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Supplemental Consolidating Data (Tables) | 12 Months Ended
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Dec. 31, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
Operations | All supplemental data is presented in thousands.
|  | Year Ended December 31, 2014
|  | Motorcycles & Related Products Operations |  | Financial Services Operations |  | Eliminations |  | Consolidated
Revenue: |  |  |  |  |  |  |  |
Motorcycles and Related Products |  | $ | 5,577,697 |  |  | $ | — |  |  | $ | (10,016 | ) |  | $ | 5,567,681 |
Financial Services |  | — |  |  | 662,345 |  |  | (1,518 | ) |  | 660,827 |
Total revenue |  | 5,577,697 |  |  | 662,345 |  |  | (11,534 | ) |  | 6,228,508 |
Costs and expenses: |  |  |  |  |  |  |  |
Motorcycles and Related Products cost of goods sold |  | 3,542,601 |  |  | — |  |  | — |  |  | 3,542,601 |
Financial Services interest expense |  | — |  |  | 164,476 |  |  | — |  |  | 164,476 |
Financial Services provision for credit losses |  | — |  |  | 80,946 |  |  | — |  |  | 80,946 |
Selling, administrative and engineering expense |  | 1,023,450 |  |  | 147,586 |  |  | (11,534 | ) |  | 1,159,502 |
Total costs and expenses |  | 4,566,051 |  |  | 393,008 |  |  | (11,534 | ) |  | 4,947,525 |
Operating income |  | 1,011,646 |  |  | 269,337 |  |  | — |  |  | 1,280,983 |
Investment income |  | 126,499 |  |  | — |  |  | (120,000 | ) |  | 6,499 |
Interest expense |  | 4,162 |  |  | — |  |  | — |  |  | 4,162 |
Income before provision for income taxes |  | 1,133,983 |  |  | 269,337 |  |  | (120,000 | ) |  | 1,283,320 |
Provision for income taxes |  | 338,453 |  |  | 100,256 |  |  | — |  |  | 438,709 |
Net income |  | $ | 795,530 |  |  | $ | 169,081 |  |  | $ | (120,000 | ) |  | $ | 844,611 |
|  | Year Ended December 31, 2013
|  | Motorcycles & Related Products Operations |  | Financial Services Operations |  | Eliminations |  | Consolidated
Revenue: |  |  |  |  |  |  |  |
Motorcycles and Related Products |  | $ | 5,268,480 |  |  | $ | — |  |  | $ | (10,190 | ) |  | $ | 5,258,290 |
Financial Services |  | — |  |  | 643,067 |  |  | (1,485 | ) |  | 641,582 |
Total revenue |  | 5,268,480 |  |  | 643,067 |  |  | (11,675 | ) |  | 5,899,872 |
Costs and expenses: |  |  |  |  |  |  |  |
Motorcycles and Related Products cost of goods sold |  | 3,395,918 |  |  | — |  |  | — |  |  | 3,395,918 |
Financial Services interest expense |  | — |  |  | 165,491 |  |  | — |  |  | 165,491 |
Financial Services provision for credit losses |  | — |  |  | 60,008 |  |  | — |  |  | 60,008 |
Selling, administrative and engineering expense |  | 995,378 |  |  | 143,181 |  |  | (11,675 | ) |  | 1,126,884 |
Restructuring benefit |  | (2,131 | ) |  | — |  |  | — |  |  | (2,131 | )
Total costs and expenses |  | 4,389,165 |  |  | 368,680 |  |  | (11,675 | ) |  | 4,746,170 |
Operating income |  | 879,315 |  |  | 274,387 |  |  | — |  |  | 1,153,702 |
Investment income |  | 190,859 |  |  | — |  |  | (185,000 | ) |  | 5,859 |
Interest expense |  | 45,256 |  |  | — |  |  | — |  |  | 45,256 |
Income before provision for income taxes |  | 1,024,918 |  |  | 274,387 |  |  | (185,000 | ) |  | 1,114,305 |
