Harley Davidson 2015 Annual Report Download - page 70

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70
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):
2015
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 $1,611,624 $ (37,937) $ 100,151 $ 4,383 $1,678,221 $ 1,463,154
Asset-backed U.S. commercial paper conduit
facility — — — 323 323 —
Unconsolidated VIEs
Asset-backed Canadian commercial paper
conduit facility 170,708 (3,061) 10,491 393 178,531 153,839
Total $1,782,332 $ (40,998) $ 110,642 $ 5,099 $1,857,075 $ 1,616,993
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
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 2015, the Company transferred a total of $1.31 billion of U.S. retail motorcycle finance receivables to two separate
SPEs. The SPEs in turn issued $1.20 billion of secured notes. In 2014, the Company transferred $924.9 million of U.S. retail
motorcycle finance receivables to one SPE. The SPE in turn issued $850.0 million of secured notes. At December 31, 2015, 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
May 2015 $500,000 0.88% May 2016 - December 2022
January 2015 $700,000 0.89% February 2016 - August 2022
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