Financial Analysis

"Commitments and Contingencies Litigation and Other Claims The Company is subject to lawsuits and other claims related to product, commercial, employee, environmental and other matters. In determining costs to accrue related to these items, the Company carefully analyzes cases and considers the likelihood of adverse judgments or outcomes, as well as the potential range of possible loss. The Company accrues for matters when losses are both probable and estimable. Any amounts accrued for these matters are monitored on an ongoing basis and are updated based on new developments or new information as it becomes available for each matter. The Company also maintains insurance coverage for product liability exposures. Except for the Supply Matters discussed separately below, the Company believes there are no material exposures to loss in excess of amounts accrued. Product Liability Matter In August 2024, a jury awarded approximately $288 million in damages to the plaintiffs in a product lawsuit against the Company. In November 2024, the award for damages was reduced to $81 million. The Company appealed and subsequently settled and fully resolved this matter during the third quarter of 2025, resulting in no remaining liability. Supply Matters During the second quarter of 2022, the Company received information from a Tier 2 supplier, Proterial Cable America, Inc. (PCA f/k/a Hitachi Cable America, Inc.), concerning a potential regulatory compliance matter relating to PCA's brake hose as …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Debt with a contractual term less than 12 months is generally classified as short-term and consisted of the following at December 31 (in thousands): 2025 2024 Unsecured commercial paper $ 497,776 $ 640,204 Debt with a contractual term greater than 12 months is generally classified as long-term and consisted of the following at December 31 (in thousands): 2025 2024 Secured debt: Asset-backed Canadian commercial paper conduit facility $ $ 77,381 Asset-backed U.S. commercial paper conduit facility 431,846 Asset-backed securitization debt 1,956,383 Unamortized discounts and debt issuance costs (6,245) 2,459,365 2025 2024 Unsecured notes (at par value): Medium-term notes: Due in 2025, issued June 2020 3.35 % 700,000 Due in 2026, issued April 2023 (a) 6.36 % 821,814 727,104 Due in 2027, issued February 2022 3.05 % 500,000 500,000 Due in 2028, issued March 2023 6.50 % 700,000 Due in 2029, issued June 2024 5.95 % 144,903 500,000 Due in 2030, issued March 2025 (b) 5.61 % 716,152 Unamortized discounts and debt issuance costs (10,906) (13,091) 2,171,963 3,114,013 Senior notes: Due in 2025, issued July 2015 3.50% 450,000 Due in 2045, issued July 2015 4.625% 300,000 300,000 Unamortized discounts and debt issuance costs (2,722) (3,200) 297,278 746,800 2,469,241 3,860,813 Long-term debt 2,469,241 6,320,178 Current portion of long-term debt, net (819,629) (1,851,513) Long-term debt, net $ 1,649,612 $ 4,468,665 (a) 700.0 million par value remeasured to U.S. dollar at December 31, 2025 an …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregated revenue by major source was as follows for the years ended December 31 (in thousands): 2025 2024 2023 HDMC: Motorcycles $ 2,657,675 $ 3,137,331 $ 3,798,977 Parts and accessories 614,072 651,964 698,095 Apparel 215,783 237,270 244,333 Licensing 21,672 22,748 28,599 Other 69,106 72,593 74,590 3,578,308 4,121,906 4,844,594 LiveWire 25,671 26,358 38,298 Motorcycles and related products revenue 3,603,979 4,148,264 4,882,892 HDFS: Interest income 668,490 890,836 802,078 Other 200,706 147,702 151,508 Financial services revenue 869,196 1,038,538 953,586 $ 4,473,175 $ 5,186,802 $ 5,836,478

DisaggregationOfRevenueTableTextBlock

Share-Based Awards The Company has share-based compensation plans which were approved by its shareholders in April 2020 and May 2021 (the Plans) under which its Board of Directors may grant to employees share-based awards including restricted stock units (RSUs), performance shares, aspirational performance shares and nonqualified stock options. RSUs generally vest ratably over a three-year period. Performance shares include a three-year performance period with vesting based on achievement of internal performance targets and include a vesting component based on a Total Shareholder Return (TSR) relative to a peer group. Aspirational performance shares would have been earned only to the extent the aspirational share price goals for the Company's stock were achieved by December 31, 2025. If a share price goal had been met, then 50% of the associated aspirational performance shares would have vested and the remaining would have 50% vested on the one-year anniversary of the date on which the share price goal was achieved. The aspirational share price goals were not met by December 31, 2025, so the shares did not