XML 44 R15.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Additional Balance Sheet and Cash Flow Information | 12 Months Ended
--- | ---
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Additional Balance Sheet and Cash Flow Information | Additional Balance Sheet and Cash Flow Information Investments in marketable securities consisted of the following at December 31, (in thousands):
| 2021 |  | 2020
Mutual funds | $ | 49,650 |  |  | $ | 52,061 |
Mutual funds, included in Other long-term assets on the Consolidated balance sheets, are carried at fair value with gains and losses recorded in income. Mutual funds are held to support certain deferred compensation obligations. Inventories, net consisted of the following as of December 31, (in thousands):
| 2021 |  | 2020
Raw materials and work in process | $ | 347,915 |  |  | $ | 211,979 |
Motorcycle finished goods | 345,956 |  |  | 281,132 |
Parts and accessories and apparel | 103,191 |  |  | 84,469 |
Inventory at lower of FIFO cost or net realizable value | 797,062 |  |  | 577,580 |
Excess of FIFO over LIFO cost | (84,120) |  |  | (54,083) |
| $ | 712,942 |  |  | $ | 523,497 |
Inventory obsolescence reserves deducted from FIFO cost were $63.0 million and $72.0 million as of December 31, 2021 and 2020, respectively. Property, plant and equipment, net consisted of the following as of December 31, (in thousands):
| 2021 |  | 2020
Land and related improvements | $ | 71,549 |  |  | $ | 69,518 |
Buildings and related improvements | 405,160 |  |  | 428,171 |
Machinery and equipment | 1,614,177 |  |  | 1,577,337 |
Software | 750,490 |  |  | 759,675 |
Construction in progress | 113,615 |  |  | 188,823 |
| 2,954,991 |  |  | 3,023,524 |
Accumulated depreciation | (2,271,007) |  |  | (2,279,740) |
| $ | 683,984 |  |  | $ | 743,784 |
Software, net of accumulated amortization, included in Property, plant and equipment, net, was $79.8 million and $100.7 million as of December 31, 2021 and 2020, respectively. Accrued liabilities consisted of the following as of December 31, (in thousands):
| 2021 |  | 2020
Payroll, employee benefits and related expenses | $ | 159,474 |  |  | $ | 107,511 |
Sales incentive programs | 42,980 |  |  | 52,820 |
Warranty and recalls | 39,635 |  |  | 44,415 |
Interest | 54,001 |  |  | 65,590 |
Tax-related accruals | 34,279 |  |  | 24,238 |
Deferred revenue | 18,293 |  |  | 18,070 |
Leases | 17,369 |  |  | 17,081 |
Fair value of derivative financial instruments | 2,361 |  |  | 25,521 |
Restructuring | 2,995 |  |  | 23,920 |
Other | 230,594 |  |  | 178,048 |
| $ | 601,981 |  |  | $ | 557,214 |
Deposits – Beginning in 2020, Harley-Davidson Financial Services began offering brokered certificates of deposit to customers indirectly through contractual arrangements with third-party banks and/or securities brokerage firms through its bank subsidiary. The Company had $290.3 million and $80.0 million, net of fees, of interest-bearing brokered certificates of deposit outstanding as of December 31, 2021 and December 31, 2020, respectively. As of December 31, 2021, the liabilities for deposits are included in Short-term deposits, net or Long-term deposits, net on the Consolidated balance sheets based upon the term of each brokered certificate of deposit issued. As of December 31, 2020, all deposits were classified as short-term. Each separate brokered certificate of deposit is issued under a master certificate, and as such, all outstanding brokered certificates of deposit are considered below the Federal Deposit Insurance Corporation insurance coverage limits. Future maturities of the Company's certificates of deposit as of December 31, 2021 were as follows (in thousands):
2022 | $ | 72,475 |
2023 | 74,304 |
2024 | 64,696 |
2025 | — |
2026 | 79,742 |
Thereafter | — |
Unamortized fees | (891) |
| $ | 290,326 |
Operating Cash Flow – The reconciliation of Net income to Net cash provided by operating activities for the years ended December 31, was as follows (in thousands):
| 2021 |  | 2020 |  | 2019
Cash flows from operating activities: |  |  |  |  |
Net income | $ | 650,024 |  |  | $ | 1,298 |  |  | $ | 423,635 |
Adjustments to reconcile Net income to Net cash provided by operating activities: |  |  |  |  |
Depreciation and amortization | 165,185 |  |  | 185,715 |  |  | 232,537 |
Amortization of deferred loan origination costs | 86,115 |  |  | 71,142 |  |  | 76,326 |
Amortization of financing origination fees | 13,810 |  |  | 14,435 |  |  | 9,823 |
Provision for long-term employee benefits | 8,317 |  |  | 40,833 |  |  | 13,344 |
Employee benefit plan contributions and payments | (17,133) |  |  | (20,722) |  |  | (13,256) |
Stock compensation expense | 42,156 |  |  | 23,494 |  |  | 33,733 |
Net change in wholesale finance receivables related to sales | 89,001 |  |  | 531,701 |  |  | (5,822) |
Provision for credit losses | 25,049 |  |  | 181,870 |  |  | 134,536 |
Deferred income taxes | (7,672) |  |  | (44,079) |  |  | 21,547 |
Other, net | (9,985) |  |  | 10,345 |  |  | 2,234 |
Changes in current assets and liabilities: |  |  |  |  |
Accounts receivable, net | (53,463) |  |  | 127,657 |  |  | 44,902 |
Finance receivables – accrued interest and other | 13,316 |  |  | 7,418 |  |  | (11,119) |
Inventories, net | (207,550) |  |  | 80,858 |  |  | (47,576) |
Accounts payable and accrued liabilities | 173,548 |  |  | (43,087) |  |  | (18,462) |
Other current assets | 4,983 |  |  | 9,012 |  |  | (28,110) |
| 325,677 |  |  | 1,176,592 |  |  | 444,637 |
Net cash provided by operating activities | $ | 975,701 |  |  | $ | 1,177,890 |  |  | $ | 868,272 |
Cash paid during the years ended December 31, for interest and income taxes was as follows (in thousands):
| 2021 |  | 2020 |  | 2019
Interest | $ | 191,663 |  |  | $ | 245,961 |  |  | $ | 229,678 |
Income taxes | $ | 155,579 |  |  | $ | 30,675 |  |  | $ | 149,828 |
Interest paid represents interest payments of Harley-Davidson Financial Services and interest payments of the Company, included in Financial Services interest expense and Interest expense on the Consolidated statements of operations.

X
- Definition The entire disclosures of supplemental information, including descriptions and amounts, related to the balance sheet, income statement, and/or cash flow statement. + References No definition available. + Details
Name: | us-gaap_AdditionalFinancialInformationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration