☒ | 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) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common Stock Par Value $.01 PER SHARE | HOG | New York Stock Exchange |
Large Accelerated Filer | ☒ | Accelerated filer |
☐
|
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Non-accelerated filer | ☐ | Smaller reporting company |
☐
|
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Emerging growth company |
☐
|
Part I | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||
September 26,
2021 |
September 27,
2020 |
September 26,
2021 |
September 27,
2020 |
||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Motorcycles and Related Products | $ | 1,160,618 | $ | 964,029 | $ | 3,724,225 | $ | 2,733,091 | |||||||||||||||
Financial Services | 204,692 | 201,655 | 595,650 | 596,064 | |||||||||||||||||||
1,365,310 | 1,165,684 | 4,319,875 | 3,329,155 | ||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Motorcycles and Related Products cost of goods sold | 850,193 | 676,796 | 2,586,264 | 2,019,310 | |||||||||||||||||||
Financial Services interest expense | 44,770 | 67,533 | 149,098 | 182,193 | |||||||||||||||||||
Financial Services provision for credit losses | 11,208 | 7,835 | 4,935 | 178,433 | |||||||||||||||||||
Selling, administrative and engineering expense | 254,312 | 231,721 | 747,665 | 734,057 | |||||||||||||||||||
Restructuring expense | 615 | 43,915 | 1,167 | 85,864 | |||||||||||||||||||
1,161,098 | 1,027,800 | 3,489,129 | 3,199,857 | ||||||||||||||||||||
Operating income | 204,212 | 137,884 | 830,746 | 129,298 | |||||||||||||||||||
Other income, net | 858 | 155 | 1,825 | 466 | |||||||||||||||||||
Investment income | 198 | 2,672 | 4,331 | 3,082 | |||||||||||||||||||
Interest expense | 7,779 | 7,783 | 23,209 | 23,307 | |||||||||||||||||||
Income before provision for income taxes | 197,489 | 132,928 | 813,693 | 109,539 | |||||||||||||||||||
Provision for income taxes | 34,516 | 12,710 | 185,236 | 11,843 | |||||||||||||||||||
Net income | $ | 162,973 | $ | 120,218 | $ | 628,457 | $ | 97,696 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 1.06 | $ | 0.78 | $ | 4.09 | $ | 0.64 | |||||||||||||||
Diluted | $ | 1.05 | $ | 0.78 | $ | 4.06 | $ | 0.64 | |||||||||||||||
Cash dividends per share | $ | 0.15 | $ | 0.02 | $ | 0.45 | $ | 0.42 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 26,
2021 |
September 27,
2020 |
September 26,
2021 |
September 27,
2020 |
||||||||||||||||||||
Net income | $ | 162,973 | $ | 120,218 | $ | 628,457 | $ | 97,696 | |||||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | (17,836) | 12,737 | (33,759) | (275) | |||||||||||||||||||
Derivative financial instruments | 4,270 | (2,101) | 21,298 | (28,255) | |||||||||||||||||||
Pension and postretirement benefit plans | 13,588 | 11,959 | 40,763 | 35,876 | |||||||||||||||||||
22 | 22,595 | 28,302 | 7,346 | ||||||||||||||||||||
Comprehensive income | $ | 162,995 | $ | 142,813 | $ | 656,759 | $ | 105,042 |
(Unaudited) | (Unaudited) | ||||||||||||||||
September 26,
2021 |
December 31,
2020 |
September 27,
2020 |
|||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 2,061,303 | $ | 3,257,203 | $ | 3,560,950 | |||||||||||
Accounts receivable, net | 282,627 | 143,082 | 232,845 | ||||||||||||||
Finance receivables, net of allowance of $62,406, $72,632, and $74,111
|
1,540,822 | 1,509,539 | 1,701,478 | ||||||||||||||
Inventories, net | 475,314 | 523,497 | 322,375 | ||||||||||||||
Restricted cash | 153,873 | 131,642 | 160,155 | ||||||||||||||
Other current assets | 194,481 | 280,470 | 178,931 | ||||||||||||||
4,708,420 | 5,845,433 | 6,156,734 | |||||||||||||||
Finance receivables, net of allowance of $293,428, $318,304, and $334,591
|
5,322,436 | 4,933,469 | 5,142,014 | ||||||||||||||
Property, plant and equipment, net | 671,836 | 743,784 | 785,165 | ||||||||||||||
Pension and postretirement assets | 132,958 | 95,711 | 82,378 | ||||||||||||||
Goodwill | 63,841 | 65,976 | 64,884 | ||||||||||||||
Deferred income taxes | 128,059 | 158,538 | 137,960 | ||||||||||||||
Lease assets | 47,507 | 45,203 | 47,599 | ||||||||||||||
Other long-term assets | 124,747 | 122,487 | 115,541 | ||||||||||||||
$ | 11,199,804 | $ | 12,010,601 | $ | 12,532,275 | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 382,216 | $ | 290,904 | $ | 289,103 | |||||||||||
Accrued liabilities | 599,852 | 557,214 | 561,282 | ||||||||||||||
Short-term deposits, net | 92,626 | 79,965 | 29,999 | ||||||||||||||
Short-term debt | 749,620 | 1,014,274 | 1,227,763 | ||||||||||||||
Current portion of long-term debt, net | 1,605,798 | 2,039,597 | 2,109,284 | ||||||||||||||
3,430,112 | 3,981,954 | 4,217,431 | |||||||||||||||
Long-term deposits, net | 197,644 | — | — | ||||||||||||||
Long-term debt, net | 4,876,292 | 5,932,933 | 6,171,676 | ||||||||||||||
Lease liabilities | 26,017 | 30,115 | 31,225 | ||||||||||||||
Pension and postretirement liabilities | 103,144 | 114,206 | 126,232 | ||||||||||||||
Deferred income taxes | 8,585 | 8,607 | 6,219 | ||||||||||||||
Other long-term liabilities | 224,116 | 220,001 | 209,594 | ||||||||||||||
Commitments and contingencies (Note 16) | |||||||||||||||||
Shareholders’ equity: | |||||||||||||||||
Common stock | 1,694 | 1,685 | 1,835 | ||||||||||||||
Additional paid-in-capital | 1,540,235 | 1,507,706 | 1,501,410 | ||||||||||||||
Retained earnings | 1,843,964 | 1,284,823 | 2,148,462 | ||||||||||||||
Accumulated other comprehensive loss | (455,115) | (483,417) | (529,603) | ||||||||||||||
Treasury stock, at cost | (596,884) | (588,012) | (1,352,206) | ||||||||||||||
2,333,894 | 1,722,785 | 1,769,898 | |||||||||||||||
$ | 11,199,804 | $ | 12,010,601 | $ | 12,532,275 |
(Unaudited) | (Unaudited) | ||||||||||||||||
September 26,
2021 |
December 31,
2020 |
September 27,
2020 |
|||||||||||||||
Balances held by consolidated variable interest entities (Note 12): | |||||||||||||||||
Finance receivables, net - current | $ | 531,942 | $ | 530,882 | $ | 576,750 | |||||||||||
Other assets | $ | 2,754 | $ | 3,753 | $ | 3,129 | |||||||||||
Finance receivables, net - non-current | $ | 1,961,367 | $ | 1,889,472 | $ | 2,177,875 | |||||||||||
Restricted cash - current and non-current | $ | 167,865 | $ | 142,892 | $ | 170,925 | |||||||||||
Current portion of long-term debt, net | $ | 629,600 | $ | 608,987 | $ | 677,099 | |||||||||||
Long-term debt, net | $ | 1,565,022 | $ | 1,585,174 | $ | 1,886,594 |
Nine months ended | |||||||||||
September 26,
2021 |
September 27,
2020 |
||||||||||
Net cash provided by operating activities (Note 7) | $ | 925,551 | $ | 1,135,068 | |||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (61,476) | (92,295) | |||||||||
Origination of finance receivables | (3,444,953) | (2,873,259) | |||||||||
Collections on finance receivables | 2,968,397 | 2,730,166 | |||||||||
Other investing activities | 2,485 | 334 | |||||||||
Net cash used by investing activities | (535,547) | (235,054) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of medium-term notes | — | 1,396,602 | |||||||||
Repayments of medium-term notes | (1,400,000) | (1,400,000) | |||||||||
Proceeds from securitization debt | 1,169,910 | 2,064,450 | |||||||||
Repayments of securitization debt | (1,013,820) | (735,885) | |||||||||
Borrowings of asset-backed commercial paper | 27,406 | 225,187 | |||||||||
Repayments of asset-backed commercial paper | (206,671) | (236,846) | |||||||||
Net (decrease) increase in unsecured commercial paper | (261,978) | 509,978 | |||||||||
Net increase in credit facilities | — | 150,000 | |||||||||
Net increase in deposits | 210,144 | 29,992 | |||||||||
Dividends paid | (69,316) | (65,002) | |||||||||
Repurchase of common stock | (11,545) | (7,895) | |||||||||
Issuance of common stock under share-based plans | 4,324 | 96 | |||||||||
Net cash (used) provided by financing activities | (1,551,546) | 1,930,677 | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (11,050) | 6,071 | |||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | $ | (1,172,592) | $ | 2,836,762 | |||||||
Cash, cash equivalents and restricted cash: | |||||||||||
Cash, cash equivalents and restricted cash, beginning of period | $ | 3,409,168 | $ | 905,366 | |||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (1,172,592) | 2,836,762 | |||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 2,236,576 | $ | 3,742,128 | |||||||
Reconciliation of cash, cash equivalents and restricted cash on the Consolidated balance sheets to the Consolidated statements of cash flows: | |||||||||||
Cash and cash equivalents | $ | 2,061,303 | $ | 3,560,950 | |||||||
Restricted cash | 153,873 | 160,155 | |||||||||
Restricted cash included in Other long-term assets | 21,400 | 21,023 | |||||||||
Cash, cash equivalents and restricted cash per the Consolidated statements of cash flows | $ | 2,236,576 | $ | 3,742,128 |
Common Stock |
Additional
Paid-in Capital |
Retained
Earnings |
Accumulated
Other Comprehensive Loss |
Treasury
Stock |
Total | ||||||||||||||||||||||||||||||||||||
Issued
Shares |
Balance | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 168,503,526 | $ | 1,685 | $ | 1,507,706 | $ | 1,284,823 | $ | (483,417) | $ | (588,012) | $ | 1,722,785 | ||||||||||||||||||||||||||||
Net income | — | — | — | 259,144 | — | — | 259,144 | ||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax (Note 17) | — | — | — | — | 13,780 | — | 13,780 | ||||||||||||||||||||||||||||||||||
Dividends ($0.15 per share)
|
— | — | — | (23,105) | — | — | (23,105) | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (5,646) | (5,646) | ||||||||||||||||||||||||||||||||||
Share-based compensation | 483,326 | 5 | 9,423 | — | — | — | 9,428 | ||||||||||||||||||||||||||||||||||
Balance, March 28, 2021 | 168,986,852 | 1,690 | 1,517,129 | 1,520,862 | (469,637) | (593,658) | 1,976,386 | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | 206,340 | — | — | 206,340 | ||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax (Note 17) | — | — | — | — | 14,500 | — | 14,500 | ||||||||||||||||||||||||||||||||||
