Harley-Davidson Announces Fourth Quarter, Full-Year 2019 Results

MILWAUKEE, January 28, 2020 -
Harley-Davidson, Inc. (NYSE:HOG) today reported fourth quarter and full-year 2019 results. Fourth quarter earnings per share (EPS) was up year-over-year and overall performance in the quarter and full-year was in line with company expectations. The company advanced its More Roads to Harley-Davidson plan and is on-track to realize its expectation of significant growth in 2021.

2019 Highlights and Results

Delivered fourth quarter GAAP diluted EPS of $0.09; up year-over-year
Advanced More Roads plan, on-track for significant 2021 growth
Increased focus on rider commitment; in the U.S., 527,000 riders joined in 2019, up year-over-year1 
Tempered worldwide year-over-year retail sales rate of decline
Completed steps to mitigate the majority of recent EU and China tariff impacts in 2020
Completed key milestones of the manufacturing optimization initiative and exceeded expected full-year savings
Repurchased $286.7 million of shares; increased dividends 1.4 percent versus prior year to $1.50 per share

Fourth quarter 2019 GAAP diluted EPS was $0.09. Year-ago GAAP diluted EPS was $0.00. Excluding restructuring plan costs and the impact of recent EU and China tariffs, adjusted fourth quarter 2019 diluted EPS was $0.20 compared to $0.17 in the fourth quarter of 2018. Fourth quarter 2019 net income was $13.5 million on consolidated revenue of $1.07 billion versus net income of $0.5 million on consolidated revenue of $1.15 billion in the fourth quarter of 2018.
Full-year 2019 GAAP diluted EPS was $2.68. Year-ago GAAP diluted EPS was $3.19. Excluding restructuring plan costs and the impact of recent EU and China tariffs, adjusted 2019 diluted EPS was $3.36 compared to $3.78 in 2018. Full-year 2019 net income was $423.6 million on consolidated revenue of $5.36 billion versus net income of $531.5 million on consolidated revenue of $5.72 billion in 2018.
“Our performance in Q4 and the full year was in line with our expectations and indicative of increased business stability driven by the tremendous efforts of our employees and dealers,” said Matt Levatich, president and chief executive officer of Harley-Davidson. “In 2019, we took important steps toward returning to significant growth in 2021 - including launching LiveWire, our first electric motorcycle, optimizing our global dealer network and expanding our international footprint,” said Levatich.

Strategy to Build Riders; Accelerated plan for growth

Harley-Davidson’s strategy to build the next generation of Harley-Davidson riders globally is supported by these strategic objectives from 2017 through 2027: expand to 4 million total Harley-Davidson riders in the U.S., grow international business to 50 percent of annual Harley-Davidson Motor Company (HDMC) revenue, launch 100 new high impact motorcycles, deliver superior return on invested capital for HDMC (S&P 500 top 25%) and grow its business without growing its environmental impact.

More Roads to Harley-Davidson is the company’s accelerated plan for growth that aims to deliver sustainable growth and build committed riders from 2018 through 2022. The company is focusing investment and building new capabilities to invigorate the Harley-Davidson brand to spark passion that deepens rider commitment. The company’s More Roads plan leverages and integrates new products, broader access, stronger dealers and amplifying the brand as catalysts to ignite and sustain momentum and deliver growth.

The company plans to maintain its targeted investment and return profile and capital allocation strategy, while it funds strategic opportunities expected to drive significant revenue growth and expand operating margin starting in 2021.

In 2019, Harley-Davidson continued to advance its More Roads plan initiatives, including:

Asserted its leadership in the electrification of motorcycles with the launch of LiveWire™, the company’s first electric motorcycle, and IRONe™, an electric-powered two-wheeler for kids
Launched new high impact models and delivered significant technology to its class-leading model year 2020 motorcycles to inspire new and existing riders
Commissioned Thailand manufacturing facility and established a China distribution center, increasing customer access with more competitive prices
Improved and expanded global ecommerce and digital capabilities
Advanced good-to-great dealers - meeting its customer experience and sales conversion targets

1



Honed and accelerated efforts to amplify brand and build committed riders; more riders joined Harley-Davidson in the U.S. in 2019 compared to 2018 and the total pool of Harley-Davidson riders in the U.S. grew to 3.1 million in 20191 

“We see 2020 as the pivotal year in the transformation of Harley-Davidson. This year we will broaden the reach of our brand and build more committed riders as we enter new and growing segments in motorcycling and eBicycles; more and easier access to two-wheeled freedom on a Harley is well underway,” said Levatich.

