v3.26.1
Additional Balance Sheet and Cash Flow Information
 6 Months Ended
Jun. 30, 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):
June 30,
2026		December 31,
2025		June 30,
2025
Mutual funds$33,417 $31,513 $32,854 
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,
2026		December 31,
2025		June 30,
2025
Raw materials and work in process$285,013 $338,744 $322,451 
Motorcycle finished goods262,040 434,044 333,347 
Parts and accessories and apparel98,872 97,674 108,495 
Inventory at lower of FIFO cost or net realizable value645,925 870,462 764,293 
Excess of FIFO over LIFO cost(144,990)(139,564)(134,006)
$500,935 $730,898 $630,287 
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 $516.5 million, $536.6 million, and $537.9 million, net of fees, of interest-bearing brokered certificates of deposit outstanding as of June 30, 2026, December 31, 2025, and June 30, 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 June 30, 2026 were as follows (in thousands):
202688,372 
2027233,702 
202861,259 
202972,979 
203019,790 
Thereafter41,572 
Future maturities517,674 
Unamortized fees(1,210)
$516,464 
Operating Cash Flow – The reconciliation of Net income to Net cash (used) provided by operating activities was as follows (in thousands):
Six months ended
June 30,
2026		June 30,
2025
Cash flows from operating activities:
Net income$103,105 $236,542 
Adjustments to reconcile Net income to Net cash (used) provided by operating activities:
Depreciation and amortization86,703 82,129 
Amortization of deferred loan origination costs4,804 32,489 
Amortization of financing origination fees2,485 6,630 
Income related to long-term employee benefits
(20,424)(27,526)
Employee benefit plan contributions and payments(2,975)(3,256)
Stock compensation expense18,034 17,407 
Net change in wholesale finance receivables related to sales(80,003)(145,174)
Provision for credit losses30,796 103,072 
Collections from finance receivables held for sale
74,760 — 
Proceeds from sale of finance receivables held for sale761,221 — 
Originations of finance receivables held for sale
(1,181,674)— 
Deferred income taxes(3,208)13,856 
Other, net15,290 1,592 
Changes in current assets and liabilities:
Accounts receivable, net(81,214)(66,851)
Finance receivables – accrued interest and other
(4,721)4,999 
Inventories, net221,794 142,996 
Accounts payable and accrued liabilities5,360 136,098 
Other current assets(9,818)(25,511)
(162,790)272,950 
Net cash (used) provided by operating activities$(59,685)$509,492