Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 28, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 28, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-9183 | |
Entity Registrant Name | Harley-Davidson, Inc. | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-1382325 | |
Entity Address, Address Line One | 3700 West Juneau Avenue | |
Entity Address, City or Town | Milwaukee | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53208 | |
City Area Code | 414 | |
Local Phone Number | 342-4680 | |
Title of 12(b) Security | Common Stock Par Value $.01 PER SHARE | |
Trading Symbol | HOG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 153,241,253 | |
Entity Central Index Key | 0000793952 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Revenue: | ||||
Total revenue | $ 865,227 | $ 1,632,619 | $ 2,163,471 | $ 3,016,999 |
Costs and expenses: | ||||
Motorcycles and Related Products cost of goods sold | 561,646 | 979,266 | 1,342,514 | 1,827,464 |
Financial Services interest expense | 62,187 | 52,673 | 114,660 | 104,997 |
Financial Services provision for credit losses | 91,179 | 26,383 | 170,598 | 60,874 |
Selling, administrative and engineering expense | 224,365 | 307,617 | 502,336 | 576,242 |
Restructuring expense | 41,949 | 10,423 | 41,949 | 24,053 |
Total costs and expenses | 981,326 | 1,376,362 | 2,172,057 | 2,593,630 |
Operating (loss) income | (116,099) | 256,257 | (8,586) | 423,369 |
Other income, net | 156 | 4,037 | 311 | 8,697 |
Investment income | 5,757 | 3,571 | 410 | 9,929 |
Interest expense | 7,769 | 7,784 | 15,524 | 15,515 |
(Loss) income before provision for income taxes | (117,955) | 256,081 | (23,389) | 426,480 |
Income tax (benefit) provision | (25,738) | 60,450 | (867) | 102,904 |
Net (loss) income | $ (92,217) | $ 195,631 | $ (22,522) | $ 323,576 |
(Net loss) earnings per share: | ||||
Basic (in dollars per share) | $ (0.60) | $ 1.23 | $ (0.15) | $ 2.03 |
Diluted (in dollars per share) | (0.60) | 1.23 | (0.15) | 2.03 |
Cash dividends per share (in dollars per share) | $ 0.020 | $ 0.375 | $ 0.400 | $ 0.750 |
Motorcycles and Related Products | ||||
Revenue: | ||||
Motorcycles and Related Products | $ 669,274 | $ 1,434,004 | $ 1,769,062 | $ 2,629,641 |
Financial Services | ||||
Revenue: | ||||
Financial Services | $ 195,953 | $ 198,615 | $ 394,409 | $ 387,358 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (92,217) | $ 195,631 | $ (22,522) | $ 323,576 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 21,443 | 11,270 | (13,012) | 11,601 |
Derivative financial instruments | (6,309) | (11,923) | (26,154) | (12,364) |
Pension and postretirement benefit plans | 11,958 | 7,743 | 23,917 | 15,486 |
Total other comprehensive loss, net of tax | 27,092 | 7,090 | (15,249) | 14,723 |
Comprehensive (loss) income | $ (65,125) | $ 202,721 | $ (37,771) | $ 338,299 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Current assets: | |||
Cash and cash equivalents | $ 3,856,597 | $ 833,868 | $ 924,638 |
Accounts receivable, net | 271,431 | 259,334 | 325,306 |
Finance receivables, net of allowance of $75,563, $43,006, and $40,446 | 1,901,620 | 2,272,522 | 2,362,125 |
Inventories, net | 429,339 | 603,571 | 470,610 |
Restricted cash | 189,712 | 64,554 | 82,248 |
Other current assets | 163,135 | 168,974 | 147,234 |
Total current assets | 6,811,834 | 4,202,823 | 4,312,161 |
Finance receivables, net of allowance of $335,452, $155,575, and $154,550 | 5,078,371 | 5,101,844 | 5,232,280 |
Property, plant and equipment, net | 816,989 | 847,382 | 855,998 |
Prepaid pension costs | 73,589 | 56,014 | 0 |
Goodwill | 64,192 | 64,160 | 64,449 |
Deferred income taxes | 141,566 | 101,204 | 134,639 |
Lease assets | 53,031 | 61,618 | 54,913 |
Other long-term assets | 116,580 | 93,114 | 85,876 |
Total assets | 13,156,152 | 10,528,159 | 10,740,316 |
Current liabilities: | |||
Accounts payable | 317,462 | 294,380 | 324,464 |
Accrued liabilities | 604,210 | 582,288 | 615,905 |
Short-term debt | 1,547,388 | 571,995 | 405,695 |
Current portion of long-term debt, net | 2,186,037 | 1,748,109 | 2,396,188 |
Total current liabilities | 4,655,097 | 3,196,772 | 3,742,252 |
Long-term debt, net | 6,488,499 | 5,124,826 | 4,650,176 |
Lease liabilities | 36,394 | 44,447 | 38,365 |
Pension liabilities | 57,033 | 56,138 | 92,750 |
Postretirement healthcare liabilities | 69,964 | 72,513 | 92,539 |
Other long-term liabilities | 225,460 | 229,464 | 213,593 |
Commitments and contingencies | |||
Shareholders’ equity: | |||
Preferred stock, none issued | 0 | 0 | 0 |
Common stock | 1,834 | 1,828 | 1,827 |
Additional paid-in-capital | 1,494,259 | 1,491,004 | 1,474,819 |
Retained earnings | 2,031,329 | 2,193,997 | 2,210,318 |
Accumulated other comprehensive loss | (552,198) | (536,949) | (614,961) |
Treasury stock, at cost | (1,351,519) | (1,345,881) | (1,161,362) |
Total shareholders' equity | 1,623,705 | 1,803,999 | 1,910,641 |
Total liabilities and shareholders' equity | 13,156,152 | 10,528,159 | 10,740,316 |
Consolidated VIEs | |||
Current assets: | |||
Finance receivables, net of allowance of $75,563, $43,006, and $40,446 | 631,474 | 291,444 | 320,710 |
Other current assets | 2,430 | 2,420 | 1,533 |
Finance receivables, net of allowance of $335,452, $155,575, and $154,550 | 2,531,323 | 1,027,179 | 1,240,081 |
Restricted cash - current and non-current | 199,748 | 63,812 | 79,436 |
Current liabilities: | |||
Current portion of long-term debt, net | 750,474 | 317,607 | 360,269 |
Long-term debt, net | $ 2,251,473 | $ 937,212 | $ 1,106,736 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | |||
Allowance for credit loss, current | $ 75,563 | $ 43,006 | $ 40,446 |
Allowance for credit loss, noncurrent | $ 335,452 | $ 155,575 | $ 154,550 |
Preferred stock, issued (in shares) | 0 | 0 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net cash provided by operating activities | $ 610,203 | $ 496,232 |
Cash flows from investing activities: | ||
Capital expenditures | (67,026) | (83,229) |
Origination of finance receivables | (1,869,569) | (2,064,899) |
Collections on finance receivables | 1,785,698 | 1,768,829 |
Sales and redemptions of marketable securities | 0 | 10,007 |
Acquisition of business | 0 | (7,000) |
Other investing activities | (381) | 11,717 |
Net cash used by investing activities | (151,278) | (364,575) |
Cash flows from financing activities: | ||
Proceeds from issuance of medium-term notes | 1,396,602 | 546,655 |
Repayments of medium-term notes | (1,400,000) | (750,000) |
Proceeds from securitization debt | 2,064,450 | 1,021,353 |
Repayments of securitization debt | (369,613) | (113,806) |
Borrowings of asset-backed commercial paper | 225,187 | 23,373 |
Repayments of asset-backed commercial paper | (143,306) | (155,286) |
Net increase in unsecured commercial paper | 831,354 | (728,606) |
Net increase in credit facilities | 150,000 | 0 |
Deposits | 17,995 | 0 |
Dividends paid | (61,917) | (120,841) |
Repurchase of common stock | (7,156) | (104,621) |
Issuance of common stock under share-based plans | 41 | 833 |
Net cash provided (used) by financing activities | 2,703,637 | (380,946) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (382) | 3,439 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,162,180 | (245,850) |
Cash, cash equivalents and restricted cash, beginning of period | 905,366 | 1,259,748 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,162,180 | (245,850) |
Cash, cash equivalents and restricted cash, end of period | 4,067,546 | 1,013,898 |
Reconciliation of cash, cash equivalents and restricted cash on the Consolidated balance sheets to the Consolidated statements of cash flows: | ||
Cash and cash equivalents | 3,856,597 | 924,638 |
Restricted cash | 189,712 | 82,248 |
Restricted cash included in Other long-term assets | $ 21,237 | $ 7,012 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period Of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period Of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2018 | 181,931,225 | |||||||
Balance, beginning of period at Dec. 31, 2018 | $ 1,773,949 | $ 1,819 | $ 1,459,620 | $ 2,007,583 | $ (629,684) | $ (1,065,389) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 127,945 | 127,945 | ||||||
Other comprehensive income, net of tax | 7,633 | 7,633 | ||||||
Dividends | (60,859) | (60,859) | ||||||
Repurchase of common stock | (61,712) | (61,712) | ||||||
Share-based compensation (in shares) | 702,687 | |||||||
Share-based compensation | 10,655 | $ 7 | 5,961 | 4,687 | ||||
Ending balance (in shares) at Mar. 31, 2019 | 182,633,912 | |||||||
Balance, end of period at Mar. 31, 2019 | 1,797,611 | $ 1,826 | 1,465,581 | 2,074,669 | (622,051) | (1,122,414) | ||
Beginning balance (in shares) at Dec. 31, 2018 | 181,931,225 | |||||||
Balance, beginning of period at Dec. 31, 2018 | 1,773,949 | $ 1,819 | 1,459,620 | 2,007,583 | (629,684) | (1,065,389) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 323,576 | |||||||
Other comprehensive income, net of tax | 14,723 | 14,723 | ||||||
Ending balance (in shares) at Jun. 30, 2019 | 182,643,250 | |||||||
Balance, end of period at Jun. 30, 2019 | 1,910,641 | $ 1,827 | 1,474,819 | 2,210,318 | (614,961) | (1,161,362) | ||
Beginning balance (in shares) at Mar. 31, 2019 | 182,633,912 | |||||||
Balance, beginning of period at Mar. 31, 2019 | 1,797,611 | $ 1,826 | 1,465,581 | 2,074,669 | (622,051) | (1,122,414) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 195,631 | 195,631 | ||||||
Other comprehensive income, net of tax | 7,090 | 7,090 | ||||||
Dividends | (59,982) | (59,982) | ||||||
Repurchase of common stock | (42,908) | (42,908) | ||||||
Share-based compensation (in shares) | 9,338 | |||||||
Share-based compensation | 13,199 | $ 1 | 9,238 | 3,960 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 182,643,250 | |||||||
Balance, end of period at Jun. 30, 2019 | 1,910,641 | $ 1,827 | 1,474,819 | 2,210,318 | (614,961) | (1,161,362) | ||
Beginning balance (in shares) at Dec. 31, 2019 | 182,816,536 | |||||||
Balance, beginning of period at Dec. 31, 2019 | 1,803,999 | $ (78,229) | $ 1,828 | 1,491,004 | 2,193,997 | $ (78,229) | (536,949) | (1,345,881) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 69,695 | 69,695 | ||||||
Other comprehensive income, net of tax | (42,341) | (42,341) | ||||||
Dividends | (58,817) | (58,817) | ||||||
Repurchase of common stock | (7,071) | (7,071) | ||||||
Share-based compensation (in shares) | 585,053 | |||||||
Share-based compensation | 4,747 | $ 6 | 4,137 | 604 | ||||
Ending balance (in shares) at Mar. 29, 2020 | 183,401,589 | |||||||
Balance, end of period at Mar. 29, 2020 | 1,691,983 | $ 1,834 | 1,495,141 | 2,126,646 | (579,290) | (1,352,348) | ||
Beginning balance (in shares) at Dec. 31, 2019 | 182,816,536 | |||||||
Balance, beginning of period at Dec. 31, 2019 | 1,803,999 | $ (78,229) | $ 1,828 | 1,491,004 | 2,193,997 | $ (78,229) | (536,949) | (1,345,881) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (22,522) | |||||||
Other comprehensive income, net of tax | (15,249) | (15,249) | ||||||
Ending balance (in shares) at Jun. 28, 2020 | 183,411,204 | |||||||
Balance, end of period at Jun. 28, 2020 | 1,623,705 | $ 1,834 | 1,494,259 | 2,031,329 | (552,198) | (1,351,519) | ||
Beginning balance (in shares) at Mar. 29, 2020 | 183,401,589 | |||||||
Balance, beginning of period at Mar. 29, 2020 | 1,691,983 | $ 1,834 | 1,495,141 | 2,126,646 | (579,290) | (1,352,348) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (92,217) | (92,217) | ||||||
Other comprehensive income, net of tax | 27,092 | 27,092 | ||||||
Dividends | (3,100) | (3,100) | ||||||
Repurchase of common stock | (85) | (85) | ||||||
Share-based compensation (in shares) | 9,615 | |||||||
Share-based compensation | 32 | (882) | 914 | |||||
Ending balance (in shares) at Jun. 28, 2020 | 183,411,204 | |||||||
Balance, end of period at Jun. 28, 2020 | $ 1,623,705 | $ 1,834 | $ 1,494,259 | $ 2,031,329 | $ (552,198) | $ (1,351,519) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 28, 2020 | Mar. 29, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends (in dollars per share) | $ 0.020 | $ 0.380 | $ 0.375 | $ 0.375 |
Basis of Presentation and Use o
Basis of Presentation and Use of Estimates | 6 Months Ended |
Jun. 28, 2020 | |
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 subsidiaries, all of which are wholly-owned (the Company), including the accounts of the group of companies the Company refers to as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). In addition, certain variable interest entities (VIEs) related to secured financing are consolidated as the Company is the primary beneficiary. All intercompany accounts and material intercompany transactions have been eliminated. The Company operates in two reportable segments: Motorcycles and Related Products (Motorcycles) and Financial Services. In the opinion of the Company's 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 June 28, 2020 and June 30, 2019, the Consolidated statements of operations for the three and six month periods then ended, the Consolidated statements of comprehensive (loss) income for the three and six month periods then ended, the Consolidated statements of cash flows for the six month periods then ended, and the Consolidated statements of shareholders' equity for the three and six month periods then ended. Certain information and disclosures normally included in complete financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and U.S. generally accepted accounting principles (U.S. GAAP) for interim financial reporting. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company's management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. During the first quarter of 2020, the outbreak of a novel strain of coronavirus (COVID-19) spread throughout the world, and it was recognized as a pandemic in March 2020. The COVID-19 pandemic has severely restricted the level of economic activity in the U.S. and around the world. The COVID-19 pandemic has led to supply chain destabilization, facility closures, workforce disruption, and volatility in the economy, and its full impact is not yet known. These impacts may continue to expand in scope, type and severity. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 28, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Standards Recently Adopted In July 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 On January 1, 2020, the Company remeasured the allowance for credit losses on financial instruments under the new accounting standard. The difference was recorded as a cumulative effect adjustment to Retained earnings , net of income taxes. The initial adoption of ASU 2016-13 did not impact the Company’s Consolidated statements of operations . The effect of adopting ASU 2016-13 on the Company’s Consolidated balance sheets was as follows (in thousands): December 31, Effect of Adoption January 1, ASSETS Finance receivables (a) $ 7,572,947 $ — $ 7,572,947 Allowance for credit losses on finance receivables (a) $ (198,581) $ (100,604) $ (299,185) Deferred income taxes $ 101,204 $ 22,484 $ 123,688 LIABILITIES AND SHAREHOLDERS' EQUITY Accrued liabilities $ 582,288 $ 109 $ 582,397 Retained earnings $ 2,193,997 $ (78,229) $ 2,115,768 (a) Reported as Finance receivables, net on the Consolidated balance sheets , allocated between current and non-current Financial Statement Comparability to Prior Periods – Beginning in 2020, under ASU 2016-13, the Company recognized full lifetime expected credit losses upon initial recognition of the associated financial instrument. Under ASU 2016-13, changes in the allowance for credit losses and the impact on the provision for credit losses will be affected by the size and composition of the Company's finance receivables portfolios, economic conditions, reasonable and supportable forecasts, and other appropriate factors at each reporting period. Prior periods have not been restated and will continue to be reported in accordance with the previously applicable U.S. GAAP, which generally required that a credit loss be incurred before it was recognized. As such, prior periods will not be comparable to the current period. Additional information on the Company’s finance receivables is discussed further in Note 8. 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 simplified 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 adopted ASU 2017-04 on January 1, 2020 on a prospective basis. The adoption of ASU 2017-04 did not have a material impact to the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). ASU 2018-13 amended ASC 820 to eliminate, modify, and add certain disclosure requirements for fair value measurements. The amendments were required to be applied retrospectively, with the exception of a few disclosure additions, which were to be applied on a prospective basis. The Company adopted ASC 2018-13 on January 1, 2020. The adoption of ASU 2018-13 did not have a material impact on the Company's disclosures. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) (ASU 2018-15). The new guidance requires a customer in a cloud computing arrangement that is a service contract to follow the existing internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. The Company adopted ASU 2018-15 on January 1, 2020 on a prospective basis. The adoption of ASU 2018-15 did not have a material impact on the Company's consolidated financial statements. Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (ASU No. 2019-12). The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance is effective for fiscal years beginning after December 15, 2020 and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2019-12. |
Revenue
Revenue | 6 Months Ended |
Jun. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 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. Disaggregated revenue by major source was as follows (in thousands): Three months ended Six months ended June 28, June 30, June 28, June 30, Motorcycles and Related Products Revenue: Motorcycles $ 446,738 $ 1,128,063 $ 1,346,103 $ 2,092,638 Parts & accessories 168,708 221,258 303,393 380,961 General merchandise 37,805 64,644 86,965 120,045 Licensing 4,903 9,911 12,932 18,488 Other 11,120 10,128 19,669 17,509 669,274 1,434,004 1,769,062 2,629,641 Financial Services Revenue: Interest income 168,261 167,077 338,262 326,881 Other 27,692 31,538 56,147 60,477 195,953 198,615 394,409 387,358 $ 865,227 $ 1,632,619 $ 2,163,471 $ 3,016,999 The Company maintains certain deferred revenue balances related to payments received at contract inception in advance of the Company’s performance under the contract and generally relates to the sale of Harley Owners Group® memberships and extended service plan contracts. Deferred revenue is recognized as revenue as the Company performs under the contract. Deferred revenue, included in Accrued liabilities and Other long-term liabilities on the Consolidated balance sheets , was as follows (in thousands): June 28, June 30, Balance, beginning of period $ 29,745 $ 29,055 Balance, end of period 31,143 32,568 |
Restructuring Activities
Restructuring Activities | 6 Months Ended |
Jun. 28, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses | Restructuring Activities Expenses associated with the Company's restructuring activities are included in Restructuring expense on the Consolidated Statements of Operations . 2020 Restructuring Activities – In the second quarter of 2020, the Company initiated restructuring activities including a workforce reduction and the termination of certain contracts. The workforce reduction will result in the elimination of approximately 700 positions globally, including the termination of approximately 500 employees. Restructuring expenses related to 2020 restructuring activities initiated in the second quarter, by segment, were as follows (in millions): Three and Six months ended June 28, 2020 Motorcycles and Related Products $ 41.0 Financial Services 0.9 $ 41.9 Subsequent to June 28, 2020, the Company initiated additional restructuring actions related to the termination of certain current and future products and facility changes. Based on the actions approved as of the issuance date of this Form 10-Q, the Company expects restructuring expenses of approximately $94 million in 2020 including $44 million related to actions initiated after June 28, 2020. This includes approximately $81 million and $13 million expected to be in incurred in the Motorcycles and Financial Services segments, respectively. Total expected restructuring expenses under the 2020 restructuring activities include approximately $30 million related to employee termination benefits, $38 million related to contract termination and other costs and $26 million related to non-current asset adjustments, including accelerated depreciation and other adjustments to the carrying value of non-current assets. Changes in accrued restructuring expenses for the 2020 restructuring activities initiated in the second quarter of 2020 which are included in Accrued liabilities on the Consolidated balance sheets were as follows (in thousands): Three and Six months ended June 28, 2020 Employee Termination Benefits Contract Terminations & Other Non-Current Asset Adjustments Total Balance, beginning of period $ — $ — $ — $ — Restructuring expense 25,321 14,270 2,358 41,949 Utilized – cash — — — — Utilized – non cash — — (2,358) (2,358) Foreign currency changes (23) — — (23) Balance, end of period $ 25,298 $ 14,270 $ — $ 39,568 2018 Restructuring Activities – In 2018, the Company initiated a plan to further improve its manufacturing operations and cost structure by commencing a multi-year manufacturing optimization plan which included the consolidation of its motorcycle assembly plant in Kansas City, Missouri, into its plant in York, Pennsylvania, and the closure of its wheel operations in Adelaide, Australia (Manufacturing Optimization Plan). The consolidation of operations included the elimination of approximately 800 jobs at the Kansas City facility and the addition of approximately 450 jobs at the York facility through 2019. The Adelaide facility closure included the elimination of approximately 90 jobs. Through December 31, 2019, the Motorcycles segment incurred cumulative restructuring expenses of $122.2 million and other costs related to temporary inefficiencies of $23.2 million under the Manufacturing Optimization Plan. The plant consolidation and closures were completed in 2019. No expenses were recorded under the Manufacturing Optimization Plan in the six months ended June 28, 2020, and no additional expenses are expected under the plan. In 2018, the Company initiated a reorganization of its workforce (Reorganization Plan), which was completed in 2019. As a result, approximately 70 employees left the Company on an involuntary basis. Changes in accrued restructuring expenses for the 2018 restructuring activities which are included in Accrued liabilities on the Consolidated balance sheets during 2019 were as follows (in thousands). The changes in accrued restructuring expenses for the 2018 restructuring activities during the three and six months ended June 28, 2020 were immaterial. Three months ended June 30, 2019 Manufacturing Optimization Plan Reorganization Plan Employee Termination Benefits Accelerated Depreciation Other Total Employee Termination Benefits Total Balance, beginning of period $ 22,401 $ — $ 187 $ 22,588 $ 1,051 $ 23,639 Restructuring expense (benefit) 8 5,586 4,830 10,424 (1) 10,423 Utilized – cash (12,734) — (4,294) (17,028) (882) (17,910) Utilized – non cash — (5,586) (696) (6,282) — (6,282) Foreign currency changes (14) — (4) (18) (24) (42) Balance, end of period $ 9,661 $ — $ 23 $ 9,684 $ 144 $ 9,828 Six months ended June 30, 2019 Manufacturing Optimization Plan Reorganization Plan Employee Termination Benefits Accelerated Depreciation Other Total Employee Termination Benefits Total Balance, beginning of period $ 24,958 $ — $ 79 $ 25,037 $ 3,461 $ 28,498 Restructuring expense (benefit) 17 13,965 10,466 24,448 (395) 24,053 Utilized – cash (15,334) — (9,822) (25,156) (2,896) (28,052) Utilized – non cash — (13,965) (696) (14,661) — (14,661) Foreign currency changes 20 — (4) 16 (26) (10) Balance, end of period $ 9,661 $ — $ 23 $ 9,684 $ 144 $ 9,828 The Company incurred incremental Motorcycles and Related Products cost of goods sold |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company’s effective income tax rate for the six months ended June 28, 2020 was 3.7% compared to 24.1% for the six months ended June 30, 2019. The decrease in the 2020 effective income tax rate as compared to 2019 was due primarily to discrete income tax expenses recorded during the six months ended June 28, 2020, including adjustments related to the reassessment of the realizability of certain deferred tax assets, which reduced the Company's income tax benefit for the period. The effective income tax rate for the six months ended June 28, 2020 was determined based on the Company's current projection for full-year 2020 financial results. Given uncertainty surrounding the impact of the COVID-19 pandemic, the Company's projection for full-year 2020 financial results, in total and across its numerous tax jurisdictions, may evolve and ultimately impact the Company's 2020 full-year effective income tax rate. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 28, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computation of basic and diluted earnings per share was as follows (in thousands, except per share amounts): Three months ended Six months ended June 28, June 30, June 28, June 30, Net (loss) income $ (92,217) $ 195,631 $ (22,522) $ 323,576 Basic weighted-average shares outstanding 153,199 158,813 153,103 159,061 Effect of dilutive securities – employee stock compensation plan — 612 — 664 Diluted weighted-average shares outstanding 153,199 159,425 153,103 159,725 (Net loss) earnings per share: Basic $ (0.60) $ 1.23 $ (0.15) $ 2.03 Diluted $ (0.60) $ 1.23 $ (0.15) $ 2.03 Shares of common stock related to share-based compensation that were not included in the effect of dilutive securities because the effect would have been anti-dilutive include 2.4 million and 1.2 million shares for the three months ended June 28, 2020 and June 30, 2019, respectively, and 2.4 million and 1.2 million shares for the six months ended June 28, 2020 and June 30, 2019, respectively. |
Additional Balance Sheet and Ca
Additional Balance Sheet and Cash Flow Information | 6 Months Ended |
Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Balance Sheet and Cash Flow Information | Additional Balance Sheet and Cash Flow Information Investments in Marketable Securities – The Company’s investments in marketable securities consisted of the following (in thousands): June 28, December 31, June 30, Mutual funds $ 48,725 $ 52,575 $ 51,543 Mutual funds, included in Other long-term assets on the Consolidated balance sheets , are carried at fair value with gains and losses recorded in net income. Mutual funds are held to support certain deferred compensation obligations. Inventories, net – Substantially all inventories located in the U.S. are valued using the last-in, first-out (LIFO) method. Other inventories are valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Inventories, net consisted of the following (in thousands): June 28, December 31, June 30, Raw materials and work in process $ 199,300 $ 235,433 $ 161,828 Motorcycle finished goods 180,895 280,306 218,069 Parts & accessories and general merchandise 105,570 144,258 149,352 Inventory at lower of FIFO cost or net realizable value 485,765 659,997 529,249 Excess of FIFO over LIFO cost (56,426) (56,426) (58,639) $ 429,339 $ 603,571 $ 470,610 Operating Cash Flow – The reconciliation of Net (loss) income to Net cash provided by operating activities was as follows (in thousands): Six months ended June 28, June 30, Cash flows from operating activities: Net (loss) income $ (22,522) $ 323,576 Adjustments to reconcile Net (loss) income to Net cash provided by operating activities: Depreciation and amortization 95,454 125,386 Amortization of deferred loan origination costs 33,796 38,036 Amortization of financing origination fees 6,661 4,522 Provision for long-term employee benefits 15,704 6,936 Employee benefit plan contributions and payments (3,678) (3,637) Stock compensation expense 4,568 17,285 Net change in wholesale finance receivables related to sales 166,049 (167,594) Provision for credit losses 170,598 60,874 Deferred income taxes (19,461) 5,368 Other, net (9,294) (10,477) Changes in current assets and liabilities: Accounts receivable, net (15,747) (17,592) Finance receivables – accrued interest and other (2,985) (4,963) Inventories, net 163,700 88,146 Accounts payable and accrued liabilities 10,664 34,370 Derivative financial instruments 1,538 4,352 Other 15,158 (8,356) 632,725 172,656 Net cash provided by operating activities $ 610,203 $ 496,232 |
Finance Receivables
Finance Receivables | 6 Months Ended |
Jun. 28, 2020 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables The Company provides retail financial services to customers of its independent dealers in the U.S. and Canada. The origination of retail loans is a separate and distinct transaction between the Company and the retail customer, unrelated to the Company’s sale of product to its dealers. Retail finance receivables consist of secured promissory notes and secured installment sales contracts and are primarily related to independent dealer sales of motorcycles to retail customers. The Company holds either titles or liens on titles to vehicles financed by promissory notes and installment sales contracts. The Company offers wholesale financing to its independent dealers in the U.S. and Canada. Wholesale finance receivables are related primarily to the Company's sale of motorcycles and related parts and accessories to dealers. Wholesale loans to dealers are generally secured by financed inventory or property. Finance receivables, net , consisted of the following (in thousands): June 28, December 31, June 30, Retail finance receivables $ 6,520,919 $ 6,416,428 $ 6,549,707 Wholesale finance receivables 870,087 1,156,519 1,239,694 7,391,006 7,572,947 7,789,401 Allowance for credit losses (411,015) (198,581) (194,996) $ 6,979,991 $ 7,374,366 $ 7,594,405 On January 1, 2020, the Company adopted ASU 2016-13, which requires an entity to recognize expected lifetime losses on finance receivables upon origination. The allowance for credit losses as of June 28, 2020 represents the Company’s estimate of lifetime losses for its finance receivables. Prior to the adoption of ASU 2016-13, the Company maintained an allowance for credit losses based on the Company’s estimate of probable losses inherent in the finance receivable portfolio as of the balance sheet date. Under ASU 2016-13, the Company’s finance receivables are reported at amortized cost, net of the allowance for credit losses. Amortized cost includes the principal outstanding, accrued interest, and deferred loan fees and costs. Based on differences in the nature of the finance receivables and the underlying methodology for calculating the allowance for loan losses, the Company segments its finance receivables into the retail and wholesale portfolios. The Company further disaggregates each portfolio by credit quality indicators. As the credit risk varies between the retail and wholesale portfolios, the Company utilizes different credit quality indicators for each portfolio. Prior to the adoption of ASU 2016-13, the Company’s investment in finance receivables included the same components as the amortized cost under the new accounting guidance. The retail portfolio primarily consists of a large number of small balance, homogeneous finance receivables. The Company performs a collective evaluation of the adequacy of the retail allowance for credit losses. For periods after January 1, 2020, the Company utilizes a vintage-based loss forecast methodology that includes decompositions for probability of default, exposure at default, attrition rate, and recovery balance rate. Reasonable and supportable economic forecasts for a two-year period are incorporated into the methodology to reflect the estimated impact of changes in future economic conditions, such as unemployment rates, household obligations or other relevant factors, over the expected life of the retail portfolio. For periods beyond the Company’s reasonable and supportable forecasts, the Company reverts to its average historical loss experience for a three-year period using a mean-reversion process. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or term as well as other relevant factors. For periods prior to January 1, 2020, the Company performed a periodic and systematic collective evaluation of the adequacy of the retail allowance for credit losses. The Company utilized loss forecast models which considered 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. 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 to determine whether the loans share similar risk characteristics. The Company classifies loans that do not share risk characteristics as Non-Performing and evaluates these loans individually. A specific allowance for credit losses is established for these finance receivables when foreclosure is probable. The specific allowance is determined based on amortized cost of the related finance receivable and the estimated fair value of the collateral, less selling costs and the cash that the Company expects to receive. Finance receivables in the wholesale portfolio not individually assessed are aggregated, based on similar risk characteristics, according to the Company’s internal risk rating system and measured collectively. For periods after January 1, 2020, 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, reasonable and supportable economic forecasts, and the value of the underlying collateral and expected recoveries. For periods prior to January 1, 2020, the related allowance for credit losses was 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. Changes in the Company’s outlook on economic conditions impacted the retail and wholesale estimates for expected credit losses at June 28, 2020. As part of the January 1, 2020 adoption of ASU 2016-13, the Company expected to be operating in a negative economic environment throughout 2020, the Company’s economic forecast worsened during the first quarter of 2020 as a result of the impact of the COVID-19 pandemic. During the second quarter of 2020, the Company’s outlook on economic conditions further deteriorated driven by the impact of the COVID-19 pandemic with recessionary conditions continuing to restrain the U.S. economy, including continued high unemployment rates and a slow U.S. Gross Domestic Product (GDP) recovery. The historical experience incorporated into the portfolio-specific models does not fully reflect the Company's comprehensive expectations regarding the future. As such, the Company incorporated qualitative factors to produce reasonable and supportable allowance balances. These factors include motorcycle recovery value considerations, delinquency adjustments associated with COVID-19 payment extensions and specific problem loan trends. Due to the use of projections and assumptions in estimating the losses, the amount of losses actually incurred by the Company in either portfolio could differ from the amounts estimated. Further, the Company’s allowance for credit losses incorporates management’s expectations surrounding the economic forecasts and known conditions at the balance sheet date. The Company’s expectations surrounding its economic forecasts may change in future periods as additional information becomes available. Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands): Three months ended June 28, 2020 Retail Wholesale Total Balance, beginning of period $ 311,368 $ 24,128 $ 335,496 Provision for credit losses 94,050 (2,871) 91,179 Charge-offs (29,859) — (29,859) Recoveries 14,199 — 14,199 Balance, end of period $ 389,758 $ 21,257 $ 411,015 Three months ended June 30, 2019 Retail Wholesale Total Balance, beginning of period $ 181,426 $ 9,446 $ 190,872 Provision for credit losses 27,555 (1,172) 26,383 Charge-offs (35,741) — (35,741) Recoveries 13,482 — 13,482 Balance, end of period $ 186,722 $ 8,274 $ 194,996 Six months ended June 28, 2020 Retail Wholesale Total Balance, beginning of period $ 188,501 $ 10,080 $ 198,581 Cumulative effect of change in accounting (a) 95,558 5,046 100,604 Provision for credit losses 164,467 6,131 170,598 Charge-offs (85,074) — (85,074) Recoveries 26,306 — 26,306 Balance, end of period $ 389,758 $ 21,257 $ 411,015 Six months ended June 30, 2019 Retail Wholesale Total Balance, beginning of period $ 182,098 $ 7,787 $ 189,885 Provision for credit losses 60,387 487 60,874 Charge-offs (80,462) — (80,462) Recoveries 24,699 — 24,699 Balance, end of period $ 186,722 $ 8,274 $ 194,996 (a) On January 1, 2020, the Company adopted ASU 2016-13 and increased the allowance for loan loss through Retained earnings , net of income taxes, to establish an allowance that represents expected lifetime credit losses on the finance receivable portfolios at date of adoption. The Company manages retail credit risk through its credit approval process 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. For the Company’s U.S. and Canadian retail finance receivables, the Company determines the credit quality indicator for each loan at origination and does not update the credit quality indicator subsequent to the loan origination date. As loan performance by credit quality indicator differs between the U.S. and Canadian retail loans, the Company’s credit quality indicators vary for the two portfolios. For U.S. retail finance receivables, those with a FICO score of 740 or above at origination are generally considered super prime, loans with a FICO score between 640 and 740 are generally categorized as prime, and loans with FICO score below 640 are generally considered sub-prime. For Canadian retail finance receivables, those with a FICO score of 700 or above at origination are generally considered super prime, loans with a FICO score between 620 and 700 are generally categorized as prime, and loans with FICO score below 620 are generally considered sub-prime. The amortized cost of the Company's U.S. and Canadian retail finance receivables by credit quality indicator and vintage, as of June 28, 2020, was as follows (in thousands): 2020 2019 2018 2017 2016 2015 & Prior Total U.S. Retail: Super prime $ 486,327 $ 737,419 $ 474,280 $ 234,239 $ 114,496 $ 54,661 $ 2,101,422 Prime 670,363 973,046 644,846 388,039 223,960 131,367 3,031,621 Sub-prime 271,843 360,812 217,720 138,998 95,630 79,754 1,164,757 1,428,533 2,071,277 1,336,846 761,276 434,086 265,782 6,297,800 Canadian Retail: Super prime 34,715 57,818 35,786 19,265 8,508 3,687 159,779 Prime 11,548 15,741 11,598 7,932 4,093 3,187 54,099 Sub-prime 1,970 2,720 1,881 1,289 782 599 9,241 48,233 76,279 49,265 28,486 13,383 7,473 223,119 $ 1,476,766 $ 2,147,556 $ 1,386,111 $ 789,762 $ 447,469 $ 273,255 $ 6,520,919 Prior to the adoption of ASU 2016-13, retail loans with a FICO score of 640 or above at origination were generally considered prime, and loans with a FICO score below 640 were generally considered sub-prime. These credit quality indicators were determined at the time of loan origination and were not updated subsequent to the loan origination date. The recorded investment in retail finance receivables, by credit quality indicator, was as follows (in thousands): December 31, June 30, Prime $ 5,278,093 $ 5,372,712 Sub-prime 1,138,335 1,176,995 $ 6,416,428 $ 6,549,707 The Company's credit risk on the wholesale portfolio is different from that of the retail portfolio. Whereas the retail portfolio represents a relatively homogeneous pool of retail finance receivables that exhibit more consistent loss patterns, the wholesale portfolio exposures are less consistent. The Company utilizes an internal credit risk rating system to manage credit risk exposure consistently across wholesale borrowers and individually evaluates credit risk factors for each borrower. The Company uses the following internal credit quality indicators, based on an internal risk rating system, listed from highest level of risk to lowest level of risk for the wholesale portfolio: Doubtful, Substandard, Special Mention, Medium Risk and Low Risk. Based upon the Company’s review, the dealers classified in the Doubtful category are the dealers with the greatest likelihood of being charged-off, while the dealers classified as Low Risk are least likely to be charged-off. The Company classifies dealers identified as those in which foreclosure is probable as Non-Performing. 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 amortized cost of wholesale financial receivables, by credit quality indicator and vintage, was as follows as of June 28, 2020 (in thousands): 2020 2019 2018 2017 2016 2015 & Prior Total Non-Performing $ — $ 2,376 $ 1,774 $ 107 $ 25 $ 43 $ 4,325 Doubtful 579 1,009 188 — — — 1,776 Substandard 944 966 53 — — — 1,963 Special Mention 5,345 5,281 564 — — 1,805 12,995 Medium Risk 6,690 3,587 301 63 — — 10,641 Low Risk 517,708 273,408 29,301 8,965 6,006 2,999 838,387 $ 531,266 $ 286,627 $ 32,181 $ 9,135 $ 6,031 $ 4,847 $ 870,087 Dealer risk rating categories prior to the adoption of ASU 2016-13 were consistent with the current risk rating categories with the exception of the Non-Performing category for dealers identified as those in which foreclosure is probable, which was established in connection with the January 1, 2020 adoption of the new accounting guidance. The recorded investment in wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands): December 31, June 30, Doubtful $ 11,664 $ 6,850 Substandard 6,122 7,643 Special Mention 16,125 12,642 Medium Risk 16,800 6,170 Low Risk 1,105,808 1,206,389 $ 1,156,519 $ 1,239,694 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. The Company reverses accrued interest related to charged-off accounts against interest income when the account is charged-off. The Company reversed $5.0 million and $11.4 million of accrued interest against interest income during the three and six months ended June 28, 2020, respectively. All retail finance receivables accrue interest until either collected or charged-off. Due to the timely write-off of accrued interest, the Company made the election provided under ASU 2016-13 to exclude accrued interest from its allowance for credit losses. Accordingly, as of June 28, 2020, December 31, 2019 and June 30, 2019, all retail finance receivables were accounted for as interest-earning receivables, of which $16.0 million, $48.0 million and $30.4 million, re spectively, were 90 days or more past due. Wholesale finance receivables are delinquent if the minimum payment is not received by the contractual due date. Wholesale finance receivables are written down once the Company determines that the specific borrower does not have the ability to repay the loan in full. Interest continues to accrue on past due finance receivables until the date the Company determines that foreclosure is probable, 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. Once an account is charged-off, the Company will reverse the associated accrued interest against interest income. As the Company follows a non-accrual policy for interest, the allowance for credit losses excludes accrued interest for the wholesale portfolio. There were no charged-off accounts during the three and six months ended June 28, 2020. As such, the Company did not reverse any accrued interest in that period. At June 28, 2020, December 31, 2019 and June 30, 2019, $3.5 million, $2.6 million, and $2.1 million, respectively, of wholesale finance receivables were 90 days or more past due and accruing interest. Additional information related to the wholesale finance receivables on non-accrual status was as follows (in thousands): Amortized Cost Amortized Cost Interest Income January 1, 2020 June 28, 2020 Recognized Wholesale: No related allowance recorded $ — $ — $ — Related allowance recorded 4,994 4,325 — $ 4,994 $ 4,325 $ — The aging analysis of finance receivables was as follows (in thousands): June 28, 2020 Current 31-60 Days 61-90 Days Greater than Total Total Retail finance receivables $ 6,425,078 $ 63,190 $ 16,631 $ 16,020 $ 95,841 $ 6,520,919 Wholesale finance receivables 864,911 1,261 413 3,502 5,176 870,087 $ 7,289,989 $ 64,451 $ 17,044 $ 19,522 $ 101,017 $ 7,391,006 December 31, 2019 Current 31-60 Days 61-90 Days Greater than Total Total Retail finance receivables $ 6,171,930 $ 142,479 $ 53,995 $ 48,024 $ 244,498 $ 6,416,428 Wholesale finance receivables 1,152,416 1,145 384 2,574 4,103 1,156,519 $ 7,324,346 $ 143,624 $ 54,379 $ 50,598 $ 248,601 $ 7,572,947 June 30, 2019 Current 31-60 Days 61-90 Days Greater than Total Total Retail finance receivables $ 6,359,499 $ 119,770 $ 40,015 $ 30,423 $ 190,208 $ 6,549,707 Wholesale finance receivables 1,236,747 577 320 2,050 2,947 1,239,694 $ 7,596,246 $ 120,347 $ 40,335 $ 32,473 $ 193,155 $ 7,789,401 Prior to the Company's January 1, 2020 adoption of ASU 2016-13, finance receivables were considered impaired when management determined it was probable that the Company would not be able to collect all amounts due according to the terms of the loan agreement. Portions of the allowance for credit losses were established to cover estimated losses on finance receivables specifically identified for impairment. The unspecified portion of the allowance for credit losses covered estimated losses on finance receivables which were collectively reviewed for impairment. The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that were individually evaluated for impairment and those that were collectively evaluated for impairment, were as follows (in thousands): December 31, 2019 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ 2,100 $ 2,100 Collectively evaluated for impairment 188,501 7,980 196,481 $ 188,501 $ 10,080 $ 198,581 Finance receivables, ending balance: Individually evaluated for impairment $ — $ 4,601 $ 4,601 Collectively evaluated for impairment 6,416,428 1,151,918 7,568,346 $ 6,416,428 $ 1,156,519 $ 7,572,947 June 30, 2019 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 186,722 8,274 194,996 $ 186,722 $ 8,274 $ 194,996 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 6,549,707 1,239,694 7,789,401 $ 6,549,707 $ 1,239,694 $ 7,789,401 At June 30, 2019, there were no wholesale receivables that were individually deemed to be impaired under ASC Topic 310, Receivables. Additional information related to the wholesale finance receivables that were individually deemed to be impaired at December 31, 2019 included the following (in thousands): Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Wholesale: No related allowance recorded $ — $ — $ — $ — $ — Related allowance recorded 4,994 4,601 2,100 4,976 — $ 4,994 $ 4,601 $ 2,100 $ 4,976 $ — Retail finance receivables were not evaluated individually for impairment prior to charge-off at December 31, 2019 or June 30, 2019. 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 troubled restructured finance receivables are not significant as of June 28, 2020, December 31, 2019 and June 30, 2019. Additionally, in certain situations, the Company may offer short-term adjustments to customer payment due dates without affecting the associated interest rate or loan term. During the second quarter of 2020, the Company offered an increased amount of payment due date extensions on eligible retail loans to help retail customers get through short-term financial difficulties associated with the COVID-19 pandemic. |
Goodwill, Intangible and Long-L
Goodwill, Intangible and Long-Lived Assets | 6 Months Ended |
Jun. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Intangible and Long-Lived Assets | Goodwill, Intangible and Long-Lived AssetsGoodwill is tested for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company also periodically evaluates whether there are indicators that the carrying value of long-lived assets to be held and used may not be recoverable. The Company has assessed the changes in events and circumstances related to the COVID-19 pandemic and determined there was no impairment of goodwill or long-lived assets during the three and six months ended June 28, 2020.On March 4, 2019, the Company purchased certain assets and liabilities of StaCyc, Inc. for total consideration of $14.9 million including cash paid at acquisition of $7.0 million. The primary assets acquired and included in the Motorcycles segment were goodwill of $9.5 million, which was tax deductible, and intangible assets of $5.3 million. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 28, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities The Company is exposed to risks from fluctuations in foreign currency exchange rates, interest rates and commodity prices. To reduce its exposure to such risks, the Company selectively uses derivative financial instruments. All derivative transactions are authorized and executed pursuant to regularly reviewed policies and procedures which prohibit the use of financial instruments for speculative trading purposes. The Company sells products in foreign currencies and utilizes foreign currency exchange contracts to mitigate the effects of foreign currency exchange rate fluctuations related to the Euro, Australian dollar, Japanese yen, Brazilian real, Canadian dollar, Mexican peso, Chinese yuan, Thai baht, Indian rupee, and Pound sterling. The Company's foreign currency exchange contracts generally have maturities of less than one year. The Company utilizes commodity contracts to mitigate the effects of commodity price fluctuations related to metals and fuel consumed in the Company’s motorcycle operations. The Company's commodity contracts generally have maturities of less than one year. The Company periodically utilizes treasury rate lock contracts to fix the interest rate on a portion of the principal related to an anticipated issuance of long-term debt, interest rate swaps to reduce the impact of fluctuations in interest rates on medium-term notes with floating interest rates, and cross-currency swaps to mitigate the effect of foreign currency exchange rate fluctuations on foreign currency-denominated debt. The Company also utilizes interest rate caps to facilitate certain asset-backed securitization transactions. All derivative financial instruments are recognized on the Consolidated balance sheets at fair value. In accordance with ASC Topic 815, Derivatives and Hedging (ASC Topic 815), the accounting for changes in the fair value of a derivative financial instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. Changes in the fair value of derivative financial instruments that are designated as cash flow hedges are initially recorded in other comprehensive income (loss) (OCI) and subsequently reclassified into earnings when the hedged item affects income. The Company assesses, both at the inception of each hedge and on an ongoing basis, whether the derivative financial instruments that are designated as cash flow hedging transactions are highly effective in offsetting changes in cash flows of the hedged items. No component of a designated hedging derivative financial instrument’s gain or loss is excluded from the assessment of hedge effectiveness. Derivative financial instruments not designated as hedges are not speculative and are used to manage the Company’s exposure to foreign currency, commodity risks, and interest rate risks. Changes in the fair value of derivative financial instruments not designated as hedging instruments are recorded directly in income. The notional and fair values of the Company's derivative financial instruments under ASC Topic 815 were as follows (in thousands): Derivative Financial Instruments June 28, 2020 December 31, 2019 June 30, 2019 Notional Other Current Assets Accrued Liabilities Notional Other Current Assets Accrued Liabilities Notional Other Current Assets Accrued Liabilities Foreign currency contracts $ 359,754 $ 3,108 $ 1,537 $ 434,321 $ 3,505 $ 3,661 $ 495,736 $ 6,638 $ 3,490 Commodity contracts 581 — 49 616 — 80 627 — 69 Cross-currency swap 1,367,460 24,288 29,975 660,780 8,326 — — — — Interest rate swaps 450,000 — 9,120 900,000 — 9,181 900,000 — 11,920 $ 2,177,795 $ 27,396 $ 40,681 $ 1,995,717 $ 11,831 $ 12,922 $ 1,396,363 $ 6,638 $ 15,479 Derivative Financial Instruments June 28, 2020 December 31, 2019 June 30, 2019 Notional Other Current Assets Accrued Liabilities Notional Other Current Assets Accrued Liabilities Notional Other Current Assets Accrued Liabilities Foreign currency contracts $ 173,805 $ 1,295 $ 247 $ 220,139 $ 721 $ 865 $ 317,344 $ 273 $ 1,816 Commodity contracts 7,401 214 491 8,270 95 147 7,710 5 260 Interest rate cap 1,277,389 152 — 375,980 2 — 481,509 4 — $ 1,458,595 $ 1,661 $ 738 $ 604,389 $ 818 $ 1,012 $ 806,563 $ 282 $ 2,076 The amounts of gains and losses related to derivative financial instruments designated as cash flow hedges were as follows (in thousands): Gain/(Loss) Gain/(Loss) Three months ended Six months ended Three months ended Six months ended June 28, June 30, June 28, June 30, June 28, June 30, June 28, June 30, Foreign currency contracts $ (4,062) $ (2,865) $ 12,837 $ 1,287 $ 5,305 $ 7,668 $ 8,705 $ 10,121 Commodity contracts (28) (70) (157) (40) (53) (7) (188) (17) Cross-currency swap 35,595 — (14,014) — 36,915 — 24,009 — Treasury rate locks — — — — (122) (123) (246) (245) Interest rate swaps (1,176) (5,856) (6,509) (8,861) (3,453) (830) (6,569) (1,436) $ 30,329 $ (8,791) $ (7,843) $ (7,614) $ 38,592 $ 6,708 $ 25,711 $ 8,423 The location and amount of gains and losses recognized in income related to derivative financial instruments designated as cash flow hedges were as follows (in thousands): Motorcycles Selling, administrative & Interest expense Financial Services interest expense Three months ended June 28, 2020 Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded $ 561,646 $ 224,365 $ 7,769 $ 62,187 Gain/(loss) reclassified from AOCL into income: Foreign currency contracts $ 5,305 $ — $ — $ — Commodity contracts $ (53) $ — $ — $ — Cross-currency swap $ — $ 36,915 $ — $ — Treasury rate locks $ — $ — $ (90) $ (32) Interest rate swaps $ — $ — $ — $ (3,453) Three months ended June 30, 2019 Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded $ 979,266 $ 307,617 $ 7,784 $ 52,673 Gain/(loss) reclassified from AOCL into income: Foreign currency contracts $ 7,668 $ — $ — $ — Commodity contracts $ (7) $ — $ — $ — Treasury rate locks $ — $ — $ (91) $ (32) Interest rate swaps $ — $ — $ — $ (830) Motorcycles Selling, administrative & Interest expense Financial Services interest expense Six months ended June 28, 2020 Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded $ 1,342,514 $ 502,336 $ 15,524 $ 114,660 Gain/(loss) reclassified from AOCL into income: Foreign currency contracts $ 8,705 $ — $ — $ — Commodity contracts $ (188) $ — $ — $ — Cross-currency swaps $ — $ 24,009 $ — $ — Treasury rate locks $ — $ — $ (181) $ (65) Interest rate swaps $ — $ — $ — $ (6,569) Six months ended June 30, 2019 Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded $ 1,827,464 $ 576,242 $ 15,515 $ 104,997 Gain/(loss) reclassified from AOCL into income: Foreign currency contracts $ 10,121 $ — $ — $ — Commodity contracts $ (17) $ — $ — $ — Treasury rate locks $ — $ — $ (181) $ (64) Interest rate swaps $ — $ — $ — $ (1,436) The amount of net loss included in Accumulated other comprehensive loss (AOCL) at June 28, 2020, estimated to be reclassified into income over the next 12 months was $16.8 million. The amount of gains and losses recognized in income related to derivative financial instruments not designated as hedging instruments were as follows (in thousands). Gains and losses on foreign currency contracts and commodity contracts were recorded in Motorcycles cost of goods sold and the interest rate cap was recorded in Financial Services interest expense. Amount of Gain/(Loss) Three months ended Six months ended June 28, June 30, June 28, June 30, Foreign currency contracts $ (522) $ (1,004) $ 1,672 $ (117) Commodity contracts 558 (310) (993) 7 Interest rate cap (427) (141) (427) (141) $ (391) $ (1,455) $ 252 $ (251) The Company is exposed to credit loss risk in the event of non-performance by counterparties to its derivative financial instruments. Although no assurances can be given, the Company does not expect any of the counterparties to its derivative financial instruments to fail to meet their 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 their position. |
Leases
Leases | 6 Months Ended |
Jun. 28, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company determines if an arrangement is or contains a lease at contract inception. Right-of-use (ROU) assets related to the Company's leases are recorded in Lease assets and lease liabilities are recorded in Accrued liabilities and Lease liabilities on the Consolidated balance sheets . ROU assets represent the Company’s right to use an underlying asset over the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. The ROU asset also includes prepaid lease payments and initial direct costs and is reduced for lease incentives paid by the lessor. The discount rate used to determine the present value is generally the Company's incremental borrowing rate because the implicit rate in the lease is not readily determinable. The lease term used to calculate the ROU asset and lease liabilities includes periods covered by options to extend or terminate when the Company is reasonably certain the lease term will include these optional periods. In accordance with ASC Topic 842, Leases (ASC Topic 842), the Company elected the short-term lease practical expedient that allows entities to recognize lease payments on a straight-line basis over the lease term for leases with a term of 12 months or less. The Company has also elected the practical expedient under ASC Topic 842 allowing entities to not separate non-lease components from lease components, but instead account for such components as a single lease component for all leases except leases involving assets operated by a third-party. The Company has operating lease arrangements for sales and administrative offices, manufacturing and distribution facilities, product testing facilities, equipment and vehicles. The Company’s leases have remaining lease terms ranging from 1 to 12 years, some of which include options to extend the lease term for periods generally not greater than 5 years and some of which include options to terminate the leases within 1 year. Certain leases also include options to purchase the leased asset. The Company's leases do not contain any material residual value guarantees or material restrictive covenants. Operating lease expense for the three months ended June 28, 2020 and June 30, 2019 was $6.5 million and $6.4 million, respectively, and $13.8 million and $12.7 million for the six months ended June 28, 2020 and June 30, 2019, respectively. This includes variable lease costs related to leases involving assets operated by a third party of approximately $1.3 million and $2.0 million for the three months ended June 28, 2020 and June 30, 2019, respectively, and $3.2 million and $3.2 million for the six months ended June 28, 2020 and June 30, 2019, respectively. Other variable and short-term lease costs were not material. Balance sheet information related to the Company's leases was as follows (in thousands): June 28, December 31, June 30, Lease assets $ 53,031 $ 61,618 $ 54,913 Accrued liabilities $ 18,154 $ 19,013 $ 18,133 Lease liabilities 36,394 44,447 38,365 $ 54,548 $ 63,460 $ 56,498 Future maturities of the Company's operating lease liabilities as of June 28, 2020 were as follows (in thousands): Operating Leases 2020 $ 10,146 2021 18,388 2022 13,410 2023 6,543 2024 4,556 Thereafter 4,825 Future lease payments 57,868 Present value discount (3,320) Lease liabilities $ 54,548 Other lease information surrounding the Company's operating leases was as follows (dollars in thousands): Three months ended Six months ended June 28, June 30, June 28, June 30, Cash outflows for amounts included in the measurement of lease liabilities $ 5,242 $ 4,510 $ 10,619 $ 9,871 Right-of-use assets obtained in exchange for lease obligations $ 1,096 $ 3,964 $ 1,653 $ 4,262 June 28, December 31, June 30, Weighted-average remaining lease term (in years) 4.03 4.68 4.44 Weighted-average discount rate 3.3 % 2.1 % 3.2 % |
Debt
Debt | 6 Months Ended |
