Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,969,233,695 | ||
Entity Common Stock, Shares Outstanding | 136,562,856 | ||
Documents Incorporated by Reference | Part III of this report incorporates information by reference from registrant’s Proxy Statement for the annual meeting of its shareholders to be held on May 16, 2024 | ||
Entity Central Index Key | 0000793952 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Milwaukee, Wisconsin |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Motorcycles and related products | $ 4,882,892 | $ 4,934,505 | $ 4,540,240 |
Financial services revenue | 953,586 | 820,625 | 796,068 |
Total revenue | 5,836,478 | 5,755,130 | 5,336,308 |
Costs and expenses: | |||
Motorcycles and related products cost of goods sold | 3,322,306 | 3,403,728 | 3,243,287 |
Financial services interest expense | 332,380 | 217,653 | 192,944 |
Financial services provision for credit losses | 227,158 | 145,133 | 25,049 |
Selling, administrative and engineering expense | 1,175,550 | 1,079,338 | 1,051,589 |
Total costs and expenses | 5,057,394 | 4,845,852 | 4,512,869 |
Operating income | 779,084 | 909,278 | 823,439 |
Other income, net | 71,808 | 48,652 | 20,076 |
Investment income | 46,771 | 4,538 | 6,694 |
Interest expense | 30,787 | 31,235 | 30,972 |
Income before income taxes | 866,876 | 931,233 | 819,237 |
Income tax provision | 171,830 | 192,019 | 169,213 |
Net income | 695,046 | 739,214 | 650,024 |
Less: Loss attributable to noncontrolling interests | 11,540 | 2,194 | 0 |
Net income attributable to Harley-Davidson, Inc. | $ 706,586 | $ 741,408 | $ 650,024 |
Earnings per share: | |||
Basic (in dollars per share) | $ 4.96 | $ 5.01 | $ 4.23 |
Diluted (in dollars per share) | 4.87 | 4.96 | 4.19 |
Cash dividends per share (in dollars per share) | $ 0.66 | $ 0.63 | $ 0.60 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 695,046 | $ 739,214 | $ 650,024 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 11,532 | (35,870) | (36,812) |
Derivative financial instruments | 3,839 | (8,435) | 44,111 |
Pension and postretirement benefit plans | 21,596 | (56,705) | 235,199 |
Other comprehensive income | 36,967 | (101,010) | 242,498 |
Comprehensive income | 732,013 | 638,204 | 892,522 |
Less: Comprehensive loss attributable to noncontrolling interests | 11,540 | 2,194 | 0 |
Comprehensive income attributable to Harley-Davidson, Inc. | $ 743,553 | $ 640,398 | $ 892,522 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 1,533,806 | $ 1,433,175 |
Accounts receivable, net | 267,200 | 252,225 |
Finance receivables, net of allowance of $67,035 and $62,488 | 2,113,729 | 1,782,631 |
Inventories, net | 929,951 | 950,960 |
Restricted cash | 104,642 | 135,424 |
Other current assets | 214,401 | 196,238 |
Current assets | 5,163,729 | 4,750,653 |
Finance receivables, net of allowance of $314,931 and $296,223 | 5,384,536 | 5,355,807 |
Property, plant and equipment, net | 731,724 | 689,886 |
Pension and postretirement assets | 413,107 | 320,133 |
Goodwill | 62,696 | 62,090 |
Deferred income taxes | 161,184 | 135,041 |
Lease assets | 69,650 | 43,931 |
Other long-term assets | 153,928 | 134,935 |
Assets | 12,140,554 | 11,492,476 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Accounts payable | 349,162 | 378,002 |
Accrued liabilities | 646,859 | 620,945 |
Short-term deposits, net | 253,309 | 79,710 |
Short-term debt | 878,935 | 770,468 |
Current portion of long-term debt, net | 1,255,999 | 1,684,782 |
Current liabilities | 3,384,264 | 3,533,907 |
Long-term deposits, net | 194,473 | 237,665 |
Long-term debt, net | 4,990,586 | 4,457,052 |
Lease liabilities | 51,848 | 26,777 |
Pension and postretirement liabilities | 59,772 | 67,955 |
Deferred income taxes | 33,514 | 29,528 |
Other long-term liabilities | 173,802 | 232,784 |
Commitments and contingencies (Note 15) | ||
Shareholders’ equity: | ||
Preferred stock, none issued | 0 | 0 |
Common stock (Note 4) | 1,712 | 1,704 |
Additional paid-in-capital | 1,752,435 | 1,688,159 |
Retained earnings | 3,100,925 | 2,490,649 |
Accumulated other comprehensive loss | (304,962) | (341,929) |
Treasury stock, at cost (Note 4) | (1,297,302) | (935,064) |
Total Harley-Davidson, Inc. shareholders' equity | 3,252,808 | 2,903,519 |
Noncontrolling interest | (513) | 3,289 |
Total equity | 3,252,295 | 2,906,808 |
Total liabilities and shareholders' equity | $ 12,140,554 | $ 11,492,476 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Allowance for credit loss, current | $ 67,035 | $ 62,488 |
Allowance for credit loss, noncurrent | $ 314,931 | $ 296,223 |
Preferred stock, issued (in shares) | 0 | 0 |
Finance receivables, net - current | $ 2,113,729 | $ 1,782,631 |
Other assets | 214,401 | 196,238 |
Finance receivables, net - non-current | 5,384,536 | 5,355,807 |
Current portion of long-term debt, net | 1,255,999 | 1,684,782 |
Long-term debt, net | 4,990,586 | 4,457,052 |
Consolidated VIEs: | ||
Finance receivables, net - current | 533,262 | 559,651 |
Other assets | 8,785 | 9,805 |
Finance receivables, net - non-current | 1,934,113 | 2,317,956 |
Restricted cash - current and non-current | 110,580 | 141,128 |
Current portion of long-term debt, net | 577,203 | 619,683 |
Long-term debt, net | $ 1,533,423 | $ 1,825,525 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net cash provided by operating activities (Note 5) | $ 754,887 | $ 548,461 | $ 975,701 |
Cash flows from investing activities: | |||
Capital expenditures | (207,404) | (151,669) | (120,181) |
Origination of finance receivables | (3,873,542) | (4,558,834) | (4,243,710) |
Collections of finance receivables | 3,570,822 | 3,935,001 | 3,902,304 |
Other investing activities | (2,180) | 2,491 | 2,140 |
Net cash used by investing activities | (512,304) | (773,011) | (459,447) |
Cash flows from financing activities: | |||
Proceeds from issuance of medium-term notes | 1,446,304 | 495,785 | 0 |
Repayments of medium-term notes | (1,056,680) | (950,000) | (1,400,000) |
Proceeds from securitization debt | 1,045,547 | 1,826,891 | 1,169,910 |
Repayments of securitization debt | (1,193,526) | (1,442,860) | (1,340,638) |
Borrowings of asset-backed commercial paper | 42,429 | 448,255 | 98,863 |
Repayments of asset-backed commercial paper | (237,370) | (302,922) | (261,367) |
Net increase (decrease) in unsecured commercial paper | 107,146 | 16,003 | (260,250) |
Net increase in deposits | 129,855 | 26,605 | 210,112 |
Dividends paid | (96,310) | (93,180) | (92,426) |
Repurchase of common stock | (363,987) | (338,627) | (11,623) |
Cash received from business combination | 0 | 114,068 | 0 |
Other financing activities | 1,946 | (1,985) | 2,488 |
Net cash used by financing activities | (174,646) | (201,967) | (1,884,931) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,697 | (19,525) | (15,272) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 69,634 | (446,042) | (1,383,949) |
Cash, cash equivalents and restricted cash, beginning of period | 1,579,177 | 2,025,219 | 3,409,168 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 69,634 | (446,042) | (1,383,949) |
Cash, cash equivalents and restricted cash, end of period | 1,648,811 | 1,579,177 | 2,025,219 |
Reconciliation of cash, cash equivalents and restricted cash on the Consolidated balance sheets to the Consolidated statements of cash flows: | |||
Cash and cash equivalents | 1,533,806 | 1,433,175 | 1,874,745 |
Restricted cash | 104,642 | 135,424 | 128,935 |
Restricted cash included in Other long-term assets | 10,363 | 10,578 | 21,539 |
Cash, cash equivalents and restricted cash per the Consolidated statements of cash flows | $ 1,648,811 | $ 1,579,177 | $ 2,025,219 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Equity Attributable to Noncontrolling Interests |
Balance, beginning of period at Dec. 31, 2020 | $ 1,722,785 | $ 1,722,785 | $ 1,685 | $ 1,507,706 | $ 1,284,823 | $ (483,417) | $ (588,012) | $ 0 |
Beginning balance (in shares) at Dec. 31, 2020 | 168,503,526 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 650,024 | 650,024 | 650,024 | |||||
Other comprehensive income (loss), net of tax | 242,498 | 242,498 | 242,498 | |||||
Dividends | (92,426) | (92,426) | (92,426) | |||||
Repurchase of common stock | (11,623) | (11,623) | (11,623) | |||||
Share-based compensation | 41,986 | 41,986 | $ 9 | 39,305 | 2,672 | |||
Share-based compensation (in shares) | 861,160 | |||||||
Balance, ending of period at Dec. 31, 2021 | 2,553,244 | 2,553,244 | $ 1,694 | 1,547,011 | 1,842,421 | (240,919) | (596,963) | 0 |
Ending balance (in shares) at Dec. 31, 2021 | 169,364,686 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 739,214 | 741,408 | 741,408 | (2,194) | ||||
Other comprehensive income (loss), net of tax | (101,010) | (101,010) | (101,010) | |||||
Dividends | (93,180) | (93,180) | (93,180) | |||||
Repurchase of common stock | (338,627) | (338,627) | (338,627) | |||||
Share-based compensation | 49,120 | 48,555 | $ 10 | 48,019 | 526 | 565 | ||
Share-based compensation (in shares) | 1,035,526 | |||||||
LiveWire business combination | 98,047 | 93,129 | 93,129 | 4,918 | ||||
Balance, ending of period at Dec. 31, 2022 | $ 2,906,808 | 2,903,519 | $ 1,704 | 1,688,159 | 2,490,649 | (341,929) | (935,064) | 3,289 |
Ending balance (in shares) at Dec. 31, 2022 | 170,400,212 | 170,400,212 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | $ 695,046 | 706,586 | 706,586 | (11,540) | ||||
Other comprehensive income (loss), net of tax | 36,967 | 36,967 | 36,967 | |||||
Dividends | (96,310) | (96,310) | (96,310) | |||||
Repurchase of common stock | (367,191) | (367,191) | (367,191) | |||||
Share-based compensation | $ 76,975 | 69,237 | $ 8 | 64,276 | 4,953 | 7,738 | ||
Share-based compensation (in shares) | 0 | 818,428 | ||||||
Balance, ending of period at Dec. 31, 2023 | $ 3,252,295 | $ 3,252,808 | $ 1,712 | $ 1,752,435 | $ 3,100,925 | $ (304,962) | $ (1,297,302) | $ (513) |
Ending balance (in shares) at Dec. 31, 2023 | 171,218,640 | 171,218,640 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per share (in dollars per share) | $ 0.66 | $ 0.63 | $ 0.60 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation – All references to the “Company” include Harley-Davidson, Inc. and all of its subsidiaries. The consolidated financial statements include the accounts of Harley-Davidson, Inc., its subsidiaries and certain variable interest entities (VIEs) related to secured financing as the Company is the primary beneficiary. All intercompany accounts and material intercompany transactions have been eliminated. On September 26, 2022, the Company's electric motorcycle subsidiary completed a merger with AEA-Bridges Impact Corp. (ABIC), a special purpose acquisition company, to create a new publicly traded company, LiveWire Group, Inc. LiveWire Group, Inc. received net proceeds of approximately $294 million, including a $180 million investment from the Company, net of transaction expenses, a $100 million investment from an independent investor, and a $14 million investment from ABIC . The Company has a controlling equity interest in LiveWire Group, Inc. As the controlling shareholder, the Company consolidates LiveWire Group, Inc. results with additional adjustments to recognize non-controlling shareholder interests. The Company operates in three reportable segments: Harley-Davidson Motor Company (HDMC), LiveWire and Harley-Davidson Financial Services (HDFS). Substantially all of the Company’s international subsidiaries use their respective local currency as their functional currency. Assets and liabilities of international subsidiaries have been translated at period-end exchange rates, and revenues and expenses have been translated using average exchange rates for the period. Monetary assets and liabilities denominated in a currency that is different from an entity's functional currency are remeasured from the transactional currency to the entity's functional currency on a monthly basis. The aggregate transaction gain resulting from foreign currency remeasurements was $14.7 million, $26.2 million, and $22.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. Use of Estimates – The preparation of financial statements in conformity with U.S. generally accepted accounting principles (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. Cash and Cash Equivalents – The Company considers all highly liquid investments with a maturity of 90 days or less when purchased to be cash equivalents. Accounts Receivable, net – The Company’s motorcycles and related products are sold to independent dealers outside the U.S. and Canada generally on open account and the resulting receivables are included in Accounts receivable, net on the Consolidated balance sheets . The allowance for doubtful accounts deducted from total accounts receivable was $2.1 million and $2.9 million as of December 31, 2023 and 2022, respectively. The Company’s evaluation of the allowance for doubtful accounts includes a review to identify non-performing accounts which are evaluated individually. The remaining accounts receivable balances are evaluated in the aggregate based on an aging analysis. The allowance for doubtful accounts is based on factors including past loss experience, the value of collateral, and if applicable, reasonable and supportable economic forecasts. Accounts receivable are written down once management determines that the specific customer does not have the ability to repay the balance in full. The Company’s sales of motorcycles and related products in the U.S. and Canada are financed through HDFS by the purchasing dealers and the related receivables are included in Finance receivables, net on the Consolidated balance sheets . Inventories, net – Substantially all inventories located in the U.S. are valued using the last-in, first-out (LIFO) method. Other inventories totaling $447.5 million and $425.0 million at December 31, 2023 and 2022, respectively, are valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Repossessed Inventory – Repossessed inventory representing recovered collateral on impaired finance receivables is recorded at the lower of cost or net realizable value through a fair value remeasurement. In the period during which the collateral is repossessed, the related finance receivable is adjusted through a change to the allowance for credit losses and reclassified to repossessed inventory, included in Other current assets on the Consolidated balance sheets . Property, Plant and Equipment, net – Property, plant and equipment is recorded at cost, net of accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of each class of property, plant and equipment generally consist of 30 years for buildings, 7 years for building and land improvements, 3 to 10 years for machinery and equipment, and 3 to 7 years for software. Accelerated methods of depreciation are used for income tax purposes. Goodwill – Goodwill represents the excess of acquisition cost over the fair value of the net assets purchased. Goodwill is tested for impairment, based on financial data related to the reporting unit to which it has been assigned, at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired 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. During 2023 and 2022, the Company tested its goodwill balances for impairment and no adjustments were recorded to goodwill as a result of those reviews. Long-lived Assets – The Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such review. If the carrying value of a long-lived asset is considered impaired, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset for assets to be held and used. The Company also reviews the useful life of its long-lived assets when events and circumstances indicate that the actual useful life may be shorter than originally estimated. In the event that the actual useful life is deemed to be shorter than the original useful life, depreciation is adjusted prospectively so that the remaining book value is depreciated over the revised useful life. Asset groups classified as held for sale are measured at the lower of carrying amount or fair value less cost to sell, and a loss is recognized for any initial adjustment required to reduce the carrying amount to the fair value less cost to sell in the period the held for sale criteria are met. The fair value less cost to sell is assessed each reporting period that the asset group remains classified as held for sale. Gains or losses not previously recognized resulting from the sale of an asset group will be recognized on the date of sale. Fair Value Measurements - 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. 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. Refer to Notes 12 and 14 for further discussion regarding the Company's assets measured at fair value. Research and Development Expenses – Expenditures for research activities relating to product development and improvements are charged against income as incurred and included within Selling, administrative and engineering expense on the Consolidated statements of operations . Research and development expenses were $159.3 million, $158.6 million and $175.1 million for 2023, 2022 and 2021, respectively. Advertising Costs – The Company expenses the production cost of advertising the first time the advertising takes place within Selling, administrative and engineering expense . Advertising costs relate to the Company’s efforts to promote its products and brands through the use of media and other means. During 2023, 2022 and 2021, the Company incurred $131.0 million, $105.6 million and $107.6 million in advertising costs, respectively. Shipping and Handling Costs – The Company classifies shipping and handling costs as a component of Motorcycles and related products cost of goods sold . New Accounting Standards Accounting Standards Not Yet Adopted In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07). ASU 2023-07 is intended to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The main provisions of ASU 2023-07 require a public entity to disclose on an annual and interim basis: (i) significant segment expenses provided to the chief operating decision maker, (ii) an amount representing the difference between segment revenue less segment expenses disclosed under the significant segment expense principle and each reported measure of segment profit or loss and a description of its composition, (iii) provide all annual disclosures about a reportable segment's profit or loss and assets currently required under Topic 280 in interim periods, (iv) clarify that if the chief operating decision maker uses more than one measure of a segment's profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit, (v) the title and position of the chief operating decision maker and an explanation of how the chief operating decision maker uses the reported measure of segment profit or loss in assessing segment performance and deciding how to allocate resources, and (vi) all disclosures required by ASU 2023-07 and all existing segment disclosures under Topic 280 for an entity with a single reportable segment. The new guidance is effective for the fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is still evaluating the impact ASU 2023-07 will have on the Company's consolidated financial statement disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to enhance the transparency and decision usefulness of income tax disclosures. The main provisions of ASU 2023-09 require a public entity to disclose on an annual basis (i) specific prescribed categories in the rate reconciliation, (ii) additional information for reconciling items that meet a quantitative threshold, (iii) the amount of income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes, (iv) the amount of income taxes paid, net of refunds received, disaggregated by individual jurisdictions in which income taxes paid is equal to greater than 5 percent of total income taxes paid, (v) income or loss from continuing operations before income tax expense or benefit disaggregated between domestic and foreign, and (vi) income tax expense or benefit from continuing operations disaggregated by federal, state, and foreign. ASU 2023-09 also removes certain disclosure requirements related to unrecognized tax benefits and cumulative unrecognized temporary differences. The new guidance is effective for the fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is still evaluating the impact ASU 2023-09 will have on the Company's consolidated financial statement disclosures. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
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 for the years ended December 31 (in thousands): 2023 2022 2021 HDMC: Motorcycles $ 3,798,977 $ 3,787,484 $ 3,468,689 Parts and accessories 698,095 731,645 $ 740,893 Apparel 244,333 271,107 $ 228,011 Licensing 28,599 39,423 $ 37,790 Other 74,590 58,013 $ 29,051 4,844,594 4,887,672 $ 4,504,434 LiveWire 38,298 46,833 $ 35,806 Motorcycles and related products revenue 4,882,892 4,934,505 $ 4,540,240 HDFS: Interest income 802,078 693,615 $ 671,708 Other 151,508 127,010 $ 124,360 Financial services revenue 953,586 820,625 $ 796,068 $ 5,836,478 $ 5,755,130 $ 5,336,308 Motorcycles and Related Products Revenue (HDMC and LiveWire Segments) Motorcycles, Electric Balance Bikes, Parts and Accessories, and Apparel – Revenues from the sale of motorcycles, electric balance bikes, parts and accessories, and apparel are recorded when control is transferred to the customer, generally at the time of shipment to independent dealers and distributors or at the time of delivery to retail customers. The sale of products to independent dealers outside the U.S. and Canada is generally on open account with terms that approximate 30-120 days and the resulting receivables are included in Accounts receivable, net on the Consolidated balance sheets . The sale of products to independent dealers in the U.S. and Canada is financed through HDFS and the related receivables are included in Finance receivables, net on the Consolidated balance sheets . The Company may offer sales incentive programs to dealers and retail customers designed to promote the sale of motorcycles, parts and accessories, and apparel. The Company estimates its variable consideration sold under its sales incentive programs using the expected value method. The Company accounts for consideration payable to a customer as part of its sales incentives as a reduction of revenue, which is accrued at the later of the date the related sale is recorded or the date the incentive program is both approved and communicated. The Company offers the right to return eligible parts and accessories and apparel. When the Company offers a right to return, it estimates returns based on an analysis of historical trends and records revenue on the initial sale only in the amount that it expects to be entitled. The remaining consideration is deferred in a refund liability account. The refund liability is remeasured for changes in the estimate at each reporting date with a corresponding adjustment to revenue. Variable consideration related to sales incentives and rights to return is adjusted at the earliest of when the amount of consideration the Company expects to receive changes or the consideration becomes fixed. Adjustments for variable consideration related to previously recognized sales were not material during any periods presented. Shipping and handling costs associated with freight after control of a product has transferred to a customer are accounted for as fulfillment costs. The Company accrues for the shipping and handling in the same period that the related revenue is recognized. The Company offers standard, limited warranties on its motorcycles, electric balance bikes and parts and accessories. These warranties provide assurance that the product will function as expected and are not separate performance obligations. The Company accounts for estimated warranty costs as a liability when control of the product transfers to the customer. Licensing – The Company licenses the Harley-Davidson name and other trademarks owned by the Company and collects royalties from its licensees. The trademark licenses are considered symbolic intellectual property, which grant the licensees a right to access the Company’s intellectual property. The Company satisfies its performance obligation over the license period, as the Company fulfills its promise to grant the licensees rights to use and benefit from the intellectual property as well as maintain the intellectual property. Payment is typically due within thirty days of the end of each quarter for the royalties earned in that quarter. Revenue, in the form of sales-based royalties, is recognized when the licensees’ subsequent sales occur. The Company applies the practical expedient in Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers , to recognize licensing revenues in the amount that the Company has the right to invoice because the royalties due each period correspond directly with the value of the Company’s performance to date. Revenue will be recognized over the remaining contract terms which range up to 4 years. Other – Other revenue consists primarily of revenue from membership sales, museum admissions and events, and other miscellaneous products and services. Financial Services Revenue (HDFS Segment) Interest Income – Interest income on finance receivables is recorded as earned and is based on the average outstanding daily balance for wholesale and retail receivables. Accrued and uncollected interest is classified with Finance receivables, net . Certain loan origination costs related to finance receivables, including payments made to dealers for certain retail loans, are deferred and recorded within Finance receivables, net and amortized over the life of the contract. Other Income – Other income consists primarily of insurance and licensing revenues. HDFS works with certain unaffiliated third parties to offer motorcycle insurance and voluntary protection products through most dealers in the U.S. and Canada. HDFS also works with third-party financial institutions that issue credit cards or offer other financial products bearing the Harley-Davidson brand in the U.S. and internationally. For many of these contracts, the Company grants temporary rights to use the licensed trademarks owned by the Company and collects royalties from its customers in connection with sales of their products. The trademark licenses are considered symbolic intellectual property, which grant the customer a right to access the intellectual property. The Company satisfies its performance obligation over the license period, as it fulfills its promise to grant the customer rights to use and benefit from the intellectual property as well as maintain the intellectual property. Royalty and profit sharing amounts are received either quarterly or per annum, based upon the contract. Revenue, in the form of sales-based royalties, is recognized when the customers’ subsequent sales occur. Revenue will be recognized over the remaining contract terms which range up to 4 years. The Company is the primary obligor for certain other voluntary protection product contracts and as a result, revenue is recognized over the life of the contract as the Company fulfills its performance obligation. Contract Liabilities The Company maintains certain contract liability 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 memberships, loyalty points earned under membership programs and certain insurance-related contracts. Contract liabilities are recognized as revenue as the Company performs under the contract. Contract liabilities, included in Accrued liabilities and Other long-term liabilities on the Consolidated balance sheets , were as follows as of December 31 (in thousands): 2023 2022 Balance, beginning of period $ 44,100 $ 40,092 Balance, end of period $ 47,091 $ 44,100 Previously deferred contract liabilities recognized as revenue in 2023 and 2022 were $26.7 million and $27.5 million, respectively. The Company expects to recognize approximately $23.4 million of the remaining unearned revenue in 2024 and $23.7 million thereafter. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax provision (benefit) for the years ended December 31, consists of the following (in thousands): 2023 2022 2021 Current: Federal $ 125,875 $ 139,423 $ 134,111 State 22,340 20,367 14,508 Foreign 53,674 48,165 28,266 201,889 207,955 176,885 Deferred: Federal (18,781) (12,313) (2,169) State (6,209) (7,761) (3,795) Foreign (5,069) 4,138 (1,708) (30,059) (15,936) (7,672) $ 171,830 $ 192,019 $ 169,213 The components of Income before income taxes for the years ended December 31, were as follows (in thousands): 2023 2022 2021 Domestic $ 614,713 $ 750,793 $ 698,578 Foreign 252,163 180,440 120,659 $ 866,876 $ 931,233 $ 819,237 Income tax provision differs from the amount that would be provided by applying the statutory U.S. corporate income tax rate for the years ended December 31, due to the following items (in thousands): 2023 2022 2021 Provision at statutory rate $ 182,044 $ 195,553 $ 172,040 State taxes, net of federal benefit 21,659 19,223 16,568 Foreign rate differential 7,887 3,620 4,303 Foreign derived intangible income (8,669) (8,187) — Research and development credit (23,130) (18,809) (8,046) Unrecognized tax benefits including interest and penalties (9,210) (11,793) (6,554) Valuation allowance adjustments 7,345 6,714 (1,928) State credits (8,035) (6,954) (5,403) Global intangible low-taxed income 474 1,607 1,143 Return to provision adjustments 1,057 (6,318) (8,500) Executive compensation limitation 8,712 4,893 3,104 Other foreign inclusions 1,563 16,562 34 Tax incentives (12,996) (7,202) (1,307) Other 3,129 3,110 3,759 Income tax provision $ 171,830 $ 192,019 $ 169,213 The 2017 Tax Cuts and Jobs Act subjects U.S. shareholders to current tax on global intangible low-taxed income (GILTI) earned by certain foreign subsidiaries for which a company can elect to either recognize deferred taxes or to provide tax expense in the year incurred. The Company has elected to account for GILTI in the year the tax is incurred. The Company qualifies for certain tax holidays in Thailand if certain employment and manufacturing criteria are met. The impact of the tax holiday decreased foreign taxes by $13.0 million and $7.2 million in 2023 and 2022, respectively. The benefit of the tax holiday on net income per share (diluted) was $0.09 and $0.04 in 2023 and 2022, respectively. The principal components of the Company’s deferred income tax assets and liabilities as of December 31, include the following (in thousands): 2023 2022 Deferred income tax assets: Accruals not yet tax deductible $ 152,288 $ 133,349 Stock compensation 12,995 11,616 Net operating loss and research & development tax credit carryforwards 68,809 63,517 Amortization of research and experimental costs 78,169 43,034 Other 66,749 55,800 379,010 307,316 Valuation allowance (48,516) (40,878) 330,494 266,438 Deferred income tax liabilities: Depreciation, tax in excess of book (57,641) (49,889) Pension and postretirement healthcare plan obligations (82,682) (58,843) Withholding tax (29,904) (23,632) Other (32,597) (28,561) (202,824) (160,925) $ 127,670 $ 105,513 The Company reviews its deferred income tax asset valuation allowances on a quarterly basis, or whenever events or changes in circumstances indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred income tax asset is considered, along with any positive or negative evidence including tax law changes. Since future financial results and tax law may differ from previous estimates, periodic adjustments to the Company’s valuation allowances may be necessary. The Company's gross state net operating loss carryforwards were as follows at December 31 (in thousands): Year of Expiration 2023 2022 2031 $ 238,682 $ 219,726 2032 12 24 2033 46 46 2034 108 109 2035 1,085 553 2036 60 60 2037 187 195 2038 824 820 2039 11,285 9,375 2040 34,354 31,879 2041 2,135 2,135 2042 347 458 Indefinite 7,280 2,923 $ 296,405 $ 268,303 The Company also had Wisconsin research and development credit carryforwards of $53.2 million at December 31, 2023, expiring in 2025-2038. At December 31, 2023, the Company had a deferred tax asset of $59.3 million related to its state net operating loss and Wisconsin research and development credit carryforwards and a deferred tax asset of $9.5 million related to foreign net operating losses. The Company's valuation allowance was $48.5 million at December 31, 2023 and included $32.7 million related to state net operating loss and Wisconsin research and development credit carryforwards, $7.8 million related to foreign net operating loss carryforwards and $8.0 million related to other deferred tax assets. The change in the valuation allowance from prior year included an increase of $7.3 million related to state net operating loss and Wisconsin research and development credit carryforwards and an increase of $0.3 million related to foreign operations. The Company recognizes interest and penalties related to unrecognized tax benefits in Income tax provision (benefit) . Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands): 2023 2022 Unrecognized tax benefits, beginning of period $ 32,029 $ 44,856 Increase in unrecognized tax benefits for tax positions taken in a prior period 3,159 373 Decrease in unrecognized tax benefits for tax positions taken in a prior period (10,444) (8,885) Increase in unrecognized tax benefits for tax positions taken in the current period 870 3,158 Statute lapses — (2,753) Settlements with taxing authorities (7,400) (4,720) Unrecognized tax benefits, end of period $ 18,214 $ 32,029 The amount of unrecognized tax benefits as of December 31, 2023 and 2022 that, if recognized, would affect the effective tax rate was $16.5 million and $27.1 million, respectively. The total gross amount of benefit related to interest and penalties associated with unrecognized tax benefits recognized during 2023, 2022 and 2021 in the Consolidated statements of operations was $8.7 million, $5.6 million and $2.6 million, respectively. The total gross amount of interest and penalties associated with unrecognized tax benefits recognized at December 31, 2023 and 2022 in the Consolidated balance sheets was $8.6 million and $17.4 million, respectively. The Company does not expect a significant increase or decrease to the total amounts of unrecognized tax benefits related to continuing operations during the fiscal year ending December 31, 2024. However, the Company is under regular audit by tax authorities. The Company believes that it has appropriate support for the positions taken on its tax returns and that its annual tax provision includes amounts sufficient to pay any assessments. Nonetheless, the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year. The Company or one of its subsidiaries files income tax returns in the U.S. federal and Wisconsin state jurisdictions and various other state and foreign jurisdictions. The Company is no longer subject to income tax examinations for Wisconsin state income taxes before 2019 or for U.S. federal income taxes before 2020. In all other jurisdictions, tax periods prior to 2017 are closed. |
Capital Stock and Earnings Per
Capital Stock and Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Capital Stock and Earnings Per Share | Capital Stock and Earnings Per Share Capital Stock – The Company is authorized to issue 2,000,000 shares of preferred stock of $1.00 par value, none of which is outstanding. The Company's common stock has a par value of $0.01 per share. Share information regarding the Company's common stock at December 31, was as follows: 2023 2022 Common stock shares: Authorized 800,000,000 800,000,000 Issued 171,218,640 170,400,212 Outstanding 136,312,009 145,862,632 Treasury stock shares 34,906,631 24,537,580 Discretionary share repurchases were $350.0 million or 10.2 million shares and $324.5 million or 8.4 million shares during the years ended December 31, 2023 and 2022, respectively. There were no discretionary share repurchases during the year ended December 31, 2021. Share repurchases of common stock that employees surrendered to satisfy withholding taxes in connection with the vesting of restricted stock units (RSUs) and performance shares were $14.0 million or 0.3 million shares, $14.2 million or 0.4 million shares, and $11.6 million or 0.3 million shares during the years ended December 31, 2023, 2022 and 2021, respectively, as discussed further in Note 16. The Company paid cash dividends of $0.66, $0.63, and $0.60 per share during the years ended December 31, 2023, 2022, and 2021, respectively. Earnings Per Share – The computation of basic and diluted earnings per share for the years ended December 31, was as follows (in thousands except per share amounts): 2023 2022 2021 Net income attributable to Harley-Davidson, Inc. $ 706,586 $ 741,408 $ 650,024 Basic weighted-average shares outstanding 142,378 148,012 153,747 Effect of dilutive securities – employee stock compensation plan 2,725 1,339 1,233 Diluted weighted-average shares outstanding 145,103 149,351 154,980 Earnings per share: Basic $ 4.96 $ 5.01 $ 4.23 Diluted $ 4.87 $ 4.96 $ 4.19 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 1.0 million, 1.9 million and 0.5 million shares during 2023, 2022 and 2021, respectively. |
Additional Balance Sheet and Ca
Additional Balance Sheet and Cash Flow Information | 12 Months Ended |
Dec. 31, 2023 | |
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 consisted of the following at December 31 (in thousands): 2023 2022 Mutual funds $ 34,079 $ 33,071 Mutual funds, included in Other long-term assets on the Consolidated balance sheets , are carried at fair value with gains and losses recorded in income. Mutual funds are held to support certain deferred compensation obligations. Inventories, net consisted of the following as of December 31 (in thousands): 2023 2022 Raw materials and work in process $ 389,221 $ 331,380 Motorcycle finished goods 514,964 549,041 Parts and accessories and apparel 150,844 187,039 Inventory at lower of FIFO cost or net realizable value 1,055,029 1,067,460 Excess of FIFO over LIFO cost (125,078) (116,500) $ 929,951 $ 950,960 Inventory obsolescence reserves deducted from FIFO cost were $110.2 million and $84.6 million as of December 31, 2023 and 2022, respectively. Property, plant and equipment, net consisted of the following as of December 31 (in thousands): 2023 2022 Land and related improvements $ 66,939 $ 71,360 Buildings and related improvements 431,215 411,859 Machinery and equipment 1,491,448 1,507,224 Software 722,213 705,013 Construction in progress 243,010 189,492 2,954,825 2,884,948 Accumulated depreciation (2,223,101) (2,195,062) $ 731,724 $ 689,886 Software, net of accumulated amortization, included in Property, plant and equipment, net, was $75.3 million and $59.2 million as of December 31, 2023 and 2022, respectively. Accrued liabilities consisted of the following as of December 31 (in thousands): 2023 2022 Payroll, employee benefits and related expenses $ 101,955 $ 108,980 Sales incentive programs 116,167 50,298 Warranty and recalls 41,375 46,707 Interest 84,313 55,670 Tax-related accruals 38,219 51,730 Contract liability 23,357 17,615 Leases 18,685 16,208 Fair value of derivative financial instruments 12,806 26,022 Other 209,982 247,715 $ 646,859 $ 620,945 Deposits – HDFS offers brokered certificates of deposit to customers indirectly through contractual arrangements with third-party banks and/or securities brokerage firms through its bank subsidiary. The Company had $447.8 million and $317.4 million, net of fees, of interest-bearing brokered certificates of deposit outstanding as of December 31, 2023 and December 31, 2022, respectively. The liabilities for deposits are included in Short-term deposits, net or Long-term deposits, net on the Consolidated balance sheets based upon the term of each brokered certificate of deposit issued. Each separate brokered certificate of deposit is issued under a master certificate, and as such, all outstanding brokered certificates of deposit are considered below the Federal Deposit Insurance Corporation insurance coverage limits. Future maturities of the Company's certificates of deposit as of December 31, 2023 were as follows (in thousands): 2024 $ 253,720 2025 61,002 2026 79,678 2027 54,158 Thereafter — Future maturities 448,558 Unamortized fees (776) $ 447,782 Operating Cash Flow – The reconciliation of Net income to Net cash provided by operating activities for the years ended December 31, was as follows (in thousands): 2023 2022 2021 Cash flows from operating activities: Net income $ 695,046 $ 739,214 $ 650,024 Adjustments to reconcile Net income to Net cash provided by operating activities: Depreciation and amortization 158,112 151,942 165,185 Amortization of deferred loan origination costs 85,018 94,914 86,115 Amortization of financing origination fees 13,208 15,105 13,810 Provision for long-term employee benefits (67,624) (21,891) 8,317 Employee benefit plan contributions and payments (5,736) (14,320) (17,133) Stock compensation expense 82,901 54,353 42,156 Net change in wholesale finance receivables related to sales (387,743) (198,623) 89,001 Provision for credit losses 227,158 145,133 25,049 Deferred income taxes (30,059) (15,936) (7,672) Other, net (39,713) (13,027) (9,985) Changes in current assets and liabilities: Accounts receivable, net (11,443) (82,385) (53,463) Finance receivables – accrued interest and other (339) 414 13,316 Inventories, net 21,257 (254,170) (207,550) Accounts payable and accrued liabilities 28,570 4,503 173,548 Other current assets (13,726) (56,765) 4,983 59,841 (190,753) 325,677 Net cash provided by operating activities $ 754,887 $ 548,461 $ 975,701 Cash paid during the years ended December 31, for interest and income taxes was as follows (in thousands): 2023 2022 2021 Interest $ 290,467 $ 231,651 $ 191,663 Income taxes $ 237,658 $ 244,374 $ 155,579 |
Finance Receivables
Finance Receivables | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Finance receivables include both retail and wholesale finance receivables, including amounts held by consolidated VIEs. Finance receivables are recorded in the financial statements at amortized cost net of an allowance for credit losses. The Company provides retail financial services to customers of its 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 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. As of both December 31, 2023 and 2022, approximately 11% and 10% of gross outstanding retail finance receivables were originated in Texas and California, respectively. There were no other states that accounted for more than 10% of gross outstanding retail finance receivables. The Company offers wholesale financing to its 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 at December 31, were as follows (in thousands): 2023 2022 Retail finance receivables: United States $ 6,657,998 $ 6,582,316 Canada 160,701 165,885 6,818,699 6,748,201 Wholesale finance receivables: United States 1,016,815 724,126 Canada 44,717 24,822 1,061,532 748,948 7,880,231 7,497,149 Allowance for credit losses (381,966) (358,711) $ 7,498,265 $ 7,138,438 Approved but unfunded retail finance loans totaled $223.2 million and $189.1 million at December 31, 2023 and 2022, respectively. Unused lines of credit extended to the Company's wholesale finance customers totaled $1.34 billion and $1.44 billion at December 31, 2023 and 2022, respectively. Wholesale finance receivables are generally contractually due within one year. As of December 31, 2023, contractual maturities of total finance receivables were as follows (in thousands): United States Canada Total 2024 $ 2,103,636 $ 77,128 $ 2,180,764 2025 1,249,110 34,413 1,283,523 2026 1,418,130 37,726 1,455,856 2027 1,514,263 41,359 1,555,622 2028 1,103,316 14,792 1,118,108 Thereafter 286,358 — 286,358 $ 7,674,813 $ 205,418 $ 7,880,231 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. The allowance for credit losses represents the Company’s estimate of lifetime losses for its finance receivables. 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. 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. 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 two-year reasonable and supportable period. For periods beyond the Company’s reasonable and supportable forecasts, the Company reverts to its average historical loss experience using a mean-reversion process over a three-year period. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or term as well as other relevant factors. 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 individually evaluates loans that do not share risk characteristics. Loans identified as those for which foreclosure is probable are classified as Non-Performing, and a specific allowance for credit losses is established when appropriate. The specific allowance is determined based on the 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. 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. The Company considers various third-party economic forecast scenarios as part of estimating the allowance for expected credit losses and applies a probability-weighting to those economic forecast scenarios. Each quarter, the Company's outlook on economic conditions impacts the Company's retail and wholesale estimates for expected credit losses. At the end of 2023, the Company's probability weighting of its economic forecast scenarios was weighted towards a near-term recession given continued challenging macro-economic conditions including a persistently high interest rate environment, ongoing elevated inflation levels and muted consumer confidence. Additionally, 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 establish an appropriate allowance for credit losses balance. These factors include motorcycle recovery value considerations, delinquency adjustments, specific problem loan trends, and changes in other portfolio-specific loan characteristics as well as current loss experience. During the year ended December 31, 2023, the Company experienced increased retail credit losses driven by several factors connected to the macro-economic environment and the related customer and industry dynamics, including the impact of higher motorcycle payments and general inflationary pressures on customers. Additionally, the Company experienced downward pressure on recovery values at auction during the year-ended December 31, 2023. 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 known conditions at the balance sheet date and management’s expectations surrounding the economic forecasts. The Company will continue to monitor future economic trends and conditions. Expectations surrounding the Company's economic forecasts may change in future periods as additional information becomes available. The allowance for credit losses on finance receivables is comprised of individual components relating to wholesale and retail finance receivables. Changes in the allowance for credit losses on finance receivables by portfolio for the year ended December 31, were as follows (in thousands): 2023 Retail Wholesale Total Balance, beginning of period $ 345,275 $ 13,436 $ 358,711 Provision for credit losses 225,665 1,493 227,158 Charge-offs (263,915) — (263,915) Recoveries 60,012 — 60,012 Balance, end of period $ 367,037 $ 14,929 $ 381,966 2022 Retail Wholesale Total Balance, beginning of period $ 326,320 $ 13,059 $ 339,379 Provision for credit losses 144,756 377 145,133 Charge-offs (176,718) — (176,718) Recoveries 50,917 — 50,917 Balance, end of period $ 345,275 $ 13,436 $ 358,711 2021 Retail Wholesale Total Balance, beginning of period $ 371,738 $ 19,198 $ 390,936 Provision for credit losses 31,338 (6,289) 25,049 Charge-offs (122,637) — (122,637) Recoveries 45,881 150 46,031 Balance, end of period $ 326,320 $ 13,059 $ 339,379 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 vintage and credit quality indicator was as follows (in thousands): December 31, 2023 2023 2022 2021 2020 2019 2018 & Prior Total U.S. Retail: Super prime $ 1,066,321 $ 729,339 $ 376,474 $ 151,004 $ 70,627 $ 27,013 $ 2,420,778 Prime 1,173,463 993,417 584,305 259,995 139,011 78,880 3,229,071 Sub-prime 333,099 275,964 189,688 101,437 63,393 44,568 1,008,149 2,572,883 1,998,720 1,150,467 512,436 273,031 150,461 6,657,998 Canadian Retail: Super prime 48,705 31,733 17,744 9,241 4,521 1,524 113,468 Prime 13,764 11,434 7,336 4,390 2,728 1,838 41,490 Sub-prime 1,846 1,546 739 817 525 270 5,743 64,315 44,713 25,819 14,448 7,774 3,632 160,701 $ 2,637,198 $ 2,043,433 $ 1,176,286 $ 526,884 $ 280,805 $ 154,093 $ 6,818,699 Current YTD period gross charge-offs: US Retail $ 20,047 $ 102,387 $ 74,212 $ 30,896 $ 18,088 $ 14,655 $ 260,285 Canadian Retail 527 1,004 866 472 278 483 3,630 $ 20,574 $ 103,391 $ 75,078 $ 31,368 $ 18,366 $ 15,138 $ 263,915 December 31, 2022 2022 2021 2020 2019 2018 2017 & Prior Total U.S. Retail: Super prime $ 1,118,198 $ 612,890 $ 276,492 $ 159,550 $ 69,652 $ 26,701 $ 2,263,483 Prime 1,433,141 887,817 425,401 260,458 135,454 79,611 3,221,882 Sub-prime 420,660 298,153 164,946 108,372 57,993 46,827 1,096,951 2,971,999 1,798,860 866,839 528,380 263,099 153,139 6,582,316 Canadian Retail: Super prime 49,033 30,090 17,553 12,215 4,975 1,527 115,393 Prime 16,094 10,705 7,283 5,098 3,068 1,787 44,035 Sub-prime 2,223 1,402 1,173 869 475 315 6,457 67,350 42,197 26,009 18,182 8,518 3,629 165,885 $ 3,039,349 $ 1,841,057 $ 892,848 $ 546,562 $ 271,617 $ 156,768 $ 6,748,201 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. Additionally, 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 finance receivables, by vintage and credit quality indicator, was as follows (in thousands): December 31, 2023 2023 2022 2021 2020 2019 2018 & Prior Total Non-Performing $ — $ — $ — $ — $ — $ — $ — Doubtful — — — — — — — Substandard 10,934 258 — — 5 — 11,197 Special Mention 641 30 — — — — 671 Medium Risk 2,905 — — — — — 2,905 Low Risk 961,519 66,757 5,107 4,962 7,786 628 1,046,759 $ 975,999 $ 67,045 $ 5,107 $ 4,962 $ 7,791 $ 628 $ 1,061,532 December 31, 2022 2022 2021 2020 2019 2018 2017 & Prior Total Non-Performing $ — $ — $ — $ — $ — $ — $ — Doubtful — — — — — — — Substandard — — — — — — — Special Mention — — — — — — — Medium Risk — — — — — — — Low Risk 714,238 11,478 6,646 8,457 7,938 191 748,948 $ 714,238 $ 11,478 $ 6,646 $ 8,457 $ 7,938 $ 191 $ 748,948 Retail finance receivables are contractually delinquent if the minimum payment is not received by the specified due date. Retail finance receivables at amortized cost, excluding accrued interest, are generally charged-off when the receivable is 120 days or more delinquent, the related asset is repossessed, or the receivable is otherwise deemed uncollectible. All retail finance receivables accrue interest until either collected or charged-off. The Company reverses accrued interest related to charged-off accounts against interest income when the account is charged-off. The Company reversed $27.5 million and $19.1 million of accrued interest against interest income during the years ended December 31, 2023 and 2022, respectively. Due to the timely write-off of accrued interest, the Company made the election provided under ASC Topic 326, Financial Instruments - Credit Losses to exclude accrued interest from its allowance for credit losses. Accordingly, as of December 31, 2023 and 2022, all retail finance receivables were accounted for as interest-earning receivables, of which $67.3 million and $62.0 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 wholesale accounts during 2023 or 2022. As such, the Company did not reverse any wholesale accrued interest . There were no dealers on non-accrual status at December 31, 2023 or December 31, 2022. The aging analysis of finance receivables at December 31, was as follows (in t housands): 2023 Current 31-60 Days 61-90 Days Greater than Total Total Retail finance receivables $ 6,516,342 $ 168,027 $ 67,033 $ 67,297 $ 302,357 $ 6,818,699 Wholesale finance receivables 1,060,561 763 25 183 971 1,061,532 $ 7,576,903 $ 168,790 $ 67,058 $ 67,480 $ 303,328 $ 7,880,231 2022 Current 31-60 Days 61-90 Days Greater than Total Total Retail finance receivables $ 6,473,462 $ 152,343 $ 60,446 $ 61,950 $ 274,739 $ 6,748,201 Wholesale finance receivables 748,682 222 44 — 266 748,948 $ 7,222,144 $ 152,565 $ 60,490 $ 61,950 $ 275,005 $ 7,497,149 The recorded investment of retail and wholesale finance receivables, excluding non-accrual status finance receivables, that were contractually past due 90 days or more at December 31, was as follows (in thousands): 2023 2022 United States $ 66,119 $ 60,945 Canada 1,361 1,005 $ 67,480 $ 61,950 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Changes in the carrying amount of goodwill in the HDMC and LiveWire segments for the years ended December 31, was as follows (in thousands): 2023 HDMC LiveWire Total Balance, beginning of period $ 53,763 $ 8,327 $ 62,090 Currency translation 606 — 606 Balance, end of period $ 54,369 $ 8,327 $ 62,696 2022 HDMC LiveWire Total Balance, beginning of period $ 54,850 $ 8,327 $ 63,177 Currency translation (1,087) — (1,087) Balance, end of period $ 53,763 $ 8,327 $ 62,090 The HDFS segment had no goodwill at December 31, 2023 or December 31, 2022. Intangible assets, excluding goodwill, consist primarily of customer relationships and trademarks with useful lives ranging from 3 to 20 years. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Intangible assets are recorded in Other long-term assets on the Consolidated balance sheets. Intangible assets at December 31, were as follows (in thousands): 2023 2022 Gross carrying amount $ 12,475 $ 10,864 Accumulated amortization (5,447) (4,472) $ 7,028 $ 6,392 Amortization of intangible assets, excluding goodwill, recorded in Selling, administrative and engineering expense on the Consolidated statements of operations was $0.9 million, $0.8 million and $0.4 million for 2023, 2022 and 2021, respectively. Future amortization of the Company's intangible assets as of December 31, 2023 is as follows (in thousands): 2024 $ 1,157 2025 1,105 2026 1,024 2027 622 2028 622 Thereafter 2,498 $ 7,028 |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial 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, Canadian dollar and Mexican peso. 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 its motorcycle operations. The Company's commodity contracts generally have maturities of less than one year. The Company periodically utilizes treasury rate and swap rate lock contracts to fix the interest rate on a portion of the principal related to an anticipated issuance of long-term debt 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 (OCI) and subsequently reclassified into income 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. Cash flow activity associated with the Company's derivative financial instruments is recorded in Cash flows from operating activities on the Consolidated statement of cash flow. The notional and fair values of the Company's derivative financial instruments under ASC Topic 815, at December 31, were as follows (in thousands): Derivative Financial Instruments 2023 2022 Notional Assets (a) Liabilities (b) Notional Assets (a) Liabilities (b) Foreign currency contracts $ 540,088 $ 3,529 $ 9,194 $ 550,160 $ 6,054 $ 13,440 Commodity contracts 642 — 134 1,361 — 410 Cross-currency swaps 1,420,560 15,080 3,160 1,367,460 — 36,101 $ 1,961,290 $ 18,609 $ 12,488 $ 1,918,981 $ 6,054 $ 49,951 Derivative Financial Instruments 2023 2022 Notional Assets (c) Liabilities (b) Notional Assets (c) Liabilities (b) Commodity contracts 5,637 — 318 10,803 310 310 Interest rate caps 617,859 464 — 1,058,827 2,373 — $ 623,496 $ 464 $ 318 $ 1,069,630 $ 2,683 $ 310 (a) Includes $15.1 million of cross-currency swaps recorded in Other long-term assets as of December 31, 2023 with all remaining amounts recorded in Other current assets . (b) Includes $24.2 million of cross-currency swaps recorded in Other long-term liabilities as of December 31, 2022 with all remaining amounts recorded in Accrued liabilities. (c) Includes $0.5 million and $2.4 million of interest rate caps recorded in Other Long-term assets as of December 31, 2023 and December 31, 2022, respectively, with all remaining amounts recorded in Other current assets. The amount of gains and losses related to derivative financial instruments designated as cash flow hedges for the years ended December 31, were as follows (in thousands): Gain/(Loss) Gain/(Loss) 2023 2022 2021 2023 2022 2021 Foreign currency contracts $ 1,859 $ 26,093 $ 29,602 $ 1,301 $ 46,077 $ (12,531) Commodity contracts (654) 312 345 (930) 703 313 Cross-currency swaps 48,019 (71,172) (103,551) 43,812 (79,952) (115,200) Treasury rate lock contracts 1,139 — — (53) (426) (502) Interest rate swaps — — 397 — — (2,689) Swap rate lock contracts (1,780) — — (452) — — $ 48,583 $ (44,767) $ (73,207) $ 43,678 $ (33,598) $ (130,609) The location and amount of gains and losses recognized in income related to derivative financial instruments designated as cash flow hedges for the years ended December 31, were as follows (in thousands): Motorcycles and related products Selling, administrative & Interest expense Financial services interest expense 2023 Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded $ 3,322,306 $ 1,175,550 $ 30,787 $ 332,380 Gain/(loss) reclassified from AOCL into income: Foreign currency contracts $ 1,301 $ — $ — $ — Commodity contracts $ (930) $ — $ — $ — Cross-currency swaps $ — $ 43,812 $ — $ — Treasury rate lock contracts $ — $ — $ (363) $ 310 Swap rate lock contracts $ — $ — $ — $ (452) 2022 Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded $ 3,403,728 $ 1,079,338 $ 31,235 $ 217,653 Gain/(loss) reclassified from AOCL into income: Foreign currency contracts $ 46,077 $ — $ — $ — Commodity contracts $ 703 $ — $ — $ — Cross-currency swaps $ — $ (79,952) $ — $ — Treasury rate lock contracts $ — $ — $ (363) $ (63) 2021 Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded $ 3,243,287 $ 1,051,589 $ 30,972 $ 192,944 Gain/(loss) reclassified from AOCL into income: Foreign currency contracts $ (12,531) $ — $ — $ — Commodity contracts $ 313 $ — $ — $ — Cross-currency swaps $ — $ (115,200) $ — $ — Treasury rate lock contracts $ — $ — $ (363) $ (139) Interest rate swaps $ — $ — $ — $ (2,689) The amount of net gain included in Accumulated other comprehensive loss (AOCL) at December 31, 2023, estimated to be reclassified into income over the next 12 months was $23.2 million. The amount of gains and losses recognized in income related to derivative financial instruments not designated as hedging instruments as of December 31 were as follows (in thousands). Gains and losses on foreign currency contracts and commodity contracts were recorded in Motorcycles and related products cost of goods sold. Gains and losses on interest rate caps were recorded in Selling, administrative & engineering expense . Amount of Gain/(Loss) 2023 2022 2021 Foreign currency contracts $ 125 $ 7,730 $ (2,374) Commodity contracts (1,426) 1,264 1,966 Interest rate caps (1,908) 530 313 $ (3,209) $ 9,524 $ (95) 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 | 12 Months Ended |
Dec. 31, 2023 | |
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 liability 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 used in manufacturing and distribution processes. 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 6 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 years ended December 31, 2023, 2022, and 2021 was $26.0 million, $25.3 million, and $24.9 million, respectively. This includes variable lease costs related to assets used in manufacturing and distribution processes of approximately $3.2 million, $3.3 million, and $4.4 million for the years ended December 31, 2023, 2022, and 2021, respectively. Other variable and short-term lease costs were not material. Balance sheet information related to the Company's leases at December 31, was as follows (in thousands): 2023 2022 Lease assets $ 69,650 $ 43,931 Accrued liabilities $ 18,685 $ 16,208 Lease liabilities 51,848 26,777 $ 70,533 $ 42,985 Future maturities of the Company's operating lease liabilities as of December 31, 2023 were as follows (in thousands): 2024 $ 21,804 2025 18,194 2026 13,071 2027 8,067 2028 7,074 Thereafter 12,050 Future lease payments 80,260 Present value discount (9,727) Lease liabilities $ 70,533 Other lease information surrounding the Company's operating leases as of December 31, was as follows (dollars in thousands): 2023 2022 Cash outflows for amounts included in the measurement of lease liabilities $ 20,622 $ 19,776 ROU assets obtained in exchange for lease obligations, net of modifications $ 45,703 $ 16,257 Weighted-average remaining lease term (in years) 4.70 3.32 Weighted-average discount rate 5.0 % 2.6 % |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
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 at December 31 (in thousands): 2023 2022 Unsecured commercial paper $ 878,935 $ 770,468 Debt with a contractual term greater than 12 months is generally classified as long-term and consisted of the following at December 31 (in thousands): 2023 2022 Secured debt: Asset-backed Canadian commercial paper conduit facility $ 70,742 $ 71,785 Asset-backed U.S. commercial paper conduit facility 233,258 425,794 Asset-backed securitization debt 1,884,629 2,028,155 Unamortized discounts and debt issuance costs (7,261) (8,741) 2,181,368 2,516,993 2023 2022 Unsecured notes (at par value): Medium-term notes: Due in 2023, issued February 2018 3.35% — 350,000 Due in 2023, issued May 2020 (a) 4.94% — 695,727 Due in 2024, issued November 2019 (b) 3.14% 662,238 642,210 Due in 2025, issued June 2020 3.35% 700,000 700,000 Due in 2026, issued April 2023 (c) 6.36 % 772,610 — Due in 2027, issued February 2022 3.05% 500,000 500,000 Due in 2028, issued March 2023 6.50 % 700,000 — Unamortized discounts and debt issuance costs (15,710) (8,464) 3,319,138 2,879,473 Senior notes: Due in 2025, issued July 2015 3.50% 450,000 450,000 Due in 2045, issued July 2015 4.625% 300,000 300,000 Unamortized discounts and debt issuance costs (3,921) (4,632) 746,079 745,368 4,065,217 3,624,841 Long-term debt 6,246,585 6,141,834 Current portion of long-term debt, net (1,255,999) (1,684,782) Long-term debt, net $ 4,990,586 $ 4,457,052 (a) €650.0 million par value remeasured to U.S. dollar at December 31, 2022 (b) €600.0 million par value remeasured to U.S. dollar at December 31, 2023 and 2022, respectively (c) €700.0 million par value remeasured to U.S. dollar at December 31, 2023 Future principal payments of the Company's debt obligations as of December 31, 2023 were as follows (in thousands): 2024 $ 2,135,319 2025 1,853,515 2026 1,389,750 2027 728,936 2028 744,892 Thereafter 300,000 Future principal payments $ 7,152,412 Unamortized discounts and debt issuances costs (26,892) $ 7,125,520 Unsecured Commercial Paper – Commercial paper maturities may range up to 365 days from the issuance date. The weighted-average interest rate of outstanding commercial paper balances was 6.18% and 5.28% at December 31, 2023 and 2022, respectively. Credit Facilities – The Company has a $710.0 million five-year credit facility that matures in April 2027 and a $710.0 million five-year credit facility that matures in April 2025. The five-year credit facilities (together, the Global Credit Facilities) bear interest at variable rates, which may be adjusted upward or downward depending on certain criteria, such as credit ratings. The Global Credit Facilities also require the Company to pay a fee based on the average daily unused portion of the aggregate commitments. The Global Credit Facilities are committed facilities primarily used to support the Company's unsecured commercial paper program. Unsecured Notes – The fixed-rate U.S. dollar-denominated unsecured notes provide for semi-annual interest payments and the fixed-rate foreign currency-dominated unsecured notes provide for annual interest payments. Principal on the unsecured notes is due at maturity. During February and May of 2023, $350.0 million of 3.35% and €650.0 million of 4.94% medium-term notes matured, respectively, and the principal and accrued interest were paid in full. During February and June of 2022, $550.0 million of 4.05% and $400.0 million of 2.55% medium-term notes matured, respectively, and the principal and accrued interest were paid in full. Operating and Financial Covenants – Harley-Davidson Financial Services Inc. and the Company are subject to various operating and financial covenants related to the credit facilities and various operating covenants under the medium-term and senior notes and the U.S. and Canadian asset-backed commercial paper conduit facilities. The more significant covenants are described below. The operating covenants limit the Company’s and Harley-Davidson Financial Services Inc.'s ability to: • Assume or incur certain liens; • Participate in certain mergers or consolidations; and • Purchase or hold margin stock. Under the current financial covenants of the Global Credit Facilities, the ratio of Harley-Davidson Financial Services Inc.’s consolidated debt, excluding secured debt, to Harley-Davidson Financial Services' consolidated allowance for credit losses on finance receivables plus Harley-Davidson Financial Services Inc’s consolidated shareholders' equity, excluding AOCL, cannot exceed 10.0 to 1.0 as of the end of any fiscal quarter. In addition, the ratio of the Company's consolidated debt to the Company's consolidated debt and consolidated shareholders’ equity (where the Company's consolidated debt in each case excludes that of Harley-Davidson Financial Services Inc. and its subsidiaries, and the Company's consolidated shareholders’ equity excludes AOCL), cannot exceed 0.7 to 1.0 as of the end of any fiscal quarter. No financial covenants are required under the medium-term or senior notes or the U.S. or Canadian asset-backed commercial paper conduit facilities. |
Asset-Backed Financing
Asset-Backed Financing | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Asset-Backed Financing | Asset-Backed Financing The Company participates in asset-backed financing both through asset-backed securitization transactions and through asset-backed commercial paper conduit facilities. In the Company's asset-backed financing programs, the Company transfers retail motorcycle finance receivables to special purpose entities (SPEs), which are considered VIEs under U.S. GAAP. Each SPE then converts those assets into cash through the issuance of debt. The Company retains servicing rights for all of the retail motorcycle finance receivables transferred to SPEs as part of an asset-backed financing. The accounting treatment for asset-backed financings depends on the terms of the related transaction and the Company’s continuing involvement with the VIE. In transactions where the Company has power over the significant activities of the VIE and has an obligation to absorb losses or the right to receive benefits from the VIE that are potentially significant to the VIE, the Company is the primary beneficiary of the VIE and consolidates the VIE within its consolidated financial statements. On a consolidated basis, the asset-backed financing is treated as a secured borrowing in this type of transaction and is referred to as an on-balance sheet asset-backed financing. In transactions where the Company is not the primary beneficiary of the VIE, the Company must determine whether it can achieve a sale for accounting purposes under ASC Topic 860, Transfers and Servicing . To achieve a sale for accounting purposes, the assets being transferred must be legally isolated, not be constrained by restrictions from further transfer, and be deemed to be beyond the Company’s control. If the Company does not meet all of these criteria for sale accounting, then the transaction is accounted for as a secured borrowing and is referred to as an on-balance sheet asset-backed financing. If the Company meets all three of the sale criteria above, the transaction is recorded as a sale for accounting purposes and is referred to as an off-balance sheet asset-backed financing. Upon sale, the retail motorcycle finance receivables are removed from the Company’s Consolidated balance sheets and a gain or loss is recognized for the difference between the cash proceeds received, the assets derecognized, and the liabilities recognized as part of the transaction. The gain or loss on sale is recorded 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 at December 31, were as follows (in thousands): 2023 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 $ 2,348,817 $ (126,882) $ 94,137 $ 6,719 $ 2,322,791 $ 1,877,368 Asset-backed U.S. commercial paper conduit facility 259,441 (14,001) 16,443 2,066 263,949 233,258 Unconsolidated VIEs: Asset-backed Canadian commercial paper conduit facility 81,916 (3,667) 4,425 211 82,885 70,742 $ 2,690,174 $ (144,550) $ 115,005 $ 8,996 $ 2,669,625 $ 2,181,368 2022 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 $ 2,558,450 $ (130,774) $ 114,254 $ 7,899 $ 2,549,829 $ 2,019,414 Asset-backed U.S. commercial paper conduit facility 474,167 (24,236) 26,874 1,906 478,711 425,794 Unconsolidated VIEs: Asset-backed Canadian commercial paper conduit facility 82,375 (3,452) 4,873 130 83,926 71,785 $ 3,114,992 $ (158,462) $ 146,001 $ 9,935 $ 3,112,466 $ 2,516,993 On-Balance Sheet Asset-Backed Securitization VIEs – The Company transfers U.S. retail motorcycle finance receivables to SPEs which in turn issue secured notes to investors, with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance receivables. Each on-balance sheet asset-backed securitization SPE is a separate legal entity, and the U.S. retail motorcycle finance receivables included in the asset-backed securitizations are only available for payment of the secured debt and other obligations arising from the asset-backed securitization transactions and are not available to pay other obligations or claims of the Company’s creditors until the associated secured debt and other obligations are satisfied. Restricted cash balances held by the SPEs are used only to support the securitizations. There are no amortization schedules for the secured notes; however, the debt is reduced monthly as available collections on the related U.S. retail motorcycle finance receivables are applied to outstanding principal. The secured notes currently have various contractual maturities ranging from 2024 to 2031. 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. In 2023, the Company transferred $1.20 billion of U.S. retail motorcycle finance receivables to two separate SPEs which, in turn, issued $1.05 billion, or $1.04 billion net of discount and issuance costs, of secured notes through two separate on-balance sheet asset-backed securitization transactions. In 2022, the Company transferred $2.18 billion of U.S. retail motorcycle finance receivables to two separate SPEs which, in turn, issued $1.84 billion, or $1.83 billion net of discount and issuance costs, of secured notes through two separate on-balance sheet asset-backed securitization transactions. At December 31, 2023, the Consolidated balance sheets included outstanding balances related to the following secured notes with the related maturity dates and interest rates (in thousands): Issue Date Principal Amount Weighted-Average Rate Contractual Maturity Date September 2023 $500,000 5.79% October 2024 - April 2031 February 2023 $550,000 5.10% March 2024 - June 2030 June 2022 $1,286,262 2.45% April 2028 April 2022 $550,000 2.40% April 2023 - January 2030 August 2021 $575,000 0.42% August 2022 - May 2029 February 2021 $600,000 0.30% February 2022 - September 2028 In addition, outstanding balances related to the following secured notes included in the Consolidated balance sheets at December 31, 2022 were repaid during 2023 (in thousands): Issue Date Principal Amount Weighted-Average Rate Contractual Maturity Date May 2020 $750,178 3.38% April 2028 January 2020 $525,000 1.83% February 2021 - April 2027 June 2019 $525,000 2.37% July 2020 - November 2026 For the years ended December 31, 2023 and 2022, interest expense on the secured notes was $91.8 million and $51.6 million, respectively, which is included in Financial services interest expense . The weighted average interest rates of the outstanding on-balance sheet asset-backed securitization transactions at December 31, 2023 and 2022 were 4.97% and 3.82%, respectively. On-Balance Sheet Asset-Backed U.S. Commercial Paper Conduit Facilities VIE – In November 2023, the Company renewed its $1.50 billion revolving credit facility agreement (the U.S. Conduit Facility) with third-party banks and their asset-backed U.S. commercial paper conduits. Under the revolving facility agreement, the Company may transfer U.S. retail motorcycle finance receivables to an SPE, which in turn may issue debt to those third-party banks and their asset-backed U.S. commercial paper conduits. From November 2020 through November 2022, the U.S. Conduit Facility allowed for uncommitted additional borrowings of up to $300.0 million at the lender's discretion. At December 31, 2022, $125.8 million remained outstanding under the uncommitted additional borrowings previously allowed. During 2023, the remaining balance of these uncommitted additional borrowings was paid in full. Availability under the U.S. Conduit Facility 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 Facility, 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. The interest rate on all outstanding debt and future borrowings, if not funded by a conduit lender through the issuance of commercial paper, is based on the Secured Overnight Financing Rate (SOFR), with provisions for a transition to other benchmark rates in the future, if necessary. In addition to interest, a program fee is assessed based on the outstanding debt principal balance. The U.S. Conduit Facility also provides for an unused commitment fee based on the unused portion of the total aggregate commitment. Prior to November 2022, when calculating the unused fee, the aggregate commitment did not include any unused portion of the $300.0 million uncommitted additional 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 Facility, 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 4 years. Unless earlier terminated or extended by mutual agreement of the Company and the lenders, as of December 31, 2023, the U.S. Conduit Facility has an expiration date of November 20, 2024. The Company is the primary beneficiary of its U.S. Conduit Facility 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. In 2023, there were no finance receivable transfers under the U.S. Conduit Facility. In 2022, the Company transferred $467.9 million of U.S. retail motorcycle finance receivables to an SPE which, in turn, issued $404.1 million of debt under the U.S. Conduit Facility. For the years ended December 31, 2023 and 2022 interest expense under the U.S. Conduit Facility was $21.8 million and $15.6 million, respectively, which is included in the Financial services interest expense . The weighted average interest rate of the outstanding U.S. Conduit Facility was 7.27% and 6.28% at December 31, 2023 and 2022, respectively. On-Balance Sheet Asset-Backed Canadian Commercial Paper Conduit Facility – In June 2023, 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$125.0 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$125.0 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 of the Company and the lenders, as of December 31, 2022, the Canadian Conduit has an expiration date of June 28, 2024. 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 $12.1 million at December 31, 2023. The maximum exposure is not an indication of the Company's expected loss exposure. In 2023, the Company transferred $51.4 million of Canadian retail motorcycle finance receivables to the Canadian conduit for proceeds of $42.4 million. In 2022, the Company transferred $53.1 million of Canadian retail motorcycle finance receivables to the Canadian Conduit for proceeds of $44.2 million. For the years ended December 31, 2023 and 2022, interest expense on the Canadian Conduit was $2.8 million and $1.9 million, respectively, which is included in Financial services interest expense . The weighted average interest rate of the outstanding Canadian Conduit was 4.13% and 2.85% at December 31, 2023 and 2022, respectively. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The following tables present the fair values of certain of the Company's assets and liabilities within the fair value hierarchy as defined in Note 1. Refer to Note 14 for further discussion regarding the Company's pension plan assets measured at fair value. Recurring Fair Value Measurements – The Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, were as follows (in thousands): 2023 Balance Level 1 Level 2 Assets: Cash equivalents $ 1,067,755 $ 898,000 $ 169,755 Marketable securities 34,079 34,079 — Derivative financial instruments 19,073 — 19,073 $ 1,120,907 $ 932,079 $ 188,828 Liabilities: Derivative financial instruments $ 12,806 $ — $ 12,806 LiveWire warrants 12,319 8,059 4,260 $ 25,125 $ 8,059 $ 17,066 2022 Balance Level 1 Level 2 Assets: Cash equivalents $ 805,629 $ 594,000 $ 211,629 Marketable securities 33,071 33,071 — Derivative financial instruments 8,737 — 8,737 $ 847,437 $ 627,071 $ 220,366 Liabilities: Derivative financial instruments $ 50,261 $ — $ 50,261 LiveWire warrants 8,388 5,500 2,888 $ 58,649 $ 5,500 $ 53,149 The Company uses the market approach to derive the fair value for its derivative financial instruments (Level 2). Foreign currency contracts, commodity contracts, and cross-currency swaps are valued using quoted forward rates and prices; interest rate caps are valued using quoted interest rates and yield curves. LiveWire has outstanding warrants to purchase the common stock of LiveWire Group, Inc. comprised of public (Level 1) and private placement (Level 2) warrants. The private placement warrants have terms and provisions that are economically similar to those of the public warrants. The fair value of the public and private placement warrants is determined using the closing market price of the public warrants. The warrants entitle the registered warrant holder to purchase one share of LiveWire common stock at a price of $11.50 per share and expire five years from the completion of the LiveWire business combination that occurred in 2022. Nonrecurring Fair Value Measurements – Repossessed inventory was $28.0 million and $20.7 million at December 31, 2023 and 2022, respectively, for which the fair value adjustment was a decrease of $18.6 million and $7.5 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 at December 31, were as follows (in thousands): 2023 2022 Fair Value Carrying Value Fair Value Carrying Value Assets: Finance receivables, net $ 7,500,263 $ 7,498,265 $ 7,248,353 $ 7,138,438 Liabilities: Deposits, net $ 460,766 $ 447,782 $ 339,981 $ 317,375 Debt: Unsecured commercial paper $ 878,935 $ 878,935 $ 770,468 $ 770,468 Asset-backed U.S. commercial paper conduit facilities $ 233,258 $ 233,258 $ 425,794 $ 425,794 Asset-backed Canadian commercial paper conduit facility $ 70,742 $ 70,742 $ 71,785 $ 71,785 Asset-backed securitization debt $ 1,872,215 $ 1,877,368 $ 1,996,550 $ 2,019,414 Medium-term notes $ 3,308,952 $ 3,319,138 $ 2,760,093 $ 2,879,473 Senior notes $ 674,787 $ 746,079 $ 661,630 $ 745,368 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, net – The carrying value of deposits is amortized cost, net of fees. The fair value of deposits is estimated based upon rates currently available for deposits with similar terms and maturities. Fair value is calculated using Level 3 inputs. Debt – The carrying value of debt is generally cost, net of unamortized discounts and debt issuance costs. The fair value of unsecured commercial paper is calculated using Level 2 inputs and approximates carrying value due to its short maturity. The fair value of debt provided under the U.S. Conduit Facility and Canadian Conduit Facility is calculated using Level 2 inputs and approximates carrying value since the interest rates charged under the facilities 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 fixed-rate 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). The fair value of the floating-rate debt related to on-balance sheet asset-backed securitization transactions is calculated using Level 2 inputs and approximates carrying value since the interest rates charged are tied directly to market rates and fluctuate as market rates change. |