Dividends ($0.15 per share)
|
— | — | — | (23,104) | — | — | (23,104) | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (5,265) | (5,265) | ||||||||||||||||||||||||||||||||||
Share-based compensation | 322,015 | 3 | 14,327 | — | — | 1,085 | 15,415 | ||||||||||||||||||||||||||||||||||
Balance, June 27, 2021 | 169,308,867 | 1,693 | 1,531,456 | 1,704,098 | (455,137) | (597,838) | 2,184,272 | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | 162,973 | — | — | 162,973 | ||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax (Note 17) | — | — | — | — | 22 | — | 22 | ||||||||||||||||||||||||||||||||||
Dividends ($0.15 per share)
|
— | — | — | (23,107) | — | — | (23,107) | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (634) | (634) | ||||||||||||||||||||||||||||||||||
Share-based compensation | 49,831 | 1 | 8,779 | — | — | 1,588 | 10,368 | ||||||||||||||||||||||||||||||||||
Balance, September 26, 2021 | 169,358,698 | $ | 1,694 | $ | 1,540,235 | $ | 1,843,964 | $ | (455,115) | $ | (596,884) | $ | 2,333,894 | ||||||||||||||||||||||||||||
Common Stock |
Additional
Paid-in Capital |
Retained
Earnings |
Accumulated
Other Comprehensive Loss |
Treasury
Stock |
Total | ||||||||||||||||||||||||||||||||||||
Issued
Shares |
Balance | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 182,816,536 | $ | 1,828 | $ | 1,491,004 | $ | 2,193,997 | $ | (536,949) | $ | (1,345,881) | $ | 1,803,999 | ||||||||||||||||||||||||||||
Net income | — | — | — | 69,695 | — | — | 69,695 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax (Note 17) | — | — | — | — | (42,341) | — | (42,341) | ||||||||||||||||||||||||||||||||||
Dividends ($0.38 per share)
|
— | — | — | (58,817) | — | — | (58,817) | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (7,071) | (7,071) | ||||||||||||||||||||||||||||||||||
Share-based compensation | 585,053 | 6 | 4,137 | — | — | 604 | 4,747 | ||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting | — | — | — | (78,229) | — | — | (78,229) | ||||||||||||||||||||||||||||||||||
Balance, March 29, 2020 | 183,401,589 | 1,834 | 1,495,141 | 2,126,646 | (579,290) | (1,352,348) | 1,691,983 | ||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (92,217) | — | — | (92,217) | ||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax (Note 17) | — | — | — | — | 27,092 | — | 27,092 | ||||||||||||||||||||||||||||||||||
Dividends ($0.02 per share)
|
— | — | — | (3,100) | — | — | (3,100) | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (85) | (85) | ||||||||||||||||||||||||||||||||||
Share-based compensation | 9,615 | — | (882) | — | — | 914 | 32 | ||||||||||||||||||||||||||||||||||
Balance, June 28, 2020 | 183,411,204 | 1,834 | 1,494,259 | 2,031,329 | (552,198) | (1,351,519) | 1,623,705 | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | 120,218 | — | — | 120,218 | ||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax (Note 17) | — | — | — | — | 22,595 | — | 22,595 | ||||||||||||||||||||||||||||||||||
Dividends ($0.02 per share)
|
— | — | — | (3,085) | — | — | (3,085) | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (739) | (739) | ||||||||||||||||||||||||||||||||||
Share-based compensation | 82,329 | 1 | 7,151 | — | — | 52 | 7,204 | ||||||||||||||||||||||||||||||||||
Balance, September 27, 2020 | 183,493,533 | $ | 1,835 | $ | 1,501,410 | $ | 2,148,462 | $ | (529,603) | $ | (1,352,206) | $ | 1,769,898 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 26,
2021 |
September 27,
2020 |
September 26,
2021 |
September 27,
2020 |
||||||||||||||||||||
Motorcycles and Related Products Revenue: | |||||||||||||||||||||||
Motorcycles | $ | 885,626 | $ | 684,344 | $ | 2,931,669 | $ | 2,030,448 | |||||||||||||||
Parts & Accessories | 204,506 | 209,808 | 577,035 | 513,201 | |||||||||||||||||||
General Merchandise | 49,424 | 49,356 | 155,378 | 136,321 | |||||||||||||||||||
Licensing | 8,481 | 8,894 | 22,865 | 21,826 | |||||||||||||||||||
Other | 12,581 | 11,627 | 37,278 | 31,295 | |||||||||||||||||||
1,160,618 | 964,029 | 3,724,225 | 2,733,091 | ||||||||||||||||||||
Financial Services Revenue: | |||||||||||||||||||||||
Interest income | 174,103 | 174,464 | 501,645 | 512,726 | |||||||||||||||||||
Other | 30,589 | 27,191 | 94,005 | 83,338 | |||||||||||||||||||
204,692 | 201,655 | 595,650 | 596,064 | ||||||||||||||||||||
$ | 1,365,310 | $ | 1,165,684 | $ | 4,319,875 | $ | 3,329,155 |
September 26,
2021 |
September 27,
2020 |
||||||||||||||||
Balance, beginning of period | $ | 36,614 | $ | 29,745 | |||||||||||||
Balance, end of period | $ | 38,682 | $ | 31,209 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 26,
2021 |
September 27,
2020 |
September 26,
2021 |
September 27,
2020 |
||||||||||||||||||||
Motorcycles and Related Products | $ | 517 | $ | 43,581 | $ | 731 | $ | 84,586 | |||||||||||||||
Financial Services | 98 | 334 | 436 | 1,278 | |||||||||||||||||||
$ | 615 | $ | 43,915 | $ | 1,167 | $ | 85,864 |
Three months ended September 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Employee Termination Benefits |
Contract Terminations
& Other |
Non-Current Asset Adjustments | Total | ||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 1,246 | $ | 2,084 | $ | — | $ | 3,330 | |||||||||||||||||||||||||||||||||||||||
Restructuring (benefit) expense | (165) | 807 | (27) | 615 | |||||||||||||||||||||||||||||||||||||||||||
Utilized – cash
|
(397) | (1,197) | — | (1,594) | |||||||||||||||||||||||||||||||||||||||||||
Utilized – non cash
|
— | — | 27 | 27 | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency changes | (7) | (21) | — | (28) | |||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | 677 | $ | 1,673 |
|
$ | — | $ | 2,350 | ||||||||||||||||||||||||||||||||||||||
Three months ended September 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Employee Termination Benefits |
Contract Terminations
& Other |
Non-Current Asset Adjustments | Total | ||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 25,298 | $ | 14,270 | $ | — | $ | 39,568 | |||||||||||||||||||||||||||||||||||||||
Restructuring expense | 4,493 | 23,422 | 16,000 | 43,915 | |||||||||||||||||||||||||||||||||||||||||||
Utilized – cash
|
(11,940) | (5,899) | — | (17,839) | |||||||||||||||||||||||||||||||||||||||||||
Utilized – non cash
|
— | — | (16,000) | (16,000) | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency changes | 166 | (54) | — | 112 | |||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | 18,017 | $ | 31,739 |
|
$ | — | $ | 49,756 | ||||||||||||||||||||||||||||||||||||||
Nine months ended September 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Employee Termination Benefits |
Contract Terminations
& Other |
Non-Current Asset Adjustments | Total | ||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 7,724 | $ | 16,196 | $ | — | $ | 23,920 | |||||||||||||||||||||||||||||||||||||||
Restructuring (benefit) expense | (1,131) | 2,576 | (278) | 1,167 | |||||||||||||||||||||||||||||||||||||||||||
Utilized – cash
|
(5,743) | (16,987) | — | (22,730) | |||||||||||||||||||||||||||||||||||||||||||
Utilized – non cash
|
— | — | 278 | 278 | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency changes | (173) | (112) | — | (285) | |||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | 677 | $ | 1,673 |
|
$ | — | $ | 2,350 | ||||||||||||||||||||||||||||||||||||||
Nine months ended September 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Employee Termination Benefits |
Contract Terminations
& Other |
Non-Current Asset Adjustments | Total | ||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
Restructuring expense | 29,814 | 37,692 | 18,358 | 85,864 | |||||||||||||||||||||||||||||||||||||||||||
Utilized – cash
|
(11,940) | (5,899) | — | (17,839) | |||||||||||||||||||||||||||||||||||||||||||
Utilized – non cash
|
— | — | (18,358) | (18,358) | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency changes | 143 | (54) | — | 89 | |||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | 18,017 | $ | 31,739 |
|
$ | — | $ | 49,756 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 26,
2021 |
September 27,
2020 |
September 26,
2021 |
September 27,
2020 |
||||||||||||||||||||
Net income | $ | 162,973 | $ | 120,218 | $ | 628,457 | $ | 97,696 | |||||||||||||||
Basic weighted-average shares outstanding | 153,863 | 153,252 | 153,700 | 153,153 | |||||||||||||||||||
Effect of dilutive securities – employee stock compensation plan
|
1,254 | 663 | 1,203 | 637 | |||||||||||||||||||
Diluted weighted-average shares outstanding | 155,117 | 153,915 | 154,903 | 153,790 | |||||||||||||||||||
Net earnings per share: | |||||||||||||||||||||||
Basic | $ | 1.06 | $ | 0.78 | $ | 4.09 | $ | 0.64 | |||||||||||||||
Diluted | $ | 1.05 | $ | 0.78 | $ | 4.06 | $ | 0.64 |
September 26,
2021 |
December 31,
2020 |
September 27,
2020 |
|||||||||||||||
Mutual funds | $ | 48,766 | $ | 52,061 | $ | 48,845 | |||||||||||
September 26,
2021 |
December 31,
2020 |
September 27,
2020 |
|||||||||||||||
Raw materials and work in process | $ | 279,699 | $ | 211,979 | $ | 152,740 | |||||||||||
Motorcycle finished goods | 178,315 | 281,132 | 125,930 | ||||||||||||||
Parts & Accessories and General Merchandise | 86,977 | 84,469 | 100,131 | ||||||||||||||
Inventory at lower of FIFO cost or net realizable value | 544,991 | 577,580 | 378,801 | ||||||||||||||
Excess of FIFO over LIFO cost | (69,677) | (54,083) | (56,426) | ||||||||||||||
$ | 475,314 | $ | 523,497 | $ | 322,375 |
2021 | $ | 47,920 | |||
2022 | 45,000 | ||||
2023 | 65,000 | ||||
2024 | 58,500 | ||||
2025 | — | ||||
Thereafter | 74,717 | ||||
Unamortized fees | (867) | ||||
$ | 290,270 |
Nine months ended | |||||||||||
September 26,
2021 |
September 27,
2020 |
||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 628,457 | $ | 97,696 | |||||||
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 122,483 | 140,057 | |||||||||
