HARLEY-DAVIDSON INC
For the period ended Dec 31, 2024. Filed Feb 26, 2025.
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FY2024 · Filed Feb 26, 2025
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18. Reportable Segments and Geographic Information
- Reportable Segments and Geographic Information
The Company’s reportable segments and significant segment expenses are determined based on how the Company’s Chief Operating Decision Maker (CODM) assesses performance and decides how to allocate resources for the Company.
The Company’s Chairman, President and Chief Executive Officer, is the Company’s CODM. Operating income is the measure of profit and loss used by the CODM to assess performance and to decide how to allocate resources for each of the Company’s reportable segments.
Operating income is used to monitor actual results versus planned and prior period results for each segment based on their respective profitability objectives and business models. Operating income is also used to allocate human and capital resources among the reportable segments and to other corporate actions for returning capital to shareholders such as repurchasing common stock or paying dividends. Operating income is also a key metric used to establish and pay variable compensation to employees at all levels.
Reportable Segments– The Company operates with three segments: Harley-Davidson Motor Company (HDMC), LiveWire, and Harley-Davidson Financial Services (HDFS). The Company's reportable segments are strategic business units that offer different products and services and are managed separately based on the fundamental differences in their operations.
HDMC designs, manufactures and sells motorcycles and also sells motorcycle parts, accessories, and apparel as well as licenses its trademarks. HDMC’s products are sold to retail customers primarily through a network of independent dealers. HDMC conducts business on a global basis, with sales in the U.S., Canada, Europe/Middle East/Africa (EMEA), Asia Pacific, and Latin America.
LiveWire sells electric motorcycles, electric balance bikes for kids, parts and accessories and apparel in the United States and certain international markets. Electric motorcycles, related parts and accessories and apparel are sold at wholesale to a network of independent dealers and at retail through a company-owned dealer, through online sales and direct to customers through select international partners primarily in Europe. Electric balance bikes and related parts and accessories are sold through independent retail partners and distributors and direct to consumers online.
HDFS is engaged in the business of financing and servicing wholesale inventory receivables and retail consumer loans, primarily for the purchase of Harley-Davidson and LiveWire motorcycles. HDFS also works with certain unaffiliated third parties to provide motorcycle insurance and voluntary protection products to motorcycle owners. HDFS conducts business principally in the U.S. and Canada.
Selected segment information is set forth below for the years ended December 31 (in thousands):
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| HDMC: | |||
| Revenue | $4,121,906 | $4,844,594 | $4,887,672 |
| Motorcycles and related products cost of goods sold | 2,967,068 | 3,278,052 | 3,359,799 |
| Gross profit | 1,154,838 | 1,566,542 | 1,527,873 |
| Selling, administrative and engineering expense: | |||
| People expenses(a) | 364,416 | 417,109 | 358,105 |
| Marketing and advertising expenses(b) | 123,811 | 124,551 | 96,820 |
| Other segment items(c) | 388,767 | 363,731 | 395,861 |
| Operating income | 277,844 | 661,151 | 677,087 |
| LiveWire: | |||
| Revenue | 26,358 | 38,298 | 46,833 |
| Motorcycles and related products cost of goods sold | 38,872 | 44,254 | 43,929 |
| Gross profit | (12,514) | (5,956) | 2,904 |
| Selling, administrative and engineering expense | 97,125 | 110,853 | 88,219 |
| Operating loss | (109,639) | (116,809) | (85,315) |
| HDFS: | |||
| Financial services revenue | 1,038,538 | 953,586 | 820,625 |
| Financial services interest expense | 371,766 | 332,380 | 217,653 |
| Financial services provision for credit losses | 247,225 | 227,158 | 145,133 |
| Selling and administrative expense | 171,125 | 159,306 | 140,333 |
| Operating income | 248,422 | 234,742 | 317,506 |
| Operating income | $416,627 | $779,084 | $909,278 |
(a)People expenses include salary and related fringe costs, including payroll tax and health and welfare costs, as well as short-term incentive compensation and long-term incentive compensation, primarily in the form of share-based awards.
(b)Marketing and advertising expenses include costs related to digital and print media, social media, website maintenance, consumer experiences, product placement, sponsorships and market research.
(c)Other segment items for HDMC include depreciation, warranty, maintenance and facilities costs, supplies and materials, and other professional services. These costs are all included in Selling, administrative and engineering expense.
Additional segment information is set forth below as of December 31 (in thousands):
| HDMC | LiveWire | HDFS | Consolidated | |
|---|---|---|---|---|
| 2024: | ||||
| Assets | $3,630,710 | $147,960 | $8,102,909 | $11,881,579 |
| Depreciation and amortization | $141,275 | $10,041 | $9,357 | $160,673 |
| Capital expenditures | $186,639 | $8,068 | $1,856 | $196,563 |
| 2023: | ||||
| Assets | $3,644,016 | $266,404 | $8,230,134 | $12,140,554 |
| Depreciation and amortization | $143,355 | $5,832 | $8,925 | $158,112 |
| Capital expenditures | $188,863 | $13,462 | $5,079 | $207,404 |
| 2022: | ||||
| Assets | $3,254,309 | $351,422 | $7,886,745 | $11,492,476 |
| Depreciation and amortization | $138,875 | $4,401 | $8,666 | $151,942 |
| Capital expenditures | $133,191 | $14,081 | $4,397 | $151,669 |
Geographic Information–Included in the Consolidated financial statements are the following amounts relating to geographic locations for the years ended December 31 (in thousands):
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| HDMC revenue(a): | |||
| United States | $2,814,482 | $3,289,227 | $3,253,875 |
| EMEA | 584,490 | 637,492 | 693,073 |
| Canada | 210,526 | 220,158 | 216,389 |
| Japan | 128,432 | 200,539 | 175,292 |
| Australia and New Zealand | 119,949 | 127,352 | 147,551 |
| Other countries | 264,027 | 369,826 | 401,492 |
| $4,121,906 | $4,844,594 | $4,887,672 | |
| LiveWire revenue(a): | |||
| United States | 21,461 | 31,483 | 36,256 |
| International | 4,897 | 6,815 | 10,577 |
| $26,358 | $38,298 | $46,833 | |
| HDFS revenue(a): | |||
| United States | $1,006,574 | $922,758 | $794,912 |
| Canada | 21,167 | 18,220 | 16,276 |
| Europe | 6,503 | 7,343 | 6,071 |
| Other countries | 4,294 | 5,265 | 3,366 |
| $1,038,538 | $953,586 | $820,625 | |
| Long-lived assets(b): | |||
| United States | $640,837 | $644,620 | $611,421 |
| Thailand | 113,094 | 82,197 | 72,474 |
| Other countries | 3,141 | 4,907 | 5,991 |
| 116,235 | 87,104 | 78,465 | |
| $757,072 | $731,724 | $689,886 | |
(a)Revenue is attributed to geographic regions based on location of customer.
(b)Long-lived assets include all long-term assets except those specifically excluded under ASC Topic 280, Segment Reporting, such as deferred income taxes and finance receivables.
