HARLEY-DAVIDSON INC

For the period ended Sep 30, 2024. Filed Nov 6, 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.

Sep 30, 2024 · Filed Nov 6, 2024

HOG$34.20+4.7%Stored close · as of Nov 9, 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 September 30, 2024
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
Revenue:
Motorcycles and related products	$883,958	$—	$(2,745)	$881,213
Financial services	—	269,880	(398)	269,482
	883,958	269,880	(3,143)	1,150,695
Costs and expenses:
Motorcycles and related products cost of goods sold	618,580	—	—	618,580
Financial services interest expense	—	94,463	—	94,463
Financial services provision for credit losses	—	57,977	—	57,977
Selling, administrative and engineering expense	234,002	43,042	(3,165)	273,879
	852,582	195,482	(3,165)	1,044,899
Operating income	31,376	74,398	22	105,796
Other income, net	18,408	—	—	18,408
Investment income	16,450	—	—	16,450
Interest expense	7,707	—	—	7,707
Income before income taxes	58,527	74,398	22	132,947
Income tax provision	(914)	17,894	—	16,980
Net income	59,441	56,504	22	115,967
Less: (income) loss attributable to noncontrolling interests	3,073	$—	$—	$3,073
Net income attributable to Harley-Davidson, Inc.	$62,514	$56,504	$22	$119,040
	Nine months ended September 30, 2024
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
Revenue:
Motorcycles and related products	$3,724,668	$—	$(7,293)	$3,717,375
Financial services	—	783,339	(1,521)	781,818
	3,724,668	783,339	(8,814)	4,499,193
Costs and expenses:
Motorcycles and related products cost of goods sold	2,566,272	—	—	2,566,272
Financial services interest expense	—	276,943	—	276,943
Financial services provision for credit losses	—	175,017	—	175,017
Selling, administrative and engineering expense	744,663	135,169	(8,847)	870,985
	3,310,935	587,129	(8,847)	3,889,217
Operating income	413,733	196,210	33	609,976
Other income, net	54,851	—	—	54,851
Investment income	45,665	—	—	45,665
Interest expense	23,066	—	—	23,066
Income before income taxes	491,183	196,210	33	687,426
Provision for income taxes	76,648	47,173	—	123,821
Net income	414,535	149,037	33	563,605
Less: (income) loss attributable to noncontrolling interests	8,644	—	—	8,644
Net income attributable to Harley-Davidson, Inc.	$423,179	$149,037	$33	$572,249

	Three months ended September 30, 2023
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
Revenue:
Motorcycles and Related Products	$1,307,289	$—	$(2,164)	$1,305,125
Financial Services	—	244,554	(620)	243,934
	1,307,289	244,554	(2,784)	1,549,059
Costs and expenses:
Motorcycles and Related Products cost of goods sold	893,343	—	—	893,343
Financial Services interest expense	—	84,123	—	84,123
Financial Services provision for credit losses	—	60,854	—	60,854
Selling, administrative and engineering expense	262,444	41,745	(2,735)	301,454
	1,155,787	186,722	(2,735)	1,339,774
Operating income	151,502	57,832	(49)	209,285
Other income, net	26,814	—	—	26,814
Investment income	209,868	—	(200,000)	9,868
Interest expense	7,688	—	—	7,688
Income before income taxes	380,496	57,832	(200,049)	238,279
Provision for income taxes	27,867	14,309	—	42,176
Net income	352,629	43,523	(200,049)	196,103
Less: (income) loss attributable to noncontrolling interests	2,546	—	—	2,546
Net income attributable to Harley-Davidson, Inc.	$355,175	$43,523	$(200,049)	$198,649
	Nine months ended September 30, 2023
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
Revenue:
Motorcycles and related products	$4,082,312	$—	$(6,434)	$4,075,878
Financial services	—	709,167	(1,777)	707,390
	4,082,312	709,167	(8,211)	4,783,268
Costs and expenses:
Motorcycles and related products cost of goods sold	2,691,272	—	—	2,691,272
Financial services interest expense	—	243,677	—	243,677
Financial services provision for credit losses	—	170,496	—	170,496
Selling, administrative and engineering expense	762,963	122,871	(8,243)	877,591
	3,454,235	537,044	(8,243)	3,983,036
Operating income	628,077	172,123	32	800,232
Other income, net	54,136	—	—	54,136
Investment income	231,044	—	(200,000)	31,044
Interest expense	23,104	—	—	23,104
Income before income taxes	890,153	172,123	(199,968)	862,308
Provision for income taxes	150,265	40,281	—	190,546
Net income	739,888	131,842	(199,968)	671,762
Less: (income) loss attributable to noncontrolling interests	9,016	—	—	9,016
Net income attributable to Harley-Davidson, Inc.	$748,904	$131,842	$(199,968)	$680,778