Product Warranty and Recall Cam
Product Warranty and Recall Campaigns | 12 Months Ended |
Dec. 31, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranty and Recall Campaigns | Product Warranty and Recall Campaigns The Company currently provides a standard two-year limited warranty on all new motorcycles sold worldwide, except in Japan, where the Company currently provides a standard three-year limited warranty. The Company also provides a five-year unlimited warranty on the battery for electric motorcycles. In addition, the Company provides a one-year warranty for parts and accessories. The warranty coverage for the retail customer generally begins when the product is sold to a retail customer. The Company accrues for future warranty claims at the time of shipment using an estimated cost based primarily on historical Company claim information. Additionally, the Company has from time to time initiated certain voluntary recall campaigns. The Company 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. The warranty and recall liabilities are included in Accrued liabilities and Other long-term liabilities on the Consolidated balance sheets . Changes in the Company’s warranty and recall liability were as follows as of December 31 (in thousands): 2023 2022 2021 Balance, beginning of period $ 75,960 $ 61,621 $ 69,208 Warranties issued during the period 45,374 39,466 41,489 Settlements made during the period (67,084) (38,173) (40,015) Recalls and changes to pre-existing warranty liabilities 9,894 13,046 (9,061) Balance, end of period $ 64,144 $ 75,960 $ 61,621 |
Employee Benefit Plans and Othe
Employee Benefit Plans and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans and Other Postretirement Benefits | Employee Benefit Plans and Other Postretirement Benefits The Company has a qualified defined benefit pension plan and postretirement healthcare benefit plans. The plans cover certain eligible employees and retirees of the HDMC segment. The Company also has unfunded supplemental employee retirement plan agreements (SERPA) with certain employees. Pension benefits are based primarily on years of service and, for certain participants, levels of compensation. Plan participants are generally eligible to receive postretirement healthcare benefits upon attaining age 55 after rendering at least 10 years of service to the Company. Some of the plans require participant contributions to partially offset benefit costs. Obligations and Funded Status: The changes in the benefit obligation, fair value of plan assets and the funded status of the Company’s pension and SERPA plans and the postretirement healthcare plans as of the Company’s measurement dates of December 31, were as follows (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits 2023 2022 2023 2022 Change in benefit obligation: Benefit obligation, beginning of period $ 1,553,912 $ 2,174,595 $ 210,811 $ 286,301 Service cost 5,174 19,052 3,184 4,642 Pension and SERPA Benefits Postretirement Healthcare Benefits 2023 2022 2023 2022 Interest cost 81,911 61,890 11,089 7,617 Actuarial loss / (gains) 35,608 (561,142) (18,350) (67,903) Plan participant contributions — — 1,790 2,029 Plan amendment — — 12,959 — Benefits paid (106,493) (137,645) (14,977) (16,657) Settlements (1,835) (2,838) — (5,218) Benefit obligation, end of period 1,568,277 1,553,912 206,506 210,811 Change in plan assets: Fair value of plan assets, beginning of period 1,809,543 2,486,467 205,803 262,945 Return on plan assets 198,212 (539,800) 29,211 (48,257) Plan participant contributions — — 1,790 2,029 Benefits paid (105,931) (137,124) (11,637) (10,914) Fair value of plan assets, end of period 1,901,824 1,809,543 225,167 205,803 Funded status of the plan $ 333,547 $ 255,631 $ 18,661 $ (5,008) Funded status as recognized on the Consolidated balance sheets: Pension and postretirement assets $ 343,619 $ 268,317 $ 69,489 $ 51,816 Accrued liabilities (1,129) (1,331) — (224) Pension and postretirement liabilities (8,943) (11,355) (50,828) (56,600) $ 333,547 $ 255,631 $ 18,661 $ (5,008) Amounts included in Accumulated other comprehensive loss, net of tax: Prior service credits $ 2,886 $ 3,461 $ 8,542 $ (1,884) Actuarial losses (gains) 277,825 289,340 (59,631) (39,699) $ 280,711 $ 292,801 $ (51,089) $ (41,583) During 2023, actuarial losses related to the obligation for pension and SERPA benefits were due primarily to a decrease in the discount rate and changes in other demographic assumptions. During 2022, actuarial gains related to the obligation for pension and SERPA benefits were due primarily to an increase in the discount rate and experience study adjustments, partially offset by changes in other demographic assumptions. During 2023, the actuarial gains related to the obligation for postretirement healthcare benefits were due primarily to changes in benefit utilization assumptions and claims cost adjustments. During 2022, the actuarial gains related to the obligation for postretirement healthcare benefits were due primarily to an increase in the discount rate, claim cost adjustments, experience study adjustments and changes in other demographic assumptions, partially offset by healthcare inflation rate trends. The funded status of the qualified pension plan and the SERPA plans are combined above. The SERPA plans had projected benefit obligations (PBO) and accumulated benefit obligations (ABO) in excess of the fair value of plan assets at December 31, as presented below (in thousands): 2023 2022 Plans with PBO in excess of fair value of plan assets: PBO $ 10,072 $ 12,686 Fair value of plan assets $ — $ — Plans with ABO in excess of fair value of plan assets: ABO $ 10,035 $ 12,643 Fair value of plan assets $ — $ — The total ABO for all the Company's pension and SERPA plans combined was $1.57 billion and $1.55 billion as of December 31, 2023 and 2022, respectively. Benefit Costs: Service cost is allocated among Selling, administrative and engineering expense , Motorcycles and related products 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 (expense), net . Components of net periodic benefit costs for the Company's defined benefit plans for the years ended December 31, were as follows (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits 2023 2022 2021 2023 2022 2021 Service cost $ 5,174 $ 19,052 $ 24,570 $ 3,184 $ 4,642 $ 5,147 Interest cost 81,911 61,890 61,988 11,089 7,617 6,505 Expected return on plan assets (146,076) (125,904) (131,494) (17,124) (15,237) (13,978) Amortization of unrecognized: Prior service credit 751 (1,312) (1,247) (665) (2,323) (2,323) Net loss (722) 31,912 67,933 (4,388) 488 1,056 Curtailment (gain) loss — — (10,562) — — — Settlement (gain) loss (759) (1,471) 722 — (1,244) — Net periodic benefit cost $ (59,721) $ (15,833) $ 11,910 $ (7,904) $ (6,057) $ (3,593) The expected return on plan assets is calculated based on the market related value of plan assets. The market related value of plan assets is different from the fair value in that asset gains and losses are smoothed over a five-year period. U nrecognized gains and losses related to plan obligations and assets are initially recorded in other comprehensive income and result from actual experience that differs from assumed or expected results, and the impacts of changes in assumptions. Unrecognized plan asset gains and losses not yet reflected in the market related value of plan assets are not subject to amortization. Remaining unrecognized gains and losses that exceed 10% of the greater of the projected benefit obligation or the market related value of plan assets are amortized to earnings over the estimated future service period of active plan participants. The impacts of plan amendments, if any, are amortized over the estimated future service period of plan participants at the time of the amendment. Assumptions: Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost at December 31, were as follows: Pension and SERPA Benefits Postretirement Healthcare Benefits 2023 2022 2021 2023 2022 2021 Assumptions for benefit obligations: Discount rate 5.31 % 5.45 % 2.89 % 5.36 % 5.42 % 2.72 % Rate of compensation increase 4.00 % 4.00 % 3.49 % n/a n/a n/a Assumptions for net periodic benefit cost: Discount rate 5.45 % 2.89 % 2.67 % 5.42 % 2.72 % 2.11 % Expected return on plan assets 6.80 % 5.60 % 6.20 % 7.48 % 6.77 % 6.69 % Rate of compensation increase 4.00 % 3.49 % 3.34 % n/a n/a n/a Plan Assets: Pension Plan Assets – The Company’s investment objective is to ensure assets are sufficient to pay benefits while mitigating the volatility of retirement plan assets or liabilities recorded in the balance sheet. The Company mitigates volatility through asset diversification and partial asset/liability matching. The investment portfolio for the Company's pension plan assets contains a diversified blend of equity and fixed-income investments. The Company’s current overall targeted asset allocation as a percentage of total market value was 30% equities and 70% fixed-income and cash. Assets are rebalanced regularly to keep the actual allocation in line with targets. Equity holdings primarily include investments in small-, medium- and large-cap companies in the U.S., investments in developed and emerging foreign markets and other investments such as private equity and real estate. Fixed-income holdings consist of U.S. government and agency securities, state and municipal bonds, corporate bonds from diversified industries and foreign obligations. In addition, cash equivalent balances are maintained at levels adequate to meet near-term plan expenses and benefit payments. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews. Postretirement Healthcare Plan Assets – The Company's investment objective is to maximize the return on assets to help pay benefits by prudently investing in equities, fixed income and alternative assets. The Company's current overall targeted asset allocation as a percentage of total market value was 68% equities and 32% fixed-income and cash. Equity holdings primarily include investments in small-, medium- and large-cap companies in the U.S., investments in developed and emerging foreign markets and other investments such as private equity and real estate. Fixed-income holdings consist of U.S. government and agency securities, state and municipal bonds, corporate bonds from diversified industries and foreign obligations. In addition, cash equivalent balances are maintained at levels adequate to meet near-term plan expenses and benefit payments. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews. The following tables present the fair values of the plan assets related to the Company’s pension and postretirement healthcare plans within the fair value hierarchy as defined in Note 1. Equity holdings are primarily exchange-traded and are valued based on quoted prices for identical securities. Fixed income holdings are generally measured at fair value using quoted prices for identical or similar securities. Certain assets measured are valued at fair value using the net asset value practical expedient and are not classified in the fair value hierarchy. The fair values of the Company’s pension plan assets at December 31, 2023 were as follows (in thousands): Balance Level 1 Level 2 Cash and cash equivalents $ 27,730 $ — $ 27,730 Equity holdings: U.S. companies 346,895 346,844 51 Foreign companies 22,425 22,425 — Pooled equity funds 124,853 124,853 — Other 21 21 — 494,194 494,143 51 Fixed-income holdings: U.S. Treasuries 110,767 110,766 — Federal agencies 11,028 — 11,028 Corporate bonds 708,790 — 708,790 Pooled fixed income funds 442,409 55,487 386,922 Foreign bonds 93,034 462 92,572 Municipal bonds 11,486 — 11,486 1,377,514 166,715 1,210,798 Plan assets subject to fair value leveling 1,899,438 $ 660,858 $ 1,238,579 Plan assets measured at net asset value: Private equity investments 794 Real estate investments 1,592 2,386 $ 1,901,824 Included in the pension plan assets are 1,273,592 shares of the Company’s common stock with a market value of $46.9 million at December 31, 2023. The fair values of the Company’s postretirement healthcare plan assets at December 31, 2023 were as follows (in thousands): Balance Level 1 Level 2 Cash and cash equivalents $ 2,391 $ — $ 2,391 Equity holdings: U.S. companies 113,135 113,135 — Foreign companies 21,034 21,034 — Pooled equity funds 26,355 26,355 — Other 5 5 — 160,529 160,529 — Fixed-income holdings: U.S. Treasuries 359 359 — Federal agencies 36 — 36 Corporate bonds 2,286 — 2,286 Pooled fixed income funds 44,512 43,248 1,264 Foreign bonds 300 2 298 Municipal bonds 37 — 37 47,530 43,609 3,921 Plan assets subject to fair value leveling 210,450 $ 204,138 $ 6,312 Plan assets measured at net asset value: Private equity investments $ 13,773 Real estate investments 944 $ 225,167 The fair values of the Company’s pension plan assets at December 31, 2022 were as follows (in thousands): Balance Level 1 Level 2 Cash and cash equivalents $ 43,062 $ — $ 43,062 Equity holdings: U.S. companies 537,587 537,548 39 Foreign companies 22,445 22,444 1 Pooled equity funds 241,412 241,412 — Other 35 35 — 801,479 801,439 40 Fixed-income holdings: U.S. Treasuries 94,128 94,128 — Federal agencies 11,054 — 11,054 Corporate bonds 640,875 — 640,875 Pooled fixed income funds 111,649 49,472 62,177 Foreign bonds 93,112 4 93,108 Municipal bonds 10,375 — 10,375 961,193 143,604 817,589 Plan assets subject to fair value leveling 1,805,734 $ 945,043 $ 860,691 Plan assets measured at net asset value: Private equity investments 799 Real estate investments 3,010 3,809 $ 1,809,543 Included in the pension plan assets were 1,273,592 shares of the Company’s common stock with a market value of $53.0 million at December 31, 2022. The fair values of the Company’s postretirement healthcare plan assets at December 31, 2022 were as follows (in thousands): Balance Level 1 Level 2 Cash and cash equivalents $ 7,998 $ — $ 7,998 Equity holdings: U.S. companies 95,014 95,014 — Foreign companies 20,784 20,784 — Pooled equity funds 24,181 24,181 — Other 5 5 — 139,984 139,984 — Fixed-income holdings: U.S. Treasuries 287 287 — Federal agencies 34 — 34 Corporate bonds 1,938 — 1,938 Pooled fixed income funds 40,043 39,855 188 Foreign bonds 282 — 282 Municipal bonds 31 — 31 42,615 40,142 2,473 Plan assets subject to fair value leveling 190,597 $ 180,126 $ 10,471 Plan assets measured at net asset value: Limited partnership interests $ 13,502 Real estate investments 1,704 $ 205,803 For 2024, the Company’s overall expected long-term rate of return is 6.20% for pension assets and 7.50% for postretirement healthcare plan assets. The expected long-term rate of return is based on the portfolio as a whole and not on the sum of the returns on individual asset categories. The return is based on historical returns adjusted to reflect the current view of the long-term investment market. Postretirement Healthcare Cost: The weighted-average healthcare cost trend rates used in determining the accumulated postretirement benefit obligation of the healthcare plans were as follows: 2023 2022 Healthcare cost trend rate for next year 7.50 % 7.00 % Rate to which the cost trend rate is assumed to decline (the ultimate rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2032 2032 Future Contributions and Benefit Payments: Based on the funded status of the qualified pension plan, there is no requirement for the Company to make contributions to the qualified pension plan in 2024. The Company expects that 2024 postretirement healthcare plan benefits and benefits due under the SERPA plans will be paid by the Company or, in the case of postretirement healthcare plan benefits, partially funded with plan assets. The Company's future expected benefit payments as of December 31, 2023 were as follows (in thousands): Pension Benefits SERPA Benefits Postretirement Healthcare Benefits 2024 $ 115,265 $ 1,159 $ 17,179 2025 $ 114,856 $ 1,119 $ 18,050 2026 $ 116,507 $ 1,070 $ 18,830 2027 $ 116,698 $ 945 $ 19,442 2028 $ 116,234 $ 854 $ 19,930 2029-2033 $ 581,079 $ 3,594 $ 100,332 Defined Contribution Plans: The Company has various defined contribution benefit plans that in total cover substantially all full-time employees. Employees can make voluntary contributions in accordance with the provisions of their respective plan, which includes a 401(k) tax deferral option. The Company makes additional contributions to the plans on behalf of the employees and expensed $30.5 million, $30.9 million and $19.4 million during 2023, 2022 and 2021, respectively related to the contributions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Other Claims – The Company is subject to lawsuits and other claims related to product, commercial, employee, environmental 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. The Company accrues for matters when losses are both probable and estimable. 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. The Company also maintains insurance coverage for product liability exposures. The Company believes that its accruals and insurance coverage are adequate and there are no material exposures to loss in excess of amounts accrued and insured for losses related to these matters. Supply Matters – During the second quarter of 2022, the Company received information from a Tier 2 supplier, Proterial Cable America, Inc. ("PCA" f/k/a Hitachi Cable America, Inc.), concerning a potential regulatory compliance matter relating to PCA's brake hose assemblies. As a result, out of an abundance of caution, the Company suspended all vehicle assembly and shipments for approximately two weeks during the second quarter of 2022. Since then, the Company has been working through the regulatory compliance matter with PCA, the Company’s relevant Tier-1 suppliers, and the National Highway Traffic Safety Administration (NHTSA), the agency responsible for brake hose assembly compliance in the United States. In connection with this matter, in July 2022, PCA notified NHTSA of a population of brake hose assemblies manufactured between May and July of 2022 that were non-compliant with select NHTSA laboratory test standards. Based on that filing, in August 2022, the Company notified NHTSA of the corresponding population of Harley-Davidson motorcycles containing those brake hose assemblies. In October 2022, PCA amended its original notification, expanding its population of non-compliant brake hose assemblies to include units produced by PCA for use in Harley-Davidson motorcycles beginning as early as model year 2008. In December 2022, the Company amended its August notification, expanding the population to also include Harley-Davidson motorcycles that contained PCA's newly identified brake hose assemblies. In March 2023, PCA again amended its NHTSA notification, identifying additional compliance issues with the previously identified brake hose assemblies. The Company followed PCA's March amendment with a derivative amended notification to NHTSA in May 2023. In June 2023, the Company received a letter from PCA advising that PCA was investigating a new, separate potential quality issue with brake hose assemblies produced by PCA after the Company’s 2022 production suspension. Due to this issue, the Company was forced to suspend production of most of the motorcycles manufactured at its York facility and run limited motorcycle manufacturing operations there for approximately two weeks. The Company continued to manufacture, among other motorcycles, the recently launched 2023 CVO Road Glide and Street Glide, which do not use PCA's brake hose assemblies. It also continued its normal motorcycle manufacturing operations at its international facilities. In connection with this matter, in late June 2023, PCA filed a new and separate NHTSA notification, identifying certain brake hose assemblies produced between June of 2022 and June of 2023 as noncompliant with select NHTSA laboratory test standards. The Company followed PCA’s June 2023 notification by filing a derivative notification with NHTSA in early July 2023. As permitted by federal law, both PCA and the Company have utilized NHTSA’s standard process to petition the agency to determine that these compliance issues are inconsequential to motor vehicle safety ("Inconsequentiality Determinations"). If NHTSA makes the Inconsequentiality Determinations requested, the Company will be exempt from conducting a field action or recall of its motorcycles related to these matters. In its inconsequentiality petitions, the Company has presented NHTSA with: (1) extensive independent, third-party and internal testing demonstrating that the brake hose assemblies at issue are robust to extreme conditions - which far exceed maximum expected motorcycle lifetime demands - with no impact to brake performance; and (2) real-world field safety data showing no documented crashes or injuries attributable to the identified compliance issues for the relevant affected populations. The Company believes its petitions are closely comparable to inconsequentiality petitions that have resulted in successful inconsequentiality determinations in the past. The Company is also confident that its position that the compliance issues are inconsequential to motor vehicle safety is strong and, therefore, no field action or recall will be necessary. Based on its expectation that NHTSA will make Inconsequentiality Determinations, the Company does not expect that these regulatory noncompliance matters will result in material costs in the future, and no costs have been accrued to date. However, it is possible that a field action or recall could be required that could cause the Company to incur material costs. There are several variables and uncertainties associated with any potential field action or recall that are not yet fully known including, but not limited to, the population of brake hose assemblies and motorcycles, the specific field action or recall required, the complexity and cost of the required repair, the need for and availability of replacement parts, and the number of motorcycle owners that would participate. The Company estimates, based on its available information and assumptions, that the cost of a potential field action or recall in the aggregate, if any were to occur, could range from approximately $100 million to $400 million. The Company continues to evaluate and update its estimates as it learns more about these regulatory matters, including the variables and uncertainties discussed above. The Company also continues to maintain its expectation that NHTSA will make the requested Inconsequentiality Determinations and that these regulatory matters will not result in any material field action or recall costs. If a material field action or recall were to result, the Company would seek full recovery of those amounts. Unionized Workforce – Of the Company's approximately 6,400 employees, approximately 2,400 hourly unionized employees are located at the Company's U.S. manufacturing facilities and represented by collective bargaining agreements at the Company's York, Milwaukee and Tomahawk facilities. The collective bargaining agreements at the Company's Milwaukee and Tomahawk facilities expire within one year and represent approximately 1,100 hourly unionized employees. |
Share-Based Awards
Share-Based Awards | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Awards | Share-Based Awards The Company has share-based compensation plans which were approved by its shareholders in April 2020 and May 2021 (the Plans) under which its Board of Directors may grant to employees share-based awards including restricted stock units (RSUs), performance shares, aspirational performance shares and nonqualified stock options. RSUs generally vest ratably over a three-year period. Performance shares include a three-year performance period with vesting based on achievement of internal performance targets and, beginning with the 2021 grant, include a vesting component based on a Total Shareholder Return (TSR) relative to a peer group. Aspirational performance shares are earned only to the extent the aspirational share price goals for the Company's stock are achieved by December 31, 2025. If a share price goal is met, then 50% of the associated aspirational performance shares vest and the remaining 50% vest on the one-year anniversary of the date on which the share price goal was achieved. Dividend or dividend equivalents are paid on RSUs, performance shares and aspirational shares that ultimately vest. Stock options granted in 2021 include a service component to vest and a market condition to become exercisable. The 2021 stock options expire 10 years from the grant date or, if the grantee's employment ceases prior to December 31, 2023, 6 years from the grant date. Stock options granted prior to 2021 expire 10 years from the date of grant. At December 31, 2023, there were 4.7 million shares of common stock available for future awards under the Plans. The Company recognizes the cost of its share-based awards in the Consolidated statements of operations . The cost of each share-based equity award is based on the grant date fair value and the cost of each share-based cash-settled award is based on the settlement date fair value. Forfeitures for share-based awards are estimated at the grant date and adjusted when it is likely to change. Share-based award expense is recognized on a straight-line basis over the service period for RSUs. Expense for awards with performance conditions is recognized on a straight-line basis over the service period for each separately-vesting tranche, which results in accelerated recognition of expense. The expense recognized reflects the number of awards that are ultimately expected to vest based on the service and, if applicable, performance requirements of each award. Total share-based award compensation expense recognized by the Company during 2023, 2022 and 2021 was $82.9 million, $54.4 million and $42.2 million, respectively, or $63.4 million, $41.6 million and $32.3 million net of taxes, respectively. Restricted Stock Units, Performance Shares and Aspirational Shares - Settled in Stock – The fair value of RSUs and performance shares settled in stock that do not contain a market condition was determined based on the market price of the Company’s stock on the grant date. The fair value of performance shares with a relative TSR market condition and aspirational performance shares was determined using a Monte Carlo simulation. The Monte Carlo simulation uses historical volatility to determine the expected volatility and a risk-free interest rate based on U.S. Treasury rates at the time of grant. Assumptions used to calculate the grant date fair value of the performance shares with a relative TSR market condition and the aspirational performance shares, by grant date, were as follows: Performance Share Grants: February 2023 February 2022 May 2021 February 2021 Expected volatility 53.9 % 55.0 % 55.0 % 52.0 % Risk-free interest rate 4.08 % 1.58 % 0.27 % 0.18 % Aspirational Share Grants: August 2022 Expected volatility 54.5 % Risk-free interest rate 3.23 % The activity for these awards for the year ended December 31, 2023 was as follows (in thousands, except for per share amounts): Shares & Units Weighted-Average Fair Value Per Share Nonvested, beginning of period 4,560 $ 27 Granted 723 $ 46 Vested (818) $ 38 Forfeited (361) $ 32 Nonvested, end of period 4,104 $ 28 As of December 31, 2023, there was $39.7 million of unrecognized compensation cost related to RSUs, aspirational shares, performance shares and performance shares settled in stock, net of estimated forfeitures, that is expected to be recognized over a weighted-average period of 1.4 years. Restricted Stock Units and Performance Shares - Settled in Cash – RSUs and performance shares settled in cash are recorded in the Consolidated balance sheets as a liability until vested. The fair value is determined based on the market price of the Company’s stock and is remeasured at each balance sheet date. The activity for these awards for the year ended December 31, 2023 was as follows (in thousands, except for per share amounts): Units Weighted-Average Fair Value Per Share Nonvested, beginning of period 245 $ 38 Granted 105 $ 48 Vested (112) $ 40 Forfeited (21) $ 36 Nonvested, end of period 217 $ 36 Stock Options – The Company estimated the grant date fair value of its 2021 stock option award using a Monte Carlo simulation, assuming a 1.49% expected dividend yield, an expected volatility rate of 44.1%, a risk-free interest rate of 1.21%, and an expected term of 5.5 years. The Company uses historical volatility to determine the expected volatility of its stock. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury rates at the time of grant. The expected term of options granted assumes the options will be exercised halfway between the time that they are earned based on achieving the market condition and the end of the award term. There were no stock options granted in 2023 or 2022. The Company’s policy is to issue new shares of common stock upon the exercise of employee stock options. The stock option transactions for the year ended December 31, 2023 were as follows (in thousands, except for per share amounts): Options Weighted-Average Exercise Price Outstanding, beginning of period 913 $ 47 Options granted — $ — Exercised — $ — Forfeited (287) $ 59 Outstanding, end of period 626 $ 42 Exercisable, end of period 251 $ 50 The aggregate intrinsic value related to stock options exercised, outstanding and exercisable as of and for the years ended December 31, was as follows (in thousands): 2023 2022 2021 Exercised $ — $ — $ 289 Outstanding $ 105 $ 2,485 $ 530 Exercisable $ — $ — $ — Stock options outstanding at December 31, 2023 were as follows (options in thousands): Price Range Weighted-Average Options Weighted-Average $30.01 to $40 7.9 500 $ 37 $40.01 to $50 0.0 — $ — $50.01 to $60 0.0 — $ — $60.01 to $70 0.4 126 $ 63 Options outstanding 6.4 626 $ 42 Options exercisable 4.1 251 $ 50 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in Accumulated other comprehensive loss for the years ended December 31, were as follows (in thousands): 2023 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (80,271) $ (10,440) $ (251,218) $ (341,929) Other comprehensive income, before reclassifications 11,845 48,583 34,005 94,433 Income tax expense (313) (11,322) (7,984) (19,619) 11,532 37,261 26,021 74,814 Reclassifications: Net gains on derivative financial instruments — (43,678) — (43,678) Prior service credits (a) — — 86 86 Actuarial gains (a) — — (5,110) (5,110) Settlement gains (a) — — (759) (759) Reclassifications before tax — (43,678) (5,783) (49,461) Income tax benefit — 10,256 1,358 11,614 — (33,422) (4,425) (37,847) Other comprehensive income 11,532 3,839 21,596 36,967 Balance, end of period $ (68,739) $ (6,601) $ (229,622) $ (304,962) 2022 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (44,401) $ (2,005) $ (194,513) $ (240,919) Other comprehensive loss, before reclassifications (32,769) (44,767) (100,154) (177,690) Income tax (expense) benefit (3,101) 9,611 23,516 30,026 (35,870) (35,156) (76,638) (147,664) Reclassifications: Net losses on derivative financial instruments — 33,598 — 33,598 Prior service credits (a) — — (3,635) (3,635) Actuarial losses (a) — — 32,400 32,400 Settlement gains (a) — — (2,715) (2,715) Reclassifications before tax — 33,598 26,050 59,648 Income tax expense — (6,877) (6,117) (12,994) — 26,721 19,933 46,654 Other comprehensive loss (35,870) (8,435) (56,705) (101,010) Balance, end of period $ (80,271) $ (10,440) $ (251,218) $ (341,929) 2021 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (7,589) $ (46,116) $ (429,712) $ (483,417) Other comprehensive (loss) income, before reclassifications (38,988) (73,207) 251,790 139,595 Income tax benefit (expense) 2,176 15,883 (59,120) (41,061) (36,812) (57,324) 192,670 98,534 Reclassifications: Net losses on derivative financial instruments — 130,609 — 130,609 Prior service credits (a) — — (3,570) (3,570) Actuarial losses (a) — — 68,989 68,989 Curtailment and settlement gains (a) — — (9,840) (9,840) Reclassifications before tax — 130,609 55,579 186,188 Income tax expense — (29,174) (13,050) (42,224) — 101,435 42,529 143,964 Other comprehensive (loss) income (36,812) 44,111 235,199 242,498 Balance, end of period $ (44,401) $ (2,005) $ (194,513) $ (240,919) (a) Amounts reclassified are included in the computation of net periodic benefit cost, discussed further in Note 14. |
Reportable Segments and Geograp
Reportable Segments and Geographic Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reportable Segments and Geographic Information | Reportable Segments and Geographic Information Reportable Segments – The Company operates with three segments: Harley-Davidson Motor Company (HDMC), LiveWire, and Harley-Davidson Financial Services (HDFS). 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. HDMC designs, manufactures and sells motorcycles and also sells motorcycle parts, accessories, and apparel as well as licenses its trademarks. HDMC’s products are sold to retail customers primarily through a network of independent dealers. HDMC conducts business on a global basis, with sales in the U.S., Canada, Europe/Middle East/Africa (EMEA), Asia Pacific, and Latin America. LiveWire sells electric motorcycles, electric balance bikes for kids, parts and accessories and apparel in the United States and certain international markets. Electric motorcycles, related parts and accessories and apparel are sold at wholesale to a network of independent dealers and at retail through a company-owned dealer, through online sales and direct to customers through select international partners primarily in Europe. Electric balance bikes and related parts and accessories are sold through independent retail partners and distributors and direct to consumers online. HDFS is engaged in the business of financing and servicing wholesale inventory receivables and retail consumer loans, primarily for the purchase of Harley-Davidson and LiveWire motorcycles. HDFS also works with certain unaffiliated third parties to provide motorcycle insurance and voluntary protection products to motorcycle owners. HDFS conducts business principally in the U.S. and Canada. Selected segment information is set forth below for the years ended December 31 (in thousands): 2023 2022 2021 HDMC: Revenue $ 4,844,594 $ 4,887,672 $ 4,504,434 Gross profit 1,566,542 1,527,873 1,299,527 Selling, administrative and engineering expense 905,391 850,786 822,720 Operating income 661,151 677,087 476,807 LiveWire: Revenue 38,298 46,833 35,806 Gross profit (5,956) 2,904 (2,574) Selling, administrative and engineering expense 110,853 88,219 65,608 Operating loss (116,809) (85,315) (68,182) HDFS: Financial services revenue 953,586 820,625 796,068 Financial services expense 718,844 503,119 381,254 Operating income 234,742 317,506 414,814 Operating income $ 779,084 $ 909,278 $ 823,439 Additional segment information is set forth below as of December 31 (in thousands): HDMC LiveWire HDFS Consolidated 2023: Assets $ 3,644,016 $ 266,404 $ 8,230,134 $ 12,140,554 Depreciation and amortization $ 143,355 $ 5,832 $ 8,925 $ 158,112 Capital expenditures $ 188,863 $ 13,462 $ 5,079 $ 207,404 2022: Assets $ 3,254,309 $ 351,422 $ 7,886,745 $ 11,492,476 Depreciation and amortization $ 138,875 $ 4,401 $ 8,666 $ 151,942 Capital expenditures $ 133,191 $ 14,081 $ 4,397 $ 151,669 2021: Assets $ 3,246,340 $ 61,952 $ 7,742,763 $ 11,051,055 Depreciation and amortization $ 151,251 $ 4,718 $ 9,216 $ 165,185 Capital expenditures $ 106,044 $ 9,951 $ 4,186 $ 120,181 Geographic Information – Included in the Consolidated financial statements are the following amounts relating to geographic locations for the years ended December 31 (in thousands): 2023 2022 2021 HDMC revenue (a) : United States $ 3,289,227 $ 3,253,875 $ 2,996,471 EMEA 637,492 693,073 703,048 Canada 220,158 216,389 182,230 Japan 200,539 175,292 150,138 Australia and New Zealand 127,352 147,551 134,301 Other countries 369,826 401,492 338,246 $ 4,844,594 $ 4,887,672 $ 4,504,434 LiveWire revenue (a) : United States 31,483 36,256 24,633 International 6,815 10,577 11,173 $ 38,298 $ 46,833 $ 35,806 HDFS revenue (a) : United States $ 922,758 $ 794,912 $ 765,917 Canada 18,220 16,276 18,613 Europe 7,343 6,071 7,464 Other countries 5,265 3,366 4,074 $ 953,586 $ 820,625 $ 796,068 Long-lived assets (b) : United States $ 644,620 $ 611,421 $ 595,375 Thailand 82,197 72,474 81,927 Other countries 4,907 5,991 6,682 87,104 78,465 88,609 $ 731,724 $ 689,886 $ 683,984 (a) Revenue is attributed to geographic regions based on location of customer. (b) Long-lived assets include all long-term assets except those specifically excluded under ASC Topic 280, Segment Reporting , such as deferred income taxes and finance receivables. |
