v3.26.1
Additional Balance Sheet and Cash Flow Information
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Additional Balance Sheet and Cash Flow Information Additional Balance Sheet and Cash Flow Information
Investments in Marketable Securities – The Company’s investments in marketable securities consisted of the following (in thousands):
March 31,
2026		December 31,
2025		March 31,
2025
Mutual funds$30,434 $31,513 $30,496 
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):
March 31,
2026		December 31,
2025		March 31,
2025
Raw materials and work in process$303,163 $338,744 $318,169 
Motorcycle finished goods359,531 434,044 407,231 
Parts and accessories and apparel102,039 97,674 118,805 
Inventory at lower of FIFO cost or net realizable value764,733 870,462 844,205 
Excess of FIFO over LIFO cost(142,544)(139,564)(131,893)
$622,189 $730,898 $712,312 
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 $477.6 million, $536.6 million, and $513.3 million, net of fees, of interest-bearing brokered certificates of deposit outstanding as of March 31, 2026, December 31, 2025, and March 31, 2025, 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 March 31, 2026 were as follows (in thousands):
2026198,079 
2027203,382 
202828,041 
202927,120 
203019,790 
Thereafter1,990 
Future maturities478,402 
Unamortized fees(764)
$477,638 
Operating Cash Flow – The reconciliation of Net income to Net cash provided by operating activities was as follows (in thousands):
 Three months ended
March 31,
2026		March 31,
2025
Cash flows from operating activities:
Net income$24,123 $130,797 
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization44,139 41,704 
Amortization of deferred loan origination costs2,153 15,856 
Amortization of financing origination fees1,351 3,269 
Income related to long-term employee benefits
(11,686)(13,763)
Employee benefit plan contributions and payments(1,535)(1,556)
Stock compensation expense8,543 6,815 
Net change in wholesale finance receivables related to sales(178,721)(270,851)
Provision for credit losses13,153 53,334 
Collections from finance receivables held for sale
24,950 — 
Proceeds from sale of finance receivables held for sale275,439 — 
Originations of finance receivables held for sale
(491,565)— 
Deferred income taxes1,942 18,573 
Other, net3,380 2,808 
Changes in current assets and liabilities:
Accounts receivable, net(64,013)(72,586)
Finance receivables – accrued interest and other
(4,378)(3,496)
Inventories, net102,804 42,217 
Accounts payable and accrued liabilities195,710 203,281 
Other current assets(173,810)(14,868)
(252,144)10,737 
Net cash provided by operating activities$(228,021)$141,534