XML 30 R19.htm IDEA: XBRL DOCUMENT
v3.23.1

Fair Value | 3 Months Ended
--- | ---
Mar. 31, 2023
Fair Value Disclosures [Abstract] |
Fair Value | Fair Value The following tables present the fair values of certain of the Company's assets and liabilities within the fair value hierarchy as defined in Note 1. Recurring Fair Value Measurements – The Company’s assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):
| March 31, 2023
| Balance |  | Level 1 |  | Level 2 |  |
Assets: |  |  |  |  |  |  |
Cash equivalents | $ | 1,030,696 |  |  | $ | 858,000 |  |  | $ | 172,696 |  |  |
Marketable securities | 34,017 |  |  | 34,017 |  |  | — |  |  |
Derivative financial instruments | 4,647 |  |  | — |  |  | 4,647 |  |  |
| $ | 1,069,360 |  |  | $ | 892,017 |  |  | $ | 177,343 |  |  |
Liabilities: |  |  |  |  |  |  |
Derivative financial instruments | $ | 50,218 |  |  | $ | — |  |  | $ | 50,218 |  |  |
LiveWire warrants | 7,320 |  |  | 4,800 |  |  | 2,520 |  |  |
| $ | 57,538 |  |  | $ | 4,800 |  |  | $ | 52,738 |  |  |
| December 31, 2022
| Balance |  | Level 1 |  | Level 2 |  |
Assets: |  |  |  |  |  |  |
Cash equivalents | $ | 805,629 |  |  | $ | 594,000 |  |  | $ | 211,629 |  |  |
Marketable securities | 33,071 |  |  | 33,071 |  |  | — |  |  |
Derivative financial instruments | 8,737 |  |  | — |  |  | 8,737 |  |  |
| $ | 847,437 |  |  | $ | 627,071 |  |  | $ | 220,366 |  |  |
Liabilities: |  |  |  |  |  |  |
Derivative financial instruments | $ | 50,261 |  |  | $ | — |  |  | $ | 50,261 |  |  |
LiveWire warrants | 8,388 |  |  | 5,500 |  |  | 2,888 |  |  |
| $ | 58,649 |  |  | $ | 5,500 |  |  | $ | 53,149 |  |  |
| March 27, 2022
| Balance |  | Level 1 |  | Level 2 |  |
Assets: |  |  |  |  |  |  |
Cash equivalents | $ | 968,395 |  |  | $ | 803,400 |  |  | $ | 164,995 |  |  |
Marketable securities | 45,189 |  |  | 45,189 |  |  | — |  |  |
Derivative financial instruments | 43,065 |  |  | — |  |  | 43,065 |  |  |
| $ | 1,056,649 |  |  | $ | 848,589 |  |  | $ | 208,060 |  |  |
Liabilities: |  |  |  |  |  |  |
Derivative financial instruments | $ | 4,298 |  |  | $ | — |  |  | $ | 4,298 |  |  |
LiveWire warrants | — |  |  | $ | — |  |  | $ | — |  |  |
| $ | 4,298 |  |  | $ | — |  |  | $ | 4,298 |  |  |
Nonrecurring Fair Value Measurements – Repossessed inventory is recorded at the lower of cost or net realizable value through a nonrecurring fair value measurement. Repossessed inventory was $24.9 million, $20.7 million and 17.9 million as of March 31, 2023, December 31, 2022 and March 27, 2022, respectively, for which the fair value adjustment was a decrease of $6.8 million, $7.5 million and $0.6 million, respectively. Fair value is estimated using Level 2 inputs based on the recent market values of repossessed inventory. Fair Value of Financial Instruments Measured at Cost – The carrying value of the Company's Cash and cash equivalents and Restricted cash approximates their fair values. The fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost were as follows (in thousands):
| March 31, 2023 |  | December 31, 2022 |  | March 27, 2022
| Fair Value |  | Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value |  | Carrying Value
Assets: |  |  |  |  |  |  |  |  |  |  |
Finance receivables, net | $ | 7,611,579 |  |  | $ | 7,573,723 |  |  | $ | 7,248,353 |  |  | $ | 7,138,438 |  |  | $ | 6,920,395 |  |  | $ | 6,821,553 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |
Deposits, net | $ | 391,238 |  |  | $ | 369,311 |  |  | $ | 339,981 |  |  | $ | 317,375 |  |  | $ | 359,995 |  |  | $ | 348,083 |
Debt: |  |  |  |  |  |  |  |  |  |  |
Unsecured commercial paper | $ | 501,243 |  |  | $ | 501,243 |  |  | $ | 770,468 |  |  | $ | 770,468 |  |  | $ | 816,016 |  |  | $ | 816,016 |
Asset-backed U.S. commercial paper conduit facility | $ | 372,816 |  |  | $ | 372,816 |  |  | $ | 425,794 |  |  | $ | 425,794 |  |  | $ | 269,534 |  |  | $ | 269,534 |
Asset-backed Canadian commercial paper conduit facility | $ | 62,195 |  |  | $ | 62,195 |  |  | $ | 71,785 |  |  | $ | 71,785 |  |  | $ | 95,664 |  |  | $ | 95,664 |
Asset-backed securitization debt | $ | 2,240,966 |  |  | $ | 2,257,799 |  |  | $ | 1,996,550 |  |  | $ | 2,019,414 |  |  | $ | 1,343,706 |  |  | $ | 1,357,558 |
Medium-term notes | $ | 3,153,175 |  |  | $ | 3,245,591 |  |  | $ | 2,760,093 |  |  | $ | 2,879,473 |  |  | $ | 3,326,310 |  |  | $ | 3,329,845 |
Senior notes | $ | 665,665 |  |  | $ | 745,545 |  |  | $ | 661,630 |  |  | $ | 745,368 |  |  | $ | 724,089 |  |  | $ | 744,842 |
Finance Receivables, net – The carrying value of retail and wholesale finance receivables is amortized cost less an allowance for credit losses. The fair value of retail finance receivables is generally calculated by discounting future cash flows using an estimated discount rate that reflects current credit, interest rate and prepayment risks associated with similar types of instruments. Fair value is determined based on Level 3 inputs. The amortized cost basis of wholesale finance receivables approximates fair value because they are generally either short-term or have interest rates that adjust with changes in market interest rates. Deposits, net – The carrying value of deposits is amortized cost, net of fees. The fair value of deposits is estimated based upon rates currently available for deposits with similar terms and maturities. Fair value is calculated using Level 3 inputs. Debt – The carrying value of debt is generally cost, net of unamortized discounts and debt issuance costs. The fair value of unsecured commercial paper is calculated using Level 2 inputs and approximates carrying value due to its short maturity. The fair value of debt provided under the U.S. Conduit Facility and the Canadian Conduit Facility is calculated using Level 2 inputs and approximates carrying value since the interest rates charged under the facilities are tied directly to market rates and fluctuate as market rates change. The fair values of the medium-term notes and senior notes are estimated based upon rates currently available for debt with similar terms and remaining maturities (Level 2 inputs). The fair value of the fixed-rate debt related to on-balance sheet asset-backed securitization transactions is estimated based on pricing currently available for transactions with similar terms and maturities (Level 2 inputs). The fair value of the floating-rate debt related to on-balance sheet asset-backed securitization transactions is calculated using Level 2 inputs and approximates carrying value since the interest rates charged are tied directly to market rates and fluctuate as market rates change.

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

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration