|
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
Wisconsin
|
|
39-1382325
|
(State of organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
3700 West Juneau Avenue
Milwaukee, Wisconsin
|
|
53208
|
(Address of principal executive offices)
|
|
(Zip code)
|
|
Large accelerated filer
|
|
x
|
Accelerated filer
|
|
¨
|
Non-accelerated filer
|
|
¨
|
Smaller reporting company
|
|
¨
|
Emerging growth company
|
|
¨
|
|
|
|
Part I
|
||
|
|
|
Item 1.
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Part II
|
||
|
|
|
Item 1.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
Three months ended
|
||||||
|
March 31,
2019 |
|
April 1,
2018 |
||||
Revenue:
|
|
|
|
||||
Motorcycles and Related Products
|
$
|
1,195,637
|
|
|
$
|
1,363,947
|
|
Financial Services
|
188,743
|
|
|
178,174
|
|
||
Total revenue
|
1,384,380
|
|
|
1,542,121
|
|
||
Costs and expenses:
|
|
|
|
||||
Motorcycles and Related Products cost of goods sold
|
848,198
|
|
|
890,174
|
|
||
Financial Services interest expense
|
52,324
|
|
|
48,450
|
|
||
Financial Services provision for credit losses
|
34,491
|
|
|
30,052
|
|
||
Selling, administrative and engineering expense
|
268,625
|
|
|
290,186
|
|
||
Restructuring expense
|
13,630
|
|
|
46,842
|
|
||
Total costs and expenses
|
1,217,268
|
|
|
1,305,704
|
|
||
Operating income
|
167,112
|
|
|
236,417
|
|
||
Other income (expense), net
|
4,660
|
|
|
220
|
|
||
Investment income
|
6,358
|
|
|
1,203
|
|
||
Interest expense
|
7,731
|
|
|
7,690
|
|
||
Income before provision for income taxes
|
170,399
|
|
|
230,150
|
|
||
Provision for income taxes
|
42,454
|
|
|
55,387
|
|
||
Net income
|
$
|
127,945
|
|
|
$
|
174,763
|
|
Earnings per common share:
|
|
|
|
||||
Basic
|
$
|
0.80
|
|
|
$
|
1.04
|
|
Diluted
|
$
|
0.80
|
|
|
$
|
1.03
|
|
Cash dividends per common share
|
$
|
0.375
|
|
|
$
|
0.370
|
|
|
Three months ended
|
||||||
|
March 31,
2019 |
|
April 1,
2018 |
||||
Net income
|
$
|
127,945
|
|
|
$
|
174,763
|
|
Other comprehensive income, net of tax:
|
|
|
|
||||
Foreign currency translation adjustments
|
331
|
|
|
6,915
|
|
||
Derivative financial instruments
|
(441
|
)
|
|
765
|
|
||
Pension and postretirement benefit plans
|
7,743
|
|
|
85,765
|
|
||
Total other comprehensive income, net of tax
|
7,633
|
|
|
93,445
|
|
||
Comprehensive income
|
$
|
135,578
|
|
|
$
|
268,208
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
||||||
|
March 31,
2019 |
|
December 31,
2018 |
|
April 1,
2018 |
||||||
ASSETS
|
|
|
|
|
|
||||||
Current assets:
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
749,600
|
|
|
$
|
1,203,766
|
|
|
$
|
753,517
|
|
Marketable securities
|
10,003
|
|
|
10,007
|
|
|
—
|
|
|||
Accounts receivable, net
|
353,541
|
|
|
306,474
|
|
|
355,107
|
|
|||
Finance receivables, net
|
2,443,899
|
|
|
2,214,424
|
|
|
2,341,918
|
|
|||
Inventories
|
595,806
|
|
|
556,128
|
|
|
564,571
|
|
|||
Restricted cash
|
43,471
|
|
|
49,275
|
|
|
54,569
|
|
|||
Other current assets
|
177,761
|
|
|
144,368
|
|
|
150,472
|
|
|||
Total current assets
|
4,374,081
|
|
|
4,484,442
|
|
|
4,220,154
|
|
|||
Finance receivables, net
|
4,994,693
|
|
|
5,007,507
|
|
|
4,784,524
|
|
|||
Property, plant and equipment, net
|
876,003
|
|
|
904,132
|
|
|
934,645
|
|
|||
Prepaid pension costs
|
—
|
|
|
—
|
|
|
122,230
|
|
|||
Goodwill
|
64,131
|
|
|
55,048
|
|
|
56,524
|
|
|||
Deferred income taxes
|
132,988
|
|
|
141,464
|
|
|
77,624
|
|
|||
Lease assets
|
55,305
|
|
|
—
|
|
|
—
|
|
|||
Other long-term assets
|
83,412
|
|
|
73,071
|
|
|
81,920
|
|
|||
|
$
|
10,580,613
|
|
|
$
|
10,665,664
|
|
|
$
|
10,277,621
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
||||||
Current liabilities:
|
|
|
|
|
|
||||||
Accounts payable
|
$
|
380,918
|
|
|
$
|
284,861
|
|
|
$
|
319,040
|
|
Accrued liabilities
|
644,171
|
|
|
601,130
|
|
|
566,408
|
|
|||
Short-term debt
|
1,192,925
|
|
|
1,135,810
|
|
|
1,036,976
|
|
|||
Current portion of long-term debt, net
|
1,372,050
|
|
|
1,575,799
|
|
|
1,872,679
|
|
|||
Total current liabilities
|
3,590,064
|
|
|
3,597,600
|
|
|
3,795,103
|
|
|||
Long-term debt, net
|
4,744,694
|
|
|
4,887,667
|
|
|
4,108,511
|
|
|||
Lease liabilities
|
39,516
|
|
|
—
|
|
|
—
|
|
|||
Pension liabilities
|
98,862
|
|
|
107,776
|
|
|
54,921
|
|
|||
Postretirement healthcare liabilities
|
93,897
|
|
|
94,453
|
|
|
113,031
|
|
|||
Other long-term liabilities
|
215,969
|
|
|
204,219
|
|
|
210,106
|
|
|||
Commitments and contingencies (Note 17)
|
|
|
|
|
|
||||||
Shareholders’ equity:
|
|
|
|
|
|
||||||
Preferred stock, none issued
|
—
|
|
|
—
|
|
|
—
|
|
|||
Common stock
|
1,826
|
|
|
1,819
|
|
|
1,818
|
|
|||
Additional paid-in-capital
|
1,465,581
|
|
|
1,459,620
|
|
|
1,432,692
|
|
|||
Retained earnings
|
2,074,669
|
|
|
2,007,583
|
|
|
1,725,626
|
|
|||
Accumulated other comprehensive loss
|
(622,051
|
)
|
|
(629,684
|
)
|
|
(406,604
|
)
|
|||
Treasury stock, at cost
|
(1,122,414
|
)
|
|
(1,065,389
|
)
|
|
(757,583
|
)
|
|||
Total shareholders’ equity
|
1,797,611
|
|
|
1,773,949
|
|
|
1,995,949
|
|
|||
|
$
|
10,580,613
|
|
|
$
|
10,665,664
|
|
|
$
|
10,277,621
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
||||||
|
March 31,
2019 |
|
December 31,
2018 |
|
April 1,
2018 |
||||||
Balances held by consolidated variable interest entities (Note 13)
|
|
|
|
|
|
||||||
Current finance receivables, net
|
$
|
130,454
|
|
|
$
|
175,043
|
|
|
$
|
182,033
|
|
Other assets
|
$
|
1,416
|
|
|
$
|
1,563
|
|
|
$
|
2,175
|
|
Non-current finance receivables, net
|
$
|
480,936
|
|
|
$
|
591,839
|
|
|
$
|
464,185
|
|
Restricted cash - current and non-current
|
$
|
39,764
|
|
|
$
|
47,203
|
|
|
$
|
55,140
|
|
Current portion of long-term debt, net
|
$
|
137,488
|
|
|
$
|
189,693
|
|
|
$
|
205,055
|
|
Long-term debt, net
|
$
|
408,153
|
|
|
$
|
488,191
|
|
|
$
|
361,049
|
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Treasury
Balance
|
|
Total
|
|||||||||||||||
|
|
Issued
Shares
|
|
Balance
|
|
||||||||||||||||||||||
Balance December 31, 2018
|
|
181,931,225
|
|
|
$
|
1,819
|
|
|
$
|
1,459,620
|
|
|
$
|
2,007,583
|
|
|
$
|
(629,684
|
)
|
|
$
|
(1,065,389
|
)
|
|
$
|
1,773,949
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
127,945
|
|
|
—
|
|
|
—
|
|
|
127,945
|
|
||||||
Total other comprehensive income, net of tax (Note 18)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,633
|
|
|
—
|
|
|
7,633
|
|
||||||
Dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(60,859
|
)
|
|
—
|
|
|
—
|
|
|
(60,859
|
)
|
||||||
Repurchase of common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(61,712
|
)
|
|
(61,712
|
)
|
||||||
Share-based compensation
|
|
702,687
|
|
|
7
|
|
|
5,961
|
|
|
—
|
|
|
—
|
|
|
4,687
|
|
|
10,655
|
|
||||||
Balance March 31, 2019
|
|
182,633,912
|
|
|
$
|
1,826
|
|
|
$
|
1,465,581
|
|
|
$
|
2,074,669
|
|
|
$
|
(622,051
|
)
|
|
$
|
(1,122,414
|
)
|
|
$
|
1,797,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Treasury
Balance
|
|
Total
|
|||||||||||||||
|
|
Issued
Shares
|
|
Balance
|
|
||||||||||||||||||||||
Balance December 31, 2017
|
|
181,286,547
|
|
|
$
|
1,813
|
|
|
$
|
1,422,808
|
|
|
$
|
1,607,570
|
|
|
$
|
(500,049
|
)
|
|
$
|
(687,865
|
)
|
|
$
|
1,844,277
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
174,763
|
|
|
—
|
|
|
—
|
|
|
174,763
|
|
||||||
Total other comprehensive income, net of tax (Note 18)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
93,445
|
|
|
—
|
|
|
93,445
|
|
||||||
Dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(62,731
|
)
|
|
—
|
|
|
—
|
|
|
(62,731
|
)
|
||||||
Repurchase of common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(72,968
|
)
|
|
(72,968
|
)
|
||||||
Share-based compensation
|
|
489,896
|
|
|
5
|
|
|
9,884
|
|
|
—
|
|
|
—
|
|
|
3,250
|
|
|
13,139
|
|
||||||
Cumulative effect of change in accounting
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,024
|
|
|
—
|
|
|
—
|
|
|
6,024
|
|
||||||
Balance April 1, 2018
|
|
181,776,443
|
|
|
$
|
1,818
|
|
|
$
|
1,432,692
|
|
|
$
|
1,725,626
|
|
|
$
|
(406,604
|
)
|
|
$
|
(757,583
|
)
|
|
$
|
1,995,949
|
|
|
|
Three months ended
|
||||||
|
|
March 31,
2019 |
|
April 1,
2018 |
||||
Motorcycles and Related Products:
|
|
|
|
|
||||
Motorcycles
|
|
$
|
964,575
|
|
|
$
|
1,121,673
|
|
Parts & Accessories
|
|
159,703
|
|
|
169,075
|
|
||
General Merchandise
|
|
55,401
|
|
|
56,601
|
|
||
Licensing
|
|
8,577
|
|
|
8,358
|
|
||
Other
|
|
7,381
|
|
|
8,240
|
|
||
Revenue from Motorcycles and Related Products
|
|
1,195,637
|
|
|
1,363,947
|
|
||
Financial Services:
|
|
|
|
|
||||
Interest income
|
|
159,804
|
|
|
154,041
|
|
||
Securitization and servicing fee income
|
|
189
|
|
|
352
|
|
||
Other income
|
|
28,750
|
|
|
23,781
|
|
||
Revenue from Financial Services
|
|
188,743
|
|
|
178,174
|
|
||
Total revenue
|
|
$
|
1,384,380
|
|
|
$
|
1,542,121
|
|
|
|
March 31,
2019 |
|
April 1,
2018 |
||||
Balance, beginning of year
|
|
$
|
29,055
|
|
|
$
|
23,441
|
|
Balance, end of period
|
|
30,228
|
|
|
27,624
|
|
|
Three months ended March 31, 2019
|
||||||||||||||||||||||
|
Manufacturing Optimization Plan
|
|
Reorganization Plan
|
|
|
||||||||||||||||||
|
Employee Termination Benefits
|
|
Accelerated Depreciation
|
|
Other
|
|
Total
|
|
Employee Termination Benefits
|
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
24,958
|
|
|
$
|
—
|
|
|
$
|
79
|
|
|
$
|
25,037
|
|
|
$
|
3,461
|
|
|
$
|
28,498
|
|
Restructuring expense (benefit)
|
9
|
|
|
8,379
|
|
|
5,636
|
|
|
14,024
|
|
|
(394
|
)
|
|
13,630
|
|
||||||
Utilized - cash
|
(2,600
|
)
|
|
—
|
|
|
(5,528
|
)
|
|
(8,128
|
)
|
|
(2,014
|
)
|
|
(10,142
|
)
|
||||||
Utilized - non cash
|
—
|
|
|
(8,379
|
)
|
|
—
|
|
|
(8,379
|
)
|
|
—
|
|
|
(8,379
|
)
|
||||||
Foreign currency changes
|
34
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
(2
|
)
|
|
32
|
|
||||||
Balance, end of period
|
$
|
22,401
|
|
|
$
|
—
|
|
|
$
|
187
|
|
|
$
|
22,588
|
|
|
$
|
1,051
|
|
|
$
|
23,639
|
|
|
Three months ended April 1, 2018
|
||||||||||||||||||||||
|
Manufacturing Optimization Plan
|
|
Reorganization Plan
|
|
|
||||||||||||||||||
|
Employee Termination Benefits
|
|
Accelerated Depreciation
|
|
Other
|
|
Total
|
|
Employee Termination Benefits
|
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restructuring expense
|
40,791
|
|
|
5,613
|
|
|
438
|
|
|
46,842
|
|
|
—
|
|
|
46,842
|
|
||||||
Utilized - cash
|
(2,300
|
)
|
|
—
|
|
|
(374
|
)
|
|
(2,674
|
)
|
|
—
|
|
|
(2,674
|
)
|
||||||
Utilized - non cash
|
—
|
|
|
(5,613
|
)
|
|
—
|
|
|
(5,613
|
)
|
|
—
|
|
|
(5,613
|
)
|
||||||
Foreign currency changes
|
(204
|
)
|
|
—
|
|
|
(1
|
)
|
|
(205
|
)
|
|
—
|
|
|
(205
|
)
|
||||||
Balance, end of period
|
$
|
38,287
|
|
|
$
|
—
|
|
|
$
|
63
|
|
|
$
|
38,350
|
|
|
$
|
—
|
|
|
$
|
38,350
|
|
|
|
|
Three months ended
|
||||||
|
March 31,
2019 |
|
April 1,
2018 |
||||
Numerator
:
|
|
|
|
||||
Net income used in computing basic and diluted earnings per share
|
$
|
127,945
|
|
|
$
|
174,763
|
|
Denominator
:
|
|
|
|
||||
Denominator for basic earnings per share - weighted-average common shares
|
159,311
|
|
|
168,139
|
|
||
Effect of dilutive securities - employee stock compensation plan
|
715
|
|
|
1,035
|
|
||
Denominator for diluted earnings per share - adjusted weighted-average shares outstanding
|
160,026
|
|
|
169,174
|
|
||
Earnings per common share:
|
|
|
|
||||
Basic
|
$
|
0.80
|
|
|
$
|
1.04
|
|
Diluted
|
$
|
0.80
|
|
|
$
|
1.03
|
|
|
March 31,
2019 |
|
December 31,
2018 |
|
April 1,
2018 |
||||||
Debt securities
|
$
|
10,003
|
|
|
$
|
10,007
|
|
|
$
|
—
|
|
Mutual funds
|
49,896
|
|
|
44,243
|
|
|
49,402
|
|
|||
Total marketable securities
|
$
|
59,899
|
|
|
$
|
54,250
|
|
|
$
|
49,402
|
|
|
March 31,
2019 |
|
December 31,
2018 |
|
April 1,
2018 |
||||||
Raw materials and work in process
|
$
|
204,759
|
|
|
$
|
177,110
|
|
|
$
|
177,652
|
|
Motorcycle finished goods
|
304,386
|
|
|
301,630
|
|
|
289,046
|
|
|||
Parts & accessories and general merchandise
|
145,300
|
|
|
136,027
|
|
|
150,228
|
|
|||
Inventory at lower of FIFO cost or net realizable value
|
654,445
|
|
|
614,767
|
|
|
616,926
|
|
|||
Excess of FIFO over LIFO cost
|
(58,639
|
)
|
|
(58,639
|
)
|
|
(52,355
|
)
|
|||
Total inventories, net
|
$
|
595,806
|
|
|
$
|
556,128
|
|
|
$
|
564,571
|
|
|
Three months ended
|
||||||
|
March 31,
2019 |
|
April 1,
2018 |
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
127,945
|
|
|
$
|
174,763
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization of intangibles
|
64,372
|
|
|
62,473
|
|
||
Amortization of deferred loan origination costs
|
18,968
|
|
|
20,116
|
|
||
Amortization of financing origination fees
|
2,194
|
|
|
2,028
|
|
||
Provision for long-term employee benefits
|
3,156
|
|
|
9,747
|
|
||
Employee benefit plan contributions and payments
|
(2,507
|
)
|
|
(5,486
|
)
|
||
Stock compensation expense
|
6,537
|
|
|
7,962
|
|
||
Net change in wholesale finance receivables related to sales
|
(237,569
|
)
|
|
(239,902
|
)
|
||
Provision for credit losses
|
34,491
|
|
|
30,052
|
|
||
Deferred income taxes
|
5,981
|
|
|
3,188
|
|
||
Other, net
|
2,731
|
|
|
(1,902
|
)
|
||
Changes in current assets and liabilities:
|
|
|
|
||||
Accounts receivable, net
|
(49,746
|
)
|
|
(17,688
|
)
|
||
Finance receivables - accrued interest and other
|
92
|
|
|
4,758
|
|
||
Inventories
|
(40,600
|
)
|
|
(21,542
|
)
|
||
Accounts payable and accrued liabilities
|
123,975
|
|
|
148,923
|
|
||
Derivative instruments
|
867
|
|
|
702
|
|
||
Other
|
(28,216
|
)
|
|
13,402
|
|
||
Total adjustments
|
(95,274
|
)
|
|
16,831
|
|
||
Net cash provided by operating activities
|
$
|
32,671
|
|
|
$
|
191,594
|
|
|
March 31,
2019 |
|
December 31,
2018 |
|
April 1,
2018 |
||||||
Retail
|
$
|
6,290,036
|
|
|
$
|
6,328,201
|
|
|
$
|
6,064,192
|
|
Wholesale
|
1,339,428
|
|
|
1,083,615
|
|
|
1,252,600
|
|
|||
Total finance receivables
|
7,629,464
|
|
|
7,411,816
|
|
|
7,316,792
|
|
|||
Allowance for credit losses
|
(190,872
|
)
|
|
(189,885
|
)
|
|
(190,350
|
)
|
|||
Finance receivables, net
|
$
|
7,438,592
|
|
|
$
|
7,221,931
|
|
|
$
|
7,126,442
|
|
|
Three months ended March 31, 2019
|
||||||||||
|
Retail
|
|
Wholesale
|
|
Total
|
||||||
Balance, beginning of period
|
$
|
182,098
|
|
|
$
|
7,787
|
|
|
$
|
189,885
|
|
Provision for credit losses
|
32,832
|
|
|
1,659
|
|
|
34,491
|
|
|||
Charge-offs
|
(44,721
|
)
|
|
—
|
|
|
(44,721
|
)
|
|||
Recoveries
|
11,217
|
|
|
—
|
|
|
11,217
|
|
|||
Balance, end of period
|
$
|
181,426
|
|
|
$
|
9,446
|
|
|
$
|
190,872
|
|
|
|
|
|
|
|
||||||
|
Three months ended April 1, 2018
|
||||||||||
|
Retail
|
|
Wholesale
|
|
Total
|
||||||
Balance, beginning of period
|
$
|
186,254
|
|
|
$
|
6,217
|
|
|
$
|
192,471
|
|
Provision for credit losses
|
28,069
|
|
|
1,983
|
|
|
30,052
|
|
|||
Charge-offs
|
(45,081
|
)
|
|
—
|
|
|
(45,081
|
)
|
|||
Recoveries
|
12,908
|
|
|
—
|
|
|
12,908
|
|
|||
Balance, end of period
|
$
|
182,150
|
|
|
$
|
8,200
|
|
|
$
|
190,350
|
|
|
March 31, 2019
|
||||||||||
|
Retail
|
|
Wholesale
|
|
Total
|
||||||
Allowance for credit losses, ending balance:
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Collectively evaluated for impairment
|
181,426
|
|
|
9,446
|
|
|
190,872
|
|
|||
Total allowance for credit losses
|
$
|
181,426
|
|
|
$
|
9,446
|
|
|
$
|
190,872
|
|
Finance receivables, ending balance:
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Collectively evaluated for impairment
|
6,290,036
|
|
|
1,339,428
|
|
|
7,629,464
|
|
|||
Total finance receivables
|
$
|
6,290,036
|
|
|
$
|
1,339,428
|
|
|
$
|
7,629,464
|
|
|
|
|
|
|
|
||||||
|
December 31, 2018
|
||||||||||
|
Retail
|
|
Wholesale
|
|
Total
|
||||||
Allowance for credit losses, ending balance:
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Collectively evaluated for impairment
|
182,098
|
|
|
7,787
|
|
|
189,885
|
|
|||
Total allowance for credit losses
|
$
|
182,098
|
|
|
$
|
7,787
|
|
|
$
|
189,885
|
|
Finance receivables, ending balance:
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Collectively evaluated for impairment
|
6,328,201
|
|
|
1,083,615
|
|
|
7,411,816
|
|
|||
Total finance receivables
|
$
|
6,328,201
|
|
|
$
|
1,083,615
|
|
|
$
|
7,411,816
|
|
|
|
|
|
|
|
||||||
|
April 1, 2018
|
||||||||||
|
Retail
|
|
Wholesale
|
|
Total
|
||||||
Allowance for credit losses, ending balance:
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
184
|
|
|
$
|
184
|
|
Collectively evaluated for impairment
|
182,150
|
|
|
8,016
|
|
|
190,166
|
|
|||
Total allowance for credit losses
|
$
|
182,150
|
|
|
$
|
8,200
|
|
|
$
|
190,350
|
|
Finance receivables, ending balance:
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
220
|
|
|
$
|
220
|
|
Collectively evaluated for impairment
|
6,064,192
|
|
|
1,252,380
|
|
|
7,316,572
|
|
|||
Total finance receivables
|
$
|
6,064,192
|
|
|
$
|
1,252,600
|
|
|
$
|
7,316,792
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
Wholesale:
|
|
|
|
|
|
|
|
|
|
||||||||||
No related allowance recorded
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Related allowance recorded
|
251
|
|
|
220
|
|
|
184
|
|
|
251
|
|
|
—
|
|
|||||
Total impaired wholesale finance receivables
|
$
|
251
|
|
|
$
|
220
|
|
|
$
|
184
|
|
|
$
|
251
|
|
|
$
|
—
|
|
|
March 31, 2019
|
||||||||||||||||||||||
|
Current
|
|
31-60 Days
Past Due
|
|
61-90 Days
Past Due
|
|
Greater than
90 Days
Past Due
|
|
Total
Past Due
|
|
Total
Finance
Receivables
|
||||||||||||
Retail
|
$
|
6,088,894
|
|
|
$
|
119,150
|
|
|
$
|
43,028
|
|
|
$
|
38,964
|
|
|
$
|
201,142
|
|
|
$
|
6,290,036
|
|
Wholesale
|
1,337,429
|
|
|
862
|
|
|
355
|
|
|
782
|
|
|
1,999
|
|
|
1,339,428
|
|
||||||
Total
|
$
|
7,426,323
|
|
|
$
|
120,012
|
|
|
$
|
43,383
|
|
|
$
|
39,746
|
|
|
$
|
203,141
|
|
|
$
|
7,629,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
December 31, 2018
|
||||||||||||||||||||||
|
Current
|
|
31-60 Days
Past Due
|
|
61-90 Days
Past Due
|
|
Greater than
90 Days
Past Due
|
|
Total
Past Due
|
|
Total
Finance
Receivables
|
||||||||||||
Retail
|
$
|
6,100,186
|
|
|
$
|
136,945
|
|
|
$
|
49,825
|
|
|
$
|
41,245
|
|
|
$
|
228,015
|
|
|
$
|
6,328,201
|
|
Wholesale
|
1,081,729
|
|
|
522
|
|
|
273
|
|
|
1,091
|
|
|
1,886
|
|
|
1,083,615
|
|
||||||
Total
|
$
|
7,181,915
|
|
|
$
|
137,467
|
|
|
$
|
50,098
|
|
|
$
|
42,336
|
|
|
$
|
229,901
|
|
|
$
|
7,411,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
April 1, 2018
|
||||||||||||||||||||||
|
Current
|
|
31-60 Days
Past Due
|
|
61-90 Days
Past Due
|
|
Greater than
90 Days
Past Due
|
|
Total
Past Due
|
|
Total
Finance
Receivables
|
||||||||||||
Retail
|
$
|
5,897,632
|
|
|
$
|
105,366
|
|
|
$
|
33,275
|
|
|
$
|
27,919
|
|
|
$
|
166,560
|
|
|
$
|
6,064,192
|
|
Wholesale
|
1,247,175
|
|
|
549
|
|
|
4,705
|
|
|
171
|
|
|
5,425
|
|
|
1,252,600
|
|
||||||
Total
|
$
|
7,144,807
|
|
|
$
|
105,915
|
|
|
$
|
37,980
|
|
|
$
|
28,090
|
|
|
$
|
171,985
|
|
|
$
|
7,316,792
|
|
|
March 31,
2019 |
|
December 31,
2018 |
|
April 1,
2018 |
||||||
Prime
|
$
|
5,160,942
|
|
|
$
|
5,183,754
|
|
|
$
|
4,923,237
|
|
Sub-prime
|
1,129,094
|
|
|
1,144,447
|
|
|
1,140,955
|
|
|||
Total
|
$
|
6,290,036
|
|
|
$
|
6,328,201
|
|
|
$
|
6,064,192
|
|
|
March 31,
2019 |
|
December 31,
2018 |
|
April 1,
2018 |
||||||
Doubtful
|
$
|
8,679
|
|
|
$
|
2,210
|
|
|
$
|
1,582
|
|
Substandard
|
7,866
|
|
|
9,660
|
|
|
3,368
|
|
|||
Special Mention
|
11,484
|
|
|
10,299
|
|
|
33,085
|
|
|||
Medium Risk
|
917
|
|
|
25,802
|
|
|
10,512
|
|
|||
Low Risk
|
1,310,482
|
|
|
1,035,644
|
|
|
1,204,053
|
|
|||
Total
|
$
|
1,339,428
|
|
|
$
|
1,083,615
|
|
|
$
|
1,252,600
|
|
|
|
Derivatives Designated as Cash Flow Hedging
Instruments Under ASC Topic 815 |
||||||||||||||||||||||||||||||||||
|
|
March 31, 2019
|
|
December 31, 2018
|
|
April 1, 2018
|
||||||||||||||||||||||||||||||
Derivative
|
|
Notional
Value
|
|
Other Current Assets
|
|
Accrued Liabil-ities
|
|
Notional
Value
|
|
Other Current Assets
|
|
Accrued Liabil-ities
|
|
Notional
Value
|
|
Other Current Assets
|
|
Accrued Liabil-ities
|
||||||||||||||||||
Foreign currency contracts
|
|
$
|
480,937
|
|
|
$
|
15,576
|
|
|
$
|
646
|
|
|
$
|
442,976
|
|
|
$
|
15,071
|
|
|
$
|
313
|
|
|
$
|
720,869
|
|
|
$
|
3,442
|
|
|
$
|
22,807
|
|
Commodity contracts
|
|
589
|
|
|
—
|
|
|
6
|
|
|
827
|
|
|
—
|
|
|
46
|
|
|
728
|
|
|
—
|
|
|
11
|
|
|||||||||
Interest rate swaps
|
|
900,000
|
|
|
—
|
|
|
6,893
|
|
|
900,000
|
|
|
—
|
|
|
4,494
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total
|
|
$
|
1,381,526
|
|
|
$
|
15,576
|
|
|
$
|
7,545
|
|
|
$
|
1,343,803
|
|
|
$
|
15,071
|
|
|
$
|
4,853
|
|
|
$
|
721,597
|
|
|
$
|
3,442
|
|
|
$
|
22,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
Derivatives Not Designated as Hedging
Instruments Under ASC Topic 815 |
||||||||||||||||||||||||||||||||||
|
|
March 31, 2019
|
|
December 31, 2018
|
|
April 1, 2018
|
||||||||||||||||||||||||||||||
Derivative
|
|
Notional
Value
|
|
Other Current Assets
|
|
Accrued Liabil-ities
|
|
Notional
Value
|
|
Other Current Assets
|
|
Accrued Liabil-ities
|
|
Notional
Value
|
|
Other Current Assets
|
|
Accrued Liabil-ities
|
||||||||||||||||||
Foreign currency contracts
|
|
$
|
157,678
|
|
|
$
|
413
|
|
|
$
|
69
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commodity contracts
|
|
7,225
|
|
|
94
|
|
|
119
|
|
|
5,239
|
|
|
—
|
|
|
463
|
|
|
4,577
|
|
|
171
|
|
|
32
|
|
|||||||||
Total
|
|
$
|
164,903
|
|
|
$
|
507
|
|
|
$
|
188
|
|
|
$
|
5,239
|
|
|
$
|
—
|
|
|
$
|
463
|
|
|
$
|
4,577
|
|
|
$
|
171
|
|
|
$
|
32
|
|
|
|
Amount of Gain/(Loss) Recognized in OCI, before tax
|
|
Amount of Gain/(Loss) Reclassified from AOCL into Income
|
|
Location of Gain/(Loss) Reclassified from AOCL into Income
|
|
Total Statement of Income Amount for Line Items in which the Effects of Cash Flow Hedges are Recorded
|
||||||||||||||||||
|
|
Three months ended
|
|
Three months ended
|
|
|
|
Three months ended
|
||||||||||||||||||
Cash Flow Hedges
|
|
March 31,
2019 |
|
April 1,
2018 |
|
March 31,
2019 |
|
April 1,
2018 |
|
Income statement
line item
|
|
March 31,
2019 |
|
April 1,
2018 |
||||||||||||
Foreign currency contracts
|
|
$
|
4,152
|
|
|
$
|
(5,890
|
)
|
|
$
|
2,453
|
|
|
$
|
(6,709
|
)
|
|
Motorcycles cost of goods sold
|
|
$
|
848,198
|
|
|
$
|
890,174
|
|
Commodity contracts
|
|
30
|
|
|
(16
|
)
|
|
(10
|
)
|
|
(73
|
)
|
|
Motorcycles cost of goods sold
|
|
$
|
848,198
|
|
|
$
|
890,174
|
|
||||
Treasury rate locks
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
(90
|
)
|
|
Interest expense
|
|
$
|
7,731
|
|
|
$
|
7,690
|
|
||||
Treasury rate locks
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
|
(36
|
)
|
|
Financial Services interest expense
|
|
$
|
52,324
|
|
|
$
|
48,450
|
|
||||
Interest rate swaps
|
|
(3,005
|
)
|
|
—
|
|
|
(606
|
)
|
|
—
|
|
|
Financial Services interest expense
|
|
$
|
52,324
|
|
|
$
|
48,450
|
|
||||
Total
|
|
$
|
1,177
|
|
|
$
|
(5,906
|
)
|
|
$
|
1,715
|
|
|
$
|
(6,908
|
)
|
|
|
|
|
|
|
|
|
|
Amount of Gain Recognized in Income on Derivative
|
||||||
|
|
Three months ended
|
||||||
Derivatives Not Designated as Hedges
|
|
March 31,
2019 |
|
April 1,
2018 |
||||
Foreign currency contracts
|
|
$
|
887
|
|
|
$
|
—
|
|
Commodity contracts
|
|
317
|
|
|
6
|
|
||
Total
|
|
$
|
1,204
|
|
|
$
|
6
|
|
|
March 31,
2019 |
||
Lease assets
|
$
|
55,305
|
|
|
|
||
Accrued liabilities
|
$
|
17,391
|
|
Lease liabilities
|
39,516
|
|
|
|
$
|
56,907
|
|
|
Operating Leases
|
||
2019
|
$
|
14,743
|
|
2020
|
15,023
|
|
|
2021
|
12,467
|
|
|
2022
|
8,837
|
|
|
2023
|
3,511
|
|
|
Thereafter
|
6,291
|
|
|
Total present value of lease payments
|
60,872
|
|
|
Less present value discount
|
3,965
|
|
|
Total lease liability
|
$
|
56,907
|
|
|
Three months ended
|
||
|
March 31,
2019 |
||
Cash paid for amounts included in the measurement of lease liabilities (in millions):
|
|
||
Operating cash flows
|
$
|
5,361
|
|
Right-of-use assets obtained in exchange for lease obligations (in millions)
|
298
|
|
|
March 31,
2019 |
|
Weighted average remaining lease term (in years)
|
4.61
|
|
Weighted average discount rate
|
3.3
|
%
|
|
|
March 31,
2019 |
|
December 31,
2018 |
|
April 1,
2018 |
||||||
Unsecured commercial paper
|
|
$
|
1,192,925
|
|
|
$
|
1,135,810
|
|
|
$
|
1,036,976
|
|
Total short-term debt
|
|
$
|
1,192,925
|
|
|
$
|
1,135,810
|
|
|
$
|
1,036,976
|
|
|
|
March 31,
2019 |
|
December 31,
2018 |
|
April 1,
2018 |
||||||
Secured debt (Note 13)
|
|
|
|
|
|
|
||||||
Asset-backed Canadian commercial paper conduit facility
|
|
$
|
142,676
|
|
|
$
|
155,951
|
|
|
$
|
158,162
|
|
Asset-backed U.S. commercial paper conduit facilities
|
|
526,947
|
|
|
582,717
|
|
|
281,311
|
|
|||
Asset-backed securitization debt
|
|
18,712
|
|
|
95,216
|
|
|
285,130
|
|
|||
Less: unamortized discount and debt issuance costs
|
|
(18
|
)
|
|
(49
|
)
|
|
(337
|
)
|
|||
Total secured debt
|
|
688,317
|
|
|
833,835
|
|
|
724,266
|
|
|||
|
|
|
|
|
|
|
||||||
Unsecured notes (at par value)
|
|
|
|
|
|
|
||||||
6.80% Medium-term notes due in 2018, issued May 2008
|
|
—
|
|
|
—
|
|
|
877,488
|
|
|||
2.25% Medium-term notes due in 2019, issued January 2016
|
|
—
|
|
|
600,000
|
|
|
600,000
|
|
|||
Floating-rate Medium-term notes due in 2019, issued March 2017
(a)
|
|
—
|
|
|
150,000
|
|
|
150,000
|
|
|||
2.40% Medium-term notes due in 2019, issued September 2014
|
|
600,000
|
|
|
600,000
|
|
|
600,000
|
|
|||
2.15% Medium-term notes due in 2020, issued February 2015
|
|
600,000
|
|
|
600,000
|
|
|
600,000
|
|
|||
Floating-rate Medium-term notes due in 2020, issued May 2018
(b)
|
|
450,000
|
|
|
450,000
|
|
|
—
|
|
|||
2.40% Medium-term notes due in 2020, issued March 2017
|
|
350,000
|
|
|
350,000
|
|
|
350,000
|
|
|||
2.85% Medium-term notes due in 2021, issued January 2016
|
|
600,000
|
|
|
600,000
|
|
|
600,000
|
|
|||
Floating-rate Medium-term notes due in 2021, issued November 2018
(c)
|
|
450,000
|
|
|
450,000
|
|
|
—
|
|
|||
3.55% Medium-term notes due in 2021, issued May 2018
|
|
350,000
|
|
|
350,000
|
|
|
—
|
|
|||
4.05% Medium-term notes due in 2022, issued February 2019
|
|
550,000
|
|
|
—
|
|
|
—
|
|
|||
2.55% Medium-term notes due in 2022, issued June 2017
|
|
400,000
|
|
|
400,000
|
|
|
400,000
|
|
|||
3.35% Medium-term notes due in 2023, issued February 2018
|
|
350,000
|
|
|
350,000
|
|
|
350,000
|
|
|||
3.50% Senior unsecured notes due in 2025, issued July 2015
|
|
450,000
|
|
|
450,000
|
|
|
450,000
|
|
|||
4.625% Senior unsecured notes due in 2045, issued July 2015
|
|
300,000
|
|
|
300,000
|
|
|
300,000
|
|
|||
Less: unamortized discount and debt issuance costs
|
|
(21,573
|
)
|
|
(20,369
|
)
|
|
(20,564
|
)
|
|||
Gross long-term debt
|
|
6,116,744
|
|
|
6,463,466
|
|
|
5,981,190
|
|
|||
Less: current portion of long-term debt, net of unamortized discount and
debt issuance costs
|
|
(1,372,050
|
)
|
|
(1,575,799
|
)
|
|
(1,872,679
|
)
|
|||
Total long-term debt
|
|
$
|
4,744,694
|
|
|
$
|
4,887,667
|
|
|
$
|
4,108,511
|
|
(a)
|
Floating interest rate based on LIBOR plus 35 bps.
|
(b)
|
Floating interest rate based on LIBOR plus 50 bps. The Company utilized an interest rate swap designated as a cash flow hedge to convert this from a floating rate basis to a fixed rate basis. Refer to Note 10 of the Notes to the Consolidated Financial Statements for further details.
|
(c)
|
Floating interest rate based on LIBOR plus 94 bps. The Company utilized an interest rate swap designated as a cash flow hedge to convert this from a floating rate basis to a fixed rate basis. Refer to Note 10 of the Notes to the Consolidated Financial Statements for further details.
|
|
March 31, 2019
|
||||||||||||||||||||||
|
Finance receivables
|
|
Allowance for credit losses
|
|
Restricted cash
|
|
Other assets
|
|
Total assets
|
|
Asset-backed debt
|
||||||||||||
On-balance sheet assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-backed securitizations
|
$
|
62,771
|
|
|
$
|
(1,855
|
)
|
|
$
|
8,199
|
|
|
$
|
134
|
|
|
$
|
69,249
|
|
|
$
|
18,694
|
|
Asset-backed U.S. commercial paper conduit facilities
|
567,295
|
|
|
(16,821
|
)
|
|
31,565
|
|
|
1,282
|
|
|
583,321
|
|
|
526,947
|
|
||||||
Unconsolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-backed Canadian commercial paper conduit facility
|
164,779
|
|
|
(3,003
|
)
|
|
9,767
|
|
|
282
|
|
|
171,825
|
|
|
142,676
|
|
||||||
Total on-balance sheet assets and liabilities
|
$
|
794,845
|
|
|
$
|
(21,679
|
)
|
|
$
|
49,531
|
|
|
$
|
1,698
|
|
|
$
|
824,395
|
|
|
$
|
688,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Finance receivables
|
|
Allowance for credit losses
|
|
Restricted cash
|
|
Other assets
|
|
Total assets
|
|
Asset-backed debt
|
||||||||||||
On-balance sheet assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-backed securitizations
|
$
|
158,718
|
|
|
$
|
(4,691
|
)
|
|
$
|
17,191
|
|
|
$
|
329
|
|
|
$
|
171,547
|
|
|
$
|
95,167
|
|
Asset-backed U.S. commercial paper conduit facilities
|
631,588
|
|
|
(18,733
|
)
|
|
30,012
|
|
|
1,234
|
|
|
644,101
|
|
|
582,717
|
|
||||||
Unconsolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-backed Canadian commercial paper conduit facility
|
181,774
|
|
|
(3,130
|
)
|
|
8,779
|
|
|
343
|
|
|
187,766
|
|
|
155,951
|
|
||||||
Total on-balance sheet assets and liabilities
|
$
|
972,080
|
|
|
$
|
(26,554
|
)
|
|
$
|
55,982
|
|
|
$
|
1,906
|
|
|
$
|
1,003,414
|
|
|
$
|
833,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
April 1, 2018
|
||||||||||||||||||||||
|
Finance receivables
|
|
Allowance for credit losses
|
|
Restricted cash
|
|
Other assets
|
|
Total assets
|
|
Asset-backed debt
|
||||||||||||
On-balance sheet assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-backed securitizations
|
$
|
367,584
|
|
|
$
|
(11,387
|
)
|
|
$
|
38,207
|
|
|
$
|
1,207
|
|
|
$
|
395,611
|
|
|
$
|
284,793
|
|
Asset-backed U.S. commercial paper conduit facilities
|
299,318
|
|
|
(9,297
|
)
|
|
16,933
|
|
|
968
|
|
|
307,922
|
|
|
281,311
|
|
||||||
Unconsolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-backed Canadian commercial paper conduit facility
|
183,073
|
|
|
(3,085
|
)
|
|
10,600
|
|
|
320
|
|
|
190,908
|
|
|
158,162
|
|
||||||
Total on-balance sheet assets and liabilities
|
$
|
849,975
|
|
|
$
|
(23,769
|
)
|
|
$
|
65,740
|
|
|
$
|
2,495
|
|
|
$
|
894,441
|
|
|
$
|
724,266
|
|
|
March 31,
2019 |
|
December 31,
2018 |
|
April 1,
2018 |
||||||
On-balance sheet retail motorcycle finance receivables
|
$
|
6,159,058
|
|
|
$
|
6,185,350
|
|
|
$
|
5,923,564
|
|
Off-balance sheet retail motorcycle finance receivables
|
67,062
|
|
|
79,613
|
|
|
127,643
|
|
|||
Total serviced retail motorcycle finance receivables
|
$
|
6,226,120
|
|
|
$
|
6,264,963
|
|
|
$
|
6,051,207
|
|
|
Three months ended
|
||||||
|
March 31,
2019 |
|
April 1,
2018 |
||||
On-balance sheet retail motorcycle finance receivables
|
$
|
33,504
|
|
|
$
|
32,173
|
|
Off-balance sheet retail motorcycle finance receivables
|
231
|
|
|
361
|
|
||
Total serviced retail motorcycle finance receivables
|
$
|
33,735
|
|
|
$
|
32,534
|
|
|
March 31, 2019
|
||||||||||||||
|
Balance
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
498,207
|
|
|
$
|
321,300
|
|
|
$
|
176,907
|
|
|
$
|
—
|
|
Marketable securities
|
59,899
|
|
|
49,896
|
|
|
10,003
|
|
|
—
|
|
||||
Derivatives
|
16,083
|
|
|
—
|
|
|
16,083
|
|
|
—
|
|
||||
Total
|
$
|
574,189
|
|
|
$
|
371,196
|
|
|
$
|
202,993
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
$
|
7,733
|
|
|
$
|
—
|
|
|
$
|
7,733
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2018
|
||||||||||||||
|
Balance
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
998,601
|
|
|
$
|
728,800
|
|
|
$
|
269,801
|
|
|
$
|
—
|
|
Marketable securities
|
54,250
|
|
|
44,243
|
|
|
10,007
|
|
|
—
|
|
||||
Derivatives
|
15,071
|
|
|
—
|
|
|
15,071
|
|
|
—
|
|
||||
Total
|
$
|
1,067,922
|
|
|
$
|
773,043
|
|
|
$
|
294,879
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
$
|
5,316
|
|
|
$
|
—
|
|
|
$
|
5,316
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
April 1, 2018
|
||||||||||||||
|
Balance
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
653,124
|
|
|
$
|
326,324
|
|
|
$
|
326,800
|
|
|
$
|
—
|
|
Marketable securities
|
49,402
|
|
|
49,402
|
|
|
—
|
|
|
—
|
|
||||
Derivatives
|
3,613
|
|
|
—
|
|
|
3,613
|
|
|
—
|
|
||||
Total
|
$
|
706,139
|
|
|
$
|
375,726
|
|
|
$
|
330,413
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
$
|
22,850
|
|
|
$
|
—
|
|
|
$
|
22,850
|
|
|
$
|
—
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
April 1, 2018
|
||||||||||||||||||
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Finance receivables, net
|
$
|
7,520,418
|
|
|
$
|
7,438,592
|
|
|
$
|
7,304,334
|
|
|
$
|
7,221,931
|
|
|
$
|
7,195,908
|
|
|
$
|
7,126,442
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured commercial paper
|
$
|
1,192,925
|
|
|
$
|
1,192,925
|
|
|
$
|
1,135,810
|
|
|
$
|
1,135,810
|
|
|
$
|
1,036,976
|
|
|
$
|
1,036,976
|
|
Asset-backed U.S. commercial paper conduit facilities
|
$
|
526,947
|
|
|
$
|
526,947
|
|
|
$
|
582,717
|
|
|
$
|
582,717
|
|
|
$
|
281,311
|
|
|
$
|
281,311
|
|
Asset-backed Canadian commercial paper conduit facility
|
$
|
142,676
|
|
|
$
|
142,676
|
|
|
$
|
155,951
|
|
|
$
|
155,951
|
|
|
$
|
158,162
|
|
|
$
|
158,162
|
|
Medium-term notes
|
$
|
4,675,767
|
|
|
$
|
4,685,636
|
|
|
$
|
4,829,671
|
|
|
$
|
4,887,007
|
|
|
$
|
4,486,399
|
|
|
$
|
4,514,798
|
|
Senior unsecured notes
|
$
|
719,544
|
|
|
$
|
742,791
|
|
|
$
|
707,198
|
|
|
$
|
742,624
|
|
|
$
|
750,440
|
|
|
$
|
742,126
|
|
Asset-backed securitization debt
|
$
|
18,674
|
|
|
$
|
18,694
|
|
|
$
|
94,974
|
|
|
$
|
95,167
|
|
|
$
|
283,591
|
|
|
$
|
284,793
|
|
|
Three months ended
|
||||||
|
March 31,
2019 |
|
April 1,
2018 |
||||
Balance, beginning of period
|
$
|
131,740
|
|
|
$
|
94,202
|
|
Warranties issued during the period
|
11,617
|
|
|
14,606
|
|
||
Settlements made during the period
|
(19,617
|
)
|
|
(16,638
|
)
|
||
Recalls and changes to pre-existing warranty liabilities
|
(1,353
|
)
|
|
2,905
|
|
||
Balance, end of period
|
$
|
122,387
|
|
|
$
|
95,075
|
|
|
Three months ended
|
||||||
|
March 31,
2019 |
|
April 1,
2018 |
||||
Pension and SERPA Benefits
|
|
|
|
||||
Service cost
|
$
|
6,632
|
|
|
$
|
8,155
|
|
Interest cost
|
21,371
|
|
|
20,590
|
|
||
Expected return on plan assets
|
(35,581
|
)
|
|
(36,891
|
)
|
||
Amortization of unrecognized:
|
|
|
|
||||
Prior service credit
|
(483
|
)
|
|
(106
|
)
|
||
Net loss
|
11,128
|
|
|
15,819
|
|
||
Curtailment loss
|
—
|
|
|
1,018
|
|
||
Net periodic benefit cost
|
$
|
3,067
|
|
|
$
|
8,585
|
|
Postretirement Healthcare Benefits
|
|
|
|
||||
Service cost
|
$
|
1,184
|
|
|
$
|
1,812
|
|
Interest cost
|
2,938
|
|
|
2,897
|
|
||
Expected return on plan assets
|
(3,507
|
)
|
|
(3,541
|
)
|
||
Amortization of unrecognized:
|
|
|
|
||||
Prior service credit
|
(595
|
)
|
|
(460
|
)
|
||
Net loss
|
69
|
|
|
454
|
|
||
Net periodic benefit cost
|
$
|
89
|
|
|
$
|
1,162
|
|
|
|
Three months ended March 31, 2019
|
||||||||||||||
|
|
Foreign currency translation adjustments
|
|
Derivative financial instruments
|
|
Pension and postretirement benefit plans
|
|
Total
|
||||||||
Balance, beginning of period
|
|
$
|
(49,608
|
)
|
|
$
|
1,785
|
|
|
$
|
(581,861
|
)
|
|
$
|
(629,684
|
)
|
Other comprehensive income before reclassifications
|
|
606
|
|
|
1,177
|
|
|
—
|
|
|
1,783
|
|
||||
Income tax expense
|
|
(275
|
)
|
|
(314
|
)
|
|
—
|
|
|
(589
|
)
|
||||
Net other comprehensive income before reclassifications
|
|
331
|
|
|
863
|
|
|
—
|
|
|
1,194
|
|
||||
Reclassifications:
|
|
|
|
|
|
|
|
|
||||||||
Realized gains - foreign currency contracts
(a)
|
|
—
|
|
|
(2,453
|
)
|
|
—
|
|
|
(2,453
|
)
|
||||
Realized losses - commodity contracts
(a)
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||
Realized losses - treasury rate locks
(b)
|
|
—
|
|
|
122
|
|
|
—
|
|
|
122
|
|
||||
Realized losses - interest rate swap
(b)
|
|
—
|
|
|
606
|
|
|
—
|
|
|
606
|
|
||||
Prior service credits
(c)
|
|
—
|
|
|
—
|
|
|
(1,078
|
)
|
|
(1,078
|
)
|
||||
Actuarial losses
(c)
|
|
—
|
|
|
—
|
|
|
11,197
|
|
|
11,197
|
|
||||
Total reclassifications before tax
|
|
—
|
|
|
(1,715
|
)
|
|
10,119
|
|
|
8,404
|
|
||||
Income tax benefit (expense)
|
|
—
|
|
|
411
|
|
|
(2,376
|
)
|
|
(1,965
|
)
|
||||
Net reclassifications
|
|
—
|
|
|
(1,304
|
)
|
|
7,743
|
|
|
6,439
|
|
||||
Other comprehensive income (loss)
|
|
331
|
|
|
(441
|
)
|
|
7,743
|
|
|
7,633
|
|
||||
Balance, end of period
|
|
$
|
(49,277
|
)
|
|
$
|
1,344
|
|
|
$
|
(574,118
|
)
|
|
$
|
(622,051
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended April 1, 2018
|
||||||||||||||
|
|
Foreign currency translation adjustments
|
|
Derivative financial instruments
|
|
Pension and postretirement benefit plans
|
|
Total
|
||||||||
Balance, beginning of period
|
|
$
|
(21,852
|
)
|
|
$
|
(17,254
|
)
|
|
$
|
(460,943
|
)
|
|
$
|
(500,049
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
6,915
|
|
|
(5,906
|
)
|
|
96,374
|
|
|
97,383
|
|
||||
Income tax benefit (expense)
|
|
—
|
|
|
1,387
|
|
|
(22,629
|
)
|
|
(21,242
|
)
|
||||
Net other comprehensive income (loss) before reclassifications
|
|
6,915
|
|
|
(4,519
|
)
|
|
73,745
|
|
|
76,141
|
|
||||
Reclassifications:
|
|
|
|
|
|
|
|
|
||||||||
Realized losses - foreign currency contracts
(a)
|
|
—
|
|
|
6,709
|
|
|
—
|
|
|
6,709
|
|
||||
Realized losses - commodity contracts
(a)
|
|
—
|
|
|
73
|
|
|
—
|
|
|
73
|
|
||||
Realized losses - treasury rate locks
(b)
|
|
—
|
|
|
126
|
|
|
—
|
|
|
126
|
|
||||
Prior service credits
(c)
|
|
—
|
|
|
—
|
|
|
(566
|
)
|
|
(566
|
)
|
||||
Actuarial losses
(c)
|
|
—
|
|
|
—
|
|
|
16,273
|
|
|
16,273
|
|
||||
Total reclassifications before tax
|
|
—
|
|
|
6,908
|
|
|
15,707
|
|
|
22,615
|
|
||||
Income tax expense
|
|
—
|
|
|
(1,624
|
)
|
|
(3,687
|
)
|
|
(5,311
|
)
|
||||
Net reclassifications
|
|
—
|
|
|
5,284
|
|
|
12,020
|
|
|
17,304
|
|
||||
Other comprehensive income
|
|
6,915
|
|
|
765
|
|
|
85,765
|
|
|
93,445
|
|
||||
Balance, end of period
|
|
$
|
(14,937
|
)
|
|
$
|
(16,489
|
)
|
|
$
|
(375,178
|
)
|
|
$
|
(406,604
|
)
|
|
|
(a)
|
Amounts reclassified to net income are included in
Motorcycles and Related Products cost of goods sold
|
(b)
|
Amounts reclassified to net income are included in
Interest expense
and
Financial Services interest expense
|
(c)
|
Amounts reclassified are included in the computation of net periodic benefit cost; see Note 16 for information related to pension and postretirement benefit plans
|
|
Three months ended
|
||||||
|
March 31,
2019 |
|
April 1,
2018 |
||||
Motorcycles net revenue
|
$
|
1,195,637
|
|
|
$
|
1,363,947
|
|
Gross profit
|
347,439
|
|
|
473,773
|
|
||
Selling, administrative and engineering expense
|
225,428
|
|
|
254,093
|
|
||
Restructuring expense
|
13,630
|
|
|
46,842
|
|
||
Operating income from Motorcycles
|
108,381
|
|
|
172,838
|
|
||
Financial Services revenue
|
188,743
|
|
|
178,174
|
|
||
Financial Services expense
|
130,012
|
|
|
114,595
|
|
||
Operating income from Financial Services
|
58,731
|
|
|
63,579
|
|
||
Operating income
|
$
|
167,112
|
|
|
$
|
236,417
|
|
|
Three months ended March 31, 2019
|
||||||||||||||
|
HDMC Entities
|
|
HDFS Entities
|
|
Eliminations
|
|
Consolidated
|
||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Motorcycles and Related Products
|
$
|
1,200,009
|
|
|
$
|
—
|
|
|
$
|
(4,372
|
)
|
|
$
|
1,195,637
|
|
Financial Services
|
—
|
|
|
186,753
|
|
|
1,990
|
|
|
188,743
|
|
||||
Total revenue
|
1,200,009
|
|
|
186,753
|
|
|
(2,382
|
)
|
|
1,384,380
|
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Motorcycles and Related Products cost of goods sold
|
848,703
|
|
|
—
|
|
|
(505
|
)
|
|
848,198
|
|
||||
Financial Services interest expense
|
—
|
|
|
52,324
|
|
|
—
|
|
|
52,324
|
|
||||
Financial Services provision for credit losses
|
—
|
|
|
34,491
|
|
|
—
|
|
|
34,491
|
|
||||
Selling, administrative and engineering expense
|
227,992
|
|
|
42,588
|
|
|
(1,955
|
)
|
|
268,625
|
|
||||
Restructuring expense
|
13,630
|
|
|
—
|
|
|
—
|
|
|
13,630
|
|
||||
Total costs and expenses
|
1,090,325
|
|
|
129,403
|
|
|
(2,460
|
)
|
|
1,217,268
|
|
||||
Operating income
|
109,684
|
|
|
57,350
|
|
|
78
|
|
|
167,112
|
|
||||
Other income (expense), net
|
4,660
|
|
|
—
|
|
|
—
|
|
|
4,660
|
|
||||
Investment income
|
51,358
|
|
|
—
|
|
|
(45,000
|
)
|
|
6,358
|
|
||||
Interest expense
|
7,731
|
|
|
—
|
|
|
—
|
|
|
7,731
|
|
||||
Income before provision for income taxes
|
157,971
|
|
|
57,350
|
|
|
(44,922
|
)
|
|
170,399
|
|
||||
Provision for income taxes
|
28,557
|
|
|
13,897
|
|
|
—
|
|
|
42,454
|
|
||||
Net income
|
$
|
129,414
|
|
|
$
|
43,453
|
|
|
$
|
(44,922
|
)
|
|
$
|
127,945
|
|
|
|
|
|
|
|
|
|
|
Three months ended April 1, 2018
|
||||||||||||||
|
HDMC Entities
|
|
HDFS Entities
|
|
Eliminations
|
|
Consolidated
|
||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Motorcycles and Related Products
|
$
|
1,366,246
|
|
|
$
|
—
|
|
|
$
|
(2,299
|
)
|
|
$
|
1,363,947
|
|
Financial Services
|
—
|
|
|
178,460
|
|
|
(286
|
)
|
|
178,174
|
|
||||
Total revenue
|
1,366,246
|
|
|
178,460
|
|
|
(2,585
|
)
|
|
1,542,121
|
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Motorcycles and Related Products cost of goods sold
|
890,174
|
|
|
—
|
|
|
—
|
|
|
890,174
|
|
||||
Financial Services interest expense
|
—
|
|
|
48,450
|
|
|
—
|
|
|
48,450
|
|
||||
Financial Services provision for credit losses
|
—
|
|
|
30,052
|
|
|
—
|
|
|
30,052
|
|
||||
Selling, administrative and engineering expense
|
254,401
|
|
|
38,391
|
|
|
(2,606
|
)
|
|
290,186
|
|
||||
Restructuring expense
|
46,842
|
|
|
—
|
|
|
—
|
|
|
46,842
|
|
||||
Total costs and expenses
|
1,191,417
|
|
|
116,893
|
|
|
(2,606
|
)
|
|
1,305,704
|
|
||||
Operating income
|
174,829
|
|
|
61,567
|
|
|
21
|
|
|
236,417
|
|
||||
Other income (expense), net
|
220
|
|
|
—
|
|
|
—
|
|
|
220
|
|
||||
Investment income
|
111,203
|
|
|
—
|
|
|
(110,000
|
)
|
|
1,203
|
|
||||
Interest expense
|
7,690
|
|
|
—
|
|
|
—
|
|
|
7,690
|
|
||||
Income before provision for income taxes
|
278,562
|
|
|
61,567
|
|
|
(109,979
|
)
|
|
230,150
|
|
||||
Provision for income taxes
|
40,233
|
|
|
15,154
|
|
|
—
|
|
|
55,387
|
|
||||
Net income
|
$
|
238,329
|
|
|
$
|
46,413
|
|
|
$
|
(109,979
|
)
|
|
$
|
174,763
|
|
|
March 31, 2019
|
||||||||||||||
|
HDMC Entities
|
|
HDFS Entities
|
|
Eliminations
|
|
Consolidated
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
384,390
|
|
|
$
|
365,210
|
|
|
$
|
—
|
|
|
$
|
749,600
|
|
Marketable securities
|
10,003
|
|
|
—
|
|
|
—
|
|
|
10,003
|
|
||||
Accounts receivable, net
|
666,782
|
|
|
—
|
|
|
(313,241
|
)
|
|
353,541
|
|
||||
Finance receivables, net
|
—
|
|
|
2,443,899
|
|
|
—
|
|
|
2,443,899
|
|
||||
Inventories
|
595,806
|
|
|
—
|
|
|
—
|
|
|
595,806
|
|
||||
Restricted cash
|
—
|
|
|
43,471
|
|
|
—
|
|
|
43,471
|
|
||||
Other current assets
|
137,167
|
|
|
40,594
|
|
|
—
|
|
|
177,761
|
|
||||
Total current assets
|
1,794,148
|
|
|
2,893,174
|
|
|
(313,241
|
)
|
|
4,374,081
|
|
||||
Finance receivables, net
|
—
|
|
|
4,994,693
|
|
|
—
|
|
|
4,994,693
|
|
||||
Property, plant and equipment, net
|
820,634
|
|
|
55,369
|
|
|
|
|
|
876,003
|
|
||||
Goodwill
|
64,131
|
|
|
—
|
|
|
|
|
|
64,131
|
|
||||
Deferred income taxes
|
96,500
|
|
|
37,487
|
|
|
(999
|
)
|
|
132,988
|
|
||||
Lease assets
|
48,513
|
|
|
6,792
|
|
|
—
|
|
|
55,305
|
|
||||
Other long-term assets
|
154,687
|
|
|
19,149
|
|
|
(90,424
|
)
|
|
83,412
|
|
||||
|
$
|
2,978,613
|
|
|
$
|
8,006,664
|
|
|
$
|
(404,664
|
)
|
|
$
|
10,580,613
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
||||||||
Current liabilities:
|
|
|
|
|
|
|
|
||||||||
Accounts payable
|
$
|
351,831
|
|
|
$
|
342,328
|
|
|
$
|
(313,241
|
)
|
|
$
|
380,918
|
|
Accrued liabilities
|
544,560
|
|
|
98,778
|
|
|
833
|
|
|
644,171
|
|
||||
Short-term debt
|
—
|
|
|
1,192,925
|
|
|
—
|
|
|
1,192,925
|
|
||||
Current portion of long-term debt, net
|
—
|
|
|
1,372,050
|
|
|
—
|
|
|
1,372,050
|
|
||||
Total current liabilities
|
896,391
|
|
|
3,006,081
|
|
|
(312,408
|
)
|
|
3,590,064
|
|
||||
Long-term debt, net
|
742,791
|
|
|
4,001,903
|
|
|
—
|
|
|
4,744,694
|
|
||||
Lease liabilities
|
32,520
|
|
|
6,996
|
|
|
—
|
|
|
39,516
|
|
||||
Pension liability
|
98,862
|
|
|
—
|
|
|
—
|
|
|
98,862
|
|
||||
Postretirement healthcare liability
|
93,897
|
|
|
—
|
|
|
—
|
|
|
93,897
|
|
||||
Other long-term liabilities
|
174,150
|
|
|
39,070
|
|
|
2,749
|
|
|
215,969
|
|
||||
Commitments and contingencies (Note 17)
|
|
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
940,002
|
|
|
952,614
|
|
|
(95,005
|
)
|
|
1,797,611
|
|
||||
|
$
|
2,978,613
|
|
|
$
|
8,006,664
|
|
|
$
|
(404,664
|
)
|
|
$
|
10,580,613
|
|
|
December 31, 2018
|
||||||||||||||
|
HDMC Entities
|
|
HDFS Entities
|
|
Eliminations
|
|
Consolidated
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
544,548
|
|
|
$
|
659,218
|
|
|
$
|
—
|
|
|
$
|
1,203,766
|
|
Marketable securities
|
10,007
|
|
|
—
|
|
|
—
|
|
|
10,007
|
|
||||
Accounts receivable, net
|
425,727
|
|
|
—
|
|
|
(119,253
|
)
|
|
306,474
|
|
||||
Finance receivables, net
|
—
|
|
|
2,214,424
|
|
|
—
|
|
|
2,214,424
|
|
||||
Inventories
|
556,128
|
|
|
—
|
|
|
—
|
|
|
556,128
|
|
||||
Restricted cash
|
—
|
|
|
49,275
|
|
|
—
|
|
|
49,275
|
|
||||
Other current assets
|
91,172
|
|
|
59,070
|
|
|
(5,874
|
)
|
|
144,368
|
|
||||
Total current assets
|
1,627,582
|
|
|
2,981,987
|
|
|
(125,127
|
)
|
|
4,484,442
|
|
||||
Finance receivables, net
|
—
|
|
|
5,007,507
|
|
|
—
|
|
|
5,007,507
|
|
||||
Property, plant and equipment, net
|
847,176
|
|
|
56,956
|
|
|
—
|
|
|
904,132
|
|
||||
Goodwill
|
55,048
|
|
|
—
|
|
|
—
|
|
|
55,048
|
|
||||
Deferred income taxes
|
105,388
|
|
|
37,603
|
|
|
(1,527
|
)
|
|
141,464
|
|
||||
Other long-term assets
|
144,122
|
|
|
18,680
|
|
|
(89,731
|
)
|
|
73,071
|
|
||||
|
$
|
2,779,316
|
|
|
$
|
8,102,733
|
|
|
$
|
(216,385
|
)
|
|
$
|
10,665,664
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
||||||||
Current liabilities:
|
|
|
|
|
|
|
|
||||||||
Accounts payable
|
$
|
258,587
|
|
|
$
|
145,527
|
|
|
$
|
(119,253
|
)
|
|
$
|
284,861
|
|
Accrued liabilities
|
496,643
|
|
|
110,063
|
|
|
(5,576
|
)
|
|
601,130
|
|
||||
Short-term debt
|
—
|
|
|
1,135,810
|
|
|
—
|
|
|
1,135,810
|
|
||||
Current portion of long-term debt, net
|
—
|
|
|
1,575,799
|
|
|
—
|
|
|
1,575,799
|
|
||||
Total current liabilities
|
755,230
|
|
|
2,967,199
|
|
|
(124,829
|
)
|
|
3,597,600
|
|
||||
Long-term debt, net
|
742,624
|
|
|
4,145,043
|
|
|
—
|
|
|
4,887,667
|
|
||||
Pension liability
|
107,776
|
|
|
—
|
|
|
—
|
|
|
107,776
|
|
||||
Postretirement healthcare liability
|
94,453
|
|
|
—
|
|
|
—
|
|
|
94,453
|
|
||||
Other long-term liabilities
|
164,243
|
|
|
37,142
|
|
|
2,834
|
|
|
204,219
|
|
||||
Commitments and contingencies (Note 17)
|
|
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
914,990
|
|
|
953,349
|
|
|
(94,390
|
)
|
|
1,773,949
|
|
||||
|
$
|
2,779,316
|
|
|
$
|
8,102,733
|
|
|
$
|
(216,385
|
)
|
|
$
|
10,665,664
|
|
|
April 1, 2018
|
||||||||||||||
|
HDMC Entities
|
|
HDFS Entities
|
|
Eliminations
|
|
Consolidated
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
403,009
|
|
|
$
|
350,508
|
|
|
$
|
—
|
|
|
$
|
753,517
|
|
Accounts receivable, net
|
686,265
|
|
|
—
|
|
|
(331,158
|
)
|
|
355,107
|
|
||||
Finance receivables, net
|
—
|
|
|
2,341,918
|
|
|
—
|
|
|
2,341,918
|
|
||||
