Harley Davidson 2013 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2013 Harley Davidson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 117

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117

69
5. Goodwill
The following table summarizes changes in the carrying amount of goodwill in the Motorcycles segment for the
following years ended December 31 (in thousands):
Motorcycles
Balance, December 31, 2010 $ 29,590
Currency translation (509)
Balance, December 31, 2011 $ 29,081
Currency translation 449
Balance, December 31, 2012 $ 29,530
Currency translation 922
Balance, December 31, 2013 $ 30,452
The Financial Services segment did not have a goodwill balance.
6. Finance Receivables
Finance receivables, net at December 31 for the past five years were as follows (in thousands):
2013 2012 2011 2010 2009
Wholesale
United States $ 800,491 $ 776,633 $ 778,320 $ 735,481 $ 787,891
Canada 44,721 39,771 46,320 78,516 82,110
Total wholesale 845,212 816,404 824,640 813,997 870,001
Retail
United States 5,051,245 4,850,450 4,858,781 5,126,699 3,835,235
Canada 213,799 222,665 228,709 250,462 256,658
Total retail 5,265,044 5,073,115 5,087,490 5,377,161 4,091,893
6,110,256 5,889,519 5,912,130 6,191,158 4,961,894
Allowance for credit losses (110,693) (107,667)(125,449)(173,589)(150,082)
5,999,563 5,781,852 5,786,681 6,017,569 4,811,812
Investment in retained securitization
interests — — — — 245,350
$ 5,999,563 $ 5,781,852 $ 5,786,681 $ 6,017,569 $ 5,057,162
HDFS offers wholesale financing to the Company’s independent dealers. Wholesale loans to dealers are generally
secured by financed inventory or property and are originated in the U.S. and Canada.
HDFS provides retail financial services to customers of the Company’s independent dealers in the U.S. and Canada. The
origination of retail loans is a separate and distinct transaction between HDFS and the retail customer, unrelated to the
Company’s sale of product to its dealers. Retail finance receivables consist of secured promissory notes and installment loans.
HDFS holds either titles or liens on titles to vehicles financed by promissory notes and installment loans. As of December 31,
2013 and 2012, approximately 12% of gross outstanding finance receivables were originated in Texas.
At December 31, 2013 and 2012, unused lines of credit extended to HDFS’ wholesale finance customers totaled $1.01
billion and $955.5 million, respectively. Approved but unfunded retail finance loans totaled $149.8 million and $137.7 million
at December 31, 2013 and 2012, respectively.
Wholesale finance receivables are related primarily to motorcycles and related parts and accessories sales to independent
Harley-Davidson dealers and are generally contractually due within one year. Retail finance receivables are primarily related to
sales of motorcycles to the dealers’ customers. On December 31, 2013, contractual maturities of finance receivables were as
follows (in thousands):