vest. Dividend or dividend equivalents are paid on RSUs, performance shares and aspirational shares that ultimately vest. At December 31, 2025, there were 2.2 million shares of common stock available for future awards under the Plans. The Company recognizes the cost of its share-based awards in the Consolidated statements of operations . The cost of each share-based equity …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value The following tables present the fair values of certain of the Company's assets and liabilities within the fair value hierarchy as defined in Note 1. Refer to Note 14 for further discussion regarding the Company's pension plan assets measured at fair value. Recurring Fair Value Measurements The Companys assets and liabilities measured at fair value on a recurring basis as of December 31, were as follows (in thousands): 2025 Balance Level 1 Level 2 Level 3 Assets: Cash equivalents $ 2,693,739 $ 2,553,850 $ 139,889 $ Marketable securities 31,513 31,513 Derivative financial instruments 108,435 108,435 Investments in Retained Notes 68,130 68,130 Investments in Residual Interests 10,156 10,156 2,911,973 2,585,363 316,454 10,156 Liabilities: Derivative financial instruments $ 6,494 $ $ 6,494 $ LiveWire warrants 1,901 1,244 657 $ 8,395 $ 1,244 $ 7,151 $ 2024 Balance Level 1 Level 2 Level 3 Assets: Cash equivalents $ 1,275,561 $ 1,000,933 $ 274,628 $ Marketable securities 32,070 32,070 Derivative financial instruments 19,839 19,839 $ 1,327,470 $ 1,033,003 $ 294,467 $ Liabilities: Derivative financial instruments $ 35,020 $ $ 35,020 $ LiveWire warrants 1,549 1,013 536 $ 36,569 $ 1,013 $ 35,556 $ The following table presents the reconciliation for all Level 3 assets measured at fair value on a recurring basis (in thousands): Investments in Residual Interests Fair value at December 31, 2024 (a) $ Initial Fair Value 12,348 Investment Proceeds (2,336) Realized gain reclassified …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes Income tax provision (benefit) for the years ended December 31, consists of the following (in thousands): 2025 2024 2023 Current: Federal $ 12,205 $ 66,505 $ 125,875 State 9,849 8,368 22,340 Foreign 23,380 23,366 53,674 45,434 98,239 201,889 Deferred: Federal 38,947 (27,938) (18,781) State 37,665 7,511 (6,209) Foreign 7,531 (5,849) (5,069) 84,143 (26,276) (30,059) $ 129,577 $ 71,963 $ 171,830 The components of Income before income taxes for the years ended December 31, were as follows (in thousands): 2025 2024 2023 Domestic $ 281,923 $ 369,870 $ 614,713 Foreign 176,808 147,268 252,163 $ 458,731 $ 517,138 $ 866,876 The table below provides the updated requirements of ASU 2023-09 for 2025 related to the Company's effective tax rate. See Note 1 Summary of Significant Accounting Policies Accounting Standards Recently Adopted section for additional details on the adoption of ASU 2023-09. Income tax provision differs from the amount that would be provided by applying the statutory U.S. corporate income tax rate for the years ended December 31, due to the following items (in thousands): 2025 United states statutory tax rate $ 96,334 21.0% State and local income taxes, net of federal income tax effect (a) 29,913 6.5 Foreign tax effects China Valuation allowance adjustments 5,421 1.2 Other (184) Thailand BOI (15,120) (3.3) Global minimum tax 8,838 1.9 Other (2,658) (0.6) Other foreign jurisdictions 147 Effect of changes in tax laws or rates enacted in the current period E …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company determines if an arrangement is or contains a lease at contract inception. Right-of-use (ROU) assets related to the Company's leases are recorded in Lease assets and lease liabilities are recorded in Accrued liabilities and Lease liability on the Consolidated balance sheets . ROU assets represent the Companys right to use an underlying asset over the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. The ROU asset also includes prepaid lease payments and initial direct costs and is reduced for lease incentives paid by the lessor. The discount rate used to determine the present value is generally the Company's incremental borrowing rate because the implicit rate in the lease is not readily determinable. The lease term used to calculate the ROU asset and lease liabilities includes periods covered by options to extend or terminate when the Company is reasonably certain the lease term will include these optional periods. In accordance with ASC Topic 842, Leases (ASC Topic 842), the Company elected the short-term lease practical expedient that allows entities to recognize lease payments on a straight-line basis over the lease term for leases with a term of 12 months or less. The Company has also elected the practical expedient under ASC Topic 842 all …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"New Accounting Standards