- Supplemental Consolidating Data
The supplemental consolidating data includes separate legal entity data for the Company's financial services entities, including Harley-Davidson Financial Services, Inc. and its subsidiaries, (Financial Services Entities) and all other Harley-Davidson, Inc. entities (Non-Financial Services Entities). The supplemental consolidating data is presented to highlight the separate financial statement impacts of the Company's financial services entities and its non-financial services entities. The income statement information presented below differs from reportable segment income statement information due to the allocation of legal entity consolidating adjustments to income for reportable segments. Supplemental consolidating data for 2024 is as follows (in thousands):
| Year Ended December 31, 2024 | ||||
|---|---|---|---|---|
| Non-Financial Services Entities | Financial Services Entities | Consolidating Adjustments | Consolidated | |
| Revenue: | ||||
| Motorcycles and related products | $4,157,275 | $— | $(9,011) | $4,148,264 |
| Financial services | — | 1,040,203 | (1,665) | 1,038,538 |
| 4,157,275 | 1,040,203 | (10,676) | 5,186,802 | |
| Costs and expenses: | ||||
| Motorcycles and related products cost of goods sold | 3,005,940 | — | — | 3,005,940 |
| Financial services interest expense | — | 371,766 | — | 371,766 |
| Financial services provision for credit losses | — | 247,225 | — | 247,225 |
| Selling, administrative and engineering expense | 976,028 | 180,137 | (10,921) | 1,145,244 |
| 3,981,968 | 799,128 | (10,921) | 4,770,175 | |
| Operating income | 175,307 | 241,075 | 245 | 416,627 |
| Other income, net | 72,295 | — | — | 72,295 |
| Investment income | 258,964 | — | (200,000) | 58,964 |
| Interest expense | 30,748 | — | — | 30,748 |
| Income before income taxes | 475,818 | 241,075 | (199,755) | 517,138 |
| Income tax provision | 15,197 | 56,766 | — | 71,963 |
| Net income | 460,621 | 184,309 | (199,755) | 445,175 |
| Less: (income) loss attributable to noncontrolling interests | 10,182 | — | — | 10,182 |
| Net income attributable to Harley-Davidson, Inc. | $470,803 | $184,309 | $(199,755) | $455,357 |
| Year Ended December 31, 2023 | ||||
|---|---|---|---|---|
| Non-Financial Services Entities | Financial Services Entities | Consolidating Adjustments | Consolidated | |
| Revenue: | ||||
| Motorcycles and related products | $4,891,449 | $— | $(8,557) | $4,882,892 |
| Financial services | — | 955,810 | (2,224) | 953,586 |
| 4,891,449 | 955,810 | (10,781) | 5,836,478 | |
| Costs and expenses: | ||||
| Motorcycles and related products cost of goods sold | 3,322,306 | — | — | 3,322,306 |
| Financial services interest expense | — | 332,380 | — | 332,380 |
| Financial services provision for credit losses | — | 227,158 | — | 227,158 |
| Selling, administrative and engineering expense | 1,018,670 | 167,861 | (10,981) | 1,175,550 |
| 4,340,976 | 727,399 | (10,981) | 5,057,394 | |
| Operating income | 550,473 | 228,411 | 200 | 779,084 |
| Other income, net | 71,808 | — | — | 71,808 |
| Investment income | 246,771 | — | (200,000) | 46,771 |
| Interest expense | 30,787 | — | — | 30,787 |
| Income before income taxes | 838,265 | 228,411 | (199,800) | 866,876 |
| Income tax provision | 125,356 | 46,474 | — | 171,830 |
| Net income | 712,909 | 181,937 | (199,800) | 695,046 |
| Less: (income) loss attributable to noncontrolling interests | 11,540 | — | — | 11,540 |
| Net income attributable to Harley-Davidson, Inc. | $724,449 | $181,937 | $(199,800) | $706,586 |
| Year Ended December 31, 2022 | ||||
|---|---|---|---|---|
| Non-Financial Services Entities | Financial Services Entities | Consolidating Adjustments | Consolidated | |