	September 30, 2024
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$1,213,301	$1,030,609	$—	$2,243,910
Accounts receivable, net	498,694	60	(191,053)	307,701
Finance receivables, net	—	2,300,551	—	2,300,551
Inventories, net	681,864	—	—	681,864
Restricted cash	—	147,910	—	147,910
Other current assets	167,555	58,209	(17,764)	208,000
	2,561,414	3,537,339	(208,817)	5,889,936
Finance receivables, net	—	5,499,836	—	5,499,836
Property, plant and equipment, net	713,603	14,864	—	728,467
Pension and postretirement assets	452,515	—	—	452,515
Goodwill	62,909	—	—	62,909
Deferred income taxes	77,990	92,208	(908)	169,290
Lease assets	66,304	3,533	—	69,837
Other long-term assets	223,749	46,247	(116,127)	153,869
	$4,158,484	$9,194,027	$(325,852)	$13,026,659
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$283,296	$213,376	$(191,053)	$305,619
Accrued liabilities	491,697	151,907	(17,252)	626,352
Short-term deposits, net	—	178,638	—	178,638
Short-term debt	—	497,373	—	497,373
Current portion of long-term debt, net	449,759	2,111,776	—	2,561,535
	1,224,752	3,153,070	(208,305)	4,169,517
Long-term deposits, net	—	370,372	—	370,372
Long-term debt, net	296,859	4,442,648	—	4,739,507
Lease liabilities	48,821	3,134	—	51,955
Pension and postretirement liabilities	58,551	—	—	58,551
Deferred income taxes	30,266	3,227	—	33,493
Other long-term liabilities	147,563	28,697	1,892	178,152
Commitments and contingencies (Note 14)
Shareholders’ equity	2,351,672	1,192,879	(119,439)	3,425,112
	$4,158,484	$9,194,027	$(325,852)	$13,026,659

	September 30, 2023
Non-Financial Services Entities · Financial Services Entities · Consolidating Adjustments · Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$1,218,420		$659,931	$—		$1,878,351
Accounts receivable, net	672,755		8	(357,432)		315,331
Finance receivables, net	—		2,101,965	—		2,101,965
Inventories, net	768,765		—	—		768,765
Restricted cash	—		130,838	—		130,838
Other current assets	172,174		59,920	(4,538)		227,556
	2,832,114		2,952,662	(361,970)		5,422,806
Finance receivables, net	—		5,553,259	—		5,553,259
Property, plant and equipment, net	682,350		20,954	—		703,304
Pension and postretirement assets	369,440		—	—		369,440
Goodwill	61,935		—	—		61,935
Deferred income taxes	54,972		90,976	(1,184)		144,764
Lease assets	65,327		3,707	—		69,034
Other long-term assets	223,757		26,765	(112,848)		137,674
	$4,289,895		$8,648,323	$(476,002)		$12,462,216
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$362,662		$376,897	$(357,432)		$382,127
Accrued liabilities	461,725		128,585	(4,176)		586,134
Short-term deposits, net		250,987			250,987
Short-term debt	—		815,081	—		815,081
Current portion of long-term debt, net	—		638,496	—		638,496
	824,387		2,210,046	(361,608)		2,672,825
Long-term deposits, net	—		227,946	—		227,946
Long-term debt, net	745,900		5,110,105	—		5,856,005
Lease liabilities	48,572		3,666	—		52,238
Pension and postretirement liabilities	67,991		—	—		67,991
Deferred income taxes	27,116		2,412	—		29,528
Other long-term liabilities	144,405		98,041	1,967		244,413
Commitments and contingencies (Note 14)
Shareholders’ equity	2,431,524		996,107	(116,361)		3,311,270
	$4,289,895		$8,648,323	$(476,002)		$12,462,216