Provision for income taxes |  | 279,841 |  |  | 100,471 |  |  | — |  |  | 380,312 |
Net income |  | $ | 745,077 |  |  | $ | 173,916 |  |  | $ | (185,000 | ) |  | $ | 733,993 |
|  | Year Ended December 31, 2012
|  | Motorcycles & Related Products Operations |  | Financial Services Operations |  | Eliminations |  | Consolidated
Revenue: |  |  |  |  |  |  |  |
Motorcycles and Related Products |  | $ | 4,952,748 |  |  | $ | — |  |  | $ | (10,166 | ) |  | $ | 4,942,582 |
Financial Services |  | — |  |  | 639,482 |  |  | (1,558 | ) |  | 637,924 |
Total revenue |  | 4,952,748 |  |  | 639,482 |  |  | (11,724 | ) |  | 5,580,506 |
Costs and expenses: |  |  |  |  |  |  |  |
Motorcycles and Related Products cost of goods sold |  | 3,222,394 |  |  | — |  |  | — |  |  | 3,222,394 |
Financial Services interest expense |  | — |  |  | 195,990 |  |  | — |  |  | 195,990 |
Financial Services provision for credit losses |  | — |  |  | 22,239 |  |  | — |  |  | 22,239 |
Selling, administrative and engineering expense |  | 977,782 |  |  | 145,174 |  |  | (11,724 | ) |  | 1,111,232 |
Restructuring expense |  | 28,475 |  |  | — |  |  | — |  |  | 28,475 |
Total costs and expenses |  | 4,228,651 |  |  | 363,403 |  |  | (11,724 | ) |  | 4,580,330 |
Operating income |  | 724,097 |  |  | 276,079 |  |  | — |  |  | 1,000,176 |
Investment income |  | 232,369 |  |  | — |  |  | (225,000 | ) |  | 7,369 |
Interest expense |  | 46,033 |  |  | — |  |  | — |  |  | 46,033 |
Income before provision for income taxes |  | 910,433 |  |  | 276,079 |  |  | (225,000 | ) |  | 961,512 |
Provision for income taxes |  | 233,385 |  |  | 104,202 |  |  | — |  |  | 337,587 |
Net income |  | $ | 677,048 |  |  | $ | 171,877 |  |  | $ | (225,000 | ) |  | $ | 623,925 |
Balance Sheet |
|  | December 31, 2014
|  | Motorcycles & Related Products Operations |  | Financial Services Operations |  | Eliminations |  | Consolidated
ASSETS |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 573,895 |  |  | $ | 332,785 |  |  | $ | — |  |  | $ | 906,680 |
Marketable securities |  | 57,325 |  |  | — |  |  | — |  |  | 57,325 |
Accounts receivable, net |  | 658,735 |  |  | — |  |  | (411,114 | ) |  | 247,621 |
Finance receivables, net |  | — |  |  | 1,916,635 |  |  | — |  |  | 1,916,635 |
Inventories |  | 448,871 |  |  | — |  |  | — |  |  | 448,871 |
Restricted cash |  | — |  |  | 98,627 |  |  | — |  |  | 98,627 |
Deferred income taxes |  | 50,015 |  |  | 39,901 |  |  | — |  |  | 89,916 |
Other current assets |  | 142,278 |  |  | 43,125 |  |  | (2,983 | ) |  | 182,420 |
Total current assets |  | 1,931,119 |  |  | 2,431,073 |  |  | (414,097 | ) |  | 3,948,095 |
Finance receivables, net |  | — |  |  | 4,516,246 |  |  | — |  |  | 4,516,246 |
Property, plant and equipment, net |  | 848,661 |  |  | 34,416 |  |  | — |  |  | 883,077 |
Goodwill |  | 27,752 |  |  | — |  |  | — |  |  | 27,752 |
Deferred income taxes |  | 75,121 |  |  | 4,863 |  |  | (2,149 | ) |  | 77,835 |
Other long-term assets |  | 113,727 |  |  | 39,309 |  |  | (77,944 | ) |  | 75,092 |
|  | $ | 2,996,380 |  |  | $ | 7,025,907 |  |  | $ | (494,190 | ) |  | $ | 9,528,097 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | $ | 171,098 |  |  | $ | 436,884 |  |  | $ | (411,114 | ) |  | $ | 196,868 |