Inventories
|
564,571
|
|
|
—
|
|
|
—
|
|
|
564,571
|
|
||||
Restricted cash
|
—
|
|
|
54,569
|
|
|
—
|
|
|
54,569
|
|
||||
Other current assets
|
108,613
|
|
|
44,724
|
|
|
(2,865
|
)
|
|
150,472
|
|
||||
Total current assets
|
1,762,458
|
|
|
2,791,719
|
|
|
(334,023
|
)
|
|
4,220,154
|
|
||||
Finance receivables, net
|
—
|
|
|
4,784,524
|
|
|
—
|
|
|
4,784,524
|
|
||||
Property, plant and equipment, net
|
887,522
|
|
|
47,123
|
|
|
—
|
|
|
934,645
|
|
||||
Prepaid pension costs
|
122,230
|
|
|
—
|
|
|
—
|
|
|
122,230
|
|
||||
Goodwill
|
56,524
|
|
|
—
|
|
|
—
|
|
|
56,524
|
|
||||
Deferred income taxes
|
36,140
|
|
|
42,543
|
|
|
(1,059
|
)
|
|
77,624
|
|
||||
Other long-term assets
|
145,344
|
|
|
23,514
|
|
|
(86,938
|
)
|
|
81,920
|
|
||||
|
$
|
3,010,218
|
|
|
$
|
7,689,423
|
|
|
$
|
(422,020
|
)
|
|
$
|
10,277,621
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
||||||||
Current liabilities:
|
|
|
|
|
|
|
|
||||||||
Accounts payable
|
$
|
297,162
|
|
|
$
|
353,036
|
|
|
$
|
(331,158
|
)
|
|
$
|
319,040
|
|
Accrued liabilities
|
462,279
|
|
|
106,149
|
|
|
(2,020
|
)
|
|
566,408
|
|
||||
Short-term debt
|
—
|
|
|
1,036,976
|
|
|
—
|
|
|
1,036,976
|
|
||||
Current portion of long-term debt, net
|
—
|
|
|
1,872,679
|
|
|
—
|
|
|
1,872,679
|
|
||||
Total current liabilities
|
759,441
|
|
|
3,368,840
|
|
|
(333,178
|
)
|
|
3,795,103
|
|
||||
Long-term debt, net
|
742,126
|
|
|
3,366,385
|
|
|
—
|
|
|
4,108,511
|
|
||||
Pension liability
|
54,921
|
|
|
—
|
|
|
—
|
|
|
54,921
|
|
||||
Postretirement healthcare liability
|
113,031
|
|
|
—
|
|
|
—
|
|
|
113,031
|
|
||||
Other long-term liabilities
|
171,389
|
|
|
35,899
|
|
|
2,818
|
|
|
210,106
|
|
||||
Commitments and contingencies (Note 17)
|
|
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
1,169,310
|
|
|
918,299
|
|
|
(91,660
|
)
|
|
1,995,949
|
|
||||
|
$
|
3,010,218
|
|
|
$
|
7,689,423
|
|
|
$
|
(422,020
|
)
|
|
$
|
10,277,621
|
|
|
Three months ended March 31, 2019
|
||||||||||||||
|
HDMC Entities
|
|
HDFS Entities
|
|
Eliminations
|
|
Consolidated
|
||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
129,414
|
|
|
$
|
43,453
|
|
|
$
|
(44,922
|
)
|
|
$
|
127,945
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization of intangibles
|
62,187
|
|
|
2,185
|
|
|
—
|
|
|
64,372
|
|
||||
Amortization of deferred loan origination costs
|
—
|
|
|
18,968
|
|
|
—
|
|
|
18,968
|
|
||||
Amortization of financing origination fees
|
167
|
|
|
2,027
|
|
|
—
|
|
|
2,194
|
|
||||
Provision for long-term employee benefits
|
3,156
|
|
|
—
|
|
|
—
|
|
|
3,156
|
|
||||
Employee benefit plan contributions and payments
|
(2,507
|
)
|
|
—
|
|
|
—
|
|
|
(2,507
|
)
|
||||
Stock compensation expense
|
5,845
|
|
|
692
|
|
|
—
|
|
|
6,537
|
|
||||
Net change in wholesale finance receivables related to sales
|
—
|
|
|
—
|
|
|
(237,569
|
)
|
|
(237,569
|
)
|
||||
Provision for credit losses
|
—
|
|
|
34,491
|
|
|
—
|
|
|
34,491
|
|
||||
Deferred income taxes
|
6,195
|
|
|
314
|
|
|
(528
|
)
|
|
5,981
|
|
||||
Other, net
|
1,886
|
|
|
922
|
|
|
(77
|
)
|
|
2,731
|
|
||||
Changes in current assets and liabilities:
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, net
|
(243,734
|
)
|
|
—
|
|
|
193,988
|
|
|
(49,746
|
)
|
||||
Finance receivables - accrued interest and other
|
—
|
|
|
92
|
|
|
—
|
|
|
92
|
|
||||
Inventories
|
(40,600
|
)
|
|
—
|
|
|
—
|
|
|
(40,600
|
)
|
||||
Accounts payable and accrued liabilities
|
122,462
|
|
|
180,980
|
|
|
(179,467
|
)
|
|
123,975
|
|
||||
Derivative instruments
|
834
|
|
|
33
|
|
|
—
|
|
|
867
|
|
||||
Other
|
(41,339
|
)
|
|
18,997
|
|
|
(5,874
|
)
|
|
(28,216
|
)
|
||||
Total adjustments
|
(125,448
|
)
|
|
259,701
|
|
|
(229,527
|
)
|
|
(95,274
|
)
|
||||
Net cash provided by operating activities
|
3,966
|
|
|
303,154
|
|
|
(274,449
|
)
|
|
32,671
|
|
|
Three months ended March 31, 2019
|
||||||||||||||
|
HDMC Entities
|
|
HDFS Entities
|
|
Eliminations
|
|
Consolidated
|
||||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||||||
Capital expenditures
|
(34,657
|
)
|
|
(598
|
)
|
|
—
|
|
|
(35,255
|
)
|
||||
Origination of finance receivables
|
—
|
|
|
(1,691,416
|
)
|
|
840,044
|
|
|
(851,372
|
)
|
||||
Collections on finance receivables
|
—
|
|
|
1,426,419
|
|
|
(610,595
|
)
|
|
815,824
|
|
||||
Acquisition of business
|
(7,000
|
)
|
|
—
|
|
|
—
|
|
|
(7,000
|
)
|
||||
Other
|
603
|
|
|
—
|
|
|
—
|
|
|
603
|
|
||||
Net cash used by investing activities
|
(41,054
|
)
|
|
(265,595
|
)
|
|
229,449
|
|
|
(77,200
|
)
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||||||
Proceeds from issuance of medium-term notes
|
—
|
|
|
546,655
|
|
|
—
|
|
|
546,655
|
|
||||
Repayments of medium-term notes
|
—
|
|
|
(750,000
|
)
|
|
—
|
|
|
(750,000
|
)
|
||||
Repayments of securitization debt
|
—
|
|
|
(76,505
|
)
|
|
—
|
|
|
(76,505
|
)
|
||||
Repayments of asset-backed commercial paper
|
—
|
|
|
(72,401
|
)
|
|
—
|
|
|
(72,401
|
)
|
||||
Net increase in credit facilities and unsecured commercial paper
|
—
|
|
|
58,527
|
|
|
—
|
|
|
58,527
|
|
||||
Dividends paid
|
(60,859
|
)
|
|
(45,000
|
)
|
|
45,000
|
|
|
(60,859
|
)
|
||||
Purchase of common stock for treasury
|
(61,712
|
)
|
|
—
|
|
|
—
|
|
|
(61,712
|
)
|
||||
Issuance of common stock under employee stock option plans
|
616
|
|
|
—
|
|
|
—
|
|
|
616
|
|
||||
Net cash used by financing activities
|
(121,955
|
)
|
|
(338,724
|
)
|
|
45,000
|
|
|
(415,679
|
)
|
||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(1,115
|
)
|
|
706
|
|
|
—
|
|
|
(409
|
)
|
||||
Net decrease in cash, cash equivalents and restricted cash
|
$
|
(160,158
|
)
|
|
$
|
(300,459
|
)
|
|
$
|
—
|
|
|
$
|
(460,617
|
)
|
Cash, cash equivalents and restricted cash:
|
|
|
|
|
|
|
|
||||||||
Cash, cash equivalents and restricted cash—beginning of period
|
$
|
544,548
|
|
|
$
|
715,200
|
|
|
$
|
—
|
|
|
$
|
1,259,748
|
|
Net decrease in cash, cash equivalents and restricted cash
|
(160,158
|
)
|
|
(300,459
|
)
|
|
—
|
|
|
(460,617
|
)
|
||||
Cash, cash equivalents and restricted cash—end of period
|
$
|
384,390
|
|
|
$
|
414,741
|
|
|
$
|
—
|
|
|
$
|
799,131
|
|
|
Three months ended April 1, 2018
|
||||||||||||||
|
HDMC Entities
|
|
HDFS Entities
|
|
Eliminations
|
|
Consolidated
|
||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
238,329
|
|
|
$
|
46,413
|
|
|
$
|
(109,979
|
)
|
|
$
|
174,763
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization of intangibles
|
61,405
|
|
|
1,068
|
|
|
—
|
|
|
62,473
|
|
||||
Amortization of deferred loan origination costs
|
—
|
|
|
20,116
|
|
|
—
|
|
|
20,116
|
|
||||
Amortization of financing origination fees
|
165
|
|
|
1,863
|
|
|
—
|
|
|
2,028
|
|
||||
Provision for long-term employee benefits
|
9,747
|
|
|
—
|
|
|
—
|
|
|
9,747
|
|
||||
Employee benefit plan contributions and payments
|
(5,486
|
)
|
|
—
|
|
|
—
|
|
|
(5,486
|
)
|
||||
Stock compensation expense
|
7,072
|
|
|
890
|
|
|
—
|
|
|
7,962
|
|
||||
Net change in wholesale finance receivables related to sales
|
—
|
|
|
—
|
|
|
(239,902
|
)
|
|
(239,902
|
)
|
||||
Provision for credit losses
|
—
|
|
|
30,052
|
|
|
—
|
|
|
30,052
|
|
||||
Deferred income taxes
|
2,469
|
|
|
979
|
|
|
(260
|
)
|
|
3,188
|
|
||||
Other, net
|
(2,081
|
)
|
|
200
|
|
|
(21
|
)
|
|
(1,902
|
)
|
||||
Changes in current assets and liabilities:
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, net
|
(195,123
|
)
|
|
—
|
|
|
177,435
|
|
|
(17,688
|
)
|
||||
Finance receivables - accrued interest and other
|
—
|
|
|
4,758
|
|
|
—
|
|
|
4,758
|
|
||||
Inventories
|
(21,542
|
)
|
|
—
|
|
|
—
|
|
|
(21,542
|
)
|
||||
Accounts payable and accrued liabilities
|
121,833
|
|
|
201,056
|
|
|
(173,966
|
)
|
|
148,923
|
|
||||
Derivative instruments
|
666
|
|
|
36
|
|
|
—
|
|
|
702
|
|
||||
Other
|
9,935
|
|
|
6,269
|
|
|
(2,802
|
)
|
|
13,402
|
|
||||
Total adjustments
|
(10,940
|
)
|
|
267,287
|
|
|
(239,516
|
)
|
|
16,831
|
|
||||
Net cash provided by operating activities
|
227,389
|
|
|
313,700
|
|
|
(349,495
|
)
|
|
191,594
|
|
|
Three months ended April 1, 2018
|
||||||||||||||
|
HDMC Entities
|
|
HDFS Entities
|
|
Eliminations
|
|
Consolidated
|
||||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||||||
Capital expenditures
|
(25,746
|
)
|
|
(2,690
|
)
|
|
—
|
|
|
(28,436
|
)
|
||||
Origination of finance receivables
|
—
|
|
|
(1,786,309
|
)
|
|
988,242
|
|
|
(798,067
|
)
|
||||
Collections on finance receivables
|
—
|
|
|
1,558,547
|
|
|
(748,747
|
)
|
|
809,800
|
|
||||
Other
|
(4,948
|
)
|
|
—
|
|
|
—
|
|
|
(4,948
|
)
|
||||
Net cash used by investing activities
|
(30,694
|
)
|
|
(230,452
|
)
|
|
239,495
|
|
|
(21,651
|
)
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||||||
Proceeds from issuance of medium-term notes
|
—
|
|
|
347,553
|
|
|
—
|
|
|
347,553
|
|
||||
Repayments of securitization debt
|
—
|
|
|
(67,955
|
)
|
|
—
|
|
|
(67,955
|
)
|
||||
Borrowings of asset-backed commercial paper
|
—
|
|
|
35,504
|
|
|
—
|
|
|
35,504
|
|
||||
Repayments of asset-backed commercial paper
|
—
|
|
|
(45,907
|
)
|
|
—
|
|
|
(45,907
|
)
|
||||
Net decrease in credit facilities and unsecured commercial paper
|
—
|
|
|
(234,145
|
)
|
|
—
|
|
|
(234,145
|
)
|
||||
Dividends paid
|
(62,731
|
)
|
|
(110,000
|
)
|
|
110,000
|
|
|
(62,731
|
)
|
||||
Purchase of common stock for treasury
|
(72,968
|
)
|
|
—
|
|
|
—
|
|
|
(72,968
|
)
|
||||
Issuance of common stock under employee stock option plans
|
1,719
|
|
|
—
|
|
|
—
|
|
|
1,719
|
|
||||
Net cash used by financing activities
|
(133,980
|
)
|
|
(74,950
|
)
|
|
110,000
|
|
|
(98,930
|
)
|
||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
2,108
|
|
|
(74
|
)
|
|
—
|
|
|
2,034
|
|
||||
Net increase in cash, cash equivalents and restricted cash
|
$
|
64,823
|
|
|
$
|
8,224
|
|
|
$
|
—
|
|
|
$
|
73,047
|
|
Cash, cash equivalents and restricted cash:
|
|
|
|
|
|
|
|
||||||||
Cash, cash equivalents and restricted cash—beginning of period
|
$
|