| Revenue: | ||||
| Motorcycles and related products | $4,946,005 | $— | $(11,500) | $4,934,505 |
| Financial services | — | 822,530 | (1,905) | 820,625 |
| 4,946,005 | 822,530 | (13,405) | 5,755,130 | |
| Costs and expenses: | ||||
| Motorcycles and related products cost of goods sold | 3,403,728 | — | — | 3,403,728 |
| Financial services interest expense | — | 217,653 | — | 217,653 |
| Financial services provision for credit losses | — | 145,133 | — | 145,133 |
| Selling, administrative and engineering expense | 941,312 | 151,833 | (13,807) | 1,079,338 |
| 4,345,040 | 514,619 | (13,807) | 4,845,852 | |
| Operating income | 600,965 | 307,911 | 402 | 909,278 |
| Other income, net | 48,652 | — | — | 48,652 |
| Investment income | 204,538 | — | (200,000) | 4,538 |
| Interest expense | 31,235 | — | — | 31,235 |
| Income before income taxes | 822,920 | 307,911 | (199,598) | 931,233 |
| Income tax provision | 125,820 | 66,199 | — | 192,019 |
| Net income | 697,100 | 241,712 | (199,598) | 739,214 |
| Less: (income) loss attributable to noncontrolling interests | 2,194 | — | — | 2,194 |
| Net income attributable to Harley-Davidson, Inc. | $699,294 | $241,712 | $(199,598) | $741,408 |
| Year Ended December 31, 2024 | ||||
|---|---|---|---|---|
| Non-Financial Services Entities | Financial Services Entities | Consolidating Adjustments | Consolidated | |
| Net income | $460,621 | $184,309 | $(199,755) | $445,175 |
| Other comprehensive income (loss), net of tax: | ||||
| Foreign currency translation adjustments | (13,039) | (9,324) | — | (22,363) |
| Derivative financial instruments | 16,621 | (2,478) | — | 14,143 |
| Pension and postretirement benefit plans | (19,524) | — | — | (19,524) |
| (15,942) | (11,802) | — | (27,744) | |
| Comprehensive income | 444,679 | 172,507 | (199,755) | 417,431 |
| Less: Comprehensive loss attributable to noncontrolling interests | 10,182 | — | — | 10,182 |
| Comprehensive income attributable to Harley-Davidson, Inc. | $454,861 | $172,507 | $(199,755) | $427,613 |
| Year Ended December 31, 2023 | ||||
|---|---|---|---|---|
| Non-Financial Services Entities | Financial Services Entities | Consolidating Adjustments | Consolidated | |
| Net income | $712,909 | $181,937 | $(199,800) | $695,046 |
| Other comprehensive income (loss), net of tax: | ||||
| Foreign currency translation adjustments | 9,619 | 1,913 | — | 11,532 |
| Derivative financial instruments | 919 | 2,920 | — | 3,839 |
| Pension and postretirement benefit plans | 21,596 | — | — | 21,596 |
| 32,134 | 4,833 | — | 36,967 | |
| Comprehensive income | 745,043 | 186,770 | (199,800) | 732,013 |
| Less: Comprehensive loss attributable to noncontrolling interests | 11,540 | — | — | 11,540 |
| Comprehensive income attributable to Harley-Davidson, Inc. | $756,583 | $186,770 | $(199,800) | $743,553 |
| Year Ended December 31, 2022 | ||||
|---|---|---|---|---|
| Non-Financial Services Entities | Financial Services Entities | Consolidating Adjustments | Consolidated | |
| Net income | $697,100 | $241,712 | $(199,598) | $739,214 |
| Other comprehensive income (loss), net of tax: | ||||
| Foreign currency translation adjustments | (27,198) | (8,672) | — | (35,870) |
| Derivative financial instruments | (15,312) | 6,877 | — | (8,435) |
| Pension and postretirement benefit plans | (56,705) | — | — | (56,705) |
| (99,215) | (1,795) | — | (101,010) | |
| Comprehensive income | 597,885 | 239,917 | (199,598) | 638,204 |
| Less: Comprehensive loss attributable to noncontrolling interests | 2,194 | — | — | 2,194 |
| Comprehensive income attributable to Harley-Davidson, Inc. | $600,079 | $239,917 | $(199,598) | $640,398 |
| December 31, 2024 | ||||