Amortization of deferred loan origination costs | 63,265 | 52,374 | |||||||||
Amortization of financing origination fees | 10,426 | 10,628 | |||||||||
Provision for long-term employee benefits | 19,640 | 23,557 | |||||||||
Employee benefit plan contributions and payments | (14,677) | (5,456) | |||||||||
Stock compensation expense | 34,032 | 12,076 | |||||||||
Net change in wholesale finance receivables related to sales | (22,031) | 330,793 | |||||||||
Provision for credit losses | 4,935 | 178,433 | |||||||||
Deferred income taxes | 10,626 | (18,978) | |||||||||
Other, net | 2,094 | (10,863) | |||||||||
Changes in current assets and liabilities: | |||||||||||
Accounts receivable, net | (148,670) | 29,630 | |||||||||
Finance receivables – accrued interest and other
|
11,088 | 5,097 | |||||||||
Inventories, net | 31,874 | 273,668 | |||||||||
Accounts payable and accrued liabilities | 168,306 | (16,922) | |||||||||
Other current assets | 3,703 | 33,278 | |||||||||
297,094 | 1,037,372 | ||||||||||
Net cash provided by operating activities | $ | 925,551 | $ | 1,135,068 |
September 26,
2021 |
December 31,
2020 |
September 27,
2020 |
|||||||||||||||
Retail finance receivables | $ | 6,727,956 | $ | 6,344,195 | $ | 6,585,298 | |||||||||||
Wholesale finance receivables | 491,136 | 489,749 | 666,896 | ||||||||||||||
7,219,092 | 6,833,944 | 7,252,194 | |||||||||||||||
Allowance for credit losses | (355,834) | (390,936) | (408,702) | ||||||||||||||
$ | 6,863,258 | $ | 6,443,008 | $ | 6,843,492 |
Three months ended September 26, 2021 | Nine months ended September 26, 2021 | ||||||||||||||||||||||||||||||||||
Retail | Wholesale | Total | Retail | Wholesale | Total | ||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 342,490 | $ | 16,321 | $ | 358,811 | $ | 371,738 | $ | 19,198 | $ | 390,936 | |||||||||||||||||||||||
Provision for credit losses | 13,861 | (2,653) | 11,208 | 10,465 | (5,530) | 4,935 | |||||||||||||||||||||||||||||
Charge-offs | (24,670) | — | (24,670) | (76,366) | — | (76,366) | |||||||||||||||||||||||||||||
Recoveries | 10,335 | 150 | 10,485 | 36,179 | 150 | 36,329 | |||||||||||||||||||||||||||||
Balance, end of period | $ | 342,016 | $ | 13,818 | $ | 355,834 | $ | 342,016 | $ | 13,818 | $ | 355,834 | |||||||||||||||||||||||
Three months ended September 27, 2020 | Nine months ended September 27, 2020 | ||||||||||||||||||||||||||||||||||
Retail | Wholesale | Total | Retail | Wholesale | Total | ||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 389,758 | $ | 21,257 | $ | 411,015 | $ | 188,501 | $ | 10,080 | $ | 198,581 | |||||||||||||||||||||||
Cumulative effect of change in accounting(a)
|
— | — | — | 95,558 | 5,046 | 100,604 | |||||||||||||||||||||||||||||
Provision for credit losses | 8,024 | (189) | 7,835 | 172,491 | 5,942 | 178,433 | |||||||||||||||||||||||||||||
Charge-offs | (20,378) | (2,442) | (22,820) | (105,452) | (2,442) | (107,894) | |||||||||||||||||||||||||||||
Recoveries | 12,672 | — | 12,672 | 38,978 | — | 38,978 | |||||||||||||||||||||||||||||
Balance, end of period | $ | 390,076 | $ | 18,626 | $ | 408,702 | $ | 390,076 | $ | 18,626 | $ | 408,702 |
September 26, 2021 | |||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 & Prior | Total | |||||||||||||||||||||||||||||||||||
U.S. Retail: | |||||||||||||||||||||||||||||||||||||||||
Super prime | $ | 896,163 | $ | 551,078 | $ | 367,490 | $ | 206,333 | $ | 83,674 | $ | 38,494 | $ | 2,143,232 | |||||||||||||||||||||||||||
Prime | 1,228,335 | 805,349 | 538,440 | 323,554 | 171,308 | 107,715 | 3,174,701 | ||||||||||||||||||||||||||||||||||
Sub-prime | 428,238 | 312,163 | 207,139 | 119,730 | 72,026 | 64,890 | 1,204,186 | ||||||||||||||||||||||||||||||||||
2,552,736 | 1,668,590 | 1,113,069 | 649,617 | 327,008 | 211,099 | 6,522,119 | |||||||||||||||||||||||||||||||||||
Canadian Retail: | |||||||||||||||||||||||||||||||||||||||||
Super prime | 50,110 | 36,596 | 31,173 | 16,701 | 6,265 | 2,239 | 143,084 | ||||||||||||||||||||||||||||||||||
Prime | 16,166 | 13,904 | 10,336 | 7,026 | 4,228 | 2,350 | 54,010 | ||||||||||||||||||||||||||||||||||
Sub-prime | 2,345 | 2,436 | 1,694 | 1,090 | 704 | 474 | 8,743 | ||||||||||||||||||||||||||||||||||
68,621 | 52,936 | 43,203 | 24,817 | 11,197 | 5,063 | 205,837 | |||||||||||||||||||||||||||||||||||
$ | 2,621,357 | $ | 1,721,526 | $ | 1,156,272 | $ | 674,434 | $ | 338,205 | $ | 216,162 | $ | 6,727,956 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 & Prior | Total | |||||||||||||||||||||||||||||||||||
U.S. Retail: | |||||||||||||||||||||||||||||||||||||||||
Super prime | $ | 822,631 | $ | 575,977 | $ | 355,529 | $ | 165,436 | $ | 71,360 | $ | 29,181 | $ | 2,020,114 | |||||||||||||||||||||||||||
Prime | 1,133,637 | 794,058 | 508,713 | 293,358 | 156,688 | 77,046 | 2,963,500 | ||||||||||||||||||||||||||||||||||
Sub-prime | 435,875 | 295,403 | 177,598 | 111,163 | 72,556 | 52,060 | 1,144,655 | ||||||||||||||||||||||||||||||||||
2,392,143 | 1,665,438 | 1,041,840 | 569,957 | 300,604 | 158,287 | 6,128,269 | |||||||||||||||||||||||||||||||||||
Canadian Retail: | |||||||||||||||||||||||||||||||||||||||||
Super prime | 53,465 | 48,692 | 28,581 | 13,818 | 5,018 | 2,011 | 151,585 | ||||||||||||||||||||||||||||||||||
Prime | 18,568 | 14,257 | 10,269 | 6,727 | 3,198 | 2,025 | 55,044 | ||||||||||||||||||||||||||||||||||
Sub-prime | 3,172 | 2,498 | 1,560 | 1,095 | 607 | 365 | 9,297 | ||||||||||||||||||||||||||||||||||
75,205 | 65,447 | 40,410 | 21,640 | 8,823 | 4,401 | 215,926 | |||||||||||||||||||||||||||||||||||
$ | 2,467,348 | $ | 1,730,885 | $ | 1,082,250 | $ | 591,597 | $ | 309,427 | $ | 162,688 | $ | 6,344,195 |
September 27, 2020 | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 & Prior | Total | |||||||||||||||||||||||||||||||||||
U.S. Retail: | |||||||||||||||||||||||||||||||||||||||||
Super prime | $ | 730,539 | $ | 649,174 | $ | 408,201 | $ | 196,050 | $ | 90,179 | $ | 39,749 | $ | 2,113,892 | |||||||||||||||||||||||||||
Prime | 993,429 | 877,714 | 570,851 | 336,134 | 187,067 | 101,403 | 3,066,598 | ||||||||||||||||||||||||||||||||||
Sub-prime | 387,766 | 326,537 | 196,001 | 124,312 | 82,975 | 64,537 | 1,182,128 | ||||||||||||||||||||||||||||||||||
2,111,734 | 1,853,425 | 1,175,053 | 656,496 | 360,221 | 205,689 | 6,362,618 | |||||||||||||||||||||||||||||||||||
Canadian Retail: | |||||||||||||||||||||||||||||||||||||||||
Super prime | 48,974 | 51,939 | 31,351 | 16,013 | 6,526 | 2,723 | 157,526 | ||||||||||||||||||||||||||||||||||
Prime | 17,053 | 14,681 | 10,630 | 7,285 | 3,555 | 2,489 | 55,693 | ||||||||||||||||||||||||||||||||||
Sub-prime | 2,790 | 2,630 | 1,706 | 1,171 | 685 | 479 | 9,461 | ||||||||||||||||||||||||||||||||||
68,817 | 69,250 | 43,687 | 24,469 | 10,766 | 5,691 | 222,680 | |||||||||||||||||||||||||||||||||||
$ | 2,180,551 | $ | 1,922,675 | $ | 1,218,740 | $ | 680,965 | $ | 370,987 | $ | 211,380 | $ | 6,585,298 |
September 26, 2021 | |||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 & Prior | Total | |||||||||||||||||||||||||||||||||||
Non-Performing | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Substandard | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Special Mention | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Medium Risk | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Low Risk | 432,088 | 19,082 | 22,821 | 11,218 | 4,222 | 1,705 | 491,136 | ||||||||||||||||||||||||||||||||||
$ | 432,088 | $ | 19,082 | $ | 22,821 | $ | 11,218 | $ | 4,222 | $ | 1,705 | $ | 491,136 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 & Prior | Total | |||||||||||||||||||||||||||||||||||
Non-Performing | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Substandard | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Special Mention | 658 | 365 | 31 | — | — | — | 1,054 | ||||||||||||||||||||||||||||||||||
Medium Risk | 1,925 | 242 | — | — | — | — | 2,167 | ||||||||||||||||||||||||||||||||||
Low Risk | 388,568 | 71,441 | 13,412 | 7,887 | 2,297 | 2,923 | 486,528 | ||||||||||||||||||||||||||||||||||
$ | 391,151 | $ | 72,048 | $ | 13,443 | $ | 7,887 | $ | 2,297 | $ | 2,923 | $ | 489,749 |
September 27, 2020 | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 & Prior | Total | |||||||||||||||||||||||||||||||||||
Non-Performing | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
Doubtful | — | — | 14 | — | — | — | 14 | ||||||||||||||||||||||||||||||||||
Substandard | 277 | 238 | — | — | — | — | 515 | ||||||||||||||||||||||||||||||||||
Special Mention | 2,316 | 1,213 | 160 | — | — | 1,139 | 4,828 | ||||||||||||||||||||||||||||||||||
Medium Risk | 1,283 | 448 | 33 | — | — | — | 1,764 | ||||||||||||||||||||||||||||||||||
Low Risk | 505,328 | 118,466 | 18,602 | 8,551 | 5,525 | 3,303 | 659,775 | ||||||||||||||||||||||||||||||||||
$ | 509,204 | $ | 120,365 | $ | 18,809 | $ | 8,551 | $ | 5,525 | $ | 4,442 | $ | 666,896 |
September 26, 2021 | |||||||||||||||||||||||||||||||||||
Current |
31-60 Days
Past Due |
61-90 Days
Past Due |
Greater than
90 Days Past Due |
Total
Past Due |
Total | ||||||||||||||||||||||||||||||
Retail finance receivables | $ | 6,561,412 | $ | 101,157 | $ | 35,273 | $ | 30,114 | $ | 166,544 | $ | 6,727,956 | |||||||||||||||||||||||
Wholesale finance receivables | 490,974 | 46 | 92 | 24 | 162 | 491,136 | |||||||||||||||||||||||||||||
$ | 7,052,386 | $ | 101,203 | $ | 35,365 | $ | 30,138 | $ | 166,706 | $ | 7,219,092 | ||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Current |
31-60 Days
Past Due |
61-90 Days
Past Due |
Greater than
90 Days Past Due |
Total
Past Due |
Total | ||||||||||||||||||||||||||||||
Retail finance receivables | $ | 6,164,369 | $ | 106,818 | $ | 39,933 | $ | 33,075 | $ | 179,826 | $ | 6,344,195 | |||||||||||||||||||||||
Wholesale finance receivables | 489,556 | 166 | 23 | 4 | 193 | 489,749 | |||||||||||||||||||||||||||||
$ | 6,653,925 | $ | 106,984 | $ | 39,956 | $ | 33,079 | $ | 180,019 | $ | 6,833,944 | ||||||||||||||||||||||||
September 27, 2020 | |||||||||||||||||||||||||||||||||||
Current |