338,186
|
|
|
$
|
408,024
|
|
|
$
|
—
|
|
|
$
|
746,210
|
|
Net increase in cash, cash equivalents and restricted cash
|
64,823
|
|
|
8,224
|
|
|
—
|
|
|
73,047
|
|
||||
Cash, cash equivalents and restricted cash—end of period
|
$
|
403,009
|
|
|
$
|
416,248
|
|
|
$
|
—
|
|
|
$
|
819,257
|
|
(in millions)
|
2018 Actual
|
|
2019 Estimated
|
|
2020 Estimated
|
|
Total
|
Manufacturing Optimization Plan
|
|
|
|
|
|
|
|
Cost related to temporary inefficiencies
|
$ 12.9
|
|
$10 - $15
|
|
n/a
|
|
$ 23 - $ 28
|
Restructuring expenses
|
$ 89.5
|
|
$40 - $45
|
|
n/a
|
|
$129 - $134
|
|
$102.4
|
|
$50 - $60
|
|
|
|
$152 - $162
|
% cash
|
70%
|
|
70%
|
|
|
|
70%
|
Reorganization Plan - restructuring expenses
|
$3.9
|
|
$1
|
|
|
|
$5
|
% cash
|
100%
|
|
100%
|
|
|
|
100%
|
|
|
|
|
|
|
|
|
Annual cash savings
|
|
|
2019 Estimated
|
|
2020 Estimated
|
|
Annual
Ongoing
|
Manufacturing Optimization Plan
|
|
|
$25 - $30
|
|
$45 - $50
|
|
$65 - $75
|
Reorganization Plan
|
|
|
$7
|
|
$7
|
|
$7
|
|
Three months ended
|
|
|
|
|
|||||||||
(in thousands, except earnings per share)
|
March 31,
2019 |
|
April 1,
2018 |
|
(Decrease)
Increase |
|
%
Change |
|||||||
Operating income from Motorcycles and Related Products
|
$
|
108,381
|
|
|
$
|
172,838
|
|
|
$
|
(64,457
|
)
|
|
(37.3
|
)%
|
Operating income from Financial Services
|
58,731
|
|
|
63,579
|
|
|
(4,848
|
)
|
|
(7.6
|
)
|
|||
Operating income
|
167,112
|
|
|
236,417
|
|
|
(69,305
|
)
|
|
(29.3
|
)
|
|||
Other income (expense), net
|
4,660
|
|
|
220
|
|
|
4,440
|
|
|
2,018.2
|
|
|||
Investment income
|
6,358
|
|
|
1,203
|
|
|
5,155
|
|
|
428.5
|
|
|||
Interest expense
|
7,731
|
|
|
7,690
|
|
|
41
|
|
|
0.5
|
|
|||
Income before provision for income taxes
|
170,399
|
|
|
230,150
|
|
|
(59,751
|
)
|
|
(26.0
|
)
|
|||
Provision for income taxes
|
42,454
|
|
|
55,387
|
|
|
(12,933
|
)
|
|
(23.4
|
)
|
|||
Net income
|
$
|
127,945
|
|
|
$
|
174,763
|
|
|
$
|
(46,818
|
)
|
|
(26.8
|
)%
|
Diluted earnings per share
|
$
|
0.80
|
|
|
$
|
1.03
|
|
|
$
|
(0.23
|
)
|
|
(22.3
|
)%
|
|
Three months ended
|
|
|
|
|
||||||
|
March 31,
2019 |
|
March 31,
2018 |
|
(Decrease)
Increase
|
|
%
Change |
||||
United States
|
28,091
|
|
|
29,309
|
|
|
(1,218
|
)
|
|
(4.2
|
)%
|
|
|
|
|
|
|
|
|
||||
Europe
(b)
|
9,508
|
|
|
9,716
|
|
|
(208
|
)
|
|
(2.1
|
)
|
EMEA - Other
|
1,289
|
|
|
1,146
|
|
|
143
|
|
|
12.5
|
|
Total EMEA
|
10,797
|
|
|
10,862
|
|
|
(65
|
)
|
|
(0.6
|
)
|
|
|
|
|
|
|
|
|
||||
Asia Pacific
(c)
|
3,786
|
|
|
4,452
|
|
|
(666
|
)
|
|
(15.0
|
)
|
Asia Pacific - Other
|
2,288
|
|
|
1,877
|
|
|
411
|
|
|
21.9
|
|
Total Asia Pacific
|
6,074
|
|
|
6,329
|
|
|
(255
|
)
|
|
(4.0
|
)
|
|
|
|
|
|
|
|
|
||||
Latin America
|
2,241
|
|
|
2,506
|
|
|
(265
|
)
|
|
(10.6
|
)
|
Canada
|
1,948
|
|
|
2,080
|
|
|
(132
|
)
|
|
(6.3
|
)
|
Total International Retail Sales
|
21,060
|
|
|
21,777
|
|
|
(717
|
)
|
|
(3.3
|
)
|
Total Worldwide Retail Sales
|
49,151
|
|
|
51,086
|
|
|
(1,935
|
)
|
|
(3.8
|
)%
|
(a)
|
Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson dealers and compiled by the Company. The Company must rely on information that its dealers supply concerning new retail sales, and the Company does not regularly verify the information that its dealers supply. This information is subject to revision.
|
(b)
|
Includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
|
(c)
|
Includes Japan, Australia, New Zealand and Korea.
|
(a)
|
Data includes on-road 601+cc models. On-road 601+cc models include dual purpose models, three-wheeled motorcycles and autocycles. Registration data for Harley-Davidson Street
®
500 motorcycles is not included in this table.
|
(b)
|
United States industry data is derived from information provided by Motorcycle Industry Council (MIC). This third-party data is subject to revision and update.
|
(c)
|
Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. Industry retail motorcycle registration data includes 601+cc models derived from information provided by Association des Constructeurs Europeens de Motocycles (ACEM), an independent agency. This third-party data is subject to revision and update.
|
|
Three months ended
|
|
|
|
|
||||||||||||
|
March 31, 2019
|
|
April 1, 2018
|
|
|
|
|
||||||||||
|
Units
|
|
Mix %
|
|
Units
|
|
Mix %
|
|
Unit
(Decrease)
Increase
|
|
Unit
% Change |
||||||
United States
|
34,505
|
|
|
58.6
|
%
|
|
38,797
|
|
|
60.7
|
%
|
|
(4,292
|
)
|
|
(11.1
|
)%
|
International
|
24,386
|
|
|
41.4
|
%
|
|
25,147
|
|
|
39.3
|
%
|
|
(761
|
)
|
|
(3.0
|
)
|
Harley-Davidson motorcycle units
|
58,891
|
|
|
100.0
|
%
|
|
63,944
|
|
|
100.0
|
%
|
|
(5,053
|
)
|
|
(7.9
|
)%
|
Touring motorcycle units
|
25,043
|
|
|
42.5
|
%
|
|
30,857
|
|
|
48.3
|
%
|
|
(5,814
|
)
|
|
(18.8
|
)%
|
Cruiser motorcycle units
|
20,451
|
|
|
34.7
|
%
|
|
21,554
|
|
|
33.7
|
%
|
|
(1,103
|
)
|
|
(5.1
|
)
|
Sportster
®
/ Street motorcycle units
|
13,397
|
|
|
22.8
|
%
|
|
11,533
|
|
|
18.0
|
%
|
|
1,864
|
|
|
16.2
|
|
Harley-Davidson motorcycle units
|
58,891
|
|
|
100.0
|
%
|
|
63,944
|
|
|
100.0
|
%
|
|
(5,053
|
)
|
|
(7.9
|
)%
|
|
Three months ended
|
|
|
|
|
|||||||||
|
March 31, 2019
|
|
April 1, 2018
|
|
(Decrease)
Increase |
|
%
Change
|
|||||||
Revenue:
|
|
|
|
|
|
|
|
|||||||
Motorcycles
|
$
|
964,575
|
|
|
$
|
1,121,673
|
|
|
$
|
(157,098
|
)
|
|
(14.0
|
)%
|
Parts & Accessories
|
159,703
|
|
|
169,075
|
|
|
(9,372
|
)
|
|
(5.5
|
)
|
|||
General Merchandise
|
55,401
|
|
|
56,601
|
|
|
(1,200
|
)
|
|
(2.1
|
)
|
|||
Licensing
|
8,577
|
|
|
8,358
|
|
|
219
|
|
|
2.6
|
|
|||
Other
|
7,381
|
|
|
8,240
|
|
|
(859
|
)
|
|
(10.4
|
)
|
|||
Total revenue
|
1,195,637
|
|
|
1,363,947
|
|
|
(168,310
|
)
|
|
(12.3
|
)
|
|||
Cost of goods sold
|
848,198
|
|
|
890,174
|
|
|
(41,976
|
)
|
|
(4.7
|
)
|
|||
Gross profit
|
347,439
|
|
|
473,773
|
|
|
(126,334
|
)
|
|
(26.7
|
)
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|||||||
Selling & administrative expense
|
176,544
|
|
|
207,544
|
|
|
(31,000
|
)
|
|
(14.9
|
)
|
|||
Engineering expense
|
48,884
|
|
|
46,549
|
|
|
2,335
|
|
|
5.0
|
|
|||
Restructuring expense
|
13,630
|
|
|
46,842
|
|
|
(33,212
|
)
|
|
(70.9
|
)
|
|||
Operating expense
|
239,058
|
|
|
300,935
|
|
|
(61,877
|
)
|
|
(20.6
|
)
|
|||
Operating income from Motorcycles
|
$
|
108,381
|
|
|
$
|
172,838
|
|
|
$
|
(64,457
|
)
|
|
(37.3
|
)%
|
|
Net
Revenue |
|
Cost of
Goods Sold |
|
Gross
Profit |
||||||
Three months ended April 1, 2018
|
$
|
1,363.9
|
|
|
$
|
890.1
|
|
|
$
|
473.8
|
|
Volume
|
(108.1
|
)
|
|
(66.7
|
)
|
|
(41.4
|
)
|
|||
Price, net of related costs
|
23.2
|
|
|
6.8
|
|
|
16.4
|
|
|||
Foreign currency exchange rates and hedging
|
(29.8
|
)
|
|
(14.7
|
)
|
|
(15.1
|
)
|
|||
Shipment mix
|
(53.6
|
)
|
|
(14.3
|
)
|
|
(39.3
|
)
|
|||
Raw material prices
|
—
|
|
|
3.1
|
|
|
(3.1
|
)
|
|||
Manufacturing and other costs
|
—
|
|
|
43.9
|
|
|
(43.9
|
)
|
|||
Total
|
(168.3
|
)
|
|
(41.9
|
)
|
|
(126.4
|
)
|
|||
Three months ended March 31, 2019
|
$
|
1,195.6
|
|
|
$
|
848.2
|
|
|
$
|
347.4
|
|
•
|
The decrease in revenue and gross profit related to volume was due primarily to lower wholesale motorcycle shipments, lower P&A sales and an increased level of motorcycle sales support.
|
•
|
On average, wholesale prices for motorcycles shipped in the current period were higher than in the same period last year resulting in a favorable impact on revenue. The positive impact on revenue was partially offset by increased costs related to the additional content added to motorcycles shipped in the current period as compared to the same period last year.
|
•
|
Revenue was adversely impacted by weaker foreign currency exchange rates, relative to the U.S. dollar, as compared to the same period last year. The unfavorable revenue impact was partially offset by higher net foreign currency gains due primarily to foreign currency hedging, as compared to the prior year.
|
•
|
Changes in the shipment mix of motorcycle families, as well as the mix of models within motorcycle families, had an adverse impact on revenue and gross profit during the quarter.
|
•
|
Raw material prices were higher primarily due to increased steel costs.
|
•
|
Manufacturing and other costs were negatively impacted by lower fixed cost absorption due to lower production, temporary inefficiencies and the cost of incremental tariffs. Costs associated with incremental tariffs implemented in mid-2018 were $21.0 million during the first quarter of 2019. Temporary inefficiencies associated with the Manufacturing Optimization Plan were $3.6 million and $0.7 million in the first quarters of 2019 and 2018, respectively.
|
|
Three months ended
|
||||||
|
March 31,
2019 |
|
April 1,
2018 |
||||
Balance, beginning of period
|
$
|
189,885
|
|
|
$
|
192,471
|
|
Provision for credit losses
|
34,491
|
|
|
30,052
|
|
||
Charge-offs, net of recoveries
|
(33,504
|
)
|
|
(32,173
|
)
|
||
Balance, end of period
|
$
|
190,872
|
|
|
$
|
190,350
|
|
|
2019
|
|
2020-2021
|
|
2022-2023
|
|
Thereafter
|
|
Total
|
||||||||||
Principal payments on debt
|
$
|
1,912,597
|
|
|
$
|
3,104,227
|
|
|
$
|
1,564,436
|
|
|
$
|
750,000
|
|
|
$
|
7,331,260
|
|
Interest payments on debt
|
142,180
|
|
|
272,995
|
|
|
112,046
|
|
|
336,750
|
|
|
863,971
|
|
|||||
|
$
|
2,054,777
|
|
|
$
|
3,377,222
|
|
|
$
|
1,676,482
|
|
|
$
|
1,086,750
|
|
|
$
|
8,195,231
|
|
|
March 31, 2019
|
||
Cash and cash equivalents
|
$
|
749,600
|
|
Current marketable securities
|
10,003
|
|
|
Total cash and cash equivalents and marketable securities
|
759,603
|
|
|
|
|
||
Credit facilities
|
352,075
|
|
|
Asset-backed U.S. commercial paper conduit facilities
(a)
|
600,000
|
|
|
Asset-backed Canadian commercial paper conduit facility
(a)
|
22,111
|
|
|
Total availability under credit and conduit facilities
|
974,186
|
|
|
Total
|
$
|
1,733,789
|
|
(a)
|
Includes facilities expiring in the next twelve months which the Company expects to renew prior to expiration.