|---|---|---|---|---|
| Non-Financial Services Entities | Financial Services Entities | Consolidating Adjustments | Consolidated | |
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $1,105,663 | $483,945 | $— | $1,589,608 |
| Accounts receivable, net | 294,776 | 65 | (60,526) | 234,315 |
| Finance receivables, net | — | 2,031,496 | — | 2,031,496 |
| Inventories, net | 745,793 | — | — | 745,793 |
| Restricted cash | — | 135,661 | — | 135,661 |
| Other current assets | 273,791 | 63,608 | (77,635) | 259,764 |
| 2,420,023 | 2,714,775 | (138,161) | 4,996,637 | |
| Finance receivables, net | — | 5,256,798 | — | 5,256,798 |
| Property, plant and equipment, net | 743,875 | 13,197 | — | 757,072 |
| Pension and postretirement assets | 440,825 | — | — | 440,825 |
| Goodwill | 61,655 | — | — | 61,655 |
| Deferred income taxes | 88,734 | 88,109 | (1,017) | 175,826 |
| Lease assets | 60,628 | 3,225 | — | 63,853 |
| Other long-term assets | 221,694 | 26,805 | (119,586) | 128,913 |
| $4,037,434 | $8,102,909 | $(258,764) | $11,881,579 | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $275,314 | $83,930 | $(60,526) | $298,718 |
| Accrued liabilities | 515,830 | 155,437 | (77,307) | 593,960 |
| Short-term deposits, net | — | 173,099 | — | 173,099 |
| Short-term debt | — | 640,204 | — | 640,204 |
| Current portion of long-term debt, net | 449,831 | 1,401,682 | — | 1,851,513 |
| 1,240,975 | 2,454,352 | (137,833) | 3,557,494 | |
| Long-term deposits, net | — | 377,487 | — | 377,487 |
| Long-term debt, net | 296,969 | 4,171,696 | — | 4,468,665 |
| Lease liabilities | 44,520 | 2,900 | — | 47,420 |
| Pension and postretirement liabilities | 53,874 | — | — | 53,874 |
| Deferred income taxes | 15,765 | 1,124 | — | 16,889 |
| Other long-term liabilities | 139,373 | 60,123 | 1,754 | 201,250 |
| Commitments and contingencies (Note 15) | ||||
| Shareholders’ equity | 2,245,958 | 1,035,227 | (122,685) | 3,158,500 |
| $4,037,434 | $8,102,909 | $(258,764) | $11,881,579 | |
| December 31, 2023 | ||||
|---|---|---|---|---|
| Non-Financial Services Entities | Financial Services Entities | Consolidating Adjustments | Consolidated | |
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $1,127,400 | $406,406 | $— | $1,533,806 |
| Accounts receivable, net | 415,004 | 32 | (147,836) | 267,200 |
| Finance receivables, net | — | 2,113,729 | — | 2,113,729 |
| Inventories, net | 929,951 | — | — | 929,951 |
| Restricted cash | — | 104,642 | — | 104,642 |
| Other current assets | 148,006 | 73,976 | (7,581) | 214,401 |
| 2,620,361 | 2,698,785 | (155,417) | 5,163,729 | |
| Finance receivables, net | — | 5,384,536 | — | 5,384,536 |
| Property, plant and equipment, net | 710,982 | 20,742 | — | 731,724 |
| Pension and postretirement assets | 413,107 | — | — | 413,107 |
| Goodwill | 62,696 | — | — | 62,696 |
| Deferred income taxes | 79,151 | 83,379 | (1,346) | 161,184 |
| Lease assets | 66,166 | 3,484 | — | 69,650 |
| Other long-term assets | 228,261 | 39,208 | (113,541) | 153,928 |
| $4,180,724 | $8,230,134 | $(270,304) | $12,140,554 | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $323,798 | $173,200 | $(147,836) | $349,162 |
| Accrued liabilities | 509,725 | 144,622 | (7,488) | 646,859 |
| Short-term deposits, net | — | 253,309 | — | 253,309 |
| Short-term debt | — | 878,935 | — | 878,935 |
| Current portion of long-term debt, net | — | 1,255,999 | — | 1,255,999 |
| 833,523 | 2,706,065 | (155,324) | 3,384,264 | |
| Long-term deposits, net | — | 194,473 | — | 194,473 |
| Long-term debt, net | 746,077 | 4,244,509 | — | 4,990,586 |
| Lease liabilities | 48,433 | 3,415 | — | 51,848 |
| Pension and postretirement liabilities | 59,772 | — | — | 59,772 |