Accounting Standards Recently Adopted In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to enhance the transparency and decision usefulness of income tax disclosures. The main provisions of ASU 2023-09 require a public entity to disclose on an annual basis (i) specific prescribed categories in the rate reconciliation, (ii) additional information for reconciling items that meet a quantitative threshold, (iii) the amount of income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes, (iv) the amount of income taxes paid, net of refunds received, disaggregated by individual jurisdictions in which income taxes paid is equal to greater than 5 percent of total income taxes paid, (v) income or loss from continuing operations before income tax expense or benefit disaggregated between domestic and foreign, and (vi) income tax expense or benefit from continuing operations disaggregated by federal, state, and foreign. ASU 2023-09 also removes certain disclosure requirements related to unrecognized tax benefits and cumulative unrecognized temporary differences. The Company adopted ASU 2023-09 on December 31, 2025 on a prospective basis. The adoption of ASU 2023-09 is reflected in Note 3 of the Company's consolidated financial statement disclosures. In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments Credit Losses (Topic 326): M …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Employee Benefit Plans and Other Postretirement Benefits The Company has a qualified defined benefit pension plan and postretirement healthcare benefit plans. The plans cover certain eligible employees and retirees of the HDMC segment. The Company also has unfunded supplemental employee retirement plan agreements (SERPA) with certain employees. Pension benefits are based primarily on years of service and, for certain participants, levels of compensation. Plan participants are generally eligible to receive postretirement healthcare benefits upon attaining age 55 after rendering at least 10 years of service to the Company. Some of the plans require participant contributions to partially offset benefit costs. Obligations and Funded Status: The changes in the benefit obligation, fair value of plan assets and the funded status of the Companys pension and SERPA plans and the postretirement healthcare plans as of the Companys measurement dates of December 31, were as follows (in thousands): Pension and SERPA Benefits Postretirement Healthcare Benefits 2025 2024 2025 2024 Change in benefit obligation: Benefit obligation, beginning of period $ 1,506,747 $ 1,568,277 $ 191,747 $ 206,506 Service cost 3,854 4,698 2,571 2,892 Interest cost 82,006 80,478 10,470 10,775 Actuarial loss / (gains) 15,059 (41,748) (17,916) (15,269) Plan participant contributions 488 564 Special early retirement benefits 1,722 Plan amendments 5,601 Benefits paid (113,359) (112,281) (15,106) (13,721) Settlements (5 …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or service to a customer. Revenue is measured based on the consideration that the Company expects to be entitled to in exchange for the goods or services transferred. Taxes that are collected from a customer concurrent with revenue-producing activities are excluded from revenue. Disaggregated revenue by major source was as follows for the years ended December 31 (in thousands): 2025 2024 2023 HDMC: Motorcycles $ 2,657,675 $ 3,137,331 $ 3,798,977 Parts and accessories 614,072 651,964 698,095 Apparel 215,783 237,270 244,333 Licensing 21,672 22,748 28,599 Other 69,106 72,593 74,590 3,578,308 4,121,906 4,844,594 LiveWire 25,671 26,358 38,298 Motorcycles and related products revenue 3,603,979 4,148,264 4,882,892 HDFS: Interest income 668,490 890,836 802,078 Other 200,706 147,702 151,508 Financial services revenue 869,196 1,038,538 953,586 $ 4,473,175 $ 5,186,802 $ 5,836,478 Motorcycles and Related Products Revenue (HDMC and LiveWire Segments) Motorcycles, Electric Bikes, Parts and Accessories, and Apparel Revenues from the sale of motorcycles, electric bikes, parts and accessories, and apparel are recorded when control is transferred to the customer, generally at the time of shipment to independent dealers and distributors or at the time of delivery to retail customers. The sale of products to independent dealers outside the U.S. and Canada is generally on open accou …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Reportable Segments and Geographic Information The Companys reportable segments and significant segment expenses are determined based on how the Companys Chief Operating Decision Maker (CODM) assesses performance and decides how to allocate resources for the Company. The Companys President and Chief Executive Officer is the Companys CODM. Operating income is the measure of profit and loss used by the CODM to assess performance and to decide how to allocate resources for each of the Companys reportable segments. Operating income is used to monitor actual results versus planned and prior period results for each segment based on their respective profitability objectives and business models. Operating income is also used to allocate human and capital resources among the reportable segments and to other corporate actions for returning capital to shareholders such as repurchasing common stock or paying dividends. Operating income is also a key metric used to establish and pay variable compensation to employees at all levels. Reportable Segments The Company operates with three segments: Harley-Davidson Motor Company (HDMC), LiveWire, and Harley-Davidson Financial Services (HDFS). The Company's reportable segments are strategic business units that offer different products and services and are managed separately based on the fundamental differences in their operations. HDMC designs, manufactures and sells motorcycles and also sells motorcycle parts, accessories, and apparel as well as …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation All references to the Company include Harley-Davidson, Inc. and all of its subsidiaries. The consolidated financial statements include the accounts of Harley-Davidson, Inc., its subsidiaries and certain variable interest entities (VIEs) related to secured financing as the Company is the primary beneficiary. All intercompany accounts and material intercompany transactions have been eliminated. The Company has controlling equity interests in LiveWire Group, Inc. and Harley-Davidson Financial Services, Inc. As the controlling shareholder, the Company consolidates LiveWire Group, Inc. and Harley-Davidson Financial Services, Inc. results with additional adjustments to recognize non-controlling shareholder interests. The Company operates in three reportable segments: Harley-Davidson Motor Company (HDMC), LiveWire and Harley-Davidson Financial Services (HDFS). Substantially all of the Companys international subsidiaries use their respective local currency as their functional currency. Assets and liabilities of international subsidiaries have been translated at period-end exchange rates, and revenues and expenses have been translated using average exchange rates for the period. Monetary assets and liabilities denominated in a currency that is different from an entity's functional currency are remeasured from the transactional currency to the entity's functional currency on a monthly basi …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Commitments and Contingencies Litigation and Other Claims The Company is subject to lawsuits and other claims related to product, commercial, employee, environmental and other matters. In determining costs to accrue related to these items, the Company carefully analyzes cases and considers the likelihood of adverse judgments or outcomes, as well as the potential range of possible loss. The Company accrues for matters when losses are both probable and estimable. Any amounts accrued for these matters are monitored on an ongoing basis and are updated based on new developments or new information as it becomes available for each matter. The Company also maintains insurance coverage for product liability exposures. Except for the Supply Matters discussed separately below, the Company believes there are no material exposures to loss in excess of amounts accrued. Product Liability Matter In August 2024, a jury awarded approximately $288 million in damages to the plaintiffs in a product lawsuit against the Company. In November 2024, the award for damages was reduced to $81 million. The Company appealed and subsequently settled and fully resolved this matter during the third quarter of 2025 resulting in no remaining liability. Supply Matters During the second quarter of 2022, the Company received information from a Tier 2 supplier, Proterial Cable America, Inc. (""PCA"" f/k/a Hitachi Cable America, Inc.), concerning a potential regulatory compliance matter relating to PCA's brake hose …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Debt with a contractual term less than 12 months is generally classified as short-term and consisted of the following (in thousands): September 30, 2025 December 31, 2024 September 30, 2024 Unsecured commercial paper $ 684,741 $ 640,204 $ 497,373 Debt with a contractual term greater than 12 months is generally classified as long-term and consisted of the following (in thousands): September 30, 2025 December 31, 2024 September 30, 2024 Secured debt: Asset-backed Canadian commercial paper conduit facility $ 49,642 $ 77,381 $ 94,142 Asset-backed U.S. commercial paper conduit facility 399,502 431,846 378,968 Asset-backed securitization debt 63,107 1,956,383 2,252,468 Unamortized discounts and debt issuance costs (472) (6,245) (7,726) 511,779 2,459,365 2,717,852 September 30, 2025 December 