HARLEY-DAVIDSON INC

For the period ended Jun 30, 2024. Filed Aug 7, 2024.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2024 · Filed Aug 7, 2024

HOG$32.66+0.2%Stored close · as of Nov 6, 2026

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Contents

17. Supplemental Consolidating Data

Supplemental Consolidating Data

The supplemental consolidating data includes separate legal entity data for the Company's financial services entities, including Harley-Davidson Financial Services, Inc. and its subsidiaries (Financial Services Entities), and all other Harley-Davidson, Inc. entities (Non-Financial Services Entities). This information is presented to highlight the separate financial statement impacts of the Company's Financial Services Entities and its Non-Financial Services Entities. The income statement information presented below differs from reportable segment income statement information due to the allocation of legal entity consolidating adjustments to income for reportable segments. Supplemental consolidating data is as follows (in thousands):

	Three months ended June 30, 2024
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
Revenue:
Motorcycles and related products	$1,357,953	$—	$(2,599)	$1,355,354
Financial services	—	264,220	(681)	263,539
	1,357,953	264,220	(3,280)	1,618,893
Costs and expenses:
Motorcycles and related products cost of goods sold	924,012	—	—	924,012
Financial services interest expense	—	93,741	—	93,741
Financial services provision for credit losses	—	56,030	—	56,030
Selling, administrative and engineering expense	262,188	45,004	(3,184)	304,008
	1,186,200	194,775	(3,184)	1,377,791
Operating income	171,753	69,445	(96)	241,102
Other income, net	15,879	—	—	15,879
Investment income	14,811	—	—	14,811
Interest expense	7,680	—	—	7,680
Income before income taxes	194,763	69,445	(96)	264,112
Income tax provision	32,032	16,674	—	48,706
Net income	162,731	52,771	(96)	215,406
Less: (income) loss attributable to noncontrolling interests	2,863	$—	$—	$2,863
Net income attributable to Harley-Davidson, Inc.	$165,594	$52,771	$(96)	$218,269
	Six months ended June 30, 2024
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
Revenue:
Motorcycles and related products	$2,840,712	$—	$(4,548)	$2,836,164
Financial services	—	513,459	(1,123)	512,336
	2,840,712	513,459	(5,671)	3,348,500
Costs and expenses:
Motorcycles and related products cost of goods sold	1,947,693	—	—	1,947,693
Financial services interest expense	—	182,480	—	182,480
Financial services provision for credit losses	—	117,040	—	117,040
Selling, administrative and engineering expense	510,661	92,126	(5,682)	597,105
	2,458,354	391,646	(5,682)	2,844,318
Operating income	382,358	121,813	11	504,182
Other income, net	36,443	—	—	36,443
Investment income	29,215	—	—	29,215
Interest expense	15,359	—	—	15,359
Income before income taxes	432,657	121,813	11	554,481
Provision for income taxes	77,562	29,280	—	106,842
Net income	355,095	92,533	11	447,639
Less: (income) loss attributable to noncontrolling interests	5,571	—	—	5,571
Net income attributable to Harley-Davidson, Inc.	$360,666	$92,533	$11	$453,210

	Three months ended June 30, 2023
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
Revenue:
Motorcycles and Related Products	$1,207,314	$—	$(2,152)	$1,205,162
Financial Services	—	241,090	(729)	240,361
	1,207,314	241,090	(2,881)	1,445,523
Costs and expenses:
Motorcycles and Related Products cost of goods sold	790,628	—	—	790,628
Financial Services interest expense	—	86,005	—	86,005
Financial Services provision for credit losses	—	57,278	—	57,278
Selling, administrative and engineering expense	252,825	40,245	(2,796)	290,274
	1,043,453	183,528	(2,796)	1,224,185
Operating income	163,861	57,562	(85)	221,338
Other income, net	7,226	—	—	7,226
Investment income	11,151	—	—	11,151
Interest expense	7,696	—	—	7,696
Income before income taxes	174,542	57,562	(85)	232,019
Provision for income taxes	43,670	14,519	—	58,189
Net income	130,872	43,043	(85)	173,830
Less: (income) loss attributable to noncontrolling interests	4,209	—	—	4,209
Net income attributable to Harley-Davidson, Inc.	$135,081	$43,043	$(85)	$178,039
	Six months ended June 30, 2023
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
Revenue:
Motorcycles and related products	$2,775,023	$—	$(4,270)	$2,770,753
Financial services	—	464,613	(1,157)	463,456
	2,775,023	464,613	(5,427)	3,234,209
Costs and expenses:
Motorcycles and related products cost of goods sold	1,797,929	—	—	1,797,929
Financial services interest expense	—	159,554	—	159,554
Financial services provision for credit losses	—	109,642	—	109,642
Selling, administrative and engineering expense	500,520	81,125	(5,508)	576,137
	2,298,449	350,321	(5,508)	2,643,262
Operating income	476,574	114,292	81	590,947
Other income, net	27,322	—	—	27,322
Investment income	21,176	—	—	21,176
Interest expense	15,416	—	—	15,416
Income before income taxes	509,656	114,292	81	624,029
Provision for income taxes	122,398	25,972	—	148,370
Net income	387,258	88,320	81	475,659
Less: (income) loss attributable to noncontrolling interests	6,470	—	—	6,470
Net income attributable to Harley-Davidson, Inc.	$393,728	$88,320	$81	$482,129