(1)
|
|
Three months ended
|
||||||
|
March 31, 2019
|
|
April 1, 2018
|
||||
Net cash provided by operating activities
|
$
|
32,671
|
|
|
$
|
191,594
|
|
Net cash used by investing activities
|
(77,200
|
)
|
|
(21,651
|
)
|
||
Net cash used by financing activities
|
(415,679
|
)
|
|
(98,930
|
)
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(409
|
)
|
|
2,034
|
|
||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
$
|
(460,617
|
)
|
|
$
|
73,047
|
|
|
March 31,
2019 |
|
April 1,
2018 |
||||
Unsecured commercial paper
|
$
|
1,192,925
|
|
|
$
|
1,036,976
|
|
Asset-backed Canadian commercial paper conduit facility
|
142,676
|
|
|
158,162
|
|
||
Asset-backed U.S. commercial paper conduit facilities
|
526,947
|
|
|
281,311
|
|
||
Medium-term notes, net
|
4,685,636
|
|
|
4,514,798
|
|
||
Senior unsecured notes, net
|
742,791
|
|
|
742,126
|
|
||
Asset-backed securitization debt, net
|
18,694
|
|
|
284,793
|
|
||
Total debt
|
$
|
7,309,669
|
|
|
$
|
7,018,166
|
|
Principal Amount
|
|
Rate
|
|
Issue Date
|
|
Maturity Date
|
$600,000
|
|
2.40%
|
|
September 2014
|
|
September 2019
|
$600,000
|
|
2.15%
|
|
February 2015
|
|
February 2020
|
$450,000
|
|
Floating-rate
(a)
|
|
May 2018
|
|
May 2020
|
$350,000
|
|
2.40%
|
|
March 2017
|
|
June 2020
|
$600,000
|
|
2.85%
|
|
January 2016
|
|
January 2021
|
$450,000
|
|
Floating-rate
(b)
|
|
November 2018
|
|
March 2021
|
$350,000
|
|
3.55%
|
|
May 2018
|
|
May 2021
|
$550,000
|
|
4.05%
|
|
February 2019
|
|
February 2022
|
$400,000
|
|
2.55%
|
|
June 2017
|
|
June 2022
|
$350,000
|
|
3.35%
|
|
February 2018
|
|
February 2023
|
(a)
|
Floating interest rate based on LIBOR plus 50 bps. The Company utilized an interest rate swap designated as a cash flow hedge to convert this from a floating rate basis to a fixed rate basis. Refer to Note 10 of the Notes to the Consolidated Financial Statements for further details.
|
(b)
|
Floating interest rate based on LIBOR plus 94 bps. The Company utilized an interest rate swap designated as a cash flow hedge to convert this from a floating rate basis to a fixed rate basis. Refer to Note 10 of the Notes to the Consolidated Financial Statements for further details.
|
•
|
Assume or incur certain liens;
|
•
|
Participate in certain mergers or consolidations; and
|
•
|
Purchase or hold margin stock.
|
2019 Fiscal Month
|
Total Number of
Shares Purchased (a) |
|
Average Price
Paid per Share |
|
Total Number of Shares
Purchased as Part of Publicly Announced Plans or Programs |
|
Maximum Number of
Shares that May Yet Be Purchased Under the Plans or Programs |
|||||
January 1 to February 3
|
457,779
|
|
|
$
|
34
|
|
|
457,779
|
|
|
15,952,906
|
|
February 4 to March 3
|
1,254,645
|
|
|
$
|
37
|
|
|
1,254,645
|
|
|
14,943,706
|
|
March 4 to March 31
|
1,588
|
|
|
$
|
37
|
|
|
1,588
|
|
|
14,943,706
|
|
Total
|
1,714,012
|
|
|
$
|
36
|
|
|
1,714,012
|
|
|
|
(a)
|
Includes discretionary share repurchases and shares of common stock that employees surrendered to satisfy withholding taxes in connection with the vesting of restricted stock units
|
Exhibit No.
|
|
Description
|
|
Officers' Certificate, dated February 4, 2019, pursuant to Sections 102 and 301 of the Indenture, dated March 4, 2011, with the form of 4.05% Medium-Term Notes due 2022
|
|
|
Chief Executive Officer Certification pursuant to Rule 13a-14(a)
|
|
|
Chief Financial Officer Certification pursuant to Rule 13a-14(a)
|
|
|
Written Statement of the Chief Executive Officer and the Chief Financial Officer pursuant to 18 U.S.C. §1350
|
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
HARLEY-DAVIDSON, INC.
|
|
|
Date: May 9, 2019
|
/s/ John A. Olin
|
|
John A. Olin
|
|
Senior Vice President and
|
|
Chief Financial Officer
|
|
(Principal financial officer)
|
Date: May 9, 2019
|
/s/ Mark R. Kornetzke
|
|
Mark R. Kornetzke
|
|
Chief Accounting Officer
|
|
(Principal accounting officer)
|
Issue Price: 99.913%
|
Maturity Date: February 4, 2022
|
Original Issue Date: February 4, 2019
|
Index Maturity:
|
|
[ ] Original Issue Discount Note
|
|
Total Amount of OID:
|
|
Yield to Maturity: %
|
|
Initial Accrual Period OID:
|
[X] Fixed Rate
|
|
Interest Rate: 4.050%
|
|
[ ] Floating Rate
|
|
Interest Rate Basis:
|
|
___ CD Rate
|
Specified Currency (if other than U.S. dollars): N/A
|
___ CMT Rate
[ ] CMT Reuters Page FRBCMT: |
|
[ ] CMT Reuters Page FEDCMT:
|
Option To Receive Payments In Specified Currency (non-U.S. dollar denominated Note): N/A
|
___ Commercial Paper Rate
|
|
___ Federal Funds Rate
|
|
___ LIBOR
|
Authorized Denomination: Minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof
|
|
|
___ Prime Rate
|
Place of Payment (if other than as set forth in the Indenture): N/A
|
___ Treasury Rate
|
|
___ Other
|
|
Spread (Plus Or Minus):
|
Initial Redemption Date:
|
|
Initial Redemption Percentage:
|
|
Annual Redemption Percentage Reduction:
|
|
Repayment Date:
|
Spread Multiplier: %
|
Renewable: [ ] Yes [ ] No
|
|
Extendible: [ ] Yes [ ] No
|
Interest Category:
|
|
[ ] Regular Floating Rate Note
|
Final Maturity Date:
|
[ ] Floating Rate/Fixed Rate Note
Fixed Rate Commencement Date: |
|
Fixed Interest Rate: %
|
|
[ ] Inverse Floating Rate Note
|
Initial Interest Rate:
|
Initial Interest Reset Date:
|
Maximum Interest Rate: %
|
Interest Reset Dates:
|
Minimum Interest Rate: %
|
Interest Payment Dates (in the case of a Floating Rate Note and, in the case of a Fixed Rate Note, other than as set forth below): N/A
|
|
Regular Record Dates (if other than as set forth below): N/A
|
|
Interest Determination Dates (if other than as set forth below): N/A
|
|
Additional Amounts applicable for Company:
|
|
[ ] Yes
|
|
[X] No
|
|
Additional Amounts applicable for Guarantor:
|
|
[ ] Yes
|
|
[X] No
|
|
Addendum Attached
|
Other Provisions: The optional redemption provisions described below shall apply to the Note.
|
[ ] Yes
|
|
[X] No
|
|
Authorized Denomination (only if non-U.S. dollar denominated Note): N/A
|
|
Calculation Agent (if other than the Trustee): N/A
|
|
Interest Payment Period: N/A
|
|
Money market yield =
|
D × 360
|
× 100
|
360 - (D × M)
|
Bond Equivalent Yield =
|
D × N
|
× 100
|
360 - (D × M)
|
Dated: February 4, 2019
|
|
|
HARLEY-DAVIDSON FINANCIAL SERVICES, INC.
|
|
|
|
|
|
By:
/s/ J. Darrell Thomas
Name: James Darrell Thomas Title: Vice President, Chief Financial Officer and Treasurer |
|
|
|
|
Attest:
|
|
|
|
By:
/s/ Perry A. Glassgow
Name: Perry Glassgow
Title: Vice President |
|
Dated: February 4, 2019
|
|
|
HARLEY-DAVIDSON CREDIT CORP.
,
|
|
a Nevada corporation
|
|
|
|
By:
/s/ J. Darrell Thomas
Name: James Darrell Thomas Title: Vice President, Chief Financial Officer and Treasurer |
|
|
|
|
Attest:
|
|
|
|
By:
/s/ Perry A. Glassgow
Name: Perry Glassgow
Title: Vice President |
|
TEN COM - as tenants in common
|
UNIF GIFT MIN ACT - _______ Custodian ______
(Cust) (Minor) |
TEN ENT - as tenants by the entireties
|
under Uniform Gifts to Minors Act
|
JT TEN - as joint tenants with right of
survivorship and not as tenant in common |
(State) |
Dated:
|
|
|
|
|
NOTICE: The signature to this assignment must correspond with the name as it appears upon the within Note in every particular, without alteration or enlargement or any change whatever and must be guaranteed.
|
Date of Exchange
|
Amount of increase in Principal Amount of this Global Note
|
Amount of decrease in Principal Amount of this Global Note
|
Principal Amount of this Global Note following each decrease or increase
|
Signature of authorized signatory of Trustee
|
|
|
|
|
|
|
|
|
|
|
Issue Price: 99.913%
|
Maturity Date: February 4, 2022
|
Original Issue Date: February 4, 2019
|
Index Maturity:
|
|
[ ] Original Issue Discount Note
|
|
Total Amount of OID:
|
|
Yield to Maturity: %
|
|
Initial Accrual Period OID:
|
[X] Fixed Rate
|
|
Interest Rate: 4.050%
|
|
[ ] Floating Rate
|
|
Interest Rate Basis:
|
|
___ CD Rate
|
Specified Currency (if other than U.S. dollars): N/A
|
___ CMT Rate
[ ] CMT Reuters Page FRBCMT: |
|
[ ] CMT Reuters Page FEDCMT:
|
Option To Receive Payments In Specified Currency (non-U.S. dollar denominated Note): N/A
|
___ Commercial Paper Rate
|
|
___ Federal Funds Rate
|
|
___ LIBOR
|
Authorized Denomination: Minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof
|
|
|
___ Prime Rate
|
Place of Payment (if other than as set forth in the Indenture): N/A
|
___ Treasury Rate
|
|
___ Other
|
|
Spread (Plus Or Minus):
|
Initial Redemption Date:
|
|
Initial Redemption Percentage:
|
|
Annual Redemption Percentage Reduction:
|
|
Repayment Date:
|
Spread Multiplier: %
|
Renewable: [ ] Yes [ ] No
|
|
Extendible: [ ] Yes [ ] No
|
Interest Category:
|
|
[ ] Regular Floating Rate Note
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Final Maturity Date:
|
[ ] Floating Rate/Fixed Rate Note
Fixed Rate Commencement Date: |
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Fixed Interest Rate: %
|
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[ ] Inverse Floating Rate Note
|
Initial Interest Rate:
|
Initial Interest Reset Date:
|
Maximum Interest Rate: %
|
Interest Reset Dates:
|
Minimum Interest Rate: %
|
Interest Payment Dates (in the case of a Floating Rate Note and, in the case of a Fixed Rate Note, other than as set forth below): N/A
|
|
Regular Record Dates (if other than as set forth below): N/A
|
|
Interest Determination Dates (if other than as set forth below): N/A
|
|
Additional Amounts applicable for Company:
|
|
[ ] Yes
|
|
[X] No
|
|
Additional Amounts applicable for Guarantor:
|
|
[ ] Yes
|
|
[X] No
|
|
Addendum Attached
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Other Provisions: The optional redemption provisions described below shall apply to the Note.
|
[ ] Yes
|
|
[X] No
|
|
Authorized Denomination (only if non-U.S. dollar denominated Note): N/A
|
|
Calculation Agent (if other than the Trustee): N/A
|
|
Interest Payment Period: N/A
|
|
Money market yield =
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D × 360
|
× 100
|
360 - (D × M)
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Bond Equivalent Yield =
|
D × N
|
× 100
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360 - (D × M)
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Dated: February 4, 2019
|
|
|
HARLEY-DAVIDSON FINANCIAL SERVICES, INC.
|
|
|
|
|
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By:
/s/ J. Darrell Thomas
Name: James Darrell Thomas Title: Vice President, Chief Financial Officer and Treasurer |
|
|
|
|
Attest:
|
|
|
|
By:
/s/ Perry A. Glassgow
Name: Perry Glassgow
Title: Vice President |
|
Dated: February 4, 2019
|
|
|
HARLEY-DAVIDSON CREDIT CORP.
,
|
|
a Nevada corporation
|
|
|
|
By:
/s/ J. Darrell Thomas
Name: James Darrell Thomas Title: Vice President, Chief Financial Officer and Treasurer |
|
|
|
|
Attest:
|
|
|
|
By:
/s/ Perry A. Glassgow
Name: Perry Glassgow
Title: Vice President |
|
TEN COM - as tenants in common
|
UNIF GIFT MIN ACT - _______ Custodian ______
(Cust) (Minor) |
TEN ENT - as tenants by the entireties
|
under Uniform Gifts to Minors Act
|
JT TEN - as joint tenants with right of
survivorship and not as tenant in common |
(State) |
Dated:
|
|
|
|
|
NOTICE: The signature to this assignment must correspond with the name as it appears upon the within Note in every particular, without alteration or enlargement or any change whatever and must be guaranteed.
|
Date of Exchange
|
Amount of increase in Principal Amount of this Global Note
|
Amount of decrease in Principal Amount of this Global Note
|
Principal Amount of this Global Note following each decrease or increase
|
Signature of authorized signatory of Trustee
|
|
|
|
|
|
|
|
|
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Harley-Davidson, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors:
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: May 9, 2019
|
/s/ Matthew S. Levatich
|
|
Matthew S. Levatich
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Harley-Davidson, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors:
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: May 9, 2019
|
/s/ John A. Olin
|
|
John A. Olin
|
|
Senior Vice President and
|
|
Chief Financial Officer
|
Date: May 9, 2019
|
/s/ Matthew S. Levatich
|
|
Matthew S. Levatich
|
|
President and Chief Executive Officer
|
|
|
|
/s/ John A. Olin
|
|
John A. Olin
|
|
Senior Vice President and
|
|
Chief Financial Officer
|