 for its annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In August 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 impact of adopting ASU 2018-02. |
New Accounting Standards New Ac
New Accounting Standards New Accounting Standards (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following tables illustrate the impact of adoption of ASU 2014-09 on the consolidated statement of income for the three months ended April 1, 2018 and the consolidated balance sheet as of April 1, 2018 (in thousands): Consolidated Statement of Income As Reported Without Adoption of ASC 606 Effect of Change Revenue: Motorcycles and Related Products $ 1,363,947 $ 1,367,984 $ (4,037 ) Costs and expenses: Motorcycles and Related Products cost of goods sold $ 890,174 $ 890,238 $ (64 ) Operating income $ 236,417 $ 240,390 $ (3,973 ) Income before provision for income taxes $ 230,150 $ 234,123 $ (3,973 ) Provision for income taxes $ 55,387 $ 56,350 $ (963 ) Net income $ 174,763 $ 177,773 $ (3,010 ) Consolidated Balance Sheet As Reported Without Adoption of ASC 606 Effect of Change ASSETS Other current assets $ 150,472 $ 166,864 $ (16,392 ) Deferred income taxes $ 77,624 $ 79,472 $ (1,848 ) LIABILITIES AND SHAREHOLDERS' EQUITY Accrued liabilities $ 566,408 $ 587,662 $ (21,254 ) Retained earnings $ 1,725,626 $ 1,722,612 $ 3,014 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table disaggregates revenue by major source for the three months ended April 1, 2018 (in thousands): Motorcycles and Related Products: Motorcycles $ 1,121,673 Parts & Accessories 169,075 General Merchandise 56,601 Licensing 8,358 Other 8,240 Revenue from Motorcycles and Related Products 1,363,947 Financial Services: Interest income 154,041 Securitization and servicing fee income 352 Other income 23,781 Revenue from Financial Services 178,174 Total revenue $ 1,542,121 |
Restructuring Expenses (Tables)
Restructuring Expenses (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | Changes in the accrued restructuring liability (in thousands) were as follows: Three months ended April 1, 2018 Employee Termination Benefits Accelerated Depreciation Other Total Balance, beginning of period $ — $ — $ — $ — Restructuring expense (40,791 ) (5,613 ) (438 ) (46,842 ) Utilized - cash 2,300 — 374 2,674 Utilized - non cash — 5,613 — 5,613 Foreign currency changes 204 — 1 205 Balance, end of period $ (38,287 ) $ — $ (63 ) $ (38,350 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Share Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three months ended April 1, March 26, Numerator : Net income used in computing basic and diluted earnings per share $ 174,763 $ 186,369 Denominator : Denominator for basic earnings per share - weighted-average common shares 168,139 176,001 Effect of dilutive securities - employee stock compensation plan 1,035 1,069 Denominator for diluted earnings per share - adjusted weighted-average shares outstanding 169,174 177,070 Earnings per common share: Basic $ 1.04 $ 1.06 Diluted $ 1.03 $ 1.05 |
Additional Balance Sheet and 30
Additional Balance Sheet and Cash Flow Information (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Marketable Securities | The Company’s marketable securities consisted of the following (in thousands): April 1, December 31, March 26, Available-for-sale corporate bonds $ — $ — $ 5,004 Mutual funds 49,402 48,006 41,674 Total marketable securities $ 49,402 $ 48,006 $ 46,678 |
Inventories Net | Inventories consisted of the following (in thousands): April 1, December 31, March 26, Raw materials and work in process $ 177,652 $ 161,664 $ 153,195 Motorcycle finished goods 289,046 289,530 263,408 Parts and accessories and general merchandise 150,228 139,363 117,140 Inventory at lower of FIFO cost or net realizable value 616,926 590,557 533,743 Excess of FIFO over LIFO cost (52,355 ) (52,355 ) (48,267 ) Total inventories, net $ 564,571 $ 538,202 $ 485,476 |
Reconciliation of Net Cash Provided by Operating Activities | The reconciliation of net income to net cash provided by operating activities is as follows (in thousands): Three months ended April 1, March 26, Cash flows from operating activities: Net income $ 174,763 $ 186,369 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 62,473 54,900 Amortization of deferred loan origination costs 20,116 20,078 Amortization of financing origination fees 2,028 2,076 Provision for long-term employee benefits 9,747 7,475 Employee benefit plan contributions and payments (5,486 ) (29,957 ) Stock compensation expense 7,962 6,992 Net change in wholesale finance receivables related to sales (239,902 ) (317,087 ) Provision for credit losses 30,052 43,589 Deferred income taxes 3,188 3,989 Other, net (1,902 ) (5,334 ) Changes in current assets and liabilities: Accounts receivable, net (17,688 ) (39,230 ) Finance receivables - accrued interest and other 4,758 5,142 Inventories (21,542 ) 23,476 Accounts payable and accrued liabilities 148,923 182,928 Derivative instruments 702 3,120 Other 13,402 11,413 Total adjustments 16,831 (26,430 ) Net cash provided by operating activities $ 191,594 $ 159,939 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Receivables [Abstract] | |
Finance Receivables | Finance receivables, net, consisted of the following (in thousands): April 1, December 31, March 26, Retail $ 6,064,192 $ 6,140,600 $ 6,002,550 Wholesale 1,252,600 1,016,957 1,327,602 Total finance receivables 7,316,792 7,157,557 7,330,152 Allowance for credit losses (190,350 ) (192,471 ) (184,030 ) Finance receivables, net $ 7,126,442 $ 6,965,086 $ 7,146,122 |
Allowance for Credit Losses on Finance Receivables | The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in thousands): April 1, 2018 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ 184 $ 184 Collectively evaluated for impairment 182,150 8,016 190,166 Total allowance for credit losses $ 182,150 $ 8,200 $ 190,350 Finance receivables, ending balance: Individually evaluated for impairment $ — $ 220 $ 220 Collectively evaluated for impairment 6,064,192 1,252,380 7,316,572 Total finance receivables $ 6,064,192 $ 1,252,600 $ 7,316,792 December 31, 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 March 26, 2017 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 176,068 7,962 184,030 Total allowance for credit losses $ 176,068 $ 7,962 $ 184,030 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 6,002,550 1,327,602 7,330,152 Total finance receivables $ 6,002,550 $ 1,327,602 $ 7,330,152 Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands): Three months ended April 1, 2018 Retail Wholesale Total Balance, beginning of period $ 186,254 $ 6,217 $ 192,471 Provision for credit losses 28,069 1,983 30,052 Charge-offs (45,081 ) — (45,081 ) Recoveries 12,908 — 12,908 Balance, end of period $ 182,150 $ 8,200 $ 190,350 Three months ended March 26, 2017 Retail Wholesale Total Balance, beginning of period $ 166,810 $ 6,533 $ 173,343 Provision for credit losses 42,160 1,429 43,589 Charge-offs (45,924 ) — (45,924 ) Recoveries 13,022 — 13,022 Balance, end of period $ 176,068 $ 7,962 $ 184,030 |
Impaired Financing Receivables | Additional information related to the wholesale finance receivables that are individually deemed to be impaired under ASC Topic 310, “Receivables,” at April 1, 2018 includes (in thousands): Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Wholesale: No related allowance recorded $ — $ — $ — $ — $ — Related allowance recorded 251 220 184 251 — Total impaired wholesale finance receivables $ 251 $ 220 $ 184 $ 251 $ — |
Aging of Past Due Finance Receivables Including Non-Accrual Status Finance Receivables | An analysis of the aging of past due finance receivables was as follows (in thousands): April 1, 2018 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due Total Past Due Total Finance Receivables Retail $ 5,897,632 $ 105,366 $ 33,275 $ 27,919 $ 166,560 $ 6,064,192 Wholesale 1,247,175 549 4,705 171 5,425 1,252,600 Total $ 7,144,807 $ 105,915 $ 37,980 $ 28,090 $ 171,985 $ 7,316,792 December 31, 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 March 26, 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 $ 5,840,164 $ 100,471 $ 33,403 $ 28,512 $ 162,386 $ 6,002,550 Wholesale 1,325,575 1,129 273 625 2,027 1,327,602 Total $ 7,165,739 $ 101,600 $ 33,676 $ 29,137 $ 164,413 $ 7,330,152 |
Recorded Investment of Finance Receivables by Credit Quality Indicator | The recorded investment in retail finance receivables, by credit quality indicator, was as follows (in thousands): April 1, 2018 December 31, 2017 March 26, 2017 Prime $ 4,923,237 $ 4,966,193 $ 4,806,730 Sub-prime 1,140,955 1,174,407 1,195,820 Total $ 6,064,192 $ 6,140,600 $ 6,002,550 The recorded investment in wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands): April 1, 2018 December 31, 2017 March 26, 2017 Doubtful $ 1,582 $ 688 $ 1,133 Substandard 3,368 3,837 9,213 Special Mention 33,085 26,866 19,898 Medium Risk 10,512 9,917 14,648 Low Risk 1,204,053 975,649 1,282,710 Total $ 1,252,600 $ 1,016,957 $ 1,327,602 |
Derivative Instruments and He32
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instrument Fair Value | The following tables summarize the fair value of the Company’s derivative financial instruments (in thousands): April 1, 2018 December 31, 2017 March 26, 2017 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) Notional Value Asset Fair Value (a) Liability Fair Value (b) Foreign currency contracts (c) $ 720,869 $ 3,442 $ 22,807 $ 675,724 $ 1,388 $ 21,239 $ 534,652 $ 12,195 $ 1,015 Commodity contracts (c) 728 — 11 915 — 69 1,027 23 — Total $ 721,597 $ 3,442 $ 22,818 $ 676,639 $ 1,388 $ 21,308 $ 535,679 $ 12,218 $ 1,015 April 1, 2018 December 31, 2017 March 26, 2017 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) Notional Value Asset Fair Value (a) Liability Fair Value (b) Commodity contracts $ 4,577 $ 171 $ 32 $ 4,532 $ 381 $ — $ 5,046 $ 228 $ 37 Total $ 4,577 $ 171 $ 32 $ 4,532 $ 381 $ — $ 5,046 $ 228 $ 37 (a) Included in other current assets (b) Included in accrued liabilities (c) Derivative designated as a cash flow hedge |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following tables summarize the amount of gains and losses related to derivative financial instruments designated as cash flow hedges (in thousands): Amount of Gain/(Loss) Recognized in OCI, before tax Three months ended Cash Flow Hedges April 1, March 26, Foreign currency contracts $ (5,890 ) $ (11,797 ) Commodity contracts (16 ) (106 ) Total $ (5,906 ) $ (11,903 ) Amount of Gain/(Loss) Reclassified from AOCL into Income Three months ended Expected to be Reclassified Cash Flow Hedges April 1, March 26, Over the Next Twelve Months Foreign currency contracts (a) $ (6,709 ) $ 2,516 $ (15,783 ) Commodity contracts (a) (73 ) 48 1 Treasury rate locks (b) (126 ) (90 ) (506 ) Total $ (6,908 ) $ 2,474 $ (16,288 ) (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 related to derivative financial instruments not designated as hedging instruments (in thousands): Amount of Gain/(Loss) Recognized in Income on Derivative Three months ended Derivatives Not Designated As Hedges April 1, March 26, Commodity contracts (a) $ 6 $ 20 Total $ 6 $ 20 (a) Gain/(loss) recognized in income is included in cost of goods sold |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Debt with a contractual term of one year or less is generally classified as short-term debt and consisted of the following (in thousands): April 1, December 31, March 26, Unsecured commercial paper $ 1,036,976 $ 1,273,482 $ 953,357 Total short-term debt $ 1,036,976 $ 1,273,482 $ 953,357 |
Schedule of Long-term Debt Instruments | Debt with a contractual term greater than one year is generally classified as long-term debt and consisted of the following (in thousands): April 1, December 31, March 26, Secured debt (Note 11) Asset-backed Canadian commercial paper conduit facility $ 158,162 $ 174,779 $ 141,013 Asset-backed U.S. commercial paper conduit facilities 281,311 279,457 286,205 Asset-backed securitization debt 285,130 353,085 686,396 Less: unamortized discount and debt issuance costs (337 ) (461 ) (1,022 ) Total secured debt 724,266 806,860 1,112,592 Unsecured notes (at par value) 1.55% Medium-term notes due in 2017, issued November 2014 — — 400,000 6.80% Medium-term notes due in 2018, issued May 2008 877,488 877,488 877,488 2.25% Medium-term notes due in 2019, issued January 2016 600,000 600,000 600,000 Floating-rate Medium-term notes due in 2019, issued March 2017 (a) 150,000 150,000 150,000 2.40% Medium-term notes due in 2019, issued September 2014 600,000 600,000 600,000 2.15% Medium-term notes due in 2020, issued February 2015 600,000 600,000 600,000 2.40% Medium-term notes due in 2020, issued March 2017 350,000 350,000 350,000 2.85% Medium-term notes due in 2021, issued January 2016 600,000 600,000 600,000 2.55% Medium-term notes due in 2022, issued June 2017 400,000 400,000 — 3.35% Medium-term notes due in 2023, issued February 2018 350,000 — — 3.50% Senior unsecured notes due in 2025, issued July 2015 450,000 450,000 450,000 4.625% Senior unsecured notes due in 2045, issued July 2015 300,000 300,000 300,000 Less: unamortized discount and debt issuance costs (20,564 ) (19,821 ) (22,222 ) Gross long-term debt 5,981,190 5,714,527 6,017,858 Less: current portion of long-term debt, net of unamortized discount and debt issuance costs (1,872,679 ) (1,127,269 ) (697,061 ) Total long-term debt $ 4,108,511 $ 4,587,258 $ 5,320,797 |
