Fair Value (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis |
Recurring Fair Value Measurements – The Company’s assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Balance | | Level 1 | | Level 2 | | Level 3 | | Assets: | | | | | | | | | Cash equivalents | $ | 1,538,577 | | | $ | 1,269,966 | | | $ | 268,611 | | | $ | — | | | Marketable securities | 33,417 | | | 33,417 | | | — | | | — | | | Derivative financial instruments | 51,379 | | | — | | | 51,379 | | | — | | | Investments in Retained Notes | 47,180 | | | — | | | 47,180 | | | — | | | Investments in Residual Interests | 7,773 | | | — | | | — | | | 7,773 | | | $ | 1,678,326 | | | $ | 1,303,383 | | | $ | 367,170 | | | $ | 7,773 | | | Liabilities: | | | | | | | | | Derivative financial instruments | $ | 941 | | | $ | — | | | $ | 941 | | | $ | — | | | LiveWire warrants | 607 | | | 397 | | | 210 | | | — | | | $ | 1,548 | | | $ | 397 | | | $ | 1,151 | | | $ | — | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Balance | | Level 1 | | Level 2 | | Level 3 | | Assets: | | | | | | | | | Cash equivalents | $ | 2,693,739 | | | $ | 2,553,850 | | | $ | 139,889 | | | $ | — | | | Marketable securities | 31,513 | | | 31,513 | | | — | | | — | | | Derivative financial instruments | 108,435 | | | — | | | 108,435 | | | — | | | Investments in Retained Notes | 68,130 | | | — | | | 68,130 | | | — | | | Investments in Residual Interests | 10,156 | | | — | | | — | | | 10,156 | | | $ | 2,911,973 | | | $ | 2,585,363 | | | $ | 316,454 | | | $ | 10,156 | | | Liabilities: | | | | | | | | | Derivative financial instruments | $ | 6,494 | | | $ | — | | | $ | 6,494 | | | $ | — | | | LiveWire warrants | 1,901 | | | 1,244 | | | 657 | | | — | | | $ | 8,395 | | | $ | 1,244 | | | $ | 7,151 | | | $ | — | | | | | | | | | | | June 30, 2025 | | Balance | | Level 1 | | Level 2 | | Level 3 | | Assets: | | | | | | | | | Cash equivalents | $ | 1,270,875 | | | $ | 1,036,092 | | | $ | 234,783 | | | $ | — | | | Marketable securities | 32,854 | | | 32,854 | | | — | | | — | | | Derivative financial instruments | 132,772 | | | — | | | 132,772 | | | — | | | | | | | | | | | | | | | | | | | $ | 1,436,501 | | | $ | 1,068,946 | | | $ | 367,555 | | | $ | — | | | Liabilities: | | | | | | | | | Derivative financial instruments | $ | 16,029 | | | $ | — | | | $ | 16,029 | | | $ | — | | | LiveWire warrants | 1,549 | | | 1,013 | | | 536 | | | — | | | $ | 17,578 | | | $ | 1,013 | | | $ | 16,565 | | | $ | — | |
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| Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation |
The following table presents the reconciliation for all Level 3 assets measured at fair value on a recurring basis (in thousands): | | | | | | | | | | | Investments in Residual Interests | Fair value at December 31, 2025 | | $ | 10,156 | | | Investment Proceeds | | (2,078) | | Realized gain reclassified from Other Comprehensive Loss to earnings | | 41 | Unrealized loss included in Other Comprehensive Loss | | (346) | Fair value at June 30, 2026 | | $ | 7,773 | |
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| Schedule of Fair Value Measurement Inputs and Valuation Techniques |
The fair values of the Residual Interests were calculated using the following ranges of key assumptions: | | | | | | | | | | | | | June 30,
2026 | | December 31,
2025 | Recovery rate on defaulted receivables | 50.00% | | 50.00% | Prepayment speed | 1.40% | | 1.40% | Expected cumulative lifetime losses | 2.05% - 3.31% | | 2.01% - 3.21% | Weighted-average life (in years) | 1.28 - 2.28 | | 0.96 - 2.46 | Residual cash flows discount rate | 15.00% | | 15.00% |
The weighted averages of the key assumptions utilized in calculating the current and prior period fair values of the Residual Interests were as follows: | | | | | | | | | | | | | June 30,
2026 | | December 31,
2025 | Recovery rate on defaulted receivables | 50.00% | | 50.00% | Prepayment speed | 1.40% | | 1.40% | Expected cumulative lifetime losses | 2.86% | | 2.47% | Weighted-average life (in years) | 1.88 | | 1.87 | Residual cash flows discount rate | 15.00% | | 15.00% |
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| Schedule of Sensitivity Analysis of Fair Value, Investment in Retained Notes and Residual Interests |
The sensitivities of the fair value to immediate adverse changes in the key assumptions for the investment in Residual Interests at June 30, 2026 and December 31, 2025 were as follows (dollars in thousands): | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | Fair value of Residual Interests | $ | 7,773 | | | $ | 10,156 | | | | | | Prepayment speed | | | | Impact on fair value of a 1.5% absolute prepayment speed adverse change | $ | (69) | | | $ | (94) | | Impact on fair value of a 1.6% absolute prepayment speed adverse change | $ | (136) | | | $ | (186) | | Expected cumulative lifetime losses | | | | Impact on fair value of a 25 bps adverse change | $ | (130) | | | $ | (183) | | Impact on fair value of a 50 bps adverse change | $ | (260) | | | $ | (365) | | Residual cash flows discount rate | | | | Impact on fair value of a 25 bps adverse change | $ | (34) | | | $ | (44) | | Impact on fair value of a 50 bps adverse change | $ | (68) | | | $ | (88) | |
The sensitivities of the fair value to immediate adverse changes in the key assumptions for the investment in Retained Notes at June 30, 2026 and December 31, 2025 were as follows (dollars in thousands): | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | Fair value of Retained Notes | $ | 47,180 | | | $ | 68,130 | | Weighted-average life (in years) | 1.54 | | 1.86 | Discount rate | | | | Impact on fair value of a 50 bps adverse change | $ | (352) | | | $ | (300) | | Impact on fair value of a 100 bps adverse change | $ | (543) | | | $ | (613) | |
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| Summary Of the Unrealized Positions for Available for Sale Residual Interests and Retained Notes |
The table below summarizes the unrealized positions for Residual Interests and Retained Notes (in thousands): | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | Amortized Cost | | Unrealized Losses | | Fair Value | Residual Interests | | $ | 7,979 | | | $ | (206) | | | $ | 7,773 | | Retained Notes | | 47,351 | | | (171) | | | 47,180 | | Total Beneficial Interests | | $ | 55,330 | | | $ | (377) | | | $ | 54,953 | |
| | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | Amortized Cost | | Unrealized Gains | | Fair Value | Residual Interests | | $ | 10,109 | | | $ | 47 | | | $ | 10,156 | | Retained Notes | | 68,001 | | | 129 | | | 68,130 | | Total Beneficial Interests | | $ | 78,110 | | | $ | 176 | | | $ | 78,286 | |
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| Schedule of Fair Value, Cash Flows Received/Paid to all Motorcycle Loan Securitization Trusts |
The table below provides information regarding certain cash flows received from and paid to all motorcycle loan off-balance sheet securitized trusts during the six months ended June 30, 2026 (in thousands): | | | | | | Servicing, late, and ancillary fees received | $ | 8,062 | | Collection of retained securitization beneficial interests | $ | 23,460 | |
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| Schedule of the Fair Value and Carrying Value of the Company's Financial Instruments |
The fair value and carrying value of the Company’s remaining financial instruments that are measured at cost or amortized cost were as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | June 30, 2025 | | Fair Value | | Carrying Value | | Fair Value | | Carrying Value | | Fair Value | | Carrying Value | | Assets: | | | | | | | | | | | | | Finance receivables held for sale, net | $ | 545,510 | | | $ | 545,761 | | | $ | 268,111 | | | $ | 264,238 | | | $ | — | | | $ | — | | Finance receivables held for investment, net (a) | $ | 2,085,543 | | | $ | 2,068,650 | | | $ | 1,665,453 | | | $ | 1,653,372 | | | $ | 7,423,293 | | | $ | 7,326,222 | | | Liabilities: | | | | | | | | | | | | | Deposits, net | $ | 520,458 | | | $ | 516,464 | | | $ | 537,136 | | | $ | 536,644 | | | $ | 541,418 | | | $ | 537,884 | | | Debt: | | | | | | | | | | | | | Unsecured commercial paper | $ | 613,141 | | | $ | 613,141 | | | $ | 497,776 | | | $ | 497,776 | | | $ | 503,353 | | | $ | 503,353 | | | | | | | | | | | | | | | | | | | | | | | | | | | Asset-backed U.S. commercial paper conduit facility | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 461,477 | | | $ | 461,477 | | | Asset-backed Canadian commercial paper conduit facility | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 60,761 | | | $ | 60,761 | | | Asset-backed securitization debt | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,877,186 | | | $ | 1,866,214 | | | Medium-term notes | $ | 1,341,603 | | | $ | 1,331,971 | | | $ | 2,195,390 | | | $ | 2,171,963 | | | $ | 3,267,379 | | | $ | 3,215,765 | | | | | | | | | | | | | | | Senior notes | $ | 237,182 | | | $ | 297,342 | | | $ | 241,057 | | | $ | 297,278 | | | $ | 687,885 | | | $ | 747,164 | |
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