Supplemental Consolidating Data
Supplemental Consolidating Data | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Consolidating Data | Supplemental Consolidating Data The supplemental consolidating data includes separate legal entity data for the Company's financial services entities, including Harley-Davidson Financial Services, Inc. and its subsidiaries, (Financial Services Entities) and all other Harley-Davidson, Inc. entities (Non-Financial Services Entities). The supplemental consolidating data is presented to highlight the separate financial statement impacts of the Company's financial services entities and its non-financial services entities. The income statement information presented below differs from reportable segment income statement information due to the allocation of legal entity consolidating adjustments to income for reportable segments. Supplemental consolidating data for 2023 is as follows (in thousands): Year Ended December 31, 2023 Non-Financial Services Entities Financial Services Entities Consolidating Adjustments Consolidated Revenue: Motorcycles and related products $ 4,891,449 $ — $ (8,557) $ 4,882,892 Financial services — 955,810 (2,224) 953,586 4,891,449 955,810 (10,781) 5,836,478 Costs and expenses: Motorcycles and related products cost of goods sold 3,322,306 — — 3,322,306 Financial services interest expense — 332,380 — 332,380 Financial services provision for credit losses — 227,158 — 227,158 Selling, administrative and engineering expense 1,018,670 167,861 (10,981) 1,175,550 4,340,976 727,399 (10,981) 5,057,394 Operating income 550,473 228,411 200 779,084 Other income, net 71,808 — — 71,808 Investment income 246,771 — (200,000) 46,771 Interest expense 30,787 — — 30,787 Income before income taxes 838,265 228,411 (199,800) 866,876 Income tax provision 125,356 46,474 — 171,830 Net income 712,909 181,937 (199,800) 695,046 Less: (income) loss attributable to noncontrolling interests 11,540 — — 11,540 Net income attributable to Harley-Davidson, Inc. $ 724,449 $ 181,937 $ (199,800) $ 706,586 Year Ended December 31, 2022 Non-Financial Services Entities Financial Services Entities Consolidating Adjustments Consolidated Revenue: Motorcycles and related products $ 4,946,005 $ — $ (11,500) $ 4,934,505 Financial services — 822,530 (1,905) 820,625 4,946,005 822,530 (13,405) 5,755,130 Costs and expenses: Motorcycles and related products cost of goods sold 3,403,728 — — 3,403,728 Financial services interest expense — 217,653 — 217,653 Financial services provision for credit losses — 145,133 — 145,133 Selling, administrative and engineering expense 941,312 151,833 (13,807) 1,079,338 4,345,040 514,619 (13,807) 4,845,852 Operating income 600,965 307,911 402 909,278 Other income, net 48,652 — — 48,652 Investment income 204,538 — (200,000) 4,538 Interest expense 31,235 — — 31,235 Income before income taxes 822,920 307,911 (199,598) 931,233 Income tax provision 125,820 66,199 — 192,019 Net income 697,100 241,712 (199,598) 739,214 Less: (income) loss attributable to noncontrolling interests 2,194 — — 2,194 Net income attributable to Harley-Davidson, Inc. $ 699,294 $ 241,712 $ (199,598) $ 741,408 December 31, 2023 Non-Financial Services Entities Financial Services Entities Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,127,400 $ 406,406 $ — $ 1,533,806 Accounts receivable, net 415,004 32 (147,836) 267,200 Finance receivables, net — 2,113,729 — 2,113,729 Inventories, net 929,951 — — 929,951 Restricted cash — 104,642 — 104,642 Other current assets 148,006 73,976 (7,581) 214,401 2,620,361 2,698,785 (155,417) 5,163,729 Finance receivables, net — 5,384,536 — 5,384,536 Property, plant and equipment, net 710,982 20,742 — 731,724 Pension and postretirement assets 413,107 — — 413,107 Goodwill 62,696 — — 62,696 Deferred income taxes 79,151 83,379 (1,346) 161,184 Lease assets 66,166 3,484 — 69,650 Other long-term assets 228,261 39,208 (113,541) 153,928 $ 4,180,724 $ 8,230,134 $ (270,304) $ 12,140,554 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 323,798 $ 173,200 $ (147,836) $ 349,162 Accrued liabilities 509,725 144,622 (7,488) 646,859 Short-term deposits, net — 253,309 — 253,309 Short-term debt — 878,935 — 878,935 Current portion of long-term debt, net — 1,255,999 — 1,255,999 833,523 2,706,065 (155,324) 3,384,264 Long-term deposits, net — 194,473 — 194,473 Long-term debt, net 746,077 4,244,509 — 4,990,586 Lease liabilities 48,433 3,415 — 51,848 Pension and postretirement liabilities 59,772 — — 59,772 Deferred income taxes 30,266 3,248 — 33,514 Other long-term liabilities 150,171 21,725 1,906 173,802 Commitments and contingencies (Note 15) Shareholders’ equity 2,312,482 1,056,699 (116,886) 3,252,295 $ 4,180,724 $ 8,230,134 $ (270,304) $ 12,140,554 December 31, 2022 Non-Financial Services Entities Financial Services Entities Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,021,798 $ 411,377 $ — $ 1,433,175 Accounts receivable, net 369,192 — (116,967) 252,225 Finance receivables, net — 1,782,631 — 1,782,631 Inventories, net 950,960 — — 950,960 Restricted cash — 135,424 — 135,424 Other current assets 138,743 62,037 (4,542) 196,238 2,480,693 2,391,469 (121,509) 4,750,653 Finance receivables, net — 5,355,807 — 5,355,807 Property, plant and equipment, net 665,298 24,588 — 689,886 Pension and postretirement assets 320,133 — — 320,133 Goodwill 62,090 — — 62,090 Deferred income taxes 56,255 79,808 (1,022) 135,041 Lease assets 37,938 5,993 — 43,931 Other long-term assets 213,306 29,080 (107,451) 134,935 $ 3,835,713 $ 7,886,745 $ (229,982) $ 11,492,476 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 359,584 $ 135,385 $ (116,967) $ 378,002 Accrued liabilities 498,570 126,405 (4,030) 620,945 Short-term deposits, net — 79,710 — 79,710 Short-term debt — 770,468 — 770,468 Current portion of long-term debt, net — 1,684,782 — 1,684,782 858,154 2,796,750 (120,997) 3,533,907 Long-term deposits, net — 237,665 — 237,665 Long-term debt, net 745,368 3,711,684 — 4,457,052 Lease liabilities 20,860 5,917 — 26,777 Pension and postretirement liabilities 67,955 — — 67,955 Deferred income taxes 28,180 1,348 — 29,528 Other long-term liabilities 161,231 69,542 2,011 232,784 Commitments and contingencies (Note 15) Shareholders’ equity 1,953,965 1,063,839 (110,996) 2,906,808 $ 3,835,713 $ 7,886,745 $ (229,982) $ 11,492,476 Year Ended December 31, 2023 Non-Financial Services Entities Financial Services Entities Consolidating Adjustments Consolidated Cash flows from operating activities: Net income $ 712,909 $ 181,937 $ (199,800) $ 695,046 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 149,187 8,925 — 158,112 Amortization of deferred loan origination costs — 85,018 — 85,018 Amortization of financing origination fees 709 12,499 — 13,208 Provision for long-term employee benefits (67,624) — — (67,624) Employee benefit plan contributions and payments (5,736) — — (5,736) Stock compensation expense 79,311 3,590 — 82,901 Net change in wholesale finance receivables related to sales — — (387,743) (387,743) Provision for credit losses — 227,158 — 227,158 Deferred income taxes (26,720) (3,663) 324 (30,059) Other, net (18,480) (21,033) (200) (39,713) Changes in current assets and liabilities: Accounts receivable, net (42,312) — 30,869 (11,443) Finance receivables - accrued interest and other — (339) — (339) Inventories, net 21,257 — — 21,257 Accounts payable and accrued liabilities (21,957) 67,635 (17,108) 28,570 Other current assets (11,283) (5,482) 3,039 (13,726) 56,352 374,308 (370,819) 59,841 Net cash provided by operating activities 769,261 556,245 (570,619) 754,887 Cash flows from investing activities: Capital expenditures (202,325) (5,079) — (207,404) Origination of finance receivables — (7,284,431) 3,410,889 (3,873,542) Collections on finance receivables — 6,611,092 (3,040,270) 3,570,822 Other investing activities (4,680) — 2,500 (2,180) Net cash used by investing activities (207,005) (678,418) 373,119 (512,304) Year Ended December 31, 2023 Non-Financial Services Entities Financial Services Entities Consolidating Adjustments Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 1,446,304 — 1,446,304 Repayments of medium-term notes — (1,056,680) — (1,056,680) Proceeds from securitization debt — 1,045,547 — 1,045,547 Repayments of securitization debt — (1,193,526) — (1,193,526) Borrowings of asset-backed commercial paper — 42,429 — 42,429 Repayments of asset-backed commercial paper — (237,370) — (237,370) Net increase in unsecured commercial paper — 107,146 — 107,146 Net increase in deposits — 129,855 — 129,855 Dividends paid (96,310) (200,000) 200,000 (96,310) Repurchase of common stock (363,987) — — (363,987) Other financing activities 1,946 2,500 (2,500) 1,946 Net cash (used) provided by financing activities (458,351) 86,205 197,500 (174,646) Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,697 — — 1,697 Net increase (decrease) in cash, cash equivalents and restricted cash $ 105,602 $ (35,968) $ — $ 69,634 Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash, beginning of period $ 1,021,798 $ 557,379 $ — $ 1,579,177 Net decrease in cash, cash equivalents and restricted cash 105,602 (35,968) — 69,634 Cash, cash equivalents and restricted cash, end of period $ 1,127,400 $ 521,411 $ — $ 1,648,811 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In February 2024, the Company transferred $173.8 million of U.S. retail motorcycle finance receivables to an SPE which, in turn, issued $151.8 million of debt to the U.S. Conduit Facilities. In February 2024, the Company also transferred C$47.2 million of Canadian retail motorcycle finance receivables to the Canadian Conduit for proceeds of C$38.6 million. |
Consolidated Valuation and Qual
Consolidated Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Consolidated Valuation and Qualifying Accounts | CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2023, 2022 and 2021 (In thousands) 2023 2022 2021 Accounts receivable - Allowance for doubtful accounts Balance, beginning of period $ 2,887 $ 2,440 $ 3,742 Provision charged to expense 46 679 197 Reserve adjustments 54 (89) (157) Write-offs, net of recoveries (905) (143) (1,342) Balance, end of period $ 2,082 $ 2,887 $ 2,440 Finance receivables - Allowance for credit losses Balance, beginning of period $ 358,711 $ 339,379 $ 390,936 Provision for credit losses 227,158 145,133 25,049 Charge-offs, net of recoveries (203,903) (125,801) (76,606) Balance, end of period $ 381,966 $ 358,711 $ 339,379 Inventories - Allowance for obsolescence (a) Balance, beginning of period $ 84,587 $ 62,969 $ 71,995 Provision charged to expense 45,093 29,060 5,659 Reserve adjustments 519 (366) (2,078) Write-offs, net of recoveries (19,953) (7,076) (12,607) Balance, end of period $ 110,246 $ 84,587 $ 62,969 Deferred tax assets - Valuation allowance Balance, beginning of period $ 40,878 $ 33,596 $ 38,072 Adjustments 7,638 7,282 (4,476) Balance, end of period $ 48,516 $ 40,878 $ 33,596 (a) Inventory obsolescence reserves deducted from cost determined on first-in, first-out (FIFO) basis, before deductions for last-in, first-out (LIFO) valuation reserves. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 706,586 | $ 741,408 | $ 650,024 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation – All references to the “Company” include Harley-Davidson, Inc. and all of its subsidiaries. The consolidated financial statements include the accounts of Harley-Davidson, Inc., its subsidiaries and certain variable interest entities (VIEs) related to secured financing as the Company is the primary beneficiary. All intercompany accounts and material intercompany transactions have been eliminated. On September 26, 2022, the Company's electric motorcycle subsidiary completed a merger with AEA-Bridges Impact Corp. (ABIC), a special purpose acquisition company, to create a new publicly traded company, LiveWire Group, Inc. LiveWire Group, Inc. received net proceeds of approximately $294 million, including a $180 million investment from the Company, net of transaction expenses, a $100 million investment from an independent investor, and a $14 million investment from ABIC . The Company has a controlling equity interest in LiveWire Group, Inc. As the controlling shareholder, the Company consolidates LiveWire Group, Inc. results with additional adjustments to recognize non-controlling shareholder interests. |
Use of Estimates | Use of Estimates – The preparation of financial statements in conformity with U.S. generally accepted accounting principles (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. |
Cash and Cash Equivalents | Cash and Cash Equivalents – The Company considers all highly liquid investments with a maturity of 90 days or less when purchased to be cash equivalents. |
Accounts Receivable, net | Accounts Receivable, net – The Company’s motorcycles and related products are sold to independent dealers outside the U.S. and Canada generally on open account and the resulting receivables are included in Accounts receivable, net on the Consolidated balance sheets Finance receivables, net on the Consolidated balance sheets . |
Inventories, net | Inventories, net – Substantially all inventories located in the U.S. are valued using the last-in, first-out (LIFO) method. Other inventories totaling $447.5 million and $425.0 million at December 31, 2023 and 2022, respectively, are valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Repossessed Inventory – Repossessed inventory representing recovered collateral on impaired finance receivables is recorded at the lower of cost or net realizable value through a fair value remeasurement. In the period during which the collateral is repossessed, the related finance receivable is adjusted through a change to the allowance for credit losses and reclassified to repossessed inventory, included in Other current assets on the Consolidated balance sheets . |
Property, Plant and Equipment, net | Property, Plant and Equipment, net – Property, plant and equipment is recorded at cost, net of accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of each class of property, plant and equipment generally consist of 30 years for buildings, 7 years for building and land improvements, 3 to 10 years for machinery and equipment, and 3 to 7 years for software. Accelerated methods of depreciation are used for income tax purposes. |
Goodwill | Goodwill |
Long-lived Assets | Long-lived Assets – The Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such review. If the carrying value of a long-lived asset is considered impaired, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset for assets to be held and used. The Company also reviews the useful life of its long-lived assets when events and circumstances indicate that the actual useful life may be shorter than originally estimated. In the event that the actual useful life is deemed to be shorter than the original useful life, depreciation is adjusted prospectively so that the remaining book value is depreciated over the revised useful life. Asset groups classified as held for sale are measured at the lower of carrying amount or fair value less cost to sell, and a loss is recognized for any initial adjustment required to reduce the carrying amount to the fair value less cost to sell in the period the held for sale criteria are met. The fair value less cost to sell is assessed each reporting period that the asset group remains classified as held for sale. Gains or losses not previously recognized resulting from the sale of an asset group will be recognized on the date of sale. |
Fair Value Measurements | Fair Value Measurements - 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. |
Research and Development Expenses | Research and Development Expenses – Expenditures for research activities relating to product development and improvements are charged against income as incurred and included within Selling, administrative and engineering expense on the Consolidated statements of operations |
Advertising Costs | Advertising Costs – The Company expenses the production cost of advertising the first time the advertising takes place within Selling, administrative and engineering expense |
Shipping and Handling Costs | Shipping and Handling Costs – The Company classifies shipping and handling costs as a component of Motorcycles and related products cost of goods sold . |
New Accounting Standards | New Accounting Standards Accounting Standards Not Yet Adopted In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07). ASU 2023-07 is intended to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The main provisions of ASU 2023-07 require a public entity to disclose on an annual and interim basis: (i) significant segment expenses provided to the chief operating decision maker, (ii) an amount representing the difference between segment revenue less segment expenses disclosed under the significant segment expense principle and each reported measure of segment profit or loss and a description of its composition, (iii) provide all annual disclosures about a reportable segment's profit or loss and assets currently required under Topic 280 in interim periods, (iv) clarify that if the chief operating decision maker uses more than one measure of a segment's profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit, (v) the title and position of the chief operating decision maker and an explanation of how the chief operating decision maker uses the reported measure of segment profit or loss in assessing segment performance and deciding how to allocate resources, and (vi) all disclosures required by ASU 2023-07 and all existing segment disclosures under Topic 280 for an entity with a single reportable segment. The new guidance is effective for the fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is still evaluating the impact ASU 2023-07 will have on the Company's consolidated financial statement disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to enhance the transparency and decision usefulness of income tax disclosures. The main provisions of ASU 2023-09 require a public entity to disclose on an annual basis (i) specific prescribed categories in the rate reconciliation, (ii) additional information for reconciling items that meet a quantitative threshold, (iii) the amount of income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes, (iv) the amount of income taxes paid, net of refunds received, disaggregated by individual jurisdictions in which income taxes paid is equal to greater than 5 percent of total income taxes paid, (v) income or loss from continuing operations before income tax expense or benefit disaggregated between domestic and foreign, and (vi) income tax expense or benefit from continuing operations disaggregated by federal, state, and foreign. ASU 2023-09 also removes certain disclosure requirements related to unrecognized tax benefits and cumulative unrecognized temporary differences. The new guidance is effective for the fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is still evaluating the impact ASU 2023-09 will have on the Company's consolidated financial statement disclosures. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Disaggregated revenue by major source was as follows for the years ended December 31 (in thousands): 2023 2022 2021 HDMC: Motorcycles $ 3,798,977 $ 3,787,484 $ 3,468,689 Parts and accessories 698,095 731,645 $ 740,893 Apparel 244,333 271,107 $ 228,011 Licensing 28,599 39,423 $ 37,790 Other 74,590 58,013 $ 29,051 4,844,594 4,887,672 $ 4,504,434 LiveWire 38,298 46,833 $ 35,806 Motorcycles and related products revenue 4,882,892 4,934,505 $ 4,540,240 HDFS: Interest income 802,078 693,615 $ 671,708 Other 151,508 127,010 $ 124,360 Financial services revenue 953,586 820,625 $ 796,068 $ 5,836,478 $ 5,755,130 $ 5,336,308 |
Schedule of Deferred Revenue | , included in Accrued liabilities and Other long-term liabilities on the Consolidated balance sheets , were as follows as of December 31 (in thousands): 2023 2022 Balance, beginning of period $ 44,100 $ 40,092 Balance, end of period $ 47,091 $ 44,100 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | Income tax provision (benefit) for the years ended December 31, consists of the following (in thousands): 2023 2022 2021 Current: Federal $ 125,875 $ 139,423 $ 134,111 State 22,340 20,367 14,508 Foreign 53,674 48,165 28,266 201,889 207,955 176,885 Deferred: Federal (18,781) (12,313) (2,169) State (6,209) (7,761) (3,795) Foreign (5,069) 4,138 (1,708) (30,059) (15,936) (7,672) $ 171,830 $ 192,019 $ 169,213 |
Schedule of Components of Income Before Taxes | The components of Income before income taxes for the years ended December 31, were as follows (in thousands): 2023 2022 2021 Domestic $ 614,713 $ 750,793 $ 698,578 Foreign 252,163 180,440 120,659 $ 866,876 $ 931,233 $ 819,237 |
Schedule of Provision for Income Tax Rate to Statutory Rate Reconciliation | Income tax provision differs from the amount that would be provided by applying the statutory U.S. corporate income tax rate for the years ended December 31, due to the following items (in thousands): 2023 2022 2021 Provision at statutory rate $ 182,044 $ 195,553 $ 172,040 State taxes, net of federal benefit 21,659 19,223 16,568 Foreign rate differential 7,887 3,620 4,303 Foreign derived intangible income (8,669) (8,187) — Research and development credit (23,130) (18,809) (8,046) Unrecognized tax benefits including interest and penalties (9,210) (11,793) (6,554) Valuation allowance adjustments 7,345 6,714 (1,928) State credits (8,035) (6,954) (5,403) Global intangible low-taxed income 474 1,607 1,143 Return to provision adjustments 1,057 (6,318) (8,500) Executive compensation limitation 8,712 4,893 3,104 Other foreign inclusions 1,563 16,562 34 Tax incentives (12,996) (7,202) (1,307) Other 3,129 3,110 3,759 Income tax provision $ 171,830 $ 192,019 $ 169,213 |
Schedule of Principal Components of the Company's Deferred Tax Assets and Liabilities | The principal components of the Company’s deferred income tax assets and liabilities as of December 31, include the following (in thousands): 2023 2022 Deferred income tax assets: Accruals not yet tax deductible $ 152,288 $ 133,349 Stock compensation 12,995 11,616 Net operating loss and research & development tax credit carryforwards 68,809 63,517 Amortization of research and experimental costs 78,169 43,034 Other 66,749 55,800 379,010 307,316 Valuation allowance (48,516) (40,878) 330,494 266,438 Deferred income tax liabilities: Depreciation, tax in excess of book (57,641) (49,889) Pension and postretirement healthcare plan obligations (82,682) (58,843) Withholding tax (29,904) (23,632) Other (32,597) (28,561) (202,824) (160,925) $ 127,670 $ 105,513 |
Schedule of Gross Operating Loss Carryforwards | The Company's gross state net operating loss carryforwards were as follows at December 31 (in thousands): Year of Expiration 2023 2022 2031 $ 238,682 $ 219,726 2032 12 24 2033 46 46 2034 108 109 2035 1,085 553 2036 60 60 2037 187 195 2038 824 820 2039 11,285 9,375 2040 34,354 31,879 2041 2,135 2,135 2042 347 458 Indefinite 7,280 2,923 $ 296,405 $ 268,303 |
Schedule of Changes in Gross Liability for Unrecognized Tax Benefits Excluding Interest and Penalties | The Company recognizes interest and penalties related to unrecognized tax benefits in Income tax provision (benefit) . Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands): 2023 2022 Unrecognized tax benefits, beginning of period $ 32,029 $ 44,856 Increase in unrecognized tax benefits for tax positions taken in a prior period 3,159 373 Decrease in unrecognized tax benefits for tax positions taken in a prior period (10,444) (8,885) Increase in unrecognized tax benefits for tax positions taken in the current period 870 3,158 Statute lapses — (2,753) Settlements with taxing authorities (7,400) (4,720) Unrecognized tax benefits, end of period $ 18,214 $ 32,029 |
Capital Stock and Earnings Pe_2
Capital Stock and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Common Shares | Share information regarding the Company's common stock at December 31, was as follows: 2023 2022 Common stock shares: Authorized 800,000,000 800,000,000 Issued 171,218,640 170,400,212 Outstanding 136,312,009 145,862,632 Treasury stock shares 34,906,631 24,537,580 |
Schedule of Reconciliation of Earnings Per Share Basic and Diluted | Earnings Per Share – The computation of basic and diluted earnings per share for the years ended December 31, was as follows (in thousands except per share amounts): 2023 2022 2021 Net income attributable to Harley-Davidson, Inc. $ 706,586 $ 741,408 $ 650,024 Basic weighted-average shares outstanding 142,378 148,012 153,747 Effect of dilutive securities – employee stock compensation plan 2,725 1,339 1,233 Diluted weighted-average shares outstanding 145,103 149,351 154,980 Earnings per share: Basic $ 4.96 $ 5.01 $ 4.23 Diluted $ 4.87 $ 4.96 $ 4.19 |
Additional Balance Sheet and _2
Additional Balance Sheet and Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Marketable Securities | Investments in marketable securities consisted of the following at December 31 (in thousands): 2023 2022 Mutual funds $ 34,079 $ 33,071 |
Schedule of Inventories, Net | Inventories, net consisted of the following as of December 31 (in thousands): 2023 2022 Raw materials and work in process $ 389,221 $ 331,380 Motorcycle finished goods 514,964 549,041 Parts and accessories and apparel 150,844 187,039 Inventory at lower of FIFO cost or net realizable value 1,055,029 1,067,460 Excess of FIFO over LIFO cost (125,078) (116,500) $ 929,951 $ 950,960 |
Schedule of Property, Plant and Equipment, at Cost | Property, plant and equipment, net consisted of the following as of December 31 (in thousands): 2023 2022 Land and related improvements $ 66,939 $ 71,360 Buildings and related improvements 431,215 411,859 Machinery and equipment 1,491,448 1,507,224 Software 722,213 705,013 Construction in progress 243,010 189,492 2,954,825 2,884,948 Accumulated depreciation (2,223,101) (2,195,062) $ 731,724 $ 689,886 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of December 31 (in thousands): 2023 2022 Payroll, employee benefits and related expenses $ 101,955 $ 108,980 Sales incentive programs 116,167 50,298 Warranty and recalls 41,375 46,707 Interest 84,313 55,670 Tax-related accruals 38,219 51,730 Contract liability 23,357 17,615 Leases 18,685 16,208 Fair value of derivative financial instruments 12,806 26,022 Other 209,982 247,715 $ 646,859 $ 620,945 |
Schedule of Time Deposit Maturities | Future maturities of the Company's certificates of deposit as of December 31, 2023 were as follows (in thousands): 2024 $ 253,720 2025 61,002 2026 79,678 2027 54,158 Thereafter — Future maturities 448,558 Unamortized fees (776) $ 447,782 |
Schedule of Reconciliation of Net Cash Provided by Operating Activities | Operating Cash Flow – The reconciliation of Net income to Net cash provided by operating activities for the years ended December 31, was as follows (in thousands): 2023 2022 2021 Cash flows from operating activities: Net income $ 695,046 $ 739,214 $ 650,024 Adjustments to reconcile Net income to Net cash provided by operating activities: Depreciation and amortization 158,112 151,942 165,185 Amortization of deferred loan origination costs 85,018 94,914 86,115 Amortization of financing origination fees 13,208 15,105 13,810 Provision for long-term employee benefits (67,624) (21,891) 8,317 Employee benefit plan contributions and payments (5,736) (14,320) (17,133) Stock compensation expense 82,901 54,353 42,156 Net change in wholesale finance receivables related to sales (387,743) (198,623) 89,001 Provision for credit losses 227,158 145,133 25,049 Deferred income taxes (30,059) (15,936) (7,672) Other, net (39,713) (13,027) (9,985) Changes in current assets and liabilities: Accounts receivable, net (11,443) (82,385) (53,463) Finance receivables – accrued interest and other (339) 414 13,316 Inventories, net 21,257 (254,170) (207,550) Accounts payable and accrued liabilities 28,570 4,503 173,548 Other current assets (13,726) (56,765) 4,983 59,841 (190,753) 325,677 Net cash provided by operating activities $ 754,887 $ 548,461 $ 975,701 Cash paid during the years ended December 31, for interest and income taxes was as follows (in thousands): 2023 2022 2021 Interest $ 290,467 $ 231,651 $ 191,663 Income taxes $ 237,658 $ 244,374 $ 155,579 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Finance Receivables | Finance receivables, net at December 31, were as follows (in thousands): 2023 2022 Retail finance receivables: United States $ 6,657,998 $ 6,582,316 Canada 160,701 165,885 6,818,699 6,748,201 Wholesale finance receivables: United States 1,016,815 724,126 Canada 44,717 24,822 1,061,532 748,948 7,880,231 7,497,149 Allowance for credit losses (381,966) (358,711) $ 7,498,265 $ 7,138,438 |
Schedule of Contractual Maturities of Finance Receivables | As of December 31, 2023, contractual maturities of total finance receivables were as follows (in thousands): United States Canada Total 2024 $ 2,103,636 $ 77,128 $ 2,180,764 2025 1,249,110 34,413 1,283,523 2026 1,418,130 37,726 1,455,856 2027 1,514,263 41,359 1,555,622 2028 1,103,316 14,792 1,118,108 Thereafter 286,358 — 286,358 $ 7,674,813 $ 205,418 $ 7,880,231 |
Schedule of Changes in the Allowance for Finance Credit Losses on Finance Receivables | The allowance for credit losses on finance receivables is comprised of individual components relating to wholesale and retail finance receivables. Changes in the allowance for credit losses on finance receivables by portfolio for the year ended December 31, were as follows (in thousands): 2023 Retail Wholesale Total Balance, beginning of period $ 345,275 $ 13,436 $ 358,711 Provision for credit losses 225,665 1,493 227,158 Charge-offs (263,915) — (263,915) Recoveries 60,012 — 60,012 Balance, end of period $ 367,037 $ 14,929 $ 381,966 2022 Retail Wholesale Total Balance, beginning of period $ 326,320 $ 13,059 $ 339,379 Provision for credit losses 144,756 377 145,133 Charge-offs (176,718) — (176,718) Recoveries 50,917 — 50,917 Balance, end of period $ 345,275 $ 13,436 $ 358,711 2021 Retail Wholesale Total Balance, beginning of period $ 371,738 $ 19,198 $ 390,936 Provision for credit losses 31,338 (6,289) 25,049 Charge-offs (122,637) — (122,637) Recoveries 45,881 150 46,031 Balance, end of period $ 326,320 $ 13,059 $ 339,379 |
Schedule of Financing Receivable Credit Quality Indicators | The amortized cost of the Company's U.S. and Canadian retail finance receivables by vintage and credit quality indicator was as follows (in thousands): December 31, 2023 2023 2022 2021 2020 2019 2018 & Prior Total U.S. Retail: Super prime $ 1,066,321 $ 729,339 $ 376,474 $ 151,004 $ 70,627 $ 27,013 $ 2,420,778 Prime 1,173,463 993,417 584,305 259,995 139,011 78,880 3,229,071 Sub-prime 333,099 275,964 189,688 101,437 63,393 44,568 1,008,149 2,572,883 1,998,720 1,150,467 512,436 273,031 150,461 6,657,998 Canadian Retail: Super prime 48,705 31,733 17,744 9,241 4,521 1,524 113,468 Prime 13,764 11,434 7,336 4,390 2,728 1,838 41,490 Sub-prime 1,846 1,546 739 817 525 270 5,743 64,315 44,713 25,819 14,448 7,774 3,632 160,701 $ 2,637,198 $ 2,043,433 $ 1,176,286 $ 526,884 $ 280,805 $ 154,093 $ 6,818,699 Current YTD period gross charge-offs: US Retail $ 20,047 $ 102,387 $ 74,212 $ 30,896 $ 18,088 $ 14,655 $ 260,285 Canadian Retail 527 1,004 866 472 278 483 3,630 $ 20,574 $ 103,391 $ 75,078 $ 31,368 $ 18,366 $ 15,138 $ 263,915 December 31, 2022 2022 2021 2020 2019 2018 2017 & Prior Total U.S. Retail: Super prime $ 1,118,198 $ 612,890 $ 276,492 $ 159,550 $ 69,652 $ 26,701 $ 2,263,483 Prime 1,433,141 887,817 425,401 260,458 135,454 79,611 3,221,882 Sub-prime 420,660 298,153 164,946 108,372 57,993 46,827 1,096,951 2,971,999 1,798,860 866,839 528,380 263,099 153,139 6,582,316 Canadian Retail: Super prime 49,033 30,090 17,553 12,215 4,975 1,527 115,393 Prime 16,094 10,705 7,283 5,098 3,068 1,787 44,035 Sub-prime 2,223 1,402 1,173 869 475 315 6,457 67,350 42,197 26,009 18,182 8,518 3,629 165,885 $ 3,039,349 $ 1,841,057 $ 892,848 $ 546,562 $ 271,617 $ 156,768 $ 6,748,201 The amortized cost of wholesale finance receivables, by vintage and credit quality indicator, was as follows (in thousands): December 31, 2023 2023 2022 2021 2020 2019 2018 & Prior Total Non-Performing $ — $ — $ — $ — $ — $ — $ — Doubtful — — — — — — — Substandard 10,934 258 — — 5 — 11,197 Special Mention 641 30 — — — — 671 Medium Risk 2,905 — — — — — 2,905 Low Risk 961,519 66,757 5,107 4,962 7,786 628 1,046,759 $ 975,999 $ 67,045 $ 5,107 $ 4,962 $ 7,791 $ 628 $ 1,061,532 December 31, 2022 2022 2021 2020 2019 2018 2017 & Prior Total Non-Performing $ — $ — $ — $ — $ — $ — $ — Doubtful — — — — — — — Substandard — — — — — — — Special Mention — — — — — — — Medium Risk — — — — — — — Low Risk 714,238 11,478 6,646 8,457 7,938 191 748,948 $ 714,238 $ 11,478 $ 6,646 $ 8,457 $ 7,938 $ 191 $ 748,948 |
Schedule of Past Due Financing Receivables | The aging analysis of finance receivables at December 31, was as follows (in t housands): 2023 Current 31-60 Days 61-90 Days Greater than Total Total Retail finance receivables $ 6,516,342 $ 168,027 $ 67,033 $ 67,297 $ 302,357 $ 6,818,699 Wholesale finance receivables 1,060,561 763 25 183 971 1,061,532 $ 7,576,903 $ 168,790 $ 67,058 $ 67,480 $ 303,328 $ 7,880,231 2022 Current 31-60 Days 61-90 Days Greater than Total Total Retail finance receivables $ 6,473,462 $ 152,343 $ 60,446 $ 61,950 $ 274,739 $ 6,748,201 Wholesale finance receivables 748,682 222 44 — 266 748,948 $ 7,222,144 $ 152,565 $ 60,490 $ 61,950 $ 275,005 $ 7,497,149 The recorded investment of retail and wholesale finance receivables, excluding non-accrual status finance receivables, that were contractually past due 90 days or more at December 31, was as follows (in thousands): 2023 2022 United States $ 66,119 $ 60,945 Canada 1,361 1,005 $ 67,480 $ 61,950 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill in the HDMC and LiveWire segments for the years ended December 31, was as follows (in thousands): 2023 HDMC LiveWire Total Balance, beginning of period $ 53,763 $ 8,327 $ 62,090 Currency translation 606 — 606 Balance, end of period $ 54,369 $ 8,327 $ 62,696 2022 HDMC LiveWire Total Balance, beginning of period $ 54,850 $ 8,327 $ 63,177 Currency translation (1,087) — (1,087) Balance, end of period $ 53,763 $ 8,327 $ 62,090 |
Schedule of Finite-Lived Intangible Assets Other than Goodwill | Intangible assets at December 31, were as follows (in thousands): 2023 2022 Gross carrying amount $ 12,475 $ 10,864 Accumulated amortization (5,447) (4,472) $ 7,028 $ 6,392 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Future amortization of the Company's intangible assets as of December 31, 2023 is as follows (in thousands): 2024 $ 1,157 2025 1,105 2026 1,024 2027 622 2028 622 Thereafter 2,498 $ 7,028 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, at December 31, were as follows (in thousands): Derivative Financial Instruments 2023 2022 Notional Assets (a) Liabilities (b) Notional Assets (a) Liabilities (b) Foreign currency contracts $ 540,088 $ 3,529 $ 9,194 $ 550,160 $ 6,054 $ 13,440 Commodity contracts 642 — 134 1,361 — 410 Cross-currency swaps 1,420,560 15,080 3,160 1,367,460 — 36,101 $ 1,961,290 $ 18,609 $ 12,488 $ 1,918,981 $ 6,054 $ 49,951 Derivative Financial Instruments 2023 2022 Notional Assets (c) Liabilities (b) Notional Assets (c) Liabilities (b) Commodity contracts 5,637 — 318 10,803 310 310 Interest rate caps 617,859 464 — 1,058,827 2,373 — $ 623,496 $ 464 $ 318 $ 1,069,630 $ 2,683 $ 310 (a) Includes $15.1 million of cross-currency swaps recorded in Other long-term assets as of December 31, 2023 with all remaining amounts recorded in Other current assets . (b) Includes $24.2 million of cross-currency swaps recorded in Other long-term liabilities as of December 31, 2022 with all remaining amounts recorded in Accrued liabilities. (c) Includes $0.5 million and $2.4 million of interest rate caps recorded in Other Long-term assets as of December 31, 2023 and December 31, 2022, respectively, with all remaining amounts recorded in Other current assets. |
Schedule of Gain/(Loss) on Derivative Cash Flow Hedges Reclassified From AOCI Into Income | The amount of gains and losses related to derivative financial instruments designated as cash flow hedges for the years ended December 31, were as follows (in thousands): Gain/(Loss) Gain/(Loss) 2023 2022 2021 2023 2022 2021 Foreign currency contracts $ 1,859 $ 26,093 $ 29,602 $ 1,301 $ 46,077 $ (12,531) Commodity contracts (654) 312 345 (930) 703 313 Cross-currency swaps 48,019 (71,172) (103,551) 43,812 (79,952) (115,200) Treasury rate lock contracts 1,139 — — (53) (426) (502) Interest rate swaps — — 397 — — (2,689) Swap rate lock contracts (1,780) — — (452) — — $ 48,583 $ (44,767) $ (73,207) $ 43,678 $ (33,598) $ (130,609) The location and amount of gains and losses recognized in income related to derivative financial instruments designated as cash flow hedges for the years ended December 31, were as follows (in thousands): Motorcycles and related products Selling, administrative & Interest expense Financial services interest expense 2023 Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded $ 3,322,306 $ 1,175,550 $ 30,787 $ 332,380 Gain/(loss) reclassified from AOCL into income: Foreign currency contracts $ 1,301 $ — $ — $ — Commodity contracts $ (930) $ — $ — $ — Cross-currency swaps $ — $ 43,812 $ — $ — Treasury rate lock contracts $ — $ — $ (363) $ 310 Swap rate lock contracts $ — $ — $ — $ (452) 2022 Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded $ 3,403,728 $ 1,079,338 $ 31,235 $ 217,653 Gain/(loss) reclassified from AOCL into income: Foreign currency contracts $ 46,077 $ — $ — $ — Commodity contracts $ 703 $ — $ — $ — Cross-currency swaps $ — $ (79,952) $ — $ — Treasury rate lock contracts $ — $ — $ (363) $ (63) 2021 Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded $ 3,243,287 $ 1,051,589 $ 30,972 $ 192,944 Gain/(loss) reclassified from AOCL into income: Foreign currency contracts $ (12,531) $ — $ — $ — Commodity contracts $ 313 $ — $ — $ — Cross-currency swaps $ — $ (115,200) $ — $ — Treasury rate lock contracts $ — $ — $ (363) $ (139) Interest rate swaps $ — $ — $ — $ (2,689) |
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 as of December 31 were as follows (in thousands). Gains and losses on foreign currency contracts and commodity contracts were recorded in Motorcycles and related products cost of goods sold. Gains and losses on interest rate caps were recorded in Selling, administrative & engineering expense . Amount of Gain/(Loss) 2023 2022 2021 Foreign currency contracts $ 125 $ 7,730 $ (2,374) Commodity contracts (1,426) 1,264 1,966 Interest rate caps (1,908) 530 313 $ (3,209) $ 9,524 $ (95) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Balance Sheet Information Related to Leases | Balance sheet information related to the Company's leases at December 31, was as follows (in thousands): 2023 2022 Lease assets $ 69,650 $ 43,931 Accrued liabilities $ 18,685 $ 16,208 Lease liabilities 51,848 26,777 $ 70,533 $ 42,985 |