	Nine months ended September 30, 2024
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
Cash flows from operating activities:
Net income	$414,535	$149,037	$33	$563,605
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	112,605	6,963	—	119,568
Amortization of deferred loan origination costs	—	54,461	—	54,461
Amortization of financing origination fees	540	9,823	—	10,363
Provision for long-term employee benefits	(40,076)	—	—	(40,076)
Employee benefit plan contributions and payments	(3,781)	—	—	(3,781)
Stock compensation expense	38,234	1,586	—	39,820
Net change in wholesale finance receivables related to sales	—	—	(211,800)	(211,800)
Provision for credit losses	—	175,017	—	175,017
Deferred income taxes	3,347	(4,724)	(438)	(1,815)
Other, net	15,505	4,085	(33)	19,557
Changes in current assets and liabilities:
Accounts receivable, net	(79,746)	—	43,217	(36,529)
Finance receivables – accrued interest and other	—	2,325	—	2,325
Inventories, net	253,373	—	—	253,373
Accounts payable and accrued liabilities	(35,743)	53,591	(30,751)	(12,903)
Other current assets	(23,008)	12,295	10,183	(530)
	241,250	315,422	(189,622)	367,050
Net cash provided by operating activities	655,785	464,459	(189,589)	930,655
Cash flows from investing activities:
Capital expenditures	(139,295)	(1,129)	—	(140,424)
Origination of finance receivables	—	(5,671,416)	2,668,679	(3,002,737)
Collections on finance receivables	—	5,136,239	(2,479,090)	2,657,149
Other investing activities	(1,165)	—	1,000	(165)
Net cash used by investing activities	(140,460)	(536,306)	190,589	(486,177)

	Nine months ended September 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	—	1,145,211	—	1,145,211
Repayments of securitization debt	—	(782,161)	—	(782,161)
Borrowings of asset-backed commercial paper	—	366,171	—	366,171
Repayments of asset-backed commercial paper	—	(195,709)	—	(195,709)
Net decrease in unsecured commercial paper	—	(387,392)	—	(387,392)
Net increase in deposits	—	100,737	—	100,737
Dividends paid	(69,454)	—	—	(69,454)
Repurchase of common stock	(359,810)	—	—	(359,810)
Other financing activities	11	1,000	(1,000)	11
Net cash (used) provided by financing activities	(429,253)	743,713	(1,000)	313,460
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(171)	369	—	198
Net increase in cash, cash equivalents and restricted cash	$85,901	$672,235	$—	$758,136
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	85,901	672,235	—	758,136
Cash, cash equivalents and restricted cash, end of period	$1,213,301	$1,193,646	$—	$2,406,947

	Nine months ended September 30, 2023
	Non-Financial Services Entities	Financial Services Entities	Consolidating Adjustments	Consolidated
Cash flows from operating activities:
Net income	$739,888	$131,842	$(199,968)	$671,762
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	105,824	6,768	—	112,592
Amortization of deferred loan origination costs	—	65,996	—	65,996
Amortization of financing origination fees	532	9,202	—	9,734
Provision for long-term employee benefits	(50,373)	—	—	(50,373)
Employee benefit plan contributions and payments	(2,668)	—	—	(2,668)
Stock compensation expense	61,642	2,896	—	64,538
Net change in wholesale finance receivables related to sales	—	—	(392,817)	(392,817)
Provision for credit losses	—	170,496	—	170,496
Deferred income taxes	147	(8,764)	162	(8,455)
Other, net	(15,606)	(4,099)	(33)	(19,738)
Changes in current assets and liabilities:
Accounts receivable, net	(312,549)	—	240,465	(72,084)
Finance receivables – accrued interest and other	—	2,366	—	2,366
Inventories, net	160,742	—	—	160,742
Accounts payable and accrued liabilities	(10,440)	257,748	(232,855)	14,453
Other current assets	(24,418)	4,645	(4)	(19,777)
	(87,167)	507,254	(385,082)	35,005
Net cash provided by operating activities	652,721	639,096	(585,050)	706,767
Cash flows from investing activities:
Capital expenditures	(135,768)	(3,134)	—	(138,902)
Origination of finance receivables	—	(6,035,046)	2,872,089	(3,162,957)
Collections on finance receivables	—	5,276,887	(2,487,039)	2,789,848
Other investing activities	(1,622)	—	2,500	878
Net cash used by investing activities	(137,390)	(761,293)	387,550	(511,133)

	Nine months ended September 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	—	1,045,547	—	1,045,547
Repayments of securitization debt	—	(930,608)	—	(930,608)
Borrowings of asset-backed commercial paper	—	42,429	—	42,429
Repayments of asset-backed commercial paper	—	(187,599)	—	(187,599)
Net decrease in unsecured commercial paper	—	43,523	—	43,523
Net increase in deposits	—	161,157	—	161,157
Dividends paid	(72,775)	(200,000)	200,000	(72,775)
Repurchase of common stock	(239,428)	—	—	(239,428)
Other financing activities	1,706	2,500	(2,500)	1,706
Net cash (used) provided by financing activities	(310,497)	366,573	197,500	253,576
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(8,212)	(203)	—	(8,415)
Net increase in cash, cash equivalents and restricted cash	$196,622	$244,173	$—	$440,795
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	196,622	244,173	—	440,795
Cash, cash equivalents and restricted cash, end of period	$1,218,420	$801,552	$—	$2,019,972

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