31, 2024 September 30, 2024 Unsecured notes (at par value): Medium-term notes: Due in 2024, issued November 2019 (a) 3.14 % 669,864 Due in 2025, issued June 2020 3.35 % 700,000 700,000 Due in 2026, issued April 2023 (b) 6.36 % 821,583 727,104 781,508 Due in 2027, issued February 2022 3.05 % 500,000 500,000 500,000 Due in 2028, issued March 2023 6.50 % 700,000 700,000 700,000 Due in 2029, issued June 2024 5.95 % 500,000 500,000 500,000 Due in 2030, issued March 2025 (c) 5.61 % 715,951 Unamortized discounts and debt issuance costs (17,741) (13,091) (14,800) 3,219,793 3,114,013 3,836,572 Term loan: Due in 2027, issued July 2025 450,000 Unamortized debt issuance costs (1,739) 448,261 Senior not …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregated revenue by major source was as follows (in thousands): Three months ended Nine months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 HDMC: Motorcycles $ 821,864 $ 615,628 $ 2,463,793 $ 2,905,861 Parts and accessories 167,252 174,301 497,558 534,359 Apparel 56,052 55,688 168,614 183,192 Licensing 5,547 3,897 14,549 18,312 Other 23,244 26,891 54,599 59,693 1,073,959 876,405 3,199,113 3,701,417 LiveWire 5,563 4,808 14,318 15,958 Motorcycles and related products revenue 1,079,522 881,213 3,213,431 3,717,375 HDFS: Interest income 198,239 232,990 622,696 666,903 Other 62,949 36,492 140,891 114,915 Financial services revenue 261,188 269,482 763,587 781,818 $ 1,340,710 $ 1,150,695 $ 3,977,018 $ 4,499,193

DisaggregationOfRevenueTableTextBlock

Fair Value The following tables present the fair values of certain of the Company's assets and liabilities within the fair value hierarchy as defined in Note 1. Recurring Fair Value Measurements The Companys assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): September 30, 2025 Balance Level 1 Level 2 Level 3 Assets: Cash equivalents $ 1,474,496 $ 1,244,794 $ 229,702 $ Marketable securities 32,493 32,493 Derivative financial instruments 116,748 116,748 Investments in Retained Notes 80,204 80,204 Investments in Residual Interests 12,086 12,086 $ 1,716,027 $ 1,277,287 $ 426,654 $ 12,086 Liabilities: Derivative financial instruments 7,447 7,447 LiveWire warrants $ 2,204 $ 1,442 $ 762 $ 9,651 $ 1,442 $ 8,209 $ December 31, 2024 Balance Level 1 Level 2 Level 3 Assets: Cash equivalents $ 1,275,561 $ 1,000,933 $ 274,628 $ Marketable securities 32,070 32,070 Derivative financial instruments 19,839 19,839 $ 1,327,470 $ 1,033,003 $ 294,467 $ Liabilities: Derivative financial instruments $ 35,020 $ $ 35,020 $ LiveWire warrants 1,549 1,013 536 $ 36,569 $ 1,013 $ 35,556 $ September 30, 2024 Balance Level 1 Level 2 Level 3 Assets: Cash equivalents $ 1,847,818 $ 1,603,315 $ 244,503 $ Marketable securities 33,816 33,816 Derivative financial instruments 19,804 19,804 $ 1,901,438 $ 1,637,131 $ 264,307 $ Liabilities: Derivative financial instruments $ 14,235 $ $ 14,235 $ LiveWire warrants 3,189 $ 2,086 $ 1,103 $ 17,424 $ 2,086 $ 15,338 $ The follow …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The Companys effective income tax rate for the nine months ended September 30, 2025 was 23.5% compared to 18.0% for the nine months ended September 30, 2024. The increase in the effective income tax rate was attributable to changes in the mix of earnings between the domestic and foreign jurisdictions that are taxed at rates that differ from the U.S. statutory rate as well as a lower benefit from income tax credits. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Accounting Standards Recently Adopted In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07). ASU 2023-07 is intended to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The main provisions of ASU 2023-07 require a public entity to disclose on an annual and interim basis: (i) significant segment expenses provided to the chief operating decision maker, (ii) an amount representing the difference between segment revenue less segment expenses disclosed under the significant segment expense principle and each reported measure of segment profit or loss and a description of its composition, (iii) provide all annual disclosures about a reportable segment's profit or loss and assets currently required under Topic 280 in interim periods, (iv) clarify that if the chief operating decision maker uses more than one measure of a segment's profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit, (v) the title and position of the chief operating decision maker and an explanation of how the chief operating decision maker uses the reported measure of segment profit or loss in assessing segment performance and deciding how to allocate resources, and (vi) all d …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Employee Benefit Plans The Company has a qualified pension plan and postretirement healthcare benefit plans. The plans cover certain eligible employees and