	June 30, 2024
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$1,276,973	$572,186	$—	$1,849,159
Accounts receivable, net	636,846	46	(315,607)	321,285
Finance receivables, net	—	2,472,784	—	2,472,784
Inventories, net	668,924	—	—	668,924
Restricted cash	—	137,486	—	137,486
Other current assets	143,012	59,086	(14,096)	188,002
	2,725,755	3,241,588	(329,703)	5,637,640
Finance receivables, net	—	5,545,780	—	5,545,780
Property, plant and equipment, net	703,548	16,875	—	720,423
Pension and postretirement assets	438,805	—	—	438,805
Goodwill	62,152	—	—	62,152
Deferred income taxes	72,899	86,473	(792)	158,580
Lease assets	58,078	3,838	—	61,916
Other long-term assets	224,645	25,941	(115,640)	134,946
	$4,285,882	$8,920,495	$(446,135)	$12,760,242
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$351,209	$341,465	$(315,607)	$377,067
Accrued liabilities	502,575	172,019	(13,427)	661,167
Short-term deposits, net	—	206,972	—	206,972
Short-term debt	—	497,792	—	497,792
Current portion of long-term debt, net	—	2,021,344	—	2,021,344
	853,784	3,239,592	(329,034)	3,764,342
Long-term deposits, net	—	297,121	—	297,121
Long-term debt, net	746,438	4,203,433	—	4,949,871
Lease liabilities	41,991	3,364	—	45,355
Pension and postretirement liabilities	58,886	—	—	58,886
Deferred income taxes	30,266	3,231	—	33,497
Other long-term liabilities	143,946	32,034	1,874	177,854
Commitments and contingencies (Note 14)
Shareholders’ equity	2,410,571	1,141,720	(118,975)	3,433,316
	$4,285,882	$8,920,495	$(446,135)	$12,760,242

	June 30, 2023
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$1,056,404	$465,536	$—	$1,521,940
Accounts receivable, net	514,653	—	(185,166)	329,487
Finance receivables, net	—	1,979,645	—	1,979,645
Inventories, net	846,033	—	—	846,033
Restricted cash	—	135,618	—	135,618
Other current assets	151,505	55,556	(5,359)	201,702
	2,568,595	2,636,355	(190,525)	5,014,425
Finance receivables, net	—	5,530,221	—	5,530,221
Property, plant and equipment, net	666,908	21,208	—	688,116
Pension and postretirement assets	353,004	—	—	353,004
Goodwill	62,451	—	—	62,451
Deferred income taxes	60,412	85,907	(951)	145,368
Lease assets	67,878	5,348	—	73,226
Other long-term assets	226,149	34,790	(112,189)	148,750
	$4,005,397	$8,313,829	$(303,665)	$12,015,561
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$329,394	$215,197	$(185,166)	$359,425
Accrued liabilities	480,352	115,130	(4,797)	590,685
Short-term deposits, net	—	216,293	—	216,293
Short-term debt	—	695,356	—	695,356
Current portion of long-term debt, net	—	604,700	—	604,700
	809,746	1,846,676	(189,963)	2,466,459
Long-term deposits, net	—	223,618	—	223,618
Long-term debt, net	745,722	5,019,524	—	5,765,246
Lease liabilities	51,013	5,097	—	56,110
Pension and postretirement liabilities	66,801	—	—	66,801
Deferred income taxes	28,390	3,129	—	31,519
Other long-term liabilities	154,029	59,971	1,952	215,952
Commitments and contingencies (Note 14)
Shareholders’ equity	2,149,696	1,155,814	(115,654)	3,189,856
	$4,005,397	$8,313,829	$(303,665)	$12,015,561

	Six months ended June 30, 2024
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
Cash flows from operating activities:
Net income	$355,095	$92,533	$11	$447,639
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	75,768	4,608	—	80,376
Amortization of deferred loan origination costs	—	36,466	—	36,466
Amortization of financing origination fees	360	6,433	—	6,793
Provision for long-term employee benefits	(26,143)	—	—	(26,143)
Employee benefit plan contributions and payments	(2,593)	—	—	(2,593)
Stock compensation expense	27,896	1,099	—	28,995
Net change in wholesale finance receivables related to sales	—	—	(388,030)	(388,030)
Provision for credit losses	—	117,040	—	117,040
Deferred income taxes	2,145	(1,445)	(554)	146
Other, net	13,339	1,637	(11)	14,965
Changes in current assets and liabilities:
Accounts receivable, net	(233,698)	—	167,771	(65,927)
Finance receivables – accrued interest and other	—	2,759	—	2,759
Inventories, net	235,539	—	—	235,539
Accounts payable and accrued liabilities	48,395	171,199	(155,428)	64,166
Other current assets	9,347	9,589	6,515	25,451
	150,355	349,385	(369,737)	130,003
Net cash provided by operating activities	505,450	441,918	(369,726)	577,642
Cash flows from investing activities:
Capital expenditures	(87,050)	(785)	—	(87,835)
Origination of finance receivables	—	(4,210,218)	2,114,266	(2,095,952)
Collections on finance receivables	—	3,531,504	(1,744,540)	1,786,964
Other investing activities	(1,206)	—	1,000	(206)
Net cash used by investing activities	(88,256)	(679,499)	370,726	(397,029)