Manufacturing Optimization

Harley-Davidson exceeded full-year expected savings from its manufacturing optimization initiative, realizing savings of $32.2 million, ahead of its estimate of $25 million to $30 million and incurred costs of $43.0 million in 2019. Aiming to further improve its manufacturing operations and cost structure, the company initiated efforts in the first quarter of 2018 including closing its wheel manufacturing facility in Australia and consolidating its motorcycle assembly plant in Kansas City, Mo. into its plant in York, Pa. The company continues to expect annual ongoing cash savings of $65 million to $75 million starting in 2021.

Harley-Davidson Retail Motorcycle Sales

Vehicles
4th Quarter
Full-Year
2019
2018
Change
2019
2018
Change
U.S.
 20,204
20,849
(3.1)%
 125,960
132,868
(5.2)%
EMEA
 7,187
7,353
(2.3)%
 44,086
46,602
(5.4)%
Asia Pacific
 7,691
7,244
6.2 %
29,513
28,724
2.7 %
Latin America
 2,513
2,515
(0.1)%
 9,768
10,167
(3.9)%
Canada
1,159
1,350
(14.1)%
 8,946
9,690
(7.7)%
International Total
 18,550
18,462
0.5 %
92,313
95,183
(3.0)%
Worldwide Total
38,754
39,311
(1.4)%
218,273
228,051
(4.3)%

U.S. retail sales rate declines continued to temper. The year-over-year retail sales rate of decline in the fourth quarter was the lowest in 12 quarters and the full-year retail sales rate of decline was the lowest since 2016. Fourth quarter 601+cc U.S. market share was up 1.0 percentage points, to 50.4 percent and full-year market share was 49.1 percent, down slightly versus 2018.

International retail sales were up slightly in the fourth quarter behind continued growth in emerging markets. Full-year international retail sales finished down 3.0 percent. Harley-Davidson’s full-year 601+cc Europe market share was 8.9 percent.

Motorcycles and Related Products Segment Results

$ in thousands
4th Quarter
Full-Year
2019
2018
Change
2019
2018
Change
Motorcycle Shipments (vehicles)
 40,454
 43,489
(7.0)%
 213,939
 228,665
(6.4)%
Revenue
$874,095
$955,633
(8.5)%
$4,572,678
$4,968,646
(8.0)%
   Motorcycles
$666,287
$738,167
(9.7)%
$3,538,269
$3,882,963
(8.9)%
   Parts & Accessories
$129,266
$142,168
(9.1)%
$713,400
$754,663
(5.5)%
   General Merchandise
$57,187
$58,444
(2.2)%
$237,566
$241,964
(1.8)%
Gross Margin
25.2%
27.6%
(2.3) pts.
29.4%
32.5%
(3.2) pts.
Operating (Loss) Income
($46,460)
($59,543)
22.0%
$289,620
$422,363
(31.4)%
Operating Margin
(5.3)%
(6.2)%
0.9 pts.
6.3%
8.5%
(2.2) pts.

Revenue from the Motorcycles and Related Products (Motorcycles) segment was down in the fourth quarter and on a full-year basis. Full-year operating income decreased primarily due to lower revenues and increased tariff costs, partially offset by lower SG&A and restructuring expense.

Financial Services Segment Results


2



$ in thousands
4th Quarter
Full-Year
2019
2018
Change
2019
2018
Change
Revenue
$198,176
$190,229
4.2%
$789,111
$748,229
5.5 %
Operating Income
$58,855
$63,286
(7.0)%
$265,988
$291,160
(8.6)%

Financial Services segment full-year operating income of $266.0 million was down 8.6 percent.