Schedule of Future Maturities of Lease Liabilities | Future maturities of the Company's operating lease liabilities as of December 31, 2023 were as follows (in thousands): 2024 $ 21,804 2025 18,194 2026 13,071 2027 8,067 2028 7,074 Thereafter 12,050 Future lease payments 80,260 Present value discount (9,727) Lease liabilities $ 70,533 |
Schedule of Other Lease Information | Other lease information surrounding the Company's operating leases as of December 31, was as follows (dollars in thousands): 2023 2022 Cash outflows for amounts included in the measurement of lease liabilities $ 20,622 $ 19,776 ROU assets obtained in exchange for lease obligations, net of modifications $ 45,703 $ 16,257 Weighted-average remaining lease term (in years) 4.70 3.32 Weighted-average discount rate 5.0 % 2.6 % |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt With Contractual Term Less Than One Year | Debt with a contractual term less than 12 months is generally classified as short-term and consisted of the following at December 31 (in thousands): 2023 2022 Unsecured commercial paper $ 878,935 $ 770,468 |
Schedule of Debt With a Contractual Term Greater Than One Year | Debt with a contractual term greater than 12 months is generally classified as long-term and consisted of the following at December 31 (in thousands): 2023 2022 Secured debt: Asset-backed Canadian commercial paper conduit facility $ 70,742 $ 71,785 Asset-backed U.S. commercial paper conduit facility 233,258 425,794 Asset-backed securitization debt 1,884,629 2,028,155 Unamortized discounts and debt issuance costs (7,261) (8,741) 2,181,368 2,516,993 2023 2022 Unsecured notes (at par value): Medium-term notes: Due in 2023, issued February 2018 3.35% — 350,000 Due in 2023, issued May 2020 (a) 4.94% — 695,727 Due in 2024, issued November 2019 (b) 3.14% 662,238 642,210 Due in 2025, issued June 2020 3.35% 700,000 700,000 Due in 2026, issued April 2023 (c) 6.36 % 772,610 — Due in 2027, issued February 2022 3.05% 500,000 500,000 Due in 2028, issued March 2023 6.50 % 700,000 — Unamortized discounts and debt issuance costs (15,710) (8,464) 3,319,138 2,879,473 Senior notes: Due in 2025, issued July 2015 3.50% 450,000 450,000 Due in 2045, issued July 2015 4.625% 300,000 300,000 Unamortized discounts and debt issuance costs (3,921) (4,632) 746,079 745,368 4,065,217 3,624,841 Long-term debt 6,246,585 6,141,834 Current portion of long-term debt, net (1,255,999) (1,684,782) Long-term debt, net $ 4,990,586 $ 4,457,052 (a) €650.0 million par value remeasured to U.S. dollar at December 31, 2022 (b) €600.0 million par value remeasured to U.S. dollar at December 31, 2023 and 2022, respectively (c) €700.0 million par value remeasured to U.S. dollar at December 31, 2023 At December 31, 2023, the Consolidated balance sheets included outstanding balances related to the following secured notes with the related maturity dates and interest rates (in thousands): Issue Date Principal Amount Weighted-Average Rate Contractual Maturity Date September 2023 $500,000 5.79% October 2024 - April 2031 February 2023 $550,000 5.10% March 2024 - June 2030 June 2022 $1,286,262 2.45% April 2028 April 2022 $550,000 2.40% April 2023 - January 2030 August 2021 $575,000 0.42% August 2022 - May 2029 February 2021 $600,000 0.30% February 2022 - September 2028 In addition, outstanding balances related to the following secured notes included in the Consolidated balance sheets at December 31, 2022 were repaid during 2023 (in thousands): Issue Date Principal Amount Weighted-Average Rate Contractual Maturity Date May 2020 $750,178 3.38% April 2028 January 2020 $525,000 1.83% February 2021 - April 2027 June 2019 $525,000 2.37% July 2020 - November 2026 |
Schedule of Maturities of Long-term Debt | Future principal payments of the Company's debt obligations as of December 31, 2023 were as follows (in thousands): 2024 $ 2,135,319 2025 1,853,515 2026 1,389,750 2027 728,936 2028 744,892 Thereafter 300,000 Future principal payments $ 7,152,412 Unamortized discounts and debt issuances costs (26,892) $ 7,125,520 |
Asset-Backed Financing (Tables)
Asset-Backed Financing (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Assets and Liabilities of Variable Interest Entities | The assets and liabilities related to the on-balance sheet asset-backed financings included in the Consolidated balance sheets at December 31, were as follows (in thousands): 2023 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 $ 2,348,817 $ (126,882) $ 94,137 $ 6,719 $ 2,322,791 $ 1,877,368 Asset-backed U.S. commercial paper conduit facility 259,441 (14,001) 16,443 2,066 263,949 233,258 Unconsolidated VIEs: Asset-backed Canadian commercial paper conduit facility 81,916 (3,667) 4,425 211 82,885 70,742 $ 2,690,174 $ (144,550) $ 115,005 $ 8,996 $ 2,669,625 $ 2,181,368 2022 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 $ 2,558,450 $ (130,774) $ 114,254 $ 7,899 $ 2,549,829 $ 2,019,414 Asset-backed U.S. commercial paper conduit facility 474,167 (24,236) 26,874 1,906 478,711 425,794 Unconsolidated VIEs: Asset-backed Canadian commercial paper conduit facility 82,375 (3,452) 4,873 130 83,926 71,785 $ 3,114,992 $ (158,462) $ 146,001 $ 9,935 $ 3,112,466 $ 2,516,993 |
Schedule of Secured Notes With Related Maturity | Debt with a contractual term greater than 12 months is generally classified as long-term and consisted of the following at December 31 (in thousands): 2023 2022 Secured debt: Asset-backed Canadian commercial paper conduit facility $ 70,742 $ 71,785 Asset-backed U.S. commercial paper conduit facility 233,258 425,794 Asset-backed securitization debt 1,884,629 2,028,155 Unamortized discounts and debt issuance costs (7,261) (8,741) 2,181,368 2,516,993 2023 2022 Unsecured notes (at par value): Medium-term notes: Due in 2023, issued February 2018 3.35% — 350,000 Due in 2023, issued May 2020 (a) 4.94% — 695,727 Due in 2024, issued November 2019 (b) 3.14% 662,238 642,210 Due in 2025, issued June 2020 3.35% 700,000 700,000 Due in 2026, issued April 2023 (c) 6.36 % 772,610 — Due in 2027, issued February 2022 3.05% 500,000 500,000 Due in 2028, issued March 2023 6.50 % 700,000 — Unamortized discounts and debt issuance costs (15,710) (8,464) 3,319,138 2,879,473 Senior notes: Due in 2025, issued July 2015 3.50% 450,000 450,000 Due in 2045, issued July 2015 4.625% 300,000 300,000 Unamortized discounts and debt issuance costs (3,921) (4,632) 746,079 745,368 4,065,217 3,624,841 Long-term debt 6,246,585 6,141,834 Current portion of long-term debt, net (1,255,999) (1,684,782) Long-term debt, net $ 4,990,586 $ 4,457,052 (a) €650.0 million par value remeasured to U.S. dollar at December 31, 2022 (b) €600.0 million par value remeasured to U.S. dollar at December 31, 2023 and 2022, respectively (c) €700.0 million par value remeasured to U.S. dollar at December 31, 2023 At December 31, 2023, the Consolidated balance sheets included outstanding balances related to the following secured notes with the related maturity dates and interest rates (in thousands): Issue Date Principal Amount Weighted-Average Rate Contractual Maturity Date September 2023 $500,000 5.79% October 2024 - April 2031 February 2023 $550,000 5.10% March 2024 - June 2030 June 2022 $1,286,262 2.45% April 2028 April 2022 $550,000 2.40% April 2023 - January 2030 August 2021 $575,000 0.42% August 2022 - May 2029 February 2021 $600,000 0.30% February 2022 - September 2028 In addition, outstanding balances related to the following secured notes included in the Consolidated balance sheets at December 31, 2022 were repaid during 2023 (in thousands): Issue Date Principal Amount Weighted-Average Rate Contractual Maturity Date May 2020 $750,178 3.38% April 2028 January 2020 $525,000 1.83% February 2021 - April 2027 June 2019 $525,000 2.37% July 2020 - November 2026 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Recurring Fair Value Measurements – The Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, were as follows (in thousands): 2023 Balance Level 1 Level 2 Assets: Cash equivalents $ 1,067,755 $ 898,000 $ 169,755 Marketable securities 34,079 34,079 — Derivative financial instruments 19,073 — 19,073 $ 1,120,907 $ 932,079 $ 188,828 Liabilities: Derivative financial instruments $ 12,806 $ — $ 12,806 LiveWire warrants 12,319 8,059 4,260 $ 25,125 $ 8,059 $ 17,066 2022 Balance Level 1 Level 2 Assets: Cash equivalents $ 805,629 $ 594,000 $ 211,629 Marketable securities 33,071 33,071 — Derivative financial instruments 8,737 — 8,737 $ 847,437 $ 627,071 $ 220,366 Liabilities: Derivative financial instruments $ 50,261 $ — $ 50,261 LiveWire warrants 8,388 5,500 2,888 $ 58,649 $ 5,500 $ 53,149 |
Schedule 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 at December 31, were as follows (in thousands): 2023 2022 Fair Value Carrying Value Fair Value Carrying Value Assets: Finance receivables, net $ 7,500,263 $ 7,498,265 $ 7,248,353 $ 7,138,438 Liabilities: Deposits, net $ 460,766 $ 447,782 $ 339,981 $ 317,375 Debt: Unsecured commercial paper $ 878,935 $ 878,935 $ 770,468 $ 770,468 Asset-backed U.S. commercial paper conduit facilities $ 233,258 $ 233,258 $ 425,794 $ 425,794 Asset-backed Canadian commercial paper conduit facility $ 70,742 $ 70,742 $ 71,785 $ 71,785 Asset-backed securitization debt $ 1,872,215 $ 1,877,368 $ 1,996,550 $ 2,019,414 Medium-term notes $ 3,308,952 $ 3,319,138 $ 2,760,093 $ 2,879,473 Senior notes $ 674,787 $ 746,079 $ 661,630 $ 745,368 |
Product Warranty and Recall C_2
Product Warranty and Recall Campaigns (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Warranty and Recall Liability | Changes in the Company’s warranty and recall liability were as follows as of December 31 (in thousands): 2023 2022 2021 Balance, beginning of period $ 75,960 $ 61,621 $ 69,208 Warranties issued during the period 45,374 39,466 41,489 Settlements made during the period (67,084) (38,173) (40,015) Recalls and changes to pre-existing warranty liabilities 9,894 13,046 (9,061) Balance, end of period $ 64,144 $ 75,960 $ 61,621 |
Employee Benefit Plans and Ot_2
Employee Benefit Plans and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of obligation and funded status | The changes in the benefit obligation, fair value of plan assets and the funded status of the Company’s pension and SERPA plans and the postretirement healthcare plans as of the Company’s measurement dates of December 31, were as follows (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits 2023 2022 2023 2022 Change in benefit obligation: Benefit obligation, beginning of period $ 1,553,912 $ 2,174,595 $ 210,811 $ 286,301 Service cost 5,174 19,052 3,184 4,642 Pension and SERPA Benefits Postretirement Healthcare Benefits 2023 2022 2023 2022 Interest cost 81,911 61,890 11,089 7,617 Actuarial loss / (gains) 35,608 (561,142) (18,350) (67,903) Plan participant contributions — — 1,790 2,029 Plan amendment — — 12,959 — Benefits paid (106,493) (137,645) (14,977) (16,657) Settlements (1,835) (2,838) — (5,218) Benefit obligation, end of period 1,568,277 1,553,912 206,506 210,811 Change in plan assets: Fair value of plan assets, beginning of period 1,809,543 2,486,467 205,803 262,945 Return on plan assets 198,212 (539,800) 29,211 (48,257) Plan participant contributions — — 1,790 2,029 Benefits paid (105,931) (137,124) (11,637) (10,914) Fair value of plan assets, end of period 1,901,824 1,809,543 225,167 205,803 Funded status of the plan $ 333,547 $ 255,631 $ 18,661 $ (5,008) Funded status as recognized on the Consolidated balance sheets: Pension and postretirement assets $ 343,619 $ 268,317 $ 69,489 $ 51,816 Accrued liabilities (1,129) (1,331) — (224) Pension and postretirement liabilities (8,943) (11,355) (50,828) (56,600) $ 333,547 $ 255,631 $ 18,661 $ (5,008) Amounts included in Accumulated other comprehensive loss, net of tax: Prior service credits $ 2,886 $ 3,461 $ 8,542 $ (1,884) Actuarial losses (gains) 277,825 289,340 (59,631) (39,699) $ 280,711 $ 292,801 $ (51,089) $ (41,583) |
Schedule of amounts recognized in balance sheet | The changes in the benefit obligation, fair value of plan assets and the funded status of the Company’s pension and SERPA plans and the postretirement healthcare plans as of the Company’s measurement dates of December 31, were as follows (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits 2023 2022 2023 2022 Change in benefit obligation: Benefit obligation, beginning of period $ 1,553,912 $ 2,174,595 $ 210,811 $ 286,301 Service cost 5,174 19,052 3,184 4,642 Pension and SERPA Benefits Postretirement Healthcare Benefits 2023 2022 2023 2022 Interest cost 81,911 61,890 11,089 7,617 Actuarial loss / (gains) 35,608 (561,142) (18,350) (67,903) Plan participant contributions — — 1,790 2,029 Plan amendment — — 12,959 — Benefits paid (106,493) (137,645) (14,977) (16,657) Settlements (1,835) (2,838) — (5,218) Benefit obligation, end of period 1,568,277 1,553,912 206,506 210,811 Change in plan assets: Fair value of plan assets, beginning of period 1,809,543 2,486,467 205,803 262,945 Return on plan assets 198,212 (539,800) 29,211 (48,257) Plan participant contributions — — 1,790 2,029 Benefits paid (105,931) (137,124) (11,637) (10,914) Fair value of plan assets, end of period 1,901,824 1,809,543 225,167 205,803 Funded status of the plan $ 333,547 $ 255,631 $ 18,661 $ (5,008) Funded status as recognized on the Consolidated balance sheets: Pension and postretirement assets $ 343,619 $ 268,317 $ 69,489 $ 51,816 Accrued liabilities (1,129) (1,331) — (224) Pension and postretirement liabilities (8,943) (11,355) (50,828) (56,600) $ 333,547 $ 255,631 $ 18,661 $ (5,008) Amounts included in Accumulated other comprehensive loss, net of tax: Prior service credits $ 2,886 $ 3,461 $ 8,542 $ (1,884) Actuarial losses (gains) 277,825 289,340 (59,631) (39,699) $ 280,711 $ 292,801 $ (51,089) $ (41,583) |
Schedule of PBO in excess of fair value of plan assets | The funded status of the qualified pension plan and the SERPA plans are combined above. The SERPA plans had projected benefit obligations (PBO) and accumulated benefit obligations (ABO) in excess of the fair value of plan assets at December 31, as presented below (in thousands): 2023 2022 Plans with PBO in excess of fair value of plan assets: PBO $ 10,072 $ 12,686 Fair value of plan assets $ — $ — Plans with ABO in excess of fair value of plan assets: ABO $ 10,035 $ 12,643 Fair value of plan assets $ — $ — |
Schedule of ABO in excess of fair value of plan assets | The funded status of the qualified pension plan and the SERPA plans are combined above. The SERPA plans had projected benefit obligations (PBO) and accumulated benefit obligations (ABO) in excess of the fair value of plan assets at December 31, as presented below (in thousands): 2023 2022 Plans with PBO in excess of fair value of plan assets: PBO $ 10,072 $ 12,686 Fair value of plan assets $ — $ — Plans with ABO in excess of fair value of plan assets: ABO $ 10,035 $ 12,643 Fair value of plan assets $ — $ — |
Schedule of components of net periodic benefit costs | Components of net periodic benefit costs for the Company's defined benefit plans for the years ended December 31, were as follows (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits 2023 2022 2021 2023 2022 2021 Service cost $ 5,174 $ 19,052 $ 24,570 $ 3,184 $ 4,642 $ 5,147 Interest cost 81,911 61,890 61,988 11,089 7,617 6,505 Expected return on plan assets (146,076) (125,904) (131,494) (17,124) (15,237) (13,978) Amortization of unrecognized: Prior service credit 751 (1,312) (1,247) (665) (2,323) (2,323) Net loss (722) 31,912 67,933 (4,388) 488 1,056 Curtailment (gain) loss — — (10,562) — — — Settlement (gain) loss (759) (1,471) 722 — (1,244) — Net periodic benefit cost $ (59,721) $ (15,833) $ 11,910 $ (7,904) $ (6,057) $ (3,593) |
Schedule of assumptions used to determine net periodic benefit cost | Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost at December 31, were as follows: Pension and SERPA Benefits Postretirement Healthcare Benefits 2023 2022 2021 2023 2022 2021 Assumptions for benefit obligations: Discount rate 5.31 % 5.45 % 2.89 % 5.36 % 5.42 % 2.72 % Rate of compensation increase 4.00 % 4.00 % 3.49 % n/a n/a n/a Assumptions for net periodic benefit cost: Discount rate 5.45 % 2.89 % 2.67 % 5.42 % 2.72 % 2.11 % Expected return on plan assets 6.80 % 5.60 % 6.20 % 7.48 % 6.77 % 6.69 % Rate of compensation increase 4.00 % 3.49 % 3.34 % n/a n/a n/a |
Schedule of allocation of plan assets | The fair values of the Company’s pension plan assets at December 31, 2023 were as follows (in thousands): Balance Level 1 Level 2 Cash and cash equivalents $ 27,730 $ — $ 27,730 Equity holdings: U.S. companies 346,895 346,844 51 Foreign companies 22,425 22,425 — Pooled equity funds 124,853 124,853 — Other 21 21 — 494,194 494,143 51 Fixed-income holdings: U.S. Treasuries 110,767 110,766 — Federal agencies 11,028 — 11,028 Corporate bonds 708,790 — 708,790 Pooled fixed income funds 442,409 55,487 386,922 Foreign bonds 93,034 462 92,572 Municipal bonds 11,486 — 11,486 1,377,514 166,715 1,210,798 Plan assets subject to fair value leveling 1,899,438 $ 660,858 $ 1,238,579 Plan assets measured at net asset value: Private equity investments 794 Real estate investments 1,592 2,386 $ 1,901,824 The fair values of the Company’s postretirement healthcare plan assets at December 31, 2023 were as follows (in thousands): Balance Level 1 Level 2 Cash and cash equivalents $ 2,391 $ — $ 2,391 Equity holdings: U.S. companies 113,135 113,135 — Foreign companies 21,034 21,034 — Pooled equity funds 26,355 26,355 — Other 5 5 — 160,529 160,529 — Fixed-income holdings: U.S. Treasuries 359 359 — Federal agencies 36 — 36 Corporate bonds 2,286 — 2,286 Pooled fixed income funds 44,512 43,248 1,264 Foreign bonds 300 2 298 Municipal bonds 37 — 37 47,530 43,609 3,921 Plan assets subject to fair value leveling 210,450 $ 204,138 $ 6,312 Plan assets measured at net asset value: Private equity investments $ 13,773 Real estate investments 944 $ 225,167 The fair values of the Company’s pension plan assets at December 31, 2022 were as follows (in thousands): Balance Level 1 Level 2 Cash and cash equivalents $ 43,062 $ — $ 43,062 Equity holdings: U.S. companies 537,587 537,548 39 Foreign companies 22,445 22,444 1 Pooled equity funds 241,412 241,412 — Other 35 35 — 801,479 801,439 40 Fixed-income holdings: U.S. Treasuries 94,128 94,128 — Federal agencies 11,054 — 11,054 Corporate bonds 640,875 — 640,875 Pooled fixed income funds 111,649 49,472 62,177 Foreign bonds 93,112 4 93,108 Municipal bonds 10,375 — 10,375 961,193 143,604 817,589 Plan assets subject to fair value leveling 1,805,734 $ 945,043 $ 860,691 Plan assets measured at net asset value: Private equity investments 799 Real estate investments 3,010 3,809 $ 1,809,543 The fair values of the Company’s postretirement healthcare plan assets at December 31, 2022 were as follows (in thousands): Balance Level 1 Level 2 Cash and cash equivalents $ 7,998 $ — $ 7,998 Equity holdings: U.S. companies 95,014 95,014 — Foreign companies 20,784 20,784 — Pooled equity funds 24,181 24,181 — Other 5 5 — 139,984 139,984 — Fixed-income holdings: U.S. Treasuries 287 287 — Federal agencies 34 — 34 Corporate bonds 1,938 — 1,938 Pooled fixed income funds 40,043 39,855 188 Foreign bonds 282 — 282 Municipal bonds 31 — 31 42,615 40,142 2,473 Plan assets subject to fair value leveling 190,597 $ 180,126 $ 10,471 Plan assets measured at net asset value: Limited partnership interests $ 13,502 Real estate investments 1,704 $ 205,803 |
Schedule of weighted average health care cost trend rate | The weighted-average healthcare cost trend rates used in determining the accumulated postretirement benefit obligation of the healthcare plans were as follows: 2023 2022 Healthcare cost trend rate for next year 7.50 % 7.00 % Rate to which the cost trend rate is assumed to decline (the ultimate rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2032 2032 |
Schedule of expected benefit payments for next five years and thereafter | The Company's future expected benefit payments as of December 31, 2023 were as follows (in thousands): Pension Benefits SERPA Benefits Postretirement Healthcare Benefits 2024 $ 115,265 $ 1,159 $ 17,179 2025 $ 114,856 $ 1,119 $ 18,050 2026 $ 116,507 $ 1,070 $ 18,830 2027 $ 116,698 $ 945 $ 19,442 2028 $ 116,234 $ 854 $ 19,930 2029-2033 $ 581,079 $ 3,594 $ 100,332 |
Share-Based Awards (Tables)
Share-Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Assumptions used to calculate the grant date fair value of the performance shares with a relative TSR market condition and the aspirational performance shares, by grant date, were as follows: Performance Share Grants: February 2023 February 2022 May 2021 February 2021 Expected volatility 53.9 % 55.0 % 55.0 % 52.0 % Risk-free interest rate 4.08 % 1.58 % 0.27 % 0.18 % Aspirational Share Grants: August 2022 Expected volatility 54.5 % Risk-free interest rate 3.23 % |
Schedule of Restricted Stock Units and Performance Shares Settled in Stock Transactions | The activity for these awards for the year ended December 31, 2023 was as follows (in thousands, except for per share amounts): Shares & Units Weighted-Average Fair Value Per Share Nonvested, beginning of period 4,560 $ 27 Granted 723 $ 46 Vested (818) $ 38 Forfeited (361) $ 32 Nonvested, end of period 4,104 $ 28 |
Schedule of Restricted Stock Units and Performance Shares Settled in Cash Transactions | The activity for these awards for the year ended December 31, 2023 was as follows (in thousands, except for per share amounts): Units Weighted-Average Fair Value Per Share Nonvested, beginning of period 245 $ 38 Granted 105 $ 48 Vested (112) $ 40 Forfeited (21) $ 36 Nonvested, end of period 217 $ 36 |
Schedule of Stock Option Transactions | The stock option transactions for the year ended December 31, 2023 were as follows (in thousands, except for per share amounts): Options Weighted-Average Exercise Price Outstanding, beginning of period 913 $ 47 Options granted — $ — Exercised — $ — Forfeited (287) $ 59 Outstanding, end of period 626 $ 42 Exercisable, end of period 251 $ 50 |
Schedule of Aggregate Intrinsic Value Related to Options Outstanding, Exercisable and Exercised | The aggregate intrinsic value related to stock options exercised, outstanding and exercisable as of and for the years ended December 31, was as follows (in thousands): 2023 2022 2021 Exercised $ — $ — $ 289 Outstanding $ 105 $ 2,485 $ 530 Exercisable $ — $ — $ — |
Schedule Stock Options Outstanding by Price Range | Stock options outstanding at December 31, 2023 were as follows (options in thousands): Price Range Weighted-Average Options Weighted-Average $30.01 to $40 7.9 500 $ 37 $40.01 to $50 0.0 — $ — $50.01 to $60 0.0 — $ — $60.01 to $70 0.4 126 $ 63 Options outstanding 6.4 626 $ 42 Options exercisable 4.1 251 $ 50 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Changes in Accumulated other comprehensive loss for the years ended December 31, were as follows (in thousands): 2023 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (80,271) $ (10,440) $ (251,218) $ (341,929) Other comprehensive income, before reclassifications 11,845 48,583 34,005 94,433 Income tax expense (313) (11,322) (7,984) (19,619) 11,532 37,261 26,021 74,814 Reclassifications: Net gains on derivative financial instruments — (43,678) — (43,678) Prior service credits (a) — — 86 86 Actuarial gains (a) — — (5,110) (5,110) Settlement gains (a) — — (759) (759) Reclassifications before tax — (43,678) (5,783) (49,461) Income tax benefit — 10,256 1,358 11,614 — (33,422) (4,425) (37,847) Other comprehensive income 11,532 3,839 21,596 36,967 Balance, end of period $ (68,739) $ (6,601) $ (229,622) $ (304,962) 2022 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (44,401) $ (2,005) $ (194,513) $ (240,919) Other comprehensive loss, before reclassifications (32,769) (44,767) (100,154) (177,690) Income tax (expense) benefit (3,101) 9,611 23,516 30,026 (35,870) (35,156) (76,638) (147,664) Reclassifications: Net losses on derivative financial instruments — 33,598 — 33,598 Prior service credits (a) — — (3,635) (3,635) Actuarial losses (a) — — 32,400 32,400 Settlement gains (a) — — (2,715) (2,715) Reclassifications before tax — 33,598 26,050 59,648 Income tax expense — (6,877) (6,117) (12,994) — 26,721 19,933 46,654 Other comprehensive loss (35,870) (8,435) (56,705) (101,010) Balance, end of period $ (80,271) $ (10,440) $ (251,218) $ (341,929) 2021 Foreign currency translation adjustments Derivative financial instruments Pension and postretirement benefit plans Total Balance, beginning of period $ (7,589) $ (46,116) $ (429,712) $ (483,417) Other comprehensive (loss) income, before reclassifications (38,988) (73,207) 251,790 139,595 Income tax benefit (expense) 2,176 15,883 (59,120) (41,061) (36,812) (57,324) 192,670 98,534 Reclassifications: Net losses on derivative financial instruments — 130,609 — 130,609 Prior service credits (a) — — (3,570) (3,570) Actuarial losses (a) — — 68,989 68,989 Curtailment and settlement gains (a) — — (9,840) (9,840) Reclassifications before tax — 130,609 55,579 186,188 Income tax expense — (29,174) (13,050) (42,224) — 101,435 42,529 143,964 Other comprehensive (loss) income (36,812) 44,111 235,199 242,498 Balance, end of period $ (44,401) $ (2,005) $ (194,513) $ (240,919) (a) Amounts reclassified are included in the computation of net periodic benefit cost, discussed further in Note 14. |
Reportable Segments and Geogr_2
Reportable Segments and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Information by Industry Segment | Selected segment information is set forth below for the years ended December 31 (in thousands): 2023 2022 2021 HDMC: Revenue $ 4,844,594 $ 4,887,672 $ 4,504,434 Gross profit 1,566,542 1,527,873 1,299,527 Selling, administrative and engineering expense 905,391 850,786 822,720 Operating income 661,151 677,087 476,807 LiveWire: Revenue 38,298 46,833 35,806 Gross profit (5,956) 2,904 (2,574) Selling, administrative and engineering expense 110,853 88,219 65,608 Operating loss (116,809) (85,315) (68,182) HDFS: Financial services revenue 953,586 820,625 796,068 Financial services expense 718,844 503,119 381,254 Operating income 234,742 317,506 414,814 Operating income $ 779,084 $ 909,278 $ 823,439 Additional segment information is set forth below as of December 31 (in thousands): HDMC LiveWire HDFS Consolidated 2023: Assets $ 3,644,016 $ 266,404 $ 8,230,134 $ 12,140,554 Depreciation and amortization $ 143,355 $ 5,832 $ 8,925 $ 158,112 Capital expenditures $ 188,863 $ 13,462 $ 5,079 $ 207,404 2022: Assets $ 3,254,309 $ 351,422 $ 7,886,745 $ 11,492,476 Depreciation and amortization $ 138,875 $ 4,401 $ 8,666 $ 151,942 Capital expenditures $ 133,191 $ 14,081 $ 4,397 $ 151,669 2021: Assets $ 3,246,340 $ 61,952 $ 7,742,763 $ 11,051,055 Depreciation and amortization $ 151,251 $ 4,718 $ 9,216 $ 165,185 Capital expenditures $ 106,044 $ 9,951 $ 4,186 $ 120,181 |
Schedule of Segment Information by Geographical Locations | Included in the Consolidated financial statements are the following amounts relating to geographic locations for the years ended December 31 (in thousands): 2023 2022 2021 HDMC revenue (a) : United States $ 3,289,227 $ 3,253,875 $ 2,996,471 EMEA 637,492 693,073 703,048 Canada 220,158 216,389 182,230 Japan 200,539 175,292 150,138 Australia and New Zealand 127,352 147,551 134,301 Other countries 369,826 401,492 338,246 $ 4,844,594 $ 4,887,672 $ 4,504,434 LiveWire revenue (a) : United States 31,483 36,256 24,633 International 6,815 10,577 11,173 $ 38,298 $ 46,833 $ 35,806 HDFS revenue (a) : United States $ 922,758 $ 794,912 $ 765,917 Canada 18,220 16,276 18,613 Europe 7,343 6,071 7,464 Other countries 5,265 3,366 4,074 $ 953,586 $ 820,625 $ 796,068 Long-lived assets (b) : United States $ 644,620 $ 611,421 $ 595,375 Thailand 82,197 72,474 81,927 Other countries 4,907 5,991 6,682 87,104 78,465 88,609 $ 731,724 $ 689,886 $ 683,984 (a) Revenue is attributed to geographic regions based on location of customer. (b) Long-lived assets include all long-term assets except those specifically excluded under ASC Topic 280, Segment Reporting , such as deferred income taxes and finance receivables. |
Supplemental Consolidating Da_2
Supplemental Consolidating Data (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Operations | Supplemental consolidating data for 2023 is as follows (in thousands): Year Ended December 31, 2023 Non-Financial Services Entities Financial Services Entities Consolidating Adjustments Consolidated Revenue: Motorcycles and related products $ 4,891,449 $ — $ (8,557) $ 4,882,892 Financial services — 955,810 (2,224) 953,586 4,891,449 955,810 (10,781) 5,836,478 Costs and expenses: Motorcycles and related products cost of goods sold 3,322,306 — — 3,322,306 Financial services interest expense — 332,380 — 332,380 Financial services provision for credit losses — 227,158 — 227,158 Selling, administrative and engineering expense 1,018,670 167,861 (10,981) 1,175,550 4,340,976 727,399 (10,981) 5,057,394 Operating income 550,473 228,411 200 779,084 Other income, net 71,808 — — 71,808 Investment income 246,771 — (200,000) 46,771 Interest expense 30,787 — — 30,787 Income before income taxes 838,265 228,411 (199,800) 866,876 Income tax provision 125,356 46,474 — 171,830 Net income 712,909 181,937 (199,800) 695,046 Less: (income) loss attributable to noncontrolling interests 11,540 — — 11,540 Net income attributable to Harley-Davidson, Inc. $ 724,449 $ 181,937 $ (199,800) $ 706,586 Year Ended December 31, 2022 Non-Financial Services Entities Financial Services Entities Consolidating Adjustments Consolidated Revenue: Motorcycles and related products $ 4,946,005 $ — $ (11,500) $ 4,934,505 Financial services — 822,530 (1,905) 820,625 4,946,005 822,530 (13,405) 5,755,130 Costs and expenses: Motorcycles and related products cost of goods sold 3,403,728 — — 3,403,728 Financial services interest expense — 217,653 — 217,653 Financial services provision for credit losses — 145,133 — 145,133 Selling, administrative and engineering expense 941,312 151,833 (13,807) 1,079,338 4,345,040 514,619 (13,807) 4,845,852 Operating income 600,965 307,911 402 909,278 Other income, net 48,652 — — 48,652 Investment income 204,538 — (200,000) 4,538 Interest expense 31,235 — — 31,235 Income before income taxes 822,920 307,911 (199,598) 931,233 Income tax provision 125,820 66,199 — 192,019 Net income 697,100 241,712 (199,598) 739,214 Less: (income) loss attributable to noncontrolling interests 2,194 — — 2,194 Net income attributable to Harley-Davidson, Inc. $ 699,294 $ 241,712 $ (199,598) $ 741,408 |
Schedule of Balance Sheet | December 31, 2023 Non-Financial Services Entities Financial Services Entities Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,127,400 $ 406,406 $ — $ 1,533,806 Accounts receivable, net 415,004 32 (147,836) 267,200 Finance receivables, net — 2,113,729 — 2,113,729 Inventories, net 929,951 — — 929,951 Restricted cash — 104,642 — 104,642 Other current assets 148,006 73,976 (7,581) 214,401 2,620,361 2,698,785 (155,417) 5,163,729 Finance receivables, net — 5,384,536 — 5,384,536 Property, plant and equipment, net 710,982 20,742 — 731,724 Pension and postretirement assets 413,107 — — 413,107 Goodwill 62,696 — — 62,696 Deferred income taxes 79,151 83,379 (1,346) 161,184 Lease assets 66,166 3,484 — 69,650 Other long-term assets 228,261 39,208 (113,541) 153,928 $ 4,180,724 $ 8,230,134 $ (270,304) $ 12,140,554 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 323,798 $ 173,200 $ (147,836) $ 349,162 Accrued liabilities 509,725 144,622 (7,488) 646,859 Short-term deposits, net — 253,309 — 253,309 Short-term debt — 878,935 — 878,935 Current portion of long-term debt, net — 1,255,999 — 1,255,999 833,523 2,706,065 (155,324) 3,384,264 Long-term deposits, net — 194,473 — 194,473 Long-term debt, net 746,077 4,244,509 — 4,990,586 Lease liabilities 48,433 3,415 — 51,848 Pension and postretirement liabilities 59,772 — — 59,772 Deferred income taxes 30,266 3,248 — 33,514 Other long-term liabilities 150,171 21,725 1,906 173,802 Commitments and contingencies (Note 15) Shareholders’ equity 2,312,482 1,056,699 (116,886) 3,252,295 $ 4,180,724 $ 8,230,134 $ (270,304) $ 12,140,554 December 31, 2022 Non-Financial Services Entities Financial Services Entities Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,021,798 $ 411,377 $ — $ 1,433,175 Accounts receivable, net 369,192 — (116,967) 252,225 Finance receivables, net — 1,782,631 — 1,782,631 Inventories, net 950,960 — — 950,960 Restricted cash — 135,424 — 135,424 Other current assets 138,743 62,037 (4,542) 196,238 2,480,693 2,391,469 (121,509) 4,750,653 Finance receivables, net — 5,355,807 — 5,355,807 Property, plant and equipment, net 665,298 24,588 — 689,886 Pension and postretirement assets 320,133 — — 320,133 Goodwill 62,090 — — 62,090 Deferred income taxes 56,255 79,808 (1,022) 135,041 Lease assets 37,938 5,993 — 43,931 Other long-term assets 213,306 29,080 (107,451) 134,935 $ 3,835,713 $ 7,886,745 $ (229,982) $ 11,492,476 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 359,584 $ 135,385 $ (116,967) $ 378,002 Accrued liabilities 498,570 126,405 (4,030) 620,945 Short-term deposits, net — 79,710 — 79,710 Short-term debt — 770,468 — 770,468 Current portion of long-term debt, net — 1,684,782 — 1,684,782 858,154 2,796,750 (120,997) 3,533,907 Long-term deposits, net — 237,665 — 237,665 Long-term debt, net 745,368 3,711,684 — 4,457,052 Lease liabilities 20,860 5,917 — 26,777 Pension and postretirement liabilities 67,955 — — 67,955 Deferred income taxes 28,180 1,348 — 29,528 Other long-term liabilities 161,231 69,542 2,011 232,784 Commitments and contingencies (Note 15) Shareholders’ equity 1,953,965 1,063,839 (110,996) 2,906,808 $ 3,835,713 $ 7,886,745 $ (229,982) $ 11,492,476 |
Schedule of Cash Flows | Year Ended December 31, 2023 Non-Financial Services Entities Financial Services Entities Consolidating Adjustments Consolidated Cash flows from operating activities: Net income $ 712,909 $ 181,937 $ (199,800) $ 695,046 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 149,187 8,925 — 158,112 Amortization of deferred loan origination costs — 85,018 — 85,018 Amortization of financing origination fees 709 12,499 — 13,208 Provision for long-term employee benefits (67,624) — — (67,624) Employee benefit plan contributions and payments (5,736) — — (5,736) Stock compensation expense 79,311 3,590 — 82,901 Net change in wholesale finance receivables related to sales — — (387,743) (387,743) Provision for credit losses — 227,158 — 227,158 Deferred income taxes (26,720) (3,663) 324 (30,059) Other, net (18,480) (21,033) (200) (39,713) Changes in current assets and liabilities: Accounts receivable, net (42,312) — 30,869 (11,443) Finance receivables - accrued interest and other — (339) — (339) Inventories, net 21,257 — — 21,257 Accounts payable and accrued liabilities (21,957) 67,635 (17,108) 28,570 Other current assets (11,283) (5,482) 3,039 (13,726) 56,352 374,308 (370,819) 59,841 Net cash provided by operating activities 769,261 556,245 (570,619) 754,887 Cash flows from investing activities: Capital expenditures (202,325) (5,079) — (207,404) Origination of finance receivables — (7,284,431) 3,410,889 (3,873,542) Collections on finance receivables — 6,611,092 (3,040,270) 3,570,822 Other investing activities (4,680) — 2,500 (2,180) Net cash used by investing activities (207,005) (678,418) 373,119 (512,304) Year Ended December 31, 2023 Non-Financial Services Entities Financial Services Entities Consolidating Adjustments Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 1,446,304 — 1,446,304 Repayments of medium-term notes — (1,056,680) — (1,056,680) Proceeds from securitization debt — 1,045,547 — 1,045,547 Repayments of securitization debt — (1,193,526) — (1,193,526) Borrowings of asset-backed commercial paper — 42,429 — 42,429 Repayments of asset-backed commercial paper — (237,370) — (237,370) Net increase in unsecured commercial paper — 107,146 — 107,146 Net increase in deposits — 129,855 — 129,855 Dividends paid (96,310) (200,000) 200,000 (96,310) Repurchase of common stock (363,987) — — (363,987) Other financing activities 1,946 2,500 (2,500) 1,946 Net cash (used) provided by financing activities (458,351) 86,205 197,500 (174,646) Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,697 — — 1,697 Net increase (decrease) in cash, cash equivalents and restricted cash $ 105,602 $ (35,968) $ — $ 69,634 Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash, beginning of period $ 1,021,798 $ 557,379 $ — $ 1,579,177 Net decrease in cash, cash equivalents and restricted cash 105,602 (35,968) — 69,634 Cash, cash equivalents and restricted cash, end of period $ 1,127,400 $ 521,411 $ — $ 1,648,811 Year Ended December 31, 2022 Non-Financial Services Entities Financial Services Entities Consolidating Adjustments Consolidated Cash flows from operating activities: Net income $ 697,100 $ 241,712 $ (199,598) $ 739,214 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 143,276 8,666 — 151,942 Amortization of deferred loan origination costs — 94,914 — 94,914 Amortization of financing origination fees 700 14,405 — 15,105 Provision for long-term employee benefits (21,891) — — (21,891) Employee benefit plan contributions and payments (14,320) — — (14,320) Stock compensation expense 50,954 3,399 — 54,353 Net change in wholesale finance receivables related to sales — — (198,623) (198,623) Provision for credit losses — 145,133 — 145,133 Deferred income taxes (11,988) (3,925) (23) (15,936) Other, net (5,745) (6,880) (402) (13,027) Changes in current assets and liabilities: Accounts receivable, net (96,826) — 14,441 (82,385) Finance receivables - accrued interest and other — 414 — 414 Inventories, net (254,170) — — (254,170) Accounts payable and accrued liabilities (6,840) 27,069 (15,726) 4,503 Other current assets (54,516) (3,559) 1,310 (56,765) (271,366) 279,636 (199,023) (190,753) Net cash provided by operating activities 425,734 521,348 (398,621) 548,461 Cash flows from investing activities: Capital expenditures (147,272) (4,397) — (151,669) Origination of finance receivables — (7,960,123) 3,401,289 (4,558,834) Collections on finance receivables — 7,137,669 (3,202,668) 3,935,001 Other investing activities 2,491 — — 2,491 Net cash used by investing activities (144,781) (826,851) 198,621 (773,011) Year Ended December 31, 2022 Non-Financial Services Entities Financial Services Entities Consolidating Adjustments Consolidated Cash flows from financing activities: Proceeds from issuance of medium-term notes — 495,785 — 495,785 Repayments of medium-term notes — (950,000) — (950,000) Proceeds from securitization debt — 1,826,891 — 1,826,891 Repayments of securitization debt — (1,442,860) — (1,442,860) Borrowings of asset-backed commercial paper — 448,255 — 448,255 Repayments of asset-backed commercial paper — (302,922) — (302,922) Net increase in unsecured commercial paper — 16,003 — 16,003 Net increase in deposits — 26,605 — 26,605 Dividends paid (93,180) (200,000) 200,000 (93,180) Repurchase of common stock (338,627) — — (338,627) Cash received from business combination 114,068 — — 114,068 Other financing activities (1,985) — — (1,985) Net cash (used) provided by financing activities (319,724) (82,243) 200,000 (201,967) Effect of exchange rate changes on cash, cash equivalents and restricted cash (17,636) (1,889) — (19,525) Net decrease in cash, cash equivalents and restricted cash $ (56,407) $ (389,635) $ — $ (446,042) Cash, cash equivalents and restricted cash: Cash, cash equivalents and restricted cash, beginning of period $ 1,078,205 $ 947,014 $ — $ 2,025,219 Net decrease in cash, cash equivalents and restricted cash (56,407) (389,635) — (446,042) Cash, cash equivalents and restricted cash, end of period $ 1,021,798 $ 557,379 $ — $ 1,579,177 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Sep. 26, 2022 USD ($) | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Property, Plant and Equipment | ||||