Jun. 28, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt with a contractual term less than 12 months is generally classified as short-term and consisted of the following (in thousands): June 28, December 31, June 30, Unsecured commercial paper $ 1,397,388 $ 571,995 $ 405,695 364-day credit facility borrowings 150,000 — — $ 1,547,388 $ 571,995 $ 405,695 Debt with a contractual term greater than 12 months is generally classified as long-term and consisted of the following (in thousands): June 28, December 31, June 30, Secured debt: Asset-backed Canadian commercial paper conduit facility $ 144,661 $ 114,693 $ 148,740 Asset-backed U.S. commercial paper conduit facilities 540,840 490,427 464,136 Asset-backed securitization debt 2,472,529 766,965 1,006,410 Unamortized discounts and debt issuance costs (11,422) (2,573) (3,541) 3,146,608 1,369,512 1,615,745 Unsecured notes (at par value): Medium-term notes: Due in 2019, issued September 2014 2.40 % — — 600,000 Due in 2020, issued February 2015 2.15 % — 600,000 600,000 Due in 2020, issued May 2018 LIBOR + 0.50% — 450,000 450,000 Due in 2020, issued March 2017 2.40 % — 350,000 350,000 Due in 2021, issued January 2016 2.85 % 600,000 600,000 600,000 Due in 2021, issued November 2018 LIBOR + 0.94% 450,000 450,000 450,000 Due in 2021, issued May 2018 3.55 % 350,000 350,000 350,000 Due in 2022, issued February 2019 4.05 % 550,000 550,000 550,000 Due in 2022, issued June 2017 2.55 % 400,000 400,000 400,000 Due in 2023, issued February 2018 3.35 % 350,000 350,000 350,000 Due in 2023, issued May 2020 (a) 4.94 % 729,885 — — Due in 2024, issued November 2019 (b) 3.14 % 673,740 672,936 — Due in 2025, issued June 2020 3.35 % 700,000 — — Unamortized discounts and debt issuance costs (19,332) (12,809) (12,340) 4,784,293 4,760,127 4,687,660 June 28, December 31, June 30, Senior notes: Due in 2025, issued July 2015 3.50 % 450,000 450,000 450,000 Due in 2045, issued July 2015 4.625 % 300,000 300,000 300,000 Unamortized discounts and debt issuance costs (6,365) (6,704) (7,041) 743,635 743,296 742,959 5,527,928 5,503,423 5,430,619 Long-term debt 8,674,536 6,872,935 7,046,364 Current portion of long-term debt, net (2,186,037) (1,748,109) (2,396,188) Long-term debt, net $ 6,488,499 $ 5,124,826 $ 4,650,176 (a) Euro denominated, €650.0 million par value remeasured to U.S. dollar at June 28, 2020 (b) Euro denominated, €600.0 million par value remeasured to U.S. dollar at June 28, 2020 and December 31, 2019, respectively |
Asset-Backed Financing
Asset-Backed Financing | 6 Months Ended |
Jun. 28, 2020 | |
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 (ASC Topic 860). To achieve a sale for accounting purposes, the assets being transferred must be legally isolated, not be constrained by restrictions from further transfer, and be deemed to be beyond the Company’s control. If the Company does not meet all of these criteria for sale accounting, then the transaction is accounted for as a secured borrowing and is referred to as an on-balance sheet asset-backed financing. If the Company meets all three of the sale criteria above, the transaction is recorded as a sale for accounting purposes and is referred to as an off-balance sheet asset-backed financing. Upon sale, the retail motorcycle finance receivables are removed from the Company’s Consolidated balance sheets and a gain or loss is recognized for the difference between the cash proceeds received, the assets derecognized, and the liabilities recognized as part of the transaction. The gain or loss on sale is included in Financial Services revenue on the Consolidated statements of operations . 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 assets and liabilities related to the on-balance sheet asset-backed financings included in the Consolidated balance sheets were as follows (in thousands): June 28, 2020 Finance receivables Allowance for credit losses Restricted cash Other assets Total assets Asset-backed debt On-balance sheet assets and liabilities: Consolidated VIEs: Asset-backed securitizations $ 2,780,217 $ (166,635) $ 161,257 $ 1,235 $ 2,776,074 $ 2,461,107 Asset-backed U.S. commercial paper conduit facilities 584,153 (34,938) 38,491 1,195 588,901 540,840 Unconsolidated VIEs: Asset-backed Canadian commercial paper conduit facility 220,286 (7,669) 11,201 142 223,960 144,661 $ 3,584,656 $ (209,242) $ 210,949 $ 2,572 $ 3,588,935 $ 3,146,608 December 31, 2019 Finance receivables Allowance for credit losses Restricted cash Other assets Total assets Asset-backed debt On-balance sheet assets and liabilities: Consolidated VIEs: Asset-backed securitizations $ 826,047 $ (24,935) $ 36,037 $ 778 $ 837,927 $ 764,392 Asset-backed U.S. commercial paper conduit facilities 533,587 (16,076) 27,775 1,642 546,928 490,427 Unconsolidated VIEs: Asset-backed Canadian commercial paper conduit facility 232,699 (2,786) 7,686 296 237,895 114,693 $ 1,592,333 $ (43,797) $ 71,498 $ 2,716 $ 1,622,750 $ 1,369,512 June 30, 2019 Finance receivables Allowance for credit losses Restricted cash Other assets Total assets Asset-backed debt On-balance sheet assets and liabilities: Consolidated VIEs: Asset-backed securitizations $ 1,106,973 $ (32,426) $ 52,593 $ 277 $ 1,127,417 $ 1,002,869 Asset-backed U.S. commercial paper conduit facilities 500,895 (14,651) 26,843 1,256 514,343 464,136 Unconsolidated VIEs: Asset-backed Canadian commercial paper conduit facility 171,944 (3,058) 9,824 272 178,982 148,740 $ 1,779,812 $ (50,135) $ 89,260 $ 1,805 $ 1,820,742 $ 1,615,745 On-Balance Sheet Asset-Backed Securitization VIEs – The Company transfers U.S. retail motorcycle finance receivables to SPEs which in turn issue secured notes to investors, with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance receivables. Each on-balance sheet asset-backed securitization SPE is a separate legal entity, and the U.S. retail motorcycle finance receivables included in the asset-backed securitizations are only available for payment of the secured debt and other obligations arising from the asset-backed securitization transaction and are not available to pay other obligations or claims of the Company’s creditors until the associated secured debt and other obligations are satisfied. Restricted cash balances held by the SPEs are used only to support the securitizations. There are no amortization schedules for the secured notes; however, the debt is reduced monthly as available collections on the related U.S. retail motorcycle finance receivables are applied to outstanding principal. The secured notes have various contractual maturities ranging from 2021 to 2028. 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. Quarterly transfers of U.S. retail motorcycle finance receivables to SPEs, the respective proceeds, and the respective proceeds, net of discounts and issuance costs were as follows (in thousands): 2020 2019 Transfers Proceeds Proceeds, net Transfers Proceeds Proceeds, net First quarter $ 580,200 $ 525,000 $ 522,700 $ — $ — $ — Second quarter 1,840,500 1,550,200 $ 1,541,800 1,120,000 1,025,000 1,021,300 $ 2,420,700 $ 2,075,200 $ 2,064,500 $ 1,120,000 $ 1,025,000 $ 1,021,300 On-Balance Sheet Asset-Backed U.S. Commercial Paper Conduit Facilities VIE – The Company has two separate agreements, a $300.0 million revolving facility agreement and a $600.0 million revolving facility agreement, with third-party bank-sponsored asset-backed U.S. commercial paper conduits under which it may transfer U.S. retail motorcycle finance receivables to an SPE, which in turn may issue debt to those third-party bank-sponsored asset-backed U.S. commercial paper conduits. In May 2019, the Company amended its $300.0 million revolving facility agreement to allow for incremental borrowings, at the lender's discretion, of up to an additional $300.0 million in excess of the $300.0 million commitment. In November 2019, the Company renewed its existing $600.0 million and the amended $300.0 million revolving facility agreements with third-party bank-sponsored asset-backed U.S. commercial paper conduits. Availability under the revolving facilities (together, the U.S. Conduit Facilities) is based on, among other things, the amount of eligible U.S. retail motorcycle finance receivables held by the SPE as collateral. Under the U.S. Conduit Facilities, the assets of the SPE are restricted as collateral for the payment of the debt or other obligations arising in the transaction and are not available to pay other obligations or claims of the Company’s creditors. The terms for this debt provide for interest on the outstanding principal based on prevailing commercial paper rates if funded by a conduit lender through the issuance of commercial paper. If not funded by a conduit lender through the issuance of commercial paper, the terms of the interest are based on LIBOR. In each of these cases, a program fee is assessed based on the outstanding principal. The U.S. Conduit Facilities also provide for an unused commitment fee based on the unused portion of the total aggregate commitment. When calculating the unused fee, the aggregate commitment for the $300.0 million agreement does not include any unused portion of the $300.0 million incremental borrowings allowed. There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the U.S. Conduit Facilities, any outstanding principal will continue to be reduced monthly through available collections. The expected remaining term of the related receivables held by the SPE is approximately 5 years. Unless earlier terminated or extended by mutual agreement of the Company and the lenders, as of June 28, 2020, the U.S. Conduit Facilities have an expiration date of November 25, 2020. 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. Quarterly transfers of U.S. retail motorcycle finance receivables to the U.S. Conduit Facilities and the respective proceeds were as follows (in thousands): 2020 2019 Transfers Proceeds Transfers Proceeds First quarter $ 195,300 $ 163,600 $ — $ — Second quarter — — — — $ 195,300 $ 163,600 $ — $ — On-Balance Sheet Asset-Backed Canadian Commercial Paper Conduit Facility – In June 2020, the Company renewed its facility agreement (Canadian Conduit) with a Canadian bank-sponsored asset-backed commercial paper conduit. Under the agreement, the Canadian Conduit is contractually committed, at the Company's option, to purchase eligible Canadian retail motorcycle finance receivables for proceeds up to C$220.0 million. The transferred assets are restricted as collateral for the payment of the associated debt. The terms for this debt provide for interest on the outstanding principal based on prevailing market interest rates plus a specified margin. The Canadian Conduit also provides for a program fee and an unused commitment fee based on the unused portion of the total aggregate commitment of C$220.0 million. There is no amortization schedule; however, the debt is reduced monthly as available collections on the related finance receivables are applied to outstanding principal. Upon expiration of the Canadian Conduit, any outstanding principal will continue to be reduced monthly through available collections. The expected remaining term of the related receivables is approximately 5 years. Unless earlier terminated or extended by mutual agreement between the Company and the lenders, as of June 28, 2020, the Canadian Conduit has an expiration date of June 25, 2021. 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 $79.3 million at June 28, 2020. The maximum exposure is not an indication of the Company's expected loss exposure. Quarterly transfers of Canadian retail motorcycle finance receivables to the Canadian Conduit and the respective proceeds were as follows (in thousands): 2020 2019 Transfers Proceeds Transfers Proceeds First quarter $ 77,900 $ 61,600 $ — $ — Second quarter — — 28,200 23,400 $ 77,900 $ 61,600 $ 28,200 $ 23,400 Off-Balance Sheet Asset-Backed Securitization VIE – There were no off-balance sheet asset-backed securitization transactions during the six months ended June 28, 2020 or June 30, 2019. During the second quarter of 2016, the Company sold retail motorcycle finance receivables with a principal balance of $301.8 million into a securitization VIE that was not consolidated, recognized a gain of $9.3 million and received cash proceeds of $312.6 million. Similar to an on-balance sheet asset-backed securitization, the Company transferred U.S. retail motorcycle finance receivables to an SPE which in turn issued secured notes to investors, with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance receivables. The off-balance sheet asset-backed securitization SPE is a separate legal entity, and the U.S. retail motorcycle finance receivables included in the asset-backed securitization are only available for payment of the secured debt and other obligations arising from the asset-backed securitization transaction and are not available to pay other obligations or claims of the Company’s creditors. In an on-balance sheet asset-backed securitization, the Company retains a financial interest in the VIE in the form of a debt security. As part of this off-balance sheet securitization, the Company did not retain any financial interest in the VIE beyond servicing rights and ordinary representations and warranties and related covenants. The Company is not the primary beneficiary of the off-balance sheet asset-backed securitization VIE because it only retained servicing rights and does not have the obligation to absorb losses or the right to receive benefits from the VIE which could potentially be significant to the VIE. Accordingly, this transaction met the accounting sale requirements under ASC Topic 860 and was recorded as a sale for accounting purposes. Upon the sale, the retail motorcycle finance receivables were removed from the Company’s Consolidated balance sheets and a gain was recognized for the difference between the cash proceeds received, the assets derecognized and the liabilities recognized as part of the transaction. The gain on sale was included in Financial Services revenue on the Consolidated statements of operations . In April 2020, this off-balance sheet asset-backed securitization VIE was repurchased for $27.4 million. 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 on the Consolidated statements of operations . 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 $0.1 million and $0.3 million during the six months ended June 28, 2020 and June 30, 2019, respectively. The unpaid principal balance of retail motorcycle finance receivables serviced by the Company was as follows (in thousands): June 28, December 31, June 30, On-balance sheet retail motorcycle finance receivables $ 6,362,139 $ 6,274,551 $ 6,441,261 Off-balance sheet retail motorcycle finance receivables — 35,197 54,699 $ 6,362,139 $ 6,309,748 $ 6,495,960 The unpaid principal balance of retail motorcycle finance receivables serviced by the Company 30 days or more delinquent was as follows (in thousands): June 28, December 31, June 30, On-balance sheet retail motorcycle finance receivables $ 95,841 $ 244,498 $ 190,208 Off-balance sheet retail motorcycle finance receivables — 885 1,065 $ 95,841 $ 245,383 $ 191,273 Credit losses, net of recoveries for the retail motorcycle finance receivables serviced by the Company were as follows (in thousands): Three months ended Six months ended June 28, June 30, June 28, June 30, On-balance sheet retail motorcycle finance receivables $ 15,660 $ 22,259 $ 58,768 $ 55,763 Off-balance sheet retail motorcycle finance receivables — 161 13 392 $ 15,660 $ 22,420 $ 58,781 $ 56,155 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 28, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The Company assesses the inputs used to measure fair value using a three-tier hierarchy. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, foreign currency exchange rates, commodity prices, and yield curves. The Company uses the market approach to derive the fair value for its Level 2 fair value measurements. Foreign currency contracts, commodity contracts, cross-currency swaps and treasury rate locks are valued using quoted forward rates and prices; interest rate swaps and caps are valued using quoted interest rates and yield curves; investments in marketable securities and cash equivalents are valued using quoted prices. Level 3 inputs are not observable in the market and include the Company's judgments about the assumptions market participants would use in pricing the asset or liability. Recurring Fair Value Measurements – The Company’s assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): June 28, 2020 Balance Level 1 Level 2 Assets: Cash equivalents $ 3,572,900 $ 3,522,900 $ 50,000 Marketable securities 48,725 48,725 — Derivative financial instruments 29,057 — 29,057 $ 3,650,682 $ 3,571,625 $ 79,057 Liabilities: Derivative financial instruments $ 41,419 $ — $ 41,419 December 31, 2019 Balance Level 1 Level 2 Assets: Cash equivalents $ 624,832 $ 459,885 $ 164,947 Marketable securities 52,575 52,575 — Derivative financial instruments 12,649 — 12,649 $ 690,056 $ 512,460 $ 177,596 Liabilities: Derivative financial instruments $ 13,934 $ — $ 13,934 June 30, 2019 Balance Level 1 Level 2 Assets: Cash equivalents $ 619,600 $ 619,600 $ — Marketable securities 51,543 51,543 — Derivative financial instruments 6,920 — 6,920 $ 678,063 $ 671,143 $ 6,920 Liabilities: Derivative financial instruments $ 17,555 $ — $ 17,555 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 $15.8 million, $21.4 million and $19.4 million at June 28, 2020, December 31, 2019 and June 30, 2019, respectively, for which the fair value adjustment was $2.6 million, $11.9 million and $5.9 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 fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost were as follows (in thousands): June 28, 2020 December 31, 2019 June 30, 2019 Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Assets: Finance receivables, net $ 7,143,575 $ 6,979,991 $ 7,419,627 $ 7,374,366 $ 7,672,939 $ 7,594,405 Liabilities: Deposits $ 17,996 $ 17,996 $ — $ — $ — $ — Debt: Unsecured commercial paper $ 1,397,388 $ 1,397,388 $ 571,995 $ 571,995 $ 405,695 $ 405,695 364-day credit facility borrowings $ 150,000 $ 150,000 $ — $ — $ — $ — Asset-backed U.S. commercial paper conduit facilities $ 540,840 $ 540,840 $ 490,427 $ 490,427 $ 464,136 $ 464,136 Asset-backed Canadian commercial paper conduit facility $ 144,661 $ 144,661 $ 114,693 $ 114,693 $ 148,740 $ 148,740 Asset-backed securitization debt $ 2,484,956 $ 2,461,107 $ 768,094 $ 764,392 $ 1,007,205 $ 1,002,869 Medium-term notes $ 4,805,766 $ 4,784,293 $ 4,816,153 $ 4,760,127 $ 4,719,053 $ 4,687,660 Senior notes $ 790,355 $ 743,635 $ 774,949 $ 743,296 $ 756,243 $ 742,959 Finance Receivables, net – The carrying value of retail and wholesale finance receivables is amortized cost less an allowance for credit losses. The fair value of retail finance receivables is generally calculated by discounting future cash flows using an estimated discount rate that reflects current credit, interest rate and prepayment risks associated with similar types of instruments. Fair value is determined based on Level 3 inputs. The amortized cost basis of wholesale finance receivables approximates fair value because they are generally either short-term or have interest rates that adjust with changes in market interest rates. Deposits – The carrying value of deposits is amortized cost. The fair value is calculated using Level 2 inputs and approximates carrying value due to its short maturity. Debt – The carrying value of debt is generally amortized cost, net of discounts and debt issuance costs. The fair value of unsecured commercial paper and credit facility borrowings are calculated using Level 2 inputs and approximates carrying value due to its short maturity. The fair value of debt provided under the U.S. Conduit Facilities and Canadian Conduit Facility is calculated using Level 2 inputs and approximates carrying value since the interest rates charged under the facility are tied directly to market rates and fluctuate as market rates change. The fair values of the medium-term notes and senior notes are estimated based upon rates currently available for debt with similar terms and remaining maturities (Level 2 inputs). The fair value of the debt related to on-balance sheet asset-backed securitization transactions is estimated based on pricing currently available for transactions with similar terms and maturities (Level 2 inputs). |
Product Warranty and Recall Cam
Product Warranty and Recall Campaigns | 6 Months Ended |
Jun. 28, 2020 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty and Recall Campaigns | Product Warranty and Recall Campaigns The Company currently provides a standard two three five one Additionally, the Company has from time to time initiated certain voluntary recall campaigns. The Company records estimated recall costs when the liability is both probable and estimable. This generally occurs when the Company's management approves and commits to a recall. Changes in the Company’s warranty and recall liabilities were as follows (in thousands): Three months ended Six months ended June 28, June 30, June 28, June 30, Balance, beginning of period $ 86,308 $ 122,387 $ 89,793 $ 131,740 Warranties issued during the period 6,232 17,350 17,257 28,967 Settlements made during the period (10,737) (26,768) (24,894) (46,385) Recalls and changes to pre-existing warranty liabilities 1,710 (4,165) 1,357 (5,518) Balance, end of period $ 83,513 $ 108,804 $ 83,513 $ 108,804 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 28, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has a qualified pension plan and postretirement healthcare benefit plans. The plans cover certain eligible employees and retirees of the Motorcycles segment. The Company also has unfunded supplemental employee retirement plan agreements (SERPA) with certain employees. Service cost is allocated among Selling, administrative and engineering expense, Motorcycles cost of goods sold and Inventories, net . Amounts capitalized in inventory are not significant. Non-service cost components of net periodic benefit cost are presented in Other income, net . Components of net periodic benefit cost for the Company's defined benefit plans were as follows (in thousands): Three months ended Six months ended June 28, June 30, June 28, June 30, Pension and SERPA Benefits: Service cost $ 6,806 $ 6,632 $ 13,612 $ 13,264 Interest cost 19,111 21,371 38,223 42,742 Expected return on plan assets (33,764) (35,581) (67,528) (71,162) Amortization of unrecognized: Prior service credit (272) (483) (544) (966) Net loss 16,372 11,128 32,744 22,256 Net periodic benefit cost $ 8,253 $ 3,067 $ 16,507 $ 6,134 Postretirement Healthcare Benefits: Service cost $ 1,202 $ 1,185 $ 2,403 $ 2,369 Interest cost 2,336 2,938 4,672 5,876 Expected return on plan assets (3,467) (3,507) (6,934) (7,014) Amortization of unrecognized: Prior service credit (595) (595) (1,190) (1,190) Net loss 123 69 246 138 Special retirement benefit cost — 1,583 — 1,583 Curtailment gain — (960) — (960) Net periodic benefit cost $ (401) $ 713 $ (803) $ 802 There are no required or planned qualified pension plan contributions for 2020. The Company expects it will continue to make ongoing benefit payments under the SERPA and postretirement healthcare plans. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 28, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to lawsuits and other claims related to environmental, product and other matters. In determining costs to accrue related to these items, the Company carefully analyzes cases and considers the likelihood of adverse judgments or outcomes, as well as the potential range of possible loss. Any amounts accrued for these matters are monitored on an ongoing basis and are updated based on new developments or new information as it becomes available for each matter. Environmental Protection Agency Notice – In December 2009, the Company received formal, written requests for information from the United States Environmental Protection Agency (EPA) regarding: (i) certificates of conformity for motorcycle emissions and related designations and labels, (ii) aftermarket parts, and (iii) warranty claims on emissions related components. The Company promptly submitted written responses to the EPA’s inquiry and has engaged in information exchanges and discussions with the EPA. In August 2016, the Company entered into a consent decree with the EPA regarding these issues, and the consent decree was subsequently revised in July 2017 (the Settlement). In the Settlement, the Company agreed to, among other things, pay a fine, and not sell tuning products unless they are approved by the EPA or California Air Resources Board. In December 2017, the Department of Justice (DOJ), on behalf of the EPA, filed the Settlement with the U.S. District Court for the District of Columbia for the purpose of obtaining court approval of the Settlement. Three amicus briefs opposing portions of the Settlement were filed with the court by the deadline of January 31, 2018. On March 1, 2018, the Company and the DOJ each filed separate response briefs. The Company is awaiting the court's decision on whether or not to finalize the Settlement, and on February 8, 2019 the DOJ filed a status update reminding the court of the current status of the outstanding matter. The Company has an accrual associated with this matter recorded in Accrued liabilities on the Consolidated balance sheets , and as a result, if it is finalized, the Settlement would not have a material adverse effect on the Company's financial condition or results of operations. The Settlement is not final until it is approved by the court, and if it is not approved by the court, the Company cannot reasonably estimate the impact of any remedies the EPA might seek beyond the Company's current reserve for this matter. York Environmental Matter – The Company is involved with government agencies and the U.S. Navy related to a matter involving the cleanup of soil and groundwater contamination at its York, Pennsylvania facility. The York facility was formerly used by the U.S. Navy and AMF prior to the purchase of the York facility by the Company from AMF in 1981. The Company has an agreement with the U.S. Navy which calls for the U.S. Navy and the Company to contribute amounts into a trust equal to 53% and 47%, respectively, of costs associated with environmental investigation and remediation activities at the York facility (Response Costs). A site wide remedial investigation/feasibility study and a proposed final remedy for the York facility have been completed and approved by the Pennsylvania Department of Environmental Protection and the EPA. The associated cleanup plan documents were approved in February 2020 and the remaining cleanup activities are expected to begin in late 2020 or early 2021. The Company has an accrual for its share of the estimated future Response Costs recorded in Other long-term liabilities on the Consolidated balance sheets . Product Liability Matters – The Company is periodically involved in product liability suits related to the operation of its business. The Company accrues for claim exposures that are probable of occurrence and can be reasonably estimated. The Company also maintains insurance coverage for product liability exposures. The Company believes that its accruals and insurance coverage are adequate and that product liability suits will not have a material adverse effect on the Company’s Consolidated financial statements . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 28, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in Accumulated other comprehensive loss were as follows (in thousands): Three months ended June 28, 2020 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (75,268) $ (34,431) $ (469,591) $ (579,290) Other comprehensive income, before reclassifications 22,056 30,329 — 52,385 Income tax expense (613) (6,686) — (7,299) 21,443 23,643 — 45,086 Reclassifications: Net gains on derivative financial instruments — (38,592) — (38,592) Prior service credits (a) — — (867) (867) Actuarial losses (a) — — 16,495 16,495 Reclassifications before tax — (38,592) 15,628 (22,964) Income tax benefit (expense) — 8,640 (3,670) 4,970 — (29,952) 11,958 (17,994) Other comprehensive income (loss) 21,443 (6,309) 11,958 27,092 Balance, end of period $ (53,825) $ (40,740) $ (457,633) $ (552,198) Three months ended June 30, 2019 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (49,277) $ 1,344 $ (574,118) $ (622,051) Other comprehensive income (loss), before reclassifications 11,152 (8,791) — 2,361 Income tax benefit 118 1,990 — 2,108 11,270 (6,801) — 4,469 Reclassifications: Net gains on derivative financial instruments — (6,708) — (6,708) Prior service credits (a) — — (1,078) (1,078) Actuarial losses (a) — — 11,197 11,197 Reclassifications before tax — (6,708) 10,119 3,411 Income tax benefit (expense) — 1,586 (2,376) (790) — (5,122) 7,743 2,621 Other comprehensive income (loss) 11,270 (11,923) 7,743 7,090 Balance, end of period $ (38,007) $ (10,579) $ (566,375) $ (614,961) |
Business Segments
Business Segments | 6 Months Ended |
Jun. 28, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The Company operates in two business segments: Motorcycles and Related Products (Motorcycles) and Financial Services. The Company's reportable segments are strategic business units that offer different products and services and are managed separately based on the fundamental differences in their operations. The Motorcycles segment consists of HDMC which designs, manufactures and sells Harley-Davidson motorcycles as well as motorcycle parts, accessories, general merchandise and services. The Company's products are sold to retail customers primarily through a network of independent dealers. The Financial Services segment consists of HDFS which is engaged in the business of financing and servicing wholesale inventory receivables and retail consumer loans, primarily for the purchase of Harley-Davidson motorcycles. HDFS also works with certain unaffiliated insurance companies to provide motorcycle insurance and protection products to motorcycle owners. Select segment information is set forth below (in thousands): Three months ended Six months ended June 28, June 30, June 28, June 30, Motorcycles and Related Products: Motorcycles revenue $ 669,274 $ 1,434,004 $ 1,769,062 $ 2,629,641 Gross profit 107,628 454,738 426,548 802,177 Selling, administrative and engineering expense 187,647 263,587 422,000 489,015 Restructuring expense 41,005 10,423 41,005 24,053 Operating (loss) income (121,024) 180,728 (36,457) 289,109 Financial Services: Financial Services revenue 195,953 198,615 394,409 387,358 Financial Services expense 190,084 123,086 365,594 253,098 Restructuring expense 944 — 944 — Operating income 4,925 75,529 27,871 134,260 Operating (loss) income $ (116,099) $ 256,257 $ (8,586) $ 423,369 |
Supplemental Consolidating Data
Supplemental Consolidating Data | 6 Months Ended |
Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Consolidating Data | Supplemental Consolidating Data The supplemental consolidating data is presented for informational purposes and is different than segment information due to the allocation of consolidating reporting adjustments to the reportable segments. Supplemental consolidating data is as follows (in thousands): Three months ended June 28, 2020 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Revenue: Motorcycles and Related Products $ 670,905 $ — $ (1,631) $ 669,274 Financial Services — 194,872 1,081 195,953 670,905 194,872 (550) 865,227 Costs and expenses: Motorcycles and Related Products cost of goods sold 561,646 — — 561,646 Financial Services interest expense — 62,187 — 62,187 Financial Services provision for credit losses — 91,179 — 91,179 Selling, administrative and engineering expense 190,300 34,690 (625) 224,365 Restructuring expense 41,005 944 — 41,949 792,951 189,000 (625) 981,326 Operating (loss) income (122,046) 5,872 75 (116,099) Other income, net 156 — — 156 Investment income 5,757 — — 5,757 Interest expense 7,769 — — 7,769 (Loss) income before income taxes (123,902) 5,872 75 (117,955) Income tax (benefit) provision (26,938) 1,200 — (25,738) Net (loss) income $ (96,964) $ 4,672 $ 75 $ (92,217) Six months ended June 28, 2020 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Revenue: Motorcycles and Related Products $ 1,774,163 $ — $ (5,101) $ 1,769,062 Financial Services — 390,758 3,651 394,409 1,774,163 390,758 (1,450) 2,163,471 Costs and expenses: Motorcycles and Related Products cost of goods sold 1,342,514 — — 1,342,514 Financial Services interest expense — 114,660 — 114,660 Financial Services provision for credit losses — 170,598 — 170,598 Selling, administrative and engineering expense 428,046 76,129 (1,839) 502,336 Restructuring expense 41,005 944 — 41,949 1,811,565 362,331 (1,839) 2,172,057 Operating (loss) income (37,402) 28,427 389 (8,586) Other income, net 311 — — 311 Investment income 100,410 — (100,000) 410 Interest expense 15,524 — 15,524 Income (loss) before income taxes 47,795 28,427 (99,611) (23,389) Income tax (benefit) provision (7,667) 6,800 — (867) Net income (loss) $ 55,462 $ 21,627 $ (99,611) $ (22,522) Three months ended June 30, 2019 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Revenue: Motorcycles and Related Products $ 1,439,685 $ — $ (5,681) $ 1,434,004 Financial Services — 196,197 2,418 198,615 1,439,685 196,197 (3,263) 1,632,619 Costs and expenses: Motorcycles and Related Products cost of goods sold 978,761 — 505 979,266 Financial Services interest expense — 52,673 — 52,673 Financial Services provision for credit losses — 26,383 — 26,383 Selling, administrative and engineering expense 267,777 43,586 (3,746) 307,617 Restructuring expense 10,423 — — 10,423 1,256,961 122,642 (3,241) 1,376,362 Operating income 182,724 73,555 (22) 256,257 Other income, net 4,037 — — 4,037 Investment income 48,571 — (45,000) 3,571 Interest expense 7,784 — — 7,784 Income before provision for income taxes 227,548 73,555 (45,022) 256,081 Provision for income taxes 43,348 17,102 — 60,450 Net income $ 184,200 $ 56,453 $ (45,022) $ 195,631 Six months ended June 30, 2019 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Revenue: Motorcycles and Related Products $ 2,639,694 $ — $ (10,053) $ 2,629,641 Financial Services — 382,950 4,408 387,358 2,639,694 382,950 (5,645) 3,016,999 Costs and expenses: Motorcycles and Related Products cost of goods sold 1,827,464 — — 1,827,464 Financial Services interest expense — 104,997 — 104,997 Financial Services provision for credit losses — 60,874 — 60,874 Selling, administrative and engineering expense 495,769 86,174 (5,701) 576,242 Restructuring expense 24,053 — — 24,053 2,347,286 252,045 (5,701) 2,593,630 Operating income 292,408 130,905 56 423,369 Other income, net 8,697 — — 8,697 Investment income 99,929 — (90,000) 9,929 Interest expense 15,515 — — 15,515 Income before provision for income taxes 385,519 130,905 (89,944) 426,480 Provision for income taxes 71,905 30,999 — 102,904 Net income $ 313,614 $ 99,906 $ (89,944) $ 323,576 June 28, 2020 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ 446,425 $ 3,410,172 $ — $ 3,856,597 Accounts receivable, net 564,922 — (293,491) 271,431 Finance receivables, net — 1,901,620 — 1,901,620 Inventories, net 429,339 — — 429,339 Restricted cash — 189,712 — 189,712 Other current assets 119,591 66,387 (22,843) 163,135 1,560,277 5,567,891 (316,334) 6,811,834 Finance receivables, net — 5,078,371 — 5,078,371 Property, plant and equipment, net 766,546 50,443 — 816,989 Prepaid pension costs 73,589 — — 73,589 Goodwill 64,192 — — 64,192 Deferred income taxes 48,326 94,215 (975) 141,566 Lease assets 47,754 5,277 — 53,031 Other long-term assets 176,358 33,840 (93,618) 116,580 $ 2,737,042 $ 10,830,037 $ (410,927) $ 13,156,152 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 272,996 $ 337,957 $ (293,491) $ 317,462 Accrued liabilities 446,819 179,478 (22,087) 604,210 Short-term debt — 1,547,388 — 1,547,388 Current portion of long-term debt, net — 2,186,037 — 2,186,037 719,815 4,250,860 (315,578) 4,655,097 Long-term debt, net 743,635 5,744,864 — 6,488,499 Lease liabilities 31,652 4,742 — 36,394 Pension liabilities 57,033 — — 57,033 Postretirement healthcare liabilities 69,964 — — 69,964 Other long-term liabilities 178,210 44,873 2,377 225,460 Commitments and contingencies (Note 17) Shareholders’ equity 936,733 784,698 (97,726) 1,623,705 $ 2,737,042 $ 10,830,037 $ (410,927) $ 13,156,152 December 31, 2019 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ 470,649 $ 363,219 $ — $ 833,868 Accounts receivable, net 369,717 — (110,383) 259,334 Finance receivables, net — 2,272,522 — 2,272,522 Inventories, net 603,571 — — 603,571 Restricted cash — 64,554 — 64,554 Other current assets 110,145 59,665 (836) 168,974 1,554,082 2,759,960 (111,219) 4,202,823 Finance receivables, net — 5,101,844 — 5,101,844 Property, plant and equipment, net 794,131 53,251 — 847,382 Prepaid pension costs 56,014 — — 56,014 Goodwill 64,160 — — 64,160 Deferred income taxes 62,768 39,882 (1,446) 101,204 Lease assets 55,722 5,896 — 61,618 Other long-term assets 166,972 19,211 (93,069) 93,114 $ 2,753,849 $ 7,980,044 $ (205,734) $ 10,528,159 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 266,710 $ 138,053 $ (110,383) $ 294,380 Accrued liabilities 463,491 119,186 (389) 582,288 Short-term debt — 571,995 — 571,995 Current portion of long-term debt, net — 1,748,109 — 1,748,109 730,201 2,577,343 (110,772) 3,196,772 Long-term debt, net 743,296 4,381,530 — 5,124,826 Lease liabilities 38,783 5,664 — 44,447 Pension liabilities 56,138 — — 56,138 Postretirement healthcare liabilities 72,513 — — 72,513 Other long-term liabilities 186,252 40,609 2,603 229,464 Commitments and contingencies (Note 17) Shareholders’ equity 926,666 974,898 (97,565) 1,803,999 $ 2,753,849 $ 7,980,044 $ (205,734) $ 10,528,159 June 30, 2019 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ 560,446 $ 364,192 $ — $ 924,638 Accounts receivable, net 671,719 — (346,413) 325,306 Finance receivables, net — 2,362,125 — 2,362,125 Inventories, net 470,610 — — 470,610 Restricted cash — 82,248 — 82,248 Other current assets 102,956 44,278 — 147,234 1,805,731 2,852,843 (346,413) 4,312,161 Finance receivables, net — 5,232,280 — 5,232,280 Property, plant and equipment, net 801,871 54,127 — 855,998 Goodwill 64,449 — — 64,449 Deferred income taxes 96,914 38,928 (1,203) 134,639 Lease assets 48,415 6,498 — 54,913 Other long-term assets 157,061 20,159 (91,344) 85,876 $ 2,974,441 $ 8,204,835 $ (438,960) $ 10,740,316 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 302,137 $ 368,740 $ (346,413) $ 324,464 Accrued liabilities 497,019 118,256 630 615,905 Short-term debt — 405,695 — 405,695 Current portion of long-term debt, net — 2,396,188 — 2,396,188 799,156 3,288,879 (345,783) 3,742,252 Long-term debt, net 742,959 3,907,217 — 4,650,176 Lease liabilities 31,809 6,556 — 38,365 Pension liabilities 92,750 — — 92,750 Postretirement healthcare liabilities 92,539 — — 92,539 Other long-term liabilities 171,509 39,314 2,770 213,593 Commitments and contingencies (Note 17) Shareholders’ equity 1,043,719 962,869 (95,947) 1,910,641 $ 2,974,441 $ 8,204,835 $ (438,960) $ 10,740,316 Six months ended June 28, 2020 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Cash flows from operating activities: Net income (loss) $ 55,462 $ 21,627 $ (99,611) $ (22,522) Adjustments to reconcile Net income (loss) to Net cash provided by operating activities: Depreciation and amortization 91,298 4,156 — 95,454 Amortization of deferred loan origination costs — 33,796 — 33,796 Amortization of financing origination fees 339 6,322 — 6,661 Provision for long-term employee benefits 15,704 — — 15,704 Employee benefit plan contributions and payments (3,678) — — (3,678) Stock compensation expense 4,019 549 — 4,568 Net change in wholesale finance receivables related to sales — — 166,049 166,049 Provision for credit losses — 170,598 — 170,598 Deferred income taxes 5,602 (24,592) (471) (19,461) Other, net (12,635) 3,730 (389) (9,294) Changes in current assets and liabilities: Accounts receivable, net (198,855) — 183,108 (15,747) Finance receivables - accrued interest and other — (2,985) — (2,985) Inventories, net 163,700 — — 163,700 Accounts payable and accrued liabilities (1,001) 214,864 (203,199) 10,664 Derivative financial instruments 1,622 (84) — 1,538 Other (9,999) 3,150 22,007 15,158 56,116 409,504 167,105 632,725 Net cash provided by operating activities 111,578 431,131 67,494 610,203 Cash flows from investing activities: Capital expenditures (65,677) (1,349) — (67,026) Origination of finance receivables — (3,033,567) 1,163,998 (1,869,569) Collections on finance receivables — 3,117,190 (1,331,492) 1,785,698 Other investing activities (381) — — (381) Net cash (used) provided by investing activities (66,058) 82,274 (167,494) (151,278) Six months ended June 28, 2020 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 1,396,602 — 1,396,602 Repayments of medium-term notes — (1,400,000) — (1,400,000) Proceeds from securitization debt — 2,064,450 — 2,064,450 Repayments of securitization debt — (369,613) — (369,613) Borrowings of asset-backed commercial paper — 225,187 — 225,187 Repayments of asset-backed commercial paper — (143,306) — (143,306) Net increase in unsecured commercial paper — 831,354 — 831,354 Net increase in credit facilities — 150,000 — 150,000 Deposits — 17,995 — 17,995 Dividends paid (61,917) (100,000) 100,000 (61,917) Repurchase of common stock (7,156) — — (7,156) Issuance of common stock under share-based plans 41 — — 41 Net cash (used) provided by financing activities (69,032) 2,672,669 100,000 2,703,637 Effect of exchange rate changes on cash, cash equivalents and restricted cash (712) 330 — (382) Net (decrease) increase in cash, cash equivalents and restricted cash $ (24,224) $ 3,186,404 $ — $ 3,162,180 Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash, beginning of period $ 470,649 $ 434,717 $ — $ 905,366 Net (decrease) increase in cash, cash equivalents and restricted cash (24,224) 3,186,404 — 3,162,180 Cash, cash equivalents and restricted cash, end of period $ 446,425 $ 3,621,121 $ — $ 4,067,546 Six months ended June 30, 2019 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Cash flows from operating activities: Net income $ 313,614 $ 99,906 $ (89,944) $ 323,576 Adjustments to reconcile Net income to Net cash provided by operating activities: Depreciation and amortization 121,026 4,360 — 125,386 Amortization of deferred loan origination costs — 38,036 — 38,036 Amortization of financing origination fees 335 4,187 — 4,522 Provision for long-term employee benefits 6,936 — — 6,936 Employee benefit plan contributions and payments (3,637) — — (3,637) Stock compensation expense 15,672 1,613 — 17,285 Net change in wholesale finance receivables related to sales — — (167,594) (167,594) Provision for credit losses — 60,874 — 60,874 Deferred income taxes 5,928 (236) (324) 5,368 Other, net (8,545) (1,876) (56) (10,477) Changes in current assets and liabilities: Accounts receivable, net (244,752) — 227,160 (17,592) Finance receivables - accrued interest and other — (4,963) — (4,963) Inventories, net 88,146 — — 88,146 Accounts payable and accrued liabilities 21,336 221,959 (208,925) 34,370 Derivative financial instruments 4,291 61 — 4,352 Other (15,573) 13,091 (5,874) (8,356) (8,837) 337,106 (155,613) 172,656 Net cash provided by operating activities 304,777 437,012 (245,557) 496,232 Cash flows from investing activities: Capital expenditures (81,698) (1,531) — (83,229) Origination of finance receivables — (3,936,208) 1,871,309 (2,064,899) Collections on finance receivables — 3,484,581 (1,715,752) 1,768,829 Sales and redemptions of marketable securities 10,007 — — 10,007 Acquisition of business (7,000) — — (7,000) Other investing activities 11,717 — — 11,717 Net cash used by investing activities (66,974) (453,158) 155,557 (364,575) Six months ended June 30, 2019 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 546,655 — 546,655 Repayments of medium-term notes — (750,000) — (750,000) Proceeds from securitization debt — 1,021,353 — 1,021,353 Repayments of securitization debt — (113,806) — (113,806) Borrowings of asset-backed commercial paper — 23,373 — 23,373 Repayments of asset-backed commercial paper — (155,286) — (155,286) Net decrease in unsecured commercial paper — (728,606) — (728,606) Dividends paid (120,841) (90,000) 90,000 (120,841) Repurchase of common stock (104,621) — — (104,621) Issuance of common stock under share-based plans 833 — — 833 Net cash used by financing activities (224,629) (246,317) 90,000 (380,946) Effect of exchange rate changes on cash, cash equivalents and restricted cash 2,724 715 — 3,439 Net increase (decrease) in cash, cash equivalents and restricted cash $ 15,898 $ (261,748) $ — $ (245,850) Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash, beginning of period $ 544,548 $ 715,200 $ — $ 1,259,748 Net increase (decrease) in cash, cash equivalents and restricted cash 15,898 (261,748) — (245,850) Cash, cash equivalents and restricted cash, end of period $ 560,446 $ 453,452 $ — $ 1,013,898 |
Basis of Presentation and Use_2
Basis of Presentation and Use of Estimates (Policies) | 6 Months Ended |
Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company's management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. |
New Accounting Pronouncements | Accounting Standards Recently Adopted In July 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 On January 1, 2020, the Company remeasured the allowance for credit losses on financial instruments under the new accounting standard. The difference was recorded as a cumulative effect adjustment to Retained earnings , net of income taxes. The initial adoption of ASU 2016-13 did not impact the Company’s Consolidated statements of operations . The effect of adopting ASU 2016-13 on the Company’s Consolidated balance sheets was as follows (in thousands): December 31, Effect of Adoption January 1, ASSETS Finance receivables (a) $ 7,572,947 $ — $ 7,572,947 Allowance for credit losses on finance receivables (a) $ (198,581) $ (100,604) $ (299,185) Deferred income taxes $ 101,204 $ 22,484 $ 123,688 LIABILITIES AND SHAREHOLDERS' EQUITY Accrued liabilities $ 582,288 $ 109 $ 582,397 Retained earnings $ 2,193,997 $ (78,229) $ 2,115,768 (a) Reported as Finance receivables, net on the Consolidated balance sheets , allocated between current and non-current Financial Statement Comparability to Prior Periods – Beginning in 2020, under ASU 2016-13, the Company recognized full lifetime expected credit losses upon initial recognition of the associated financial instrument. Under ASU 2016-13, changes in the allowance for credit losses and the impact on the provision for credit losses will be affected by the size and composition of the Company's finance receivables portfolios, economic conditions, reasonable and supportable forecasts, and other appropriate factors at each reporting period. Prior periods have not been restated and will continue to be reported in accordance with the previously applicable U.S. GAAP, which generally required that a credit loss be incurred before it was recognized. As such, prior periods will not be comparable to the current period. Additional information on the Company’s finance receivables is discussed further in Note 8. 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 simplified 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 adopted ASU 2017-04 on January 1, 2020 on a prospective basis. The adoption of ASU 2017-04 did not have a material impact to the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). ASU 2018-13 amended ASC 820 to eliminate, modify, and add certain disclosure requirements for fair value measurements. The amendments were required to be applied retrospectively, with the exception of a few disclosure additions, which were to be applied on a prospective basis. The Company adopted ASC 2018-13 on January 1, 2020. The adoption of ASU 2018-13 did not have a material impact on the Company's disclosures. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) (ASU 2018-15). The new guidance requires a customer in a cloud computing arrangement that is a service contract to follow the existing internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. The Company adopted ASU 2018-15 on January 1, 2020 on a prospective basis. The adoption of ASU 2018-15 did not have a material impact on the Company's consolidated financial statements. Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (ASU No. 2019-12). The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance is effective for fiscal years beginning after December 15, 2020 and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2019-12. |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The effect of adopting ASU 2016-13 on the Company’s Consolidated balance sheets was as follows (in thousands): December 31, Effect of Adoption January 1, ASSETS Finance receivables (a) $ 7,572,947 $ — $ 7,572,947 Allowance for credit losses on finance receivables (a) $ (198,581) $ (100,604) $ (299,185) Deferred income taxes $ 101,204 $ 22,484 $ 123,688 LIABILITIES AND SHAREHOLDERS' EQUITY Accrued liabilities $ 582,288 $ 109 $ 582,397 Retained earnings $ 2,193,997 $ (78,229) $ 2,115,768 (a) Reported as Finance receivables, net on the Consolidated balance sheets , allocated between current and non-current |
New Accounting Standards (Table
New Accounting Standards (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The effect of adopting ASU 2016-13 on the Company’s Consolidated balance sheets was as follows (in thousands): December 31, Effect of Adoption January 1, ASSETS Finance receivables (a) $ 7,572,947 $ — $ 7,572,947 Allowance for credit losses on finance receivables (a) $ (198,581) $ (100,604) $ (299,185) Deferred income taxes $ 101,204 $ 22,484 $ 123,688 LIABILITIES AND SHAREHOLDERS' EQUITY Accrued liabilities $ 582,288 $ 109 $ 582,397 Retained earnings $ 2,193,997 $ (78,229) $ 2,115,768 (a) Reported as Finance receivables, net on the Consolidated balance sheets , allocated between current and non-current |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated revenue by major source was as follows (in thousands): Three months ended Six months ended June 28, June 30, June 28, June 30, Motorcycles and Related Products Revenue: Motorcycles $ 446,738 $ 1,128,063 $ 1,346,103 $ 2,092,638 Parts & accessories 168,708 221,258 303,393 380,961 General merchandise 37,805 64,644 86,965 120,045 Licensing 4,903 9,911 12,932 18,488 Other 11,120 10,128 19,669 17,509 669,274 1,434,004 1,769,062 2,629,641 Financial Services Revenue: Interest income 168,261 167,077 338,262 326,881 Other 27,692 31,538 56,147 60,477 195,953 198,615 394,409 387,358 $ 865,227 $ 1,632,619 $ 2,163,471 $ 3,016,999 |
Deferred Revenue | Deferred revenue, included in Accrued liabilities and Other long-term liabilities on the Consolidated balance sheets , was as follows (in thousands): June 28, June 30, Balance, beginning of period $ 29,745 $ 29,055 Balance, end of period 31,143 32,568 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Restructuring and Related Activities [Abstract] | |
Changes in the Accrued Restructuring Liability | Restructuring expenses related to 2020 restructuring activities initiated in the second quarter, by segment, were as follows (in millions): Three and Six months ended June 28, 2020 Motorcycles and Related Products $ 41.0 Financial Services 0.9 $ 41.9 Changes in accrued restructuring expenses for the 2020 restructuring activities initiated in the second quarter of 2020 which are included in Accrued liabilities on the Consolidated balance sheets were as follows (in thousands): Three and Six months ended June 28, 2020 Employee Termination Benefits Contract Terminations & Other Non-Current Asset Adjustments Total Balance, beginning of period $ — $ — $ — $ — Restructuring expense 25,321 14,270 2,358 41,949 Utilized – cash — — — — Utilized – non cash — — (2,358) (2,358) Foreign currency changes (23) — — (23) Balance, end of period $ 25,298 $ 14,270 $ — $ 39,568 Changes in accrued restructuring expenses for the 2018 restructuring activities which are included in Accrued liabilities on the Consolidated balance sheets during 2019 were as follows (in thousands). The changes in accrued restructuring expenses for the 2018 restructuring activities during the three and six months ended June 28, 2020 were immaterial. Three months ended June 30, 2019 Manufacturing Optimization Plan Reorganization Plan Employee Termination Benefits Accelerated Depreciation Other Total Employee Termination Benefits Total Balance, beginning of period $ 22,401 $ — $ 187 $ 22,588 $ 1,051 $ 23,639 Restructuring expense (benefit) 8 5,586 4,830 10,424 (1) 10,423 Utilized – cash (12,734) — (4,294) (17,028) (882) (17,910) Utilized – non cash — (5,586) (696) (6,282) — (6,282) Foreign currency changes (14) — (4) (18) (24) (42) Balance, end of period $ 9,661 $ — $ 23 $ 9,684 $ 144 $ 9,828 Six months ended June 30, 2019 Manufacturing Optimization Plan Reorganization Plan Employee Termination Benefits Accelerated Depreciation Other Total Employee Termination Benefits Total Balance, beginning of period $ 24,958 $ — $ 79 $ 25,037 $ 3,461 $ 28,498 Restructuring expense (benefit) 17 13,965 10,466 24,448 (395) 24,053 Utilized – cash (15,334) — (9,822) (25,156) (2,896) (28,052) Utilized – non cash — (13,965) (696) (14,661) — (14,661) Foreign currency changes 20 — (4) 16 (26) (10) Balance, end of period $ 9,661 $ — $ 23 $ 9,684 $ 144 $ 9,828 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Share Basic and Diluted | The computation of basic and diluted earnings per share was as follows (in thousands, except per share amounts): Three months ended Six months ended June 28, June 30, June 28, June 30, Net (loss) income $ (92,217) $ 195,631 $ (22,522) $ 323,576 Basic weighted-average shares outstanding 153,199 158,813 153,103 159,061 Effect of dilutive securities – employee stock compensation plan — 612 — 664 Diluted weighted-average shares outstanding 153,199 159,425 153,103 159,725 (Net loss) earnings per share: Basic $ (0.60) $ 1.23 $ (0.15) $ 2.03 Diluted $ (0.60) $ 1.23 $ (0.15) $ 2.03 |
Additional Balance Sheet and _2
Additional Balance Sheet and Cash Flow Information (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Marketable Securities | Investments in Marketable Securities – The Company’s investments in marketable securities consisted of the following (in thousands): June 28, December 31, June 30, Mutual funds $ 48,725 $ 52,575 $ 51,543 |
Inventories, Net | Inventories, net consisted of the following (in thousands): June 28, December 31, June 30, Raw materials and work in process $ 199,300 $ 235,433 $ 161,828 Motorcycle finished goods 180,895 280,306 218,069 Parts & accessories and general merchandise 105,570 144,258 149,352 Inventory at lower of FIFO cost or net realizable value 485,765 659,997 529,249 Excess of FIFO over LIFO cost (56,426) (56,426) (58,639) $ 429,339 $ 603,571 $ 470,610 |
Reconciliation of Net Cash Provided by Operating Activities | The reconciliation of Net (loss) income to Net cash provided by operating activities was as follows (in thousands): Six months ended June 28, June 30, Cash flows from operating activities: Net (loss) income $ (22,522) $ 323,576 Adjustments to reconcile Net (loss) income to Net cash provided by operating activities: Depreciation and amortization 95,454 125,386 Amortization of deferred loan origination costs 33,796 38,036 Amortization of financing origination fees 6,661 4,522 Provision for long-term employee benefits 15,704 6,936 Employee benefit plan contributions and payments (3,678) (3,637) Stock compensation expense 4,568 17,285 Net change in wholesale finance receivables related to sales 166,049 (167,594) Provision for credit losses 170,598 60,874 Deferred income taxes (19,461) 5,368 Other, net (9,294) (10,477) Changes in current assets and liabilities: Accounts receivable, net (15,747) (17,592) Finance receivables – accrued interest and other (2,985) (4,963) Inventories, net 163,700 88,146 Accounts payable and accrued liabilities 10,664 34,370 Derivative financial instruments 1,538 4,352 Other 15,158 (8,356) 632,725 172,656 Net cash provided by operating activities $ 610,203 $ 496,232 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Receivables [Abstract] | |
Finance Receivables | Finance receivables, net , consisted of the following (in thousands): June 28, December 31, June 30, Retail finance receivables $ 6,520,919 $ 6,416,428 $ 6,549,707 Wholesale finance receivables 870,087 1,156,519 1,239,694 7,391,006 7,572,947 7,789,401 Allowance for credit losses (411,015) (198,581) (194,996) $ 6,979,991 $ 7,374,366 $ 7,594,405 |
Allowance for Credit Losses on Finance Receivables | Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands): Three months ended June 28, 2020 Retail Wholesale Total Balance, beginning of period $ 311,368 $ 24,128 $ 335,496 Provision for credit losses 94,050 (2,871) 91,179 Charge-offs (29,859) — (29,859) Recoveries 14,199 — 14,199 Balance, end of period $ 389,758 $ 21,257 $ 411,015 Three months ended June 30, 2019 Retail Wholesale Total Balance, beginning of period $ 181,426 $ 9,446 $ 190,872 Provision for credit losses 27,555 (1,172) 26,383 Charge-offs (35,741) — (35,741) Recoveries 13,482 — 13,482 Balance, end of period $ 186,722 $ 8,274 $ 194,996 Six months ended June 28, 2020 Retail Wholesale Total Balance, beginning of period $ 188,501 $ 10,080 $ 198,581 Cumulative effect of change in accounting (a) 95,558 5,046 100,604 Provision for credit losses 164,467 6,131 170,598 Charge-offs (85,074) — (85,074) Recoveries 26,306 — 26,306 Balance, end of period $ 389,758 $ 21,257 $ 411,015 Six months ended June 30, 2019 Retail Wholesale Total Balance, beginning of period $ 182,098 $ 7,787 $ 189,885 Provision for credit losses 60,387 487 60,874 Charge-offs (80,462) — (80,462) Recoveries 24,699 — 24,699 Balance, end of period $ 186,722 $ 8,274 $ 194,996 (a) On January 1, 2020, the Company adopted ASU 2016-13 and increased the allowance for loan loss through Retained earnings , net of income taxes, to establish an allowance that represents expected lifetime credit losses on the finance receivable portfolios at date of adoption. The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that were individually evaluated for impairment and those that were collectively evaluated for impairment, were as follows (in thousands): December 31, 2019 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ 2,100 $ 2,100 Collectively evaluated for impairment 188,501 7,980 196,481 $ 188,501 $ 10,080 $ 198,581 Finance receivables, ending balance: Individually evaluated for impairment $ — $ 4,601 $ 4,601 Collectively evaluated for impairment 6,416,428 1,151,918 7,568,346 $ 6,416,428 $ 1,156,519 $ 7,572,947 June 30, 2019 Retail Wholesale Total Allowance for credit losses, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 186,722 8,274 194,996 $ 186,722 $ 8,274 $ 194,996 Finance receivables, ending balance: Individually evaluated for impairment $ — $ — $ — Collectively evaluated for impairment 6,549,707 1,239,694 7,789,401 $ 6,549,707 $ 1,239,694 $ 7,789,401 |
Financing Receivable Credit Quality Indicators | The amortized cost of the Company's U.S. and Canadian retail finance receivables by credit quality indicator and vintage, as of June 28, 2020, was as follows (in thousands): 2020 2019 2018 2017 2016 2015 & Prior Total U.S. Retail: Super prime $ 486,327 $ 737,419 $ 474,280 $ 234,239 $ 114,496 $ 54,661 $ 2,101,422 Prime 670,363 973,046 644,846 388,039 223,960 131,367 3,031,621 Sub-prime 271,843 360,812 217,720 138,998 95,630 79,754 1,164,757 1,428,533 2,071,277 1,336,846 761,276 434,086 265,782 6,297,800 Canadian Retail: Super prime 34,715 57,818 35,786 19,265 8,508 3,687 159,779 Prime 11,548 15,741 11,598 7,932 4,093 3,187 54,099 Sub-prime 1,970 2,720 1,881 1,289 782 599 9,241 48,233 76,279 49,265 28,486 13,383 7,473 223,119 $ 1,476,766 $ 2,147,556 $ 1,386,111 $ 789,762 $ 447,469 $ 273,255 $ 6,520,919 December 31, June 30, Prime $ 5,278,093 $ 5,372,712 Sub-prime 1,138,335 1,176,995 $ 6,416,428 $ 6,549,707 The amortized cost of wholesale financial receivables, by credit quality indicator and vintage, was as follows as of June 28, 2020 (in thousands): 2020 2019 2018 2017 2016 2015 & Prior Total Non-Performing $ — $ 2,376 $ 1,774 $ 107 $ 25 $ 43 $ 4,325 Doubtful 579 1,009 188 — — — 1,776 Substandard 944 966 53 — — — 1,963 Special Mention 5,345 5,281 564 — — 1,805 12,995 Medium Risk 6,690 3,587 301 63 — — 10,641 Low Risk 517,708 273,408 29,301 8,965 6,006 2,999 838,387 $ 531,266 $ 286,627 $ 32,181 $ 9,135 $ 6,031 $ 4,847 $ 870,087 December 31, June 30, Doubtful $ 11,664 $ 6,850 Substandard 6,122 7,643 Special Mention 16,125 12,642 Medium Risk 16,800 6,170 Low Risk 1,105,808 1,206,389 $ 1,156,519 $ 1,239,694 |
Impaired Financing Receivables Under ASC 310 | Additional information related to the wholesale finance receivables on non-accrual status was as follows (in thousands): Amortized Cost Amortized Cost Interest Income January 1, 2020 June 28, 2020 Recognized Wholesale: No related allowance recorded $ — $ — $ — Related allowance recorded 4,994 4,325 — $ 4,994 $ 4,325 $ — At June 30, 2019, there were no wholesale receivables that were individually deemed to be impaired under ASC Topic 310, Receivables. Additional information related to the wholesale finance receivables that were individually deemed to be impaired at December 31, 2019 included the following (in thousands): Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Wholesale: No related allowance recorded $ — $ — $ — $ — $ — Related allowance recorded 4,994 4,601 2,100 4,976 — $ 4,994 $ 4,601 $ 2,100 $ 4,976 $ — |