31-60 Days
Past Due |
61-90 Days
Past Due |
Greater than
90 Days Past Due |
Total
Past Due |
Total | ||||||||||||||||||||||||||||||
Retail finance receivables | $ | 6,434,642 | $ | 96,243 | $ | 31,467 | $ | 22,946 | $ | 150,656 | $ | 6,585,298 | |||||||||||||||||||||||
Wholesale finance receivables | 666,335 | 244 | 3 | 314 | 561 | 666,896 | |||||||||||||||||||||||||||||
$ | 7,100,977 | $ | 96,487 | $ | 31,470 | $ | 23,260 | $ | 151,217 | $ | 7,252,194 |
Derivative Financial Instruments
Designated as Cash Flow Hedging Instruments |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
September 26, 2021 | December 31, 2020 | September 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Notional
Value |
Other Current Assets | Accrued Liabilities |
Notional
Value |
Other Current Assets | Accrued Liabilities |
Notional
Value |
Other Current Assets | Accrued Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 406,220 | $ | 10,174 | $ | 502 | $ | 533,925 | $ | 11 | $ | 21,927 | $ | 352,933 | $ | 2,334 | $ | 6,132 | |||||||||||||||||||||||||||||||||||
Commodity contracts | 1,000 | 458 | — | 671 | — | 52 | 801 | 95 | — | ||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps | 1,367,460 | 47,989 | — | 1,367,460 | 138,622 | — | 1,367,460 | 57,787 | 292 | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | — | — | — | 450,000 | — | 3,086 | 450,000 | — | 6,184 | ||||||||||||||||||||||||||||||||||||||||||||
$ | 1,774,680 | $ | 58,621 | $ | 502 | $ | 2,352,056 | $ | 138,633 | $ | 25,065 | $ | 2,171,194 | $ | 60,216 | $ | 12,608 | ||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments
Not Designated as Hedging Instruments |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
September 26, 2021 | December 31, 2020 | September 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Notional
Value |
Other Current Assets | Accrued Liabilities |
Notional
Value |
Other Current Assets | Accrued Liabilities |
Notional
Value |
Other Current Assets | Accrued Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 135,381 | $ | 375 | $ | 162 | $ | 245,494 | $ | 737 | $ | 435 | $ | 284,991 | $ | 342 | $ | 574 | |||||||||||||||||||||||||||||||||||
Commodity contracts | 9,920 | 739 | 30 | 6,806 | 849 | 21 | 6,854 | 231 | 215 | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate caps | 608,222 | 112 | — | 978,058 | 47 | — | 1,124,260 | 60 | — | ||||||||||||||||||||||||||||||||||||||||||||
$ | 753,523 | $ | 1,226 | $ | 192 | $ | 1,230,358 | $ | 1,633 | $ | 456 | $ | 1,416,105 | $ | 633 | $ | 789 |
Gain/(Loss)
Recognized in OCI |
Gain/(Loss)
Reclassified from AOCL into Income |
||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||
September 26,
2021 |
September 27,
2020 |
September 26,
2021 |
September 27,
2020 |
September 26,
2021 |
September 27,
2020 |
September 26,
2021 |
September 27,
2020 |
||||||||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 8,653 | $ | (6,587) | $ | 20,829 | $ | 6,250 | $ | (3,504) | $ | 3,027 | $ | (16,051) | $ | 11,732 | |||||||||||||||||||||||||||||||
Commodity contracts | 390 | 131 | 546 | (26) | 65 | (12) | 36 | (201) | |||||||||||||||||||||||||||||||||||||||
Cross-currency swaps | (40,741) | 63,182 | (90,633) | 49,168 | (33,600) | 59,625 | (77,775) | 83,634 | |||||||||||||||||||||||||||||||||||||||
Treasury rate lock contracts | — | — | — | — | (127) | (124) | (375) | (370) | |||||||||||||||||||||||||||||||||||||||
Interest rate swaps | — | (994) | 397 | (7,503) | — | (3,931) | (2,689) | (10,500) | |||||||||||||||||||||||||||||||||||||||
$ | (31,698) | $ | 55,732 | $ | (68,861) | $ | 47,889 | $ | (37,166) | $ | 58,585 | $ | (96,854) | $ | 84,295 |
Motorcycles
cost of goods sold |
Selling, administrative &
engineering expense |
Interest expense | Financial Services interest expense | ||||||||||||||||||||
Three months ended September 26, 2021 | |||||||||||||||||||||||
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 850,193 | $ | 254,312 | $ | 7,779 | $ | 44,770 | |||||||||||||||
Gain/(loss) reclassified from AOCL into income: | |||||||||||||||||||||||
Foreign currency contracts | $ | (3,504) | $ | — | $ | — | $ | — | |||||||||||||||
Commodity contracts | $ | 65 | $ | — | $ | — | $ | — | |||||||||||||||
Cross-currency swaps | $ | — | $ | (33,600) | $ | — | $ | — | |||||||||||||||
Treasury rate lock contracts | $ | — | $ | — | $ | (91) | $ | (36) | |||||||||||||||
Three months ended September 27, 2020 | |||||||||||||||||||||||
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 676,796 | $ | 231,721 | $ | 7,783 | $ | 67,533 | |||||||||||||||
Gain/(loss) reclassified from AOCL into income: | |||||||||||||||||||||||
Foreign currency contracts | $ | 3,027 | $ | — | $ | — | $ | — | |||||||||||||||
Commodity contracts | $ | (12) | $ | — | $ | — | $ | — | |||||||||||||||
Cross-currency swaps | $ | — | $ | 59,625 | $ | — | $ | — | |||||||||||||||
Treasury rate lock contracts | $ | — | $ | — | $ | (91) | $ | (33) | |||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | — | $ | (3,931) | |||||||||||||||
Motorcycles
cost of goods sold |
Selling, administrative &
engineering expense |
Interest expense | Financial Services interest expense | ||||||||||||||||||||
Nine months ended September 26, 2021 | |||||||||||||||||||||||
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 2,586,264 | $ | 747,665 | $ | 23,209 | $ | 149,098 | |||||||||||||||
Gain/(loss) reclassified from AOCL into income: | |||||||||||||||||||||||
Foreign currency contracts | $ | (16,051) | $ | — | $ | — | $ | — | |||||||||||||||
Commodity contracts | $ | 36 | $ | — | $ | — | $ | — | |||||||||||||||
Cross-currency swaps | $ | — | $ | (77,775) | $ | — | $ | — | |||||||||||||||
Treasury rate lock contracts | $ | — | $ | — | $ | (272) | $ | (103) | |||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | — | $ | (2,689) | |||||||||||||||
Nine months ended September 27, 2020 | |||||||||||||||||||||||
Line item on the Consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | 2,019,310 | $ | 734,057 | $ | 23,307 | $ | 182,193 | |||||||||||||||
Gain/(loss) reclassified from AOCL into income: | |||||||||||||||||||||||
Foreign currency contracts | $ | 11,732 | $ | — | $ | — | $ | — | |||||||||||||||
Commodity contracts | $ | (201) | $ | — | $ | — | $ | — | |||||||||||||||
Cross-currency swaps | $ | — | $ | 83,634 | $ | — | $ | — | |||||||||||||||
Treasury rate lock contracts | $ | — | $ | — | $ | (272) | $ | (98) | |||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | — | $ | (10,500) |
Amount of Gain/(Loss)
Recognized in Income |
|||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||
September 26,
2021 |
September 27,
2020 |
September 26,
2021 |
September 27,
2020 |
||||||||||||||||||||
Foreign currency contracts | $ | 2,152 | $ | (3,569) | $ | (3,396) | $ | (1,897) | |||||||||||||||
Commodity contracts | 102 | 134 | 1,528 | (859) | |||||||||||||||||||
Interest rate caps | (39) | 92 | 65 | 519 | |||||||||||||||||||
$ | 2,215 | $ | (3,343) | $ | (1,803) | $ | (2,237) |
September 26,
2021 |
December 31,
2020 |
September 27,
2020 |
|||||||||||||||
Lease assets | $ | 47,507 | $ | 45,203 | $ | 47,599 | |||||||||||
Accrued liabilities | $ | 18,468 | $ | 17,081 | $ | 17,704 | |||||||||||
Lease liabilities | 26,017 | 30,115 | 31,225 | ||||||||||||||
$ | 44,485 | $ | 47,196 | $ | 48,929 |
Operating Leases | |||||
2021 | $ | 5,017 | |||
2022 | 17,694 | ||||
2023 | 9,119 | ||||
2024 | 6,907 | ||||
2025 | 3,923 | ||||
Thereafter | 3,406 | ||||
Future lease payments | 46,066 | ||||
Present value discount | (1,581) | ||||
Lease liabilities | $ | 44,485 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 26,
2021 |
September 27,
2020 |
September 26,
2021 |
September 27,
2020 |
||||||||||||||||||||
Cash outflows for amounts included in the measurement of lease liabilities | $ | 4,756 | $ | 5,274 | $ | 20,479 | $ | 15,893 | |||||||||||||||
ROU assets obtained in exchange for lease obligations, net of modifications
|
$ | 11,189 | $ | (1,327) | $ | 17,390 | $ | 327 |
September 26,
2021 |
December 31,
2020 |
September 27,
2020 |
|||||||||||||||
Weighted-average remaining lease term (in years) | 3.36 | 3.78 | 3.92 | ||||||||||||||
Weighted-average discount rate | 2.4 | % | 3.1 | % | 3.1 | % |
September 26,
2021 |
December 31,
2020 |
September 27,
2020 |
|||||||||||||||
Unsecured commercial paper | $ | 749,620 | $ | 1,014,274 | $ | 1,077,763 | |||||||||||
364-day credit facility borrowings | — | — | 150,000 | ||||||||||||||
$ | 749,620 | $ | 1,014,274 | $ | 1,227,763 |
September 26,
2021 |
December 31,
2020 |
September 27,
2020 |
||||||||||||||||||
Secured debt: | ||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | $ | 98,310 | $ | 116,678 | $ | 127,500 | ||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | 242,254 | 402,205 | 467,338 | |||||||||||||||||
Asset-backed securitization debt | 1,961,571 | 1,800,393 | 2,106,258 | |||||||||||||||||
Unamortized discounts and debt issuance costs | (9,203) | (8,437) | (9,903) | |||||||||||||||||
2,292,932 | 2,310,839 | 2,691,193 | ||||||||||||||||||
Unsecured notes (at par value): | ||||||||||||||||||||
Medium-term notes: | ||||||||||||||||||||
Due in 2021, issued January 2016 | 2.85 | % | — | 600,000 | 600,000 | |||||||||||||||
Due in 2021, issued November 2018 |
LIBOR + 0.94%
|
— | 450,000 | 450,000 | ||||||||||||||||
Due in 2021, issued May 2018 | 3.55 | % | — | 350,000 | 350,000 | |||||||||||||||
Due in 2022, issued February 2019 | 4.05 | % | 550,000 | 550,000 | 550,000 | |||||||||||||||
Due in 2022, issued June 2017 | 2.55 | % | 400,000 | 400,000 | 400,000 | |||||||||||||||
Due in 2023, issued February 2018 | 3.35 | % | 350,000 | 350,000 | 350,000 | |||||||||||||||
Due in 2023, issued May 2020(a)
|
4.94 | % | 756,763 | 797,206 | 760,890 | |||||||||||||||
Due in 2024, issued November 2019(b)
|
3.14 | % | 698,550 | 735,882 | 702,360 | |||||||||||||||
Due in 2025, issued June 2020 | 3.35 | % | 700,000 | 700,000 | 700,000 | |||||||||||||||