| Deferred income taxes | 30,266 | 3,248 | — | 33,514 |
| Other long-term liabilities | 150,171 | 21,725 | 1,906 | 173,802 |
| Commitments and contingencies (Note 15) | ||||
| Shareholders’ equity | 2,312,482 | 1,056,699 | (116,886) | 3,252,295 |
| $4,180,724 | $8,230,134 | $(270,304) | $12,140,554 | |
| Year Ended December 31, 2024 | ||||
|---|---|---|---|---|
| Non-Financial Services Entities | Financial Services Entities | Consolidating Adjustments | Consolidated | |
| Cash flows from operating activities: | ||||
| Net income | $460,621 | $184,309 | $(199,755) | $445,175 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Depreciation and amortization | 151,316 | 9,357 | — | 160,673 |
| Amortization of deferred loan origination costs | — | 70,745 | — | 70,745 |
| Amortization of financing origination fees | 721 | 13,242 | — | 13,963 |
| Provision for long-term employee benefits | (54,008) | — | — | (54,008) |
| Employee benefit plan contributions and payments | (5,078) | — | — | (5,078) |
| Stock compensation expense | 46,960 | 2,045 | — | 49,005 |
| Net change in wholesale finance receivables related to sales | — | — | 46,884 | 46,884 |
| Provision for credit losses | — | 247,225 | — | 247,225 |
| Deferred income taxes | (21,136) | (4,811) | (329) | (26,276) |
| Other, net | 17,289 | 25 | (244) | 17,070 |
| Changes in current assets and liabilities: | ||||
| Accounts receivable, net | 107,088 | — | (87,310) | 19,778 |
| Finance receivables - accrued interest and other | — | 36 | — | 36 |
| Inventories, net | 164,609 | — | — | 164,609 |
| Accounts payable and accrued liabilities | (27,273) | (73,795) | 45,632 | (55,436) |
| Other current assets | (110,404) | 9,818 | 70,054 | (30,532) |
| 270,084 | 273,887 | 74,687 | 618,658 | |
| Net cash provided by operating activities | 730,705 | 458,196 | (125,068) | 1,063,833 |
| Cash flows from investing activities: | ||||
| Capital expenditures | (194,707) | (1,856) | — | (196,563) |
| Origination of finance receivables | — | (6,464,892) | 2,825,613 | (3,639,279) |
| Collections on finance receivables | — | 6,340,885 | (2,900,545) | 3,440,340 |
| Other investing activities | 8,172 | — | 4,000 | 12,172 |
| Net cash used by investing activities | (186,535) | (125,863) | (70,932) | (383,330) |
| Year Ended December 31, 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 |
| Repayments of medium-term notes | — | (660,780) | — | (660,780) |
| Proceeds from securitization debt | — | 1,145,211 | — | 1,145,211 |
| Repayments of securitization debt | — | (1,078,248) | — | (1,078,248) |
| Borrowings of asset-backed commercial paper | — | 469,986 | — | 469,986 |
| Repayments of asset-backed commercial paper | — | (258,077) | — | (258,077) |
| Net decrease in unsecured commercial paper | — | (237,340) | — | (237,340) |
| Net increase in deposits | — | 102,119 | — | 102,119 |
| Dividends paid | (91,224) | (200,000) | 200,000 | (91,224) |
| Repurchase of common stock | (459,829) | — | — | (459,829) |
| Other financing activities | 11 | 4,000 | (4,000) | 11 |
| Net cash used by financing activities | (551,042) | (217,273) | 196,000 | (572,315) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (14,865) | (1,280) | — | (16,145) |
| Net (decrease) increase in cash, cash equivalents and restricted cash | $(21,737) | $113,780 | $— | $92,043 |
| Cash, cash equivalents and restricted cash: | ||||
| Cash, cash equivalents and restricted cash, beginning of period | $1,127,400 | $521,411 | $— | $1,648,811 |
| Net (decrease) increase in cash, cash equivalents and restricted cash | (21,737) | 113,780 | — | 92,043 |
| Cash, cash equivalents and restricted cash, end of period | $1,105,663 | $635,191 | $— | $1,740,854 |
