Harley Davidson 2012 Annual Report Download - page 70

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implemented projects under this plan involving the outsourcing of select information technology activities and the
consolidation of an administrative office in Michigan into its corporate headquarters in Milwaukee, Wisconsin.
The 2009 restructuring plan results in a reduction of approximately 2,700 to 2,900 hourly production positions and
approximately 800 non-production, primarily salaried positions within the Motorcycles segment and approximately 100
salaried positions in the Financial Services segment.
Under the 2009 Restructuring Plan, restructuring expenses consist of employee severance and termination costs,
accelerated depreciation on the long-lived assets that will be exited as part of the 2009 Restructuring Plan and other related
costs. The Company expects total costs related to the 2009 Restructuring Plan to result in restructuring and impairment
expenses of approximately $397 million, of which approximately 30% are expected to be non-cash. On a cumulative basis, the
Company has incurred $395.4 million of restructuring and impairment expense under the 2009 Restructuring Plan as of
December 31, 2012, of which $14.8 million was incurred during the year ended December 31, 2012.
The following tables summarize the Company’s 2009 Restructuring Plan reserve activity and balances as recorded in
accrued liabilities for the following years ended December 31 (in thousands):
2012
Motorcycles & Related Products Financial Services Consolidated
Employee
Severance
and
Termination
Costs Accelerated Depreciation Other Total
Employee
Severance
and
Termination
Costs Other Total Consolidated Total
Balance, beginning of period $ 10,089 $ — $ — $ 10,089 $ — $ — $ — $ 10,089
Restructuring expense 4,099 — 13,154 17,253 — — — 17,253
Utilized – cash (6,566) — (12,993) (19,559) — — — (19,559)
Utilized – noncash — — — — — — — —
Noncash reserve release (2,426) — — (2,426) — — — (2,426)
Balance, end of period $ 5,196 $ — $ 161 $ 5,357 $ — $ — $ — $ 5,357
2011
Motorcycles & Related Products Financial Services Consolidated
Employee
Severance
and
Termination
Costs Accelerated Depreciation Other Total
Employee
Severance
and
Termination
Costs Other Total Consolidated Total
Balance, beginning of period $ 23,818 $ — $ 2,764 $ 26,582 $ — $ — $ — $ 26,582
Restructuring expense 5,062 — 34,470 39,532 — — — 39,532
Utilized – cash (16,498) — (37,234) (53,732) — — — (53,732)
Utilized – noncash — — — — — — — —
Noncash reserve release (2,293) — — (2,293) — — — (2,293)
Balance, end of period $ 10,089 $ — $ — $ 10,089 $ — $ — $ — $ 10,089
2010
Motorcycles & Related Products Financial Services Consolidated
Employee
Severance
and
Termination
Costs Accelerated Depreciation Other Total
Employee
Severance
and
Termination
Costs Other Total Consolidated Total
Balance, beginning of period $ 36,070 $ — $ 31,422 $ 67,492 $ 219 $ — $ 219 $ 67,711
Restructuring expense 31,119 47,923 40,083 119,125 — — — 119,125
Utilized – cash (44,394) — (61,514) (105,908) (44) — (44) (105,952)
Utilized – noncash 1,023 (47,923) (3,406) (50,306) (175) — (175) (50,481)
Noncash reserve release — — (3,821) (3,821) — — — (3,821)
Balance, end of period $ 23,818 $ — $ 2,764 $ 26,582 $ — $ — $ — $ 26,582
Other restructuring costs include items such as the exit costs for terminating supply contracts, lease termination costs and
moving costs. During 2012 and 2011, the Company released $2.4 million and $2.3 million, respectively, of its 2009