Harley Davidson 2013 Annual Report Download - page 18

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18
the Company could incur significant costs related to the compliance process, including potential difficulty or added
costs in satisfying the disclosure requirements.
• The Company must detect issues with the Company’s motorcycles or manufacturing processes to avoid recall
campaigns, increased warranty costs or litigation, and delays in new model launches. The Company must also
complete any recall campaigns within cost expectations. The Company must continually improve and adhere to
product development and manufacturing processes to ensure high quality products are shipped to dealers. If product
designs or manufacturing processes are defective, the Company could experience delays in new model launches,
product recalls, conventional warranty claims, and product liability or unconventional warranty claims, which may
involve purported class actions. While the Company uses reasonable methods to estimate the cost of warranty, recall
and product liability costs and appropriately reflect those in the financial statements, there is a risk the actual costs
could exceed estimates. Further, shipping products with poor quality may also adversely affect the Company’s
reputation.
The Company disclaims any obligation to update these Risk Factors or any other forward-looking statements. The
Company assumes no obligation (and specifically disclaims any such obligation) to update these Risk Factors or any other
forward-looking statements to reflect actual results, changes in assumptions or other factors affecting such forward-looking
statements.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
The following is a summary of the principal operating properties of the Company as of December 31, 2013:
Motorcycles & Related Products Segment
Type of Facility Location Approximate
Square Feet Status
Corporate Office Milwaukee, WI 515,000 Owned
Museum Milwaukee, WI 130,000 Owned
Manufacturing(1) Wauwatosa, WI 430,000 Owned
Product Development Center Wauwatosa, WI 409,000 Owned
Manufacturing(2) Menomonee Falls, WI 881,600 Owned
Manufacturing(3) Tomahawk, WI 226,000 Owned
Manufacturing and Materials Velocity Center(4) Kansas City, MO 450,000 Owned
Manufacturing(5) York, PA 610,000 Owned
Motorcycle Testing Naples, FL 10,000 Lease expiring 2019
Regional Office Miami, FL 12,700 Lease expiring 2017
Motorcycle Testing Yucca, AZ 79,000 Lease expiring 2019
Manufacturing and Office(6) Manaus, Brazil 100,000 Lease expiring 2015
Regional Office and Warehouse Oxford, England 39,000 Lease expiring 2017
Manufacturing(7) Bawal, India 68,200 Lease expiring 2016
Regional Office Singapore 8,800 Lease expiring 2015
Manufacturing(8) Adelaide, Australia 485,000 Lease expiring 2017
(1) Facility was idled during 2010 and production moved to Menomonee Falls, WI.
(2) Motorcycle powertrain production.
(3) Fiberglass/plastic parts production and painting.
(4) Motorcycle parts fabrication, painting and Dyna®, Sportster®, V-Rod® and Street platform assembly.
(5) Motorcycle parts fabrication, painting and Softail® and touring model assembly.
(6) Assembly of select models for the Brazilian market.
(7) Assembly of select models for the Indian market and production of the Street platform.
(8) Motorcycle wheel production.