Other Results

Cash and marketable securities were $833.9 million at the end of the year, compared to $1.21 billion at the end of 2018. Harley-Davidson generated $868.3 million of cash from operating activities in 2019 compared to $1.21 billion in 2018. The company paid a cash dividend of $0.375 per share in the fourth quarter, and a cumulative total of $1.50 per share on a full-year basis. On a discretionary basis, Harley-Davidson repurchased 2.2 million shares of its common stock during the quarter for $78.7 million, and 8.2 million shares for $286.7 million on a full-year basis. During the quarter, there were 154.9 million weighted-average diluted common shares outstanding. At the end of the quarter, 8.2 million shares remained on a board-approved share repurchase authorization.

Harley-Davidson's full-year effective tax rate was 24.0 percent.

2020 Outlook    

For the full-year 2020, the company expects the following:
Motorcycles segment revenue of approximately $4.53 to $4.66 billion. In the first quarter, the company expects Motorcycles segment revenue of approximately 1.09 to 1.17 billion
Motorcycles segment operating margin as a percent of revenue of approximately 7 to 8 percent
Financial Services segment operating income approximately flat year-over-year
Effective tax rate of approximately 24 to 25 percent
Capital expenditures of approximately $215 million to $235 million

1 Data and analysis based on IHS Markit Motorcycles in Operation (MIO) data for On-highway and Dual purpose bikes in the U.S. Snapshot based on data as of Dec. 31, 2019 compared to Dec. 31, 2018.

Company Background

Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Since 1903, Harley-Davidson has fulfilled dreams of personal freedom with an expanding range of leading-edge, distinctive and customizable motorcycles in addition to riding experiences and exceptional motorcycle accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get Harley-Davidson riders on the road. Learn more about how Harley-Davidson is Building the Next Generation of Riders at www.harley-davidson.com.

Webcast Presentation

Harley-Davidson will discuss fourth quarter and full-year 2019 results and its outlook on an audio webcast at 8:00 a.m. CT today. The webcast login and supporting slides can be accessed at http://investor.harley-davidson.com/news-and-events/events-and-presentations. The audio replay will be available by approximately 10:00 a.m. CT.

Non-GAAP Measures

This press release includes financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP) and are therefore referred to as non-GAAP financial measures. The non-GAAP measures described below are intended to be considered by users as supplemental information to the equivalent GAAP measures, to aid investors in better understanding the company’s financial results. The company believes that these non-GAAP measures provide useful perspective on underlying business results and trends, and a means to assess period-over-period results. These non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP measures may not be the same as similarly titled measures used by other companies due to possible differences in method and in items or events being adjusted.

3



The non-GAAP measures included in this press release are adjusted net income and adjusted diluted EPS excluding restructuring plan costs and the impact of recent EU and China tariffs. Restructuring plan costs include restructuring expenses as presented in the consolidated statements of income and costs associated with temporary inefficiencies incurred in connection with the manufacturing optimization initiative included in Motorcycles and Related Products cost of goods sold. The impact of recent EU and China tariffs includes incremental European Union and China tariffs imposed beginning in 2018 on the company's products shipped from the U.S., as well as incremental U.S. tariffs imposed beginning in 2018 on certain items imported from China. The impact of recent EU and China tariffs excludes higher metals cost resulting from the U.S. steel and aluminum tariffs. These adjustments are consistent with the approach used for 2018 to determine performance relative to financial objectives under the company’s incentive compensation plans. A reconciliation of these non-GAAP measures from the comparable GAAP measure is included later in this press release.
Forward-Looking Statements
 
The company intends that certain matters discussed in this release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the company "believes," "anticipates," "expects," "plans," “may,” “will,” "estimates," “is on-track” or words of similar meaning. Similarly, statements that describe or refer to future expectations, future plans, strategies, objectives, outlooks, targets, guidance, commitments, or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably or favorably, from those anticipated as of the date of this release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and the company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