Number of reportable segments | segment | 3 | |||
Pre-tax gain (loss) from foreign currency remeasurements | $ 14.7 | $ 26.2 | $ 22 | |
Allowance for doubtful accounts receivable | 2.1 | 2.9 | ||
Other inventories | 447.5 | 425 | ||
Research and development expenses | 159.3 | 158.6 | 175.1 | |
Advertising costs | $ 131 | $ 105.6 | $ 107.6 | |
LiveWire | ||||
Property, Plant and Equipment | ||||
Proceeds from divestiture of business | $ 294 | |||
Payments to acquire business | 180 | |||
Kwang Yang Motor Co., Ltd | LiveWire | ||||
Property, Plant and Equipment | ||||
Payments to acquire business | 100 | |||
AEA-Bridges Impact Corp | LiveWire | ||||
Property, Plant and Equipment | ||||
Payments to acquire business | $ 14 | |||
Buildings | ||||
Property, Plant and Equipment | ||||
Useful lives of property, plant and equipment (in years) | 30 years | |||
Building and land improvements | ||||
Property, Plant and Equipment | ||||
Useful lives of property, plant and equipment (in years) | 7 years | |||
Machinery and equipment | Minimum | ||||
Property, Plant and Equipment | ||||
Useful lives of property, plant and equipment (in years) | 3 years | |||
Machinery and equipment | Maximum | ||||
Property, Plant and Equipment | ||||
Useful lives of property, plant and equipment (in years) | 10 years | |||
Software | Minimum | ||||
Property, Plant and Equipment | ||||
Useful lives of property, plant and equipment (in years) | 3 years | |||
Software | Maximum | ||||
Property, Plant and Equipment | ||||
Useful lives of property, plant and equipment (in years) | 7 years |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue | |||
Revenue from contract with customer, excluding assessed tax | $ 4,882,892 | $ 4,934,505 | $ 4,540,240 |
Revenue not from contract with customer | 953,586 | 820,625 | 796,068 |
Total revenue | 5,836,478 | 5,755,130 | 5,336,308 |
HDMC | |||
Disaggregation of Revenue | |||
Revenue from contract with customer, excluding assessed tax | 4,844,594 | 4,887,672 | 4,504,434 |
LiveWire | |||
Disaggregation of Revenue | |||
Revenue from contract with customer, excluding assessed tax | 38,298 | 46,833 | 35,806 |
HDFS | |||
Disaggregation of Revenue | |||
Revenue not from contract with customer | 953,586 | 820,625 | 796,068 |
Motorcycles | HDMC | |||
Disaggregation of Revenue | |||
Revenue from contract with customer, excluding assessed tax | 3,798,977 | 3,787,484 | 3,468,689 |
Parts and accessories | HDMC | |||
Disaggregation of Revenue | |||
Revenue from contract with customer, excluding assessed tax | 698,095 | 731,645 | 740,893 |
Apparel | HDMC | |||
Disaggregation of Revenue | |||
Revenue from contract with customer, excluding assessed tax | 244,333 | 271,107 | 228,011 |
Licensing | HDMC | |||
Disaggregation of Revenue | |||
Revenue from contract with customer, excluding assessed tax | 28,599 | 39,423 | 37,790 |
Other | HDMC | |||
Disaggregation of Revenue | |||
Revenue from contract with customer, excluding assessed tax | 74,590 | 58,013 | 29,051 |
Interest income | HDFS | |||
Disaggregation of Revenue | |||
Revenue not from contract with customer | 802,078 | 693,615 | 671,708 |
Other | HDFS | |||
Disaggregation of Revenue | |||
Revenue not from contract with customer | $ 151,508 | $ 127,010 | $ 124,360 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue recognized over remaining contract term | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue recognized over remaining contract term | |
HDMC | Licensing | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Sale payment terms | 30 days |
HDMC | Licensing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue recognized over remaining contract term | 4 years |
HDFS | Other | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue recognized over remaining contract term | 4 years |
Minimum | Motorcycles | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Sale payment terms | 30 days |
Maximum | Motorcycles | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Sale payment terms | 120 days |
Revenue - Contract Liabilities
Revenue - Contract Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Change in Contract with Customer, Asset and Liability [Abstract] | ||
Balance, beginning of period | $ 44,100 | $ 40,092 |
Balance, end of period | $ 47,091 | $ 44,100 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Unearned revenue to be recognized | $ 26.7 | $ 27.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue recognized over remaining contract term | 1 year | |
Revenue, remaining performance obligation period | $ 23.4 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue recognized over remaining contract term | ||
Revenue, remaining performance obligation period | $ 23.7 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 125,875 | $ 139,423 | $ 134,111 |
State | 22,340 | 20,367 | 14,508 |
Foreign | 53,674 | 48,165 | 28,266 |
Total Current | 201,889 | 207,955 | 176,885 |
Deferred: | |||
Federal | (18,781) | (12,313) | (2,169) |
State | (6,209) | (7,761) | (3,795) |
Foreign | (5,069) | 4,138 | (1,708) |
Total Deferred | (30,059) | (15,936) | (7,672) |
Total Current and Deferred | $ 171,830 | $ 192,019 | $ 169,213 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 614,713 | $ 750,793 | $ 698,578 |
Foreign | 252,163 | 180,440 | 120,659 |
Income before income taxes | $ 866,876 | $ 931,233 | $ 819,237 |
Income Taxes - Provision for _2
Income Taxes - Provision for Income Tax Rate to Statutory Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Provision at statutory rate | $ 182,044 | $ 195,553 | $ 172,040 |
State taxes, net of federal benefit | 21,659 | 19,223 | 16,568 |
Foreign rate differential | 7,887 | 3,620 | 4,303 |
Foreign derived intangible income | (8,669) | (8,187) | 0 |
Research and development credit | (23,130) | (18,809) | (8,046) |
Unrecognized tax benefits including interest and penalties | (9,210) | (11,793) | (6,554) |
Valuation allowance adjustments | 7,345 | 6,714 | (1,928) |
State credits | (8,035) | (6,954) | (5,403) |
Global intangible low-taxed income | 474 | 1,607 | 1,143 |
Return to provision adjustments | 1,057 | (6,318) | (8,500) |
Executive compensation limitation | 8,712 | 4,893 | 3,104 |
Other foreign inclusions | 1,563 | 16,562 | 34 |
Tax incentives | (12,996) | (7,202) | (1,307) |
Other | 3,129 | 3,110 | 3,759 |
Total Current and Deferred | $ 171,830 | $ 192,019 | $ 169,213 |
Income Taxes - Principal Compon
Income Taxes - Principal Components of the Company's Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets: | ||
Accruals not yet tax deductible | $ 152,288 | $ 133,349 |
Stock compensation | 12,995 | 11,616 |
Net operating loss and research & development tax credit carryforwards | 68,809 | 63,517 |
Amortization of research and experimental costs | 78,169 | 43,034 |
Other | 66,749 | 55,800 |
Deferred tax assets gross | 379,010 | 307,316 |
Valuation allowance | (48,516) | (40,878) |
Deferred tax assets net | 330,494 | 266,438 |
Deferred income tax liabilities: | ||
Depreciation, tax in excess of book | (57,641) | (49,889) |
Pension and postretirement healthcare plan obligations | (82,682) | (58,843) |
Withholding tax | (29,904) | (23,632) |
Other | (32,597) | (28,561) |
Deferred tax liabilities net | (202,824) | (160,925) |
Total | $ 127,670 | $ 105,513 |
Income Taxes - Schedule of Gros
Income Taxes - Schedule of Gross State Operating Loss Carryforwards (Details) - State and Local Jurisdiction - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 296,405 | $ 268,303 |
2031 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 238,682 | 219,726 |
2032 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 12 | 24 |
2033 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 46 | 46 |
2034 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 108 | 109 |
2035 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 1,085 | 553 |
2036 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 60 | 60 |
2037 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 187 | 195 |
2038 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 824 | 820 |
2039 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 11,285 | 9,375 |
2040 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 34,354 | 31,879 |
2041 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 2,135 | 2,135 |
2042 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 347 | 458 |
Indefinite | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 7,280 | $ 2,923 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Tax Credit Carryforward | |||
Deferred tax assets, operating loss and tax credit carryforwards | $ 8,000 | ||
Valuation allowance | 48,516 | $ 40,878 | |
Unrecognized tax benefits affecting effective tax rate | 16,500 | 27,100 | |
Interest and penalties associated with unrecognized tax benefits (Operations) | 8,700 | 5,600 | $ 2,600 |
Interest and penalties associated with unrecognized tax benefits (Balance Sheet) | 8,600 | 17,400 | |
State and Local Jurisdiction | |||
Tax Credit Carryforward | |||
Deferred tax assets, operating loss and tax credit carryforwards | 59,300 | ||
Net operating loss carryforwards | 296,405 | 268,303 | |
Valuation allowance | 32,700 | ||
Increase in valuation allowance for deferred income tax asset | 7,300 | ||
Foreign Tax Authority | |||
Tax Credit Carryforward | |||
Foreign tax holiday | $ 13,000 | $ 7,200 | |
Foreign tax holiday (per share) | $ 0.09 | $ 0.04 | |
Net operating loss carryforwards | $ 9,500 | ||
Valuation allowance | 7,800 | ||
Operating loss carryforward, increase in valuation allowance | 300 | ||
Wisconsin Research and Development Credit | State and Local Jurisdiction | |||
Tax Credit Carryforward | |||
Net capital loss carryforwards | $ 53,200 |
Income Taxes - Changes in Gross
Income Taxes - Changes in Gross Liability for Unrecognized Tax Benefits Excluding Interest and Penalties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits, beginning of period | $ 32,029 | $ 44,856 |
Increase in unrecognized tax benefits for tax positions taken in a prior period | 3,159 | 373 |
Decrease in unrecognized tax benefits for tax positions taken in a prior period | (10,444) | (8,885) |
Increase in unrecognized tax benefits for tax positions taken in the current period | 870 | 3,158 |
Statute lapses | 0 | (2,753) |
Settlements with taxing authorities | (7,400) | (4,720) |
Unrecognized tax benefits, end of period | $ 18,214 | $ 32,029 |
Capital Stock and Earnings Pe_3
Capital Stock and Earnings Per Share - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Preferred stock shares authorized (in shares) | 2,000,000 | ||
Preferred stock stated value per share (in dollars per share) | $ 1 | ||
Preferred stock, shares outstanding | 0 | ||
Common stock stated value per share (in dollars per share) | $ 0.01 | ||
Treasury stock acquired | $ 367,191 | $ 338,627 | $ 11,623 |
Decrease for tax withholding obligation | $ 14,000 | $ 14,200 | $ 11,600 |
Treasury stock, shares, acquired from employees | 300,000 | 400,000 | 300,000 |
Cash dividends per share (in dollars per share) | $ 0.66 | $ 0.63 | $ 0.60 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 1,000,000 | 1,900,000 | 500,000 |
Share Repurchase Plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Treasury stock acquired | $ 350,000 | $ 324,500 | |
Stock repurchased (in shares) | 10,200,000 | 8,400,000 | 0 |
Capital Stock and Earnings Pe_4
Capital Stock and Earnings Per Share - Share Information (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Common stock shares: | ||
Authorized (in shares) | 800,000,000 | 800,000,000 |
Issued (in shares) | 171,218,640 | 170,400,212 |
Outstanding (in shares) | 136,312,009 | 145,862,632 |
Treasury stock shares (in shares) | 34,906,631 | 24,537,580 |
Capital Stock and Earnings Pe_5
Capital Stock and Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income attributable to Harley-Davidson, Inc. | $ 706,586 | $ 741,408 | $ 650,024 |
Weighted Average Number of Shares Outstanding Reconciliation | |||
Basic weighted-average shares outstanding (in shares) | 142,378 | 148,012 | 153,747 |
Effect of dilutive securities – employee stock compensation plan (in shares) | 2,725 | 1,339 | 1,233 |
Diluted weighted-average shares outstanding (in shares) | 145,103 | 149,351 | 154,980 |
Basic (in dollars per share) | $ 4.96 | $ 5.01 | $ 4.23 |
Diluted (in dollars per share) | $ 4.87 | $ 4.96 | $ 4.19 |
Additional Balance Sheet and _3
Additional Balance Sheet and Cash Flow Information - Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Mutual funds | $ 34,079 | $ 33,071 |
Additional Balance Sheet and _4
Additional Balance Sheet and Cash Flow Information - Inventories, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Raw materials and work in process | $ 389,221 | $ 331,380 |
Inventory at lower of FIFO cost or net realizable value | 1,055,029 | 1,067,460 |
Excess of FIFO over LIFO cost | (125,078) | (116,500) |
Total inventories, net | 929,951 | 950,960 |
Obsolescence reserves deducted from FIFO cost | 110,200 | 84,600 |
Motorcycle finished goods | ||
Inventory [Line Items] | ||
Inventory, finished goods, net of inventory valuation adjustment | 514,964 | 549,041 |
Parts and accessories and apparel | ||
Inventory [Line Items] | ||
Inventory, finished goods, net of inventory valuation adjustment | $ 150,844 | $ 187,039 |
Additional Balance Sheet and _5
Additional Balance Sheet and Cash Flow Information - Property, Plant and Equipment, at Cost (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 2,954,825 | $ 2,884,948 |
Accumulated depreciation | (2,223,101) | (2,195,062) |
Total property, plant and equipment, net | 731,724 | 689,886 |
Land and related improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 66,939 | 71,360 |
Buildings and related improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 431,215 | 411,859 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 1,491,448 | 1,507,224 |
Software | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 722,213 | 705,013 |
Total property, plant and equipment, net | 75,300 | 59,200 |
Construction in progress | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 243,010 | $ 189,492 |
Additional Balance Sheet and _6
Additional Balance Sheet and Cash Flow Information - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Payroll, employee benefits and related expenses | $ 101,955 | $ 108,980 |
Sales incentive programs | 116,167 | 50,298 |
Warranty and recalls | 41,375 | 46,707 |
Interest | 84,313 | 55,670 |
Tax-related accruals | 38,219 | 51,730 |
Contract liability | 23,357 | 17,615 |
Leases | 18,685 | 16,208 |
Fair value of derivative financial instruments | 12,806 | 26,022 |
Other | 209,982 | 247,715 |
Total accrued liabilities | $ 646,859 | $ 620,945 |
Additional Balance Sheet and _7
Additional Balance Sheet and Cash Flow Information - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Offsetting [Abstract] | ||
Short-term deposits, net | $ 447.8 | $ 317.4 |
Additional Balance Sheet and _8
Additional Balance Sheet and Cash Flow Information - Certificates of Deposit (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
2024 | $ 253,720 |
2025 | 61,002 |
2026 | 79,678 |
2027 | 54,158 |
Thereafter | 0 |
Future maturities | 448,558 |
Unamortized fees | (776) |
Total | $ 447,782 |
Additional Balance Sheet and _9
Additional Balance Sheet and Cash Flow Information - Reconciliation of Net Income (Loss) to Net Cash Provided by Operating Activities of Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 695,046 | $ 739,214 | $ 650,024 |
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||
Depreciation and amortization | 158,112 | 151,942 | 165,185 |
Amortization of deferred loan origination costs | 85,018 | 94,914 | 86,115 |
Amortization of financing origination fees | 13,208 | 15,105 | 13,810 |
Provision for long-term employee benefits | (67,624) | (21,891) | 8,317 |
Employee benefit plan contributions and payments | (5,736) | (14,320) | (17,133) |
Stock compensation expense | 82,901 | 54,353 | 42,156 |
Net change in wholesale finance receivables related to sales | (387,743) | (198,623) | 89,001 |
Provision for credit losses | 227,158 | 145,133 | 25,049 |
Deferred income taxes | (30,059) | (15,936) | (7,672) |
Other, net | (39,713) | (13,027) | (9,985) |
Changes in current assets and liabilities: | |||
Accounts receivable, net | (11,443) | (82,385) | (53,463) |
Finance receivables – accrued interest and other | (339) | 414 | 13,316 |
Inventories, net | 21,257 | (254,170) | (207,550) |
Accounts payable and accrued liabilities | 28,570 | 4,503 | 173,548 |
Other current assets | (13,726) | (56,765) | 4,983 |
Total change in current assets and liabilities | 59,841 | (190,753) | 325,677 |
Net cash provided by operating activities | 754,887 | 548,461 | 975,701 |
Supplemental Cash Flow Information [Abstract] | |||
Interest | 290,467 | 231,651 | 191,663 |
Income taxes | $ 237,658 | $ 244,374 | $ 155,579 |
Finance Receivables - Additiona
Finance Receivables - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Length of economic forecast | 2 years | |
Length of mean reversion process | 3 years | |
Receivables past due and accruing interest | $ 67,480 | $ 61,950 |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Approved but unfunded retail loans | $ 223,200 | 189,100 |
Threshold period past due to be charged-off | 120 days | |
Reversal of accrued interest against interest income | $ 27,500 | 19,100 |
Receivables past due and accruing interest | 67,300 | 62,000 |
Wholesale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unused lines of credit, wholesale | 1,340,000 | $ 1,440,000 |
Reversal of accrued interest against interest income | $ 0 | |
Texas | Finance receivables | Geographic Concentration Risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk (as a percent) | 11% | |
California | Finance receivables | Geographic Concentration Risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk (as a percent) | 10% |
Finance Receivables - Contractu
Finance Receivables - Contractual Maturities of Finance Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2024 | $ 2,180,764 | |
2025 | 1,283,523 | |
2026 | 1,455,856 | |
2027 | 1,555,622 | |
2028 | 1,118,108 | |
Thereafter | 286,358 | |
Total | 7,880,231 | $ 7,497,149 |
United States | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2024 | 2,103,636 | |
2025 | 1,249,110 | |
2026 | 1,418,130 | |
2027 | 1,514,263 | |
2028 | 1,103,316 | |
Thereafter | 286,358 | |
Total | 7,674,813 | |
Canada | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2024 | 77,128 | |
2025 | 34,413 | |
2026 | 37,726 | |
2027 | 41,359 | |
2028 | 14,792 | |
Thereafter | 0 | |
Total | $ 205,418 |
Finance Receivables - Finance R
Finance Receivables - Finance Receivables, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables | $ 7,880,231 | $ 7,497,149 | ||
Allowance for credit losses | (381,966) | (358,711) | $ (339,379) | $ (390,936) |
Total allowance for credit losses | 7,498,265 | 7,138,438 | ||
Retail | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables | 6,818,699 | 6,748,201 | ||
Allowance for credit losses | (367,037) | (345,275) | (326,320) | (371,738) |
Retail | United States | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables | 6,657,998 | 6,582,316 | ||
Retail | Canada | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables | 160,701 | 165,885 | ||
Wholesale | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables | 1,061,532 | 748,948 | ||
Allowance for credit losses | (14,929) | (13,436) | $ (13,059) | $ (19,198) |
Wholesale | United States | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables | 1,016,815 | 724,126 | ||
Wholesale | Canada | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables | $ 44,717 | $ 24,822 |
Finance Receivables - Changes i
Finance Receivables - Changes in Allowance for Credit Losses on Finance Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss | |||
Balance, beginning of period | $ 358,711 | $ 339,379 | $ 390,936 |
Provision for credit losses | 227,158 | 145,133 | 25,049 |
Charge-offs | (263,915) | (176,718) | (122,637) |
Recoveries | 60,012 | 50,917 | 46,031 |
Balance, end of period | 381,966 | 358,711 | 339,379 |
Retail | |||
Financing Receivable, Allowance for Credit Loss | |||
Balance, beginning of period | 345,275 | 326,320 | 371,738 |
Provision for credit losses | 225,665 | 144,756 | 31,338 |
Charge-offs | (263,915) | (176,718) | (122,637) |
Recoveries | 60,012 | 50,917 | 45,881 |
Balance, end of period | 367,037 | 345,275 | 326,320 |
Wholesale | |||
Financing Receivable, Allowance for Credit Loss | |||
Balance, beginning of period | 13,436 | 13,059 | 19,198 |
Provision for credit losses | 1,493 | 377 | (6,289) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 150 |
Balance, end of period | $ 14,929 | $ 13,436 | $ 13,059 |
Finance Receivables - Recorded
Finance Receivables - Recorded Investment in Retail Finance Receivables, by Credit Quality Indicator (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Recorded Investment | |||
Total | $ 7,880,231 | $ 7,497,149 | |
Current YTD period gross charge-offs: | |||
Total | 263,915 | 176,718 | $ 122,637 |
United States | |||
Financing Receivable, Recorded Investment | |||
Total | 7,674,813 | ||
Canada | |||
Financing Receivable, Recorded Investment | |||
Total | 205,418 | ||
Retail | |||
Financing Receivable, Recorded Investment | |||
Year 1 | 2,637,198 | 3,039,349 | |
Year 2 | 2,043,433 | 1,841,057 | |
Year 3 | 1,176,286 | 892,848 | |
Year 4 | 526,884 | 546,562 | |
Year 5 | 280,805 | 271,617 | |
After year 5 | 154,093 | 156,768 | |
Total | 6,818,699 | 6,748,201 | |
Current YTD period gross charge-offs: | |||
Year 1 | 20,574 | ||
Year 2 | 103,391 | ||
Year 3 | 75,078 | ||
Year 4 | 31,368 | ||
Year 5 | 18,366 | ||
After year 5 | 15,138 | ||
Total | 263,915 | 176,718 | $ 122,637 |
Retail | United States | |||
Financing Receivable, Recorded Investment | |||
Year 1 | 2,572,883 | 2,971,999 | |
Year 2 | 1,998,720 | 1,798,860 | |
Year 3 | 1,150,467 | 866,839 | |
Year 4 | 512,436 | 528,380 | |
Year 5 | 273,031 | 263,099 | |
After year 5 | 150,461 | 153,139 | |
Total | 6,657,998 | 6,582,316 | |
Current YTD period gross charge-offs: | |||
Year 1 | 20,047 | ||
Year 2 | 102,387 | ||
Year 3 | 74,212 | ||
Year 4 | 30,896 | ||
Year 5 | 18,088 | ||
After year 5 | 14,655 | ||
Total | 260,285 | ||
Retail | Canada | |||
Financing Receivable, Recorded Investment | |||
Year 1 | 64,315 | 67,350 | |
Year 2 | 44,713 | 42,197 | |
Year 3 | 25,819 | 26,009 | |
Year 4 | 14,448 | 18,182 | |
Year 5 | 7,774 | 8,518 | |
After year 5 | 3,632 | 3,629 | |
Total | 160,701 | 165,885 | |
Current YTD period gross charge-offs: | |||
Year 1 | 527 | ||
Year 2 | 1,004 | ||
Year 3 | 866 | ||
Year 4 | 472 | ||
Year 5 | 278 | ||
After year 5 | 483 | ||
Total | 3,630 | ||
Retail | Super prime | United States | |||
Financing Receivable, Recorded Investment | |||
Year 1 | 1,066,321 | 1,118,198 | |
Year 2 | 729,339 | 612,890 | |
Year 3 | 376,474 | 276,492 | |
Year 4 | 151,004 | 159,550 | |
Year 5 | 70,627 | 69,652 | |
After year 5 | 27,013 | 26,701 | |
Total | 2,420,778 | 2,263,483 | |
Retail | Super prime | Canada | |||
Financing Receivable, Recorded Investment | |||
Year 1 | 48,705 | 49,033 | |
Year 2 | 31,733 | 30,090 | |
Year 3 | 17,744 | 17,553 | |
Year 4 | 9,241 | 12,215 | |
Year 5 | 4,521 | 4,975 | |
After year 5 | 1,524 | 1,527 | |
Total | 113,468 | 115,393 | |
Retail | Prime | United States | |||
Financing Receivable, Recorded Investment | |||
Year 1 | 1,173,463 | 1,433,141 | |
Year 2 | 993,417 | 887,817 | |
Year 3 | 584,305 | 425,401 | |
Year 4 | 259,995 | 260,458 | |
Year 5 | 139,011 | 135,454 | |
After year 5 | 78,880 | 79,611 | |
Total | 3,229,071 | 3,221,882 | |
Retail | Prime | Canada | |||
Financing Receivable, Recorded Investment | |||
Year 1 | 13,764 | 16,094 | |
Year 2 | 11,434 | 10,705 | |
Year 3 | 7,336 | 7,283 | |
Year 4 | 4,390 | 5,098 | |
Year 5 | 2,728 | 3,068 | |
After year 5 | 1,838 | 1,787 | |
Total | 41,490 | 44,035 | |
Retail | Sub-prime | United States | |||
Financing Receivable, Recorded Investment | |||
Year 1 | 333,099 | 420,660 | |
Year 2 | 275,964 | 298,153 | |
Year 3 | 189,688 | 164,946 | |
Year 4 | 101,437 | 108,372 | |
Year 5 | 63,393 | 57,993 | |
After year 5 | 44,568 | 46,827 | |
Total | 1,008,149 | 1,096,951 | |
Retail | Sub-prime | Canada | |||
Financing Receivable, Recorded Investment | |||
Year 1 | 1,846 | 2,223 | |
Year 2 | 1,546 | 1,402 | |
Year 3 | 739 | 1,173 | |
Year 4 | 817 | 869 | |
Year 5 | 525 | 475 | |
After year 5 | 270 | 315 | |
Total | $ 5,743 | $ 6,457 |
Finance Receivables - Recorde_2
Finance Receivables - Recorded Investment of Retail and Wholesale Finance Receivables by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment | ||
Total | $ 7,880,231 | $ 7,497,149 |
Wholesale | ||
Financing Receivable, Recorded Investment | ||
Year 1 | 975,999 | 714,238 |
Year 2 | 67,045 | 11,478 |
Year 3 | 5,107 | 6,646 |
Year 4 | 4,962 | 8,457 |
Year 5 | 7,791 | 7,938 |
After year 5 | 628 | 191 |
Total | 1,061,532 | 748,948 |
Wholesale | Non-Performing | ||
Financing Receivable, Recorded Investment | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
After year 5 | 0 | 0 |
Total | 0 | 0 |
Wholesale | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
After year 5 | 0 | 0 |
Total | 0 | 0 |
Wholesale | Substandard | ||
Financing Receivable, Recorded Investment | ||
Year 1 | 10,934 | 0 |
Year 2 | 258 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 5 | 0 |
After year 5 | 0 | 0 |
Total | 11,197 | 0 |
Wholesale | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Year 1 | 641 | 0 |
Year 2 | 30 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
After year 5 | 0 | 0 |
Total | 671 | 0 |
Wholesale | Medium Risk | ||
Financing Receivable, Recorded Investment | ||
Year 1 | 2,905 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
After year 5 | 0 | 0 |
Total | 2,905 | 0 |
Wholesale | Low Risk | ||
Financing Receivable, Recorded Investment | ||
Year 1 | 961,519 | 714,238 |
Year 2 | 66,757 | 11,478 |
Year 3 | 5,107 | 6,646 |
Year 4 | 4,962 | 8,457 |
Year 5 | 7,786 | 7,938 |
After year 5 | 628 | 191 |
Total | $ 1,046,759 | $ 748,948 |
Finance Receivables - Aging of
Finance Receivables - Aging of Past Due Finance Receivables Including Non-Accrual Status Finance Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due | ||
Financing receivable, gross | $ 7,880,231 | $ 7,497,149 |
Current | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 7,576,903 | 7,222,144 |
Total Past Due | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 303,328 | 275,005 |
30 To 59 Days Past Due | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 168,790 | 152,565 |
60 To 89 Days Past Due | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 67,058 | 60,490 |
Greater than 90 Days Past Due | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 67,480 | 61,950 |
Retail | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 6,818,699 | 6,748,201 |
Retail | Current | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 6,516,342 | 6,473,462 |
Retail | Total Past Due | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 302,357 | 274,739 |
Retail | 30 To 59 Days Past Due | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 168,027 | 152,343 |
Retail | 60 To 89 Days Past Due | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 67,033 | 60,446 |
Retail | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 67,297 | 61,950 |
Wholesale | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 1,061,532 | 748,948 |
Wholesale | Current | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 1,060,561 | 748,682 |
Wholesale | Total Past Due | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 971 | 266 |
Wholesale | 30 To 59 Days Past Due | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 763 | 222 |
Wholesale | 60 To 89 Days Past Due | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | 25 | 44 |
Wholesale | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due | ||
Financing receivable, gross | $ 183 | $ 0 |
Finance Receivables - Wholesale
Finance Receivables - Wholesale and Retail Receivables Accruing Interest and are Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due | ||
Receivables past due and accruing interest | $ 67,480 | $ 61,950 |
United States | ||
Financing Receivable, Past Due | ||
Receivables past due and accruing interest | 66,119 | 60,945 |
Canada | ||
Financing Receivable, Past Due | ||
Receivables past due and accruing interest | $ 1,361 | $ 1,005 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill | ||
Balance, beginning of period | $ 62,090 | $ 63,177 |
Currency translation | 606 | (1,087) |
Balance, end of period | 62,696 | 62,090 |
HDMC | ||
Goodwill | ||
Balance, beginning of period | 53,763 | 54,850 |
Currency translation | 606 | (1,087) |
Balance, end of period | 54,369 | 53,763 |
LiveWire | ||
Goodwill | ||
Balance, beginning of period | 8,327 | 8,327 |
Currency translation | 0 | 0 |
Balance, end of period | $ 8,327 | $ 8,327 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill | |||
Amortization of intangible assets | $ 900,000 | $ 800,000 | $ 400,000 |
HDFS | |||
Goodwill | |||
Intangible assets | $ 0 | $ 0 | |
Minimum | |||
Goodwill | |||
Estimated useful life (years) | 3 years | ||
Maximum | |||
Goodwill | |||
Estimated useful life (years) | 20 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net | ||
Gross carrying amount | $ 12,475 | $ 10,864 |
Accumulated amortization | (5,447) | (4,472) |
Total other intangible assets | $ 7,028 | $ 6,392 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2024 | $ 1,157 | |
2025 | 1,105 | |
2026 | 1,024 | |
2027 | 622 | |
2028 | 622 | |
Thereafter | 2,498 | |
Total other intangible assets | $ 7,028 | $ 6,392 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Schedule of Derivative Instrument Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | |
Cross-currency swaps | Other Noncurrent Liabilities | Cash Flow Hedging | ||
Derivatives, Fair Value | ||
Liabilities | $ 24,200 | |
Interest rate caps | Other Noncurrent Assets | ||
Derivatives, Fair Value | ||
Assets | $ 500 | 2,400 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value | ||
Notional Value | 1,961,290 | 1,918,981 |
Assets | 18,609 | 6,054 |
Liabilities | 12,488 | 49,951 |
Designated as Hedging Instrument | Foreign currency contracts | Cash Flow Hedging | ||
Derivatives, Fair Value | ||
Notional Value | 540,088 | 550,160 |
Assets | 3,529 | 6,054 |
Liabilities | 9,194 | 13,440 |
Designated as Hedging Instrument | Commodity contracts | Cash Flow Hedging | ||
Derivatives, Fair Value | ||
Notional Value | 642 | 1,361 |
Assets | 0 | 0 |
Liabilities | 134 | 410 |
Designated as Hedging Instrument | Cross-currency swaps | Cash Flow Hedging | ||
Derivatives, Fair Value | ||
Notional Value | 1,420,560 | 1,367,460 |
Assets | 15,080 | 0 |
Liabilities | 3,160 | 36,101 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value | ||
Notional Value | 623,496 | 1,069,630 |
Assets | 464 | 2,683 |
Liabilities | 318 | 310 |
Not Designated as Hedging Instrument | Commodity contracts | ||
Derivatives, Fair Value | ||
Notional Value | 5,637 | 10,803 |
Assets | 0 | 310 |
Liabilities | 318 | 310 |
Not Designated as Hedging Instrument | Interest rate caps | ||
Derivatives, Fair Value | ||
Notional Value | 617,859 | 1,058,827 |
Assets | 464 | 2,373 |
Liabilities | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial 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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Gain/(Loss) Recognized in OCI | $ 48,583 | $ (44,767) | $ (73,207) |
Gain/(Loss) Reclassified from AOCL into Income | 43,678 | (33,598) | (130,609) |
Foreign currency contracts | |||
Derivative [Line Items] | |||
Gain/(Loss) Recognized in OCI | 1,859 | 26,093 | 29,602 |
Gain/(Loss) Reclassified from AOCL into Income | 1,301 | 46,077 | (12,531) |
Commodity contracts | |||
Derivative [Line Items] | |||
Gain/(Loss) Recognized in OCI | (654) | 312 | 345 |
Gain/(Loss) Reclassified from AOCL into Income | (930) | 703 | 313 |
Cross-currency swaps | |||
Derivative [Line Items] | |||
Gain/(Loss) Recognized in OCI | 48,019 | (71,172) | (103,551) |
Gain/(Loss) Reclassified from AOCL into Income | 43,812 | (79,952) | (115,200) |
Treasury rate lock contracts | |||
Derivative [Line Items] | |||
Gain/(Loss) Recognized in OCI | 1,139 | 0 | 0 |
Gain/(Loss) Reclassified from AOCL into Income | (53) | (426) | (502) |
Interest rate swaps | |||
Derivative [Line Items] | |||
Gain/(Loss) Recognized in OCI | 0 | 0 | 397 |
Gain/(Loss) Reclassified from AOCL into Income | 0 | 0 | (2,689) |
Swap rate lock contracts | |||
Derivative [Line Items] | |||
Gain/(Loss) Recognized in OCI | (1,780) | 0 | 0 |
Gain/(Loss) Reclassified from AOCL into Income | $ (452) | $ 0 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities - Amount of Gains and Losses Recognized in Income Related to Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Motorcycles and related products cost of goods sold | $ 3,322,306 | $ 3,403,728 | $ 3,243,287 |
Selling, administrative and engineering expense | 1,175,550 | 1,079,338 | 1,051,589 |
Interest expense | 30,787 | 31,235 | 30,972 |
Financial services interest expense | 332,380 | 217,653 | 192,944 |
Expected loss to be reclassified in next twelve months | (23,200) | ||
Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Gain/(Loss) Reclassified from AOCL into Income | 43,678 | (33,598) | (130,609) |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency contracts | |||
Derivative [Line Items] | |||
Gain/(Loss) Reclassified from AOCL into Income | 1,301 | 46,077 | (12,531) |
Cash Flow Hedging | Designated as Hedging Instrument | Commodity contracts | |||
Derivative [Line Items] | |||
Gain/(Loss) Reclassified from AOCL into Income | (930) | 703 | 313 |
Cash Flow Hedging | Designated as Hedging Instrument | Cross-currency swaps | |||
Derivative [Line Items] | |||
Gain/(Loss) Reclassified from AOCL into Income | 43,812 | (79,952) | (115,200) |
Cash Flow Hedging | Designated as Hedging Instrument | Treasury rate lock contracts | |||
Derivative [Line Items] | |||
Gain/(Loss) Reclassified from AOCL into Income | (53) | (426) | (502) |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | |||
Derivative [Line Items] | |||
Gain/(Loss) Reclassified from AOCL into Income | 0 | 0 | (2,689) |
Cash Flow Hedging | Designated as Hedging Instrument | Swap rate lock contracts | |||
Derivative [Line Items] | |||
Gain/(Loss) Reclassified from AOCL into Income | (452) | 0 | 0 |
Cash Flow Hedging | Motorcycles and related products cost of goods sold | Designated as Hedging Instrument | Foreign currency contracts | |||
Derivative [Line Items] | |||
Gain/(Loss) Reclassified from AOCL into Income | 1,301 | 46,077 | (12,531) |
Cash Flow Hedging | Motorcycles and related products cost of goods sold | Designated as Hedging Instrument | Commodity contracts | |||
Derivative [Line Items] | |||
Gain/(Loss) Reclassified from AOCL into Income | (930) | 703 | 313 |
Cash Flow Hedging | Selling, administrative & engineering expense | Designated as Hedging Instrument | Cross-currency swaps | |||
Derivative [Line Items] | |||
Gain/(Loss) Reclassified from AOCL into Income | 43,812 | (79,952) | (115,200) |
Cash Flow Hedging | Interest expense | Designated as Hedging Instrument | Treasury rate lock contracts | |||
Derivative [Line Items] | |||
Gain/(Loss) Reclassified from AOCL into Income | (363) | (363) | (363) |
Cash Flow Hedging | Financial services interest expense | Designated as Hedging Instrument | Treasury rate lock contracts | |||
Derivative [Line Items] | |||
Gain/(Loss) Reclassified from AOCL into Income | 310 | $ (63) | $ (139) |
Cash Flow Hedging | Financial services interest expense | Designated as Hedging Instrument | Swap rate lock contracts | |||
Derivative [Line Items] | |||
Gain/(Loss) Reclassified from AOCL into Income | $ (452) |
Derivative Financial Instrume_6
Derivative Financial Instruments and Hedging Activities - Gain Loss Recognized in Income on Hedged Derivatives (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income | $ (3,209) | $ 9,524 | $ (95) |
Foreign currency contracts | Cost of Sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income | 125 | 7,730 | (2,374) |
Commodity contracts | Cost of Sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income | (1,426) | 1,264 | 1,966 |
Interest rate caps | Cost of Sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income | $ (1,908) | $ 530 | $ 313 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description | |||
Renewal term | 5 years | ||
Termination period | 1 year | ||
Operating lease expense | $ 26 | $ 25.3 | $ 24.9 |
Variable lease cost | $ 3.2 | $ 3.3 | $ 4.4 |
Minimum | |||
Lessee, Lease, Description | |||
Remaining lease terms | 1 year | ||
Maximum | |||
Lessee, Lease, Description | |||
Remaining lease terms | 6 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Lease assets | $ 69,650 | $ 43,931 |
Liabilities | ||
Accrued liabilities | 18,685 | 16,208 |
Lease liabilities | 51,848 | 26,777 |
Lease liabilities | $ 70,533 | $ 42,985 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Operating Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, to be Paid | ||
2024 | $ 21,804 | |
2025 | 18,194 | |
2026 | 13,071 | |
2027 | 8,067 | |
2028 | 7,074 | |
Thereafter | 12,050 | |
Future lease payments | 80,260 | |
Present value discount | (9,727) | |
Lease liability | $ 70,533 | $ 42,985 |
Leases - Other Lease Informatio
Leases - Other Lease Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flow, Operating Activities, Lessee | ||
Cash outflows for amounts included in the measurement of lease liabilities | $ 20,622 | $ 19,776 |
ROU assets obtained in exchange for lease obligations, net of modifications | $ 45,703 | $ 16,257 |
Weighted-average remaining lease term (in years) | 4 years 8 months 12 days | 3 years 3 months 25 days |
Weighted-average discount rate | 5% | 2.60% |
Debt - Debt With Contractual Te