Unamortized discounts and debt issuance costs | (10,649) | (15,374) | (17,289) | |||||||||||||||||
3,444,664 | 4,917,714 | 4,845,961 | ||||||||||||||||||
September 26,
2021 |
December 31,
2020 |
September 27,
2020 |
||||||||||||||||||
Senior notes: | ||||||||||||||||||||
Due in 2025, issued July 2015 | 3.50 | % | 450,000 | 450,000 | 450,000 | |||||||||||||||
Due in 2045, issued July 2015 | 4.625 | % | 300,000 | 300,000 | 300,000 | |||||||||||||||
Unamortized discounts and debt issuance costs | (5,506) | (6,023) | (6,194) | |||||||||||||||||
744,494 | 743,977 | 743,806 | ||||||||||||||||||
4,189,158 | 5,661,691 | 5,589,767 | ||||||||||||||||||
Long-term debt | 6,482,090 | 7,972,530 | 8,280,960 | |||||||||||||||||
Current portion of long-term debt, net | (1,605,798) | (2,039,597) | (2,109,284) | |||||||||||||||||
Long-term debt, net | $ | 4,876,292 | $ | 5,932,933 | $ | 6,171,676 |
2021 | $ | 970,079 | |||
2022 | 1,615,337 | ||||
2023 | 1,752,575 | ||||
2024 | 1,150,272 | ||||
2025 | 1,384,747 | ||||
Thereafter | 384,058 | ||||
$ | 7,257,068 |
September 26, 2021 | |||||||||||||||||||||||||||||||||||
Finance receivables | Allowance for credit losses | Restricted cash | Other assets | Total assets | Asset-backed debt, net | ||||||||||||||||||||||||||||||
On-balance sheet assets and liabilities: | |||||||||||||||||||||||||||||||||||
Consolidated VIEs: | |||||||||||||||||||||||||||||||||||
Asset-backed securitizations | $ | 2,362,454 | $ | (119,975) | $ | 148,177 | $ | 2,228 | $ | 2,392,884 | $ | 1,952,368 | |||||||||||||||||||||||
Asset-backed U.S. commercial paper conduit facility | 264,226 | (13,396) | 19,688 | 526 | 271,044 | 242,254 | |||||||||||||||||||||||||||||
Unconsolidated VIEs: | |||||||||||||||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | 112,374 | (4,729) | 7,408 | 157 | 115,210 | 98,310 | |||||||||||||||||||||||||||||
$ | 2,739,054 | $ | (138,100) | $ | 175,273 | $ | 2,911 | $ | 2,779,138 | $ | 2,292,932 | ||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Finance receivables | Allowance for credit losses | Restricted cash | Other assets | Total assets | Asset-backed debt, net | ||||||||||||||||||||||||||||||
On-balance sheet assets and liabilities: | |||||||||||||||||||||||||||||||||||
Consolidated VIEs: | |||||||||||||||||||||||||||||||||||
Asset-backed securitizations | $ | 2,129,372 | $ | (124,627) | $ | 116,268 | $ | 2,622 | $ | 2,123,635 | $ | 1,791,956 | |||||||||||||||||||||||
Asset-backed U.S. commercial paper conduit facility | 441,402 | (25,793) | 26,624 | 1,131 | 443,364 | 402,205 | |||||||||||||||||||||||||||||
Unconsolidated VIEs: | |||||||||||||||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | 133,976 | (6,508) | 9,073 | 126 | 136,667 | 116,678 | |||||||||||||||||||||||||||||
$ | 2,704,750 | $ | (156,928) | $ | 151,965 | $ | 3,879 | $ | 2,703,666 | $ | 2,310,839 | ||||||||||||||||||||||||
September 27, 2020 | |||||||||||||||||||||||||||||||||||
Finance receivables | Allowance for credit losses | Restricted cash | Other assets | Total assets | Asset-backed debt, net | ||||||||||||||||||||||||||||||
On-balance sheet assets and liabilities: | |||||||||||||||||||||||||||||||||||
Consolidated VIEs: | |||||||||||||||||||||||||||||||||||
Asset-backed securitizations | $ | 2,422,841 | $ | (143,775) | $ | 138,276 | $ | 1,923 | $ | 2,419,265 | $ | 2,096,355 | |||||||||||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | 505,507 | (29,948) | 32,649 | 1,206 | 509,414 | 467,338 | |||||||||||||||||||||||||||||
Unconsolidated VIEs: | |||||||||||||||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | 146,140 | (6,878) | 10,253 | 142 | 149,657 | 127,500 | |||||||||||||||||||||||||||||
$ | 3,074,488 | $ | (180,601) | $ | 181,178 | $ | 3,271 | $ | 3,078,336 | $ | 2,691,193 |
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Transfers | Proceeds | Proceeds, net | Transfers | Proceeds | Proceeds, net | ||||||||||||||||||||||||||||||
First quarter | $ | 663.1 | $ | 600.0 | $ | 597.4 | $ | 580.2 | $ | 525.0 | $ | 522.7 | |||||||||||||||||||||||
Second quarter | — | — | — | 1,840.5 | 1,550.2 | 1,541.8 | |||||||||||||||||||||||||||||
Third quarter | 635.5 | 575.0 | 572.5 | — | — | — | |||||||||||||||||||||||||||||
$ | 1,298.6 | $ | 1,175.0 | $ | 1,169.9 | $ | 2,420.7 | $ | 2,075.2 | $ | 2,064.5 |
September 26, 2021 | |||||||||||||||||||||||
Balance | Level 1 | Level 2 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents | $ | 1,753,398 | $ | 1,503,400 | $ | 249,998 | |||||||||||||||||
Marketable securities | 48,766 | 48,766 | — | ||||||||||||||||||||
Derivative financial instruments | 59,847 | — | 59,847 | ||||||||||||||||||||
$ | 1,862,011 | $ | 1,552,166 | $ | 309,845 | ||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative financial instruments | $ | 694 | $ | — | $ | 694 | |||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Balance | Level 1 | Level 2 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents | $ | 3,019,884 | $ | 2,819,884 | $ | 200,000 | |||||||||||||||||
Marketable securities | 52,061 | 52,061 | — | ||||||||||||||||||||
Derivative financial instruments | 140,266 | — | 140,266 | ||||||||||||||||||||
$ | 3,212,211 | $ | 2,871,945 | $ | 340,266 | ||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative financial instruments | $ | 25,521 | $ | — | $ | 25,521 | |||||||||||||||||
September 27, 2020 | |||||||||||||||||||||||
Balance | Level 1 | Level 2 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents | $ | 3,250,891 | $ | 3,150,891 | $ | 100,000 | |||||||||||||||||
Marketable securities | 48,845 | 48,845 | — | ||||||||||||||||||||
Derivative financial instruments | 60,849 | — | 60,849 | ||||||||||||||||||||
$ | 3,360,585 | $ | 3,199,736 | $ | 160,849 | ||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative financial instruments | $ | 13,397 | $ | — | $ | 13,397 |
September 26, 2021 | December 31, 2020 | September 27, 2020 | |||||||||||||||||||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Finance receivables, net | $ | 7,117,828 | $ | 6,863,258 | $ | 6,586,348 | $ | 6,443,008 | $ | 6,954,661 | $ | 6,843,492 | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Deposits, net | $ | 292,284 | $ | 290,270 | $ | 79,965 | $ | 79,965 | $ | 29,999 | $ | 29,999 | |||||||||||||||||||||||
Debt: | |||||||||||||||||||||||||||||||||||
Unsecured commercial paper | $ | 749,620 | $ | 749,620 | $ | 1,014,274 | $ | 1,014,274 | $ | 1,077,763 | $ | 1,077,763 | |||||||||||||||||||||||
Global credit facility borrowings | $ | — | $ | — | $ | — | $ | — | $ | 150,000 | $ | 150,000 | |||||||||||||||||||||||
Asset-backed U.S. commercial paper conduit facilities | $ | 242,254 | $ | 242,254 | $ | 402,205 | $ | 402,205 | $ | 467,338 | $ | 467,338 | |||||||||||||||||||||||
Asset-backed Canadian commercial paper conduit facility | $ | 98,310 | $ | 98,310 | $ | 116,678 | $ | 116,678 | $ | 127,500 | $ | 127,500 | |||||||||||||||||||||||
Asset-backed securitization debt | $ | 1,967,893 | $ | 1,952,368 | $ | 1,817,892 | $ | 1,791,956 | $ | 2,123,715 | $ | 2,096,355 | |||||||||||||||||||||||
Medium-term notes | $ | 3,583,411 | $ | 3,444,664 | $ | 5,118,928 | $ | 4,917,714 | $ | 4,895,006 | $ | 4,845,961 | |||||||||||||||||||||||
Senior notes | $ | 798,518 | $ | 744,494 | $ | 828,141 | $ | 743,977 | $ | 798,411 | $ | 743,806 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 26,
2021 |
September 27,
2020 |
September 26,
2021 |
September 27,
2020 |
||||||||||||||||||||
Balance, beginning of period | $ | 73,626 | $ | 83,513 | $ | 69,208 | $ | 89,793 | |||||||||||||||
Warranties issued during the period | 9,516 | 8,564 | 34,006 | 25,821 | |||||||||||||||||||
Settlements made during the period | (10,860) | (12,886) | (29,823) | (37,780) | |||||||||||||||||||
Recalls and changes to pre-existing warranty liabilities | (569) | 239 | (1,678) | 1,596 | |||||||||||||||||||
Balance, end of period | $ | 71,713 | $ | 79,430 | $ | 71,713 | $ | 79,430 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 26,
2021 |
September 27,
2020 |
September 26,
2021 |
September 27,
2020 |
||||||||||||||||||||
Pension and SERPA Benefits: | |||||||||||||||||||||||
Service cost | $ | 6,348 | $ | 6,806 | $ | 19,044 | $ | 20,418 | |||||||||||||||
Interest cost | 15,472 | 19,112 | 46,412 | 57,335 | |||||||||||||||||||
Expected return on plan assets | (32,720) | (33,764) | (98,160) | (101,292) | |||||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service credit | (312) | (272) | (936) | (816) | |||||||||||||||||||
Net loss | 18,386 | 16,372 | 55,158 | 49,116 | |||||||||||||||||||
Settlement loss | — | — | 816 | — | |||||||||||||||||||
Net periodic benefit cost | $ | 7,174 | $ | 8,254 | $ | 22,334 | $ | 24,761 | |||||||||||||||
Postretirement Healthcare Benefits: | |||||||||||||||||||||||
Service cost | $ | 1,288 | $ | 1,202 | $ | 3,864 | $ | 3,605 | |||||||||||||||
Interest cost | 1,626 | 2,336 | 4,878 | 7,008 | |||||||||||||||||||
Expected return on plan assets | (3,495) | (3,467) | (10,485) | (10,401) | |||||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service credit | (581) | (595) | (1,743) | (1,785) | |||||||||||||||||||
Net loss | 264 | 123 | 792 | 369 | |||||||||||||||||||
Net periodic benefit cost | $ | (898) | $ | (401) | $ | (2,694) | $ | (1,204) |
Three months ended September 26, 2021 | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension and postretirement benefit plans | Total | ||||||||||||||||||||||||||
Balance, beginning of period | $ | (23,512) | $ | (29,088) | $ | (402,537) | $ | (455,137) | |||||||||||||||||||||
Other comprehensive loss, before reclassifications | (18,296) | (31,698) | — | (49,994) | |||||||||||||||||||||||||
Income tax benefit | 460 | 6,928 | — | 7,388 | |||||||||||||||||||||||||
(17,836) | (24,770) | — | (42,606) | ||||||||||||||||||||||||||
Reclassifications: | |||||||||||||||||||||||||||||
Net losses on derivative financial instruments | — | 37,166 | — | 37,166 | |||||||||||||||||||||||||