The company's ability to meet the targets and expectations noted above depends upon, among other factors, the company's ability to (i) execute its business plans and strategies, including the elements of the More Roads to Harley-Davidson accelerated plan for growth that the company disclosed on July 30, 2018 and updated September 24, 2019, and strengthen its existing business while enabling growth, (ii) manage and predict the impact that new or adjusted tariffs may have on the company’s ability to sell product internationally, and the cost of raw materials and components, (iii) execute its strategy of growing ridership, globally, (iv) successfully carry out its global manufacturing and assembly operations, (v) accurately analyze, predict and react to changing market conditions and successfully adjust to shifting global consumer needs and interests, (vi) successfully launch a smaller displacement motorcycle in India, (vii) develop and introduce products, services and experiences on a timely basis that the market accepts, that enable the company to generate desired sales levels and that provide the desired financial returns, (viii) perform in a manner that enables the company to benefit from market opportunities while competing against existing and new competitors, (ix) realize expectations concerning market demand for electric models, which will depend in part on the building of necessary infrastructure, (x) prevent, detect, and remediate any issues with its motorcycles or any issues associated with the manufacturing processes to avoid delays in new model launches, recall campaigns, regulatory agency investigations, increased warranty costs or litigation and adverse effects on its reputation and brand strength, and carry out any product programs or recalls within expected costs and timing, (xi) manage supply chain issues, including quality issues and any unexpected interruptions or price increases caused by raw material shortages or natural disasters, (xii) manage the impact that prices for and supply of used motorcycles may have on its business, including on retail sales of new motorcycles, (xiii) reduce other costs to offset costs of the More Roads to Harley-Davidson plan and redirect capital without adversely affecting its existing business, (xiv) balance production volumes for its new motorcycles with consumer demand, (xv) manage risks that arise through expanding international manufacturing, operations and sales, (xvi) manage through changes in general economic and business conditions, including changing capital, credit and retail markets, and the changing political environment, (xvii) successfully determine, implement on a timely basis, and maintain a manner in which to sell motorcycles in the European Union, China, and ASEAN countries that does not subject its motorcycles to incremental tariffs, (xviii) accurately estimate and adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices, (xix) continue to develop the capabilities of its distributors and dealers, effectively implement changes relating to its dealers and distribution methods and manage the risks that its independent dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand, (xx) retain and attract talented employees, (xxi) prevent a cybersecurity breach involving consumer, employee, dealer, supplier, or company data and respond to evolving regulatory requirements regarding data security, (xxii) manage the credit quality, the loan servicing and collection activities, and the recovery rates of HDFS' loan portfolio, (xxiii) adjust to tax reform, healthcare inflation and reform and pension reform, and successfully estimate the impact of any such reform on the company's business, (xxiv) manage through the effects inconsistent and unpredictable weather patterns may have on retail sales of motorcycles, (xxv) implement and manage enterprise-wide information technology systems, including systems at its manufacturing facilities, (xxvi) manage changes and prepare for requirements in legislative

4



and regulatory environments for its products, services and operations, (xxvii) manage its exposure to product liability claims and commercial or contractual disputes, (xxviii) successfully access the capital and/or credit markets on terms (including interest rates) that are acceptable to the company and within its expectations, (xxix) manage its Thailand corporate and manufacturing operation in a manner that allows the company to avail itself of preferential free trade agreements and duty rates, and sufficiently lower prices of its motorcycles in certain markets, (xxx) continue to manage the relationships and agreements that the company has with its labor unions to help drive long-term competitiveness, (xxxi) accurately predict the margins of its Motorcycles & Related Products segment in light of, among other things, tariffs, the cost associated with the More Roads to Harley-Davidson plan, the company’s manufacturing optimization plan, and the company’s complex global supply chain, and (xxxii) develop and maintain a productive relationship with Zhejiang Qianjiang Motorcycle Co., Ltd. and launch related products in a timely manner.

The company could experience delays or disruptions in its operations as a result of work stoppages, strikes, natural causes, terrorism, or other factors. Other factors are described in risk factors that the company has disclosed in documents previously filed with the Securities and Exchange Commission. Many of these risk factors are impacted by the current changing capital, credit and retail markets and the company's ability to manage through inconsistent economic conditions.

The company's ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the company's independent dealers to sell its motorcycles and related products and services to retail customers. The company depends on the capability and financial capacity of its independent dealers to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the company. In addition, the company's independent dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions or other factors. In recent years, HDFS has experienced historically low levels of retail credit losses, but there is no assurance that this will continue. The company believes that HDFS' retail credit losses may increase over time due to changing consumer credit behavior and HDFS' efforts to increase prudently structured loan approvals to sub-prime borrowers, as well as actions that the company has taken and could take that impact motorcycle values. Refer to "Risk Factors" under Item 1A of the company's Annual Report on Form 10-K for the year ended December 31, 2018, for a discussion of additional risk factors and a more complete discussion of some of the cautionary statements noted above.

Media Contact:
Jenni Coats
jenni.coats@Harley-Davidson.com
414.343.7902

Financial Contact:
Shannon Burns
shannon.burns@Harley-Davidson.com
414.343.8002

### (HOG-F)





5



Harley-Davidson, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
 
 
Three months ended
 
Twelve months ended
 
December 31,
2019
 
December 31,
2018
 
December 31,
2019
 
December 31,
2018
Motorcycles and Related Products revenue
$
874,095

 
$
955,633

 
$
4,572,678

 
$
4,968,646

Gross profit
220,639

 
263,577

 
1,342,880

 
1,616,850

Selling, administrative and engineering expense
266,428

 
303,763

 
1,020,907

 
1,101,086

Restructuring expense
671

 
19,357

 
32,353

 
93,401

Operating (loss) income from Motorcycles and Related Products
(46,460
)
 
(59,543
)
 
289,620

 
422,363

 
 
 
 
 
 
 
 
Financial Services revenue
198,176

 
190,229

 
789,111

 
748,229

Financial Services expense
139,321

 
126,943

 
523,123

 
457,069

Operating income from Financial Services
58,855

 
63,286

 
265,988

 
291,160

 
 
 
 
 
 
 
 
Operating income
12,395

 
3,743

 
555,608

 
713,523

Other income (expense), net
4,657

 
1,530

 
16,514

 
3,039

Investment income (loss)
4,401

 
(1,679
)
 
16,371

 
951

Interest expense
7,774

 
7,704

 
31,078

 
30,884

Income (loss) before income taxes
13,679

 
(4,110
)
 
557,415

 
686,629

Income tax provision (benefit)
183

 
(4,605
)
 
133,780

 
155,178

Net income
$
13,496

 
$
495

 
$
423,635

 
$
531,451

 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
Basic
$
0.09

 
$
0.00

 
$
2.70

 
$
3.21

Diluted
$
0.09

 
$
0.00

 
$
2.68

 
$
3.19

 
 
 
 
 
 
 
 
Weighted-average shares:
 
 
 
 
 
 
 
Basic
153,947

 
162,073

 
157,054

 
165,672

Diluted
154,913

 
163,014

 
157,804

 
166,504

 
 
 
 
 
 
 
 
Cash dividends per share:
$
0.375

 
$
0.370

 
$
1.500

 
$
1.480













Harley-Davidson, Inc.
Reconciliation of GAAP Amounts to Non-GAAP Amounts
(In thousands, except per share amounts)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
Three months ended
 
Twelve months ended
 
December 31,
2019
 
December 31,
2018
 
December 31,
2019
 
December 31,
2018
Net Income excluding restructuring plan costs and the impact of recent EU and China tariffs
 
 
 
 
 
 
 
Net income (GAAP)
$
13,496

 
$
495

 
$
423,635

 
$
531,451

Restructuring plan costs
973

 
22,944

 
42,688

 
106,314

Impact of recent EU and China tariffs
20,881

 
13,363

 
97,852

 
23,675

Tax effect of adjustments(1)
(4,568
)
 
(8,804
)
 
(33,729
)
 
(31,522
)
Adjustments, net of tax
17,286

 
27,503

 
106,811

 
98,467

Adjusted net income (non-GAAP)
$
30,782

 
$
27,998

 
$
530,446

 
$
629,918

 
 