Debt - Debt With Contractual Term Less Than One Year (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Short-term debt | $ 878,935 | $ 770,468 |
Unsecured commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 878,935 | $ 770,468 |
Debt - Debt With a Contractual
Debt - Debt With a Contractual Term Greater Than One Year (Details) $ in Thousands, € in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) |
Debt Instrument | ||||
Unamortized discounts and debt issuance costs | $ (26,892) | |||
Long-term debt, net | 6,246,585 | $ 6,141,834 | ||
Current portion of long-term debt, net | (1,255,999) | (1,684,782) | ||
Long-term debt, net | 4,990,586 | 4,457,052 | ||
Secured Debt | ||||
Debt Instrument | ||||
Unamortized discounts and debt issuance costs | (7,261) | (8,741) | ||
Long-term debt, net | 2,181,368 | 2,516,993 | ||
Secured Debt | Asset-backed Canadian commercial paper conduit facility | ||||
Debt Instrument | ||||
Long-term debt, gross | 70,742 | 71,785 | ||
Secured Debt | Asset-backed U.S. commercial paper conduit facility | ||||
Debt Instrument | ||||
Long-term debt, gross | 233,258 | 425,794 | ||
Secured Debt | Asset-backed securitization debt | ||||
Debt Instrument | ||||
Long-term debt, gross | 1,884,629 | 2,028,155 | ||
Medium-term Notes | ||||
Debt Instrument | ||||
Unamortized discounts and debt issuance costs | (15,710) | (8,464) | ||
Long-term debt, net | 3,319,138 | 2,879,473 | ||
Medium-term Notes | Due in 2023, issued February 2018 | ||||
Debt Instrument | ||||
Long-term debt, gross | $ 0 | 350,000 | ||
Stated interest rate | 3.35% | 3.35% | ||
Medium-term Notes | Due in 2023, issued May 2020 | ||||
Debt Instrument | ||||
Long-term debt, gross | $ 0 | € 650 | 695,727 | € 650 |
Stated interest rate | 4.94% | 4.94% | ||
Medium-term Notes | Due in 2024, issued November 2019 | ||||
Debt Instrument | ||||
Long-term debt, gross | $ 662,238 | € 600 | 642,210 | € 600 |
Stated interest rate | 3.14% | 3.14% | ||
Medium-term Notes | Due in 2025, issued June 2020 | ||||
Debt Instrument | ||||
Long-term debt, gross | $ 700,000 | 700,000 | ||
Stated interest rate | 3.35% | 3.35% | ||
Medium-term Notes | Due in 2026, issued April 2023 | ||||
Debt Instrument | ||||
Long-term debt, gross | $ 772,610 | € 700 | 0 | |
Stated interest rate | 6.36% | 6.36% | ||
Medium-term Notes | Due in 2027, issued February 2022 | ||||
Debt Instrument | ||||
Long-term debt, gross | $ 500,000 | 500,000 | ||
Stated interest rate | 3.05% | 3.05% | ||
Medium-term Notes | Due in 2028, issued March 2023 | ||||
Debt Instrument | ||||
Long-term debt, gross | $ 700,000 | 0 | ||
Stated interest rate | 6.50% | 6.50% | ||
Senior Notes | ||||
Debt Instrument | ||||
Unamortized discounts and debt issuance costs | $ (3,921) | (4,632) | ||
Long-term debt, net | 746,079 | 745,368 | ||
Senior Notes | Due in 2025, issued July 2015 | ||||
Debt Instrument | ||||
Long-term debt, gross | $ 450,000 | 450,000 | ||
Stated interest rate | 3.50% | 3.50% | ||
Senior Notes | Due in 2045, issued July 2015 | ||||
Debt Instrument | ||||
Long-term debt, gross | $ 300,000 | 300,000 | ||
Stated interest rate | 4.625% | 4.625% | ||
Senior Unsecured Debt | ||||
Debt Instrument | ||||
Long-term debt, net | $ 4,065,217 | $ 3,624,841 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term debt (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Long-Term Debt, Fiscal Year Maturity | |
2024 | $ 2,135,319 |
2025 | 1,853,515 |
2026 | 1,389,750 |
2027 | 728,936 |
2028 | 744,892 |
Thereafter | 300,000 |
Future principal payments | 7,152,412 |
Unamortized discounts and debt issuance costs | (26,892) |
Total future payments | $ 7,125,520 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2023 | Jun. 30, 2022 | Apr. 30, 2022 | Feb. 28, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument | ||||||
Debt instrument, covenant, debt to allowance and equity ratio, maximum | 10 | |||||
Debt instrument, covenant, debt to equity ratio, maximum | 0.7 | |||||
Four Point Five Percent Medium-Term Notes due 2021 | Medium-term Notes | ||||||
Debt Instrument | ||||||
Extinguishment of debt, amount | $ 550,000,000 | |||||
Extinguishment of debt, stated interest rate | 4.05% | |||||
Two Point Fifty-five Percent Medium-Term Notes Due 2022 | Medium-term Notes | ||||||
Debt Instrument | ||||||
Extinguishment of debt, amount | $ 400,000,000 | |||||
Extinguishment of debt, stated interest rate | 2.55% | |||||
Due in 2023, issued February 2018 | Medium-term Notes | ||||||
Debt Instrument | ||||||
Extinguishment of debt, amount | $ 350,000,000 | |||||
Extinguishment of debt, stated interest rate | 3.35% | |||||
Due in 2023, issued May 2020 | Medium-term Notes | ||||||
Debt Instrument | ||||||
Extinguishment of debt, amount | $ 650,000,000 | |||||
Extinguishment of debt, stated interest rate | 4.94% | |||||
Line of Credit | Credit Facility Maturing April 2027, Five Year Maturity | ||||||
Debt Instrument | ||||||
Debt instrument, term | 5 years | |||||
Line of credit, maximum borrowing capacity | $ 710,000,000 | |||||
Line of Credit | Credit Facility Maturing April 2025, Five Year Term | ||||||
Debt Instrument | ||||||
Debt instrument, term | 5 years | |||||
Line of credit, maximum borrowing capacity | $ 710,000,000 | |||||
Line of Credit | Global Credit Facilities | ||||||
Debt Instrument | ||||||
Debt instrument, term | 5 years | |||||
Unsecured commercial paper | ||||||
Debt Instrument | ||||||
Debt instrument, term | 365 days | |||||
Weighted-average interest rate of commercial paper | 6.18% | 5.28% |
Asset-Backed Financing - Assets
Asset-Backed Financing - Assets and Liabilities of Variable Interest Entities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finance receivables | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | $ 2,690,174 | $ 3,114,992 |
Transfers accounts for as secured borrowings, assets, allowance for loan losses, carrying amount | (144,550) | (158,462) |
Finance receivables | Asset-backed securitizations | Consolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 2,348,817 | 2,558,450 |
Transfers accounts for as secured borrowings, assets, allowance for loan losses, carrying amount | (126,882) | (130,774) |
Finance receivables | Asset-backed U.S. commercial paper conduit facility | Consolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 259,441 | 474,167 |
Transfers accounts for as secured borrowings, assets, allowance for loan losses, carrying amount | (14,001) | (24,236) |
Finance receivables | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 81,916 | 82,375 |
Transfers accounts for as secured borrowings, assets, allowance for loan losses, carrying amount | (3,667) | (3,452) |
Restricted cash | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 115,005 | 146,001 |
Restricted cash | Asset-backed securitizations | Consolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 94,137 | 114,254 |
Restricted cash | Asset-backed U.S. commercial paper conduit facility | Consolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 16,443 | 26,874 |
Restricted cash | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 4,425 | 4,873 |
Other assets | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 8,996 | 9,935 |
Other assets | Asset-backed securitizations | Consolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 6,719 | 7,899 |
Other assets | Asset-backed U.S. commercial paper conduit facility | Consolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 2,066 | 1,906 |
Other assets | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 211 | 130 |
Total assets | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 2,669,625 | 3,112,466 |
Total assets | Asset-backed securitizations | Consolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 2,322,791 | 2,549,829 |
Total assets | Asset-backed U.S. commercial paper conduit facility | Consolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 263,949 | 478,711 |
Total assets | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, assets, carrying amount | 82,885 | 83,926 |
Asset-backed debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, liabilities, carrying amount | 2,181,368 | 2,516,993 |
Asset-backed debt | Asset-backed securitizations | Consolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, liabilities, carrying amount | 1,877,368 | 2,019,414 |
Asset-backed debt | Asset-backed U.S. commercial paper conduit facility | Consolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, liabilities, carrying amount | 233,258 | 425,794 |
Asset-backed debt | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs: | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounts for as secured borrowings, liabilities, carrying amount | $ 70,742 | $ 71,785 |
Asset-Backed Financing - Additi
Asset-Backed Financing - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 CAD ($) | Dec. 31, 2023 USD ($) spe | Dec. 31, 2022 USD ($) spe | Dec. 31, 2021 USD ($) | Nov. 30, 2023 CAD ($) | Nov. 30, 2022 CAD ($) | |
Variable Interest Entity [Line Items] | ||||||
Proceeds from securitization debt | $ 1,045,547,000 | $ 1,826,891,000 | $ 1,169,910,000 | |||
Financial services interest expense | 332,380,000 | 217,653,000 | $ 192,944,000 | |||
Asset-backed securitization | U.S. Line of Credit | ||||||
Variable Interest Entity [Line Items] | ||||||
Transfers on finance receivables | $ 1,200,000,000 | $ 2,180,000,000 | ||||
Number of special purpose entities | spe | 2 | 2 | ||||
Secured Debt | Consolidated VIEs: | ||||||
Variable Interest Entity [Line Items] | ||||||
Weighted average interest rate at date of issuance | 4.97% | 3.82% | ||||
Financial services interest expense | $ 91,800,000 | $ 51,600,000 | ||||
Secured Debt | Asset-backed U.S. commercial paper conduit facility | Line of Credit | Consolidated VIEs: | ||||||
Variable Interest Entity [Line Items] | ||||||
Weighted average interest rate at date of issuance | 7.27% | 6.28% | ||||
Financial services interest expense | $ 21,800,000 | $ 15,600,000 | ||||
Secured Debt | Asset-backed U.S. commercial paper conduit facility | U.S. Line of Credit | Consolidated VIEs: | ||||||
Variable Interest Entity [Line Items] | ||||||
Debt instrument, term | 4 years | |||||
Amount transferred to receivables | $ 0 | 467,900,000 | ||||
Proceeds from transfer of finance receivables | $ 404,100,000 | |||||
Secured Debt | Asset-backed Canadian commercial paper conduit facility | Unconsolidated VIEs: | ||||||
Variable Interest Entity [Line Items] | ||||||
Weighted average interest rate at date of issuance | 4.13% | 2.85% | ||||
Financial services interest expense | $ 2,800,000 | $ 1,900,000 | ||||
Secured Debt | Asset-backed Canadian commercial paper conduit facility | Foreign Line of Credit | Unconsolidated VIEs: | ||||||
Variable Interest Entity [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 125,000,000 | |||||
Debt instrument, term | 5 years | |||||
Amount transferred to receivables | 51,400,000 | 53,100,000 | ||||
Proceeds from transfer of finance receivables | 42,400,000 | 44,200,000 | ||||
VIE, maximum loss exposure, amount | 12,100,000 | |||||
Secured Debt | Asset-backed U.S. Commercial Paper conduit facility VIE, combined facilities | U.S. Line of Credit | Consolidated VIEs: | ||||||
Variable Interest Entity [Line Items] | ||||||
Line of credit, outstanding | 125,800,000 | |||||
Revolving credit facility addition to incremental borrowings | 300,000,000 | $ 300,000,000 | ||||
Secured Debt | Asset-backed U.S. Commercial Paper conduit facility VIE, combined facilities | U.S. Line of Credit | Unconsolidated VIEs: | ||||||
Variable Interest Entity [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 1,500,000,000 | |||||
Secured Debt | Asset-backed securities, securitized loans and receivables | Asset-backed securitization | Consolidated VIEs: | SPE | ||||||
Variable Interest Entity [Line Items] | ||||||
Secured notes issued | 1,050,000,000 | 1,840,000,000 | ||||
Proceeds from securitization debt | $ 1,040,000,000 | $ 1,830,000,000 |
Asset-Backed Financing - Schedu
Asset-Backed Financing - Schedule of Secured Notes With Related Maturity (Details) - Variable Interest Entity, Primary Beneficiary - Secured Debt - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument | ||
Weighted average interest rate at date of issuance | 4.97% | 3.82% |
Secured Notes Issued September 2023 | ||
Debt Instrument | ||
Company issued secured notes | $ 500,000,000 | |
Weighted average interest rate at date of issuance | 5.79% | |
Secured Notes Issued February 2023 | ||
Debt Instrument | ||
Company issued secured notes | $ 550,000,000 | |
Weighted average interest rate at date of issuance | 5.10% | |
Secured Notes Issued June 2022 | ||
Debt Instrument | ||
Company issued secured notes | $ 1,286,262,000 | |
Weighted average interest rate at date of issuance | 2.45% | |
Secured Notes Issued April 2022 | ||
Debt Instrument | ||
Company issued secured notes | $ 550,000,000 | |
Weighted average interest rate at date of issuance | 2.40% | |
Secured Notes Issued August 2021 | ||
Debt Instrument | ||
Company issued secured notes | $ 575,000,000 | |
Weighted average interest rate at date of issuance | 0.42% | |
Secured Notes Issued February 2021 | ||
Debt Instrument | ||
Company issued secured notes | $ 600,000,000 | |
Weighted average interest rate at date of issuance | 0.30% | |
Secured Notes Issued May 2020 | ||
Debt Instrument | ||
Company issued secured notes | $ 750,178,000 | |
Weighted average interest rate at date of issuance | 3.38% | |
Secured Notes Issued January 2020 | ||
Debt Instrument | ||
Company issued secured notes | $ 525,000,000 | |
Weighted average interest rate at date of issuance | 1.83% | |
Secured Notes Issued June 2019 | ||
Debt Instrument | ||
Company issued secured notes | $ 525,000,000 | |
Weighted average interest rate at date of issuance | 2.37% |
Fair Value - Summary of Assets
Fair Value - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | $ 1,067,755 | $ 805,629 |
Marketable securities | 34,079 | 33,071 |
Derivative financial instruments | 19,073 | 8,737 |
Assets, fair value | 1,120,907 | 847,437 |
Derivative financial instruments | 12,806 | 50,261 |
LiveWire warrants | 12,319 | 8,388 |
Liabilities, fair value disclosure | 25,125 | 58,649 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 898,000 | 594,000 |
Marketable securities | 34,079 | 33,071 |
Derivative financial instruments | 0 | 0 |
Assets, fair value | 932,079 | 627,071 |
Derivative financial instruments | 0 | 0 |
LiveWire warrants | 8,059 | 5,500 |
Liabilities, fair value disclosure | 8,059 | 5,500 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 169,755 | 211,629 |
Marketable securities | 0 | 0 |
Derivative financial instruments | 19,073 | 8,737 |
Assets, fair value | 188,828 | 220,366 |
Derivative financial instruments | 12,806 | 50,261 |
LiveWire warrants | 4,260 | 2,888 |
Liabilities, fair value disclosure | $ 17,066 | $ 53,149 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Adjustment | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Repossessed inventory at the lower of cost or net realizable value | $ 18.6 | $ 7.5 |
Level 2 | Estimate of Fair Value Measurement | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Repossessed inventory at the lower of cost or net realizable value | $ 28 | $ 20.7 |
LiveWire | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Number of securities called by each warrant (in shares) | 1 | |
Livewire common stock (in usd per share) | $ 11.50 | |
Warrant term (in years) | 5 years |
Fair Value - Summary of Fair Va
Fair Value - Summary of Fair Value and Carrying Value of Company Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Estimate of Fair Value Measurement | ||
Assets: | ||
Finance receivables, net | $ 7,500,263 | $ 7,248,353 |
Liabilities: | ||
Deposits, net | 460,766 | 339,981 |
Estimate of Fair Value Measurement | Secured Debt | Asset-backed U.S. commercial paper conduit facility | ||
Debt: | ||
Long-term debt, fair value | 233,258 | 425,794 |
Estimate of Fair Value Measurement | Secured Debt | Asset-backed Canadian commercial paper conduit facility | ||
Debt: | ||
Long-term debt, fair value | 70,742 | 71,785 |
Estimate of Fair Value Measurement | Secured Debt | Asset-backed securitization debt | ||
Debt: | ||
Long-term debt, fair value | 1,872,215 | 1,996,550 |
Estimate of Fair Value Measurement | Medium-term Notes | ||
Debt: | ||
Long-term debt, fair value | 3,308,952 | 2,760,093 |
Estimate of Fair Value Measurement | Senior Notes | ||
Debt: | ||
Long-term debt, fair value | 674,787 | 661,630 |
Estimate of Fair Value Measurement | Unsecured commercial paper | ||
Debt: | ||
Short-term debt, fair value | 878,935 | 770,468 |
Carrying Value | ||
Assets: | ||
Finance receivables, net | 7,498,265 | 7,138,438 |
Liabilities: | ||
Deposits, net | 447,782 | 317,375 |
Carrying Value | Secured Debt | Asset-backed U.S. commercial paper conduit facility | ||
Debt: | ||
Long-term debt, fair value | 233,258 | 425,794 |
Carrying Value | Secured Debt | Asset-backed Canadian commercial paper conduit facility | ||
Debt: | ||
Long-term debt, fair value | 70,742 | 71,785 |
Carrying Value | Secured Debt | Asset-backed securitization debt | ||
Debt: | ||
Long-term debt, fair value | 1,877,368 | 2,019,414 |
Carrying Value | Medium-term Notes | ||
Debt: | ||
Long-term debt, fair value | 3,319,138 | 2,879,473 |
Carrying Value | Senior Notes | ||
Debt: | ||
Long-term debt, fair value | 746,079 | 745,368 |
Carrying Value | Unsecured commercial paper | ||
Debt: | ||
Short-term debt, fair value | $ 878,935 | $ 770,468 |
Product Warranty and Recall C_3
Product Warranty and Recall Campaigns - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Product Information [Line Items] | ||||
Liability for recall campaigns | $ 64,144 | $ 75,960 | $ 61,621 | $ 69,208 |
Recall Campaign | ||||
Product Information [Line Items] | ||||
Liability for recall campaigns | $ 18,900 | $ 29,700 | $ 16,900 | |
Motorcycles | All Countries, Excluding Japan | ||||
Product Information [Line Items] | ||||
Standard product warranty, period | 2 years | |||
Motorcycles | Japan | ||||
Product Information [Line Items] | ||||
Standard product warranty, period | 3 years | |||
Battery for electric motorcycles | ||||
Product Information [Line Items] | ||||
Unlimited warranty, period | 5 years | |||
Parts and accessories and apparel | ||||
Product Information [Line Items] | ||||
Standard product warranty, period | 1 year |
Product Warranty and Recall C_4
Product Warranty and Recall Campaigns - Warranty and Recall Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance, beginning of period | $ 75,960 | $ 61,621 | $ 69,208 |
Warranties issued during the period | 45,374 | 39,466 | 41,489 |
Settlements made during the period | (67,084) | (38,173) | (40,015) |
Recalls and changes to pre-existing warranty liabilities | 9,894 | 13,046 | (9,061) |
Balance, end of period | $ 64,144 | $ 75,960 | $ 61,621 |
Employee Benefit Plans and Ot_3
Employee Benefit Plans and Other Postretirement Benefits - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure | ||||
Retirement age threshold | 55 years | |||
Postretirement benefits eligibility, years of service requirement | 10 years | |||
Company contributions | $ 30.5 | $ 30.9 | $ 19.4 | |
Pension and SERPA Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Expected return on plan assets | 6.80% | 5.60% | 6.20% | |
Accumulated benefit obligation | $ 1,570 | $ 1,550 | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Investment in company common stock (in shares) | 1,273,592 | 1,273,592 | ||
Pension Benefits | Equity Holdings | ||||
Defined Benefit Plan Disclosure | ||||
Target plan asset allocation | 30% | |||
Pension Benefits | Fixed Income Securities and Cash and Cash Equivalents | ||||
Defined Benefit Plan Disclosure | ||||
Target plan asset allocation | 70% | |||
Pension Benefits | Defined Benefit Plan, Equity Securities, Common Stock | ||||
Defined Benefit Plan Disclosure | ||||
Investment in company common stock - value | $ 46.9 | $ 53 | ||
Pension Benefits | Scenario, Forecast | ||||
Defined Benefit Plan Disclosure | ||||
Expected return on plan assets | 6.20% | |||
Postretirement Healthcare Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Expected return on plan assets | 7.48% | 6.77% | 6.69% | |
Postretirement Healthcare Benefits | Equity Holdings | ||||
Defined Benefit Plan Disclosure | ||||
Target plan asset allocation | 68% | |||
Postretirement Healthcare Benefits | Fixed Income Securities and Cash and Cash Equivalents | ||||
Defined Benefit Plan Disclosure | ||||
Target plan asset allocation | 32% | |||
Postretirement Healthcare Benefits | Scenario, Forecast | ||||
Defined Benefit Plan Disclosure | ||||
Expected return on plan assets | 7.50% |
Employee Benefit Plans and Ot_4
Employee Benefit Plans and Other Postretirement Benefits - Schedule of Obligation and Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in plan assets: | |||
Pension and postretirement assets | $ 413,107 | $ 320,133 | |
Pension and SERPA Benefits | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of period | 1,553,912 | 2,174,595 | |
Service cost | 5,174 | 19,052 | $ 24,570 |
Interest cost | 81,911 | 61,890 | 61,988 |
Actuarial loss / (gains) | 35,608 | (561,142) | |
Plan participant contributions | 0 | 0 | |
Plan amendments | 0 | 0 | |
Benefits paid | (106,493) | (137,645) | |
Settlements | (1,835) | (2,838) | |
Benefit obligation, end of period | 1,568,277 | 1,553,912 | 2,174,595 |
Change in plan assets: | |||
Fair value of plan assets, beginning of period | 1,809,543 | 2,486,467 | |
Return on plan assets | 198,212 | (539,800) | |
Plan participant contributions | 0 | 0 | |
Benefits paid | (105,931) | (137,124) | |
Fair value of plan assets, end of period | 1,901,824 | 1,809,543 | 2,486,467 |
Funded status of the plan | 333,547 | 255,631 | |
Pension and postretirement assets | 343,619 | 268,317 | |
Accrued liabilities | (1,129) | (1,331) | |
Pension and postretirement liabilities | (8,943) | (11,355) | |
Total benefits included in balance sheet | 333,547 | 255,631 | |
Prior service credits | 2,886 | 3,461 | |
Actuarial losses (gains) | 277,825 | 289,340 | |
Amounts included in other comprehensive income, net of tax | 280,711 | 292,801 | |
Postretirement Healthcare Benefits | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of period | 210,811 | 286,301 | |
Service cost | 3,184 | 4,642 | 5,147 |
Interest cost | 11,089 | 7,617 | 6,505 |
Actuarial loss / (gains) | (18,350) | (67,903) | |
Plan participant contributions | 1,790 | 2,029 | |
Plan amendments | 12,959 | 0 | |
Benefits paid | (14,977) | (16,657) | |
Settlements | 0 | (5,218) | |
Benefit obligation, end of period | 206,506 | 210,811 | 286,301 |
Change in plan assets: | |||
Fair value of plan assets, beginning of period | 205,803 | 262,945 | |
Return on plan assets | 29,211 | (48,257) | |
Plan participant contributions | 1,790 | 2,029 | |
Benefits paid | (11,637) | (10,914) | |
Fair value of plan assets, end of period | 225,167 | 205,803 | $ 262,945 |
Funded status of the plan | 18,661 | (5,008) | |
Pension and postretirement assets | 69,489 | 51,816 | |
Accrued liabilities | 0 | (224) | |
Pension and postretirement liabilities | (50,828) | (56,600) | |
Total benefits included in balance sheet | 18,661 | (5,008) | |
Prior service credits | 8,542 | (1,884) | |
Actuarial losses (gains) | (59,631) | (39,699) | |
Amounts included in other comprehensive income, net of tax | $ (51,089) | $ (41,583) |
Employee Benefit Plans and Ot_5
Employee Benefit Plans and Other Postretirement Benefits - Schedule of Pension Plans With PBO and ABO in Excess of Fair Value of Plan Assets (Details) - Pension and SERPA Benefits - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan, Pension Plan with Project Benefit Obligation in Excess of Plan Assets [Abstract] | ||
PBO | $ 10,072 | $ 12,686 |
Fair value of plan assets | 0 | 0 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | ||
ABO | 10,035 | 12,643 |
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans and Ot_6
Employee Benefit Plans and Other Postretirement Benefits - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension and SERPA Benefits | |||
Defined Benefit Plan Disclosure | |||
Service cost | $ 5,174 | $ 19,052 | $ 24,570 |
Interest cost | 81,911 | 61,890 | 61,988 |
Expected return on plan assets | (146,076) | (125,904) | (131,494) |
Prior service credit | 751 | (1,312) | (1,247) |
Net loss | (722) | 31,912 | 67,933 |
Curtailment (gain) loss | 0 | 0 | (10,562) |
Settlement (gain) loss | (759) | (1,471) | 722 |
Net periodic benefit cost | (59,721) | (15,833) | 11,910 |
Postretirement Healthcare Benefits | |||
Defined Benefit Plan Disclosure | |||
Service cost | 3,184 | 4,642 | 5,147 |
Interest cost | 11,089 | 7,617 | 6,505 |
Expected return on plan assets | (17,124) | (15,237) | (13,978) |
Prior service credit | (665) | (2,323) | (2,323) |
Net loss | (4,388) | 488 | 1,056 |
Curtailment (gain) loss | 0 | 0 | 0 |
Settlement (gain) loss | 0 | (1,244) | 0 |
Net periodic benefit cost | $ (7,904) | $ (6,057) | $ (3,593) |
Employee Benefit Plans and Ot_7
Employee Benefit Plans and Other Postretirement Benefits - Schedule of Assumptions Used to Determine Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension and SERPA Benefits | |||
Assumptions for benefit obligations: | |||
Discount rate | 5.31% | 5.45% | 2.89% |
Rate of compensation increase | 4% | 4% | 3.49% |
Assumptions for net periodic benefit cost: | |||
Discount rate | 5.45% | 2.89% | 2.67% |
Expected return on plan assets | 6.80% | 5.60% | 6.20% |
Rate of compensation increase | 4% | 3.49% | 3.34% |
Postretirement Healthcare Benefits | |||
Assumptions for benefit obligations: | |||
Discount rate | 5.36% | 5.42% | 2.72% |
Assumptions for net periodic benefit cost: | |||
Discount rate | 5.42% | 2.72% | 2.11% |
Expected return on plan assets | 7.48% | 6.77% | 6.69% |
Employee Benefit Plans and Ot_8
Employee Benefit Plans and Other Postretirement Benefits - Schedule of Fair Value of Pension Plan and Postretirement Healthcare Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Benefits | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | $ 1,901,824 | $ 1,809,543 | |
Pension Benefits | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 1,899,438 | 1,805,734 | |
Pension Benefits | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 660,858 | 945,043 | |
Pension Benefits | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 1,238,579 | 860,691 | |
Pension Benefits | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 2,386 | 3,809 | |
Pension Benefits | Cash and cash equivalents | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 27,730 | 43,062 | |
Pension Benefits | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Pension Benefits | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 27,730 | 43,062 | |
Pension Benefits | Equity Holdings | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 494,194 | 801,479 | |
Pension Benefits | Equity Holdings | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 494,143 | 801,439 | |
Pension Benefits | Equity Holdings | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 51 | 40 | |
Pension Benefits | U.S. companies | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 346,895 | 537,587 | |
Pension Benefits | U.S. companies | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 346,844 | 537,548 | |
Pension Benefits | U.S. companies | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 51 | 39 | |
Pension Benefits | Foreign companies | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 22,425 | 22,445 | |
Pension Benefits | Foreign companies | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 22,425 | 22,444 | |
Pension Benefits | Foreign companies | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 1 | |
Pension Benefits | Pooled equity funds | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 124,853 | 241,412 | |
Pension Benefits | Pooled equity funds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 124,853 | 241,412 | |
Pension Benefits | Pooled equity funds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Pension Benefits | Other | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 21 | 35 | |
Pension Benefits | Other | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 21 | 35 | |
Pension Benefits | Other | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Pension Benefits | Fixed-income holdings | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 1,377,514 | 961,193 | |
Pension Benefits | Fixed-income holdings | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 166,715 | 143,604 | |
Pension Benefits | Fixed-income holdings | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 1,210,798 | 817,589 | |
Pension Benefits | U.S. Treasuries | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 110,767 | 94,128 | |
Pension Benefits | U.S. Treasuries | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 110,766 | 94,128 | |
Pension Benefits | U.S. Treasuries | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Pension Benefits | Federal agencies | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 11,028 | 11,054 | |
Pension Benefits | Federal agencies | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Pension Benefits | Federal agencies | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 11,028 | 11,054 | |
Pension Benefits | Corporate bonds | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 708,790 | 640,875 | |
Pension Benefits | Corporate bonds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Pension Benefits | Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 708,790 | 640,875 | |
Pension Benefits | Pooled fixed income funds | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 442,409 | 111,649 | |
Pension Benefits | Pooled fixed income funds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 55,487 | 49,472 | |
Pension Benefits | Pooled fixed income funds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 386,922 | 62,177 | |
Pension Benefits | Foreign bonds | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 93,034 | 93,112 | |
Pension Benefits | Foreign bonds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 462 | 4 | |
Pension Benefits | Foreign bonds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 92,572 | 93,108 | |
Pension Benefits | Municipal bonds | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 11,486 | 10,375 | |
Pension Benefits | Municipal bonds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Pension Benefits | Municipal bonds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 11,486 | 10,375 | |
Pension Benefits | Private equity investments | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 794 | 799 | |
Pension Benefits | Real estate investments | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 1,592 | 3,010 | |
Postretirement Healthcare Benefits | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 225,167 | 205,803 | $ 262,945 |
Postretirement Healthcare Benefits | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 210,450 | 190,597 | |
Postretirement Healthcare Benefits | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 204,138 | 180,126 | |
Postretirement Healthcare Benefits | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 6,312 | 10,471 | |
Postretirement Healthcare Benefits | Cash and cash equivalents | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 2,391 | 7,998 | |
Postretirement Healthcare Benefits | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Postretirement Healthcare Benefits | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 2,391 | 7,998 | |
Postretirement Healthcare Benefits | Equity Holdings | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 160,529 | 139,984 | |
Postretirement Healthcare Benefits | Equity Holdings | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 160,529 | 139,984 | |
Postretirement Healthcare Benefits | Equity Holdings | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Postretirement Healthcare Benefits | U.S. companies | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 113,135 | 95,014 | |
Postretirement Healthcare Benefits | U.S. companies | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 113,135 | 95,014 | |
Postretirement Healthcare Benefits | U.S. companies | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Postretirement Healthcare Benefits | Foreign companies | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 21,034 | 20,784 | |
Postretirement Healthcare Benefits | Foreign companies | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 21,034 | 20,784 | |
Postretirement Healthcare Benefits | Foreign companies | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Postretirement Healthcare Benefits | Pooled equity funds | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 26,355 | 24,181 | |
Postretirement Healthcare Benefits | Pooled equity funds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 26,355 | 24,181 | |
Postretirement Healthcare Benefits | Pooled equity funds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Postretirement Healthcare Benefits | Other | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 5 | 5 | |
Postretirement Healthcare Benefits | Other | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 5 | 5 | |
Postretirement Healthcare Benefits | Other | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Postretirement Healthcare Benefits | Fixed-income holdings | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 47,530 | 42,615 | |
Postretirement Healthcare Benefits | Fixed-income holdings | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 43,609 | 40,142 | |
Postretirement Healthcare Benefits | Fixed-income holdings | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 3,921 | 2,473 | |
Postretirement Healthcare Benefits | U.S. Treasuries | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 359 | 287 | |
Postretirement Healthcare Benefits | U.S. Treasuries | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 359 | 287 | |
Postretirement Healthcare Benefits | U.S. Treasuries | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Postretirement Healthcare Benefits | Federal agencies | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 36 | 34 | |
Postretirement Healthcare Benefits | Federal agencies | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Postretirement Healthcare Benefits | Federal agencies | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 36 | 34 | |
Postretirement Healthcare Benefits | Corporate bonds | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 2,286 | 1,938 | |
Postretirement Healthcare Benefits | Corporate bonds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Postretirement Healthcare Benefits | Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 2,286 | 1,938 | |
Postretirement Healthcare Benefits | Pooled fixed income funds | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 44,512 | 40,043 | |
Postretirement Healthcare Benefits | Pooled fixed income funds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 43,248 | 39,855 | |
Postretirement Healthcare Benefits | Pooled fixed income funds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 1,264 | 188 | |
Postretirement Healthcare Benefits | Foreign bonds | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 300 | 282 | |
Postretirement Healthcare Benefits | Foreign bonds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 2 | 0 | |
Postretirement Healthcare Benefits | Foreign bonds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 298 | 282 | |
Postretirement Healthcare Benefits | Municipal bonds | Fair Value, Inputs, Level 1 and 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 37 | 31 | |
Postretirement Healthcare Benefits | Municipal bonds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 0 | 0 | |
Postretirement Healthcare Benefits | Municipal bonds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 37 | 31 | |
Postretirement Healthcare Benefits | Private equity investments | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 13,773 | ||
Postretirement Healthcare Benefits | Limited partnership interests | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | 13,502 | ||
Postretirement Healthcare Benefits | Real estate investments | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure | |||
Total benefit plan assets | $ 944 | $ 1,704 |
Employee Benefit Plans and Ot_9
Employee Benefit Plans and Other Postretirement Benefits - Schedule of Weighted-Average Health Care Cost Trend Rate (Details) - Postretirement Healthcare Benefits | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | ||
Healthcare cost trend rate for next year (in percent) | 7.50% | 7% |
Rate to which the cost trend rate is assumed to decline (the ultimate rate) (in percent) | 5% | 5% |
Year that the rate reaches the ultimate trend rate (year) | 2032 | 2032 |
Employee Benefit Plans and O_10
Employee Benefit Plans and Other Postretirement Benefits - Schedule of Expected Benefit Payments for Next Five Years and Thereafter (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Pension Benefits | |
Defined Benefit Plan, Expected Future Benefit Payment | |
2024 | $ 115,265 |
2025 | 114,856 |
2026 | 116,507 |
2027 | 116,698 |
2028 | 116,234 |
2029-2033 | 581,079 |
SERPA Benefits | |
Defined Benefit Plan, Expected Future Benefit Payment | |
2024 | 1,159 |
2025 | 1,119 |
2026 | 1,070 |
2027 | 945 |
2028 | 854 |
2029-2033 | 3,594 |
Postretirement Healthcare Benefits | |
Defined Benefit Plan, Expected Future Benefit Payment | |
2024 | 17,179 |
2025 | 18,050 |
2026 | 18,830 |
2027 | 19,442 |
2028 | 19,930 |
2029-2033 | $ 100,332 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2023 USD ($) employee |
Schedule Of Loss Contingencies [Line Items] | |
Number of employees | 6,400 |
Workforce Subject to Collective-Bargaining Arrangements | Unionized Employees Concentration Risk | |
Schedule Of Loss Contingencies [Line Items] | |
Number of employees | 2,400 |
Workforce Subject to Collective-Bargaining Arrangements Expiring within One Year | Unionized Employees Concentration Risk | |
Schedule Of Loss Contingencies [Line Items] | |
Number of employees | 1,100 |
Minimum | |
Schedule Of Loss Contingencies [Line Items] | |
Estimate cost | $ | $ 100 |
Maximum | |
Schedule Of Loss Contingencies [Line Items] | |
Estimate cost | $ | $ 400 |
Share-Based Awards - Narrative
Share-Based Awards - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Feb. 28, 2023 | Feb. 28, 2022 | May 31, 2021 | Feb. 28, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based award compensation expense | $ 82.9 | $ 54.4 | $ 42.2 | |||||
Share-based award compensation expense, net of tax | $ 63.4 | $ 41.6 | $ 32.3 | |||||
Performance Restricted Units (PRSU) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expected volatility | 53.90% | 55% | 55% | 52% | ||||
Risk-free interest rate | 4.08% | 1.58% | 0.27% | 0.18% | ||||
Performance Restricted Units (PRSU) | Performance Shares, When Share Price Goal Met | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Annual award vesting (as a percent) | 50% | |||||||