Asset-Backed Financing (Tables)
Asset-Backed Financing (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Transfers and Servicing [Abstract] | |
Assets and Liabilities Related to the On-Balance Sheet Financing | The following tables show the assets and liabilities related to the on-balance sheet asset-backed financings included in the financial statements (in thousands): April 1, 2018 Finance receivables Allowance for credit losses Restricted cash Other assets Total assets Asset-backed debt On-balance sheet assets and liabilities Consolidated VIEs Asset-backed securitizations $ 367,584 $ (11,387 ) $ 38,207 $ 1,207 $ 395,611 $ 284,793 Asset-backed U.S. commercial paper conduit facilities 299,318 (9,297 ) 16,933 968 307,922 281,311 Unconsolidated VIEs Asset-backed Canadian commercial paper conduit facility 183,073 (3,085 ) 10,600 320 190,908 158,162 Total on-balance sheet assets and liabilities $ 849,975 $ (23,769 ) $ 65,740 $ 2,495 $ 894,441 $ 724,266 December 31, 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 March 26, 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 $ 772,152 $ (23,239 ) $ 63,473 $ 2,532 $ 814,918 $ 685,374 Asset-backed U.S. commercial paper conduit facilities 304,091 (9,178 ) 15,781 672 311,366 286,205 Unconsolidated VIEs Asset-backed Canadian commercial paper conduit facility 155,240 (3,048 ) 11,025 382 163,599 141,013 Total on-balance sheet assets and liabilities $ 1,231,483 $ (35,465 ) $ 90,279 $ 3,586 $ 1,289,883 $ 1,112,592 |
Transfers of US Retail Motorcycle Finance Receivable [Table Text Block] | The following table includes quarterly transfers of U.S. retail motorcycle finance receivables to the U.S. Conduit and the respective proceeds (in thousands): 2018 2017 Transfers Proceeds Transfers Proceeds First quarter $ 32,900 $ 29,300 $ 333,400 $ 300,000 |
Transfers of Canadian Retail Motorcycle Finance Receivable | The following table includes quarterly transfers of Canadian retail motorcycle finance receivables to the Canadian Conduit and the respective proceeds (in thousands): 2018 2017 Transfers Proceeds Transfers Proceeds First quarter $ 7,600 $ 6,200 $ 6,300 $ 5,500 |
Schedule of Servicing Activities | The unpaid principal balance of retail motorcycle finance receivables serviced by the Company was as follows (in thousands): April 1, December 31, March 26, On-balance sheet retail motorcycle finance receivables $ 5,923,564 $ 5,993,185 $ 5,867,143 Off-balance sheet retail motorcycle finance receivables 127,643 146,425 212,764 Total serviced retail motorcycle finance receivables $ 6,051,207 $ 6,139,610 $ 6,079,907 The unpaid principal balance of retail motorcycle finance receivables serviced by the Company 30 days or more delinquent was as follows (in thousands): Amount 30 days or more past due: April 1, December 31, March 26, On-balance sheet retail motorcycle finance receivables $ 166,560 $ 227,127 $ 162,386 Off-balance sheet retail motorcycle finance receivables 1,652 2,106 1,476 Total serviced retail motorcycle finance receivables $ 168,212 $ 229,233 $ 163,862 Credit losses, net of recoveries for the retail motorcycle finance receivables serviced by the Company were as follows (in thousands): Three months ended April 1, March 26, On-balance sheet retail motorcycle finance receivables $ 32,173 $ 32,902 Off-balance sheet retail motorcycle finance receivables 361 414 Total serviced retail motorcycle finance receivables $ 32,534 $ 33,316 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured At Fair Value On A Recurring Basis | The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands): April 1, 2018 Balance Quoted Prices in Significant Significant Assets: Cash equivalents $ 653,124 $ 326,324 $ 326,800 $ — Marketable securities 49,402 49,402 — — Derivatives 3,613 — 3,613 — Total $ 706,139 $ 375,726 $ 330,413 $ — Liabilities: Derivatives $ 22,850 $ — $ 22,850 $ — December 31, 2017 Balance Quoted Prices in Significant Significant 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 $ — March 26, 2017 Balance Quoted Prices in Significant Significant Assets: Cash equivalents $ 628,895 $ 370,084 $ 258,811 $ — Marketable securities 46,678 41,674 5,004 — Derivatives 12,446 — 12,446 — Total $ 688,019 $ 411,758 $ 276,261 $ — Liabilities: Derivatives $ 1,052 $ — $ 1,052 $ — |
Summary of The Fair Value and Carrying Value of The Company's Financial Instruments | The following table summarizes the fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost (in thousands): April 1, 2018 December 31, 2017 March 26, 2017 Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Assets: Finance receivables, net $ 7,195,908 $ 7,126,442 $ 7,021,549 $ 6,965,086 $ 7,225,210 $ 7,146,122 Liabilities: Unsecured commercial paper $ 1,036,976 $ 1,036,976 $ 1,273,482 $ 1,273,482 $ 953,357 $ 953,357 Asset-backed U.S. commercial paper conduit facilities $ 281,311 $ 281,311 $ 279,457 $ 279,457 $ 286,205 $ 286,205 Asset-backed Canadian commercial paper conduit facility $ 158,162 $ 158,162 $ 174,779 $ 174,779 $ 141,013 $ 141,013 Medium-term notes $ 4,486,399 $ 4,514,798 $ 4,189,092 $ 4,165,706 $ 4,234,664 $ 4,163,797 Senior unsecured notes $ 750,440 $ 742,126 $ 784,433 $ 741,961 $ 755,646 $ 741,469 Asset-backed securitization debt $ 283,591 $ 284,793 $ 351,767 $ 352,624 $ 685,953 $ 685,374 |
Product Warranty and Safety R36
Product Warranty and Safety Recall Campaigns (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Product Warranties Disclosures [Abstract] | |
Warranty and Safety Recall Liability | Changes in the Company’s warranty and recall liability were as follows (in thousands): Three months ended April 1, March 26, Balance, beginning of period $ 94,202 $ 79,482 Warranties issued during the period 14,606 16,752 Settlements made during the period (16,638 ) (19,333 ) Recalls and changes to pre-existing warranty liabilities 2,905 1,310 Balance, end of period $ 95,075 $ 78,211 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Costs | Components of net periodic benefit costs were as follows (in thousands): Three months ended April 1, March 26, Pension and SERPA Benefits Service cost $ 8,155 $ 7,896 Interest cost 20,590 21,269 Expected return on plan assets (36,891 ) (35,345 ) Amortization of unrecognized: Prior service (credit) cost (106 ) 254 Net loss 15,819 10,998 Curtailment loss 1,018 — Net periodic benefit cost $ 8,585 $ 5,072 Postretirement Healthcare Benefits Service cost $ 1,812 $ 1,875 Interest cost 2,897 3,412 Expected return on plan assets (3,541 ) (3,156 ) Amortization of unrecognized: Prior service credit (460 ) (543 ) Net loss 454 815 Net periodic benefit cost $ 1,162 $ 2,403 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following tables set forth the changes in accumulated other comprehensive loss (AOCL) (in thousands): Three months ended April 1, 2018 Foreign currency translation adjustments Marketable securities Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (21,852 ) $ — $ (17,254 ) $ (460,943 ) $ (500,049 ) Other comprehensive income (loss) before reclassifications 6,915 — (5,906 ) 96,374 97,383 Income tax benefit (expense) — — 1,387 (22,629 ) (21,242 ) Net other comprehensive income (loss) before reclassifications 6,915 — (4,519 ) 73,745 76,141 Reclassifications: Realized (gains) losses - foreign currency contracts (a) — — 6,709 — 6,709 Realized (gains) losses - commodity contracts (a) — — 73 — 73 Realized (gains) losses - treasury rate locks (b) — — 126 — 126 Prior service credits (c) — — — (566 ) (566 ) Actuarial losses (c) — — — 16,273 16,273 Total reclassifications before tax — — 6,908 15,707 22,615 Income tax expense — — (1,624 ) (3,687 ) (5,311 ) Net reclassifications — — 5,284 12,020 17,304 Other comprehensive income 6,915 — 765 85,765 93,445 Balance, end of period $ (14,937 ) $ — $ (16,489 ) $ (375,178 ) $ (406,604 ) Three months ended March 26, 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 15,633 (16 ) (11,903 ) — 3,714 Income tax (expense) benefit (76 ) 6 4,409 — 4,339 Net other comprehensive income (loss) before reclassifications 15,557 (10 ) (7,494 ) — 8,053 Reclassifications: Realized (gains) losses - foreign currency contracts (a) — — (2,516 ) — (2,516 ) Realized (gains) losses - commodity contracts (a) — — (48 ) — (48 ) Realized (gains) losses - treasury rate locks (b) — — 90 — 90 Prior service credits (c) — — — (289 ) (289 ) Actuarial losses (c) — — — 11,813 11,813 Total reclassifications before tax — — (2,474 ) 11,524 9,050 Income tax benefit (expense) — — 916 (4,268 ) (3,352 ) Net reclassifications — — (1,558 ) 7,256 5,698 Other comprehensive income (loss) 15,557 (10 ) (9,052 ) 7,256 13,751 Balance, end of period $ (52,575 ) $ (1,204 ) $ 3,472 $ (501,323 ) $ (551,630 ) (a) Amounts reclassified to net income are included in Motorcycles and Related Products cost of goods sold. (b) Amounts reclassified to net income are included in interest expense. (c) Amounts reclassified are included in the computation of net periodic benefit cost. See Note 14 for information related to pension and postretirement benefit plans. |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Selected segment information is set forth below (in thousands): Three months ended April 1, March 26, Motorcycles net revenue $ 1,363,947 $ 1,328,711 Gross profit 473,773 474,823 Selling, administrative and engineering expense 254,093 238,277 Restructuring expense 46,842 — Operating income from Motorcycles 172,838 236,546 Financial Services revenue 178,174 173,221 Financial Services expense 114,595 120,585 Operating income from Financial Services 63,579 52,636 Operating income $ 236,417 $ 289,182 |
Supplemental Consolidating Da40
Supplemental Consolidating Data (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations | Three months ended April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 1,366,246 $ — $ (2,299 ) $ 1,363,947 Financial Services — 178,460 (286 ) 178,174 Total revenue 1,366,246 178,460 (2,585 ) 1,542,121 Costs and expenses: Motorcycles and Related Products cost of goods sold 890,174 — — 890,174 Financial Services interest expense — 48,450 — 48,450 Financial Services provision for credit losses — 30,052 — 30,052 Selling, administrative and engineering expense 254,401 38,391 (2,606 ) 290,186 Restructuring expense 46,842 — — 46,842 Total costs and expenses 1,191,417 116,893 (2,606 ) 1,305,704 Operating income 174,829 61,567 21 236,417 Other income (expense), net 220 — — 220 Investment income 111,203 — (110,000 ) 1,203 Interest expense 7,690 — — 7,690 Income before provision for income taxes 278,562 61,567 (109,979 ) 230,150 Provision for income taxes 40,233 15,154 — 55,387 Net income $ 238,329 $ 46,413 $ (109,979 ) $ 174,763 Three months ended March 26, 2017 HDMC Entities HDFS Entities Eliminations Consolidated Revenue: Motorcycles and Related Products $ 1,330,618 $ — $ (1,907 ) $ 1,328,711 Financial Services — 173,557 (336 ) 173,221 Total revenue 1,330,618 173,557 (2,243 ) 1,501,932 Costs and expenses: Motorcycles and Related Products cost of goods sold 853,888 — — 853,888 Financial Services interest expense — 43,289 — 43,289 Financial Services provision for credit losses — 43,589 — 43,589 Selling, administrative and engineering expense 238,630 35,614 (2,260 ) 271,984 Total costs and expenses 1,092,518 122,492 (2,260 ) 1,212,750 Operating income 238,100 51,065 17 289,182 Other income (expense), net 2,296 — — 2,296 Investment income 106,879 — (106,000 ) 879 Interest expense 7,673 — — 7,673 Income before provision for income taxes 339,602 51,065 (105,983 ) 284,684 Provision for income taxes 79,157 19,158 — 98,315 Net income $ 260,445 $ 31,907 $ (105,983 ) $ 186,369 |
