Harley Davidson 2012 Annual Report Download - page 9

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Regulation – International, federal, state and local authorities have various environmental control requirements relating to
air, water and noise that affect the business and operations of the Company. The Company strives to ensure that its facilities and
products comply with all applicable environmental regulations and standards.
The Company’s motorcycles that are sold in the United States are subject to certification by the U.S. Environmental
Protection Agency (EPA) for compliance with applicable emissions and noise standards. Harley-Davidson motorcycle products
have been designed to comply with EPA standards and the Company believes it will comply with future requirements when
they go into effect. Additionally, the Company’s motorcycle products must comply with the motorcycle emissions, noise and
safety standards of Canada, the European Union, Japan, Brazil and certain other foreign markets where they are sold, and the
Company believes its products currently comply with those standards. Because the Company expects that environmental
standards will become even more stringent over time, the Company will continue to incur some level of research, development
and production costs in this area for the foreseeable future.
The Company, as a manufacturer of motorcycle products, is subject to the U.S. National Traffic and Motor Vehicle Safety
Act, which is administered by the U.S. National Highway Traffic Safety Administration (NHTSA). The Company has certified
to NHTSA that its motorcycle products comply fully with all applicable federal motor vehicle safety standards and related
regulations. The Company has from time to time initiated certain voluntary recalls. During the last three years, the Company
has initiated 12 voluntary recalls related to Harley-Davidson motorcycles at a total cost of $17.2 million. The Company
reserves for all estimated costs associated with recalls in the period that the recalls are announced.
Employees – As of December 31, 2012, the Motorcycles segment had approximately 5,800 employees. Unionized
employees at the manufacturing facilities in Menomonee Falls and Tomahawk, Wisconsin and Kansas City, Missouri are
represented by the United Steelworkers of America (USW), as well as the International Association of Machinist and
Aerospace Workers (IAM). Production workers at the motorcycle manufacturing facility in York, Pennsylvania are represented
by the IAM. In September 2010, the Company’s unionized employees in Wisconsin ratified three separate new seven-year labor
agreements which took effect April 1, 2012 and will expire on March 31, 2019. The collective bargaining agreement with the
Kansas City USW and IAM unions took effect on August 1, 2011 and will expire on July 31, 2018, and the collective
bargaining agreement with the Pennsylvania-IAM union took effect on February 2, 2010 and will expire on February 2, 2017.
Please refer to the Overview section of Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” for further discussion of the Company’s restructuring activities and the impact on the number of employees.
Internet Access – The Company’s internet website address is www.harley-davidson.com. The Company makes available
free of charge (other than an investor’s own internet access charges) through its internet website the Company’s Annual Report
on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and any amendments to those reports, as soon
as reasonably practicable after it electronically files such material with, or furnishes such material to, the United States
Securities and Exchange Commission (SEC). In addition, the Company makes available, through its website, the following
corporate governance materials: (a) the Company’s Corporate Governance Policy; (b) Committee Charters approved by the
Company’s Board of Directors for the Audit Committee, Human Resources Committee, Nominating and Corporate Governance
Committee and Sustainability Committee; (c) the Company’s Financial Code of Ethics; (d) the Company’s Code of Business
Conduct (the Code of Conduct) in nine languages including English; (e) the Conflict of Interest Process for Directors,
Executive Officers and Other Employees (the Conflict Process); (f) a list of the Company’s Board of Directors; (g) the
Company’s By-laws; (h) the Company’s Environmental Policy; (i) the Company’s Policy for Managing Disclosure of Material
Information; (j) the Company’s Supplier Code of Conduct; (k) the Sustainability Strategy Report; (l) the list of compensation
survey participants used as market reference points for various components of compensation as reported in the Company’s
Notice of Annual Meeting and Proxy Statement filed with the SEC on March 26, 2012, which compensation relates to the
Company’s named executive officers; and (m) the California Transparency in Supply Chain Act Disclosure. This information is
also available from the Company upon request. The Company satisfies the disclosure requirements under the Code of Conduct,
the Conflict Process and applicable New York Stock Exchange listing requirements regarding waivers of the Code of Conduct
or the Conflict Process by disclosing the information in the Company’s proxy statement for its annual meeting of shareholders
or on the Company’s website. The Company is not including the information contained on or available through its website as a
part of, or incorporating such information by reference into, this Annual Report on Form 10-K.