| Year Ended December 31, 2023 | ||||
|---|---|---|---|---|
| Non-Financial Services Entities | Financial Services Entities | Consolidating Adjustments | Consolidated | |
| Cash flows from operating activities: | ||||
| Net income | $712,909 | $181,937 | $(199,800) | $695,046 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Depreciation and amortization | 149,187 | 8,925 | — | 158,112 |
| Amortization of deferred loan origination costs | — | 85,018 | — | 85,018 |
| Amortization of financing origination fees | 709 | 12,499 | — | 13,208 |
| Provision for long-term employee benefits | (67,624) | — | — | (67,624) |
| Employee benefit plan contributions and payments | (5,736) | — | — | (5,736) |
| Stock compensation expense | 79,311 | 3,590 | — | 82,901 |
| Net change in wholesale finance receivables related to sales | — | — | (387,743) | (387,743) |
| Provision for credit losses | — | 227,158 | — | 227,158 |
| Deferred income taxes | (26,720) | (3,663) | 324 | (30,059) |
| Other, net | (18,480) | (21,033) | (200) | (39,713) |
| Changes in current assets and liabilities: | ||||
| Accounts receivable, net | (42,312) | — | 30,869 | (11,443) |
| Finance receivables - accrued interest and other | — | (339) | — | (339) |
| Inventories, net | 21,257 | — | — | 21,257 |
| Accounts payable and accrued liabilities | (21,957) | 67,635 | (17,108) | 28,570 |
| Other current assets | (11,283) | (5,482) | 3,039 | (13,726) |
| 56,352 | 374,308 | (370,819) | 59,841 | |
| Net cash provided by operating activities | 769,261 | 556,245 | (570,619) | 754,887 |
| Cash flows from investing activities: | ||||
| Capital expenditures | (202,325) | (5,079) | — | (207,404) |
| Origination of finance receivables | — | (7,284,431) | 3,410,889 | (3,873,542) |
| Collections on finance receivables | — | 6,611,092 | (3,040,270) | 3,570,822 |
| Other investing activities | (4,680) | — | 2,500 | (2,180) |
| Net cash used by investing activities | (207,005) | (678,418) | 373,119 | (512,304) |
| Year Ended December 31, 2023 | ||||
|---|---|---|---|---|
| Non-Financial Services Entities | Financial Services Entities | Consolidating Adjustments | Consolidated | |
| Cash flows from financing activities: | ||||
| Proceeds from issuance of medium-term notes | — | 1,446,304 | — | 1,446,304 |
| Repayments of medium-term notes | — | (1,056,680) | — | (1,056,680) |
| Proceeds from securitization debt | — | 1,045,547 | — | 1,045,547 |
| Repayments of securitization debt | — | (1,193,526) | — | (1,193,526) |
| Borrowings of asset-backed commercial paper | — | 42,429 | — | 42,429 |
| Repayments of asset-backed commercial paper | — | (237,370) | — | (237,370) |
| Net increase in unsecured commercial paper | — | 107,146 | — | 107,146 |
| Net increase in deposits | — | 129,855 | — | 129,855 |
| Dividends paid | (96,310) | (200,000) | 200,000 | (96,310) |
| Repurchase of common stock | (363,987) | — | — | (363,987) |
| Other financing activities | 1,946 | 2,500 | (2,500) | 1,946 |
| Net cash (used) provided by financing activities | (458,351) | 86,205 | 197,500 | (174,646) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,697 | — | — | 1,697 |
| Net increase (decrease) in cash, cash equivalents and restricted cash | $105,602 | $(35,968) | $— | $69,634 |
| Cash, cash equivalents and restricted cash: | ||||
| Cash, cash equivalents and restricted cash, beginning of period | $1,021,798 | $557,379 | $— | $1,579,177 |
| Net increase (decrease) in cash, cash equivalents and restricted cash | 105,602 | (35,968) | — | 69,634 |
| Cash, cash equivalents and restricted cash, end of period | $1,127,400 | $521,411 | $— | $1,648,811 |
| Year Ended December 31, 2022 | ||||
|---|---|---|---|---|