Balance Sheet | April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 403,009 $ 350,508 $ — $ 753,517 Accounts receivable, net 686,265 — (331,158 ) 355,107 Finance receivables, net — 2,341,918 — 2,341,918 Inventories 564,571 — — 564,571 Restricted cash — 54,569 — 54,569 Other current assets 108,613 44,724 (2,865 ) 150,472 Total current assets 1,762,458 2,791,719 (334,023 ) 4,220,154 Finance receivables, net — 4,784,524 — 4,784,524 Property, plant and equipment, net 887,522 47,123 — 934,645 Prepaid pension costs 122,230 — — 122,230 Goodwill 56,524 — — 56,524 Deferred income taxes 36,140 42,543 (1,059 ) 77,624 Other long-term assets 145,344 23,514 (86,938 ) 81,920 $ 3,010,218 $ 7,689,423 $ (422,020 ) $ 10,277,621 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 297,162 $ 353,036 $ (331,158 ) $ 319,040 Accrued liabilities 462,279 106,149 (2,020 ) 566,408 Short-term debt — 1,036,976 — 1,036,976 Current portion of long-term debt, net — 1,872,679 — 1,872,679 Total current liabilities 759,441 3,368,840 (333,178 ) 3,795,103 Long-term debt, net 742,126 3,366,385 — 4,108,511 Pension liability 54,921 — — 54,921 Postretirement healthcare liability 113,031 — — 113,031 Other long-term liabilities 171,389 35,899 2,818 210,106 Commitments and contingencies (Note 15) Shareholders’ equity 1,169,310 918,299 (91,660 ) 1,995,949 $ 3,010,218 $ 7,689,423 $ (422,020 ) $ 10,277,621 December 31, 2017 HDMC Entities HDFS Entities 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 15) Shareholders’ equity 951,549 983,519 (90,791 ) 1,844,277 $ 2,696,360 $ 7,523,069 $ (246,757 ) $ 9,972,672 March 26, 2017 HDMC Entities HDFS Entities Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 479,439 $ 360,261 $ — $ 839,700 Marketable securities 5,004 — — 5,004 Accounts receivable, net 740,231 — (404,653 ) 335,578 Finance receivables, net — 2,354,095 — 2,354,095 Inventories 485,476 — — 485,476 Restricted cash — 75,705 — 75,705 Other current assets 102,298 40,064 — 142,362 Total current assets 1,812,448 2,830,125 (404,653 ) 4,237,920 Finance receivables, net — 4,792,027 — 4,792,027 Property, plant and equipment, net 913,462 39,582 — 953,044 Goodwill 53,967 — — 53,967 Deferred income taxes 98,291 68,306 (1,401 ) 165,196 Other long-term assets 137,712 25,790 (83,801 ) 79,701 $ 3,015,880 $ 7,755,830 $ (489,855 ) $ 10,281,855 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 333,227 $ 430,110 $ (404,653 ) $ 358,684 Accrued liabilities 442,181 105,060 396 547,637 Short-term debt — 953,357 — 953,357 Current portion of long-term debt, net — 697,061 — 697,061 Total current liabilities 775,408 2,185,588 (404,257 ) 2,556,739 Long-term debt, net 741,469 4,579,328 — 5,320,797 Pension liability 52,559 — — 52,559 Postretirement healthcare liability 171,143 — — 171,143 Other long-term liabilities 152,974 31,506 2,728 187,208 Commitments and contingencies (Note 15) Shareholders’ equity 1,122,327 959,408 (88,326 ) 1,993,409 $ 3,015,880 $ 7,755,830 $ (489,855 ) $ 10,281,855 |
Cash Flows | Three months ended April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from operating activities: Net income $ 238,329 $ 46,413 $ (109,979 ) $ 174,763 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 61,405 1,068 — 62,473 Amortization of deferred loan origination costs — 20,116 — 20,116 Amortization of financing origination fees 165 1,863 — 2,028 Provision for long-term employee benefits 9,747 — — 9,747 Employee benefit plan contributions and payments (5,486 ) — — (5,486 ) Stock compensation expense 7,072 890 — 7,962 Net change in wholesale finance receivables related to sales — — (239,902 ) (239,902 ) Provision for credit losses — 30,052 — 30,052 Deferred income taxes 2,469 979 (260 ) 3,188 Other, net (2,081 ) 200 (21 ) (1,902 ) Changes in current assets and liabilities: Accounts receivable, net (195,123 ) — 177,435 (17,688 ) Finance receivables - accrued interest and other — 4,758 — 4,758 Inventories (21,542 ) — — (21,542 ) Accounts payable and accrued liabilities 121,833 201,056 (173,966 ) 148,923 Derivative instruments 666 36 — 702 Other 9,935 6,269 (2,802 ) 13,402 Total adjustments (10,940 ) 267,287 (239,516 ) 16,831 Net cash provided by operating activities 227,389 313,700 (349,495 ) 191,594 Three months ended April 1, 2018 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from investing activities: Capital expenditures (25,746 ) (2,690 ) — (28,436 ) Origination of finance receivables — (1,786,309 ) 988,242 (798,067 ) Collections on finance receivables — 1,558,547 (748,747 ) 809,800 Other (4,948 ) — — (4,948 ) Net cash used by investing activities (30,694 ) (230,452 ) 239,495 (21,651 ) Cash flows from financing activities: Proceeds from issuance of medium-term notes — 347,553 — 347,553 Repayments of securitization debt — (67,955 ) — (67,955 ) Borrowings of asset-backed commercial paper — 35,504 — 35,504 Repayments of asset-backed commercial paper — (45,907 ) — (45,907 ) Net decrease in credit facilities and unsecured commercial paper — (234,145 ) — (234,145 ) Dividends paid (62,731 ) (110,000 ) 110,000 (62,731 ) Purchase of common stock for treasury (72,968 ) — — (72,968 ) Issuance of common stock under employee stock option plans 1,719 — — 1,719 Net cash used by financing activities (133,980 ) (74,950 ) 110,000 (98,930 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 2,108 (74 ) — 2,034 Net increase in cash, cash equivalents and restricted cash $ 64,823 $ 8,224 $ — $ 73,047 Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash—beginning of period $ 338,186 $ 408,024 $ — $ 746,210 Net increase in cash, cash equivalents and restricted cash 64,823 8,224 — 73,047 Cash, cash equivalents and restricted cash—end of period $ 403,009 $ 416,248 $ — $ 819,257 Three months ended March 26, 2017 HDMC Entities HDFS Entities Eliminations Consolidated Cash flows from operating activities: Net income $ 260,445 $ 31,907 $ (105,983 ) $ 186,369 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of intangibles 53,241 1,659 — 54,900 Amortization of deferred loan origination costs — 20,078 — 20,078 Amortization of financing origination fees 163 1,913 — 2,076 Provision for long-term employee benefits 7,475 — — 7,475 Employee benefit plan contributions and payments (29,957 ) — — (29,957 ) Stock compensation expense 6,317 675 — 6,992 Net change in wholesale finance receivables related to sales — — (317,087 ) (317,087 ) Provision for credit losses — 43,589 — 43,589 Deferred income taxes 6,728 (2,230 ) (509 ) 3,989 Other, net (6,728 ) 1,411 (17 ) (5,334 ) Changes in current assets and liabilities: Accounts receivable, net (278,803 ) — 239,573 (39,230 ) Finance receivables - accrued interest and other — 5,142 — 5,142 Inventories 23,476 — — 23,476 Accounts payable and accrued liabilities 154,372 263,011 (234,455 ) 182,928 Derivative instruments 3,120 — — 3,120 Other 5,537 5,925 (49 ) 11,413 Total adjustments (55,059 ) 341,173 (312,544 ) (26,430 ) Net cash provided by operating activities 205,386 373,080 (418,527 ) 159,939 Cash flows from investing activities: Capital expenditures (21,686 ) (2,281 ) — (23,967 ) Origination of finance receivables — (1,932,599 ) 1,087,907 (844,692 ) Collections on finance receivables — 1,556,534 (775,380 ) 781,154 Other 52 — — 52 Net cash used by investing activities (21,634 ) (378,346 ) 312,527 (87,453 ) Cash flows from financing activities: Proceeds from issuance of medium-term notes — 497,406 — 497,406 Repayments of medium-term notes — (400,000 ) — (400,000 ) Repayments of securitization debt — (111,359 ) — (111,359 ) Borrowings of asset-backed commercial paper — 305,209 — 305,209 Repayments of asset-backed commercial paper — (29,383 ) — (29,383 ) Net decrease in credit facilities and unsecured commercial paper — (101,702 ) — (101,702 ) Dividends paid (64,611 ) (106,000 ) 106,000 (64,611 ) Purchase of common stock for treasury (79,753 ) — — (79,753 ) Issuance of common stock under employee stock option plans 7,336 — — 7,336 Net cash (used) provided by financing activities (137,028 ) 54,171 106,000 23,143 Effect of exchange rate changes on cash, cash equivalents and restricted cash 7,175 44 — 7,219 Net increase in cash, cash equivalents and restricted cash $ 53,899 $ 48,949 $ — $ 102,848 Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash—beginning of period $ 425,540 $ 401,591 $ — $ 827,131 Net increase in cash, cash equivalents and restricted cash 53,899 48,949 — 102,848 Cash, cash equivalents and restricted cash—end of period $ 479,439 $ 450,540 $ — $ 929,979 |
Basis of Presentation and Use41
Basis of Presentation and Use of Estimates (Narrative) (Detail) | 3 Months Ended |
Apr. 01, 2018segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
New Accounting Standards New 42
New Accounting Standards New Accounting Standards (Impact of adoption of ASU 2014-09) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Apr. 01, 2018 | Mar. 26, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Motorcycles and Related Products | $ 1,363,947 | $ 1,328,711 | ||
Motorcycles and Related Products cost of goods sold | 890,174 | 853,888 | ||
Operating income | 236,417 | 289,182 | ||
Income before provision for income taxes | 230,150 | 284,684 | ||
Provision for income taxes | 55,387 | 98,315 | ||
Net income | 174,763 | 186,369 | ||
Other current assets | 150,472 | 142,362 | $ 175,853 | |
Deferred income taxes | 77,624 | 165,196 | 109,073 | |
Accrued liabilities | 566,408 | 547,637 | 529,822 | |
Retained earnings | 1,725,626 | $ 1,459,431 | $ 1,607,570 | |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Motorcycles and Related Products | 1,367,984 | |||
Motorcycles and Related Products cost of goods sold | 890,238 | |||
Operating income | 240,390 | |||
Income before provision for income taxes | 234,123 | |||
Provision for income taxes | 56,350 | |||
Net income | 177,773 | |||
Other current assets | 166,864 | |||
Deferred income taxes | 79,472 | |||
Accrued liabilities | 587,662 | |||
Retained earnings | 1,722,612 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Motorcycles and Related Products | (4,037) | |||
Motorcycles and Related Products cost of goods sold | (64) | |||
Operating income | (3,973) | |||
Income before provision for income taxes | (3,973) | |||
Provision for income taxes | (963) | |||
Net income | (3,010) | |||
Other current assets | (16,392) | |||
Deferred income taxes | (1,848) | |||
Accrued liabilities | (21,254) | |||
Retained earnings | $ 3,014 | $ 6,000 |
New Accounting Standards New 43
New Accounting Standards New Accounting Standards (Impact of adoption of ASU 2017-07) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Motorcycles and Related Products cost of goods sold | $ 890,174 | $ 853,888 |
Selling, administrative and engineering expense | $ 290,186 | 271,984 |
Adjustments for New Accounting Pronouncement [Member] | Restatement Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Motorcycles and Related Products cost of goods sold | 2,700 | |
Selling, administrative and engineering expense | $ (400) |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Motorcycles and Related Products | $ 1,363,947 | $ 1,328,711 |
Financial Services | 178,174 | 173,221 |
Revenues | 1,542,121 | 1,501,932 |
Motorcycles and Related Products | ||
Disaggregation of Revenue [Line Items] | ||
Motorcycles and Related Products | 1,363,947 | |
Motorcycles and Related Products | Motorcycles | ||
Disaggregation of Revenue [Line Items] | ||
Motorcycles and Related Products | 1,121,673 | |
Motorcycles and Related Products | Parts & Accessories | ||
Disaggregation of Revenue [Line Items] | ||
Motorcycles and Related Products | 169,075 | |
Motorcycles and Related Products | General Merchandise | ||
Disaggregation of Revenue [Line Items] | ||
Motorcycles and Related Products | 56,601 | |
Motorcycles and Related Products | Licensing | ||
Disaggregation of Revenue [Line Items] | ||
Motorcycles and Related Products | 8,358 | |
Motorcycles and Related Products | Other | ||
Disaggregation of Revenue [Line Items] | ||
Motorcycles and Related Products | 8,240 | |
Financial Services | ||
Disaggregation of Revenue [Line Items] | ||
Financial Services | 178,174 | |
Financial Services | Financial Services Interest income | ||
Disaggregation of Revenue [Line Items] | ||
Financial Services | 154,041 | |
Financial Services | Securitization and servicing fee income | ||
Disaggregation of Revenue [Line Items] | ||
Financial Services | 352 | |
Financial Services | Financial Services Other income | ||
Disaggregation of Revenue [Line Items] | ||
Financial Services | 23,781 | |
Operating Segments | Motorcycles and Related Products | ||
Disaggregation of Revenue [Line Items] | ||
Motorcycles and Related Products | 1,363,947 | 1,328,711 |
Operating Segments | Financial Services | ||
Disaggregation of Revenue [Line Items] | ||
Financial Services | $ 178,174 | $ 173,221 |
Revenue (Performance Obligation
Revenue (Performance Obligations) (Details) | 3 Months Ended |
Apr. 01, 2018 | |
Motorcycles and Related Products | Licensing | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Sale Payment Terms | 30 days |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 years |
Financial Services | Financial Services Other income | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 years |
