Harley Davidson 2014 Annual Report Download - page 70

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The following table shows the assets and liabilities related to the Company's asset-backed financings that were included
in its financial statements at December 31 (in thousands):
2014
Finance
receivables
Allowance
for credit
losses
Restricted
cash
Other
assets
Total
assets
Asset-backed
debt
On-balance sheet assets and liabilities
Consolidated VIEs
Term asset-backed securitizations $1,458,602 $ (32,156) $ 110,017 $ 2,987 $1,539,450 $ 1,271,533
Asset-backed U.S. commercial paper conduit
facility — — — 422 422 —
Unconsolidated VIEs
Asset-backed Canadian commercial paper
conduit facility 185,099 (2,965)12,035 262 194,431 166,912
Total $1,643,701 $(35,121) $ 122,052 $3,671 $1,734,303 $1,438,445
2013
Finance
receivables
Allowance
for credit
losses
Restricted
cash
Other
assets
Total
assets
Asset-backed
debt
On-balance sheet assets and liabilities
Consolidated VIEs
Term asset-backed securitizations $1,569,118 $(31,778) $ 133,053 $3,720 $1,674,113 $1,256,632
Asset-backed U.S. commercial paper conduit
facility — — — 429 429 —
Unconsolidated VIEs
Asset-backed Canadian commercial paper
conduit facility 204,092 (3,361)11,754 589 213,074 174,241
Total $1,773,210 $(35,139) $ 144,807 $4,738 $1,887,616 $1,430,873
Term Asset-Backed Securitization VIEs
The Company transfers U.S. retail motorcycle finance receivables to SPEs which in turn issue secured notes to investors,
with various maturities and interest rates, secured by future collections of the purchased U.S. retail motorcycle finance
receivables. Each term asset-backed securitization SPE is a separate legal entity and the U.S. retail motorcycle finance
receivables included in the term asset-backed securitizations are only available for payment of the secured debt and other
obligations arising from the term asset-backed securitization transactions and are not available to pay other obligations or
claims of the Company’s creditors until the associated secured debt and other obligations are satisfied. There are no
amortization schedules for the secured notes; however, the debt is reduced monthly as available collections on the related U.S.
retail motorcycle finance receivables are applied to outstanding principal. Restricted cash balances held by the SPEs are used
only to support the securitizations.
In 2014 and 2013, the Company transferred $924.9 million and $680.6 million, respectively, of U.S. retail motorcycle
finance receivables to two separate SPEs. The SPEs in turn issued $850.0 million and $650.0 million, respectively, of secured
notes. At December€31, 2014, the Company's consolidated balance sheet included outstanding balances related to the following
secured notes with the related maturity dates and interest rates (in thousands):€
Issue Date
Principal
Amount at Date of
Issuance
Weighted-Average
Rate at Date of
Issuance Contractual Maturity€Date
April 2014 $850,000 0.66% April 2015 - October 2021
April 2013 $650,000 0.57% May 2014 - December 2020
July 2012 $675,306 0.59% August 2013 - June 2018
November 2011 $513,300 0.88% November 2012 - February 2018
August 2011 $573,380 0.76% September 2012 - August 2017
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