retirees of the HDMC segment. The Company also has unfunded supplemental employee retirement plan agreements (SERPA) with certain employees. Service cost is allocated among Selling, administrative and engineering expense, Motorcycles and related products cost of goods sold and Inventories, net . Amounts capitalized in inventory are not significant. Non-service cost components of net periodic benefit (income) cost are presented in Other income, net . Components of net periodic benefit (income) cost for the Company's defined benefit plans were as follows (in thousands): Three months ended Nine months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Pension and SERPA Benefits: Service cost $ 963 $ 1,175 $ 2,889 $ 3,525 Interest cost 20,501 20,118 61,505 60,355 Expected return on plan assets (32,799) (33,143) (98,397) (99,429) Amortization of unrecognized: Prior service cost 380 188 1,140 564 Net gain (174) (163) (522) (489) Special retirement benefit cost 1,722 Net periodic benefit income $ (11,129) $ (11,825) $ (33,385) $ (33,752) Postretirement Healthcare Benefits: Service cost $ 643 $ 723 $ 1,929 $ 2,169 Interest cost 2,618 2,694 7,854 8,082 Expected return on plan assets (4,675) (4,424) (14,025) (13,272) Amortization of unrecognized: Prior service cost 149 149 447 447 Net gain (1,369) (1,2 …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or service to a customer. Revenue is measured based on the consideration that the Company expects to be entitled to in exchange for the goods or services transferred. Taxes that are collected from a customer concurrent with revenue-producing activities are excluded from revenue. Disaggregated revenue by major source was as follows (in thousands): Three months ended Nine months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 HDMC: Motorcycles $ 821,864 $ 615,628 $ 2,463,793 $ 2,905,861 Parts and accessories 167,252 174,301 497,558 534,359 Apparel 56,052 55,688 168,614 183,192 Licensing 5,547 3,897 14,549 18,312 Other 23,244 26,891 54,599 59,693 1,073,959 876,405 3,199,113 3,701,417 LiveWire 5,563 4,808 14,318 15,958 Motorcycles and related products revenue 1,079,522 881,213 3,213,431 3,717,375 HDFS: Interest income 198,239 232,990 622,696 666,903 Other 62,949 36,492 140,891 114,915 Financial services revenue 261,188 269,482 763,587 781,818 $ 1,340,710 $ 1,150,695 $ 3,977,018 $ 4,499,193 The Company maintains certain contract liability balances related to payments received at contract inception in advance of the Companys performance under the contract which generally relate to the sale of memberships, loyalty points earned under membership programs and certain licensing and insurance-related contracts. Contract liabilities are rec …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Reportable Segments The Company operates in three business segments: HDMC, LiveWire and HDFS. The Company's reportable segments are strategic business units that offer different products and services and are managed separately based on the fundamental differences in their operations. Selected segment information is set forth below (in thousands): Three months ended Nine months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 HDMC: Revenue $ 1,073,959 $ 876,405 $ 3,199,113 $ 3,701,417 Motorcycles and related products cost of goods sold 790,849 612,592 2,302,054 2,543,407 Gross profit 283,110 263,813 897,059 1,158,010 Selling, administrative and engineering expense: People expenses (a) 92,212 76,197 264,086 289,944 Marketing and advertising expenses (b) 40,610 30,850 121,524 96,070 Other segment items (c) 96,169 101,629 279,742 280,508 Operating income 54,119 55,137 231,707 491,488 LiveWire: Revenue 5,563 4,808 14,318 15,958 Motorcycles and related products cost of goods sold 7,834 5,988 18,207 22,865 Gross profit (2,271) (1,180) (3,889) (6,907) Selling, administrative and engineering expense 15,910 24,905 52,752 76,587 Operating loss (18,181) (26,085) (56,641) (83,494) HDFS: Financial services revenue 261,188 269,482 763,587 781,818 Financial services interest expense 75,883 94,463 258,391 276,943 Financial services provision for credit losses (301,499) 57,977 (198,427) 175,017 Selling and administrative expense 47,984 40,298 130,994 127,876 Op …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events On October 17, 2025, the Company renewed and amended the US Conduit Facility. This amendment extended the commitment term to October 30, 2026 and amended certain terms within the agreement, primarily related to timing of funding related to the Forward Flow Agreement of the HDFS Transaction. On November 4, 2025, the Company announced that it expected to commence an accelerated share repurchase (ASR) program under which the Company would repurchase $200 million of its shares beginning in the fourth quarter of 2025.

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