Harley-Davidson, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Harley-Davidson, Inc. has filed its annual report detailing its 2023 financial performance and operations.</b>

AI Summary

HARLEY-DAVIDSON, INC. (HOG) filed a Annual Report (10-K) with the SEC on February 23, 2024. Harley-Davidson, Inc. filed its 2023 Form 10-K on February 23, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is manufacturing motorcycles, bicycles, and parts. Harley-Davidson, Inc. is incorporated in Wisconsin. The filing includes financial data for the fiscal years 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking HARLEY-DAVIDSON, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Harley-Davidson's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors and stakeholders to assess the company's performance and future outlook. The detailed financial statements and disclosures within the report are essential for understanding the company's revenue streams, profitability, debt levels, and overall market position in the motorcycle industry.

Risk Assessment

Risk Level: medium — HARLEY-DAVIDSON, INC. shows moderate risk based on this filing. The company operates in a cyclical industry sensitive to economic conditions and consumer discretionary spending, which can impact sales and profitability.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Harley-Davidson's performance and strategic direction for 2024.

Key Numbers

• 20231231 — CONFORMED PERIOD OF REPORT (Fiscal year end)
• 20240223 — FILED AS OF DATE (Filing date)
• 2023 — Fiscal Year (Reporting period)
• 2022 — Fiscal Year (Previous reporting period)
• 2021 — Fiscal Year (Prior reporting period)

Key Players & Entities

• HARLEY-DAVIDSON, INC. (company) — COMPANY CONFORMED NAME
• 0000793952 (company) — CENTRAL INDEX KEY
• 3751 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• WI (company) — STATE OF INCORPORATION
• 3700 W JUNEAU AVE (company) — BUSINESS ADDRESS STREET 1
• MILWAUKEE (company) — BUSINESS ADDRESS CITY
• 53208 (company) — BUSINESS ADDRESS ZIP
• 414-343-8553 (company) — BUSINESS PHONE

FAQ

Industry Context

Harley-Davidson operates in the motorcycle manufacturing industry, a sector influenced by consumer discretionary spending and global economic trends.

Regulatory Implications

The company is subject to various regulations related to manufacturing, emissions, and sales within the automotive and powersports industries.

What Investors Should Do

1. Review the consolidated financial statements for fiscal year 2023.
2. Analyze the Management's Discussion and Analysis of Financial Condition and Results of Operations.
3. Examine the Risk Factors section for potential challenges and uncertainties.

Key Dates

• 2024-02-23: 10-K Filing — Filing of the annual report for fiscal year 2023.

Year-Over-Year Comparison

This is the initial filing analyzed for the fiscal year 2023. Comparative data from previous filings will be available within the report itself.

Key Financial Figures

• $28.8 million — ending December 31, 2023, HDMC accrued $28.8 million associated with 13 voluntary recalls.

Filing Documents

• hog-20231231.htm (10-K) — 4356KB
• a2022ex10x42hdx2020planxre.htm (EX-10) — 40KB
• a2023ex10x56hdx2020planxpe.htm (EX-10) — 47KB
• hog-ex102212x31x2023.htm (EX-10) — 101KB
• hog-ex2112x31x2023.htm (EX-21) — 43KB
• hog-ex2312x31x2023.htm (EX-23) — 6KB
• hog-ex31112x31x2023.htm (EX-31) — 10KB
• hog-ex31212x31x2023.htm (EX-31) — 10KB
• hog-ex3212x31x2023.htm (EX-32) — 4KB
• hog-ex9712x31x2023.htm (EX-97) — 19KB
• hog-20231231_g1.jpg (GRAPHIC) — 87KB
• image.jpg (GRAPHIC) — 3KB
• image_0.jpg (GRAPHIC) — 19KB
• image_0a.jpg (GRAPHIC) — 19KB
• image_1.jpg (GRAPHIC) — 0KB
• image_1a.jpg (GRAPHIC) — 0KB
• image_2.jpg (GRAPHIC) — 3KB
• 0000793952-24-000076.txt (&nbsp;) — 23559KB
• hog-20231231.xsd (EX-101.SCH) — 101KB
• hog-20231231_cal.xml (EX-101.CAL) — 167KB
• hog-20231231_def.xml (EX-101.DEF) — 732KB
• hog-20231231_lab.xml (EX-101.LAB) — 1404KB
• hog-20231231_pre.xml (EX-101.PRE) — 1102KB
• hog-20231231_htm.xml (XML) — 5155KB

Business

Item 1. Business 3

Risk Factors

Item 1A. Risk Factors 13

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 26 Item 1C. Cybersecurity 26

Properties

Item 2. Properties 28

Legal Proceedings

Item 3. Legal Proceedings 28

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 28

29

Part II 29

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29

[Reserved]

Item 6. [Reserved] 30

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 30

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 53

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 55

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 114

Controls and Procedures

Item 9A. Controls and Procedures 114

Other information

Item 9B. Other information 115

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 115

115

Part III 115

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 115

Executive Compensation

Item 11. Executive Compensation 115

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 115

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 116

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 116

117

Part IV 117

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 117

Form 10-K Summary

Item 16. Form 10-K Summary 117

Signatures

Signatures 125 2 PART I (1) Note regarding forward-looking statements The Company intends that certain matters discussed in this report 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 by reference to this footnote or because the context of the statement will include words such as the Company "believes," "anticipates," "expects," "plans," "may," "will," "estimates," "targets," "intends," "forecasts," "sees," "feels," 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 report. Certain of such risks and uncertainties are described in close proximity to such statements or elsewhere in this report, including in Item 1A. Risk Factors and under the Cautionary Statements section in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations . Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included under the Overview and Guidance sections in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations are only made as of February 8, 2024, and the remaining forward-looking statements in this report are made as of the date of the filing of this report (February 23, 2024), and the Company disclaims any obligation to publicly update such forward-looking statements to

Business

Item 1. Business General Harley-Davidson was founded in 1903. Harley-Davidson, Inc. was incorporated in 1981, at which time it purchased the Harley-Davidson motorcycle business from AMF Incorporated in a management buyout. In 1986, Harley-Davidson, Inc. became publicly held. Unless the context otherwise requires, all references to the "Company" include Harley-Davidson, Inc. and all of its subsidiaries. The Company operates in three segments: Harley-Davidson Motor Company (HDMC), LiveWire, and Harley-Davidson Financial Services (HDFS). The Company's reportable segments, which are discussed in greater detail below, are strategic business units that offer different products and services and are managed separately based on the fundamental differences in their operations. Revenue by segment for the last three fiscal years was as follows (in thousands): 2023 2022 2021 HDMC $ 4,844,594 $ 4,887,672 $ 4,504,434 LiveWire 38,298 46,833 35,806 HDFS 953,586 820,625 796,068 $ 5,836,478 $ 5,755,130 $ 5,336,308 Strategy (1) The Hardwire is the Company's 2021-2025 strategic plan guided by its mission and vision, which the Company introduced on February 2, 2021. The plan targets long-term profitable growth through focused efforts that extend and strengthen the brand and drive value for its shareholders. The Company's ambition is to enhance its position as the most desirable motorcycle brand in the world. Desirability is a motivating force driven by emotion. Harley-Davidson has long been associated with igniting desirability, and it is embedded in its vision; it is at the heart of its mission and it is part of its 120-year legacy. To drive desirability, the Company will: Design, engineer and advance the most desirable motorcycles in the world - reflected in quality, innovation, and craftsmanship Build a lifestyle brand valued for the emotion reflected in every product and experience for riders and non-riders alike Focus on customers, delivering adventure and freedom for