 
 
 
 
 
 
Diluted EPS excluding restructuring plan costs and the impact of recent EU and China tariffs
 
 
 
 
 
 
 
Diluted EPS (GAAP)
$
0.09

 
$
0.00

 
$
2.68

 
$
3.19

Adjustments net of tax, per share
0.11

 
0.17

 
0.68

 
0.59

Adjusted diluted EPS (non-GAAP)
$
0.20

 
$
0.17

 
$
3.36

 
$
3.78

(1) The income tax effect of adjustments has been computed using the company's effective income tax rate





Harley-Davidson, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
 
(Unaudited)
 
 
 
December 31,
2019
 
December 31,
2018
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
833,868

 
$
1,203,766

Marketable securities

 
10,007

Accounts receivable, net
259,334

 
306,474

Finance receivables, net
2,272,522

 
2,214,424

Inventories, net
603,571

 
556,128

Restricted cash
64,554

 
49,275

Other current assets
168,974

 
144,368

 
4,202,823

 
4,484,442

Finance receivables, net
5,101,844

 
5,007,507

Other long-term assets
1,223,492

 
1,173,715

 
$
10,528,159

 
$
10,665,664

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable and accrued liabilities
$
876,668

 
$
885,991

Short-term debt
571,995

 
1,135,810

Current portion of long-term debt, net
1,748,109

 
1,575,799

 
3,196,772

 
3,597,600

Long-term debt, net
5,124,826

 
4,887,667

Pension and postretirement healthcare liabilities
128,651

 
202,229

Other long-term liabilities
273,911

 
204,219

 
 
 
 
Shareholders’ equity
1,803,999

 
1,773,949

 
$
10,528,159

 
$
10,665,664








Harley-Davidson, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
 
(Unaudited)
 
 
 
Twelve months ended
 
December 31,
2019
 
December 31,
2018
Net cash provided by operating activities
$
868,272

 
$
1,205,921

 
 
 
 
Cash flows from investing activities:
 
 
 
Capital expenditures
(181,440
)
 
(213,516
)
Finance receivables, net
(347,605
)
 
(427,148
)
Acquisition of business
(7,000
)
 

Other investing activities
27,919

 
(21,605
)
Net cash used by investing activities
(508,126
)
 
(662,269
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Proceeds from issuance of medium-term notes
1,203,236

 
1,591,828

Repayments of medium-term notes
(1,350,000
)
 
(877,488
)
Proceeds from securitization debt
1,021,453

 

Repayments of securitization debt
(353,251
)
 
(257,869
)
Net decrease in credit facilities and unsecured commercial paper
(563,453
)
 
(135,356
)
Borrowings of asset-backed commercial paper
177,950

 
509,742

Repayments of asset-backed commercial paper
(318,006
)
 
(212,729
)
Dividends paid
(237,221
)
 
(245,810
)
Repurchase of common stock
(296,520
)
 
(390,606
)
Issuance of common stock under employee stock option plans
3,589

 
3,525

Net cash used by financing activities
(712,223
)
 
(14,763
)
 
 
 
 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(2,305
)
 
(15,351
)
 
 
 
 
Net (decrease) increase in cash, cash equivalents and restricted cash
$
(354,382
)
 
$
513,538

 
 
 
 
Cash, cash equivalents and restricted cash:
 
 
 
Cash, cash equivalents and restricted cash, beginning of period
$
1,259,748

 
$
746,210

Net (decrease) increase in cash, cash equivalents and restricted cash
(354,382
)
 
513,538

Cash, cash equivalents and restricted cash, end of period
$
905,366

 
$
1,259,748

 
 
 
 
Reconciliation of cash, cash equivalents and restricted cash on the Consolidated balance sheets to the Consolidated statements of cash flows:
 
 
 
Cash and cash equivalents
$
833,868

 
$
1,203,766

Restricted cash
64,554

 
49,275

Restricted cash included in Other long-term assets
6,944

 
6,707

Cash, cash equivalents and restricted cash per the Consolidated statements of cash flows
$
905,366

 
$
1,259,748


Adoption of New Accounting Standards:
On January 1, 2019, the company adopted Accounting Standards Update 2016-02 Leases using the modified retrospective method. As a result, the company recognized a right-of-use lease asset of approximately $60 million and a corresponding lease liability.