Accrued liabilities |  | 370,652 |  |  | 83,797 |  |  | (5,132 | ) |  | 449,317 |
Short-term debt |  | — |  |  | 731,786 |  |  | — |  |  | 731,786 |
Current portion of long-term debt |  | — |  |  | 1,011,315 |  |  | — |  |  | 1,011,315 |
Total current liabilities |  | 541,750 |  |  | 2,263,782 |  |  | (416,246 | ) |  | 2,389,286 |
Long-term debt |  | — |  |  | 3,761,528 |  |  | — |  |  | 3,761,528 |
Pension liability |  | 76,186 |  |  | — |  |  | — |  |  | 76,186 |
Postretirement healthcare liability |  | 203,006 |  |  | — |  |  | — |  |  | 203,006 |
Other long-term liabilities |  | 164,060 |  |  | 24,745 |  |  | — |  |  | 188,805 |
Commitments and contingencies (Note 15) |  |  |  |  |  |  |  |
Total shareholders’ equity |  | 2,011,378 |  |  | 975,852 |  |  | (77,944 | ) |  | 2,909,286 |
|  | $ | 2,996,380 |  |  | $ | 7,025,907 |  |  | $ | (494,190 | ) |  | $ | 9,528,097 |
|  | December 31, 2013
|  | Motorcycles & Related Products Operations |  | Financial Services Operations |  | Eliminations |  | Consolidated
ASSETS |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 718,912 |  |  | $ | 347,700 |  |  | $ | — |  |  | $ | 1,066,612 |
Marketable securities |  | 99,009 |  |  | — |  |  | — |  |  | 99,009 |
Accounts receivable, net |  | 850,248 |  |  | — |  |  | (589,183 | ) |  | 261,065 |
Finance receivables, net |  | — |  |  | 1,773,686 |  |  | — |  |  | 1,773,686 |
Inventories |  | 424,507 |  |  | — |  |  | — |  |  | 424,507 |
Restricted cash |  | — |  |  | 144,807 |  |  | — |  |  | 144,807 |
Deferred income taxes |  | 70,557 |  |  | 33,068 |  |  | — |  |  | 103,625 |
Other current assets |  | 82,717 |  |  | 34,573 |  |  | (1,798 | ) |  | 115,492 |
Total current assets |  | 2,245,950 |  |  | 2,333,834 |  |  | (590,981 | ) |  | 3,988,803 |
Finance receivables, net |  | — |  |  | 4,225,877 |  |  | — |  |  | 4,225,877 |
Property, plant and equipment, net |  | 808,005 |  |  | 34,472 |  |  | — |  |  | 842,477 |
Prepaid pension costs |  | 244,871 |  |  | — |  |  | — |  |  | 244,871 |
Goodwill |  | 30,452 |  |  | — |  |  | — |  |  | 30,452 |
Deferred income taxes |  | 3,339 |  |  | — |  |  | — |  |  | 3,339 |
Other long-term assets |  | 126,940 |  |  | 17,360 |  |  | (75,079 | ) |  | 69,221 |
|  | $ | 3,459,557 |  |  | $ | 6,611,543 |  |  | $ | (666,060 | ) |  | $ | 9,405,040 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | $ | 203,786 |  |  | $ | 625,191 |  |  | $ | (589,183 | ) |  | $ | 239,794 |
Accrued liabilities |  | 353,618 |  |  | 77,774 |  |  | (4,057 | ) |  | 427,335 |
Short-term debt |  | — |  |  | 666,317 |  |  | — |  |  | 666,317 |
Current portion of long-term debt |  | 303,000 |  |  | 873,140 |  |  | — |  |  | 1,176,140 |
Total current liabilities |  | 860,404 |  |  | 2,242,422 |  |  | (593,240 | ) |  | 2,509,586 |
Long-term debt |  | — |  |  | 3,416,713 |  |  | — |  |  | 3,416,713 |
Pension liability |  | 36,371 |  |  | — |  |  | — |  |  | 36,371 |
Postretirement healthcare liability |  | 216,165 |  |  | — |  |  | — |  |  | 216,165 |
Deferred income taxes |  | 44,584 |  |  | 2,656 |  |  | 2,259 |  |  | 49,499 |
Other long-term liabilities |  | 146,686 |  |  | 20,534 |  |  | — |  |  | 167,220 |
Commitments and contingencies (Note 15) |  |  |  |  |  |  |  |
Total shareholders’ equity |  | 2,155,347 |  |  | 929,218 |  |  | (75,079 | ) |  | 3,009,486 |
|  | $ | 3,459,557 |  |  | $ | 6,611,543 |  |  | $ | (666,060 | ) |  | $ | 9,405,040 |
Cash Flows |
|  | Year Ended December 31, 2014
|  | Motorcycles & Related Products Operations |  | Financial Services Operations |  | Eliminations & Adjustments |  | Consolidated
Cash flows from operating activities: |  |  |  |  |  |  |  |
Net income |  | $ | 795,530 |  |  | $ | 169,081 |  |  | $ | (120,000 | ) |  | $ | 844,611 |
Adjustments to reconcile net income to cash provided by operating activities: |  |  |  |  |  |  |  |
Depreciation |  | 171,187 |  |  | 8,113 |  |  | — |  |  | 179,300 |
Amortization of deferred loan origination costs |  | — |  |  | 94,429 |  |  | — |  |  | 94,429 |
Amortization of financing origination fees |  | 59 |  |  | 8,383 |  |  | — |  |  | 8,442 |
Provision for employee long-term benefits |  | 33,709 |  |  | — |  |  | — |  |  | 33,709 |
Contributions to pension and postretirement plans |  | (29,686 | ) |  | — |  |  | — |  |  | (29,686 | )
Stock compensation expense |  | 35,064 |  |  | 2,865 |  |  | — |  |  | 37,929 |
Net change in wholesale finance receivables |  | — |  |  | — |  |  | (75,210 | ) |  | (75,210 | )
Provision for credit losses |  | — |  |  | 80,946 |  |  | — |  |  | 80,946 |
Loss on debt extinguishment |  | — |  |  | 3,942 |  |  | — |  |  | 3,942 |
Deferred income taxes |  | (191 | ) |  | (7,430 | ) |  | — |  |  | (7,621 | )
Foreign currency adjustments |  | 21,964 |  |  | — |  |  | — |  |  | 21,964 |
Other, net |  | 20,273 |  |  | (21,764 | ) |  | — |  |  | (1,491 | )
Change in current assets and current liabilities: |  |  |  |  |  |  |  |
Accounts receivable |  | (31,740 | ) |  | — |  |  | 21,931 |  |  | (9,809 | )
Finance receivables—accrued interest and other |  | — |  |  | (2,515 | ) |  | — |  |  | (2,515 | )
Inventories |  | (50,886 | ) |  | — |  |  | — |  |  | (50,886 | )
Accounts payable and accrued liabilities |  | 16,074 |  |  | 21,629 |  |  | (18,575 | ) |  | 19,128 |
Restructuring reserves |  | 2,181 |  |  | — |  |  | — |  |  | 2,181 |
Derivative instruments |  | 703 |  |  | — |  |  | — |  |  | 703 |
Prepaid and other |  | (17,187 | ) |  | 13,798 |  |  | — |  |  | (3,389 | )
Total adjustments |  | 171,524 |  |  | 202,396 |  |  | (71,854 | ) |  | 302,066 |
Net cash provided by operating activities |  | 967,054 |  |  | 371,477 |  |  | (191,854 | ) |  | 1,146,677 |
Cash flows from investing activities: |  |  |  |  |  |  |  |
Capital expenditures |  | (224,262 | ) |  | (8,057 | ) |  | — |  |  | (232,319 | )
Origination of finance receivables |  | — |  |  | (7,693,884 | ) |  | 4,125,461 |  |  | (3,568,423 | )
Collections of finance receivables |  | — |  |  | 7,066,852 |  |  | (4,053,607 | ) |  | 3,013,245 |
Sales and redemptions of marketable securities |  | 41,010 |  |  | — |  |  | — |  |  | 41,010 |
Other |  | 1,837 |  |  | — |  |  | — |  |  | 1,837 |
Net cash used by investing activities |  | (181,415 | ) |  | (635,089 | ) |  | 71,854 |  |  | (744,650 | )