Minimum [Member] | Motorcycles and Related Products | Parts & Accessories | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Sale Payment Terms | 30 days |
Minimum [Member] | Motorcycles and Related Products | Motorcycles | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Sale Payment Terms | 30 days |
Minimum [Member] | Motorcycles and Related Products | General Merchandise | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Sale Payment Terms | 30 days |
Maximum [Member] | Motorcycles and Related Products | Parts & Accessories | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Sale Payment Terms | 120 days |
Maximum [Member] | Motorcycles and Related Products | Motorcycles | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Sale Payment Terms | 120 days |
Maximum [Member] | Motorcycles and Related Products | General Merchandise | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Sale Payment Terms | 120 days |
Revenue (Contract Liabilities)
Revenue (Contract Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Jan. 01, 2018 | |
Contract with Customer, Liability [Abstract] | ||
Contract with Customer, Liability | $ 23.4 | |
Contract with Customer, Liability, Revenue Recognized | $ 4 | |
Licensing | Motorcycles and Related Products | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 years | |
Financial Services Other income | Financial Services | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation | $ 12.7 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation | $ 7.2 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | ||
Revenue, Remaining Performance Obligation | $ 27.6 |
Restructuring Expenses Restruct
Restructuring Expenses Restructuring Expenses (Narrative) (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2018USD ($)EmployeesRate | |
2018 Kansas City Restructuring Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Number of Positions Eliminated | Employees | 800 |
Restructuring and Related Cost, Expected Number of Positions Added | Employees | 450 |
2018 Adelaide Restructuring Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Number of Positions Eliminated | Employees | 90 |
Motorcycles and Related Products | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost, Percentage Paid In Cash | Rate | 70.00% |
Motorcycles and Related Products | Temporary Inefficiencies [Member] | Cost of Sales | |
Restructuring Cost and Reserve [Line Items] | |
Cost of Goods Sold | $ 0.7 |
Minimum [Member] | Motorcycles and Related Products | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost | 170 |
Minimum [Member] | Motorcycles and Related Products | Restructuring Expense [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost | 135 |
Minimum [Member] | Motorcycles and Related Products | Temporary Inefficiencies [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost | 35 |
Minimum [Member] | Motorcycles and Related Products | Employee Severance [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost | 50 |
Minimum [Member] | Motorcycles and Related Products | Accelerated Depreciation [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost | 45 |
Minimum [Member] | Motorcycles and Related Products | Project Implementation Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost | 40 |
Maximum [Member] | Motorcycles and Related Products | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost | 200 |
Maximum [Member] | Motorcycles and Related Products | Restructuring Expense [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost | 155 |
Maximum [Member] | Motorcycles and Related Products | Temporary Inefficiencies [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost | 45 |
Maximum [Member] | Motorcycles and Related Products | Employee Severance [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost | 60 |
Maximum [Member] | Motorcycles and Related Products | Accelerated Depreciation [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost | 50 |
Maximum [Member] | Motorcycles and Related Products | Project Implementation Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Expected Cost | $ 45 |
Restructuring Expenses Restru48
Restructuring Expenses Restructuring Expenses (Restructuring Plan Reserve Recorded in Accrued Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring expense | $ (46,842) | $ 0 |
Motorcycles and Related Products | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 0 | |
Restructuring expense | (46,842) | |
Utilized - cash | 2,674 | |
Utilized - non cash | 5,613 | |
Foreign currency changes | 205 | |
Balance, end of period | (38,350) | |
Motorcycles and Related Products | Employee Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 0 | |
Restructuring expense | (40,791) | |
Utilized - cash | 2,300 | |
Utilized - non cash | 0 | |
Foreign currency changes | 204 | |
Balance, end of period | (38,287) | |
Motorcycles and Related Products | Project Implementation Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 0 | |
Restructuring expense | (438) | |
Utilized - cash | 374 | |
Utilized - non cash | 0 | |
Foreign currency changes | 1 | |
Balance, end of period | (63) | |
Motorcycles and Related Products | Accelerated Depreciation [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 0 | |
Restructuring expense | (5,613) | |
Utilized - cash | 0 | |
Utilized - non cash | 5,613 | |
Foreign currency changes | 0 | |
Balance, end of period | $ 0 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax rate | 24.10% | 34.50% | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 53.1 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares shares in Millions | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares considered anti-dilutive and excluded from computation | 1 | 0.8 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of Earnings Per Share Basic And Diluted) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Numerator: | ||
Net income used in computing basic and diluted earnings per share | $ 174,763 | $ 186,369 |
Denominator: | ||
Denominator for basic earnings per share - weighted-average common shares (in shares) | 168,139 | 176,001 |
Effect of dilutive securities - employee stock compensation plan (in shares) | 1,035 | 1,069 |
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding (in shares) | 169,174 | 177,070 |
Basic (in dollars per share) | $ 1.04 | $ 1.06 |
Diluted (in dollars per share) | $ 1.03 | $ 1.05 |
Additional Balance Sheet and 52
Additional Balance Sheet and Cash Flow Information (Marketable Securities) (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Available-for-sale corporate bonds | $ 0 | $ 0 | $ 5,004 |
Mutual funds | 49,402 | 48,006 | 41,674 |
Marketable Securities | $ 49,402 | $ 48,006 | $ 46,678 |
Additional Balance Sheet and 53
Additional Balance Sheet and Cash Flow Information (Inventories, Net) (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 |
Inventory [Line Items] | |||
Raw materials and work in process | $ 177,652 | $ 161,664 | $ 153,195 |
Inventory at lower of FIFO cost or net realizable value | 616,926 | 590,557 | 533,743 |
Excess of FIFO over LIFO cost | (52,355) | (52,355) | (48,267) |
Inventories, net | 564,571 | 538,202 | 485,476 |
Motorcycles | |||
Inventory [Line Items] | |||
Finished goods | 289,046 | 289,530 | 263,408 |
Parts and Accessories and General Merchandise | |||
Inventory [Line Items] | |||
Finished goods | $ 150,228 | $ 139,363 | $ 117,140 |
Additional Balance Sheet and 54
Additional Balance Sheet and Cash Flow Information (Reconciliation Of Net Income To Net Cash Used By Operating Activities) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 174,763 | $ 186,369 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of intangibles | 62,473 | 54,900 |
Amortization of deferred loan origination costs | 20,116 | 20,078 |
Amortization of financing origination fees | 2,028 | 2,076 |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | 9,747 | 7,475 |
Employee benefit plan contributions and payments | (5,486) | (29,957) |
Stock compensation expense | 7,962 | 6,992 |
Net change in wholesale finance receivables related to sales | (239,902) | (317,087) |
Provision for credit losses | 30,052 | 43,589 |
Deferred income taxes | 3,188 | 3,989 |
Other, net | (1,902) | (5,334) |
Changes in current assets and liabilities: | ||
Accounts receivable, net | (17,688) | (39,230) |
Finance receivables - accrued interest and other | 4,758 | 5,142 |
Inventories | (21,542) | 23,476 |
Accounts payable and accrued liabilities | 148,923 | 182,928 |
Derivative instruments | 702 | 3,120 |
Other | 13,402 | 11,413 |
Total adjustments | 16,831 | (26,430) |
Net cash provided by operating activities | $ 191,594 | $ 159,939 |
Finance Receivables (Narrative)
Finance Receivables (Narrative) (Detail) - USD ($) | 3 Months Ended | ||
Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | $ 220,000 | $ 0 | $ 0 |
Wholesale | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | 220,000 | 0 | 0 |
Finance receivables, gross, 90 days or more past due and accruing interest | 200,000 | 100,000 | 600,000 |
Wholesale receivables on non-accrual status | 200,000 | 0 | 0 |
Retail | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | $ 0 | 0 | 0 |
Threshold period past due to be charged-off | 120 days | ||
Finance receivables, gross, 90 days or more past due and accruing interest | $ 27,900,000 | $ 40,000,000 | $ 28,500,000 |
Finance Receivables (Finance Re
Finance Receivables (Finance Receivables) (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, gross | $ 7,316,792 | $ 7,157,557 | $ 7,330,152 | |
Allowance for credit losses | (190,350) | (192,471) | (184,030) | $ (173,343) |
Finance receivables, net | 7,126,442 | 6,965,086 | 7,146,122 | |
Retail | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, gross | 6,064,192 | 6,140,600 | 6,002,550 | |
Allowance for credit losses | (182,150) | (186,254) | (176,068) | (166,810) |
Wholesale | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, gross | 1,252,600 | 1,016,957 | 1,327,602 | |
Allowance for credit losses | $ (8,200) | $ (6,217) | $ (7,962) | $ (6,533) |
Finance Receivables (Changes In
Finance Receivables (Changes In Allowance For Credit Losses On Finance Receivables) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Apr. 01, 2018 | Mar. 26, 2017 | Dec. 31, 2017 | Jun. 26, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | $ 192,471 | $ 173,343 | ||
Provision for credit losses | 30,052 | 43,589 | ||
Charge-offs | (45,081) | (45,924) | ||
Recoveries | 12,908 | 13,022 | ||
Balance, end of period | 190,350 | 184,030 | ||
Current unpaid balance - off-balance sheet retail motorcycle finance receivables | 127,643 | 212,764 | $ 146,425 | |
Current unpaid balance - on-balance sheet retail motorcycle finance receivables | 5,923,564 | 5,867,143 | $ 5,993,185 | |
Variable Interest Entity, Not Primary Beneficiary | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Principal balance of finance receivable | $ 301,800 | |||
Retail | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 186,254 | 166,810 | ||
Provision for credit losses | 28,069 | 42,160 | ||
Charge-offs | (45,081) | (45,924) | ||
Recoveries | 12,908 | 13,022 | ||
Balance, end of period | 182,150 | 176,068 | ||
Wholesale | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 6,217 | 6,533 | ||
Provision for credit losses | 1,983 | 1,429 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Balance, end of period | $ 8,200 | $ 7,962 |
Finance Receivables (Allowance
Finance Receivables (Allowance For Credit Losses And Finance Receivables By Portfolio Individually And Collectively Evaluated For Impairment) (Detail) - USD ($) | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | $ 184,000 | $ 0 | $ 0 | |
Collectively evaluated for impairment | 190,166,000 | 192,471,000 | 184,030,000 | |
Total allowance for credit losses | 190,350,000 | 192,471,000 | 184,030,000 | $ 173,343,000 |
Individually evaluated for impairment | 220,000 | 0 | 0 | |
Collectively evaluated for impairment | 7,316,572,000 | 7,157,557,000 | 7,330,152,000 | |
Financing receivable, gross | 7,316,792,000 | 7,157,557,000 | 7,330,152,000 | |
Retail | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 182,150,000 | 186,254,000 | 176,068,000 | |
Total allowance for credit losses | 182,150,000 | 186,254,000 | 176,068,000 | 166,810,000 |
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 6,064,192,000 | 6,140,600,000 | 6,002,550,000 | |
Financing receivable, gross | 6,064,192,000 | 6,140,600,000 | 6,002,550,000 | |
Wholesale | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 184,000 | 0 | 0 | |
Collectively evaluated for impairment | 8,016,000 | 6,217,000 | 7,962,000 | |
Total allowance for credit losses | 8,200,000 | 6,217,000 | 7,962,000 | $ 6,533,000 |