Motorcycles and Related Products Revenue
and Motorcycle Shipment Data
(Revenue in thousands)

 
Three months ended
 
Twelve months ended
 
December 31,
2019
 
December 31,
2018
 
December 31,
2019
 
December 31,
2018
MOTORCYCLES AND RELATED PRODUCTS REVENUE
 
 
 
 
 
 
 
Motorcycles
$
666,287

 
$
738,167

 
$
3,538,269

 
$
3,882,963

Parts & Accessories
129,266

 
142,168

 
713,400

 
754,663

General Merchandise
57,187

 
58,444

 
237,566

 
241,964

Licensing
8,818

 
9,231

 
35,917

 
38,676

Other
12,537

 
7,623

 
47,526

 
50,380

 
$
874,095

 
$
955,633

 
$
4,572,678

 
$
4,968,646

MOTORCYCLE SHIPMENTS
 
 
 
 
 
 
 
United States
22,845

 
24,376

 
124,326

 
132,433

International
17,609

 
19,113

 
89,613

 
96,232

 
40,454

 
43,489

 
213,939

 
228,665

MOTORCYCLE PRODUCT MIX
 
 
 
 
 
 
 
Touring
15,147

 
17,817

 
91,018

 
101,942

Cruiser(1)
16,685

 
16,578

 
76,052

 
78,529

Sportster® / Street
8,622

 
9,094

 
46,869

 
48,194

 
40,454

 
43,489

 
213,939

 
228,665

(1) Includes Softail®, CVOTM, and LiveWireTM 






Worldwide Retail Sales of Harley-Davidson Motorcycles(1) 
 
Three months ended
 
Twelve months ended
 
December 31,
2019
 
December 31,
2018
 
December 31,
2019
 
December 31,
2018
United States
20,204

 
20,849

 
125,960

 
132,868

 
 
 
 
 
 
 
 
Europe(2)
6,115

 
6,212

 
38,441

 
41,179

EMEA - Other
1,072

 
1,141

 
5,645

 
5,423

Total EMEA
7,187

 
7,353

 
44,086

 
46,602

 
 
 
 
 
 
 
 
Asia Pacific(3)
4,534

 
4,303

 
17,753

 
18,429

Asia Pacific - Other
3,157

 
2,941

 
11,760

 
10,295

Total Asia Pacific
7,691

 
7,244

 
29,513

 
28,724

 
 
 
 
 
 
 
 
Latin America
2,513

 
2,515

 
9,768

 
10,167

Canada
1,159

 
1,350

 
8,946

 
9,690

Total international retail sales
18,550

 
18,462

 
92,313

 
95,183

Total worldwide retail sales
38,754

 
39,311

 
218,273

 
228,051

(1)  
Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson dealers and compiled by the company. The company must rely on information that its dealers supply concerning new retail sales, and the company does not regularly verify the information that its dealers supply. This information is subject to revision.
(2)  
Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom
(3) 
Asia Pacific data includes Japan, Australia, New Zealand and Korea
Motorcycle Registration Data(1) 
 
Twelve months ended
 
December 31,
2019
 
December 31,
2018
United States(2)
252,842

 
263,750

Europe(3)
425,998

 
397,669

(1) Data includes on-road models with internal combustion engines with displacements greater than 600cc's and in the United States electric motorcycles with kilowatt peak power equivalents greater than 600cc's (601+cc). On-road 601+cc models include dual purpose models, three-wheeled motorcycles and autocycles. Registration data for Harley-Davidson Street® 500 motorcycles is not included in this table.
(2) United States data is derived from information provided by Motorcycle Industry Council. This third-party data is subject to revision and update.
(3) Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. Industry retail motorcycle registration data includes 601+cc models derived from information provided by Association des Constructeurs Europeens de Motocycles, an independent agency. This third-party data is subject to revision and update.



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