Performance Restricted Units (PRSU) | Performance Shares, One-Year Anniversary of Goal Met | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Annual award vesting (as a percent) | 50% | |||||||
Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expiration period | 10 years | |||||||
Expected dividend yield | 1.49% | |||||||
Expected volatility | 44.10% | |||||||
Risk-free interest rate | 1.21% | |||||||
Expected term | 5 years 6 months | |||||||
Granted (in shares) | 0 | 0 | ||||||
Share-based Payment Arrangement, Option, Employment Ceases Prior to December 31, 2023 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expiration period | 6 years | |||||||
Restricted Stock Units (RSUIs) and Performance Restricted Stock Units (PRSUIs) Settled in Cash | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | 105,000 | |||||||
2020 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares of common stock reserved for future issuance under the plan | 4,700,000 | |||||||
2020 Plan | Performance Restricted Units (PRSU) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award performance period | 3 years | |||||||
2020 Plan | Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
2020 Plan | Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expiration period | 10 years | |||||||
2020 Plan | Restricted Stock Units (RSUs) | First vesting period | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Annual award vesting (as a percent) | 33.33% | |||||||
2020 Plan | Restricted Stock Units (RSUs) | Second vesting period | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Annual award vesting (as a percent) | 33.33% | |||||||
2020 Plan | Restricted Stock Units (RSUs) | Third vesting period | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Annual award vesting (as a percent) | 33.33% |
Share-Based Awards - Assumption
Share-Based Awards - Assumptions Used to Calculate Fair Value (Details) | 1 Months Ended | ||||
Feb. 28, 2023 | Aug. 31, 2022 | Feb. 28, 2022 | May 31, 2021 | Feb. 28, 2021 | |
Performance Restricted Units (PRSU) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected volatility | 53.90% | 55% | 55% | 52% | |
Risk-free interest rate | 4.08% | 1.58% | 0.27% | 0.18% | |
Aspirational Share Grants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected volatility | 54.50% | ||||
Risk-free interest rate | 3.23% |
Share-Based Awards - Summary of
Share-Based Awards - Summary of Restricted Share and RSUs Transactions (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Restricted Stock, Restricted Stock Units (RSUs) and Performance Restricted Stock Units (PRSUs) Settled in Stock | |
Shares and Units | |
Nonvested, beginning of period (in shares) | shares | 4,560 |
Granted (in shares) | shares | 723 |
Vested (in shares) | shares | (818) |
Forfeited (in shares) | shares | (361) |
Nonvested, end of period (in shares) | shares | 4,104 |
Weighted -Average Fair Value Per Shares | |
Nonvested, beginning of period (in dollars per share) | $ / shares | $ 27 |
Granted (in dollars per share) | $ / shares | 46 |
Vested (in dollars per share) | $ / shares | 38 |
Forfeited (in dollars per share) | $ / shares | 32 |
Nonvested, ending of period (in dollars per share) | $ / shares | $ 28 |
Unrecognized compensation | $ | $ 39.7 |
Weighted-average period of recognition (years) | 1 year 4 months 24 days |
Restricted Stock Units (RSUIs) and Performance Restricted Stock Units (PRSUIs) Settled in Cash | |
Shares and Units | |
Nonvested, beginning of period (in shares) | shares | 245 |
Granted (in shares) | shares | 105 |
Vested (in shares) | shares | (112) |
Forfeited (in shares) | shares | (21) |
Nonvested, end of period (in shares) | shares | 217 |
Weighted -Average Fair Value Per Shares | |
Nonvested, beginning of period (in dollars per share) | $ / shares | $ 38 |
Granted (in dollars per share) | $ / shares | 48 |
Vested (in dollars per share) | $ / shares | 40 |
Forfeited (in dollars per share) | $ / shares | 36 |
Nonvested, ending of period (in dollars per share) | $ / shares | $ 36 |
Share-Based Awards - Summary _2
Share-Based Awards - Summary of Stock Option Transactions (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Options | |
Options outstanding, beginning of period (in shares) | shares | 913 |
Options granted (in shares) | shares | 0 |
Options exercised (in shares) | shares | 0 |
Options forfeited (in shares) | shares | (287) |
Options outstanding, end of period (in shares) | shares | 626 |
Exercisable, end of period (in shares) | shares | 251 |
Weighted Average Exercise Price | |
Weighted-Average Price, Options outstanding, beginning of period (in dollars per share) | $ / shares | $ 47 |
Options granted (in dollars per share) | $ / shares | 0 |
Options exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 59 |
Weighted-Average Price, Options outstanding, end of period (in dollars per share) | $ / shares | 42 |
Weighted-Average Price, Exercisable, end of period (in dollars per share) | $ / shares | $ 50 |
Share-Based Awards - Aggregate
Share-Based Awards - Aggregate Intrinsic Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Exercised | $ 0 | $ 0 | $ 289 |
Outstanding | 105 | 2,485 | 530 |
Exercisable | $ 0 | $ 0 | $ 0 |
Share-Based Awards - Stock Opti
Share-Based Awards - Stock Options Outstanding by Price Range (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-based Payment Arrangement, Option, Exercise Price Range | |
Weighted-Average Contractual Life, options outstanding | 6 years 4 months 24 days |
Options (in shares) | shares | 626 |
Weighted-Average Exercise Price, options outstanding (in dollars per share) | $ 42 |
Weighted-Average Contractual Life, Options exercisable | 4 years 1 month 6 days |
Options exercisable (in shares) | shares | 251 |
Weighted-Average Exercise Price, Options exercisable (in dollars per share) | $ 50 |
$30.01 to $40 | |
Share-based Payment Arrangement, Option, Exercise Price Range | |
Weighted-Average Contractual Life, options outstanding | 7 years 10 months 24 days |
Options (in shares) | shares | 500 |
Weighted-Average Exercise Price, options outstanding (in dollars per share) | $ 37 |
Lower Range Limit (in dollars per share) | 30.01 |
Upper Range Limit (in dollars per share) | $ 40 |
$40.01 to $50 | |
Share-based Payment Arrangement, Option, Exercise Price Range | |
Weighted-Average Contractual Life, options outstanding | 0 years |
Options (in shares) | shares | 0 |
Weighted-Average Exercise Price, options outstanding (in dollars per share) | $ 0 |
Lower Range Limit (in dollars per share) | 40.01 |
Upper Range Limit (in dollars per share) | $ 50 |
$50.01 to $60 | |
Share-based Payment Arrangement, Option, Exercise Price Range | |
Weighted-Average Contractual Life, options outstanding | 0 years |
Options (in shares) | shares | 0 |
Weighted-Average Exercise Price, options outstanding (in dollars per share) | $ 0 |
Lower Range Limit (in dollars per share) | 50.01 |
Upper Range Limit (in dollars per share) | $ 60 |
$60.01 to $70 | |
Share-based Payment Arrangement, Option, Exercise Price Range | |
Weighted-Average Contractual Life, options outstanding | 4 months 24 days |
Options (in shares) | shares | 126 |
Weighted-Average Exercise Price, options outstanding (in dollars per share) | $ 63 |
Lower Range Limit (in dollars per share) | 60.01 |
Upper Range Limit (in dollars per share) | $ 70 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax | |||
Balance, beginning of period | $ 2,903,519 | ||
Other comprehensive income, before reclassifications | 94,433 | $ (177,690) | $ 139,595 |
Income tax expense | (19,619) | 30,026 | (41,061) |
Total other comprehensive income before reclassifications, net of tax | 74,814 | (147,664) | 98,534 |
Reclassifications | (49,461) | 59,648 | 186,188 |
Income tax expense | 11,614 | (12,994) | (42,224) |
Total reclassification from other comprehensive income, net of tax | (37,847) | 46,654 | 143,964 |
Other comprehensive income | 36,967 | (101,010) | 242,498 |
Balance, end of period | 3,252,808 | 2,903,519 | |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax | |||
Balance, beginning of period | (341,929) | (240,919) | (483,417) |
Balance, end of period | (304,962) | (341,929) | (240,919) |
Foreign currency translation adjustments | |||
AOCI Attributable to Parent, Net of Tax | |||
Balance, beginning of period | (80,271) | (44,401) | (7,589) |
Other comprehensive income, before reclassifications | 11,845 | (32,769) | (38,988) |
Income tax expense | (313) | (3,101) | 2,176 |
Total other comprehensive income before reclassifications, net of tax | 11,532 | (35,870) | (36,812) |
Reclassifications | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
Total reclassification from other comprehensive income, net of tax | 0 | 0 | 0 |
Other comprehensive income | 11,532 | (35,870) | (36,812) |
Balance, end of period | (68,739) | (80,271) | (44,401) |
Derivative financial instruments | |||
AOCI Attributable to Parent, Net of Tax | |||
Balance, beginning of period | (10,440) | (2,005) | (46,116) |
Other comprehensive income, before reclassifications | 48,583 | (44,767) | (73,207) |
Income tax expense | (11,322) | 9,611 | 15,883 |
Total other comprehensive income before reclassifications, net of tax | 37,261 | (35,156) | (57,324) |
Reclassifications | (43,678) | 33,598 | 130,609 |
Income tax expense | 10,256 | (6,877) | (29,174) |
Total reclassification from other comprehensive income, net of tax | (33,422) | 26,721 | 101,435 |
Other comprehensive income | 3,839 | (8,435) | 44,111 |
Balance, end of period | (6,601) | (10,440) | (2,005) |
Pension and postretirement benefit plans | |||
AOCI Attributable to Parent, Net of Tax | |||
Balance, beginning of period | (251,218) | (194,513) | (429,712) |
Other comprehensive income, before reclassifications | 34,005 | (100,154) | 251,790 |
Income tax expense | (7,984) | 23,516 | (59,120) |
Total other comprehensive income before reclassifications, net of tax | 26,021 | (76,638) | 192,670 |
Reclassifications | (5,783) | 26,050 | 55,579 |
Income tax expense | 1,358 | (6,117) | (13,050) |
Total reclassification from other comprehensive income, net of tax | (4,425) | 19,933 | 42,529 |
Other comprehensive income | 21,596 | (56,705) | 235,199 |
Balance, end of period | (229,622) | (251,218) | (194,513) |
Pension and postretirement benefit plans; Prior service credits | |||
AOCI Attributable to Parent, Net of Tax | |||
Reclassifications | 86 | (3,635) | (3,570) |
Pension and postretirement benefit plans; Actuarial losses | |||
AOCI Attributable to Parent, Net of Tax | |||
Reclassifications | (5,110) | 32,400 | 68,989 |
Pension and postretirement benefit plans; settlement gains | |||
AOCI Attributable to Parent, Net of Tax | |||
Reclassifications | $ (759) | $ (2,715) | |
Pension and postretirement benefit plans; curtailment and settlement gains | |||
AOCI Attributable to Parent, Net of Tax | |||
Reclassifications | $ (9,840) |
Reportable Segments and Geogr_3
Reportable Segments and Geographic Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Reportable Segments and Geogr_4
Reportable Segments and Geographic Information - Information by Strategic Business Units (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 3 | ||
Segment Reporting Information | |||
Revenue | $ 4,882,892 | $ 4,934,505 | $ 4,540,240 |
Selling, administrative and engineering expense | 1,175,550 | 1,079,338 | 1,051,589 |
Operating income | 779,084 | 909,278 | 823,439 |
Financial services revenue | 953,586 | 820,625 | 796,068 |
Financial services expense | 3,322,306 | 3,403,728 | 3,243,287 |
Depreciation and amortization | 158,112 | 151,942 | 165,185 |
HDMC | |||
Segment Reporting Information | |||
Revenue | 4,844,594 | 4,887,672 | 4,504,434 |
Gross profit | 1,566,542 | 1,527,873 | 1,299,527 |
Selling, administrative and engineering expense | 905,391 | 850,786 | 822,720 |
Operating income | 661,151 | 677,087 | 476,807 |
Depreciation and amortization | 143,355 | 138,875 | 151,251 |
LiveWire | |||
Segment Reporting Information | |||
Revenue | 38,298 | 46,833 | 35,806 |
Gross profit | (5,956) | 2,904 | (2,574) |
Selling, administrative and engineering expense | 110,853 | 88,219 | 65,608 |
Operating income | (116,809) | (85,315) | (68,182) |
Depreciation and amortization | 5,832 | 4,401 | 4,718 |
HDFS | |||
Segment Reporting Information | |||
Operating income | 234,742 | 317,506 | 414,814 |
Financial services revenue | 953,586 | 820,625 | 796,068 |
Financial services expense | 718,844 | 503,119 | 381,254 |
Depreciation and amortization | $ 8,925 | $ 8,666 | $ 9,216 |
Reportable Segments and Geogr_5
Reportable Segments and Geographic Information - Information by Industry Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information | |||
Assets | $ 12,140,554 | $ 11,492,476 | $ 11,051,055 |
Depreciation and amortization | 158,112 | 151,942 | 165,185 |
Capital expenditures | 207,404 | 151,669 | 120,181 |
HDMC | |||
Segment Reporting Information | |||
Assets | 3,644,016 | 3,254,309 | 3,246,340 |
Depreciation and amortization | 143,355 | 138,875 | 151,251 |
Capital expenditures | 188,863 | 133,191 | 106,044 |
LiveWire | |||
Segment Reporting Information | |||
Assets | 266,404 | 351,422 | 61,952 |
Depreciation and amortization | 5,832 | 4,401 | 4,718 |
Capital expenditures | 13,462 | 14,081 | 9,951 |
HDFS | |||
Segment Reporting Information | |||
Assets | 8,230,134 | 7,886,745 | 7,742,763 |
Depreciation and amortization | 8,925 | 8,666 | 9,216 |
Capital expenditures | $ 5,079 | $ 4,397 | $ 4,186 |
Reportable Segments and Geogr_6
Reportable Segments and Geographic Information - Segment Information by Geographical Locations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 4,882,892 | $ 4,934,505 | $ 4,540,240 |
Financial services revenue | 953,586 | 820,625 | 796,068 |
Long-lived assets | 731,724 | 689,886 | 683,984 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 644,620 | 611,421 | 595,375 |
Other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 4,907 | 5,991 | 6,682 |
Thailand | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 82,197 | 72,474 | 81,927 |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 87,104 | 78,465 | 88,609 |
HDMC | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 4,844,594 | 4,887,672 | 4,504,434 |
HDMC | United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 3,289,227 | 3,253,875 | 2,996,471 |
HDMC | EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 637,492 | 693,073 | 703,048 |
HDMC | Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 220,158 | 216,389 | 182,230 |
HDMC | Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 200,539 | 175,292 | 150,138 |
HDMC | Australia and New Zealand | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 127,352 | 147,551 | 134,301 |
HDMC | Other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 369,826 | 401,492 | 338,246 |
LiveWire | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 38,298 | 46,833 | 35,806 |
LiveWire | United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 31,483 | 36,256 | 24,633 |
LiveWire | International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 6,815 | 10,577 | 11,173 |
HDFS | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Financial services revenue | 953,586 | 820,625 | 796,068 |
HDFS | United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Financial services revenue | 922,758 | 794,912 | 765,917 |
HDFS | Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Financial services revenue | 18,220 | 16,276 | 18,613 |
HDFS | Other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Financial services revenue | 5,265 | 3,366 | 4,074 |
HDFS | Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Financial services revenue | $ 7,343 | $ 6,071 | $ 7,464 |
Supplemental Consolidating Da_3
Supplemental Consolidating Data - Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Revenue from contract with customer, excluding assessed tax | $ 4,882,892 | $ 4,934,505 | $ 4,540,240 |
Revenue not from contract with customer | 953,586 | 820,625 | 796,068 |
Total revenue | 5,836,478 | 5,755,130 | 5,336,308 |
Costs and expenses: | |||
Motorcycles and related products cost of goods sold | 3,322,306 | 3,403,728 | 3,243,287 |
Financial services interest expense | 332,380 | 217,653 | 192,944 |
Provision for credit losses | 227,158 | 145,133 | 25,049 |
Selling, administrative and engineering expense | 1,175,550 | 1,079,338 | 1,051,589 |
Total costs and expenses | 5,057,394 | 4,845,852 | 4,512,869 |
Operating income | 779,084 | 909,278 | 823,439 |
Other income, net | 71,808 | 48,652 | 20,076 |
Investment income | 46,771 | 4,538 | 6,694 |
Interest expense | 30,787 | 31,235 | 30,972 |
Income before income taxes | 866,876 | 931,233 | 819,237 |
Income tax provision | 171,830 | 192,019 | 169,213 |
Net income | 695,046 | 739,214 | 650,024 |
Less: Loss attributable to noncontrolling interests | 2,194 | ||
Net income attributable to Harley-Davidson, Inc. | 706,586 | 741,408 | $ 650,024 |
Reportable Legal Entities | Non-Financial Services Entities | |||
Revenue: | |||
Total revenue | 4,891,449 | 4,946,005 | |
Costs and expenses: | |||
Motorcycles and related products cost of goods sold | 3,322,306 | 3,403,728 | |
Financial services interest expense | 0 | 0 | |
Provision for credit losses | 0 | 0 | |
Selling, administrative and engineering expense | 1,018,670 | 941,312 | |
Total costs and expenses | 4,340,976 | 4,345,040 | |
Operating income | 550,473 | 600,965 | |
Other income, net | 71,808 | 48,652 | |
Investment income | 246,771 | 204,538 | |
Interest expense | 30,787 | 31,235 | |
Income before income taxes | 838,265 | 822,920 | |
Income tax provision | 125,356 | 125,820 | |
Net income | 712,909 | 697,100 | |
Less: Loss attributable to noncontrolling interests | 11,540 | 2,194 | |
Net income attributable to Harley-Davidson, Inc. | 724,449 | 699,294 | |
Reportable Legal Entities | Financial Services Entities | |||
Revenue: | |||
Total revenue | 955,810 | 822,530 | |
Costs and expenses: | |||
Motorcycles and related products cost of goods sold | 0 | 0 | |
Financial services interest expense | 332,380 | 217,653 | |
Provision for credit losses | 227,158 | 145,133 | |
Selling, administrative and engineering expense | 167,861 | 151,833 | |
Total costs and expenses | 727,399 | 514,619 | |
Operating income | 228,411 | 307,911 | |
Other income, net | 0 | 0 | |
Investment income | 0 | 0 | |
Interest expense | 0 | 0 | |
Income before income taxes | 228,411 | 307,911 | |
Income tax provision | 46,474 | 66,199 | |
Net income | 181,937 | 241,712 | |
Less: Loss attributable to noncontrolling interests | 0 | 0 | |
Net income attributable to Harley-Davidson, Inc. | 181,937 | 241,712 | |
Consolidating Adjustments | |||
Revenue: | |||
Total revenue | (10,781) | (13,405) | |
Costs and expenses: | |||
Motorcycles and related products cost of goods sold | 0 | 0 | |
Financial services interest expense | 0 | 0 | |
Provision for credit losses | 0 | 0 | |
Selling, administrative and engineering expense | (10,981) | (13,807) | |
Total costs and expenses | (10,981) | (13,807) | |
Operating income | 200 | 402 | |
Other income, net | 0 | 0 | |
Investment income | (200,000) | (200,000) | |
Interest expense | 0 | 0 | |
Income before income taxes | (199,800) | (199,598) | |
Income tax provision | 0 | 0 | |
Net income | (199,800) | (199,598) | |
Less: Loss attributable to noncontrolling interests | 0 | 0 | |
Net income attributable to Harley-Davidson, Inc. | (199,800) | (199,598) | |
Motorcycles and related products | |||
Revenue: | |||
Revenue from contract with customer, excluding assessed tax | 4,882,892 | 4,934,505 | |
Motorcycles and related products | Reportable Legal Entities | Non-Financial Services Entities | |||
Revenue: | |||
Revenue from contract with customer, excluding assessed tax | 4,891,449 | 4,946,005 | |
Motorcycles and related products | Reportable Legal Entities | Financial Services Entities | |||
Revenue: | |||
Revenue from contract with customer, excluding assessed tax | 0 | 0 | |
Motorcycles and related products | Consolidating Adjustments | |||
Revenue: | |||
Revenue from contract with customer, excluding assessed tax | (8,557) | (11,500) | |
Financial services | |||
Revenue: | |||
Revenue not from contract with customer | 953,586 | 820,625 | |
Financial services | Reportable Legal Entities | Non-Financial Services Entities | |||
Revenue: | |||
Revenue not from contract with customer | 0 | 0 | |
Financial services | Reportable Legal Entities | Financial Services Entities | |||
Revenue: | |||
Revenue not from contract with customer | 955,810 | 822,530 | |
Financial services | Consolidating Adjustments | |||
Revenue: | |||
Revenue not from contract with customer | $ (2,224) | $ (1,905) |
Supplemental Consolidating Da_4
Supplemental Consolidating Data - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||||
Cash and cash equivalents | $ 1,533,806 | $ 1,433,175 | $ 1,874,745 | |
Accounts receivable, net | 267,200 | 252,225 | ||
Finance receivables, net - current | 2,113,729 | 1,782,631 | ||
Inventories, net | 929,951 | 950,960 | ||
Restricted cash | 104,642 | 135,424 | 128,935 | |
Other current assets | 214,401 | 196,238 | ||
Current assets | 5,163,729 | 4,750,653 | ||
Finance receivables, net - non-current | 5,384,536 | 5,355,807 | ||
Property, plant and equipment, net | 731,724 | 689,886 | ||
Pension and postretirement assets | 413,107 | 320,133 | ||
Goodwill | 62,696 | 62,090 | 63,177 | |
Deferred income taxes | 161,184 | 135,041 | ||
Lease assets | 69,650 | 43,931 | ||
Other long-term assets | 153,928 | 134,935 | ||
Assets | 12,140,554 | 11,492,476 | 11,051,055 | |
Current liabilities: | ||||
Accounts payable | 349,162 | 378,002 | ||
Accrued liabilities | 646,859 | 620,945 | ||
Short-term deposits, net | 253,309 | 79,710 | ||
Short-term debt | 878,935 | 770,468 | ||
Current portion of long-term debt, net | 1,255,999 | 1,684,782 | ||
Current liabilities | 3,384,264 | 3,533,907 | ||
Long-term deposits, net | 194,473 | 237,665 | ||
Long-term debt, net | 4,990,586 | 4,457,052 | ||
Lease liabilities | 51,848 | 26,777 | ||
Pension and postretirement liabilities | 59,772 | 67,955 | ||
Deferred income taxes | 33,514 | 29,528 | ||
Other long-term liabilities | 173,802 | 232,784 | ||
Commitments and contingencies (Note 15) | ||||
Shareholders’ equity | 3,252,295 | 2,906,808 | $ 2,553,244 | $ 1,722,785 |
Total liabilities and shareholders' equity | 12,140,554 | 11,492,476 | ||
Reportable Legal Entities | Non-Financial Services Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 1,127,400 | 1,021,798 | ||
Accounts receivable, net | 415,004 | 369,192 | ||
Finance receivables, net - current | 0 | 0 | ||
Inventories, net | 929,951 | 950,960 | ||
Restricted cash | 0 | 0 | ||
Other current assets | 148,006 | 138,743 | ||
Current assets | 2,620,361 | 2,480,693 | ||
Finance receivables, net - non-current | 0 | 0 | ||
Property, plant and equipment, net | 710,982 | 665,298 | ||
Pension and postretirement assets | 413,107 | 320,133 | ||
Goodwill | 62,696 | 62,090 | ||
Deferred income taxes | 79,151 | 56,255 | ||
Lease assets | 66,166 | 37,938 | ||
Other long-term assets | 228,261 | 213,306 | ||
Assets | 4,180,724 | 3,835,713 | ||
Current liabilities: | ||||
Accounts payable | 323,798 | 359,584 | ||
Accrued liabilities | 509,725 | 498,570 | ||
Short-term deposits, net | 0 | 0 | ||
Short-term debt | 0 | 0 | ||
Current portion of long-term debt, net | 0 | 0 | ||
Current liabilities | 833,523 | 858,154 | ||
Long-term deposits, net | 0 | 0 | ||
Long-term debt, net | 746,077 | 745,368 | ||
Lease liabilities | 48,433 | 20,860 | ||
Pension and postretirement liabilities | 59,772 | 67,955 | ||
Deferred income taxes | 30,266 | 28,180 | ||
Other long-term liabilities | 150,171 | 161,231 | ||
Commitments and contingencies (Note 15) | ||||
Shareholders’ equity | 2,312,482 | 1,953,965 | ||
Total liabilities and shareholders' equity | 4,180,724 | 3,835,713 | ||
Reportable Legal Entities | Financial Services Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 406,406 | 411,377 | ||
Accounts receivable, net | 32 | 0 | ||
Finance receivables, net - current | 2,113,729 | 1,782,631 | ||
Inventories, net | 0 | 0 | ||
Restricted cash | 104,642 | 135,424 | ||
Other current assets | 73,976 | 62,037 | ||
Current assets | 2,698,785 | 2,391,469 | ||
Finance receivables, net - non-current | 5,384,536 | 5,355,807 | ||
Property, plant and equipment, net | 20,742 | 24,588 | ||
Pension and postretirement assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred income taxes | 83,379 | 79,808 | ||
Lease assets | 3,484 | 5,993 | ||
Other long-term assets | 39,208 | 29,080 | ||
Assets | 8,230,134 | 7,886,745 | ||
Current liabilities: | ||||
Accounts payable | 173,200 | 135,385 | ||
Accrued liabilities | 144,622 | 126,405 | ||
Short-term deposits, net | 253,309 | 79,710 | ||
Short-term debt | 878,935 | 770,468 | ||
Current portion of long-term debt, net | 1,255,999 | 1,684,782 | ||
Current liabilities | 2,706,065 | 2,796,750 | ||
Long-term deposits, net | 194,473 | 237,665 | ||
Long-term debt, net | 4,244,509 | 3,711,684 | ||
Lease liabilities | 3,415 | 5,917 | ||
Pension and postretirement liabilities | 0 | 0 | ||
Deferred income taxes | 3,248 | 1,348 | ||
Other long-term liabilities | 21,725 | 69,542 | ||
Commitments and contingencies (Note 15) | ||||
Shareholders’ equity | 1,056,699 | 1,063,839 | ||
Total liabilities and shareholders' equity | 8,230,134 | 7,886,745 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | (147,836) | (116,967) | ||
Finance receivables, net - current | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Other current assets | (7,581) | (4,542) | ||
Current assets | (155,417) | (121,509) | ||
Finance receivables, net - non-current | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Pension and postretirement assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred income taxes | (1,346) | (1,022) | ||
Lease assets | 0 | 0 | ||
Other long-term assets | (113,541) | (107,451) | ||
Assets | (270,304) | (229,982) | ||
Current liabilities: | ||||
Accounts payable | (147,836) | (116,967) | ||
Accrued liabilities | (7,488) | (4,030) | ||
Short-term deposits, net | 0 | 0 | ||
Short-term debt | 0 | 0 | ||
Current portion of long-term debt, net | 0 | 0 | ||
Current liabilities | (155,324) | (120,997) | ||
Long-term deposits, net | 0 | 0 | ||
Long-term debt, net | 0 | 0 | ||
Lease liabilities | 0 | 0 | ||
Pension and postretirement liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other long-term liabilities | 1,906 | 2,011 | ||
Commitments and contingencies (Note 15) | ||||
Shareholders’ equity | (116,886) | (110,996) | ||
Total liabilities and shareholders' equity | $ (270,304) | $ (229,982) |
Supplemental Consolidating Da_5
Supplemental Consolidating Data - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 695,046 | $ 739,214 | $ 650,024 |
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||
Depreciation and amortization | 158,112 | 151,942 | 165,185 |
Amortization of deferred loan origination costs | 85,018 | 94,914 | 86,115 |
Amortization of financing origination fees | 13,208 | 15,105 | 13,810 |
Provision for long-term employee benefits | (67,624) | (21,891) | 8,317 |
Employee benefit plan contributions and payments | (5,736) | (14,320) | (17,133) |
Stock compensation expense | 82,901 | 54,353 | 42,156 |
Net change in wholesale finance receivables related to sales | (387,743) | (198,623) | 89,001 |
Provision for credit losses | 227,158 | 145,133 | 25,049 |
Deferred income taxes | (30,059) | (15,936) | (7,672) |
Other, net | (39,713) | (13,027) | (9,985) |
Changes in current assets and liabilities: | |||
Accounts receivable, net | (11,443) | (82,385) | (53,463) |
Finance receivables – accrued interest and other | (339) | 414 | 13,316 |
Inventories, net | 21,257 | (254,170) | (207,550) |
Accounts payable and accrued liabilities | 28,570 | 4,503 | 173,548 |
Other current assets | (13,726) | (56,765) | 4,983 |
Total change in current assets and liabilities | 59,841 | (190,753) | 325,677 |
Net cash provided by operating activities | 754,887 | 548,461 | 975,701 |
Cash flows from investing activities: | |||
Capital expenditures | (207,404) | (151,669) | (120,181) |
Origination of finance receivables | (3,873,542) | (4,558,834) | (4,243,710) |
Collections of finance receivables | 3,570,822 | 3,935,001 | 3,902,304 |
Other investing activities | (2,180) | 2,491 | 2,140 |
Net cash used by investing activities | (512,304) | (773,011) | (459,447) |
Cash flows from financing activities: | |||
Proceeds from issuance of medium-term notes | 1,446,304 | 495,785 | 0 |
Repayments of medium-term notes | (1,056,680) | (950,000) | (1,400,000) |
Proceeds from securitization debt | 1,045,547 | 1,826,891 | 1,169,910 |
Repayments of securitization debt | (1,193,526) | (1,442,860) | (1,340,638) |
Borrowings of asset-backed commercial paper | 42,429 | 448,255 | 98,863 |
Repayments of asset-backed commercial paper | (237,370) | (302,922) | (261,367) |
Net increase (decrease) in unsecured commercial paper | 107,146 | 16,003 | (260,250) |
Net increase in deposits | 129,855 | 26,605 | 210,112 |
Dividends paid | (96,310) | (93,180) | (92,426) |
Repurchase of common stock | (363,987) | (338,627) | (11,623) |
Cash received from business combination | 0 | 114,068 | 0 |
Other financing activities | 1,946 | (1,985) | 2,488 |
Net cash used by financing activities | (174,646) | (201,967) | (1,884,931) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,697 | (19,525) | (15,272) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 69,634 | (446,042) | (1,383,949) |
Cash and cash equivalents: | |||
Cash, cash equivalents and restricted cash, beginning of period | 1,579,177 | 2,025,219 | 3,409,168 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 69,634 | (446,042) | (1,383,949) |
Cash, cash equivalents and restricted cash, end of period | 1,648,811 | 1,579,177 | 2,025,219 |
Reportable Legal Entities | |||
Cash flows from financing activities: | |||
Proceeds from securitization debt | 0 | ||
Reportable Legal Entities | Non-Financial Services Entities | |||
Cash flows from operating activities: | |||
Net income | 712,909 | 697,100 | |
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||
Depreciation and amortization | 149,187 | 143,276 | |
Amortization of deferred loan origination costs | 0 | 0 | |
Amortization of financing origination fees | 709 | 700 | |
Provision for long-term employee benefits | (67,624) | (21,891) | |
Employee benefit plan contributions and payments | (5,736) | (14,320) | |
Stock compensation expense | 79,311 | 50,954 | |
Net change in wholesale finance receivables related to sales | 0 | 0 | |
Provision for credit losses | 0 | 0 | |
Deferred income taxes | (26,720) | (11,988) | |
Other, net | (18,480) | (5,745) | |
Changes in current assets and liabilities: | |||
Accounts receivable, net | (42,312) | (96,826) | |
Finance receivables – accrued interest and other | 0 | 0 | |
Inventories, net | 21,257 | (254,170) | |
Accounts payable and accrued liabilities | (21,957) | (6,840) | |
Other current assets | (11,283) | (54,516) | |
Total change in current assets and liabilities | 56,352 | (271,366) | |
Net cash provided by operating activities | 769,261 | 425,734 | |
Cash flows from investing activities: | |||
Capital expenditures | (202,325) | (147,272) | |
Origination of finance receivables | 0 | 0 | |
Collections of finance receivables | 0 | 0 | |
Other investing activities | (4,680) | 2,491 | |
Net cash used by investing activities | (207,005) | (144,781) | |
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 (decrease) in unsecured commercial paper | 0 | 0 | |
Net increase in deposits | 0 | 0 | |
Dividends paid | (96,310) | (93,180) | |
Repurchase of common stock | (363,987) | (338,627) | |
Cash received from business combination | 114,068 | ||
Other financing activities | 1,946 | (1,985) | |
Net cash used by financing activities | (458,351) | (319,724) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,697 | (17,636) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 105,602 | (56,407) | |
Cash and cash equivalents: | |||
Cash, cash equivalents and restricted cash, beginning of period | 1,021,798 | 1,078,205 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 105,602 | (56,407) | |
Cash, cash equivalents and restricted cash, end of period | 1,127,400 | 1,021,798 | 1,078,205 |
Reportable Legal Entities | Financial Services Entities | |||
Cash flows from operating activities: | |||
Net income | 181,937 | 241,712 | |
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||
Depreciation and amortization | 8,925 | 8,666 | |
Amortization of deferred loan origination costs | 85,018 | 94,914 | |
Amortization of financing origination fees | 12,499 | 14,405 | |
Provision for long-term employee benefits | 0 | 0 | |
Employee benefit plan contributions and payments | 0 | 0 | |
Stock compensation expense | 3,590 | 3,399 | |
Net change in wholesale finance receivables related to sales | 0 | 0 | |
Provision for credit losses | 227,158 | 145,133 | |
Deferred income taxes | (3,663) | (3,925) | |
Other, net | (21,033) | (6,880) | |
Changes in current assets and liabilities: | |||
Accounts receivable, net | 0 | 0 | |
Finance receivables – accrued interest and other | (339) | 414 | |
Inventories, net | 0 | 0 | |
Accounts payable and accrued liabilities | 67,635 | 27,069 | |
Other current assets | (5,482) | (3,559) | |
Total change in current assets and liabilities | 374,308 | 279,636 | |
Net cash provided by operating activities | 556,245 | 521,348 | |
Cash flows from investing activities: | |||
Capital expenditures | (5,079) | (4,397) | |
Origination of finance receivables | (7,284,431) | (7,960,123) | |
Collections of finance receivables | 6,611,092 | 7,137,669 | |
Other investing activities | 0 | 0 | |
Net cash used by investing activities | (678,418) | (826,851) | |
Cash flows from financing activities: | |||
Proceeds from issuance of medium-term notes | 1,446,304 | 495,785 | |
Repayments of medium-term notes | (1,056,680) | (950,000) | |
Proceeds from securitization debt | 1,045,547 | 1,826,891 | |
Repayments of securitization debt | (1,193,526) | (1,442,860) | |
Borrowings of asset-backed commercial paper | 42,429 | 448,255 | |
Repayments of asset-backed commercial paper | (237,370) | (302,922) | |
Net increase (decrease) in unsecured commercial paper | 107,146 | 16,003 | |
Net increase in deposits | 129,855 | 26,605 | |
Dividends paid | (200,000) | (200,000) | |
Repurchase of common stock | 0 | 0 | |
Cash received from business combination | 0 | ||
Other financing activities | 2,500 | 0 | |
Net cash used by financing activities | 86,205 | (82,243) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | (1,889) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (35,968) | (389,635) | |
Cash and cash equivalents: | |||
Cash, cash equivalents and restricted cash, beginning of period | 557,379 | 947,014 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (35,968) | (389,635) | |
Cash, cash equivalents and restricted cash, end of period | 521,411 | 557,379 | 947,014 |
Consolidating Adjustments | |||
Cash flows from operating activities: | |||
Net income | (199,800) | (199,598) | |
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||
Depreciation and amortization | 0 | 0 | |
Amortization of deferred loan origination costs | 0 | 0 | |
Amortization of financing origination fees | 0 | 0 | |
Provision for long-term employee benefits | 0 | 0 | |
Employee benefit plan contributions and payments | 0 | 0 | |
Stock compensation expense | 0 | 0 | |
Net change in wholesale finance receivables related to sales | (387,743) | (198,623) | |
Provision for credit losses | 0 | 0 | |
Deferred income taxes | 324 | (23) | |
Other, net | (200) | (402) | |
Changes in current assets and liabilities: | |||
Accounts receivable, net | 30,869 | 14,441 | |
Finance receivables – accrued interest and other | 0 | 0 | |
Inventories, net | 0 | 0 | |
Accounts payable and accrued liabilities | (17,108) | (15,726) | |
Other current assets | 3,039 | 1,310 | |
Total change in current assets and liabilities | (370,819) | (199,023) | |
Net cash provided by operating activities | (570,619) | (398,621) | |
Cash flows from investing activities: | |||
Capital expenditures | 0 | 0 | |
Origination of finance receivables | 3,410,889 | 3,401,289 | |
Collections of finance receivables | (3,040,270) | (3,202,668) | |
Other investing activities | 2,500 | 0 | |
Net cash used by investing activities | 373,119 | 198,621 | |
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 (decrease) in unsecured commercial paper | 0 | 0 | |
Net increase in deposits | 0 | 0 | |
Dividends paid | 200,000 | 200,000 | |
Repurchase of common stock | 0 | 0 | |
Cash received from business combination | 0 | ||
Other financing activities | (2,500) | 0 | |
Net cash used by financing activities | 197,500 | 200,000 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | |
Cash and cash equivalents: | |||
Cash, cash equivalents and restricted cash, beginning of period | 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 |
Subsequent Event (Details)
Subsequent Event (Details) - 1 months ended Feb. 29, 2024 - Subsequent Event $ in Millions, $ in Millions | USD ($) | CAD ($) |
Subsequent Event [Line Items] | ||
Transfers on finance receivables | $ 47.2 | |
Proceeds from transfer of finance receivables | $ 38.6 | |
SPE | ||
Subsequent Event [Line Items] | ||
Transfers on finance receivables | $ 173.8 | |
Secured Debt | U.S. Conduit Facilities | ||
Subsequent Event [Line Items] | ||
Company issued secured notes | $ 151.8 |
Consolidated Valuation and Qu_2
Consolidated Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Cumulative effect of change in accounting | $ 381,966 | $ 358,711 | $ 339,379 | $ 390,936 |
Accounts receivable - Allowance for doubtful accounts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance, beginning of period | 2,887 | 2,440 | 3,742 | |
Provision charged to expense | 46 | 679 | 197 | |
Reserve adjustments | 54 | (89) | (157) | |
Write-offs, net of recoveries | (905) | (143) | (1,342) | |
Balance, end of period | 2,082 | 2,887 | 2,440 | |
Finance receivables - Allowance for credit losses | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance, beginning of period | 358,711 | 339,379 | 390,936 | |
Provision charged to expense | 227,158 | 145,133 | 25,049 | |
Write-offs, net of recoveries | (203,903) | (125,801) | (76,606) | |
Balance, end of period | 381,966 | 358,711 | 339,379 | |
Inventories – allowance for obsolescence | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance, beginning of period | 84,587 | 62,969 | 71,995 | |
Provision charged to expense | 45,093 | 29,060 | 5,659 | |
Reserve adjustments | 519 | (366) | (2,078) | |
Write-offs, net of recoveries | (19,953) | (7,076) | (12,607) | |
Balance, end of period | 110,246 | 84,587 | 62,969 | |
Deferred tax assets - Valuation allowance | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance, beginning of period | 40,878 | 33,596 | 38,072 | |
Reserve adjustments | 7,638 | 7,282 | (4,476) | |
Balance, end of period | $ 48,516 | $ 40,878 | $ 33,596 |