Individually evaluated for impairment | 220,000 | 0 | 0 | |
Collectively evaluated for impairment | 1,252,380,000 | 1,016,957,000 | 1,327,602,000 | |
Financing receivable, gross | $ 1,252,600,000 | $ 1,016,957,000 | $ 1,327,602,000 |
Finance Receivables Finance Rec
Finance Receivables Finance Receivables (Wholesale Finance Receivables Individually Deemed Impaired) (Details) - Wholesale $ in Thousands | 3 Months Ended |
Apr. 01, 2018USD ($) | |
Financing Receivable, Impaired [Line Items] | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 0 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 0 |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 251 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 220 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 251 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 0 |
Impaired Financing Receivable, Recorded Investment | 251 |
Impaired Financing Receivable, Unpaid Principal Balance | 220 |
Impaired Financing Receivable, Related Allowance | 184 |
Impaired Financing Receivable, Average Recorded Investment | 251 |
Impaired Financing Receivable, Interest Income, Accrual Method | $ 0 |
Finance Receivables (Aging Of P
Finance Receivables (Aging Of Past Due Finance Receivables Including Non Accrual Status Finance Receivables) (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 171,985 | $ 228,084 | $ 164,413 |
Total finance receivables | 7,316,792 | 7,157,557 | 7,330,152 |
Current | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing receivable, current | 7,144,807 | 6,929,473 | 7,165,739 |
31-60 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 105,915 | 140,224 | 101,600 |
61-90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 37,980 | 47,784 | 33,676 |
Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 28,090 | 40,076 | 29,137 |
Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 166,560 | 227,127 | 162,386 |
Total finance receivables | 6,064,192 | 6,140,600 | 6,002,550 |
Retail | Current | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing receivable, current | 5,897,632 | 5,913,473 | 5,840,164 |
Retail | 31-60 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 105,366 | 139,629 | 100,471 |
Retail | 61-90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 33,275 | 47,539 | 33,403 |
Retail | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 27,919 | 39,959 | 28,512 |
Wholesale | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5,425 | 957 | 2,027 |
Total finance receivables | 1,252,600 | 1,016,957 | 1,327,602 |
Wholesale | Current | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing receivable, current | 1,247,175 | 1,016,000 | 1,325,575 |
Wholesale | 31-60 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 549 | 595 | 1,129 |
Wholesale | 61-90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,705 | 245 | 273 |
Wholesale | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 171 | $ 117 | $ 625 |
Finance Receivables (Recorded I
Finance Receivables (Recorded Investment Of Retail and Wholesale Finance Receivables By Credit Quality Indicator) (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Financing receivable, gross | $ 7,316,792 | $ 7,157,557 | $ 7,330,152 |
Retail | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing receivable, gross | 6,064,192 | 6,140,600 | 6,002,550 |
Retail | Prime | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing receivable, gross | 4,923,237 | 4,966,193 | 4,806,730 |
Retail | Sub-prime | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing receivable, gross | 1,140,955 | 1,174,407 | 1,195,820 |
Wholesale | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing receivable, gross | 1,252,600 | 1,016,957 | 1,327,602 |
Wholesale | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing receivable, gross | 1,582 | 688 | 1,133 |
Wholesale | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing receivable, gross | 3,368 | 3,837 | 9,213 |
Wholesale | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing receivable, gross | 33,085 | 26,866 | 19,898 |
Wholesale | Medium Risk | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing receivable, gross | 10,512 | 9,917 | 14,648 |
Wholesale | Low Risk | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing receivable, gross | $ 1,204,053 | $ 975,649 | $ 1,282,710 |
Derivative Instruments and He62
Derivative Instruments and Hedging Activities (Derivative Instrument Fair Value) (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 |
Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value | $ 721,597 | $ 676,639 | $ 535,679 |
Designated as Hedging Instrument | Cash Flow Hedging | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset Fair Value | 3,442 | 1,388 | 12,218 |
Designated as Hedging Instrument | Cash Flow Hedging | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability Fair Value | 22,818 | 21,308 | 1,015 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Currency Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value | 720,869 | 675,724 | 534,652 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Currency Contracts | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset Fair Value | 3,442 | 1,388 | 12,195 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Currency Contracts | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability Fair Value | 22,807 | 21,239 | 1,015 |
Designated as Hedging Instrument | Cash Flow Hedging | Commodity Contract | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value | 728 | 915 | 1,027 |
Designated as Hedging Instrument | Cash Flow Hedging | Commodity Contract | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset Fair Value | 0 | 0 | 23 |
Designated as Hedging Instrument | Cash Flow Hedging | Commodity Contract | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability Fair Value | 11 | 69 | 0 |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value | 4,577 | 4,532 | 5,046 |
Not Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset Fair Value | 171 | 381 | 228 |
Not Designated as Hedging Instrument | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability Fair Value | 32 | 0 | 37 |
Not Designated as Hedging Instrument | Commodity Contract | |||
Derivatives, Fair Value [Line Items] | |||
Notional Value | 4,577 | 4,532 | 5,046 |
Not Designated as Hedging Instrument | Commodity Contract | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset Fair Value | 171 | 381 | 228 |
Not Designated as Hedging Instrument | Commodity Contract | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability Fair Value | $ 32 | $ 0 | $ 37 |
Derivative Instruments and He63
Derivative Instruments and Hedging Activities (Gain Loss On Derivative Cash Flow Hedges Recognized In OCI) (Detail) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in OCI, before tax | $ (5,906) | $ (11,903) |
Amount of Gain/(Loss) Reclassified from AOCL into Income | (6,908) | 2,474 |
Expected to be Reclassified Over the Next Twelve Months | (16,288) | |
Foreign Currency Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in OCI, before tax | (5,890) | (11,797) |
Foreign Currency Contracts | Cost of Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Reclassified from AOCL into Income | (6,709) | 2,516 |
Expected to be Reclassified Over the Next Twelve Months | (15,783) | |
Commodity Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in OCI, before tax | (16) | (106) |
Commodity Contract | Cost of Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Reclassified from AOCL into Income | (73) | 48 |
Expected to be Reclassified Over the Next Twelve Months | 1 | |
Treasury Rate Locks | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Reclassified from AOCL into Income | (126) | $ (90) |
Expected to be Reclassified Over the Next Twelve Months | $ (506) |
Derivative Instruments and He64
Derivative Instruments and Hedging Activities (Gain Loss On Derivative Cash Flow Hedges Reclassified From AOCI Into Income) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Derivative [Line Items] | ||
Amount of cash flow hedges excluded from effectiveness testing | $ 0 | $ 0 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivative | 6 | 20 |
Not Designated as Hedging Instrument | Commodity Contract | Cost of Goods Sold | ||
Derivative [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivative | $ 6 | $ 20 |
Debt (Debt With Contractual Ter
Debt (Debt With Contractual Term Less Than One Year) (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 |
Short-term Debt [Line Items] | |||
Short-term debt | $ 1,036,976 | $ 1,273,482 | $ 953,357 |
Commercial Paper | |||
Short-term Debt [Line Items] | |||
Short-term debt | $ 1,036,976 | $ 1,273,482 | $ 953,357 |
Debt (Debt With A Contractual T
Debt (Debt With A Contractual Term Greater Than One Year) (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 |
Debt Instrument [Line Items] | |||
Gross long-term debt | $ 5,981,190 | $ 5,714,527 | $ 6,017,858 |
Less: current portion of long-term debt, net of unamortized discount and debt issuance costs | (1,872,679) | (1,127,269) | (697,061) |
Long-term debt, net | 4,108,511 | 4,587,258 | 5,320,797 |
Secured Debt | |||
Debt Instrument [Line Items] | |||
Less: unamortized discount and debt issuance costs | (337) | (461) | (1,022) |
Gross long-term debt | 724,266 | 806,860 | 1,112,592 |
Secured Debt | Asset-backed Canadian commercial paper conduit facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 158,162 | 174,779 | 141,013 |
Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 281,311 | 279,457 | 286,205 |
Secured Debt | Asset-backed securitization debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 285,130 | 353,085 | 686,396 |
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Less: unamortized discount and debt issuance costs | (20,564) | (19,821) | (22,222) |
Unsecured Debt | 2.15% Medium-term notes due in 2020, issued February 2015 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 600,000 | $ 600,000 | $ 600,000 |
Debt instrument, stated percentage | 2.15% | 2.15% | 2.15% |
Unsecured Debt | 1.55% Medium-term notes due in 2017, issued November 2014 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 0 | $ 0 | $ 400,000 |
Debt instrument, stated percentage | 1.55% | 1.55% | 1.55% |
Unsecured Debt | 6.80% Medium-term notes due in 2018, issued May 2008 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 877,488 | $ 877,488 | $ 877,488 |
Debt instrument, stated percentage | 6.80% | 6.80% | 6.80% |
Unsecured Debt | 2.25% Medium-term notes due in 2019, issued January 2016 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 600,000 | $ 600,000 | $ 600,000 |
Debt instrument, stated percentage | 2.25% | 2.25% | 2.25% |
Unsecured Debt | Floating-Rate Medium Term Notes due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 150,000 | $ 150,000 | $ 150,000 |
Unsecured Debt | Two Point Four Percent Medium-Term Notes Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 600,000 | $ 600,000 | $ 600,000 |
Debt instrument, stated percentage | 2.40% | 2.40% | 2.40% |
Unsecured Debt | Two Point Four Percent Medium-Term Notes Due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 350,000 | $ 350,000 | $ 350,000 |
Debt instrument, stated percentage | 2.40% | 2.40% | 2.40% |
Unsecured Debt | Two Point Eighty-five Percent Medium-Term Notes Due 2021 [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 600,000 | $ 600,000 | $ 600,000 |
Debt instrument, stated percentage | 2.85% | 2.85% | 2.85% |
Unsecured Debt | Two Point Fifty-five Percent Medium-Term Notes Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 400,000 | $ 400,000 | $ 0 |
Debt instrument, stated percentage | 2.55% | 2.55% | 2.55% |
Unsecured Debt | Three Point Thirty-five Percent Medium Term Notes Due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 350,000 | $ 0 | $ 0 |
Debt instrument, stated percentage | 3.35% | 3.35% | 3.35% |
Unsecured Debt | Three Point Five Percent Senior Unsecured Notes Due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 450,000 | $ 450,000 | $ 450,000 |
Debt instrument, stated percentage | 3.50% | 3.50% | 3.50% |
Unsecured Debt | Four Point Six Two Five Percent Senior Unsecured Notes Due 2045 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 300,000 | $ 300,000 | $ 300,000 |
Debt instrument, stated percentage | 4.625% | 4.625% | 4.625% |
Asset-Backed Financing (Narrati
Asset-Backed Financing (Narrative) (Detail) | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2017USD ($) | Jun. 30, 2017CAD ($) | Jun. 26, 2016USD ($) | Apr. 01, 2018USD ($) | Mar. 26, 2017USD ($) | |
Variable Interest Entity [Line Items] | |||||
Company issued secured notes, net of discount and issuance costs | $ 5,714,527,000 | $ 5,981,190,000 | $ 6,017,858,000 | ||
Current unpaid balance - off-balance sheet retail motorcycle finance receivables | 146,425,000 | 127,643,000 | 212,764,000 | ||
Variable Interest Entity, Not Primary Beneficiary | |||||
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 | ||||
Secured Debt | |||||
Variable Interest Entity [Line Items] | |||||
Company issued secured notes, net of discount and issuance costs | 806,860,000 | 724,266,000 | $ 1,112,592,000 | ||
Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE [Member] | SPEs | U.S. Line of Credit | |||||
Variable Interest Entity [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 900,000,000 | ||||
Debt instrument, term | 5 years | ||||
Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE, Facility Two [Member] | SPEs | U.S. Line of Credit | |||||
Variable Interest Entity [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 300,000,000 | ||||
Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE, Facility One [Member] | SPEs | U.S. Line of Credit | |||||
Variable Interest Entity [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 600,000,000 | ||||
Secured Debt | Asset-backed Canadian commercial paper conduit facility | Variable Interest Entity, Not Primary Beneficiary | Foreign Line of Credit | |||||
Variable Interest Entity [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 220,000,000 | ||||
Debt instrument, term | 5 years | ||||
VIE, maximum loss exposure, amount | $ 32,700,000 |
Asset-Backed Financing (Assets
Asset-Backed Financing (Assets And Liabilities Of Variable Interest Entities) (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 |
Finance receivables | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | $ 849,975 | $ 943,522 | $ 1,231,483 |
Finance receivables | Asset-backed securitizations | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 367,584 | 439,301 | 772,152 |
Finance receivables | Asset-backed U.S. commercial paper conduit facilities | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 299,318 | 300,530 | 304,091 |
Finance receivables | Asset-backed Canadian commercial paper conduit facility | Variable Interest Entity, Not Primary Beneficiary | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 183,073 | 203,691 | 155,240 |
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 | (23,769) | (26,824) | (35,465) |
Allowance for credit losses | Asset-backed securitizations | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | (11,387) | (13,686) | (23,239) |
Allowance for credit losses | Asset-backed U.S. commercial paper conduit facilities | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | (9,297) | (9,392) | (9,178) |
Allowance for credit losses | Asset-backed Canadian commercial paper conduit facility | Variable Interest Entity, Not Primary Beneficiary | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | (3,085) | (3,746) | (3,048) |
Restricted cash | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 65,740 | 58,689 | 90,279 |
Restricted cash | Asset-backed securitizations | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 38,207 | 34,919 | 63,473 |
Restricted cash | Asset-backed U.S. commercial paper conduit facilities | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 16,933 | 13,787 | 15,781 |
Restricted cash | Asset-backed Canadian commercial paper conduit facility | Variable Interest Entity, Not Primary Beneficiary | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 10,600 | 9,983 | 11,025 |
Other assets | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 2,495 | 2,618 | 3,586 |
Other assets | Asset-backed securitizations | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 1,207 | 1,260 | 2,532 |
Other assets | Asset-backed U.S. commercial paper conduit facilities | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 968 | 888 | 672 |
Other assets | Asset-backed Canadian commercial paper conduit facility | Variable Interest Entity, Not Primary Beneficiary | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 320 | 470 | 382 |
Total assets | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 894,441 | 978,005 | 1,289,883 |
Total assets | Asset-backed securitizations | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 395,611 | 461,794 | 814,918 |
Total assets | Asset-backed U.S. commercial paper conduit facilities | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 307,922 | 305,813 | 311,366 |
Total assets | Asset-backed Canadian commercial paper conduit facility | Variable Interest Entity, Not Primary Beneficiary | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, assets, carrying amount | 190,908 | 210,398 | 163,599 |
Asset-backed debt | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | 724,266 | 806,860 | 1,112,592 |
Asset-backed debt | Asset-backed securitizations | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | 284,793 | 352,624 | 685,374 |
Asset-backed debt | Asset-backed U.S. commercial paper conduit facilities | SPEs | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | 281,311 | 279,457 | 286,205 |
Asset-backed debt | Asset-backed Canadian commercial paper conduit facility | Variable Interest Entity, Not Primary Beneficiary | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | $ 158,162 | $ 174,779 | $ 141,013 |
Asset-Backed Financing (Schedul
Asset-Backed Financing (Schedule of Loans Acquired in Transfer Not Accounted For as Debt Securities) (Detail) - Secured Debt - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
SPEs | Asset-Backed U.S. Commercial Paper Conduit Facility VIE [Member] | U.S. Line of Credit | ||
Variable Interest Entity [Line Items] | ||
Transfers on finance receivables | $ 32,900 | $ 333,400 |
Proceeds on finance receivables | 29,300 | 300,000 |
Variable Interest Entity, Not Primary Beneficiary | Asset-backed Canadian commercial paper conduit facility | Foreign Line of Credit | ||
Variable Interest Entity [Line Items] | ||
Transfers on finance receivables | 7,600 | 6,300 |
Proceeds on finance receivables | $ 6,200 | $ 5,500 |
Asset-Backed Financing (Servici
Asset-Backed Financing (Servicing Activities) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2018 | Mar. 26, 2017 | Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |||
Servicing and ancillary fees | $ 400 | $ 600 | |
Current unpaid balance - on-balance sheet retail motorcycle finance receivables | 5,923,564 | 5,867,143 | $ 5,993,185 |
Current unpaid balance - off-balance sheet retail motorcycle finance receivables | 127,643 | 212,764 | 146,425 |
Current unpaid balance - total serviced retail motorcycle finance receivables | 6,051,207 | 6,079,907 | 6,139,610 |
Delinquent - on-balance sheet retail motorcycle finance receivables | 166,560 | 162,386 | 227,127 |
Delinquent - off-balance sheet retail motorcycle finance receivables | 1,652 | 1,476 | 2,106 |
Delinquent - total serviced retail motorcycle finance receivables | 168,212 | 163,862 | $ 229,233 |
Credit losses net of recoveries - on-balance sheet retail motorcycle finance receivables | 32,173 | 32,902 | |
Credit losses net of recoveries - off-balance sheet retail motorcycle finance receivables | 361 | 414 | |
Credit losses net of recoveries - total serviced retail motorcycle finance receivables | $ 32,534 | $ 33,316 |
Fair Value (Summary of Assets A
Fair Value (Summary of Assets And Liabilities Measured at Fair Value) (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash equivalents | $ 653,124 | $ 488,432 | $ 628,895 |
Marketable securities | 49,402 | 48,006 | 46,678 |
Derivatives | 3,613 | 1,769 | 12,446 |
Assets, fair value | 706,139 | 538,207 | 688,019 |
Liabilities: | |||
Derivatives, liabilities | 22,850 | 21,308 | 1,052 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Cash equivalents | 326,324 | 358,500 | 370,084 |
Marketable securities | 49,402 | 48,006 | 41,674 |
Derivatives | 0 | 0 | 0 |
Assets, fair value | 375,726 | 406,506 | 411,758 |
Liabilities: | |||
Derivatives, liabilities | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Assets: | |||
Cash equivalents | 326,800 | 129,932 | 258,811 |
Marketable securities | 0 | 0 | 5,004 |
Derivatives | 3,613 | 1,769 | 12,446 |
Assets, fair value | 330,413 | 131,701 | 276,261 |
Liabilities: | |||
Derivatives, liabilities | 22,850 | 21,308 | 1,052 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Cash equivalents | 0 | 0 | 0 |
Marketable securities | 0 | 0 | 0 |
Derivatives | 0 | 0 | 0 |
Assets, fair value | 0 | 0 | 0 |
Liabilities: | |||
Derivatives, liabilities | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Fair Value Adjustment | |||
Liabilities: | |||
Repossessed inventory | 8,300 | 9,000 | 6,300 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | Fair Value | |||
Liabilities: | |||
Repossessed inventory | $ 23,800 | $ 19,600 | $ 20,100 |
Fair Value Fair Value (Summary
Fair Value Fair Value (Summary of Fair Value and Carrying Value of Company Financial Instruments) (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Finance receivables, net | $ 7,195,908 | $ 7,021,549 | $ 7,225,210 |
Fair Value | Commercial Paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term Debt, Fair Value | 1,036,976 | 1,273,482 | 953,357 |
Fair Value | Medium-term notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 4,486,399 | 4,189,092 | 4,234,664 |
Fair Value | Senior unsecured notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 750,440 | 784,433 | 755,646 |
Fair Value | Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 281,311 | 279,457 | 286,205 |
Fair Value | Secured Debt | Asset-backed Canadian commercial paper conduit facility | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 158,162 | 174,779 | 141,013 |
Fair Value | Secured Debt | Asset-backed securitization debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 283,591 | 351,767 | 685,953 |
Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Finance receivables, net | 7,126,442 | 6,965,086 | 7,146,122 |
Reported Value Measurement [Member] | Commercial Paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term Debt, Fair Value | 1,036,976 | 1,273,482 | 953,357 |
Reported Value Measurement [Member] | Medium-term notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 4,514,798 | 4,165,706 | 4,163,797 |
Reported Value Measurement [Member] | Senior unsecured notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 742,126 | 741,961 | 741,469 |
Reported Value Measurement [Member] | Secured Debt | Asset-Backed U.S. Commercial Paper Conduit Facility VIE [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 281,311 | 279,457 | 286,205 |
Reported Value Measurement [Member] | Secured Debt | Asset-backed Canadian commercial paper conduit facility | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 158,162 | 174,779 | 141,013 |
Reported Value Measurement [Member] | Secured Debt | Asset-backed securitization debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | $ 284,793 | $ 352,624 | $ 685,374 |
Product Warranty and Safety R73
Product Warranty and Safety Recall Campaigns (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 | Dec. 31, 2016 | |
Product Information [Line Items] | ||||
Liability for recall campaigns | $ 95,075 | $ 94,202 | $ 78,211 | $ 79,482 |
Recall Campaign | ||||
Product Information [Line Items] | ||||
Liability for recall campaigns | $ 32,300 | $ 35,300 | $ 10,300 | |
Motorcycles | All Countries, Excluding Japan | ||||
Product Information [Line Items] | ||||
Standard product warranty, period (in years) | 2 years | |||
Motorcycles | Japan | ||||
Product Information [Line Items] | ||||
Standard product warranty, period (in years) | 3 years | |||
Parts and Accessories and General Merchandise | ||||
Product Information [Line Items] | ||||
Standard product warranty, period (in years) | 1 year |
Product Warranty and Safety R74
Product Warranty and Safety Recall Campaigns (Warranty and Safety Recall Liability) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance, beginning of period | $ 94,202 | $ 79,482 |
Warranties issued during the period | 14,606 | 16,752 |
Settlements made during the period | (16,638) | (19,333) |
Recalls and changes to pre-existing warranty liabilities | 2,905 | 1,310 |
Balance, end of period | $ 95,075 | $ 78,211 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Pension and postretirement benefit plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other comprehensive income (loss) before reclassifications | $ 96,374 | $ 0 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Periodic Benefit Costs) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Pension and SERPA Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 8,155 | $ 7,896 |
Interest cost | 20,590 | 21,269 |
Expected return on plan assets | (36,891) | (35,345) |
Amortization of unrecognized: Prior service cost | (106) | 254 |
Amortization of unrecognized: Net loss | 15,819 | 10,998 |