Prior service credits(a)
|
— | — | (893) | (893) | |||||||||||||||||||||||||
Actuarial losses(a)
|
— | — | 18,650 | 18,650 | |||||||||||||||||||||||||
Reclassifications before tax | — | 37,166 | 17,757 | 54,923 | |||||||||||||||||||||||||
Income tax expense | — | (8,126) | (4,169) | (12,295) | |||||||||||||||||||||||||
— | 29,040 | 13,588 | 42,628 | ||||||||||||||||||||||||||
Other comprehensive (loss) income | (17,836) | 4,270 | 13,588 | 22 | |||||||||||||||||||||||||
Balance, end of period | $ | (41,348) | $ | (24,818) | $ | (388,949) | $ | (455,115) | |||||||||||||||||||||
Three months ended September 27, 2020 | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension and postretirement benefit plans | Total | ||||||||||||||||||||||||||
Balance, beginning of period | $ | (53,825) | $ | (40,740) | $ | (457,633) | $ | (552,198) | |||||||||||||||||||||
Other comprehensive income, before reclassifications | 13,331 | 55,732 | — | 69,063 | |||||||||||||||||||||||||
Income tax expense | (594) | (12,299) | — | (12,893) | |||||||||||||||||||||||||
12,737 | 43,433 | — | 56,170 | ||||||||||||||||||||||||||
Reclassifications: | |||||||||||||||||||||||||||||
Net gains on derivative financial instruments | — | (58,585) | — | (58,585) | |||||||||||||||||||||||||
Prior service credits(a)
|
— | — | (867) | (867) | |||||||||||||||||||||||||
Actuarial losses(a)
|
— | — | 16,495 | 16,495 | |||||||||||||||||||||||||
Reclassifications before tax | — | (58,585) | 15,628 | (42,957) | |||||||||||||||||||||||||
Income tax benefit (expense) | — | 13,051 | (3,669) | 9,382 | |||||||||||||||||||||||||
— | (45,534) | 11,959 | (33,575) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | 12,737 | (2,101) | 11,959 | 22,595 | |||||||||||||||||||||||||
Balance, end of period | $ | (41,088) | $ | (42,841) | $ | (445,674) | $ | (529,603) |
Nine months ended September 26, 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, before reclassifications | (33,648) | (68,861) | — | (102,509) | |||||||||||||||||||||||||
Income tax (expense) benefit | (111) | 15,026 | — | 14,915 | |||||||||||||||||||||||||
(33,759) | (53,835) | — | (87,594) | ||||||||||||||||||||||||||
Reclassifications: | |||||||||||||||||||||||||||||
Net losses on derivative financial instruments | — | 96,854 | — | 96,854 | |||||||||||||||||||||||||
Prior service credits(a)
|
— | — | (2,679) | (2,679) | |||||||||||||||||||||||||
Actuarial losses(a)
|
— | — | 55,950 | 55,950 | |||||||||||||||||||||||||
Reclassifications before tax | — | 96,854 | 53,271 | 150,125 | |||||||||||||||||||||||||
Income tax expense | — | (21,721) | (12,508) | (34,229) | |||||||||||||||||||||||||
— | 75,133 | 40,763 | 115,896 | ||||||||||||||||||||||||||
Other comprehensive (loss) income | (33,759) | 21,298 | 40,763 | 28,302 | |||||||||||||||||||||||||
Balance, end of period | $ | (41,348) | $ | (24,818) | $ | (388,949) | $ | (455,115) |
Nine months ended September 27, 2020 | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension and postretirement benefit plans | Total | ||||||||||||||||||||||||||
Balance, beginning of period | $ | (40,813) | $ | (14,586) | $ | (481,550) | $ | (536,949) | |||||||||||||||||||||
Other comprehensive (loss) income, before reclassifications | (434) | 47,889 | — | 47,455 | |||||||||||||||||||||||||
Income tax benefit (expense) | 159 | (10,718) | — | (10,559) | |||||||||||||||||||||||||
(275) | 37,171 | — | 36,896 | ||||||||||||||||||||||||||
Reclassifications: | |||||||||||||||||||||||||||||
Net gains on derivative financial instruments | — | (84,295) | — | (84,295) | |||||||||||||||||||||||||
Prior service credits(a)
|
— | — | (2,601) | (2,601) | |||||||||||||||||||||||||
Actuarial losses(a)
|
— | — | 49,485 | 49,485 | |||||||||||||||||||||||||
Reclassifications before tax | — | (84,295) | 46,884 | (37,411) | |||||||||||||||||||||||||
Income tax benefit (expense) | — | 18,869 | (11,008) | 7,861 | |||||||||||||||||||||||||
— | (65,426) | 35,876 | (29,550) | ||||||||||||||||||||||||||
Other comprehensive (loss) income | (275) | (28,255) | 35,876 | 7,346 | |||||||||||||||||||||||||
Balance, end of period | $ | (41,088) | $ | (42,841) | $ | (445,674) | $ | (529,603) |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 26,
2021 |
September 27,
2020 |
September 26,
2021 |
September 27,
2020 |
||||||||||||||||||||
Motorcycles and Related Products: | |||||||||||||||||||||||
Motorcycles revenue | $ | 1,160,618 | $ | 964,029 | $ | 3,724,225 | $ | 2,733,091 | |||||||||||||||
Gross profit | 310,425 | 287,233 | 1,137,961 | 713,781 | |||||||||||||||||||
Selling, administrative and engineering expense | 212,243 | 196,912 | 626,211 | 618,912 | |||||||||||||||||||
Restructuring expense | 517 | 43,581 | 731 | 84,586 | |||||||||||||||||||
Operating income | 97,665 | 46,740 | 511,019 | 10,283 | |||||||||||||||||||
Financial Services: | |||||||||||||||||||||||
Financial Services revenue | 204,692 | 201,655 | 595,650 | 596,064 | |||||||||||||||||||
Financial Services expense | 98,047 | 110,177 | 275,487 | 475,771 | |||||||||||||||||||
Restructuring expense | 98 | 334 | 436 | 1,278 | |||||||||||||||||||
Operating income | 106,547 | 91,144 | 319,727 | 119,015 | |||||||||||||||||||
Operating income | $ | 204,212 | $ | 137,884 | $ | 830,746 | $ | 129,298 |
Three months ended September 26, 2021 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Motorcycles and Related Products | $ | 1,167,432 | $ | — | $ | (6,814) | $ | 1,160,618 | |||||||||||||||
Financial Services | — | 202,080 | 2,612 | 204,692 | |||||||||||||||||||
1,167,432 | 202,080 | (4,202) | 1,365,310 | ||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Motorcycles and Related Products cost of goods sold | 850,193 | — | — | 850,193 | |||||||||||||||||||
Financial Services interest expense | — | 44,770 | — | 44,770 | |||||||||||||||||||
Financial Services provision for credit losses | — | 11,208 | — | 11,208 | |||||||||||||||||||
Selling, administrative and engineering expense | 216,030 | 42,686 | (4,404) | 254,312 | |||||||||||||||||||
Restructuring expense | 517 | 98 | — | 615 | |||||||||||||||||||
1,066,740 | 98,762 | (4,404) | 1,161,098 | ||||||||||||||||||||
Operating income | 100,692 | 103,318 | 202 | 204,212 | |||||||||||||||||||
Other income, net | 858 | — | — | 858 | |||||||||||||||||||
Investment income | 120,198 | — | (120,000) | 198 | |||||||||||||||||||
Interest expense | 7,779 | — | — | 7,779 | |||||||||||||||||||
Income before income taxes | 213,969 | 103,318 | (119,798) | 197,489 | |||||||||||||||||||
Provision for income taxes | 7,408 | 27,108 | — | 34,516 | |||||||||||||||||||
Net income | $ | 206,561 | $ | 76,210 | $ | (119,798) | $ | 162,973 | |||||||||||||||
Nine months ended September 26, 2021 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Motorcycles and Related Products | $ | 3,742,869 | $ | — | $ | (18,644) | $ | 3,724,225 | |||||||||||||||
Financial Services | — | 590,468 | 5,182 | 595,650 | |||||||||||||||||||
3,742,869 | 590,468 | (13,462) | 4,319,875 | ||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Motorcycles and Related Products cost of goods sold | 2,586,264 | — | — | 2,586,264 | |||||||||||||||||||
Financial Services interest expense | — | 149,098 | — | 149,098 | |||||||||||||||||||
Financial Services provision for credit losses | — | 4,935 | — | 4,935 | |||||||||||||||||||
Selling, administrative and engineering expense | 635,902 | 125,053 | (13,290) | 747,665 | |||||||||||||||||||
Restructuring expense | 731 | 436 | — | 1,167 | |||||||||||||||||||
3,222,897 | 279,522 | (13,290) | 3,489,129 | ||||||||||||||||||||
Operating income | 519,972 | 310,946 | (172) | 830,746 | |||||||||||||||||||
Other income, net | 1,825 | — | — | 1,825 | |||||||||||||||||||
Investment income | 244,331 | — | (240,000) | 4,331 | |||||||||||||||||||
Interest expense | 23,209 | — | 23,209 | ||||||||||||||||||||
Income before income taxes | 742,919 | 310,946 | (240,172) | 813,693 | |||||||||||||||||||
Provision for income taxes | 112,974 | 72,262 | — | 185,236 | |||||||||||||||||||
Net income | $ | 629,945 | $ | 238,684 | $ | (240,172) | $ | 628,457 |
September 26, 2021 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,115,014 | $ | 946,289 | $ | — | $ | 2,061,303 | |||||||||||||||
Accounts receivable, net | 590,806 | — | (308,179) | 282,627 | |||||||||||||||||||
Finance receivables, net | — | 1,540,822 | — | 1,540,822 | |||||||||||||||||||
Inventories, net | 475,314 | — | — | 475,314 | |||||||||||||||||||
Restricted cash | — | 153,873 | — | 153,873 | |||||||||||||||||||
Other current assets | 114,221 | 94,868 | (14,608) | 194,481 | |||||||||||||||||||
2,295,355 | 2,735,852 | (322,787) | 4,708,420 | ||||||||||||||||||||
Finance receivables, net | — | 5,322,436 | — | 5,322,436 | |||||||||||||||||||
Property, plant and equipment, net | 642,253 | 29,583 | — | 671,836 | |||||||||||||||||||
Pension and postretirement assets | 132,958 | — | — | 132,958 | |||||||||||||||||||
Goodwill | 63,841 | — | — | 63,841 | |||||||||||||||||||
Deferred income taxes | 43,097 | 86,011 | (1,049) | 128,059 | |||||||||||||||||||
Lease assets | 40,163 | 7,344 | — | 47,507 | |||||||||||||||||||
Other long-term assets | 191,126 | 37,370 | (103,749) | 124,747 | |||||||||||||||||||
$ | 3,408,793 | $ | 8,218,596 | $ | (427,585) | $ | 11,199,804 | ||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable | $ | 361,057 | $ | 329,338 | $ | (308,179) | $ | 382,216 | |||||||||||||||
Accrued liabilities | 489,988 | 123,642 | (13,778) | 599,852 | |||||||||||||||||||
Short-term deposits, net | — | 92,626 | — | 92,626 | |||||||||||||||||||
Short-term debt | — | 749,620 | — | 749,620 | |||||||||||||||||||
Current portion of long-term debt, net | — | 1,605,798 | — | 1,605,798 | |||||||||||||||||||
851,045 | 2,901,024 | (321,957) | 3,430,112 | ||||||||||||||||||||
Long-term deposits, net | — | 197,644 | — | 197,644 | |||||||||||||||||||