|  | Year Ended December 31, 2014
|  | Motorcycles & Related Products Operations |  | Financial Services Operations |  | Eliminations & Adjustments |  | Consolidated
Cash flows from financing activities: |  |  |  |  |  |  |  |
Proceeds from issuance of medium-term notes |  | — |  |  | 991,835 |  |  | — |  |  | 991,835 |
Repayments of medium-term notes |  | — |  |  | (526,431 | ) |  | — |  |  | (526,431 | )
Repayment of senior unsecured notes |  | (303,000 | ) |  | — |  |  | — |  |  | (303,000 | )
Intercompany borrowing activity |  | 200,000 |  |  | (200,000 | ) |  | — |  |  | — |
Proceeds from securitization debt |  | — |  |  | 847,126 |  |  | — |  |  | 847,126 |
Repayments of securitization debt |  | — |  |  | (834,856 | ) |  | — |  |  | (834,856 | )
Borrowings of asset-backed commercial paper |  | — |  |  | 84,907 |  |  | — |  |  | 84,907 |
Repayments of asset-backed commercial paper |  | — |  |  | (77,800 | ) |  | — |  |  | (77,800 | )
Net increase in credit facilities and unsecured commercial paper |  | — |  |  | 63,945 |  |  | — |  |  | 63,945 |
Net change in restricted cash |  | — |  |  | 22,755 |  |  | — |  |  | 22,755 |
Dividends |  | (238,300 | ) |  | (120,000 | ) |  | 120,000 |  |  | (238,300 | )
Purchase of common stock for treasury |  | (615,602 | ) |  | — |  |  | — |  |  | (615,602 | )
Excess tax benefits from share-based payments |  | 11,540 |  |  | — |  |  | — |  |  | 11,540 |
Issuance of common stock under employee stock option plans |  | 37,785 |  |  | — |  |  | — |  |  | 37,785 |
Net cash (used by) provided by financing activities |  | (907,577 | ) |  | 251,481 |  |  | 120,000 |  |  | (536,096 | )
Effect of exchange rate changes on cash and cash equivalents |  | (23,079 | ) |  | (2,784 | ) |  | — |  |  | (25,863 | )
Net decrease in cash and cash equivalents |  | $ | (145,017 | ) |  | $ | (14,915 | ) |  | $ | — |  |  | $ | (159,932 | )
Cash and cash equivalents: |  |  |  |  |  |  |  |
Cash and cash equivalents—beginning of period |  | $ | 718,912 |  |  | $ | 347,700 |  |  | $ | — |  |  | $ | 1,066,612 |
Net decrease in cash and cash equivalents |  | (145,017 | ) |  | (14,915 | ) |  | — |  |  | (159,932 | )
Cash and cash equivalents—end of period |  | $ | 573,895 |  |  | $ | 332,785 |  |  | $ | — |  |  | $ | 906,680 |
|  | Year Ended December 31, 2013
|  | Motorcycles & Related Products Operations |  | Financial Services Operations |  | Eliminations & Adjustments |  | Consolidated
Cash flows from operating activities: |  |  |  |  |  |  |  |
Net income |  | $ | 745,077 |  |  | $ | 173,916 |  |  | $ | (185,000 | ) |  | $ | 733,993 |
Adjustments to reconcile net income to cash provided by operating activities: |  |  |  |  |  |  |  |
Depreciation |  | 160,181 |  |  | 6,891 |  |  | — |  |  | 167,072 |
Amortization of deferred loan origination costs |  | — |  |  | 86,181 |  |  | — |  |  | 86,181 |
Amortization of financing origination fees |  | 473 |  |  | 8,903 |  |  | — |  |  | 9,376 |
Provision for employee long-term benefits |  | 66,877 |  |  | — |  |  | — |  |  | 66,877 |
Contributions to pension and postretirement plans |  | (204,796 | ) |  | — |  |  | — |  |  | (204,796 | )