Curtailment loss | 1,018 | 0 |
Net periodic benefit cost | 8,585 | 5,072 |
Postretirement Healthcare Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1,812 | 1,875 |
Interest cost | 2,897 | 3,412 |
Expected return on plan assets | (3,541) | (3,156) |
Amortization of unrecognized: Prior service cost | (460) | (543) |
Amortization of unrecognized: Net loss | 454 | 815 |
Net periodic benefit cost | $ 1,162 | $ 2,403 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - York, Pennsylvania Facility | 3 Months Ended |
Apr. 01, 2018 | |
Site Contingency [Line Items] | |
Site contingency portion of total cost, percentage | 47.00% |
Navy | |
Site Contingency [Line Items] | |
Site contingency portion of total cost, percentage | 53.00% |
Commitments and Contingencies V
Commitments and Contingencies Voluntary Recall (Details) $ in Millions | Dec. 31, 2017USD ($) |
Voluntary Recall [Member] | Accrued Liabilities | |
Product Liability Contingency [Line Items] | |
Product Liability Accrual, Component Amount | $ 29.4 |
Accumulated Other Comprehensi79
Accumulated Other Comprehensive Loss (Changes In Other Comprehensive Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | $ 1,844,277 | |
Total other comprehensive income, net of tax | 93,445 | $ 13,751 |
Balance, end of period | 1,995,949 | 1,993,409 |
AOCI Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (500,049) | (565,381) |
Other comprehensive income (loss) before reclassifications | 97,383 | 3,714 |
Income tax (benefit) expense | (21,242) | 4,339 |
Net other comprehensive income (loss) before reclassifications | 76,141 | 8,053 |
Total reclassifications before tax | 22,615 | 9,050 |
Reclassifications from AOCI, Income tax expense (benefit) | (5,311) | (3,352) |
Net reclassifications | 17,304 | 5,698 |
Total other comprehensive income, net of tax | 93,445 | 13,751 |
Balance, end of period | (406,604) | (551,630) |
AOCI Attributable to Parent [Member] | Foreign Currency Contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | 6,709 | (2,516) |
AOCI Attributable to Parent [Member] | Commodity Contract | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | 73 | (48) |
AOCI Attributable to Parent [Member] | Treasury Rate Locks | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | 126 | 90 |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (21,852) | (68,132) |
Other comprehensive income (loss) before reclassifications | 6,915 | 15,633 |
Income tax (benefit) expense | 0 | (76) |
Net other comprehensive income (loss) before reclassifications | 6,915 | 15,557 |
Total reclassifications before tax | 0 | 0 |
Reclassifications from AOCI, Income tax expense (benefit) | 0 | 0 |
Net reclassifications | 0 | 0 |
Total other comprehensive income, net of tax | 6,915 | 15,557 |
Balance, end of period | (14,937) | (52,575) |
Marketable securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | 0 | (1,194) |
Other comprehensive income (loss) before reclassifications | 0 | (16) |
Income tax (benefit) expense | 0 | 6 |
Net other comprehensive income (loss) before reclassifications | 0 | (10) |
Total reclassifications before tax | 0 | 0 |
Reclassifications from AOCI, Income tax expense (benefit) | 0 | 0 |
Net reclassifications | 0 | 0 |
Total other comprehensive income, net of tax | 0 | (10) |
Balance, end of period | 0 | (1,204) |
Derivative financial instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (17,254) | 12,524 |
Other comprehensive income (loss) before reclassifications | (5,906) | (11,903) |
Income tax (benefit) expense | 1,387 | 4,409 |
Net other comprehensive income (loss) before reclassifications | (4,519) | (7,494) |
Total reclassifications before tax | 6,908 | (2,474) |
Reclassifications from AOCI, Income tax expense (benefit) | (1,624) | 916 |
Net reclassifications | 5,284 | (1,558) |
Total other comprehensive income, net of tax | 765 | (9,052) |
Balance, end of period | (16,489) | 3,472 |
Derivative financial instruments | Foreign Currency Contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | 6,709 | (2,516) |
Derivative financial instruments | Commodity Contract | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | 73 | (48) |
Derivative financial instruments | Treasury Rate Locks | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | 126 | 90 |
Pension and postretirement benefit plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (460,943) | (508,579) |
Other comprehensive income (loss) before reclassifications | 96,374 | 0 |
Income tax (benefit) expense | (22,629) | 0 |
Net other comprehensive income (loss) before reclassifications | 73,745 | 0 |
Total reclassifications before tax | 15,707 | 11,524 |
Reclassifications from AOCI, Income tax expense (benefit) | (3,687) | (4,268) |
Net reclassifications | 12,020 | 7,256 |
Total other comprehensive income, net of tax | 85,765 | 7,256 |
Balance, end of period | (375,178) | (501,323) |
Pension and postretirement benefit plans - Prior service credits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | (566) | (289) |
Pension and postretirement benefit plans - Actuarial losses | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Total reclassifications before tax | $ 16,273 | $ 11,813 |
Business Segments (Narrative) (
Business Segments (Narrative) (Detail) | 3 Months Ended |
Apr. 01, 2018segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Business Segments (Information
Business Segments (Information By Strategic Business Units) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Segment Reporting Information [Line Items] | ||
Motorcycles net revenue | $ 1,363,947 | $ 1,328,711 |
Selling, administrative and engineering expense | 290,186 | 271,984 |
Restructuring expense | 46,842 | 0 |
Financial Services revenue | 178,174 | 173,221 |
Operating income | 236,417 | 289,182 |
Motorcycles and Related Products | ||
Segment Reporting Information [Line Items] | ||
Motorcycles net revenue | 1,363,947 | |
Restructuring expense | 46,842 | |
Financial Services | ||
Segment Reporting Information [Line Items] | ||
Financial Services revenue | 178,174 | |
Operating Segments | Motorcycles and Related Products | ||
Segment Reporting Information [Line Items] | ||
Motorcycles net revenue | 1,363,947 | 1,328,711 |
Gross profit | 473,773 | 474,823 |
Selling, administrative and engineering expense | 254,093 | 238,277 |
Restructuring expense | 46,842 | 0 |
Operating income | 172,838 | 236,546 |
Operating Segments | Financial Services | ||
Segment Reporting Information [Line Items] | ||
Financial Services revenue | 178,174 | 173,221 |
Financial Services expense | 114,595 | 120,585 |
Operating income | $ 63,579 | $ 52,636 |
Supplemental Consolidating Da82
Supplemental Consolidating Data (Operations) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Revenue: | ||
Motorcycles and Related Products | $ 1,363,947 | $ 1,328,711 |
Financial Services | 178,174 | 173,221 |
Total revenue | 1,542,121 | 1,501,932 |
Costs and expenses: | ||
Motorcycles and Related Products cost of goods sold | 890,174 | 853,888 |
Financial Services interest expense | 48,450 | 43,289 |
Provision for credit losses | 30,052 | 43,589 |
Selling, administrative and engineering expense | 290,186 | 271,984 |
Restructuring expense | 46,842 | 0 |
Total costs and expenses | 1,305,704 | 1,212,750 |
Operating income | 236,417 | 289,182 |
Other income (expense), net | 220 | 2,296 |
Investment income | 1,203 | 879 |
Interest expense | 7,690 | 7,673 |
Income before provision for income taxes | 230,150 | 284,684 |
Provision for income taxes | 55,387 | 98,315 |
Net income | 174,763 | 186,369 |
Reportable Legal Entities | Motorcycles And Related Products Operations | ||
Revenue: | ||
Motorcycles and Related Products | 1,366,246 | 1,330,618 |
Financial Services | 0 | 0 |
Total revenue | 1,366,246 | 1,330,618 |
Costs and expenses: | ||
Motorcycles and Related Products cost of goods sold | 890,174 | 853,888 |
Financial Services interest expense | 0 | 0 |
Provision for credit losses | 0 | 0 |
Selling, administrative and engineering expense | 254,401 | 238,630 |
Restructuring expense | 46,842 | |
Total costs and expenses | 1,191,417 | 1,092,518 |
Operating income | 174,829 | 238,100 |
Other income (expense), net | 220 | 2,296 |
Investment income | 111,203 | 106,879 |
Interest expense | 7,690 | 7,673 |
Income before provision for income taxes | 278,562 | 339,602 |
Provision for income taxes | 40,233 | 79,157 |
Net income | 238,329 | 260,445 |
Reportable Legal Entities | Financial Services Operations | ||
Revenue: | ||
Motorcycles and Related Products | 0 | 0 |
Financial Services | 178,460 | 173,557 |
Total revenue | 178,460 | 173,557 |
Costs and expenses: | ||
Motorcycles and Related Products cost of goods sold | 0 | 0 |
Financial Services interest expense | 48,450 | 43,289 |
Provision for credit losses | 30,052 | 43,589 |
Selling, administrative and engineering expense | 38,391 | 35,614 |
Restructuring expense | 0 | |
Total costs and expenses | 116,893 | 122,492 |
Operating income | 61,567 | 51,065 |
Other income (expense), net | 0 | 0 |
Investment income | 0 | 0 |
Interest expense | 0 | 0 |
Income before provision for income taxes | 61,567 | 51,065 |
Provision for income taxes | 15,154 | 19,158 |
Net income | 46,413 | 31,907 |
Eliminations | ||
Revenue: | ||
Motorcycles and Related Products | (2,299) | (1,907) |
Financial Services | (286) | (336) |
Total revenue | (2,585) | (2,243) |
Costs and expenses: | ||
Motorcycles and Related Products cost of goods sold | 0 | 0 |
Financial Services interest expense | 0 | 0 |
Provision for credit losses | 0 | 0 |
Selling, administrative and engineering expense | (2,606) | (2,260) |
Restructuring expense | 0 | |
Total costs and expenses | (2,606) | (2,260) |
Operating income | 21 | 17 |
Other income (expense), net | 0 | 0 |
Investment income | (110,000) | (106,000) |
Interest expense | 0 | 0 |
Income before provision for income taxes | (109,979) | (105,983) |
Provision for income taxes | 0 | 0 |
Net income | $ (109,979) | $ (105,983) |
Supplemental Consolidating Da83
Supplemental Consolidating Data (Balance Sheet) (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 |
Current assets: | |||
Cash and cash equivalents | $ 753,517 | $ 687,521 | $ 839,700 |
Marketable securities | 0 | 0 | 5,004 |
Accounts receivable, net | 355,107 | 329,986 | 335,578 |
Finance receivables, net | 2,341,918 | 2,105,662 | 2,354,095 |
Inventories | 564,571 | 538,202 | 485,476 |
Restricted cash | 54,569 | 47,518 | 75,705 |
Other current assets | 150,472 | 175,853 | 142,362 |
Total current assets | 4,220,154 | 3,884,742 | 4,237,920 |
Finance receivables, net | 4,784,524 | 4,859,424 | 4,792,027 |
Property, plant and equipment, net | 934,645 | 967,781 | 953,044 |
Prepaid pension costs | 122,230 | 19,816 | 0 |
Goodwill | 56,524 | 55,947 | 53,967 |
Deferred income taxes | 77,624 | 109,073 | 165,196 |
Other long-term assets | 81,920 | 75,889 | 79,701 |
Total assets | 10,277,621 | 9,972,672 | 10,281,855 |
Current liabilities: | |||
Accounts payable | 319,040 | 227,597 | 358,684 |
Accrued liabilities | 566,408 | 529,822 | 547,637 |
Short-term debt | 1,036,976 | 1,273,482 | 953,357 |
Current portion of long-term debt, net | 1,872,679 | 1,127,269 | 697,061 |
Total current liabilities | 3,795,103 | 3,158,170 | 2,556,739 |
Long-term debt, net | 4,108,511 | 4,587,258 | 5,320,797 |
Pension liability | 54,921 | 54,606 | 52,559 |
Postretirement healthcare benefits | 113,031 | 118,753 | 171,143 |
Other long-term liabilities | 210,106 | 209,608 | 187,208 |
Shareholders’ equity | 1,995,949 | 1,844,277 | 1,993,409 |
Total liabilities and shareholders' equity | 10,277,621 | 9,972,672 | 10,281,855 |
Reportable Legal Entities | Motorcycles And Related Products Operations | |||
Current assets: | |||
Cash and cash equivalents | 403,009 | 338,186 | 479,439 |
Marketable securities | 5,004 | ||
Accounts receivable, net | 686,265 | 483,709 | 740,231 |
Finance receivables, net | 0 | 0 | 0 |
Inventories | 564,571 | 538,202 | 485,476 |
Restricted cash | 0 | 0 | 0 |
Other current assets | 108,613 | 132,999 | 102,298 |
Total current assets | 1,762,458 | 1,493,096 | 1,812,448 |
Finance receivables, net | 0 | 0 | 0 |
Property, plant and equipment, net | 887,522 | 922,280 | 913,462 |
Prepaid pension costs | 122,230 | 19,816 | |
Goodwill | 56,524 | 55,947 | 53,967 |
Deferred income taxes | 36,140 | 66,877 | 98,291 |
Other long-term assets | 145,344 | 138,344 | 137,712 |
Total assets | 3,010,218 | 2,696,360 | 3,015,880 |
Current liabilities: | |||
Accounts payable | 297,162 | 214,263 | 333,227 |
Accrued liabilities | 462,279 | 444,028 | 442,181 |
Short-term debt | 0 | 0 | 0 |
Current portion of long-term debt, net | 0 | 0 | 0 |
Total current liabilities | 759,441 | 658,291 | 775,408 |
Long-term debt, net | 742,126 | 741,961 | 741,469 |