Long-term debt, net | 744,494 | 4,131,798 | — | 4,876,292 | |||||||||||||||||||
Lease liabilities | 19,457 | 6,560 | — | 26,017 | |||||||||||||||||||
Pension and postretirement liabilities | 103,144 | — | — | 103,144 | |||||||||||||||||||
Deferred income taxes | 7,166 | 1,419 | — | 8,585 | |||||||||||||||||||
Other long-term liabilities | 173,178 | 48,586 | 2,352 | 224,116 | |||||||||||||||||||
Commitments and contingencies (Note 16) | |||||||||||||||||||||||
Shareholders’ equity | 1,510,309 | 931,565 | (107,980) | 2,333,894 | |||||||||||||||||||
$ | 3,408,793 | $ | 8,218,596 | $ | (427,585) | $ | 11,199,804 |
Nine months ended September 26, 2021 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 629,945 | $ | 238,684 | $ | (240,172) | $ | 628,457 | |||||||||||||||
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 115,779 | 6,704 | — | 122,483 | |||||||||||||||||||
Amortization of deferred loan origination costs | — | 63,265 | — | 63,265 | |||||||||||||||||||
Amortization of financing origination fees | 517 | 9,909 | — | 10,426 | |||||||||||||||||||
Provision for long-term employee benefits | 19,640 | — | — | 19,640 | |||||||||||||||||||
Employee benefit plan contributions and payments | (14,677) | — | — | (14,677) | |||||||||||||||||||
Stock compensation expense | 31,089 | 2,943 | — | 34,032 | |||||||||||||||||||
Net change in wholesale finance receivables related to sales | — | — | (22,031) | (22,031) | |||||||||||||||||||
Provision for credit losses | — | 4,935 | — | 4,935 | |||||||||||||||||||
Deferred income taxes | 4,710 | 6,028 | (112) | 10,626 | |||||||||||||||||||
Other, net | 3,320 | (1,397) | 171 | 2,094 | |||||||||||||||||||
Changes in current assets and liabilities: | |||||||||||||||||||||||
Accounts receivable, net | (379,821) | — | 231,151 | (148,670) | |||||||||||||||||||
Finance receivables – accrued interest and other
|
— | 11,088 | — | 11,088 | |||||||||||||||||||
Inventories, net | 31,874 | — | — | 31,874 | |||||||||||||||||||
Accounts payable and accrued liabilities | 162,088 | 247,740 | (241,522) | 168,306 | |||||||||||||||||||
Other current assets | (11,127) | 3,952 | 10,878 | 3,703 | |||||||||||||||||||
(36,608) | 355,167 | (21,465) | 297,094 | ||||||||||||||||||||
Net cash provided by operating activities | 593,337 | 593,851 | (261,637) | 925,551 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | (59,128) | (2,348) | — | (61,476) | |||||||||||||||||||
Origination of finance receivables | — | (6,157,658) | 2,712,705 | (3,444,953) | |||||||||||||||||||
Collections on finance receivables | — | 5,659,465 | (2,691,068) | 2,968,397 | |||||||||||||||||||
Other investing activities | 2,485 | — | — | 2,485 | |||||||||||||||||||
Net cash used by investing activities | (56,643) | (500,541) | 21,637 | (535,547) | |||||||||||||||||||
Nine months ended September 26, 2021 | |||||||||||||||||||||||
HDMC Entities | HDFS Entities | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Repayments of medium-term notes | — | (1,400,000) | — | (1,400,000) | |||||||||||||||||||
Proceeds from securitization debt | — | 1,169,910 | — | 1,169,910 | |||||||||||||||||||
Repayments of securitization debt | — | (1,013,820) | — | (1,013,820) | |||||||||||||||||||
Borrowings of asset-backed commercial paper | — | 27,406 | — | 27,406 | |||||||||||||||||||
Repayments of asset-backed commercial paper | — | (206,671) | — | (206,671) | |||||||||||||||||||
Net decrease in unsecured commercial paper | — | (261,978) | — | (261,978) | |||||||||||||||||||
Net increase in deposits | — | 210,144 | — | 210,144 | |||||||||||||||||||
Dividends paid | (69,316) | (240,000) | 240,000 | (69,316) | |||||||||||||||||||
Repurchase of common stock | (11,545) | — | — | (11,545) | |||||||||||||||||||
Issuance of common stock under share-based plans | 4,324 | — | — | 4,324 | |||||||||||||||||||
Net cash used by financing activities | (76,537) | (1,715,009) | 240,000 | (1,551,546) | |||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (11,304) | 254 | — | (11,050) | |||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 448,853 | $ | (1,621,445) | $ | — | $ | (1,172,592) | |||||||||||||||
Cash, cash equivalents and restricted cash: | |||||||||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | $ | 666,161 | $ | 2,743,007 | $ | — | $ | 3,409,168 | |||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 448,853 | (1,621,445) | — | (1,172,592) | |||||||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 1,115,014 | $ | 1,121,562 | $ | — | $ | 2,236,576 |
Three months ended | |||||||||||||||||||||||
(in thousands, except earnings per share) |
September 26,
2021 |
September 27,
2020 |
Increase
(Decrease) |
||||||||||||||||||||
Operating income from Motorcycles and Related Products | $ | 97,665 | $ | 46,740 | $ | 50,925 | |||||||||||||||||
Operating income from Financial Services | 106,547 | 91,144 | 15,403 | ||||||||||||||||||||
Operating income | 204,212 | 137,884 | 66,328 | ||||||||||||||||||||
Other income, net | 858 | 155 | 703 | ||||||||||||||||||||
Investment income | 198 | 2,672 | (2,474) | ||||||||||||||||||||
Interest expense | 7,779 | 7,783 | (4) | ||||||||||||||||||||
Income before income taxes | 197,489 | 132,928 | 64,561 | ||||||||||||||||||||
Provision for income taxes | 34,516 | 12,710 | 21,806 | ||||||||||||||||||||
Net income | $ | 162,973 | $ | 120,218 | $ | 42,755 | |||||||||||||||||
Diluted earnings per share | $ | 1.05 | $ | 0.78 | $ | 0.27 |
Three months ended | |||||||||||||||||||||||||||||||||||
September 26, 2021 | September 27, 2020 | Unit | Unit | ||||||||||||||||||||||||||||||||
Units | Mix % | Units | Mix % | Increase | % Change | ||||||||||||||||||||||||||||||
U.S. motorcycle shipments | 27,919 | 58.2 | % | 25,284 | 58.8 | % | 2,635 | 10.4 | % | ||||||||||||||||||||||||||
Worldwide motorcycle shipments: | |||||||||||||||||||||||||||||||||||
Grand American Touring motorcycles(a)
|
21,988 | 45.9 | % | 17,230 | 40.1 | % | 4,758 | 27.6 | % | ||||||||||||||||||||||||||
Cruiser motorcycles(b)
|
16,531 | 34.5 | % | 14,775 | 34.4 | % | 1,756 | 11.9 | |||||||||||||||||||||||||||
Adventure Touring motorcycles | 4,507 | 9.4 | % | — | — | % | 4,507 | 100.0 | |||||||||||||||||||||||||||
Sportster® / Street motorcycles
|
4,915 | 10.2 | % | 10,978 | 25.5 | % | (6,063) | (55.2) | |||||||||||||||||||||||||||
47,941 | 100.0 | % | 42,983 | 100.0 | % | 4,958 | 11.5 | % |
Three months ended | |||||||||||||||||||||||
September 26, 2021 | September 27, 2020 |
Increase
(Decrease) |
%
Change |
||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Motorcycles
|
$ | 885,626 | $ | 684,344 | $ | 201,282 | 29.4 | % | |||||||||||||||
Parts & Accessories
|
204,506 | 209,808 | (5,302) | (2.5) | |||||||||||||||||||
General Merchandise
|
49,424 | 49,356 | 68 | 0.1 | |||||||||||||||||||
Licensing
|
8,481 | 8,894 | (413) | (4.6) | |||||||||||||||||||
Other
|
12,581 | 11,627 | 954 | 8.2 | |||||||||||||||||||
1,160,618 | 964,029 | 196,589 | 20.4 | ||||||||||||||||||||
Cost of goods sold | 850,193 | 676,796 | 173,397 | 25.6 | |||||||||||||||||||
Gross profit | 310,425 | 287,233 | 23,192 | 8.1 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling & administrative expense
|
172,411 | 149,780 | 22,631 | 15.1 | |||||||||||||||||||
Engineering expense
|
39,832 | 47,132 | (7,300) | (15.5) | |||||||||||||||||||
Restructuring expense
|
517 | 43,581 | (43,064) | (98.8) | |||||||||||||||||||
212,760 | 240,493 | (27,733) | (11.5) | ||||||||||||||||||||
Operating income | $ | 97,665 | $ | 46,740 | $ | 50,925 | 109.0 | % | |||||||||||||||
Operating margin | 8.4 | % | 4.8 | % | 3.6 | pts. |
Net
Revenue |
Cost of
Goods Sold |
Gross
Profit |
|||||||||||||||
Three months ended September 27, 2020 | $ | 964.0 | $ | 676.8 | $ | 287.2 | |||||||||||
Volume | 86.6 | 54.3 | 32.3 | ||||||||||||||
Price and sales incentives, net of related costs | 14.7 | (0.7) | 15.4 | ||||||||||||||
Foreign currency exchange rates and hedging | 9.4 | 1.8 | 7.6 | ||||||||||||||
Shipment mix | 85.9 | 41.9 | 44.0 | ||||||||||||||
Raw material prices | — | 24.6 | (24.6) | ||||||||||||||
Manufacturing and other costs | — | 51.5 | (51.5) | ||||||||||||||
196.6 | 173.4 | 23.2 | |||||||||||||||
Three months ended September 26, 2021 | $ | 1,160.6 | $ | 850.2 | $ | 310.4 |
Three months ended | |||||||||||||||||||||||
September 26, 2021 | September 27, 2020 |
(Decrease)
Increase |
%
Change |
||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Interest income | $ | 174,103 | $ | 174,464 | $ | (361) | (0.2) | % | |||||||||||||||
Other income | 30,589 | 27,191 | 3,398 | 12.5 | |||||||||||||||||||
204,692 | 201,655 | 3,037 | 1.5 | ||||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Interest expense | 44,770 | 67,533 | (22,763) | (33.7) | |||||||||||||||||||
Provision for credit losses | 11,208 | 7,835 | 3,373 | 43.1 | |||||||||||||||||||
Operating expense | 42,069 | 34,809 | 7,260 | 20.9 | |||||||||||||||||||
Restructuring expense | 98 | 334 | (236) | (70.7) | |||||||||||||||||||
98,145 | 110,511 | (12,366) | (11.2) | ||||||||||||||||||||
Operating income | $ | 106,547 | $ | 91,144 | $ | 15,403 | 16.9 | % |
Three months ended | |||||||||||
September 26,
2021 |
September 27,
2020 |
||||||||||
Balance, beginning of period | $ | 358,811 | $ | 411,015 | |||||||
Provision for credit losses | 11,208 | 7,835 | |||||||||
Charge-offs, net of recoveries | (14,185) | (10,148) | |||||||||
Balance, end of period | $ | 355,834 | $ | 408,702 |
Nine months ended | |||||||||||||||||||||||
(in thousands, except earnings per share) |
September 26,
2021 |
September 27,
2020 |
Increase (Decrease) | ||||||||||||||||||||
Operating income from Motorcycles and Related Products | $ | 511,019 | $ | 10,283 | $ | 500,736 | |||||||||||||||||
Operating income from Financial Services | 319,727 | 119,015 | 200,712 | ||||||||||||||||||||
Operating income | 830,746 | 129,298 | 701,448 | ||||||||||||||||||||
Other income, net | 1,825 | 466 | 1,359 | ||||||||||||||||||||