| Non-Financial Services Entities | Financial Services Entities | Consolidating Adjustments | Consolidated | |
| Cash flows from operating activities: | ||||
| Net income | $697,100 | $241,712 | $(199,598) | $739,214 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Depreciation and amortization | 143,276 | 8,666 | — | 151,942 |
| Amortization of deferred loan origination costs | — | 94,914 | — | 94,914 |
| Amortization of financing origination fees | 700 | 14,405 | — | 15,105 |
| Provision for long-term employee benefits | (21,891) | — | — | (21,891) |
| Employee benefit plan contributions and payments | (14,320) | — | — | (14,320) |
| Stock compensation expense | 50,954 | 3,399 | — | 54,353 |
| Net change in wholesale finance receivables related to sales | — | — | (198,623) | (198,623) |
| Provision for credit losses | — | 145,133 | — | 145,133 |
| Deferred income taxes | (11,988) | (3,925) | (23) | (15,936) |
| Other, net | (5,745) | (6,880) | (402) | (13,027) |
| Changes in current assets and liabilities: | ||||
| Accounts receivable, net | (96,826) | — | 14,441 | (82,385) |
| Finance receivables - accrued interest and other | — | 414 | — | 414 |
| Inventories, net | (254,170) | — | — | (254,170) |
| Accounts payable and accrued liabilities | (6,840) | 27,069 | (15,726) | 4,503 |
| Other current assets | (54,516) | (3,559) | 1,310 | (56,765) |
| (271,366) | 279,636 | (199,023) | (190,753) | |
| Net cash provided by operating activities | 425,734 | 521,348 | (398,621) | 548,461 |
| Cash flows from investing activities: | ||||
| Capital expenditures | (147,272) | (4,397) | — | (151,669) |
| Origination of finance receivables | — | (7,960,123) | 3,401,289 | (4,558,834) |
| Collections on finance receivables | — | 7,137,669 | (3,202,668) | 3,935,001 |
| Other investing activities | 2,491 | — | — | 2,491 |
| Net cash used by investing activities | (144,781) | (826,851) | 198,621 | (773,011) |
| Year Ended December 31, 2022 | ||||
|---|---|---|---|---|
| Non-Financial Services Entities | Financial Services Entities | Consolidating Adjustments | Consolidated | |
| Cash flows from financing activities: | ||||
| Proceeds from issuance of medium-term notes | — | 495,785 | — | 495,785 |
| Repayments of medium-term notes | — | (950,000) | — | (950,000) |
| Proceeds from securitization debt | — | 1,826,891 | — | 1,826,891 |
| Repayments of securitization debt | — | (1,442,860) | — | (1,442,860) |
| Borrowings of asset-backed commercial paper | — | 448,255 | — | 448,255 |
| Repayments of asset-backed commercial paper | — | (302,922) | — | (302,922) |
| Net increase in unsecured commercial paper | — | 16,003 | — | 16,003 |
| Net increase in deposits | — | 26,605 | — | 26,605 |
| Dividends paid | (93,180) | (200,000) | 200,000 | (93,180) |
| Repurchase of common stock | (338,627) | — | — | (338,627) |
| Cash received from business combination | 114,068 | — | — | 114,068 |
| Other financing activities | (1,985) | — | — | (1,985) |
| Net cash (used) provided by financing activities | (319,724) | (82,243) | 200,000 | (201,967) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (17,636) | (1,889) | — | (19,525) |
| Net decrease in cash, cash equivalents and restricted cash | $(56,407) | $(389,635) | $— | $(446,042) |
| Cash, cash equivalents and restricted cash: | ||||
| Cash, cash equivalents and restricted cash, beginning of period | $1,078,205 | $947,014 | $— | $2,025,219 |
| Net decrease in cash, cash equivalents and restricted cash | (56,407) | (389,635) | — | (446,042) |
| Cash, cash equivalents and restricted cash, end of period | $1,021,798 | $557,379 | $— | $1,579,177 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.