Harley-Davidson Files Q2 2024 10-Q

Ticker: HOG · Form: 10-Q · Filed: 2024-08-07T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, quarterly-report, financials

Related Tickers: HOG

TL;DR

HOG Q2 10-Q is in. Financials and biz updates out.

AI Summary

Harley-Davidson, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter. Key financial figures and business segment information are presented, reflecting the company's ongoing activities in the motorcycle and related products market.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational performance of Harley-Davidson, crucial for understanding its market position and future prospects.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the automotive/motorcycle industry can be subject to economic downturns and changing consumer preferences.

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The Conformed Period of Report is 20240630, indicating the filing covers the period ending June 30, 2024.

When was this 10-Q filed with the SEC?

This filing was made on 20240807.

What is Harley-Davidson's Standard Industrial Classification code?

Harley-Davidson's SIC code is 3751, categorized under MOTORCYCLES, BICYCLES & PARTS.

What is the company's state of incorporation?

Harley-Davidson, Inc. is incorporated in Wisconsin (WI).

What is the fiscal year end for Harley-Davidson?

The company's fiscal year ends on December 31 (1231).

Filing Stats: 4,576 words · 18 min read · ~15 pages · Grade level 14 · Accepted 2024-08-07 12:54:33

Filing Documents

Financial Information

Part I Financial Information 3

Financial Statements

Item 1. Financial Statements 3 Consolidated Statements of Operations 3 Consolidated Statements of Comprehensive Income 4 Consolidated Balance Sheets 5 Consolidated Statements of Cash Flows 7 Consolidated Statements of Shareholders' Equity 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 1. Basis of Presentation and Use of Estimates 9 2. New Accounting Standards 9 3. Revenue 10 4. Income Taxes 11 5. Earnings Per Share 12 6. Additional Balance Sheet and Cash Flow Information 12 7. Finance Receivables 13 8. Derivative Financial Instruments and Hedging Activities 19 9. Debt 23 10. Asset-Backed Financing 24 11. Fair Value 27 12. Product Warranty and Recall Campaigns 28 13. Employee Benefit Plans 29 14. Commitments and Contingencies 30 15. Accumulated Other Comprehensive Loss 31 16. Reportable Segments 33 17. Supplemental Consolidating Data 33

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 42

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 64

Controls and Procedures

Item 4. Controls and Procedures 65

Other Information

Part II Other Information 65

Legal Proceedings

Item 1. Legal Proceedings 65

Risk Factors

Item 1A. Risk Factors 65

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 66

Other Information

Item 5. Other Information 66

Exhibits

Item 6. Exhibits 66

Signatures

Signatures 68 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements HARLEY-DAVIDSON, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Revenue: Motorcycles and related products $ 1,355,354 $ 1,205,162 $ 2,836,164 $ 2,770,753 Financial services 263,539 240,361 512,336 463,456 1,618,893 1,445,523 3,348,500 3,234,209 Costs and expenses: Motorcycles and related products cost of goods sold 924,012 790,628 1,947,693 1,797,929 Financial services interest expense 93,741 86,005 182,480 159,554 Financial services provision for credit losses 56,030 57,278 117,040 109,642 Selling, administrative and engineering expense 304,008 290,274 597,105 576,137 1,377,791 1,224,185 2,844,318 2,643,262 Operating income 241,102 221,338 504,182 590,947 Other income, net 15,879 7,226 36,443 27,322 Investment income 14,811 11,151 29,215 21,176 Interest expense 7,680 7,696 15,359 15,416 Income before income taxes 264,112 232,019 554,481 624,029 Income tax provision 48,706 58,189 106,842 148,370 Net income 215,406 173,830 447,639 475,659 Less: Loss attributable to noncontrolling interests 2,863 4,209 5,571 6,470 Net income attributable to Harley-Davidson, Inc. $ 218,269 $ 178,039 $ 453,210 $ 482,129 Earnings per share: Basic $ 1.64 $ 1.24 $ 3.36 $ 3.33 Diluted $ 1.63 $ 1.22 $ 3.34 $ 3.27 Cash dividends per share $ 0.1725 $ 0.1650 $ 0.3450 $ 0.3300 The accompanying notes are integral to the consolidated financial statements. 3 Table of Contents HARLEY-DAVIDSON, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (Unaudited) Three months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net income $ 215,406 $ 173,830 $ 447,639 $ 475,659 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments ( 6,895 ) ( 19,637 ) ( 38,189 ) ( 9,516 ) Derivative financial instruments 2,403 19,1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Basis of Presentation and Use of Estimates Principles of Consolidation and Basis of Presentation – The consolidated financial statements include the accounts of Harley-Davidson, Inc. and its subsidiaries and certain variable interest entities (VIEs) related to secured financing as the Company is the primary beneficiary. All intercompany accounts and material intercompany transactions have been eliminated. The Company has a controlling equity interest in LiveWire Group, Inc. As the controlling shareholder, the Company consolidates LiveWire Group, Inc. results with additional adjustments to recognize non-controlling shareholder interests. The Company operates in three reportable segments: Harley-Davidson Motor Company (HDMC), LiveWire and Harley-Davidson Financial Services (HDFS). Substantially all of the Company's international subsidiaries use their respective local currency as their functional currency. Assets and liabilities of international subsidiaries have been translated at period-end exchange rates, and revenues and expenses have been translated using average exchange rates for the period. Monetary assets and liabilities denominated in a currency that is different from an entity's functional currency are remeasured from the transactional currency to the entity's functional currency on a monthly basis. The aggregate transaction gain (loss) resulting from foreign currency remeasurements was $( 3.8 ) million and $ 1.1 million for the three month periods ended June 30, 2024 and June 30, 2023, respectively, and $( 6.7 ) million and $ 4.5 million for the six month periods ended June 30, 2024 and June 30, 2023, respectively. In the opinion of the Company's management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Consolidated balance sheets as of June 30, 2024 and June 30, 2023, the

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