Investment income | 4,331 | 3,082 | 1,249 | ||||||||||||||||||||
Interest expense | 23,209 | 23,307 | (98) | ||||||||||||||||||||
Income before income taxes | 813,693 | 109,539 | 704,154 | ||||||||||||||||||||
Provision for income taxes | 185,236 | 11,843 | 173,393 | ||||||||||||||||||||
Net income | $ | 628,457 | $ | 97,696 | $ | 530,761 | |||||||||||||||||
Diluted earnings per share | $ | 4.06 | $ | 0.64 | $ | 3.42 |
Nine months ended | |||||||||||||||||||||||
September 30,
2021 |
September 30,
2020 |
Increase
(Decrease) |
% Change | ||||||||||||||||||||
United States | 107,421 | 86,376 | 21,045 | 24.4 | % | ||||||||||||||||||
Canada | 7,403 | 5,668 | 1,735 | 30.6 | |||||||||||||||||||
North America | 114,824 | 92,044 | 22,780 | 24.7 | |||||||||||||||||||
EMEA | 24,580 | 29,878 | (5,298) | (17.7) | |||||||||||||||||||
Asia Pacific | 18,263 | 20,271 | (2,008) | (9.9) | |||||||||||||||||||
Latin America | 2,620 | 4,760 | (2,140) | (45.0) | |||||||||||||||||||
160,287 | 146,953 | 13,334 | 9.1 | % |
Nine months ended | |||||||||||||||||||||||
September 30,
2021 |
September 30,
2020 |
Increase
(Decrease) |
% Change | ||||||||||||||||||||
Industry new motorcycle registrations: | |||||||||||||||||||||||
United States(b)
|
238,705 | 201,820 | 36,885 | 18.3 | % | ||||||||||||||||||
Europe(c)
|
374,387 | 350,705 | 23,682 | 6.8 | % | ||||||||||||||||||
Harley-Davidson market share data: | |||||||||||||||||||||||
United States(b)
|
44.7 | % | 42.0 | % | 2.7 | pts. | |||||||||||||||||
Europe(c)
|
5.6 | % | 7.7 | % | (2.1) | pts. |
Nine months ended | |||||||||||||||||||||||||||||||||||
September 26, 2021 | September 27, 2020 | Unit | Unit | ||||||||||||||||||||||||||||||||
Units | Mix % | Units | Mix % | Increase (Decrease) | % Change | ||||||||||||||||||||||||||||||
U.S. motorcycle shipments | 104,190 | 65.4 | % | 69,359 | 55.8 | % | 34,831 | 50.2 | % | ||||||||||||||||||||||||||
Worldwide motorcycle shipments: | |||||||||||||||||||||||||||||||||||
Grand American Touring motorcycles(a)
|
79,485 | 49.9 | % | 52,656 | 42.4 | % | 26,829 | 51.0 | % | ||||||||||||||||||||||||||
Cruiser motorcycles(b)
|
52,117 | 32.7 | % | 42,660 | 34.3 | % | 9,457 | 22.2 | |||||||||||||||||||||||||||
Adventure Touring motorcycles | 8,555 | 5.4 | % | — | — | % | 8,555 | 100.0 | |||||||||||||||||||||||||||
Sportster® / Street motorcycles
|
19,262 | 12.0 | % | 29,009 | 23.3 | % | (9,747) | (33.6) | |||||||||||||||||||||||||||
159,419 | 100.0 | % | 124,325 | 100.0 | % | 35,094 | 28.2 | % |
Nine months ended | |||||||||||||||||||||||
September 26, 2021 | September 27, 2020 |
Increase
(Decrease) |
%
Change |
||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Motorcycles
|
$ | 2,931,669 | $ | 2,030,448 | $ | 901,221 | 44.4 | % | |||||||||||||||
Parts & Accessories
|
577,035 | 513,201 | 63,834 | 12.4 | |||||||||||||||||||
General Merchandise
|
155,378 | 136,321 | 19,057 | 14.0 | |||||||||||||||||||
Licensing
|
22,865 | 21,826 | 1,039 | 4.8 | |||||||||||||||||||
Other
|
37,278 | 31,295 | 5,983 | 19.1 | |||||||||||||||||||
3,724,225 | 2,733,091 | 991,134 | 36.3 | ||||||||||||||||||||
Cost of goods sold | 2,586,264 | 2,019,310 | 566,954 | 28.1 | |||||||||||||||||||
Gross profit | 1,137,961 | 713,781 | 424,180 | 59.4 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling & administrative expense
|
506,245 | 477,286 | 28,959 | 6.1 | |||||||||||||||||||
Engineering expense
|
119,966 | 141,626 | (21,660) | (15.3) | |||||||||||||||||||
Restructuring expense
|
731 | 84,586 | (83,855) | (99.1) | |||||||||||||||||||
626,942 | 703,498 | (76,556) | (10.9) | % | |||||||||||||||||||
Operating income | $ | 511,019 | $ | 10,283 | $ | 500,736 | |||||||||||||||||
Operating margin | 13.7 | % | 0.4 | % | 13.3 | pts. |
Net
Revenue |
Cost of
Goods Sold |
Gross
Profit |
|||||||||||||||
Nine months ended September 27, 2020 | $ | 2,733.1 | $ | 2,019.3 | $ | 713.8 | |||||||||||
Volume | 662.3 | 459.7 | 202.6 | ||||||||||||||
Price and sales incentives, net of related costs | 31.8 | (7.0) | 38.8 | ||||||||||||||
Foreign currency exchange rates and hedging | 62.0 | 29.3 | 32.7 | ||||||||||||||
Shipment mix | 235.0 | 65.6 | 169.4 | ||||||||||||||
Raw material prices | — | 45.7 | (45.7) | ||||||||||||||
Manufacturing and other costs | — | (26.4) | 26.4 | ||||||||||||||
991.1 | 566.9 | 424.2 | |||||||||||||||
Nine months ended September 26, 2021 | $ | 3,724.2 | $ | 2,586.2 | $ | 1,138.0 |
Nine months ended | |||||||||||||||||||||||
September 26, 2021 | September 27, 2020 |
(Decrease)
Increase |
%
Change |
||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Interest income | $ | 501,645 | $ | 512,726 | $ | (11,081) | (2.2) | % | |||||||||||||||
Other income | 94,005 | 83,338 | 10,667 | 12.8 | |||||||||||||||||||
595,650 | 596,064 | (414) | (0.1) | ||||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Interest expense | 149,098 | 182,193 | (33,095) | (18.2) | |||||||||||||||||||
Provision for credit losses | 4,935 | 178,433 | (173,498) | (97.2) | |||||||||||||||||||
Operating expense | 121,454 | 115,145 | 6,309 | 5.5 | |||||||||||||||||||
Restructuring expense | 436 | 1,278 | (842) | (65.9) | |||||||||||||||||||
275,923 | 477,049 | (201,126) | (42.2) | ||||||||||||||||||||
Operating income | $ | 319,727 | $ | 119,015 | $ | 200,712 | 168.6 | % |
Nine months ended | |||||||||||
September 26,
2021 |
September 27,
2020 |
||||||||||
Balance, beginning of period | $ | 390,936 | $ | 198,581 | |||||||
Cumulative effect of change in accounting(a)
|
— | 100,604 | |||||||||
Provision for credit losses | 4,935 | 178,433 | |||||||||
Charge-offs, net of recoveries | (40,037) | (68,916) | |||||||||
Balance, end of period | $ | 355,834 | $ | 408,702 |
Cash and cash equivalents | $ | 2,061,303 | |||
Availability under credit and conduit facilities: | |||||
Credit facilities | 665,380 | ||||
Asset-backed U.S. commercial paper conduit facility(a)
|
657,746 | ||||
$ | 3,384,429 |
Short-Term | Long-Term | Outlook | |||||||||||||||
Moody’s | P3 | Baa3 | Stable | ||||||||||||||
Standard & Poor’s | A3 | BBB- | Stable | ||||||||||||||
Fitch | F2 | BBB+ | Negative |
Nine months ended | |||||||||||
September 26, 2021 | September 27, 2020 | ||||||||||
Net cash provided by operating activities | $ | 925,551 | $ | 1,135,068 | |||||||
Net cash used by investing activities | (535,547) | (235,054) | |||||||||
Net cash (used) provided by financing activities | (1,551,546) | 1,930,677 | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (11,050) | 6,071 | |||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | $ | (1,172,592) | $ | 2,836,762 |
September 26,
2021 |
September 27,
2020 |
||||||||||
Outstanding debt: | |||||||||||
Unsecured commercial paper | $ | 749,620 | $ | 1,077,763 | |||||||
364-day credit facility borrowings | — | 150,000 | |||||||||
Asset-backed Canadian commercial paper conduit facility | 98,310 | 127,500 | |||||||||
Asset-backed U.S. commercial paper conduit facilities | 242,254 | 467,338 | |||||||||
Asset-backed securitization debt, net | 1,952,368 | 2,096,355 | |||||||||
Medium-term notes, net | 3,444,664 | 4,845,961 | |||||||||
Senior notes, net | 744,494 | 743,806 | |||||||||
$ | 7,231,710 | $ | 9,508,723 | ||||||||
Deposits, net | $ | 290,270 | $ | 29,999 |
Principal Amount | Rate | Issue Date | Maturity Date | |||||||||||||||||
$550,000 | 4.05% | February 2019 | February 2022 | |||||||||||||||||
$400,000 | 2.55% | June 2017 | June 2022 | |||||||||||||||||
$350,000 | 3.35% | February 2018 | February 2023 | |||||||||||||||||
$756,763(a)
|
4.94% | May 2020 | May 2023 | |||||||||||||||||
$698,550(b)
|
3.14% | November 2019 | November 2024 | |||||||||||||||||
$700,000 | 3.35% | June 2020 | June 2025 |
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Transfers | Proceeds | Proceeds, net | Transfers | Proceeds | Proceeds, net | ||||||||||||||||||||||||||||||
First quarter | $ | 663.1 | $ | 600.0 | $ | 597.4 | $ | 580.2 | $ | 525.0 | $ | 522.7 | |||||||||||||||||||||||
Second quarter | — | — | — | 1,840.5 | 1,550.2 | 1,541.8 | |||||||||||||||||||||||||||||
Third quarter | 635.5 | 575.0 | 572.5 | — | — | — | |||||||||||||||||||||||||||||
$ | 1,298.6 | $ | 1,175.0 | $ | 1,169.9 | $ | 2,420.7 | $ | 2,075.2 | $ | 2,064.5 |
2021 Fiscal Month |
Total Number of
Shares Purchased |
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 |
||||||||||||||||||||||
June 28 to August 1 | 1,468 | $ | 47 | 1,468 | 18,246,721 | |||||||||||||||||||||
August 2 to August 29 | 13,811 | $ | 40 | 13,811 | 18,246,721 | |||||||||||||||||||||
August 30 to September 26 | 498 | $ | 39 | 498 | 18,246,721 | |||||||||||||||||||||
15,777 | $ | 40 | 15,777 |
Exhibit No. | Description | |||||||
Amended and Restated Harley-Davidson, Inc. Director Stock Plan as amended effective August 31, 2021 | ||||||||
Amended and Restated Harley-Davidson, Inc. Employee Incentive Plan as amended effective January 1, 2021 | ||||||||
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 - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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 | |||||||
104 | Cover Page Interactive Data File - formatted in Inline XBRL and contained in Exhibit 101 |
HARLEY-DAVIDSON, INC. | |||||
Date: November 4, 2021 | /s/ Gina Goetter | ||||
Gina Goetter | |||||
Chief Financial Officer | |||||
(Principal financial officer) |
Date: November 4, 2021 | /s/ Mark R. Kornetzke | ||||
Mark R. Kornetzke | |||||
Chief Accounting Officer | |||||
(Principal accounting officer) |
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Date: November 4, 2021 | /s/ Jochen Zeitz | ||||
Jochen Zeitz | |||||
President and Chief Executive Officer |
Date: November 4, 2021 | /s/ Gina Goetter | ||||
Gina Goetter | |||||
Chief Financial Officer |
Date: November 4, 2021 | /s/ Jochen Zeitz | ||||
Jochen Zeitz | |||||
President and Chief Executive Officer | |||||
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/s/ Gina Goetter | ||||
Gina Goetter | |||||
Chief Financial Officer |