Aging of Past Due Finance Receivables Including Non-Accrual Status Finance Receivables | The aging analysis of finance receivables was as follows (in thousands): June 28, 2020 Current 31-60 Days 61-90 Days Greater than Total Total Retail finance receivables $ 6,425,078 $ 63,190 $ 16,631 $ 16,020 $ 95,841 $ 6,520,919 Wholesale finance receivables 864,911 1,261 413 3,502 5,176 870,087 $ 7,289,989 $ 64,451 $ 17,044 $ 19,522 $ 101,017 $ 7,391,006 December 31, 2019 Current 31-60 Days 61-90 Days Greater than Total Total Retail finance receivables $ 6,171,930 $ 142,479 $ 53,995 $ 48,024 $ 244,498 $ 6,416,428 Wholesale finance receivables 1,152,416 1,145 384 2,574 4,103 1,156,519 $ 7,324,346 $ 143,624 $ 54,379 $ 50,598 $ 248,601 $ 7,572,947 June 30, 2019 Current 31-60 Days 61-90 Days Greater than Total Total Retail finance receivables $ 6,359,499 $ 119,770 $ 40,015 $ 30,423 $ 190,208 $ 6,549,707 Wholesale finance receivables 1,236,747 577 320 2,050 2,947 1,239,694 $ 7,596,246 $ 120,347 $ 40,335 $ 32,473 $ 193,155 $ 7,789,401 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instrument Fair Value | The notional and fair values of the Company's derivative financial instruments under ASC Topic 815 were as follows (in thousands): Derivative Financial Instruments June 28, 2020 December 31, 2019 June 30, 2019 Notional Other Current Assets Accrued Liabilities Notional Other Current Assets Accrued Liabilities Notional Other Current Assets Accrued Liabilities Foreign currency contracts $ 359,754 $ 3,108 $ 1,537 $ 434,321 $ 3,505 $ 3,661 $ 495,736 $ 6,638 $ 3,490 Commodity contracts 581 — 49 616 — 80 627 — 69 Cross-currency swap 1,367,460 24,288 29,975 660,780 8,326 — — — — Interest rate swaps 450,000 — 9,120 900,000 — 9,181 900,000 — 11,920 $ 2,177,795 $ 27,396 $ 40,681 $ 1,995,717 $ 11,831 $ 12,922 $ 1,396,363 $ 6,638 $ 15,479 Derivative Financial Instruments June 28, 2020 December 31, 2019 June 30, 2019 Notional Other Current Assets Accrued Liabilities Notional Other Current Assets Accrued Liabilities Notional Other Current Assets Accrued Liabilities Foreign currency contracts $ 173,805 $ 1,295 $ 247 $ 220,139 $ 721 $ 865 $ 317,344 $ 273 $ 1,816 Commodity contracts 7,401 214 491 8,270 95 147 7,710 5 260 Interest rate cap 1,277,389 152 — 375,980 2 — 481,509 4 — $ 1,458,595 $ 1,661 $ 738 $ 604,389 $ 818 $ 1,012 $ 806,563 $ 282 $ 2,076 |
Gain/(Loss) on Derivative Cash Flow Hedges Reclassified From AOCI Into Income | The amounts of gains and losses related to derivative financial instruments designated as cash flow hedges were as follows (in thousands): Gain/(Loss) Gain/(Loss) Three months ended Six months ended Three months ended Six months ended June 28, June 30, June 28, June 30, June 28, June 30, June 28, June 30, Foreign currency contracts $ (4,062) $ (2,865) $ 12,837 $ 1,287 $ 5,305 $ 7,668 $ 8,705 $ 10,121 Commodity contracts (28) (70) (157) (40) (53) (7) (188) (17) Cross-currency swap 35,595 — (14,014) — 36,915 — 24,009 — Treasury rate locks — — — — (122) (123) (246) (245) Interest rate swaps (1,176) (5,856) (6,509) (8,861) (3,453) (830) (6,569) (1,436) $ 30,329 $ (8,791) $ (7,843) $ (7,614) $ 38,592 $ 6,708 $ 25,711 $ 8,423 The location and amount of gains and losses recognized in income related to derivative financial instruments designated as cash flow hedges were as follows (in thousands): Motorcycles Selling, administrative & Interest expense Financial Services interest expense Three months ended June 28, 2020 Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded $ 561,646 $ 224,365 $ 7,769 $ 62,187 Gain/(loss) reclassified from AOCL into income: Foreign currency contracts $ 5,305 $ — $ — $ — Commodity contracts $ (53) $ — $ — $ — Cross-currency swap $ — $ 36,915 $ — $ — Treasury rate locks $ — $ — $ (90) $ (32) Interest rate swaps $ — $ — $ — $ (3,453) Three months ended June 30, 2019 Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded $ 979,266 $ 307,617 $ 7,784 $ 52,673 Gain/(loss) reclassified from AOCL into income: Foreign currency contracts $ 7,668 $ — $ — $ — Commodity contracts $ (7) $ — $ — $ — Treasury rate locks $ — $ — $ (91) $ (32) Interest rate swaps $ — $ — $ — $ (830) Motorcycles Selling, administrative & Interest expense Financial Services interest expense Six months ended June 28, 2020 Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded $ 1,342,514 $ 502,336 $ 15,524 $ 114,660 Gain/(loss) reclassified from AOCL into income: Foreign currency contracts $ 8,705 $ — $ — $ — Commodity contracts $ (188) $ — $ — $ — Cross-currency swaps $ — $ 24,009 $ — $ — Treasury rate locks $ — $ — $ (181) $ (65) Interest rate swaps $ — $ — $ — $ (6,569) Six months ended June 30, 2019 Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded $ 1,827,464 $ 576,242 $ 15,515 $ 104,997 Gain/(loss) reclassified from AOCL into income: Foreign currency contracts $ 10,121 $ — $ — $ — Commodity contracts $ (17) $ — $ — $ — Treasury rate locks $ — $ — $ (181) $ (64) Interest rate swaps $ — $ — $ — $ (1,436) |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The amount of gains and losses recognized in income related to derivative financial instruments not designated as hedging instruments were as follows (in thousands). Gains and losses on foreign currency contracts and commodity contracts were recorded in Motorcycles cost of goods sold and the interest rate cap was recorded in Financial Services interest expense. Amount of Gain/(Loss) Three months ended Six months ended June 28, June 30, June 28, June 30, Foreign currency contracts $ (522) $ (1,004) $ 1,672 $ (117) Commodity contracts 558 (310) (993) 7 Interest rate cap (427) (141) (427) (141) $ (391) $ (1,455) $ 252 $ (251) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Leases [Abstract] | |
Balance sheet information related to leases | Balance sheet information related to the Company's leases was as follows (in thousands): June 28, December 31, June 30, Lease assets $ 53,031 $ 61,618 $ 54,913 Accrued liabilities $ 18,154 $ 19,013 $ 18,133 Lease liabilities 36,394 44,447 38,365 $ 54,548 $ 63,460 $ 56,498 |
Future maturities of lease liabilities | Future maturities of the Company's operating lease liabilities as of June 28, 2020 were as follows (in thousands): Operating Leases 2020 $ 10,146 2021 18,388 2022 13,410 2023 6,543 2024 4,556 Thereafter 4,825 Future lease payments 57,868 Present value discount (3,320) Lease liabilities $ 54,548 |
Other lease information | Other lease information surrounding the Company's operating leases was as follows (dollars in thousands): Three months ended Six months ended June 28, June 30, June 28, June 30, Cash outflows for amounts included in the measurement of lease liabilities $ 5,242 $ 4,510 $ 10,619 $ 9,871 Right-of-use assets obtained in exchange for lease obligations $ 1,096 $ 3,964 $ 1,653 $ 4,262 June 28, December 31, June 30, Weighted-average remaining lease term (in years) 4.03 4.68 4.44 Weighted-average discount rate 3.3 % 2.1 % 3.2 % |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Debt with a contractual term less than 12 months is generally classified as short-term and consisted of the following (in thousands): June 28, December 31, June 30, Unsecured commercial paper $ 1,397,388 $ 571,995 $ 405,695 364-day credit facility borrowings 150,000 — — $ 1,547,388 $ 571,995 $ 405,695 |
Schedule of Long-term Debt Instruments | Debt with a contractual term greater than 12 months is generally classified as long-term and consisted of the following (in thousands): June 28, December 31, June 30, Secured debt: Asset-backed Canadian commercial paper conduit facility $ 144,661 $ 114,693 $ 148,740 Asset-backed U.S. commercial paper conduit facilities 540,840 490,427 464,136 Asset-backed securitization debt 2,472,529 766,965 1,006,410 Unamortized discounts and debt issuance costs (11,422) (2,573) (3,541) 3,146,608 1,369,512 1,615,745 Unsecured notes (at par value): Medium-term notes: Due in 2019, issued September 2014 2.40 % — — 600,000 Due in 2020, issued February 2015 2.15 % — 600,000 600,000 Due in 2020, issued May 2018 LIBOR + 0.50% — 450,000 450,000 Due in 2020, issued March 2017 2.40 % — 350,000 350,000 Due in 2021, issued January 2016 2.85 % 600,000 600,000 600,000 Due in 2021, issued November 2018 LIBOR + 0.94% 450,000 450,000 450,000 Due in 2021, issued May 2018 3.55 % 350,000 350,000 350,000 Due in 2022, issued February 2019 4.05 % 550,000 550,000 550,000 Due in 2022, issued June 2017 2.55 % 400,000 400,000 400,000 Due in 2023, issued February 2018 3.35 % 350,000 350,000 350,000 Due in 2023, issued May 2020 (a) 4.94 % 729,885 — — Due in 2024, issued November 2019 (b) 3.14 % 673,740 672,936 — Due in 2025, issued June 2020 3.35 % 700,000 — — Unamortized discounts and debt issuance costs (19,332) (12,809) (12,340) 4,784,293 4,760,127 4,687,660 June 28, December 31, June 30, Senior notes: Due in 2025, issued July 2015 3.50 % 450,000 450,000 450,000 Due in 2045, issued July 2015 4.625 % 300,000 300,000 300,000 Unamortized discounts and debt issuance costs (6,365) (6,704) (7,041) 743,635 743,296 742,959 5,527,928 5,503,423 5,430,619 Long-term debt 8,674,536 6,872,935 7,046,364 Current portion of long-term debt, net (2,186,037) (1,748,109) (2,396,188) Long-term debt, net $ 6,488,499 $ 5,124,826 $ 4,650,176 (a) Euro denominated, €650.0 million par value remeasured to U.S. dollar at June 28, 2020 (b) Euro denominated, €600.0 million par value remeasured to U.S. dollar at June 28, 2020 and December 31, 2019, respectively |
Asset-Backed Financing (Tables)
Asset-Backed Financing (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Transfers and Servicing [Abstract] | |
Assets and Liabilities Related to the On-Balance Sheet Financing | The assets and liabilities related to the on-balance sheet asset-backed financings included in the Consolidated balance sheets were as follows (in thousands): June 28, 2020 Finance receivables Allowance for credit losses Restricted cash Other assets Total assets Asset-backed debt On-balance sheet assets and liabilities: Consolidated VIEs: Asset-backed securitizations $ 2,780,217 $ (166,635) $ 161,257 $ 1,235 $ 2,776,074 $ 2,461,107 Asset-backed U.S. commercial paper conduit facilities 584,153 (34,938) 38,491 1,195 588,901 540,840 Unconsolidated VIEs: Asset-backed Canadian commercial paper conduit facility 220,286 (7,669) 11,201 142 223,960 144,661 $ 3,584,656 $ (209,242) $ 210,949 $ 2,572 $ 3,588,935 $ 3,146,608 December 31, 2019 Finance receivables Allowance for credit losses Restricted cash Other assets Total assets Asset-backed debt On-balance sheet assets and liabilities: Consolidated VIEs: Asset-backed securitizations $ 826,047 $ (24,935) $ 36,037 $ 778 $ 837,927 $ 764,392 Asset-backed U.S. commercial paper conduit facilities 533,587 (16,076) 27,775 1,642 546,928 490,427 Unconsolidated VIEs: Asset-backed Canadian commercial paper conduit facility 232,699 (2,786) 7,686 296 237,895 114,693 $ 1,592,333 $ (43,797) $ 71,498 $ 2,716 $ 1,622,750 $ 1,369,512 June 30, 2019 Finance receivables Allowance for credit losses Restricted cash Other assets Total assets Asset-backed debt On-balance sheet assets and liabilities: Consolidated VIEs: Asset-backed securitizations $ 1,106,973 $ (32,426) $ 52,593 $ 277 $ 1,127,417 $ 1,002,869 Asset-backed U.S. commercial paper conduit facilities 500,895 (14,651) 26,843 1,256 514,343 464,136 Unconsolidated VIEs: Asset-backed Canadian commercial paper conduit facility 171,944 (3,058) 9,824 272 178,982 148,740 $ 1,779,812 $ (50,135) $ 89,260 $ 1,805 $ 1,820,742 $ 1,615,745 |
Schedule of Servicing Activities | The unpaid principal balance of retail motorcycle finance receivables serviced by the Company was as follows (in thousands): June 28, December 31, June 30, On-balance sheet retail motorcycle finance receivables $ 6,362,139 $ 6,274,551 $ 6,441,261 Off-balance sheet retail motorcycle finance receivables — 35,197 54,699 $ 6,362,139 $ 6,309,748 $ 6,495,960 The unpaid principal balance of retail motorcycle finance receivables serviced by the Company 30 days or more delinquent was as follows (in thousands): June 28, December 31, June 30, On-balance sheet retail motorcycle finance receivables $ 95,841 $ 244,498 $ 190,208 Off-balance sheet retail motorcycle finance receivables — 885 1,065 $ 95,841 $ 245,383 $ 191,273 Credit losses, net of recoveries for the retail motorcycle finance receivables serviced by the Company were as follows (in thousands): Three months ended Six months ended June 28, June 30, June 28, June 30, On-balance sheet retail motorcycle finance receivables $ 15,660 $ 22,259 $ 58,768 $ 55,763 Off-balance sheet retail motorcycle finance receivables — 161 13 392 $ 15,660 $ 22,420 $ 58,781 $ 56,155 |
Transfer of Financial Assets Accounted for as Sales | Quarterly transfers of U.S. retail motorcycle finance receivables to SPEs, the respective proceeds, and the respective proceeds, net of discounts and issuance costs were as follows (in thousands): 2020 2019 Transfers Proceeds Proceeds, net Transfers Proceeds Proceeds, net First quarter $ 580,200 $ 525,000 $ 522,700 $ — $ — $ — Second quarter 1,840,500 1,550,200 $ 1,541,800 1,120,000 1,025,000 1,021,300 $ 2,420,700 $ 2,075,200 $ 2,064,500 $ 1,120,000 $ 1,025,000 $ 1,021,300 Quarterly transfers of U.S. retail motorcycle finance receivables to the U.S. Conduit Facilities and the respective proceeds were as follows (in thousands): 2020 2019 Transfers Proceeds Transfers Proceeds First quarter $ 195,300 $ 163,600 $ — $ — Second quarter — — — — $ 195,300 $ 163,600 $ — $ — Quarterly transfers of Canadian retail motorcycle finance receivables to the Canadian Conduit and the respective proceeds were as follows (in thousands): 2020 2019 Transfers Proceeds Transfers Proceeds First quarter $ 77,900 $ 61,600 $ — $ — Second quarter — — 28,200 23,400 $ 77,900 $ 61,600 $ 28,200 $ 23,400 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured At Fair Value On A Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): June 28, 2020 Balance Level 1 Level 2 Assets: Cash equivalents $ 3,572,900 $ 3,522,900 $ 50,000 Marketable securities 48,725 48,725 — Derivative financial instruments 29,057 — 29,057 $ 3,650,682 $ 3,571,625 $ 79,057 Liabilities: Derivative financial instruments $ 41,419 $ — $ 41,419 December 31, 2019 Balance Level 1 Level 2 Assets: Cash equivalents $ 624,832 $ 459,885 $ 164,947 Marketable securities 52,575 52,575 — Derivative financial instruments 12,649 — 12,649 $ 690,056 $ 512,460 $ 177,596 Liabilities: Derivative financial instruments $ 13,934 $ — $ 13,934 June 30, 2019 Balance Level 1 Level 2 Assets: Cash equivalents $ 619,600 $ 619,600 $ — Marketable securities 51,543 51,543 — Derivative financial instruments 6,920 — 6,920 $ 678,063 $ 671,143 $ 6,920 Liabilities: Derivative financial instruments $ 17,555 $ — $ 17,555 |
Summary of The Fair Value and Carrying Value of The Company's Financial Instruments | The fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost were as follows (in thousands): June 28, 2020 December 31, 2019 June 30, 2019 Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Assets: Finance receivables, net $ 7,143,575 $ 6,979,991 $ 7,419,627 $ 7,374,366 $ 7,672,939 $ 7,594,405 Liabilities: Deposits $ 17,996 $ 17,996 $ — $ — $ — $ — Debt: Unsecured commercial paper $ 1,397,388 $ 1,397,388 $ 571,995 $ 571,995 $ 405,695 $ 405,695 364-day credit facility borrowings $ 150,000 $ 150,000 $ — $ — $ — $ — Asset-backed U.S. commercial paper conduit facilities $ 540,840 $ 540,840 $ 490,427 $ 490,427 $ 464,136 $ 464,136 Asset-backed Canadian commercial paper conduit facility $ 144,661 $ 144,661 $ 114,693 $ 114,693 $ 148,740 $ 148,740 Asset-backed securitization debt $ 2,484,956 $ 2,461,107 $ 768,094 $ 764,392 $ 1,007,205 $ 1,002,869 Medium-term notes $ 4,805,766 $ 4,784,293 $ 4,816,153 $ 4,760,127 $ 4,719,053 $ 4,687,660 Senior notes $ 790,355 $ 743,635 $ 774,949 $ 743,296 $ 756,243 $ 742,959 |
Product Warranty and Recall C_2
Product Warranty and Recall Campaigns (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Product Warranties Disclosures [Abstract] | |
Warranty and Recall Liability | Changes in the Company’s warranty and recall liabilities were as follows (in thousands): Three months ended Six months ended June 28, June 30, June 28, June 30, Balance, beginning of period $ 86,308 $ 122,387 $ 89,793 $ 131,740 Warranties issued during the period 6,232 17,350 17,257 28,967 Settlements made during the period (10,737) (26,768) (24,894) (46,385) Recalls and changes to pre-existing warranty liabilities 1,710 (4,165) 1,357 (5,518) Balance, end of period $ 83,513 $ 108,804 $ 83,513 $ 108,804 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Costs | Components of net periodic benefit cost for the Company's defined benefit plans were as follows (in thousands): Three months ended Six months ended June 28, June 30, June 28, June 30, Pension and SERPA Benefits: Service cost $ 6,806 $ 6,632 $ 13,612 $ 13,264 Interest cost 19,111 21,371 38,223 42,742 Expected return on plan assets (33,764) (35,581) (67,528) (71,162) Amortization of unrecognized: Prior service credit (272) (483) (544) (966) Net loss 16,372 11,128 32,744 22,256 Net periodic benefit cost $ 8,253 $ 3,067 $ 16,507 $ 6,134 Postretirement Healthcare Benefits: Service cost $ 1,202 $ 1,185 $ 2,403 $ 2,369 Interest cost 2,336 2,938 4,672 5,876 Expected return on plan assets (3,467) (3,507) (6,934) (7,014) Amortization of unrecognized: Prior service credit (595) (595) (1,190) (1,190) Net loss 123 69 246 138 Special retirement benefit cost — 1,583 — 1,583 Curtailment gain — (960) — (960) Net periodic benefit cost $ (401) $ 713 $ (803) $ 802 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Changes in Accumulated other comprehensive loss were as follows (in thousands): Three months ended June 28, 2020 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (75,268) $ (34,431) $ (469,591) $ (579,290) Other comprehensive income, before reclassifications 22,056 30,329 — 52,385 Income tax expense (613) (6,686) — (7,299) 21,443 23,643 — 45,086 Reclassifications: Net gains on derivative financial instruments — (38,592) — (38,592) Prior service credits (a) — — (867) (867) Actuarial losses (a) — — 16,495 16,495 Reclassifications before tax — (38,592) 15,628 (22,964) Income tax benefit (expense) — 8,640 (3,670) 4,970 — (29,952) 11,958 (17,994) Other comprehensive income (loss) 21,443 (6,309) 11,958 27,092 Balance, end of period $ (53,825) $ (40,740) $ (457,633) $ (552,198) Three months ended June 30, 2019 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (49,277) $ 1,344 $ (574,118) $ (622,051) Other comprehensive income (loss), before reclassifications 11,152 (8,791) — 2,361 Income tax benefit 118 1,990 — 2,108 11,270 (6,801) — 4,469 Reclassifications: Net gains on derivative financial instruments — (6,708) — (6,708) Prior service credits (a) — — (1,078) (1,078) Actuarial losses (a) — — 11,197 11,197 Reclassifications before tax — (6,708) 10,119 3,411 Income tax benefit (expense) — 1,586 (2,376) (790) — (5,122) 7,743 2,621 Other comprehensive income (loss) 11,270 (11,923) 7,743 7,090 Balance, end of period $ (38,007) $ (10,579) $ (566,375) $ (614,961) Six months ended June 28, 2020 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (40,813) $ (14,586) $ (481,550) $ (536,949) Other comprehensive loss, before reclassifications (13,765) (7,843) — (21,608) Income tax benefit 753 1,582 — 2,335 (13,012) (6,261) — (19,273) Reclassifications: Net gains on derivative financial instruments — (25,711) — (25,711) Prior service credits (a) — — (1,734) (1,734) Actuarial losses (a) — — 32,990 32,990 Reclassifications before tax — (25,711) 31,256 5,545 Income tax benefit (expense) — 5,818 (7,339) (1,521) — (19,893) 23,917 4,024 Other comprehensive (loss) income (13,012) (26,154) 23,917 (15,249) Balance, end of period $ (53,825) $ (40,740) $ (457,633) $ (552,198) Six months ended June 30, 2019 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (49,608) $ 1,785 $ (581,861) $ (629,684) Other comprehensive income (loss), before reclassifications 11,758 (7,614) — 4,144 Income tax (expense) benefit (157) 1,676 — 1,519 11,601 (5,938) — 5,663 Reclassifications: Net gains on derivative financial instruments — (8,423) — (8,423) Prior service credits (a) — — (2,156) (2,156) Actuarial losses (a) — — 22,394 22,394 Reclassifications before tax — (8,423) 20,238 11,815 Income tax benefit (expense) — 1,997 (4,752) (2,755) — (6,426) 15,486 9,060 Other comprehensive income (loss) 11,601 (12,364) 15,486 14,723 Balance, end of period $ (38,007) $ (10,579) $ (566,375) $ (614,961) (a) Amounts reclassified are included in the computation of net periodic benefit cost, discussed further in Note 16 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Select segment information is set forth below (in thousands): Three months ended Six months ended June 28, June 30, June 28, June 30, Motorcycles and Related Products: Motorcycles revenue $ 669,274 $ 1,434,004 $ 1,769,062 $ 2,629,641 Gross profit 107,628 454,738 426,548 802,177 Selling, administrative and engineering expense 187,647 263,587 422,000 489,015 Restructuring expense 41,005 10,423 41,005 24,053 Operating (loss) income (121,024) 180,728 (36,457) 289,109 Financial Services: Financial Services revenue 195,953 198,615 394,409 387,358 Financial Services expense 190,084 123,086 365,594 253,098 Restructuring expense 944 — 944 — Operating income 4,925 75,529 27,871 134,260 Operating (loss) income $ (116,099) $ 256,257 $ (8,586) $ 423,369 |
Supplemental Consolidating Da_2
Supplemental Consolidating Data (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations | Three months ended June 28, 2020 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Revenue: Motorcycles and Related Products $ 670,905 $ — $ (1,631) $ 669,274 Financial Services — 194,872 1,081 195,953 670,905 194,872 (550) 865,227 Costs and expenses: Motorcycles and Related Products cost of goods sold 561,646 — — 561,646 Financial Services interest expense — 62,187 — 62,187 Financial Services provision for credit losses — 91,179 — 91,179 Selling, administrative and engineering expense 190,300 34,690 (625) 224,365 Restructuring expense 41,005 944 — 41,949 792,951 189,000 (625) 981,326 Operating (loss) income (122,046) 5,872 75 (116,099) Other income, net 156 — — 156 Investment income 5,757 — — 5,757 Interest expense 7,769 — — 7,769 (Loss) income before income taxes (123,902) 5,872 75 (117,955) Income tax (benefit) provision (26,938) 1,200 — (25,738) Net (loss) income $ (96,964) $ 4,672 $ 75 $ (92,217) Six months ended June 28, 2020 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Revenue: Motorcycles and Related Products $ 1,774,163 $ — $ (5,101) $ 1,769,062 Financial Services — 390,758 3,651 394,409 1,774,163 390,758 (1,450) 2,163,471 Costs and expenses: Motorcycles and Related Products cost of goods sold 1,342,514 — — 1,342,514 Financial Services interest expense — 114,660 — 114,660 Financial Services provision for credit losses — 170,598 — 170,598 Selling, administrative and engineering expense 428,046 76,129 (1,839) 502,336 Restructuring expense 41,005 944 — 41,949 1,811,565 362,331 (1,839) 2,172,057 Operating (loss) income (37,402) 28,427 389 (8,586) Other income, net 311 — — 311 Investment income 100,410 — (100,000) 410 Interest expense 15,524 — 15,524 Income (loss) before income taxes 47,795 28,427 (99,611) (23,389) Income tax (benefit) provision (7,667) 6,800 — (867) Net income (loss) $ 55,462 $ 21,627 $ (99,611) $ (22,522) Three months ended June 30, 2019 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Revenue: Motorcycles and Related Products $ 1,439,685 $ — $ (5,681) $ 1,434,004 Financial Services — 196,197 2,418 198,615 1,439,685 196,197 (3,263) 1,632,619 Costs and expenses: Motorcycles and Related Products cost of goods sold 978,761 — 505 979,266 Financial Services interest expense — 52,673 — 52,673 Financial Services provision for credit losses — 26,383 — 26,383 Selling, administrative and engineering expense 267,777 43,586 (3,746) 307,617 Restructuring expense 10,423 — — 10,423 1,256,961 122,642 (3,241) 1,376,362 Operating income 182,724 73,555 (22) 256,257 Other income, net 4,037 — — 4,037 Investment income 48,571 — (45,000) 3,571 Interest expense 7,784 — — 7,784 Income before provision for income taxes 227,548 73,555 (45,022) 256,081 Provision for income taxes 43,348 17,102 — 60,450 Net income $ 184,200 $ 56,453 $ (45,022) $ 195,631 Six months ended June 30, 2019 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Revenue: Motorcycles and Related Products $ 2,639,694 $ — $ (10,053) $ 2,629,641 Financial Services — 382,950 4,408 387,358 2,639,694 382,950 (5,645) 3,016,999 Costs and expenses: Motorcycles and Related Products cost of goods sold 1,827,464 — — 1,827,464 Financial Services interest expense — 104,997 — 104,997 Financial Services provision for credit losses — 60,874 — 60,874 Selling, administrative and engineering expense 495,769 86,174 (5,701) 576,242 Restructuring expense 24,053 — — 24,053 2,347,286 252,045 (5,701) 2,593,630 Operating income 292,408 130,905 56 423,369 Other income, net 8,697 — — 8,697 Investment income 99,929 — (90,000) 9,929 Interest expense 15,515 — — 15,515 Income before provision for income taxes 385,519 130,905 (89,944) 426,480 Provision for income taxes 71,905 30,999 — 102,904 Net income $ 313,614 $ 99,906 $ (89,944) $ 323,576 |
Balance Sheet | June 28, 2020 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ 446,425 $ 3,410,172 $ — $ 3,856,597 Accounts receivable, net 564,922 — (293,491) 271,431 Finance receivables, net — 1,901,620 — 1,901,620 Inventories, net 429,339 — — 429,339 Restricted cash — 189,712 — 189,712 Other current assets 119,591 66,387 (22,843) 163,135 1,560,277 5,567,891 (316,334) 6,811,834 Finance receivables, net — 5,078,371 — 5,078,371 Property, plant and equipment, net 766,546 50,443 — 816,989 Prepaid pension costs 73,589 — — 73,589 Goodwill 64,192 — — 64,192 Deferred income taxes 48,326 94,215 (975) 141,566 Lease assets 47,754 5,277 — 53,031 Other long-term assets 176,358 33,840 (93,618) 116,580 $ 2,737,042 $ 10,830,037 $ (410,927) $ 13,156,152 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 272,996 $ 337,957 $ (293,491) $ 317,462 Accrued liabilities 446,819 179,478 (22,087) 604,210 Short-term debt — 1,547,388 — 1,547,388 Current portion of long-term debt, net — 2,186,037 — 2,186,037 719,815 4,250,860 (315,578) 4,655,097 Long-term debt, net 743,635 5,744,864 — 6,488,499 Lease liabilities 31,652 4,742 — 36,394 Pension liabilities 57,033 — — 57,033 Postretirement healthcare liabilities 69,964 — — 69,964 Other long-term liabilities 178,210 44,873 2,377 225,460 Commitments and contingencies (Note 17) Shareholders’ equity 936,733 784,698 (97,726) 1,623,705 $ 2,737,042 $ 10,830,037 $ (410,927) $ 13,156,152 December 31, 2019 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ 470,649 $ 363,219 $ — $ 833,868 Accounts receivable, net 369,717 — (110,383) 259,334 Finance receivables, net — 2,272,522 — 2,272,522 Inventories, net 603,571 — — 603,571 Restricted cash — 64,554 — 64,554 Other current assets 110,145 59,665 (836) 168,974 1,554,082 2,759,960 (111,219) 4,202,823 Finance receivables, net — 5,101,844 — 5,101,844 Property, plant and equipment, net 794,131 53,251 — 847,382 Prepaid pension costs 56,014 — — 56,014 Goodwill 64,160 — — 64,160 Deferred income taxes 62,768 39,882 (1,446) 101,204 Lease assets 55,722 5,896 — 61,618 Other long-term assets 166,972 19,211 (93,069) 93,114 $ 2,753,849 $ 7,980,044 $ (205,734) $ 10,528,159 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 266,710 $ 138,053 $ (110,383) $ 294,380 Accrued liabilities 463,491 119,186 (389) 582,288 Short-term debt — 571,995 — 571,995 Current portion of long-term debt, net — 1,748,109 — 1,748,109 730,201 2,577,343 (110,772) 3,196,772 Long-term debt, net 743,296 4,381,530 — 5,124,826 Lease liabilities 38,783 5,664 — 44,447 Pension liabilities 56,138 — — 56,138 Postretirement healthcare liabilities 72,513 — — 72,513 Other long-term liabilities 186,252 40,609 2,603 229,464 Commitments and contingencies (Note 17) Shareholders’ equity 926,666 974,898 (97,565) 1,803,999 $ 2,753,849 $ 7,980,044 $ (205,734) $ 10,528,159 June 30, 2019 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ 560,446 $ 364,192 $ — $ 924,638 Accounts receivable, net 671,719 — (346,413) 325,306 Finance receivables, net — 2,362,125 — 2,362,125 Inventories, net 470,610 — — 470,610 Restricted cash — 82,248 — 82,248 Other current assets 102,956 44,278 — 147,234 1,805,731 2,852,843 (346,413) 4,312,161 Finance receivables, net — 5,232,280 — 5,232,280 Property, plant and equipment, net 801,871 54,127 — 855,998 Goodwill 64,449 — — 64,449 Deferred income taxes 96,914 38,928 (1,203) 134,639 Lease assets 48,415 6,498 — 54,913 Other long-term assets 157,061 20,159 (91,344) 85,876 $ 2,974,441 $ 8,204,835 $ (438,960) $ 10,740,316 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 302,137 $ 368,740 $ (346,413) $ 324,464 Accrued liabilities 497,019 118,256 630 615,905 Short-term debt — 405,695 — 405,695 Current portion of long-term debt, net — 2,396,188 — 2,396,188 799,156 3,288,879 (345,783) 3,742,252 Long-term debt, net 742,959 3,907,217 — 4,650,176 Lease liabilities 31,809 6,556 — 38,365 Pension liabilities 92,750 — — 92,750 Postretirement healthcare liabilities 92,539 — — 92,539 Other long-term liabilities 171,509 39,314 2,770 213,593 Commitments and contingencies (Note 17) Shareholders’ equity 1,043,719 962,869 (95,947) 1,910,641 $ 2,974,441 $ 8,204,835 $ (438,960) $ 10,740,316 |
