Additional Balance Sheet and Cash Flow Information

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Additional Balance Sheet and Cash Flow Information

Investments in Marketable Securities – The Company’s investments in marketable securities consisted of the following (in thousands):


	June 30, 2024		December 31, 2023		June 30, 2023

Mutual funds	$	34,392	$	34,079	$	35,175

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 – Substantially all inventories located in the U.S. are valued using the last-in, first-out (LIFO) method. Other inventories are valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Motorcycle finished goods inventories include motorcycles that are ready for sale and motorcycles that are substantially complete but awaiting installation of certain components. Inventories, net consisted of the following (in thousands):


	June 30, 2024		December 31, 2023		June 30, 2023
Raw materials and work in process	$	297,580	$	389,221	$	406,560
Motorcycle finished goods	368,692		514,964		391,528
Parts and accessories and apparel	133,477		150,844		171,367
Inventory at lower of FIFO cost or net realizable value	799,749		1,055,029		969,455
Excess of FIFO over LIFO cost	(130,825)		(125,078)		(123,422)
	$	668,924	$	929,951	$	846,033

Deposits – HDFS offers 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 $504.1 million, $447.8 million, and $439.9 million, net of fees, of interest-bearing brokered certificates of deposit outstanding as of June 30, 2024, December 31, 2023, and June 30, 2023, respectively. 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. 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 June 30, 2024 were as follows (in thousands):


2024	$	85,312
2025	133,492
2026	187,779
2027	98,578
Thereafter	—
Future maturities	505,161
Unamortized fees	(1,068)
	$	504,093

Operating Cash Flow – The reconciliation of Net income to Net cash provided by operating activities was as follows (in thousands):


	Six months ended
	June 30, 2024		June 30, 2023
Cash flows from operating activities:
Net income	$	447,639	$	475,659
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	80,376		72,225
Amortization of deferred loan origination costs	36,466		44,393
Amortization of financing origination fees	6,793		6,508
Provision for long-term employee benefits	(26,143)		(33,656)
Employee benefit plan contributions and payments	(2,593)		(2,882)
Stock compensation expense	28,995		44,413
Net change in wholesale finance receivables related to sales	(388,030)		(267,942)
Provision for credit losses	117,040		109,642



Deferred income taxes	146		(4,251)

Other, net	14,965		(31,160)
Changes in current assets and liabilities:
Accounts receivable, net	(65,927)		(79,531)
Finance receivables – accrued interest and other	2,759		3,189
Inventories, net	235,539		94,636
Accounts payable and accrued liabilities	64,166		(16,047)

Other current assets	25,451		(4,676)
	130,003		(65,139)
Net cash provided by operating activities	$	577,642	$	410,520