Stock compensation expense |  | 38,367 |  |  | 2,877 |  |  | — |  |  | 41,244 |
Net change in wholesale finance receivables |  | — |  |  | — |  |  | 28,865 |  |  | 28,865 |
Provision for credit losses |  | — |  |  | 60,008 |  |  | — |  |  | 60,008 |
Loss on debt extinguishment |  | — |  |  | 4,947 |  |  | — |  |  | 4,947 |
Deferred income taxes |  | 54,568 |  |  | (1,988 | ) |  | — |  |  | 52,580 |
Foreign currency adjustments |  | 16,269 |  |  | — |  |  | — |  |  | 16,269 |
Other, net |  | 10,942 |  |  | (819 | ) |  | — |  |  | 10,123 |
Change in current assets and current liabilities: |  |  |  |  |  |  |  |
Accounts receivable |  | (24,273 | ) |  | — |  |  | (12,380 | ) |  | (36,653 | )
Finance receivables – accrued interest and other |  | — |  |  | (346 | ) |  | — |  |  | (346 | )
Inventories |  | (46,474 | ) |  | — |  |  | — |  |  | (46,474 | )
Accounts payable and accrued liabilities |  | (60,907 | ) |  | (5,096 | ) |  | 12,380 |  |  | (53,623 | )
Restructuring reserves |  | (25,042 | ) |  | — |  |  | — |  |  | (25,042 | )
Derivative instruments |  | (2,161 | ) |  | (28 | ) |  | — |  |  | (2,189 | )
Prepaid and other |  | 70,900 |  |  | (2,219 | ) |  | — |  |  | 68,681 |
Total adjustments |  | 54,924 |  |  | 159,311 |  |  | 28,865 |  |  | 243,100 |
Net cash provided by operating activities |  | 800,001 |  |  | 333,227 |  |  | (156,135 | ) |  | 977,093 |
Cash flows from investing activities: |  |  |  |  |  |  |  |
Capital expenditures |  | (199,354 | ) |  | (8,967 | ) |  | — |  |  | (208,321 | )
Origination of finance receivables |  | — |  |  | (7,140,533 | ) |  | 3,896,528 |  |  | (3,244,005 | )
Collections of finance receivables |  | — |  |  | 6,757,387 |  |  | (3,925,393 | ) |  | 2,831,994 |
Purchases of marketable securities |  | (4,998 | ) |  | — |  |  | — |  |  | (4,998 | )
Sales and redemptions of marketable securities |  | 40,108 |  |  | — |  |  | — |  |  | 40,108 |
Other |  | 16,355 |  |  | — |  |  | — |  |  | 16,355 |
Net cash used by investing activities |  | (147,889 | ) |  | (392,113 | ) |  | (28,865 | ) |  | (568,867 | )
|  | Year Ended December 31, 2013
|  | Motorcycles & Related Products Operations |  | Financial Services Operations |  | Eliminations & Adjustments |  | Consolidated
Cash flows from financing activities: |  |  |  |  |  |  |  |
Repayments of medium-term notes |  | — |  |  | (27,858 | ) |  | — |  |  | (27,858 | )
Intercompany borrowing activity |  | (50,000 | ) |  | 50,000 |  |  | — |  |  | — |
Proceeds from securitization debt |  | — |  |  | 647,516 |  |  | — |  |  | 647,516 |
Repayments of securitization debt |  | — |  |  | (840,387 | ) |  | — |  |  | (840,387 | )
Borrowings of asset-backed commercial paper |  | — |  |  | 88,456 |  |  | — |  |  | 88,456 |
Net increase in credit facilities and unsecured commercial paper |  | — |  |  | 371,085 |  |  | — |  |  | 371,085 |
Repayments of asset-backed commercial paper |  | — |  |  | (78,765 | ) |  | — |  |  | (78,765 | )
Net change in restricted cash |  | — |  |  | 43,201 |  |  | — |  |  | 43,201 |
Dividends paid |  | (187,688 | ) |  | (185,000 | ) |  | 185,000 |  |  | (187,688 | )
Purchase of common stock for treasury, net of issuances |  | (479,231 | ) |  | — |  |  | — |  |  | (479,231 | )
Excess tax benefits from share based payments |  | 19,895 |  |  | — |  |  | — |  |  | 19,895 |
Issuance of common stock under employee stock option plans |  | 50,567 |  |  | — |  |  | — |  |  | 50,567 |
Net cash (used by) provided by financing activities |  | (646,457 | ) |  | 68,248 |  |  | 185,000 |  |  | (393,209 | )
Effect of exchange rate changes on cash and cash equivalents |  | (14,459 | ) |  | (2,084 | ) |  | — |  |  | (16,543 | )
Net (decrease) increase in cash and cash equivalents |  | $ | (8,804 | ) |  | $ | 7,278 |  |  | $ | — |  |  | $ | (1,526 | )
Cash and cash equivalents: |  |  |  |  |  |  |  |
Cash and cash equivalents – beginning of period |  | $ | 727,716 |  |  | $ | 340,422 |  |  | $ | — |  |  | $ | 1,068,138 |
Net (decrease) increase in cash and cash equivalents |  | (8,804 | ) |  | 7,278 |  |  | — |  |  | (1,526 | )
Cash and cash equivalents – end of period |  | $ | 718,912 |  |  | $ | 347,700 |  |  | $ | — |  |  | $ | 1,066,612 |
|  | Year Ended December 31, 2012
|  | Motorcycles & Related Products Operations |  | Financial Services Operations |  | Eliminations & Adjustments |  | Consolidated
Cash flows from operating activities: |  |  |  |  |  |  |  |
Net income |  | $ | 677,048 |  |  | $ | 171,877 |  |  | $ | (225,000 | ) |  | $ | 623,925 |
Adjustments to reconcile net income to cash provided by operating activities: |  |  |  |  |  |  |  |
Depreciation |  | 162,659 |  |  | 6,319 |  |  | — |  |  | 168,978 |
Amortization of deferred loan origination costs |  | — |  |  | 78,592 |  |  | — |  |  | 78,592 |
Amortization of financing origination fees |  | 473 |  |  | 9,496 |  |  | — |  |  | 9,969 |
Provision for employee long-term benefits |  | 67,612 |  |  | 3,735 |  |  | — |  |  | 71,347 |
Contributions to pension and postretirement plans |  | (244,416 | ) |  | — |  |  | — |  |  | (244,416 | )
Stock compensation expense |  | 37,544 |  |  | 3,271 |  |  | — |  |  | 40,815 |
Net change in wholesale finance receivables |  | — |  |  | — |  |  | 2,513 |  |  | 2,513 |
Provision for credit losses |  | — |  |  | 22,239 |  |  | — |  |  | 22,239 |
Loss on debt extinguishment |  | — |  |  | 4,323 |  |  | — |  |  | 4,323 |
Pension and postretirement healthcare plan curtailment and settlement expense |  | 6,242 |  |  | — |  |  | — |  |  | 6,242 |
Deferred income taxes |  | 117,772 |  |  | 10,680 |  |  | — |  |  | 128,452 |
Foreign currency adjustments |  | 9,773 |  |  | — |  |  | — |  |  | 9,773 |
Other, net |  | (2,290 | ) |  | (4,926 | ) |  | — |  |  | (7,216 | )
|  | Year Ended December 31, 2012
|  | Motorcycles & Related Products Operations |  | Financial Services Operations |  | Eliminations & Adjustments |  | Consolidated
Change in current assets and current liabilities: |  |  |  |  |  |  |  |
Accounts receivable |  | 9,323 |  |  | — |  |  | (23,013 | ) |  | (13,690 | )
Finance receivables – accrued interest and other |  | — |  |  | (4 | ) |  | — |  |  | (4 | )
Inventories |  | 21,459 |  |  | — |  |  | — |  |  | 21,459 |
Accounts payable and accrued liabilities |  | (6,368 | ) |  | (27,443 | ) |  | 23,013 |  |  | (10,798 | )
Restructuring reserves |  | (16,087 | ) |  | — |  |  | — |  |  | (16,087 | )
Derivative instruments |  | 2,906 |  |  | (148 | ) |  | — |  |  | 2,758 |
Prepaid and other |  | (95,162 | ) |  | (2,554 | ) |  | — |  |  | (97,716 | )
Total adjustments |  | 71,440 |  |  | 103,580 |  |  | 2,513 |  |  | 177,533 |
Net cash provided by operating activities |  | 748,488 |  |  | 275,457 |  |  | (222,487 | ) |  | 801,458 |
Cash flows from investing activities: |  |  |  |  |  |  |  |
Capital expenditures |  | (180,416 | ) |  | (8,586 | ) |  | — |  |  | (189,002 | )
Origination of finance receivables |  | — |  |  | (6,544,828 | ) |  | 3,686,127 |  |  | (2,858,701 | )
Collections of finance receivables |  | — |  |  | 6,456,729 |  |  | (3,688,640 | ) |  | 2,768,089 |
Purchases of marketable securities |  | (4,993 | ) |  | — |  |  | — |  |  | (4,993 | )
Sales and redemptions of marketable securities |  | 23,296 |  |  | — |  |  | — |  |  | 23,296 |
Net cash used by investing activities |  | (162,113 | ) |  | (96,685 | ) |  | (2,513 | ) |  | (261,311 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |
Proceeds from issuance of medium-term notes |  | — |  |  | 993,737 |  |  | — |  |  | 993,737 |
Repayment of medium-term notes |  | — |  |  | (420,870 | ) |  | — |  |  | (420,870 | )
Intercompany borrowing activity |  | (400,000 | ) |  | 400,000 |  |  | — |  |  | — |
Proceeds from securitization debt |  | — |  |  | 763,895 |  |  | — |  |  | 763,895 |
Repayments of securitization debt |  | — |  |  | (1,405,599 | ) |  | — |  |  | (1,405,599 | )
Borrowings of asset-backed commercial paper |  | — |  |  | 200,417 |  |  | — |  |  | 200,417 |
Net decrease in credit facilities and unsecured commercial paper |  | — |  |  | (744,724 | ) |  | — |  |  | (744,724 | )
Repayments of asset-backed commercial paper |  | — |  |  | (24,301 | ) |  | — |  |  | (24,301 | )
Net change in restricted cash |  | — |  |  | 41,647 |  |  | — |  |  | 41,647 |
Dividends paid |  | (141,681 | ) |  | (225,000 | ) |  | 225,000 |  |  | (141,681 | )
Purchase of common stock for treasury, net of issuances |  | (311,632 | ) |  | — |  |  | — |  |  | (311,632 | )
Excess tax benefits from share based payments |  | 13,065 |  |  | — |  |  | — |  |  | 13,065 |
Issuance of common stock under employee stock option plans |  | 45,973 |  |  | — |  |  | — |  |  | 45,973 |
Net cash used by financing activities |  | (794,275 | ) |  | (420,798 | ) |  | 225,000 |  |  | (990,073 | )
Effect of exchange rate changes on cash and cash equivalents |  | (7,714 | ) |  | (1,172 | ) |  | — |  |  | (8,886 | )
Net decrease in cash and cash equivalents |  | $ | (215,614 | ) |  | $ | (243,198 | ) |  | $ | — |  |  | $ | (458,812 | )
Cash and cash equivalents: |  |  |  |  |  |  |  |
Cash and cash equivalents – beginning of period |  | $ | 943,330 |  |  | $ | 583,620 |  |  | $ | — |  |  | $ | 1,526,950 |
Net decrease in cash and cash equivalents |  | (215,614 | ) |  | (243,198 | ) |  | — |  |  | (458,812 | )
Cash and cash equivalents – end of period |  | $ | 727,716 |  |  | $ | 340,422 |  |  | $ | — |  |  | $ | 1,068,138 |

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