Cash Flows | Six months ended June 28, 2020 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Cash flows from operating activities: Net income (loss) $ 55,462 $ 21,627 $ (99,611) $ (22,522) Adjustments to reconcile Net income (loss) to Net cash provided by operating activities: Depreciation and amortization 91,298 4,156 — 95,454 Amortization of deferred loan origination costs — 33,796 — 33,796 Amortization of financing origination fees 339 6,322 — 6,661 Provision for long-term employee benefits 15,704 — — 15,704 Employee benefit plan contributions and payments (3,678) — — (3,678) Stock compensation expense 4,019 549 — 4,568 Net change in wholesale finance receivables related to sales — — 166,049 166,049 Provision for credit losses — 170,598 — 170,598 Deferred income taxes 5,602 (24,592) (471) (19,461) Other, net (12,635) 3,730 (389) (9,294) Changes in current assets and liabilities: Accounts receivable, net (198,855) — 183,108 (15,747) Finance receivables - accrued interest and other — (2,985) — (2,985) Inventories, net 163,700 — — 163,700 Accounts payable and accrued liabilities (1,001) 214,864 (203,199) 10,664 Derivative financial instruments 1,622 (84) — 1,538 Other (9,999) 3,150 22,007 15,158 56,116 409,504 167,105 632,725 Net cash provided by operating activities 111,578 431,131 67,494 610,203 Cash flows from investing activities: Capital expenditures (65,677) (1,349) — (67,026) Origination of finance receivables — (3,033,567) 1,163,998 (1,869,569) Collections on finance receivables — 3,117,190 (1,331,492) 1,785,698 Other investing activities (381) — — (381) Net cash (used) provided by investing activities (66,058) 82,274 (167,494) (151,278) Six months ended June 28, 2020 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 1,396,602 — 1,396,602 Repayments of medium-term notes — (1,400,000) — (1,400,000) Proceeds from securitization debt — 2,064,450 — 2,064,450 Repayments of securitization debt — (369,613) — (369,613) Borrowings of asset-backed commercial paper — 225,187 — 225,187 Repayments of asset-backed commercial paper — (143,306) — (143,306) Net increase in unsecured commercial paper — 831,354 — 831,354 Net increase in credit facilities — 150,000 — 150,000 Deposits — 17,995 — 17,995 Dividends paid (61,917) (100,000) 100,000 (61,917) Repurchase of common stock (7,156) — — (7,156) Issuance of common stock under share-based plans 41 — — 41 Net cash (used) provided by financing activities (69,032) 2,672,669 100,000 2,703,637 Effect of exchange rate changes on cash, cash equivalents and restricted cash (712) 330 — (382) Net (decrease) increase in cash, cash equivalents and restricted cash $ (24,224) $ 3,186,404 $ — $ 3,162,180 Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash, beginning of period $ 470,649 $ 434,717 $ — $ 905,366 Net (decrease) increase in cash, cash equivalents and restricted cash (24,224) 3,186,404 — 3,162,180 Cash, cash equivalents and restricted cash, end of period $ 446,425 $ 3,621,121 $ — $ 4,067,546 Six months ended June 30, 2019 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Cash flows from operating activities: Net income $ 313,614 $ 99,906 $ (89,944) $ 323,576 Adjustments to reconcile Net income to Net cash provided by operating activities: Depreciation and amortization 121,026 4,360 — 125,386 Amortization of deferred loan origination costs — 38,036 — 38,036 Amortization of financing origination fees 335 4,187 — 4,522 Provision for long-term employee benefits 6,936 — — 6,936 Employee benefit plan contributions and payments (3,637) — — (3,637) Stock compensation expense 15,672 1,613 — 17,285 Net change in wholesale finance receivables related to sales — — (167,594) (167,594) Provision for credit losses — 60,874 — 60,874 Deferred income taxes 5,928 (236) (324) 5,368 Other, net (8,545) (1,876) (56) (10,477) Changes in current assets and liabilities: Accounts receivable, net (244,752) — 227,160 (17,592) Finance receivables - accrued interest and other — (4,963) — (4,963) Inventories, net 88,146 — — 88,146 Accounts payable and accrued liabilities 21,336 221,959 (208,925) 34,370 Derivative financial instruments 4,291 61 — 4,352 Other (15,573) 13,091 (5,874) (8,356) (8,837) 337,106 (155,613) 172,656 Net cash provided by operating activities 304,777 437,012 (245,557) 496,232 Cash flows from investing activities: Capital expenditures (81,698) (1,531) — (83,229) Origination of finance receivables — (3,936,208) 1,871,309 (2,064,899) Collections on finance receivables — 3,484,581 (1,715,752) 1,768,829 Sales and redemptions of marketable securities 10,007 — — 10,007 Acquisition of business (7,000) — — (7,000) Other investing activities 11,717 — — 11,717 Net cash used by investing activities (66,974) (453,158) 155,557 (364,575) Six months ended June 30, 2019 HDMC Entities HDFS Entities Consolidating Adjustments Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 546,655 — 546,655 Repayments of medium-term notes — (750,000) — (750,000) Proceeds from securitization debt — 1,021,353 — 1,021,353 Repayments of securitization debt — (113,806) — (113,806) Borrowings of asset-backed commercial paper — 23,373 — 23,373 Repayments of asset-backed commercial paper — (155,286) — (155,286) Net decrease in unsecured commercial paper — (728,606) — (728,606) Dividends paid (120,841) (90,000) 90,000 (120,841) Repurchase of common stock (104,621) — — (104,621) Issuance of common stock under share-based plans 833 — — 833 Net cash used by financing activities (224,629) (246,317) 90,000 (380,946) Effect of exchange rate changes on cash, cash equivalents and restricted cash 2,724 715 — 3,439 Net increase (decrease) in cash, cash equivalents and restricted cash $ 15,898 $ (261,748) $ — $ (245,850) Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash, beginning of period $ 544,548 $ 715,200 $ — $ 1,259,748 Net increase (decrease) in cash, cash equivalents and restricted cash 15,898 (261,748) — (245,850) Cash, cash equivalents and restricted cash, end of period $ 560,446 $ 453,452 $ — $ 1,013,898 |
Basis of Presentation and Use_3
Basis of Presentation and Use of Estimates (Details) | 6 Months Ended |
Jun. 28, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019 | Jun. 28, 2020 | Mar. 29, 2020 | Jan. 01, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Finance receivables | $ 7,572,947 | $ 7,391,006 | $ 7,789,401 | ||||
Allowance for credit losses on finance receivables | 198,581 | 411,015 | $ 335,496 | 194,996 | $ 190,872 | $ 189,885 | |
Deferred income taxes | 101,204 | 141,566 | 134,639 | ||||
Accrued Liabilities | 582,288 | ||||||
Retained earnings | 2,193,997 | $ 2,031,329 | $ 2,210,318 | ||||
Cumulative Effect, Period Of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Finance receivables | $ 0 | ||||||
Allowance for credit losses on finance receivables | $ 100,604 | 100,604 | |||||
Deferred income taxes | 22,484 | ||||||
Accrued Liabilities | 109 | ||||||
Retained earnings | (78,229) | ||||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Finance receivables | 7,572,947 | ||||||
Allowance for credit losses on finance receivables | 299,185 | ||||||
Deferred income taxes | 123,688 | ||||||
Accrued Liabilities | 582,397 | ||||||
Retained earnings | $ 2,115,768 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue | ||||
Total revenue | $ 865,227 | $ 1,632,619 | $ 2,163,471 | $ 3,016,999 |
Motorcycles and Related Products | ||||
Disaggregation of Revenue | ||||
Motorcycles revenue | 669,274 | 1,434,004 | 1,769,062 | 2,629,641 |
Motorcycles and Related Products | Motorcycles | ||||
Disaggregation of Revenue | ||||
Motorcycles revenue | 446,738 | 1,128,063 | 1,346,103 | 2,092,638 |
Motorcycles and Related Products | Parts & accessories | ||||
Disaggregation of Revenue | ||||
Motorcycles revenue | 168,708 | 221,258 | 303,393 | 380,961 |
Motorcycles and Related Products | General merchandise | ||||
Disaggregation of Revenue | ||||
Motorcycles revenue | 37,805 | 64,644 | 86,965 | 120,045 |
Motorcycles and Related Products | Licensing | ||||
Disaggregation of Revenue | ||||
Motorcycles revenue | 4,903 | 9,911 | 12,932 | 18,488 |
Motorcycles and Related Products | Other | ||||
Disaggregation of Revenue | ||||
Motorcycles revenue | 11,120 | 10,128 | 19,669 | 17,509 |
Financial services | ||||
Disaggregation of Revenue | ||||
Financial Services | 195,953 | 198,615 | 394,409 | 387,358 |
Financial services | Interest income | ||||
Disaggregation of Revenue | ||||
Financial Services | 168,261 | 167,077 | 338,262 | 326,881 |
Financial services | Other | ||||
Disaggregation of Revenue | ||||
Financial Services | $ 27,692 | $ 31,538 | $ 56,147 | $ 60,477 |
Revenue - Contract Liabilities
Revenue - Contract Liabilities (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Roll Forward] | |||
Balance, beginning of period | $ 29,745 | $ 32,568 | $ 29,055 |
Balance, end of period | $ 31,143 | $ 29,745 | $ 32,568 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Recognized deferred revenue | $ 7.9 | $ 6.2 | $ 14.7 | $ 12.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-29 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, remaining performance obligation period | 12 months | 12 months | ||
Unearned revenue to be recognized | $ 16.3 | $ 16.3 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, remaining performance obligation period | ||||
Unearned revenue to be recognized | $ 14.8 | $ 14.8 |
Restructuring Activities - Rest
Restructuring Activities - Restructuring Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Restructuring Cost and Reserve | ||||
Restructuring expense | $ 41,949 | $ 10,423 | $ 41,949 | $ 24,053 |
Motorcycles and Related Products | ||||
Restructuring Cost and Reserve | ||||
Restructuring expense | 41,005 | 10,423 | 41,005 | 24,053 |
Financial services | ||||
Restructuring Cost and Reserve | ||||
Restructuring expense | 944 | $ 0 | 944 | $ 0 |
2020 Restructuring Activities | ||||
Restructuring Cost and Reserve | ||||
Restructuring expense | 41,900 | 41,900 | ||
2020 Restructuring Activities | Motorcycles and Related Products | ||||
Restructuring Cost and Reserve | ||||
Restructuring expense | 41,000 | 41,000 | ||
2020 Restructuring Activities | Financial services | ||||
Restructuring Cost and Reserve | ||||
Restructuring expense | $ 900 | $ 900 |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | ||
Aug. 06, 2020USD ($) | Jun. 28, 2020USD ($)segment | Jun. 30, 2019USD ($) | Jun. 28, 2020USD ($)employeesegmentEmployees | Jun. 30, 2019USD ($) | Dec. 31, 2018Employees | Dec. 31, 2019USD ($) | |
Restructuring Cost and Reserve | |||||||
Restructuring expenses | $ 0 | $ 17,910 | $ 0 | $ 28,052 | |||
Employee Termination Benefits | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring expenses | 0 | 0 | |||||
Non-Current Asset Adjustments | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring expenses | $ 0 | 0 | |||||
Motorcycles and Related Products | Temporary Inefficiencies | Cost of Sales | |||||||
Restructuring Cost and Reserve | |||||||
Incremental cost of goods sold | 4,000 | 7,600 | |||||
HDMC Entities | Temporary Inefficiencies | Cost of Sales | |||||||
Restructuring Cost and Reserve | |||||||
Incremental cost of goods sold | $ 23,200 | ||||||
2020 Restructuring Activities | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring expenses | $ 94,000 | ||||||
Number of jobs eliminated | segment | 700 | ||||||
Expected number of employees eliminated | segment | 500 | 500 | |||||
2020 Restructuring Activities | Subsequent Event | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring expenses | $ 44,000 | ||||||
2020 Restructuring Activities | Employee Termination Benefits | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring expenses | $ 30,000 | ||||||
2020 Restructuring Activities | Non-Current Asset Adjustments | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring expenses | 26,000 | ||||||
2020 Restructuring Activities | Motorcycles and Related Products | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring expenses | 81,000 | ||||||
2020 Restructuring Activities | Financial services | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring expenses | $ 13,000 | ||||||
Manufacturing Optimization Plan | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring expenses | 17,028 | 25,156 | |||||
Manufacturing Optimization Plan | Kansas City, Missouri | |||||||
Restructuring Cost and Reserve | |||||||
Number of jobs eliminated | employee | 800 | ||||||
Manufacturing Optimization Plan | York, Pennsylvania | |||||||
Restructuring Cost and Reserve | |||||||
Number of jobs added | employee | 450 | ||||||
Manufacturing Optimization Plan | Adelaide, Australia | |||||||
Restructuring Cost and Reserve | |||||||
Number of jobs eliminated | Employees | 90 | ||||||
Manufacturing Optimization Plan | Employee Termination Benefits | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring expenses | 12,734 | 15,334 | |||||
Manufacturing Optimization Plan | Non-Current Asset Adjustments | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring expenses | 0 | 0 | |||||
Manufacturing Optimization Plan | Other Costs | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring expenses | 4,294 | 9,822 | |||||
Manufacturing Optimization Plan | Motorcycles and Related Products | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring and consolidation costs | $ 0 | $ 0 | $ 122,200 | ||||
Reorganization Plan | Employee Termination Benefits | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring expenses | $ 882 | $ 2,896 | |||||
Reorganization Plan | Motorcycles and Related Products | |||||||
Restructuring Cost and Reserve | |||||||
Restructuring and consolidation costs, positions eliminated | Employees | 70 |
Restructuring Activities - Re_2
Restructuring Activities - Restructuring Plan Reserve Recorded in Accrued Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | $ 0 | $ 23,639 | $ 0 | $ 28,498 |
Restructuring expense | 41,949 | 10,423 | 41,949 | 24,053 |
Utilized – cash | 0 | (17,910) | 0 | (28,052) |
Utilized – non cash | (2,358) | (6,282) | (2,358) | (14,661) |
Foreign currency changes | (23) | (42) | (23) | (10) |
Balance, end of period | 39,568 | 9,828 | 39,568 | 9,828 |
Manufacturing Optimization Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 22,588 | 25,037 | ||
Restructuring expense | 10,424 | 24,448 | ||
Utilized – cash | (17,028) | (25,156) | ||
Utilized – non cash | (6,282) | (14,661) | ||
Foreign currency changes | (18) | 16 | ||
Balance, end of period | 9,684 | 9,684 | ||
2020 Restructuring Activities | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring expense | 41,900 | 41,900 | ||
Utilized – cash | (94,000) | |||
Employee Termination Benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 0 | 0 | ||
Restructuring expense | 25,321 | 25,321 | ||
Utilized – cash | 0 | 0 | ||
Utilized – non cash | 0 | 0 | ||
Foreign currency changes | (23) | (23) | ||
Balance, end of period | 25,298 | 25,298 | ||
Employee Termination Benefits | Manufacturing Optimization Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 22,401 | 24,958 | ||
Restructuring expense | 8 | 17 | ||
Utilized – cash | (12,734) | (15,334) | ||
Utilized – non cash | 0 | 0 | ||
Foreign currency changes | (14) | 20 | ||
Balance, end of period | 9,661 | 9,661 | ||
Employee Termination Benefits | Reorganization Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 1,051 | 3,461 | ||
Restructuring expense | (1) | (395) | ||
Utilized – cash | (882) | (2,896) | ||
Utilized – non cash | 0 | 0 | ||
Foreign currency changes | (24) | (26) | ||
Balance, end of period | 144 | 144 | ||
Employee Termination Benefits | 2020 Restructuring Activities | ||||
Restructuring Reserve [Roll Forward] | ||||
Utilized – cash | (30,000) | |||
Contract Termination | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 0 | 0 | ||
Restructuring expense | 14,270 | 14,270 | ||
Utilized – cash | 0 | 0 | ||
Utilized – non cash | 0 | 0 | ||
Foreign currency changes | 0 | 0 | ||
Balance, end of period | 14,270 | 14,270 | ||
Contract Termination | 2020 Restructuring Activities | ||||
Restructuring Reserve [Roll Forward] | ||||
Utilized – cash | (38,000) | |||
Non-Current Asset Adjustments | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 0 | 0 | ||
Restructuring expense | 2,358 | 2,358 | ||
Utilized – cash | 0 | 0 | ||
Utilized – non cash | (2,358) | (2,358) | ||
Foreign currency changes | 0 | 0 | ||
Balance, end of period | $ 0 | 0 | ||
Non-Current Asset Adjustments | Manufacturing Optimization Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 0 | 0 | ||
Restructuring expense | 5,586 | 13,965 | ||
Utilized – cash | 0 | 0 | ||
Utilized – non cash | (5,586) | (13,965) | ||
Foreign currency changes | 0 | 0 | ||
Balance, end of period | 0 | 0 | ||
Non-Current Asset Adjustments | 2020 Restructuring Activities | ||||
Restructuring Reserve [Roll Forward] | ||||
Utilized – cash | $ (26,000) | |||
Other Costs | Manufacturing Optimization Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 187 | 79 | ||
Restructuring expense | 4,830 | 10,466 | ||
Utilized – cash | (4,294) | (9,822) | ||
Utilized – non cash | (696) | (696) | ||
Foreign currency changes | (4) | (4) | ||
Balance, end of period | $ 23 | $ 23 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax rate | 3.70% | 24.10% |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation Of Earnings Per Share Basic And Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2020 | Mar. 29, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Numerator: | ||||||
Net (loss) income | $ (92,217) | $ 69,695 | $ 195,631 | $ 127,945 | $ (22,522) | $ 323,576 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||
Basic weighted-average shares outstanding (in shares) | 153,199 | 158,813 | 153,103 | 159,061 | ||
Effect of dilutive securities - employee stock compensation plan (in shares) | 0 | 612 | 0 | 664 | ||
Diluted weighted-average shares outstanding (in shares) | 153,199 | 159,425 | 153,103 | 159,725 | ||
(Net loss) earnings per share: | ||||||
Basic (in dollars per share) | $ (0.60) | $ 1.23 | $ (0.15) | $ 2.03 | ||
Diluted (in dollars per share) | $ (0.60) | $ 1.23 | $ (0.15) | $ 2.03 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Shares considered anti-dilutive and excluded from computation | 2.4 | 1.2 | 2.4 | 1.2 |
Additional Balance Sheet and _3
Additional Balance Sheet and Cash Flow Information - Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Mutual funds | $ 48,725 | $ 52,575 | $ 51,543 |
Additional Balance Sheet and _4
Additional Balance Sheet and Cash Flow Information - Inventories, Net (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Inventory | |||
Raw materials and work in process | $ 199,300 | $ 235,433 | $ 161,828 |
Inventory at lower of FIFO cost or net realizable value | 485,765 | 659,997 | 529,249 |
Excess of FIFO over LIFO cost | (56,426) | (56,426) | (58,639) |
Total inventories, net | 429,339 | 603,571 | 470,610 |
Motorcycles | |||
Inventory | |||
Finished goods | 180,895 | 280,306 | 218,069 |
Parts & accessories and general merchandise | |||
Inventory | |||
Finished goods | $ 105,570 | $ 144,258 | $ 149,352 |
Additional Balance Sheet and _5
Additional Balance Sheet and Cash Flow Information - Reconciliation Of Net Income To Net Cash Used By Operating Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2020 | Mar. 29, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||||||
Net (loss) income | $ (92,217) | $ 69,695 | $ 195,631 | $ 127,945 | $ (22,522) | $ 323,576 |
Adjustments to reconcile Net (loss) income to Net cash provided by operating activities: | ||||||
Depreciation and amortization | 95,454 | 125,386 | ||||
Amortization of deferred loan origination costs | 33,796 | 38,036 | ||||
Amortization of financing origination fees | 6,661 | 4,522 | ||||
Provision for long-term employee benefits | 15,704 | 6,936 | ||||
Employee benefit plan contributions and payments | (3,678) | (3,637) | ||||
Stock compensation expense | 4,568 | 17,285 | ||||
Net change in wholesale finance receivables related to sales | 166,049 | (167,594) | ||||
Provision for credit losses | $ 91,179 | $ 26,383 | 170,598 | 60,874 | ||
Deferred income taxes | (19,461) | 5,368 | ||||
Other, net | (9,294) | (10,477) | ||||
Changes in current assets and liabilities: | ||||||
Accounts receivable, net | (15,747) | (17,592) | ||||
Finance receivables – accrued interest and other | (2,985) | (4,963) | ||||
Inventories, net | 163,700 | 88,146 | ||||
Accounts payable and accrued liabilities | 10,664 | 34,370 | ||||
Derivative financial instruments | 1,538 | 4,352 | ||||
Other | 15,158 | (8,356) | ||||
Total adjustments | 632,725 | 172,656 | ||||
Net cash provided by operating activities | $ 610,203 | $ 496,232 |
Finance Receivables - Finance R
Finance Receivables - Finance Receivables, Net (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable | ||||||
Financing receivable, gross | $ 7,391,006 | $ 7,572,947 | $ 7,789,401 | |||
Allowance for credit losses | (411,015) | $ (335,496) | (198,581) | (194,996) | $ (190,872) | $ (189,885) |
Total allowance for credit loss | 6,979,991 | 7,374,366 | 7,594,405 | |||
Retail | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Financing receivable, gross | 6,520,919 | 6,416,428 | 6,549,707 | |||
Allowance for credit losses | (389,758) | (311,368) | (188,501) | (186,722) | (181,426) | (182,098) |
Wholesale | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Financing receivable, gross | 870,087 | 1,156,519 | 1,239,694 | |||
Allowance for credit losses | $ (21,257) | $ (24,128) | $ (10,080) | $ (8,274) | $ (9,446) | $ (7,787) |
Finance Receivables - Changes I
Finance Receivables - Changes In Allowance For Credit Losses On Finance Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | $ 335,496 | $ 190,872 | $ 198,581 | $ 189,885 |
Provision for credit losses | 91,179 | 26,383 | 170,598 | 60,874 |
Charge-offs | (29,859) | (35,741) | (85,074) | (80,462) |
Recoveries | 14,199 | 13,482 | 26,306 | 24,699 |
Balance, end of period | 411,015 | 194,996 | 411,015 | 194,996 |
Cumulative Effect, Period Of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 100,604 | |||
Retail | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 311,368 | 181,426 | 188,501 | 182,098 |
Provision for credit losses | 94,050 | 27,555 | 164,467 | 60,387 |
Charge-offs | (29,859) | (35,741) | (85,074) | (80,462) |
Recoveries | 14,199 | 13,482 | 26,306 | 24,699 |
Balance, end of period | 389,758 | 186,722 | 389,758 | 186,722 |
Retail | Cumulative Effect, Period Of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 95,558 | |||
Wholesale | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 24,128 | 9,446 | 10,080 | 7,787 |
Provision for credit losses | (2,871) | (1,172) | 6,131 | 487 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | $ 21,257 | $ 8,274 | 21,257 | $ 8,274 |
Wholesale | Cumulative Effect, Period Of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | $ 5,046 |
Finance Receivables - Recorded
Finance Receivables - Recorded Investment in Retail Finance Receivables, by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Financing Receivable, Allowance for Credit Losses | |||
Total | $ 7,391,006 | $ 7,572,947 | $ 7,789,401 |
Retail | |||
Financing Receivable, Allowance for Credit Losses | |||
2020 | 1,476,766 | ||
2019 | 2,147,556 | ||
2018 | 1,386,111 | ||
2017 | 789,762 | ||
2016 | 447,469 | ||
2015 & Prior | 273,255 | ||
Total | 6,520,919 | 6,416,428 | 6,549,707 |
Retail | UNITED STATES | |||
Financing Receivable, Allowance for Credit Losses | |||
2020 | 1,428,533 | ||
2019 | 2,071,277 | ||
2018 | 1,336,846 | ||
2017 | 761,276 | ||
2016 | 434,086 | ||
2015 & Prior | 265,782 | ||
Total | 6,297,800 | ||
Retail | CANADA | |||
Financing Receivable, Allowance for Credit Losses | |||
2020 | 48,233 | ||
2019 | 76,279 | ||
2018 | 49,265 | ||
2017 | 28,486 | ||
2016 | 13,383 | ||
2015 & Prior | 7,473 | ||
Total | 223,119 | ||
Retail | Super prime | UNITED STATES | |||
Financing Receivable, Allowance for Credit Losses | |||
2020 | 486,327 | ||
2019 | 737,419 | ||
2018 | 474,280 | ||
2017 | 234,239 | ||
2016 | 114,496 | ||
2015 & Prior | 54,661 | ||
Total | 2,101,422 | ||
Retail | Super prime | CANADA | |||
Financing Receivable, Allowance for Credit Losses | |||
2020 | 34,715 | ||
2019 | 57,818 | ||
2018 | 35,786 | ||
2017 | 19,265 | ||
2016 | 8,508 | ||
2015 & Prior | 3,687 | ||
Total | 159,779 | ||
Retail | Prime | |||
Financing Receivable, Allowance for Credit Losses | |||
Total | 5,278,093 | 5,372,712 | |
Retail | Prime | UNITED STATES | |||
Financing Receivable, Allowance for Credit Losses | |||
2020 | 670,363 | ||
2019 | 973,046 | ||
2018 | 644,846 | ||
2017 | 388,039 | ||
2016 | 223,960 | ||
2015 & Prior | 131,367 | ||
Total | 3,031,621 | ||
Retail | Prime | CANADA | |||
Financing Receivable, Allowance for Credit Losses | |||
2020 | 11,548 | ||
2019 | 15,741 | ||
2018 | 11,598 | ||
2017 | 7,932 | ||
2016 | 4,093 | ||
2015 & Prior | 3,187 | ||
Total | 54,099 | ||
Retail | Sub-prime | |||
Financing Receivable, Allowance for Credit Losses | |||
Total | $ 1,138,335 | $ 1,176,995 | |
Retail | Sub-prime | UNITED STATES | |||
Financing Receivable, Allowance for Credit Losses | |||
2020 | 271,843 | ||
2019 | 360,812 | ||
2018 | 217,720 | ||
2017 | 138,998 | ||
2016 | 95,630 | ||
2015 & Prior | 79,754 | ||
Total | 1,164,757 | ||
Retail | Sub-prime | CANADA | |||
Financing Receivable, Allowance for Credit Losses | |||
2020 | 1,970 | ||
2019 | 2,720 | ||
2018 | 1,881 | ||
2017 | 1,289 | ||
2016 | 782 | ||
2015 & Prior | 599 | ||
Total | $ 9,241 |
Finance Receivables - Recorde_2
Finance Receivables - Recorded Investment Of Retail and Wholesale Finance Receivables By Credit Quality Indicator (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Financing Receivable, Recorded Investment | |||
Total | $ 7,391,006 | $ 7,572,947 | $ 7,789,401 |
Wholesale | |||
Financing Receivable, Recorded Investment | |||
2020 | 531,266 | ||
2019 | 286,627 | ||
2018 | 32,181 | ||
2017 | 9,135 | ||
2016 | 6,031 | ||
2015 & Prior | 4,847 | ||
Total | 870,087 | 1,156,519 | 1,239,694 |
Wholesale | Non-Performing | |||
Financing Receivable, Recorded Investment | |||
2020 | 0 | ||
2019 | 2,376 | ||
2018 | 1,774 | ||
2017 | 107 | ||
2016 | 25 | ||
2015 & Prior | 43 | ||
Total | 4,325 | ||
Wholesale | Doubtful | |||
Financing Receivable, Recorded Investment | |||
2020 | 579 | ||
2019 | 1,009 | ||
2018 | 188 | ||
2017 | 0 | ||
2016 | 0 | ||
2015 & Prior | 0 | ||
Total | 1,776 | 11,664 | 6,850 |
Wholesale | Substandard | |||
Financing Receivable, Recorded Investment | |||
2020 | 944 | ||
2019 | 966 | ||
2018 | 53 | ||
2017 | 0 | ||
2016 | 0 | ||
2015 & Prior | 0 | ||
Total | 1,963 | 6,122 | 7,643 |
Wholesale | Special Mention | |||
Financing Receivable, Recorded Investment | |||
2020 | 5,345 | ||
2019 | 5,281 | ||
2018 | 564 | ||
2017 | 0 | ||
2016 | 0 | ||
2015 & Prior | 1,805 | ||
Total | 12,995 | 16,125 | 12,642 |
Wholesale | Medium Risk | |||
Financing Receivable, Recorded Investment | |||
2020 | 6,690 | ||
2019 | 3,587 | ||
2018 | 301 | ||
2017 | 63 | ||
2016 | 0 | ||
2015 & Prior | 0 | ||
Total | 10,641 | 16,800 | 6,170 |
Wholesale | Low Risk | |||
Financing Receivable, Recorded Investment | |||
2020 | 517,708 | ||
2019 | 273,408 | ||
2018 | 29,301 | ||
2017 | 8,965 | ||
2016 | 6,006 | ||
2015 & Prior | 2,999 | ||
Total | $ 838,387 | $ 1,105,808 | $ 1,206,389 |
Finance Receivables - Additiona
Finance Receivables - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable | ||||
Reversal of accrued interest against interest income | $ 5 | $ 11.4 | ||
Retail | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Finance receivables, gross, 90 days or more past due and accruing interest | 16 | 16 | $ 48 | $ 30.4 |
Wholesale | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Finance receivables, gross, 90 days or more past due and accruing interest | $ 3.5 | $ 3.5 | $ 2.6 | $ 2.1 |
Finance Receivables - Aging Of
Finance Receivables - Aging Of Past Due Finance Receivables Including Non Accrual Status Finance Receivables (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, past due | $ 101,017 | $ 248,601 | $ 193,155 |
Total | 7,391,006 | 7,572,947 | 7,789,401 |
Current | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, not past due | 7,289,989 | 7,324,346 | 7,596,246 |
31-60 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, past due | 64,451 | 143,624 | 120,347 |
61-90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, past due | 17,044 | 54,379 | 40,335 |
Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, past due | 19,522 | 50,598 | 32,473 |
Retail | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, past due | 95,841 | 244,498 | 190,208 |
Total | 6,520,919 | 6,416,428 | 6,549,707 |
Retail | Current | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, not past due | 6,425,078 | 6,171,930 | 6,359,499 |
Retail | 31-60 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, past due | 63,190 | 142,479 | 119,770 |
Retail | 61-90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, past due | 16,631 | 53,995 | 40,015 |
Retail | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, past due | 16,020 | 48,024 | 30,423 |
Wholesale | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, past due | 5,176 | 4,103 | 2,947 |
Total | 870,087 | 1,156,519 | 1,239,694 |
Wholesale | Current | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, not past due | 864,911 | 1,152,416 | 1,236,747 |
Wholesale | 31-60 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, past due | 1,261 | 1,145 | 577 |
Wholesale | 61-90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, past due | 413 | 384 | 320 |
Wholesale | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Financing receivable, past due | $ 3,502 | $ 2,574 | $ 2,050 |
Finance Receivables - Allowance
Finance Receivables - Allowance For Credit Losses And Finance Receivables By Portfolio, Individually And Collectively Evaluated For Impairment (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | $ 2,100 | $ 0 | ||||
Collectively evaluated for impairment | 196,481 | 194,996 | ||||
Total allowance for credit losses | $ 411,015 | $ 335,496 | 198,581 | 194,996 | $ 190,872 | $ 189,885 |
Individually evaluated for impairment | 4,601 | 0 | ||||
Collectively evaluated for impairment | 7,568,346 | 7,789,401 | ||||
Total | 7,391,006 | 7,572,947 | 7,789,401 | |||
Retail | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 188,501 | 186,722 | ||||
Total allowance for credit losses | 389,758 | 311,368 | 188,501 | 186,722 | 181,426 | 182,098 |
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 6,416,428 | 6,549,707 | ||||
Total | 6,520,919 | 6,416,428 | 6,549,707 | |||
Wholesale | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | 2,100 | 0 | ||||
Collectively evaluated for impairment | 7,980 | 8,274 | ||||
Total allowance for credit losses | 21,257 | $ 24,128 | 10,080 | 8,274 | $ 9,446 | $ 7,787 |
Individually evaluated for impairment | 4,601 | 0 | ||||
Collectively evaluated for impairment | 1,151,918 | 1,239,694 | ||||
Total | $ 870,087 | $ 1,156,519 | $ 1,239,694 |
Finance Receivables - Wholesale
Finance Receivables - Wholesale Finance Receivables Impaired Under ASC 310 (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 28, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | ||
No related allowance recorded, Recorded Investment | $ 0 | $ 0 |
Related allowance recorded, Recorded Investment | 4,325 | 4,994 |
Total Recorded Investment | 4,325 | 4,994 |
No related allowance recorded, Unpaid Principal Balance | 0 | |
Related allowance recorded, Unpaid Principal Balance | 4,601 | |
Total Unpaid Principal Balance | 4,601 | |
Related allowance recorded, Related Allowance | 2,100 | |
No related allowance recorded, Average Recorded Investment | 0 | |
Related allowance recorded, Average Recorded Investment | 4,976 | |
Total Average Recorded Investment | 4,976 | |
No related allowance recorded, Interest Income Recognized | 0 | 0 |
Related allowance recorded, Interest Income Recognized | 0 | 0 |
Total Interest Income Recognized | $ 0 | $ 0 |
Goodwill, Intangible and Long_2
Goodwill, Intangible and Long-Lived Assets (Details) $ in Millions | Mar. 04, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Total consideration of the transaction | $ 14.9 |
Cash paid at acquisition | 7 |
Acquired goodwill | 9.5 |
Intangible assets acquired | $ 5.3 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Derivative Instrument Fair Value (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivatives, Fair Value | |||
Notional Value | $ 2,177,795 | $ 1,995,717 | $ 1,396,363 |
Designated as Hedging Instrument | Cash Flow Hedging | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 27,396 | 11,831 | 6,638 |
Designated as Hedging Instrument | Cash Flow Hedging | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 40,681 | 12,922 | 15,479 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency contracts | |||
Derivatives, Fair Value | |||
Notional Value | 359,754 | 434,321 | 495,736 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency contracts | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 3,108 | 3,505 | 6,638 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency contracts | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 1,537 | 3,661 | 3,490 |
Designated as Hedging Instrument | Cash Flow Hedging | Commodity contracts | |||
Derivatives, Fair Value | |||
Notional Value | 581 | 616 | 627 |
Designated as Hedging Instrument | Cash Flow Hedging | Commodity contracts | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 0 | 0 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Commodity contracts | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 49 | 80 | 69 |
Designated as Hedging Instrument | Cash Flow Hedging | Cross-currency swap | |||
Derivatives, Fair Value | |||
Notional Value | 1,367,460 | 660,780 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Cross-currency swap | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 24,288 | 8,326 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Cross-currency swap | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 29,975 | 0 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | |||
Derivatives, Fair Value | |||
Notional Value | 450,000 | 900,000 | 900,000 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 0 | 0 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 9,120 | 9,181 | 11,920 |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value | |||
Notional Value | 1,458,595 | 604,389 | 806,563 |
Not Designated as Hedging Instrument | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 1,661 | 818 | 282 |
Not Designated as Hedging Instrument | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 738 | 1,012 | 2,076 |
Not Designated as Hedging Instrument | Foreign currency contracts | |||
Derivatives, Fair Value | |||
Notional Value | 173,805 | 220,139 | 317,344 |
Not Designated as Hedging Instrument | Foreign currency contracts | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 1,295 | 721 | 273 |
Not Designated as Hedging Instrument | Foreign currency contracts | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 247 | 865 | 1,816 |
Not Designated as Hedging Instrument | Commodity contracts | |||
Derivatives, Fair Value | |||
Notional Value | 7,401 | 8,270 | 7,710 |
Not Designated as Hedging Instrument | Commodity contracts | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 214 | 95 | 5 |
Not Designated as Hedging Instrument | Commodity contracts | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | 491 | 147 | 260 |
Not Designated as Hedging Instrument | Interest rate cap | |||
Derivatives, Fair Value | |||
Notional Value | 1,277,389 | 375,980 | 481,509 |
Not Designated as Hedging Instrument | Interest rate cap | Other Current Assets | |||
Derivatives, Fair Value | |||
Other Current Assets | 152 | 2 | 4 |
Not Designated as Hedging Instrument | Interest rate cap | Accrued Liabilities | |||
Derivatives, Fair Value | |||
Accrued Liabilities | $ 0 | $ 0 | $ 0 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Amount Of Gains And Losses Related To Derivative Financial Instruments (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) | ||||
Gain/(Loss) Recognized in OCI | $ 30,329 | $ (8,791) | $ (7,843) | $ (7,614) |
Gain/(Loss) Reclassified from AOCL into Income | 38,592 | 6,708 | 25,711 | 8,423 |
Foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain/(Loss) Recognized in OCI | (4,062) | (2,865) | 12,837 | 1,287 |
Gain/(Loss) Reclassified from AOCL into Income | 5,305 | 7,668 | 8,705 | 10,121 |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain/(Loss) Recognized in OCI | (28) | (70) | (157) | (40) |
Gain/(Loss) Reclassified from AOCL into Income | (53) | (7) | (188) | (17) |
Cross-currency swap | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain/(Loss) Recognized in OCI | 35,595 | 0 | (14,014) | 0 |
Gain/(Loss) Reclassified from AOCL into Income | 36,915 | 0 | 24,009 | 0 |
Treasury rate locks | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain/(Loss) Recognized in OCI | 0 | 0 | 0 | 0 |
Gain/(Loss) Reclassified from AOCL into Income | (122) | (123) | (246) | (245) |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain/(Loss) Recognized in OCI | (1,176) | (5,856) | (6,509) | (8,861) |
Gain/(Loss) Reclassified from AOCL into Income | $ (3,453) | $ (830) | $ (6,569) | $ (1,436) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Amount Of Gains And Losses Recognized In Income Related To Derivative Financial Instruments (Details) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Derivative | ||||
Motorcycles and Related Products cost of goods sold | $ 561,646 | $ 979,266 | $ 1,342,514 | $ 1,827,464 |
Selling, administrative and engineering expense | 224,365 | 307,617 | 502,336 | 576,242 |
Interest expense | 7,769 | 7,784 | 15,524 | 15,515 |
Financial Services interest expense | 62,187 | 52,673 | 114,660 | 104,997 |
Expected to be reclassified over the next twelve months | (16,800) | |||
Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative | ||||
Gain/(Loss) Reclassified from AOCL into Income | 38,592 | 6,708 | 25,711 | 8,423 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency contracts | ||||
Derivative | ||||
Gain/(Loss) Reclassified from AOCL into Income | 5,305 | 7,668 | 8,705 | 10,121 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency contracts | Motorcycle, Cost of Goods Sold | ||||
Derivative | ||||
Gain/(Loss) Reclassified from AOCL into Income | 5,305 | 7,668 | 8,705 | 10,121 |
Cash Flow Hedging | Designated as Hedging Instrument | Commodity contracts | ||||
Derivative | ||||
Gain/(Loss) Reclassified from AOCL into Income | (53) | (7) | (188) | (17) |
Cash Flow Hedging | Designated as Hedging Instrument | Commodity contracts | Motorcycle, Cost of Goods Sold | ||||
Derivative | ||||
Gain/(Loss) Reclassified from AOCL into Income | (53) | (7) | (188) | (17) |
Cash Flow Hedging | Designated as Hedging Instrument | Cross-currency swap | ||||
Derivative | ||||
Gain/(Loss) Reclassified from AOCL into Income | 36,915 | 0 | 24,009 | 0 |
Cash Flow Hedging | Designated as Hedging Instrument | Cross-currency swap | Selling, General and Administrative Expenses | ||||
Derivative | ||||
Gain/(Loss) Reclassified from AOCL into Income | 36,915 | 24,009 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Treasury rate locks | ||||
Derivative | ||||
Gain/(Loss) Reclassified from AOCL into Income | (122) | (123) | (246) | (245) |
Cash Flow Hedging | Designated as Hedging Instrument | Treasury rate locks | Interest Expense | ||||
Derivative | ||||
Gain/(Loss) Reclassified from AOCL into Income | (90) | (91) | (181) | (181) |
Cash Flow Hedging | Designated as Hedging Instrument | Treasury rate locks | Financial Services interest expense | ||||
Derivative | ||||
Gain/(Loss) Reclassified from AOCL into Income | (32) | (32) | (65) | (64) |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | ||||
Derivative | ||||
Gain/(Loss) Reclassified from AOCL into Income | (3,453) | (830) | (6,569) | (1,436) |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Financial Services interest expense | ||||
Derivative | ||||
Gain/(Loss) Reclassified from AOCL into Income | $ (3,453) | $ (830) | $ (6,569) | $ (1,436) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Gain Loss Recognized In Income On Hedged Derivatives (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Derivative | ||||
Amount of Gain/(Loss) Recognized in Income | $ (391) | $ (1,455) | $ 252 | $ (251) |
Foreign currency contracts | Cost of Sales | ||||
Derivative | ||||
Amount of Gain/(Loss) Recognized in Income | (522) | (1,004) | 1,672 | (117) |
Commodity contracts | Cost of Sales | ||||
Derivative | ||||
Amount of Gain/(Loss) Recognized in Income | 558 | (310) | (993) | 7 |
Interest rate cap | Cost of Sales | ||||
Derivative | ||||
Amount of Gain/(Loss) Recognized in Income | $ (427) | $ (141) | $ (427) | $ (141) |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 5 years | 5 years | ||
Termination period | 1 year | |||
Operating lease expense | $ 6.5 | $ 6.4 | $ 13.8 | $ 12.7 |
Variable lease cost | $ 1.3 | $ 2 | $ 3.2 | $ 3.2 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 12 years | 12 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Assets | |||
Lease assets | $ 53,031 | $ 61,618 | $ 54,913 |
Liabilities | |||
Accrued liabilities | 18,154 | 19,013 | 18,133 |
Lease liabilities | 36,394 | 44,447 | 38,365 |
Lease liability | $ 54,548 | $ 63,460 | $ 56,498 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent |
Leases - Future Maturities of L
Leases - Future Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
2020 | $ 10,146 | ||
2021 | 18,388 | ||
2022 | 13,410 | ||
2023 | 6,543 | ||
2024 | 4,556 | ||
Thereafter | 4,825 | ||
Future lease payments | 57,868 | ||
Present value discount | (3,320) | ||
Lease liabilities | $ 54,548 | $ 63,460 | $ 56,498 |
Leases - Other Lease Informatio
Leases - Other Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Cash outflows for amounts included in the measurement of lease liabilities | $ 5,242 | $ 4,510 | $ 10,619 | $ 9,871 | |
Right-of-use assets obtained in exchange for lease obligations | $ 1,096 | $ 3,964 | $ 1,653 | $ 4,262 | |
Weighted average remaining lease term | 4 years 10 days | 4 years 5 months 8 days | 4 years 10 days | 4 years 5 months 8 days | 4 years 8 months 4 days |
Weighted-average discount rate | 3.30% | 3.20% | 3.30% | 3.20% | 2.10% |
Debt - Debt With Contractual Te
Debt - Debt With Contractual Term Less Than One Year (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Short-term Debt | |||
Short-term debt | $ 1,547,388 | $ 571,995 | $ 405,695 |
Unsecured commercial paper | |||
Short-term Debt | |||
Short-term debt | 1,397,388 | 571,995 | 405,695 |
364-day credit facility borrowings | |||
Short-term Debt | |||
Short-term debt | $ 150,000 | $ 0 | $ 0 |
Debt - Debt With A Contractual
Debt - Debt With A Contractual Term Greater Than One Year (Details) $ in Thousands | Jun. 28, 2020USD ($) | Jun. 28, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Jun. 30, 2019USD ($) |
Debt Instrument | |||||
Long-term debt | $ 8,674,536 | $ 6,872,935 | $ 7,046,364 | ||
Current portion of long-term debt, net | (2,186,037) | (1,748,109) | (2,396,188) | ||
Long-term debt, net | 6,488,499 | 5,124,826 | 4,650,176 | ||
Secured Debt | |||||
Debt Instrument | |||||
Less: unamortized discount and debt issuance costs | (11,422) | (2,573) | (3,541) | ||
Long-term debt | 3,146,608 | 1,369,512 | 1,615,745 | ||
Secured Debt | Asset-backed Canadian commercial paper conduit facility | |||||
Debt Instrument | |||||
Long-term debt, gross | 144,661 | 114,693 | 148,740 | ||
Secured Debt | Asset-backed U.S. commercial paper conduit facilities | |||||
Debt Instrument | |||||
Long-term debt, gross | 540,840 | 490,427 | 464,136 | ||
Secured Debt | Asset-backed securitization debt | |||||
Debt Instrument | |||||
Long-term debt, gross | 2,472,529 | 766,965 | 1,006,410 | ||
Medium-term notes | |||||
Debt Instrument | |||||
Long-term debt, gross | 4,784,293 | 4,760,127 | 4,687,660 | ||
Less: unamortized discount and debt issuance costs | $ (19,332) | (12,809) | (12,340) | ||
Medium-term notes | Due in 2019, issued September 2014 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 2.40% | 2.40% | |||
Long-term debt, gross | $ 0 | 0 | 600,000 | ||
Medium-term notes | Due in 2020, issued February 2015 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 2.15% | 2.15% | |||
Long-term debt, gross | $ 0 | 600,000 | 600,000 | ||
Medium-term notes | Due in 2020, issued May 2018 | |||||
Debt Instrument | |||||
Long-term debt, gross | $ 0 | 450,000 | 450,000 | ||
Medium-term notes | Due in 2020, issued March 2017 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 2.40% | 2.40% | |||
Long-term debt, gross | $ 0 | 350,000 | 350,000 | ||
Medium-term notes | Due in 2021, issued January 2016 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 2.85% | 2.85% | |||
Long-term debt, gross | $ 600,000 | 600,000 | 600,000 | ||
Medium-term notes | Due in 2021, issued November 2018 | |||||
Debt Instrument | |||||
Long-term debt, gross | $ 450,000 | 450,000 | 450,000 | ||
Medium-term notes | Due in 2021, issued May 2018 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 3.55% | 3.55% | |||
Long-term debt, gross | $ 350,000 | 350,000 | 350,000 | ||
Medium-term notes | Due in 2022, issued February 2019 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 4.05% | 4.05% | |||
Long-term debt, gross | $ 550,000 | 550,000 | 550,000 | ||
Medium-term notes | Due in 2022, issued June 2017 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 2.55% | 2.55% | |||
Long-term debt, gross | $ 400,000 | 400,000 | 400,000 | ||
Medium-term notes | Due in 2023, issued February 2018 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 3.35% | 3.35% | |||
Long-term debt, gross | $ 350,000 | 350,000 | 350,000 | ||
Medium-term notes | Due in 2023, issued May 2020 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 4.94% | 4.94% | |||
Long-term debt, gross | $ 729,885 | € 650,000,000 | 0 | 0 | |
Medium-term notes | Due in 2024, issued November 2019 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 3.14% | 3.14% | |||
Long-term debt, gross | $ 673,740 | € 600 | 672,936 | € 600 | 0 |
Medium-term notes | Due in 2025, issued June 2020 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 3.35% | 3.35% | |||
Long-term debt, gross | $ 700,000 | 0 | 0 | ||
Senior notes | |||||
Debt Instrument | |||||
Less: unamortized discount and debt issuance costs | (6,365) | (6,704) | (7,041) | ||
Long-term debt | $ 743,635 | 743,296 | 742,959 | ||
Senior notes | Due in 2025, issued July 2015 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 3.50% | 3.50% | |||
Long-term debt, gross | $ 450,000 | 450,000 | 450,000 | ||
Senior notes | Due in 2045, issued July 2015 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 4.625% | 4.625% | |||
Long-term debt, gross | $ 300,000 | 300,000 | 300,000 | ||
Unsecured Debt | |||||
Debt Instrument | |||||
Long-term debt | $ 5,527,928 | $ 5,503,423 | $ 5,430,619 | ||
Unsecured Debt | Due in 2020, issued May 2018 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 0.50% | 0.50% | |||
Unsecured Debt | Due in 2021, issued November 2018 | |||||
Debt Instrument | |||||
Debt instrument, stated percentage | 0.94% | 0.94% |
Asset-Backed Financing - Assets
Asset-Backed Financing - Assets And Liabilities Of Variable Interest Entities (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Apr. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Unconsolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | $ 27,400 | |||
Finance receivables | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | $ 3,584,656 | $ 1,592,333 | $ 1,779,812 | |
Transfers accounted for as secured borrowings, assets, allowance for credit losses, carrying amount | (209,242) | (43,797) | (50,135) | |
Finance receivables | Asset-backed securitizations | Consolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 2,780,217 | 826,047 | 1,106,973 | |
Transfers accounted for as secured borrowings, assets, allowance for credit losses, carrying amount | (166,635) | (24,935) | (32,426) | |
Finance receivables | Asset-backed U.S. commercial paper conduit facilities | Consolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 584,153 | 533,587 | 500,895 | |
Transfers accounted for as secured borrowings, assets, allowance for credit losses, carrying amount | (34,938) | (16,076) | (14,651) | |
Finance receivables | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 220,286 | 232,699 | 171,944 | |
Transfers accounted for as secured borrowings, assets, allowance for credit losses, carrying amount | (7,669) | (2,786) | (3,058) | |
Restricted cash | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 210,949 | 71,498 | 89,260 | |
Restricted cash | Asset-backed securitizations | Consolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 161,257 | 36,037 | 52,593 | |
Restricted cash | Asset-backed U.S. commercial paper conduit facilities | Consolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 38,491 | 27,775 | 26,843 | |
Restricted cash | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 11,201 | 7,686 | 9,824 | |
Other assets | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 2,572 | 2,716 | 1,805 | |
Other assets | Asset-backed securitizations | Consolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 1,235 | 778 | 277 | |
Other assets | Asset-backed U.S. commercial paper conduit facilities | Consolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 1,195 | 1,642 | 1,256 | |
Other assets | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 142 | 296 | 272 | |
Total assets | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 3,588,935 | 1,622,750 | 1,820,742 | |
Total assets | Asset-backed securitizations | Consolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 2,776,074 | 837,927 | 1,127,417 | |
Total assets | Asset-backed U.S. commercial paper conduit facilities | Consolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 588,901 | 546,928 | 514,343 | |
Total assets | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, assets, carrying amount | 223,960 | 237,895 | 178,982 | |
Asset-backed debt | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | 3,146,608 | 1,369,512 | 1,615,745 | |
Asset-backed debt | Asset-backed securitizations | Consolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | 2,461,107 | 764,392 | 1,002,869 | |
Asset-backed debt | Asset-backed U.S. commercial paper conduit facilities | Consolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | 540,840 | 490,427 | 464,136 | |
Asset-backed debt | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings | ||||
Transfers accounts for as secured borrowings, associated liabilities, carrying amount | $ 144,661 | $ 114,693 | $ 148,740 |
Asset-Backed Financing - Additi
Asset-Backed Financing - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 28, 2020USD ($) | Mar. 29, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 25, 2016USD ($) | Jun. 28, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 28, 2020CAD ($) | Apr. 30, 2020USD ($) | Nov. 30, 2019USD ($) | Nov. 30, 2018USD ($) | |
Variable Interest Entity | |||||||||||
Proceeds from securitization debt | $ 2,064,450,000 | $ 1,021,353,000 | |||||||||
Servicing and ancillary fees | 100,000 | 300,000 | |||||||||
Unconsolidated VIEs | |||||||||||
Variable Interest Entity | |||||||||||
Principal balance of finance receivable | $ 301,800,000 | ||||||||||
Gain on sale of finance receivable | 9,300,000 | ||||||||||
Cash proceeds from sale of financial asset | $ 312,600,000 | ||||||||||
Off-balance sheet asset-backed securitization VIE repurchase | $ 27,400,000 | ||||||||||
Secured Debt | Asset-backed U.S. commercial paper conduit facility VIE, facility one | Consolidated VIEs | U.S. Line of Credit | |||||||||||
Variable Interest Entity | |||||||||||
Line of credit, maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 | |||||||||
Line of credit facility, remaining borrowing capacity | 300,000,000 | ||||||||||
Secured Debt | Asset-backed U.S. commercial paper conduit facility VIE, facility two | Consolidated VIEs | U.S. Line of Credit | |||||||||||
Variable Interest Entity | |||||||||||
Line of credit, maximum borrowing capacity | $ 600,000,000 | $ 600,000,000 | |||||||||
Secured Debt | Asset-backed U.S. commercial paper conduit facilities | Consolidated VIEs | U.S. Line of Credit | |||||||||||
Variable Interest Entity | |||||||||||
Transfers on finance receivables | $ 1,840,500,000 | $ 580,200,000 | $ 1,120,000,000 | $ 0 | 2,420,700,000 | 1,120,000,000 | |||||
Proceeds | 1,550,200,000 | 525,000,000 | 1,025,000,000 | 0 | 2,075,200,000 | 1,025,000,000 | |||||
Proceeds, net | 1,541,800,000 | 522,700,000 | 1,021,300,000 | 0 | $ 2,064,500,000 | 1,021,300,000 | |||||
Length of option | 5 years | ||||||||||
Amount transferred to receivables | 0 | 195,300,000,000 | 0 | 0 | $ 195,300,000,000 | 0 | |||||
Proceeds from transfer of finance receivables | 0 | 163,600,000,000 | 0 | 0 | $ 163,600,000,000 | 0 | |||||
Secured Debt | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs | 364-day credit facility borrowings | |||||||||||
Variable Interest Entity | |||||||||||
Line of credit, maximum borrowing capacity | $ 220,000,000 | ||||||||||
Length of option | 5 years | ||||||||||
Amount transferred to receivables | 0 | 77,900,000,000 | 28,200,000 | 0 | $ 77,900,000,000 | 28,200,000 | |||||
Proceeds from transfer of finance receivables | 0 | $ 61,600,000,000 | $ 23,400,000 | $ 0 | 61,600,000,000 | 23,400,000 | |||||
VIE, maximum loss exposure, amount | $ 79,300,000 | 79,300,000 | |||||||||
Secured Debt | Asset-backed securitization 2 | Consolidated VIEs | Asset-backed Securities, Securitized Loans and Receivables | |||||||||||
Variable Interest Entity | |||||||||||
Proceeds from securitization debt | $ 0 | $ 0 |
Asset-Backed Financing - Servic
Asset-Backed Financing - Servicing Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |||||
Current unpaid principal balance - On-balance sheet serviced retail motorcycle finance receivables | $ 6,362,139 | $ 6,441,261 | $ 6,362,139 | $ 6,441,261 | $ 6,274,551 |
Current unpaid balance - Off-balance sheet retail motorcycle finance receivables | 0 | 54,699 | 0 | 54,699 | 35,197 |
Current unpaid balance - Total serviced retail motorcycle finance receivables | 6,362,139 | 6,495,960 | 6,362,139 | 6,495,960 | 6,309,748 |
Delinquent unpaid balance - On-balance sheet serviced retail motorcycle finance receivables | 95,841 | 190,208 | 95,841 | 190,208 | 244,498 |
Delinquent unpaid balance - Off-balance sheet serviced retail motorcycle finance receivables | 0 | 1,065 | 0 | 1,065 | 885 |
Delinquent unpaid balance - Total serviced retail motorcycle finance receivables | 95,841 | 191,273 | 95,841 | 191,273 | $ 245,383 |
Credit losses, net of recoveries - On-balance sheet serviced retail motorcycle finance receivables | 15,660 | 22,259 | 58,768 | 55,763 | |
Credit losses, net of recoveries - Off-balance sheet serviced retail motorcycle finance receivables | 0 | 161 | 13 | 392 | |
Credit losses, net of recoveries - Total serviced retail motorcycle finance receivables | $ 15,660 | $ 22,420 | $ 58,781 | $ 56,155 |
Fair Value - Summary of Assets
Fair Value - Summary of Assets And Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Assets: | |||
Cash equivalents | $ 3,572,900 | $ 624,832 | $ 619,600 |
Marketable securities | 48,725 | 52,575 | 51,543 |
Derivative financial instruments | 29,057 | 12,649 | 6,920 |
Assets, fair value | 3,650,682 | 690,056 | 678,063 |
Liabilities: | |||
Derivative financial instruments | 41,419 | 13,934 | 17,555 |
Level 1 | |||
Assets: | |||
Cash equivalents | 3,522,900 | 459,885 | 619,600 |
Marketable securities | 48,725 | 52,575 | 51,543 |
Derivative financial instruments | 0 | 0 | 0 |
Assets, fair value | 3,571,625 | 512,460 | 671,143 |
Liabilities: | |||
Derivative financial instruments | 0 | 0 | 0 |
Level 2 | |||
Assets: | |||
Cash equivalents | 50,000 | 164,947 | 0 |
Marketable securities | 0 | 0 | 0 |
Derivative financial instruments | 29,057 | 12,649 | 6,920 |
Assets, fair value | 79,057 | 177,596 | 6,920 |
Liabilities: | |||
Derivative financial instruments | $ 41,419 | $ 13,934 | $ 17,555 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Millions | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Fair Value Adjustment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Repossessed inventory | $ 2.6 | $ 11.9 | $ 5.9 |
Level 2 | Estimate of Fair Value Measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Repossessed inventory | $ 15.8 | $ 21.4 | $ 19.4 |
Fair Value - Summary of Fair Va
Fair Value - Summary of Fair Value and Carrying Value of Company Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Fair Value | |||
ASSETS | |||
Finance receivables, net | $ 7,143,575 | $ 7,419,627 | $ 7,672,939 |
Liabilities | |||
Deposits | 17,996 | 0 | 0 |
Fair Value | Medium-term notes | |||
Debt | |||
Long-term debt, fair value | 4,805,766 | 4,816,153 | 4,719,053 |
Fair Value | Senior notes | |||
Debt | |||
Long-term debt, fair value | 790,355 | 774,949 | 756,243 |
Fair Value | Asset-backed U.S. commercial paper conduit facilities | Secured Debt | |||
Debt | |||
Long-term debt, fair value | 540,840 | 490,427 | 464,136 |
Fair Value | Asset-backed Canadian commercial paper conduit facility | Secured Debt | |||
Debt | |||
Long-term debt, fair value | 144,661 | 114,693 | 148,740 |
Fair Value | Asset-backed securitization debt | Secured Debt | |||
Debt | |||
Long-term debt, fair value | 2,484,956 | 768,094 | 1,007,205 |
Fair Value | Unsecured commercial paper | |||
Debt | |||
Unsecured commercial paper | 1,397,388 | 571,995 | 405,695 |
Fair Value | Foreign Line of Credit | |||
Debt | |||
Unsecured commercial paper | 150,000 | 0 | 0 |
Carrying Value | |||
ASSETS | |||
Finance receivables, net | 6,979,991 | 7,374,366 | 7,594,405 |
Liabilities | |||
Deposits | 17,996 | 0 | 0 |
Carrying Value | Medium-term notes | |||
Debt | |||
Long-term debt, fair value | 4,784,293 | 4,760,127 | 4,687,660 |
Carrying Value | Senior notes | |||
Debt | |||
Long-term debt, fair value | 743,635 | 743,296 | 742,959 |
Carrying Value | Asset-backed U.S. commercial paper conduit facilities | Secured Debt | |||
Debt | |||
Long-term debt, fair value | 540,840 | 490,427 | 464,136 |
Carrying Value | Asset-backed Canadian commercial paper conduit facility | Secured Debt | |||
Debt | |||
Long-term debt, fair value | 144,661 | 114,693 | 148,740 |
Carrying Value | Asset-backed securitization debt | Secured Debt | |||
Debt | |||
Long-term debt, fair value | 2,461,107 | 764,392 | 1,002,869 |
Carrying Value | Unsecured commercial paper | |||
Debt | |||
Unsecured commercial paper | 1,397,388 | 571,995 | 405,695 |
Carrying Value | Foreign Line of Credit | |||
Debt | |||
Unsecured commercial paper | $ 150,000 | $ 0 | $ 0 |
Product Warranty and Recall C_3
Product Warranty and Recall Campaigns - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Product Information | |||
Liability for recall campaigns | $ 32 | $ 47.6 | $ 36.4 |
Operating Expense | |||
Product Information | |||
Supplier recoveries | $ 28 | ||
Battery For Electric Motorcycles | |||
Product Information | |||
Unlimited Warranty, Period | 5 years | ||
Parts & accessories and general merchandise | |||
Product Information | |||
Standard product warranty, period | 1 year | ||
All Countries, Excluding Japan | Motorcycles | |||
Product Information | |||
Standard product warranty, period | 2 years | ||
Japan | Motorcycles | |||
Product Information | |||
Standard product warranty, period | 3 years |
Product Warranty and Recall C_4
Product Warranty and Recall Campaigns - Warranty and Recall Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance, beginning of period | $ 86,308 | $ 122,387 | $ 89,793 | $ 131,740 |
Warranties issued during the period | 6,232 | 17,350 | 17,257 | 28,967 |
Settlements made during the period | (10,737) | (26,768) | (24,894) | (46,385) |
Recalls and changes to pre-existing warranty liabilities | 1,710 | (4,165) | 1,357 | (5,518) |
Balance, end of period | $ 83,513 | $ 108,804 | $ 83,513 | $ 108,804 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components Of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Pension and SERPA Benefits: | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 6,806 | $ 6,632 | $ 13,612 | $ 13,264 |
Interest cost | 19,111 | 21,371 | 38,223 | 42,742 |
Expected return on plan assets | (33,764) | (35,581) | (67,528) | (71,162) |
Amortization of unrecognized: Prior service credit | (272) | (483) | (544) | (966) |
Amortization of unrecognized: Net loss | 16,372 | 11,128 | 32,744 | 22,256 |
Net periodic benefit cost | 8,253 | 3,067 | 16,507 | 6,134 |
Postretirement Healthcare Benefits: | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1,202 | 1,185 | 2,403 | 2,369 |
Interest cost | 2,336 | 2,938 | 4,672 | 5,876 |
Expected return on plan assets | (3,467) | (3,507) | (6,934) | (7,014) |
Amortization of unrecognized: Prior service credit | (595) | (595) | (1,190) | (1,190) |
Amortization of unrecognized: Net loss | 123 | 69 | 246 | 138 |
Special retirement benefit cost | 0 | 1,583 | 0 | 1,583 |
Curtailment gain | 0 | (960) | 0 | (960) |
Net periodic benefit cost | $ (401) | $ 713 | $ (803) | $ 802 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - York, Pennsylvania Facility | 6 Months Ended |
Jun. 28, 2020 | |
Site Contingency | |
Site contingency portion of total cost, percentage | 47.00% |
Navy | |
Site Contingency | |
Site contingency portion of total cost, percentage | 53.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2020 | Mar. 29, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance, beginning of period | $ 1,691,983 | $ 1,803,999 | $ 1,797,611 | $ 1,773,949 | $ 1,803,999 | $ 1,773,949 |
Total other comprehensive loss, net of tax | 27,092 | (42,341) | 7,090 | 7,633 | (15,249) | 14,723 |
Balance, end of period | 1,623,705 | 1,691,983 | 1,910,641 | 1,797,611 | 1,623,705 | 1,910,641 |
Accumulated Other Comprehensive Loss | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance, beginning of period | (579,290) | (536,949) | (622,051) | (629,684) | (536,949) | (629,684) |
Other comprehensive income, before reclassifications | 52,385 | 2,361 | (21,608) | 4,144 | ||
Income tax benefit (expense) | (7,299) | 2,108 | 2,335 | 1,519 | ||
Net other comprehensive income (loss) before reclassifications | 45,086 | 4,469 | (19,273) | 5,663 | ||
Total reclassifications before tax | (22,964) | 3,411 | 5,545 | 11,815 | ||
Income tax benefit (expense) | 4,970 | (790) | (1,521) | (2,755) | ||
Net reclassifications | (17,994) | 2,621 | 4,024 | 9,060 | ||
Total other comprehensive loss, net of tax | 27,092 | (42,341) | 7,090 | 7,633 | (15,249) | 14,723 |
Balance, end of period | (552,198) | (579,290) | (614,961) | (622,051) | (552,198) | (614,961) |
Foreign currency translation adjustments | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance, beginning of period | (75,268) | (40,813) | (49,277) | (49,608) | (40,813) | (49,608) |
Other comprehensive income, before reclassifications | 22,056 | 11,152 | (13,765) | 11,758 | ||
Income tax benefit (expense) | (613) | 118 | 753 | (157) | ||
Net other comprehensive income (loss) before reclassifications | 21,443 | 11,270 | (13,012) | 11,601 | ||
Total reclassifications before tax | 0 | 0 | ||||
Income tax benefit (expense) | 0 | 0 | 0 | |||
Net reclassifications | 0 | 0 | ||||
Total other comprehensive loss, net of tax | 21,443 | 11,270 | (13,012) | 11,601 | ||
Balance, end of period | (53,825) | (75,268) | (38,007) | (49,277) | (53,825) | (38,007) |
Derivative financial instruments | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance, beginning of period | (34,431) | (14,586) | 1,344 | 1,785 | (14,586) | 1,785 |
Other comprehensive income, before reclassifications | 30,329 | (8,791) | (7,843) | (7,614) | ||
Income tax benefit (expense) | (6,686) | 1,990 | 1,582 | 1,676 | ||
Net other comprehensive income (loss) before reclassifications | 23,643 | (6,801) | (6,261) | (5,938) | ||
Total reclassifications before tax | (38,592) | (6,708) | (25,711) | (8,423) | ||
Income tax benefit (expense) | 8,640 | 1,586 | 5,818 | 1,997 | ||
Net reclassifications | (29,952) | (5,122) | (19,893) | (6,426) | ||
Total other comprehensive loss, net of tax | (6,309) | (11,923) | (26,154) | (12,364) | ||
Balance, end of period | (40,740) | (34,431) | (10,579) | 1,344 | (40,740) | (10,579) |
Pension and postretirement benefit plans | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance, beginning of period | (469,591) | (481,550) | (574,118) | (581,861) | (481,550) | (581,861) |
Other comprehensive income, before reclassifications | 0 | 0 | 0 | 0 | ||
Income tax benefit (expense) | 0 | 0 | 0 | 0 | ||
Net other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | |||
Total reclassifications before tax | 15,628 | 10,119 | 31,256 | 20,238 | ||
Income tax benefit (expense) | (3,670) | (2,376) | (7,339) | (4,752) | ||
Net reclassifications | 11,958 | 7,743 | 23,917 | 15,486 | ||
Total other comprehensive loss, net of tax | 11,958 | 7,743 | 23,917 | 15,486 | ||
Balance, end of period | (457,633) | $ (469,591) | (566,375) | $ (574,118) | (457,633) | (566,375) |
Pension and postretirement benefit plans - Prior service credits | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Total reclassifications before tax | (867) | (1,078) | (1,734) | (2,156) | ||
Pension and postretirement benefit plans - Actuarial losses | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Total reclassifications before tax | $ 16,495 | $ 11,197 | $ 32,990 | $ 22,394 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 28, 2020USD ($)segment | Jun. 30, 2019USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Segment Reporting Information | ||||
Selling, administrative and engineering expense | $ 224,365 | $ 307,617 | $ 502,336 | $ 576,242 |
Restructuring expense | 41,949 | 10,423 | 41,949 | 24,053 |
Motorcycles and Related Products cost of goods sold | 561,646 | 979,266 | 1,342,514 | 1,827,464 |
Operating (loss) income | (116,099) | 256,257 | (8,586) | 423,369 |
Motorcycles and Related Products | ||||
Segment Reporting Information | ||||
Motorcycles revenue | 669,274 | 1,434,004 | 1,769,062 | 2,629,641 |
Gross profit | 107,628 | 454,738 | 426,548 | 802,177 |
Selling, administrative and engineering expense | 187,647 | 263,587 | 422,000 | 489,015 |
Restructuring expense | 41,005 | 10,423 | 41,005 | 24,053 |
Operating (loss) income | (121,024) | 180,728 | (36,457) | 289,109 |
Financial services | ||||
Segment Reporting Information | ||||
Restructuring expense | 944 | 0 | 944 | 0 |
Financial Services | 195,953 | 198,615 | 394,409 | 387,358 |
Motorcycles and Related Products cost of goods sold | 190,084 | 123,086 | 365,594 | 253,098 |
Operating (loss) income | $ 4,925 | $ 75,529 | $ 27,871 | $ 134,260 |
Supplemental Consolidating Da_3
Supplemental Consolidating Data - Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2020 | Mar. 29, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Revenue: | ||||||
Total revenue | $ 865,227 | $ 1,632,619 | $ 2,163,471 | $ 3,016,999 | ||
Costs and expenses: | ||||||
Motorcycles and Related Products cost of goods sold | 561,646 | 979,266 | 1,342,514 | 1,827,464 | ||
Financial Services interest expense | 62,187 | 52,673 | 114,660 | 104,997 | ||
Provision for credit losses | 91,179 | 26,383 | 170,598 | 60,874 | ||
Selling, administrative and engineering expense | 224,365 | 307,617 | 502,336 | 576,242 | ||
Restructuring expense | 41,949 | 10,423 | 41,949 | 24,053 | ||
Total costs and expenses | 981,326 | 1,376,362 | 2,172,057 | 2,593,630 | ||
Operating (loss) income | (116,099) | 256,257 | (8,586) | 423,369 | ||
Other income, net | 156 | 4,037 | 311 | 8,697 | ||
Investment income | 5,757 | 3,571 | 410 | 9,929 | ||
Interest expense | 7,769 | 7,784 | 15,524 | 15,515 | ||
(Loss) income before provision for income taxes | (117,955) | 256,081 | (23,389) | 426,480 | ||
Income tax (benefit) provision | (25,738) | 60,450 | (867) | 102,904 | ||
Net (loss) income | (92,217) | $ 69,695 | 195,631 | $ 127,945 | (22,522) | 323,576 |
Reportable Legal Entities | HDMC Entities | ||||||
Revenue: | ||||||
Total revenue | 670,905 | 1,439,685 | ||||
Costs and expenses: | ||||||
Motorcycles and Related Products cost of goods sold | 561,646 | 978,761 | ||||
Financial Services interest expense | 0 | 0 | ||||
Provision for credit losses | 0 | 0 | 0 | 0 | ||
Selling, administrative and engineering expense | 190,300 | 267,777 | ||||
Restructuring expense | 41,005 | 10,423 | ||||
Total costs and expenses | 792,951 | 1,256,961 | ||||
Operating (loss) income | (122,046) | 182,724 | ||||
Other income, net | 156 | 4,037 | ||||
Investment income | 5,757 | 48,571 | ||||
Interest expense | 7,769 | 7,784 | ||||
(Loss) income before provision for income taxes | (123,902) | 227,548 | ||||
Income tax (benefit) provision | (26,938) | 43,348 | ||||
Net (loss) income | (96,964) | 184,200 | 55,462 | 313,614 | ||
Reportable Legal Entities | HDFS Entities | ||||||
Revenue: | ||||||
Total revenue | 194,872 | 196,197 | ||||
Costs and expenses: | ||||||
Motorcycles and Related Products cost of goods sold | 0 | 0 | ||||
Financial Services interest expense | 62,187 | 52,673 | ||||
Provision for credit losses | 91,179 | 26,383 | 170,598 | 60,874 | ||
Selling, administrative and engineering expense | 34,690 | 43,586 | ||||
Restructuring expense | 944 | 0 | ||||
Total costs and expenses | 189,000 | 122,642 | ||||
Operating (loss) income | 5,872 | 73,555 | ||||
Other income, net | 0 | 0 | ||||
Investment income | 0 | 0 | ||||
Interest expense | 0 | 0 | ||||
(Loss) income before provision for income taxes | 5,872 | 73,555 | ||||
Income tax (benefit) provision | 1,200 | 17,102 | ||||
Net (loss) income | 4,672 | 56,453 | 21,627 | 99,906 | ||
Consolidating Adjustments | ||||||
Revenue: | ||||||
Total revenue | (550) | (3,263) | (1,450) | (5,645) | ||
Costs and expenses: | ||||||
Motorcycles and Related Products cost of goods sold | 0 | 505 | 0 | 0 | ||
Financial Services interest expense | 0 | 0 | 0 | 0 | ||
Provision for credit losses | 0 | 0 | 0 | 0 | ||
Selling, administrative and engineering expense | (625) | (3,746) | (1,839) | (5,701) | ||
Restructuring expense | 0 | 0 | 0 | 0 | ||
Total costs and expenses | (625) | (3,241) | (1,839) | (5,701) | ||
Operating (loss) income | 75 | (22) | 389 | 56 | ||
Other income, net | 0 | 0 | 0 | 0 | ||
Investment income | 0 | (45,000) | (100,000) | (90,000) | ||
Interest expense | 0 | 0 | 0 | |||
(Loss) income before provision for income taxes | 75 | (45,022) | (99,611) | (89,944) | ||
Income tax (benefit) provision | 0 | 0 | 0 | 0 | ||
Net (loss) income | 75 | (45,022) | (99,611) | (89,944) | ||
HDMC Entities | Reportable Legal Entities | ||||||
Revenue: | ||||||
Total revenue | 1,774,163 | 2,639,694 | ||||
Costs and expenses: | ||||||
Motorcycles and Related Products cost of goods sold | 1,342,514 | 1,827,464 | ||||
Financial Services interest expense | 0 | 0 | ||||
Provision for credit losses | 0 | 0 | ||||
Selling, administrative and engineering expense | 428,046 | 495,769 | ||||
Restructuring expense | 41,005 | 24,053 | ||||
Total costs and expenses | 1,811,565 | 2,347,286 | ||||
Operating (loss) income | (37,402) | 292,408 | ||||
Other income, net | 311 | 8,697 | ||||
Investment income | 100,410 | 99,929 | ||||
Interest expense | 15,524 | 15,515 | ||||
(Loss) income before provision for income taxes | 47,795 | 385,519 | ||||
Income tax (benefit) provision | (7,667) | 71,905 | ||||
Net (loss) income | 55,462 | 313,614 | ||||
HDFS Entities | Reportable Legal Entities | ||||||
Revenue: | ||||||
Total revenue | 390,758 | 382,950 | ||||
Costs and expenses: | ||||||
Motorcycles and Related Products cost of goods sold | 0 | 0 | ||||
Financial Services interest expense | 114,660 | 104,997 | ||||
Provision for credit losses | 170,598 | 60,874 | ||||
Selling, administrative and engineering expense | 76,129 | 86,174 | ||||
Restructuring expense | 944 | 0 | ||||
Total costs and expenses | 362,331 | 252,045 | ||||
Operating (loss) income | 28,427 | 130,905 | ||||
Other income, net | 0 | 0 | ||||
Investment income | 0 | 0 | ||||
Interest expense | 0 | 0 | ||||
(Loss) income before provision for income taxes | 28,427 | 130,905 | ||||
Income tax (benefit) provision | 6,800 | 30,999 | ||||
Net (loss) income | 21,627 | 99,906 | ||||
Motorcycles and Related Products | ||||||
Revenue: | ||||||
Motorcycles and Related Products | 669,274 | 1,434,004 | 1,769,062 | 2,629,641 | ||
Motorcycles and Related Products | Reportable Legal Entities | HDMC Entities | ||||||
Revenue: | ||||||
Motorcycles and Related Products | 670,905 | 1,439,685 | ||||
Motorcycles and Related Products | Reportable Legal Entities | HDFS Entities | ||||||
Revenue: | ||||||
Motorcycles and Related Products | 0 | 0 | ||||
Motorcycles and Related Products | Consolidating Adjustments | ||||||
Revenue: | ||||||
Motorcycles and Related Products | (1,631) | (5,681) | (5,101) | (10,053) | ||
Motorcycles and Related Products | HDMC Entities | Reportable Legal Entities | ||||||
Revenue: | ||||||
Motorcycles and Related Products | 1,774,163 | 2,639,694 | ||||
Motorcycles and Related Products | HDFS Entities | Reportable Legal Entities | ||||||
Revenue: | ||||||
Motorcycles and Related Products | 0 | 0 | ||||
Financial Services | ||||||
Revenue: | ||||||
Financial Services | 195,953 | 198,615 | 394,409 | 387,358 | ||
Financial Services | Reportable Legal Entities | HDMC Entities | ||||||
Revenue: | ||||||
Financial Services | 0 | 0 | ||||
Financial Services | Reportable Legal Entities | HDFS Entities | ||||||
Revenue: | ||||||
Financial Services | 194,872 | 196,197 | ||||
Financial Services | Consolidating Adjustments | ||||||
Revenue: | ||||||
Financial Services | $ 1,081 | $ 2,418 | 3,651 | 4,408 | ||
Financial Services | HDMC Entities | Reportable Legal Entities | ||||||
Revenue: | ||||||
Financial Services | 0 | 0 | ||||
Financial Services | HDFS Entities | Reportable Legal Entities | ||||||
Revenue: | ||||||
Financial Services | $ 390,758 | $ 382,950 |
Supplemental Consolidating Da_4
Supplemental Consolidating Data - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||||||
Cash and cash equivalents | $ 3,856,597 | $ 833,868 | $ 924,638 | |||
Accounts receivable, net | 271,431 | 259,334 | 325,306 | |||
Finance receivables, net of allowance of $75,563, $43,006, and $40,446 | 1,901,620 | 2,272,522 | 2,362,125 | |||
Inventories, net | 429,339 | 603,571 | 470,610 | |||
Restricted cash | 189,712 | 64,554 | 82,248 | |||
Other current assets | 163,135 | 168,974 | 147,234 | |||
Total current assets | 6,811,834 | 4,202,823 | 4,312,161 | |||
Finance receivables, net of allowance of $335,452, $155,575, and $154,550 | 5,078,371 | 5,101,844 | 5,232,280 | |||
Property, plant and equipment, net | 816,989 | 847,382 | 855,998 | |||
Prepaid pension costs | 73,589 | 56,014 | 0 | |||
Goodwill | 64,192 | 64,160 | 64,449 | |||
Deferred income taxes | 141,566 | 101,204 | 134,639 | |||
Lease assets | 53,031 | 61,618 | 54,913 | |||
Other long-term assets | 116,580 | 93,114 | 85,876 | |||
Total assets | 13,156,152 | 10,528,159 | 10,740,316 | |||
Current liabilities: | ||||||
Accounts payable | 317,462 | 294,380 | 324,464 | |||
Accrued liabilities | 604,210 | 582,288 | 615,905 | |||
Short-term debt | 1,547,388 | 571,995 | 405,695 | |||
Current portion of long-term debt, net | 2,186,037 | 1,748,109 | 2,396,188 | |||
Total current liabilities | 4,655,097 | 3,196,772 | 3,742,252 | |||
Long-term debt, net | 6,488,499 | 5,124,826 | 4,650,176 | |||
Lease liabilities | 36,394 | 44,447 | 38,365 | |||
Pension liabilities | 57,033 | 56,138 | 92,750 | |||
Postretirement healthcare benefits | 69,964 | 72,513 | 92,539 | |||
Other long-term liabilities | 225,460 | 229,464 | 213,593 | |||
Commitments and contingencies | ||||||
Shareholders’ equity | 1,623,705 | $ 1,691,983 | 1,803,999 | 1,910,641 | $ 1,797,611 | $ 1,773,949 |
Total liabilities and shareholders' equity | 13,156,152 | 10,528,159 | 10,740,316 | |||
Reportable Legal Entities | HDMC Entities | ||||||
Current assets: | ||||||
Cash and cash equivalents | 446,425 | 470,649 | 560,446 | |||
Accounts receivable, net | 564,922 | 369,717 | 671,719 | |||
Finance receivables, net of allowance of $75,563, $43,006, and $40,446 | 0 | 0 | 0 | |||
Inventories, net | 429,339 | 603,571 | 470,610 | |||
Restricted cash | 0 | 0 | 0 | |||
Other current assets | 119,591 | 110,145 | 102,956 | |||
Total current assets | 1,560,277 | 1,554,082 | 1,805,731 | |||
Finance receivables, net of allowance of $335,452, $155,575, and $154,550 | 0 | 0 | 0 | |||
Property, plant and equipment, net | 766,546 | 794,131 | 801,871 | |||
Prepaid pension costs | 73,589 | 56,014 | ||||
Goodwill | 64,192 | 64,160 | 64,449 | |||
Deferred income taxes | 48,326 | 62,768 | 96,914 | |||
Lease assets | 47,754 | 55,722 | 48,415 | |||
Other long-term assets | 176,358 | 166,972 | 157,061 | |||
Total assets | 2,737,042 | 2,753,849 | 2,974,441 | |||
Current liabilities: | ||||||
Accounts payable | 272,996 | 266,710 | 302,137 | |||
Accrued liabilities | 446,819 | 463,491 | 497,019 | |||
Short-term debt | 0 | 0 | 0 | |||
Current portion of long-term debt, net | 0 | 0 | 0 | |||
Total current liabilities | 719,815 | 730,201 | 799,156 | |||
Long-term debt, net | 743,635 | 743,296 | 742,959 | |||
Lease liabilities | 31,652 | 38,783 | 31,809 | |||
Pension liabilities | 57,033 | 56,138 | 92,750 | |||
Postretirement healthcare benefits | 69,964 | 72,513 | 92,539 | |||
Other long-term liabilities | 178,210 | 186,252 | 171,509 | |||
Commitments and contingencies | ||||||
Shareholders’ equity | 936,733 | 926,666 | 1,043,719 | |||
Total liabilities and shareholders' equity | 2,737,042 | 2,753,849 | 2,974,441 | |||
Reportable Legal Entities | HDFS Entities | ||||||
Current assets: | ||||||
Cash and cash equivalents | 3,410,172 | 363,219 | 364,192 | |||
Accounts receivable, net | 0 | 0 | 0 | |||
Finance receivables, net of allowance of $75,563, $43,006, and $40,446 | 1,901,620 | 2,272,522 | 2,362,125 | |||
Inventories, net | 0 | 0 | 0 | |||
Restricted cash | 189,712 | 64,554 | 82,248 | |||
Other current assets | 66,387 | 59,665 | 44,278 | |||
Total current assets | 5,567,891 | 2,759,960 | 2,852,843 | |||
Finance receivables, net of allowance of $335,452, $155,575, and $154,550 | 5,078,371 | 5,101,844 | 5,232,280 | |||
Property, plant and equipment, net | 50,443 | 53,251 | 54,127 | |||
Prepaid pension costs | 0 | 0 | ||||
Goodwill | 0 | 0 | 0 | |||
Deferred income taxes | 94,215 | 39,882 | 38,928 | |||
Lease assets | 5,277 | 5,896 | 6,498 | |||
Other long-term assets | 33,840 | 19,211 | 20,159 | |||
Total assets | 10,830,037 | 7,980,044 | 8,204,835 | |||
Current liabilities: | ||||||
Accounts payable | 337,957 | 138,053 | 368,740 | |||
Accrued liabilities | 179,478 | 119,186 | 118,256 | |||
Short-term debt | 1,547,388 | 571,995 | 405,695 | |||
Current portion of long-term debt, net | 2,186,037 | 1,748,109 | 2,396,188 | |||
Total current liabilities | 4,250,860 | 2,577,343 | 3,288,879 | |||
Long-term debt, net | 5,744,864 | 4,381,530 | 3,907,217 | |||
Lease liabilities | 4,742 | 5,664 | 6,556 | |||
Pension liabilities | 0 | 0 | 0 | |||
Postretirement healthcare benefits | 0 | 0 | 0 | |||
Other long-term liabilities | 44,873 | 40,609 | 39,314 | |||
Commitments and contingencies | ||||||
Shareholders’ equity | 784,698 | 974,898 | 962,869 | |||
Total liabilities and shareholders' equity | 10,830,037 | 7,980,044 | 8,204,835 | |||
Consolidating Adjustments | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | 0 | |||
Accounts receivable, net | (293,491) | (110,383) | (346,413) | |||
Finance receivables, net of allowance of $75,563, $43,006, and $40,446 | 0 | 0 | 0 | |||
Inventories, net | 0 | 0 | 0 | |||
Restricted cash | 0 | 0 | 0 | |||
Other current assets | (22,843) | (836) | 0 | |||
Total current assets | (316,334) | (111,219) | (346,413) | |||
Finance receivables, net of allowance of $335,452, $155,575, and $154,550 | 0 | 0 | 0 | |||
Property, plant and equipment, net | 0 | 0 | 0 | |||
Prepaid pension costs | 0 | 0 | ||||
Goodwill | 0 | 0 | 0 | |||
Deferred income taxes | (975) | (1,446) | (1,203) | |||
Lease assets | 0 | 0 | 0 | |||
Other long-term assets | (93,618) | (93,069) | (91,344) | |||
Total assets | (410,927) | (205,734) | (438,960) | |||
Current liabilities: | ||||||
Accounts payable | (293,491) | (110,383) | (346,413) | |||
Accrued liabilities | (22,087) | (389) | 630 | |||
Short-term debt | 0 | 0 | 0 | |||
Current portion of long-term debt, net | 0 | 0 | 0 | |||
Total current liabilities | (315,578) | (110,772) | (345,783) | |||
Long-term debt, net | 0 | 0 | 0 | |||
Lease liabilities | 0 | 0 | 0 | |||
Pension liabilities | 0 | 0 | 0 | |||
Postretirement healthcare benefits | 0 | 0 | 0 | |||
Other long-term liabilities | 2,377 | 2,603 | 2,770 | |||
Commitments and contingencies | ||||||
Shareholders’ equity | (97,726) | (97,565) | (95,947) | |||
Total liabilities and shareholders' equity | $ (410,927) | $ (205,734) | $ (438,960) |
Supplemental Consolidating Da_5
Supplemental Consolidating Data - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2020 | Mar. 29, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||||||
Net (loss) income | $ (92,217) | $ 69,695 | $ 195,631 | $ 127,945 | $ (22,522) | $ 323,576 |
Adjustments to reconcile Net (loss) income to Net cash provided by operating activities: | ||||||
Depreciation and amortization | 95,454 | 125,386 | ||||
Amortization of deferred loan origination costs | 33,796 | 38,036 | ||||
Amortization of financing origination fees | 6,661 | 4,522 | ||||
Provision for long-term employee benefits | 15,704 | 6,936 | ||||
Employee benefit plan contributions and payments | (3,678) | (3,637) | ||||
Stock compensation expense | 4,568 | 17,285 | ||||
Net change in wholesale finance receivables related to sales | 166,049 | (167,594) | ||||
Provision for credit losses | 91,179 | 26,383 | 170,598 | 60,874 | ||
Deferred income taxes | (19,461) | 5,368 | ||||
Other, net | (9,294) | (10,477) | ||||
Changes in current assets and liabilities: | ||||||
Accounts receivable, net | (15,747) | (17,592) | ||||
Finance receivables – accrued interest and other | (2,985) | (4,963) | ||||
Inventories, net | 163,700 | 88,146 | ||||
Accounts payable and accrued liabilities | 10,664 | 34,370 | ||||
Derivative financial instruments | 1,538 | 4,352 | ||||
Other | 15,158 | (8,356) | ||||
Total adjustments | 632,725 | 172,656 | ||||
Net cash provided by operating activities | 610,203 | 496,232 | ||||
Cash flows from investing activities: | ||||||
Capital expenditures | (67,026) | (83,229) | ||||
Origination of finance receivables | (1,869,569) | (2,064,899) | ||||
Collections on finance receivables | 1,785,698 | 1,768,829 | ||||
Sales and redemptions of marketable securities | 0 | 10,007 | ||||
Acquisition of business | 0 | (7,000) | ||||
Other investing activities | (381) | 11,717 | ||||
Net cash used by investing activities | (151,278) | (364,575) | ||||
Cash flows from financing activities: | ||||||
Proceeds from issuance of medium-term notes | 1,396,602 | 546,655 | ||||
Repayments of medium-term notes | (1,400,000) | (750,000) | ||||
Proceeds from securitization debt | 2,064,450 | 1,021,353 | ||||
Repayments of securitization debt | (369,613) | (113,806) | ||||
Borrowings of asset-backed commercial paper | 225,187 | 23,373 | ||||
Repayments of asset-backed commercial paper | (143,306) | (155,286) | ||||
Net increase in unsecured commercial paper | 831,354 | (728,606) | ||||
Net increase in credit facilities | 150,000 | 0 | ||||
Deposits | 17,995 | 0 | ||||
Dividends paid | (61,917) | (120,841) | ||||
Repurchase of common stock | (7,156) | (104,621) | ||||
Issuance of common stock under share-based plans | 41 | 833 | ||||
Net cash provided (used) by financing activities | 2,703,637 | (380,946) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (382) | 3,439 | ||||
Cash, cash equivalents and restricted cash: | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 905,366 | 1,259,748 | 905,366 | 1,259,748 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,162,180 | (245,850) | ||||
Cash, cash equivalents and restricted cash, end of period | 4,067,546 | 1,013,898 | 4,067,546 | 1,013,898 | ||
HDMC Entities | ||||||
Cash flows from financing activities: | ||||||
Proceeds from securitization debt | 0 | |||||
HDFS Entities | ||||||
Cash flows from financing activities: | ||||||
Proceeds from securitization debt | 2,064,450 | |||||
Reportable Legal Entities | HDMC Entities | ||||||
Cash flows from operating activities: | ||||||
Net (loss) income | (96,964) | 184,200 | 55,462 | 313,614 | ||
Adjustments to reconcile Net (loss) income to Net cash provided by operating activities: | ||||||
Depreciation and amortization | 91,298 | 121,026 | ||||
Amortization of deferred loan origination costs | 0 | 0 | ||||
Amortization of financing origination fees | 339 | 335 | ||||
Provision for long-term employee benefits | 15,704 | 6,936 | ||||
Employee benefit plan contributions and payments | (3,678) | (3,637) | ||||
Stock compensation expense | 4,019 | 15,672 | ||||
Net change in wholesale finance receivables related to sales | 0 | 0 | ||||
Provision for credit losses | 0 | 0 | 0 | 0 | ||
Deferred income taxes | 5,602 | 5,928 | ||||
Other, net | (12,635) | (8,545) | ||||
Changes in current assets and liabilities: | ||||||
Accounts receivable, net | (198,855) | (244,752) | ||||
Finance receivables – accrued interest and other | 0 | 0 | ||||
Inventories, net | 163,700 | 88,146 | ||||
Accounts payable and accrued liabilities | (1,001) | 21,336 | ||||
Derivative financial instruments | 1,622 | 4,291 | ||||
Other | (9,999) | (15,573) | ||||
Total adjustments | 56,116 | (8,837) | ||||
Net cash provided by operating activities | 111,578 | 304,777 | ||||
Cash flows from investing activities: | ||||||
Capital expenditures | (65,677) | (81,698) | ||||
Origination of finance receivables | 0 | 0 | ||||
Collections on finance receivables | 0 | 0 | ||||
Sales and redemptions of marketable securities | 10,007 | |||||
Acquisition of business | (7,000) | |||||
Other investing activities | (381) | 11,717 | ||||
Net cash used by investing activities | (66,058) | (66,974) | ||||
Cash flows from financing activities: | ||||||
Proceeds from issuance of medium-term notes | 0 | 0 | ||||
Repayments of medium-term notes | 0 | 0 | ||||
Proceeds from securitization debt | 0 | |||||
Repayments of securitization debt | 0 | 0 | ||||
Borrowings of asset-backed commercial paper | 0 | 0 | ||||
Repayments of asset-backed commercial paper | 0 | 0 | ||||
Net increase in unsecured commercial paper | 0 | 0 | ||||
Net increase in credit facilities | 0 | |||||
Deposits | 0 | |||||
Dividends paid | (61,917) | (120,841) | ||||
Repurchase of common stock | (7,156) | (104,621) | ||||
Issuance of common stock under share-based plans | 41 | 833 | ||||
Net cash provided (used) by financing activities | (69,032) | (224,629) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (712) | 2,724 | ||||
Cash, cash equivalents and restricted cash: | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 470,649 | 544,548 | 470,649 | 544,548 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (24,224) | 15,898 | ||||
Cash, cash equivalents and restricted cash, end of period | 446,425 | 560,446 | 446,425 | 560,446 | ||
Reportable Legal Entities | HDFS Entities | ||||||
Cash flows from operating activities: | ||||||
Net (loss) income | 4,672 | 56,453 | 21,627 | 99,906 | ||
Adjustments to reconcile Net (loss) income to Net cash provided by operating activities: | ||||||
Depreciation and amortization | 4,156 | 4,360 | ||||
Amortization of deferred loan origination costs | 33,796 | 38,036 | ||||
Amortization of financing origination fees | 6,322 | 4,187 | ||||
Provision for long-term employee benefits | 0 | 0 | ||||
Employee benefit plan contributions and payments | 0 | 0 | ||||
Stock compensation expense | 549 | 1,613 | ||||
Net change in wholesale finance receivables related to sales | 0 | 0 | ||||
Provision for credit losses | 91,179 | 26,383 | 170,598 | 60,874 | ||
Deferred income taxes | (24,592) | (236) | ||||
Other, net | 3,730 | (1,876) | ||||
Changes in current assets and liabilities: | ||||||
Accounts receivable, net | 0 | 0 | ||||
Finance receivables – accrued interest and other | (2,985) | (4,963) | ||||
Inventories, net | 0 | 0 | ||||
Accounts payable and accrued liabilities | 214,864 | 221,959 | ||||
Derivative financial instruments | (84) | 61 | ||||
Other | 3,150 | 13,091 | ||||
Total adjustments | 409,504 | 337,106 | ||||
Net cash provided by operating activities | 431,131 | 437,012 | ||||
Cash flows from investing activities: | ||||||
Capital expenditures | (1,349) | (1,531) | ||||
Origination of finance receivables | (3,033,567) | (3,936,208) | ||||
Collections on finance receivables | 3,117,190 | 3,484,581 | ||||
Sales and redemptions of marketable securities | 0 | |||||
Acquisition of business | 0 | |||||
Other investing activities | 0 | 0 | ||||
Net cash used by investing activities | 82,274 | (453,158) | ||||
Cash flows from financing activities: | ||||||
Proceeds from issuance of medium-term notes | 1,396,602 | 546,655 | ||||
Repayments of medium-term notes | (1,400,000) | (750,000) | ||||
Proceeds from securitization debt | 1,021,353 | |||||
Repayments of securitization debt | (369,613) | (113,806) | ||||
Borrowings of asset-backed commercial paper | 225,187 | 23,373 | ||||
Repayments of asset-backed commercial paper | (143,306) | (155,286) | ||||
Net increase in unsecured commercial paper | 831,354 | (728,606) | ||||
Net increase in credit facilities | 150,000 | |||||
Deposits | 17,995 | |||||
Dividends paid | (100,000) | (90,000) | ||||
Repurchase of common stock | 0 | 0 | ||||
Issuance of common stock under share-based plans | 0 | 0 | ||||
Net cash provided (used) by financing activities | 2,672,669 | (246,317) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 330 | 715 | ||||
Cash, cash equivalents and restricted cash: | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 434,717 | 715,200 | 434,717 | 715,200 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,186,404 | (261,748) | ||||
Cash, cash equivalents and restricted cash, end of period | 3,621,121 | 453,452 | 3,621,121 | 453,452 | ||
Consolidating Adjustments | ||||||
Cash flows from operating activities: | ||||||
Net (loss) income | 75 | (45,022) | (99,611) | (89,944) | ||
Adjustments to reconcile Net (loss) income to Net cash provided by operating activities: | ||||||
Depreciation and amortization | 0 | 0 | ||||
Amortization of deferred loan origination costs | 0 | 0 | ||||
Amortization of financing origination fees | 0 | 0 | ||||
Provision for long-term employee benefits | 0 | 0 | ||||
Employee benefit plan contributions and payments | 0 | 0 | ||||
Stock compensation expense | 0 | 0 | ||||
Net change in wholesale finance receivables related to sales | 166,049 | (167,594) | ||||
Provision for credit losses | 0 | 0 | 0 | 0 | ||
Deferred income taxes | (471) | (324) | ||||
Other, net | (389) | (56) | ||||
Changes in current assets and liabilities: | ||||||
Accounts receivable, net | 183,108 | 227,160 | ||||
Finance receivables – accrued interest and other | 0 | 0 | ||||
Inventories, net | 0 | 0 | ||||
Accounts payable and accrued liabilities | (203,199) | (208,925) | ||||
Derivative financial instruments | 0 | 0 | ||||
Other | 22,007 | (5,874) | ||||
Total adjustments | 167,105 | (155,613) | ||||
Net cash provided by operating activities | 67,494 | (245,557) | ||||
Cash flows from investing activities: | ||||||
Capital expenditures | 0 | 0 | ||||
Origination of finance receivables | 1,163,998 | 1,871,309 | ||||
Collections on finance receivables | (1,331,492) | (1,715,752) | ||||
Sales and redemptions of marketable securities | 0 | |||||
Acquisition of business | 0 | |||||
Other investing activities | 0 | 0 | ||||
Net cash used by investing activities | (167,494) | 155,557 | ||||
Cash flows from financing activities: | ||||||
Proceeds from issuance of medium-term notes | 0 | 0 | ||||
Repayments of medium-term notes | 0 | 0 | ||||
Proceeds from securitization debt | 0 | 0 | ||||
Repayments of securitization debt | 0 | 0 | ||||
Borrowings of asset-backed commercial paper | 0 | 0 | ||||
Repayments of asset-backed commercial paper | 0 | 0 | ||||
Net increase in unsecured commercial paper | 0 | 0 | ||||
Net increase in credit facilities | 0 | |||||
Deposits | 0 | |||||
Dividends paid | 100,000 | 90,000 | ||||
Repurchase of common stock | 0 | 0 | ||||
Issuance of common stock under share-based plans | 0 | 0 | ||||
Net cash provided (used) by financing activities | 100,000 | 90,000 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | ||||
Cash, cash equivalents and restricted cash: | ||||||
Cash, cash equivalents and restricted cash, beginning of period | $ 0 | $ 0 | 0 | 0 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | ||||
Cash, cash equivalents and restricted cash, end of period | $ 0 | $ 0 | $ 0 | $ 0 |