	Six months ended June 30, 2024
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—	495,856	—	495,856
Proceeds from securitization debt	—	547,618	—	547,618
Repayments of securitization debt	—	(506,489)	—	(506,489)
Borrowings of asset-backed commercial paper	—	351,429	—	351,429
Repayments of asset-backed commercial paper	—	(125,654)	—	(125,654)
Net decrease in unsecured commercial paper	—	(379,743)	—	(379,743)
Net increase in deposits	—	56,007	—	56,007
Dividends paid	(47,359)	—	—	(47,359)
Repurchase of common stock	(209,675)	—	—	(209,675)
Other financing activities	8	1,000	(1,000)	8
Net cash (used) provided by financing activities	(257,026)	440,024	(1,000)	181,998
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(10,595)	(226)	—	(10,821)
Net increase in cash, cash equivalents and restricted cash	$149,573	$202,217	$—	$351,790
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period	$1,127,400	$521,411	$—	$1,648,811
Net increase in cash, cash equivalents and restricted cash	149,573	202,217	—	351,790
Cash, cash equivalents and restricted cash, end of period	$1,276,973	$723,628	$—	$2,000,601

	Six months ended June 30, 2023
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
Cash flows from operating activities:
Net income	$387,258	$88,320	$81	$475,659
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	67,720	4,505	—	72,225
Amortization of deferred loan origination costs	—	44,393	—	44,393
Amortization of financing origination fees	354	6,154	—	6,508
Provision for long-term employee benefits	(33,656)	—	—	(33,656)
Employee benefit plan contributions and payments	(2,882)	—	—	(2,882)
Stock compensation expense	42,174	2,239	—	44,413
Net change in wholesale finance receivables related to sales	—	—	(267,942)	(267,942)
Provision for credit losses	—	109,642	—	109,642
Deferred income taxes	233	(4,413)	(71)	(4,251)
Other, net	(25,290)	(5,788)	(82)	(31,160)
Changes in current assets and liabilities:
Accounts receivable, net	(147,730)	—	68,199	(79,531)
Finance receivables – accrued interest and other	—	3,189	—	3,189
Inventories, net	94,636	—	—	94,636
Accounts payable and accrued liabilities	(30,340)	80,563	(66,270)	(16,047)
Other current assets	(12,329)	6,836	817	(4,676)
	(47,110)	247,320	(265,349)	(65,139)
Net cash provided by operating activities	340,148	335,640	(265,268)	410,520
Cash flows from investing activities:
Capital expenditures	(85,401)	(1,125)	—	(86,526)
Origination of finance receivables	—	(4,076,675)	1,947,692	(2,128,983)
Collections on finance receivables	—	3,551,887	(1,682,424)	1,869,463
Other investing activities	(1,650)	—	2,500	850
Net cash used by investing activities	(87,051)	(525,913)	267,768	(345,196)

	Six months ended June 30, 2023
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
Cash flows from financing activities:
Proceeds from issuance of medium-term notes	—	1,446,304	—	1,446,304
Repayments of medium-term notes	—	(1,056,680)	—	(1,056,680)
Proceeds from securitization debt	—	547,706	—	547,706
Repayments of securitization debt	—	(645,377)	—	(645,377)
Borrowings of asset-backed commercial paper	—	33,547	—	33,547
Repayments of asset-backed commercial paper	—	(129,961)	—	(129,961)
Net decrease in unsecured commercial paper	—	(75,229)	—	(75,229)
Net increase in deposits	—	122,288	—	122,288
Dividends paid	(48,193)	—	—	(48,193)
Repurchase of common stock	(169,645)	—	—	(169,645)
Other financing activities	76	2,500	(2,500)	76
Net cash (used) provided by financing activities	(217,762)	245,098	(2,500)	24,836
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(729)	239	—	(490)
Net increase in cash, cash equivalents and restricted cash	$34,606	$55,064	$—	$89,670
Cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash, beginning of period	$1,021,798	$557,379	$—	$1,579,177
Net increase in cash, cash equivalents and restricted cash	34,606	55,064	—	89,670
Cash, cash equivalents and restricted cash, end of period	$1,056,404	$612,443	$—	$1,668,847

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