Pension liability | 54,921 | 54,606 | 52,559 |
Postretirement healthcare benefits | 113,031 | 118,753 | 171,143 |
Other long-term liabilities | 171,389 | 171,200 | 152,974 |
Shareholders’ equity | 1,169,310 | 951,549 | 1,122,327 |
Total liabilities and shareholders' equity | 3,010,218 | 2,696,360 | 3,015,880 |
Reportable Legal Entities | Financial Services Operations | |||
Current assets: | |||
Cash and cash equivalents | 350,508 | 349,335 | 360,261 |
Marketable securities | 0 | ||
Accounts receivable, net | 0 | 0 | 0 |
Finance receivables, net | 2,341,918 | 2,105,662 | 2,354,095 |
Inventories | 0 | 0 | 0 |
Restricted cash | 54,569 | 47,518 | 75,705 |
Other current assets | 44,724 | 48,521 | 40,064 |
Total current assets | 2,791,719 | 2,551,036 | 2,830,125 |
Finance receivables, net | 4,784,524 | 4,859,424 | 4,792,027 |
Property, plant and equipment, net | 47,123 | 45,501 | 39,582 |
Prepaid pension costs | 0 | 0 | |
Goodwill | 0 | 0 | 0 |
Deferred income taxes | 42,543 | 43,515 | 68,306 |
Other long-term assets | 23,514 | 23,593 | 25,790 |
Total assets | 7,689,423 | 7,523,069 | 7,755,830 |
Current liabilities: | |||
Accounts payable | 353,036 | 167,057 | 430,110 |
Accrued liabilities | 106,149 | 90,942 | 105,060 |
Short-term debt | 1,036,976 | 1,273,482 | 953,357 |
Current portion of long-term debt, net | 1,872,679 | 1,127,269 | 697,061 |
Total current liabilities | 3,368,840 | 2,658,750 | 2,185,588 |
Long-term debt, net | 3,366,385 | 3,845,297 | 4,579,328 |
Pension liability | 0 | 0 | 0 |
Postretirement healthcare benefits | 0 | 0 | 0 |
Other long-term liabilities | 35,899 | 35,503 | 31,506 |
Shareholders’ equity | 918,299 | 983,519 | 959,408 |
Total liabilities and shareholders' equity | 7,689,423 | 7,523,069 | 7,755,830 |
Eliminations | |||
Current assets: | |||
Cash and cash equivalents | 0 | 0 | 0 |
Marketable securities | 0 | ||
Accounts receivable, net | (331,158) | (153,723) | (404,653) |
Finance receivables, net | 0 | 0 | 0 |
Inventories | 0 | 0 | 0 |
Restricted cash | 0 | 0 | 0 |
Other current assets | (2,865) | (5,667) | 0 |
Total current assets | (334,023) | (159,390) | (404,653) |
Finance receivables, net | 0 | 0 | 0 |
Property, plant and equipment, net | 0 | 0 | 0 |
Prepaid pension costs | 0 | 0 | |
Goodwill | 0 | 0 | 0 |
Deferred income taxes | (1,059) | (1,319) | (1,401) |
Other long-term assets | (86,938) | (86,048) | (83,801) |
Total assets | (422,020) | (246,757) | (489,855) |
Current liabilities: | |||
Accounts payable | (331,158) | (153,723) | (404,653) |
Accrued liabilities | (2,020) | (5,148) | 396 |
Short-term debt | 0 | 0 | 0 |
Current portion of long-term debt, net | 0 | 0 | 0 |
Total current liabilities | (333,178) | (158,871) | (404,257) |
Long-term debt, net | 0 | 0 | 0 |
Pension liability | 0 | 0 | 0 |
Postretirement healthcare benefits | 0 | 0 | 0 |
Other long-term liabilities | 2,818 | 2,905 | 2,728 |
Shareholders’ equity | (91,660) | (90,791) | (88,326) |
Total liabilities and shareholders' equity | $ (422,020) | $ (246,757) | $ (489,855) |
Supplemental Consolidating Da84
Supplemental Consolidating Data (Cash Flows) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Apr. 01, 2018 | Mar. 26, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 819,257 | $ 929,979 | $ 746,210 | $ 827,131 |
Cash flows from operating activities: | ||||
Net income | 174,763 | 186,369 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization of intangibles | 62,473 | 54,900 | ||
Amortization of deferred loan origination costs | 20,116 | 20,078 | ||
Amortization of financing origination fees | 2,028 | 2,076 | ||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | 9,747 | 7,475 | ||
Employee benefit plan contributions and payments | (5,486) | (29,957) | ||
Stock compensation expense | 7,962 | 6,992 | ||
Net change in wholesale finance receivables related to sales | (239,902) | (317,087) | ||
Provision for credit losses | 30,052 | 43,589 | ||
Deferred income taxes | 3,188 | 3,989 | ||
Other, net | (1,902) | (5,334) | ||
Changes in current assets and liabilities: | ||||
Accounts receivable, net | (17,688) | (39,230) | ||
Finance receivables - accrued interest and other | 4,758 | 5,142 | ||
Inventories | (21,542) | 23,476 | ||
Accounts payable and accrued liabilities | 148,923 | 182,928 | ||
Derivative instruments | 702 | 3,120 | ||
Other | 13,402 | 11,413 | ||
Total adjustments | 16,831 | (26,430) | ||
Net cash provided by operating activities | 191,594 | 159,939 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (28,436) | (23,967) | ||
Origination of finance receivables | (798,067) | (844,692) | ||
Collections on finance receivables | 809,800 | 781,154 | ||
Other | (4,948) | 52 | ||
Net cash used by investing activities | (21,651) | (87,453) | ||
Cash flows from financing activities: | ||||
Proceeds from issuance of medium-term notes | 347,553 | 497,406 | ||
Repayments of medium-term notes | 0 | (400,000) | ||
Repayments of securitization debt | (67,955) | (111,359) | ||
Net decrease in credit facilities and unsecured commercial paper | (234,145) | (101,702) | ||
Borrowings of asset-backed commercial paper | 35,504 | 305,209 | ||
Repayments of asset-backed commercial paper | (45,907) | (29,383) | ||
Dividends paid | (62,731) | (64,611) | ||
Purchase of common stock for treasury | (72,968) | (79,753) | ||
Issuance of common stock under employee stock option plans | 1,719 | 7,336 | ||
Net cash (used by) provided by financing activities | (98,930) | 23,143 | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,034 | 7,219 | ||
Cash, cash equivalents and restricted cash: | ||||
Net increase in cash, cash equivalents and restricted cash | 73,047 | 102,848 | ||
Reportable Legal Entities | Motorcycles And Related Products Operations | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 403,009 | 479,439 | 338,186 | 425,540 |
Cash flows from operating activities: | ||||
Net income | 238,329 | 260,445 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization of intangibles | 61,405 | 53,241 | ||
Amortization of deferred loan origination costs | 0 | 0 | ||
Amortization of financing origination fees | 165 | 163 | ||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | 9,747 | 7,475 | ||
Employee benefit plan contributions and payments | (5,486) | (29,957) | ||
Stock compensation expense | 7,072 | 6,317 | ||
Net change in wholesale finance receivables related to sales | 0 | 0 | ||
Provision for credit losses | 0 | 0 | ||
Deferred income taxes | 2,469 | 6,728 | ||
Other, net | (2,081) | (6,728) | ||
Changes in current assets and liabilities: | ||||
Accounts receivable, net | (195,123) | (278,803) | ||
Finance receivables - accrued interest and other | 0 | 0 | ||
Inventories | (21,542) | 23,476 | ||
Accounts payable and accrued liabilities | 121,833 | 154,372 | ||
Derivative instruments | 666 | 3,120 | ||
Other | 9,935 | 5,537 | ||
Total adjustments | (10,940) | (55,059) | ||
Net cash provided by operating activities | 227,389 | 205,386 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (25,746) | (21,686) | ||
Origination of finance receivables | 0 | 0 | ||
Collections on finance receivables | 0 | 0 | ||
Other | (4,948) | 52 | ||
Net cash used by investing activities | (30,694) | (21,634) | ||
Cash flows from financing activities: | ||||
Proceeds from issuance of medium-term notes | 0 | 0 | ||
Repayments of medium-term notes | 0 | |||
Repayments of securitization debt | 0 | 0 | ||
Net decrease in credit facilities and unsecured commercial paper | 0 | 0 | ||
Borrowings of asset-backed commercial paper | 0 | 0 | ||
Repayments of asset-backed commercial paper | 0 | 0 | ||
Dividends paid | (62,731) | (64,611) | ||
Purchase of common stock for treasury | (72,968) | (79,753) | ||
Issuance of common stock under employee stock option plans | 1,719 | 7,336 | ||
Net cash (used by) provided by financing activities | (133,980) | (137,028) | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,108 | 7,175 | ||
Cash, cash equivalents and restricted cash: | ||||
Net increase in cash, cash equivalents and restricted cash | 64,823 | 53,899 | ||
Reportable Legal Entities | Financial Services Operations | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 416,248 | 450,540 | 408,024 | 401,591 |
Cash flows from operating activities: | ||||
Net income | 46,413 | 31,907 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization of intangibles | 1,068 | 1,659 | ||
Amortization of deferred loan origination costs | 20,116 | 20,078 | ||
Amortization of financing origination fees | 1,863 | 1,913 | ||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | 0 | 0 | ||
Employee benefit plan contributions and payments | 0 | 0 | ||
Stock compensation expense | 890 | 675 | ||
Net change in wholesale finance receivables related to sales | 0 | 0 | ||
Provision for credit losses | 30,052 | 43,589 | ||
Deferred income taxes | 979 | (2,230) | ||
Other, net | 200 | 1,411 | ||
Changes in current assets and liabilities: | ||||
Accounts receivable, net | 0 | 0 | ||
Finance receivables - accrued interest and other | 4,758 | 5,142 | ||
Inventories | 0 | 0 | ||
Accounts payable and accrued liabilities | 201,056 | 263,011 | ||
Derivative instruments | 36 | 0 | ||
Other | 6,269 | 5,925 | ||
Total adjustments | 267,287 | 341,173 | ||
Net cash provided by operating activities | 313,700 | 373,080 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (2,690) | (2,281) | ||
Origination of finance receivables | (1,786,309) | (1,932,599) | ||
Collections on finance receivables | 1,558,547 | 1,556,534 | ||
Other | 0 | 0 | ||
Net cash used by investing activities | (230,452) | (378,346) | ||
Cash flows from financing activities: | ||||
Proceeds from issuance of medium-term notes | 347,553 | 497,406 | ||
Repayments of medium-term notes | (400,000) | |||
Repayments of securitization debt | (67,955) | (111,359) | ||
Net decrease in credit facilities and unsecured commercial paper | (234,145) | (101,702) | ||
Borrowings of asset-backed commercial paper | 35,504 | 305,209 | ||
Repayments of asset-backed commercial paper | (45,907) | (29,383) | ||
Dividends paid | (110,000) | (106,000) | ||
Purchase of common stock for treasury | 0 | 0 | ||
Issuance of common stock under employee stock option plans | 0 | 0 | ||
Net cash (used by) provided by financing activities | (74,950) | 54,171 | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (74) | 44 | ||
Cash, cash equivalents and restricted cash: | ||||
Net increase in cash, cash equivalents and restricted cash | 8,224 | 48,949 | ||
Eliminations | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | $ 0 | $ 0 |
Cash flows from operating activities: | ||||
Net income | (109,979) | (105,983) | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization of intangibles | 0 | 0 | ||
Amortization of deferred loan origination costs | 0 | 0 | ||
Amortization of financing origination fees | 0 | 0 | ||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | 0 | 0 | ||
Employee benefit plan contributions and payments | 0 | 0 | ||
Stock compensation expense | 0 | 0 | ||
Net change in wholesale finance receivables related to sales | (239,902) | (317,087) | ||
Provision for credit losses | 0 | 0 | ||
Deferred income taxes | (260) | (509) | ||
Other, net | (21) | (17) | ||
Changes in current assets and liabilities: | ||||
Accounts receivable, net | 177,435 | 239,573 | ||
Finance receivables - accrued interest and other | 0 | 0 | ||
Inventories | 0 | 0 | ||
Accounts payable and accrued liabilities | (173,966) | (234,455) | ||
Derivative instruments | 0 | 0 | ||
Other | (2,802) | (49) | ||
Total adjustments | (239,516) | (312,544) | ||
Net cash provided by operating activities | (349,495) | (418,527) | ||
Cash flows from investing activities: | ||||
Capital expenditures | 0 | 0 | ||
Origination of finance receivables | 988,242 | 1,087,907 | ||
Collections on finance receivables | (748,747) | (775,380) | ||
Other | 0 | 0 | ||
Net cash used by investing activities | 239,495 | 312,527 | ||
Cash flows from financing activities: | ||||
Proceeds from issuance of medium-term notes | 0 | 0 | ||
Repayments of medium-term notes | 0 | |||
Repayments of securitization debt | 0 | 0 | ||
Net decrease in credit facilities and unsecured commercial paper | 0 | 0 | ||
Borrowings of asset-backed commercial paper | 0 | 0 | ||
Repayments of asset-backed commercial paper | 0 | 0 | ||
Dividends paid | 110,000 | 106,000 | ||
Purchase of common stock for treasury | 0 | 0 | ||
Issuance of common stock under employee stock option plans | 0 | 0 | ||
Net cash (used by) provided by financing activities | 110,000 | 106,000 | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | ||
Cash, cash equivalents and restricted cash: | ||||
Net increase in cash, cash equivalents and restricted cash | $ 0 | $ 0 |