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TEAM 27

Umit Aslan

Christine ShoupKaty KasserJessica MarusaDomenic Bubri

“We ride with our customers and

apply this deep connection in every

market we serve to create superior

value for all of our stakeholders.”

Major Audit Risks:

Non-Routine Numbers:

Excessive Options Compensation :

• Long term

incentives

determined

subjectively

• Executives more

likely to take on

high risk projects

• Misleading net

income figures

Unfavorable Debt Position :

Current portion of debt = $1.3 billion

Operating Cash Flows = $609 million

Interest Coverage Ratios- Harley-Davidson = 8.6

- Suzuki = 34

- Honda Motors = 147

• Recent Changes in Leadership

An Uncertain “Tone at the Top” :

May Violate Going Concern Principle :

• Reported first quarterly

loss in 16 years

• Rumors of leveraged

buyout with private

equity firm

• Completely

discretionary business

International Tax Planning

Tax Advice

Leveraged buyout w/ Kohlberg Kravis & Roberts:

Process improvement:

Appeal to next generation of riders:

Harley-Davidson. Live to Ride, Ride to Live.

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Potential projects to add value to H-D:

1. Leveraged buyout w/ Kohlberg Kravis &

Roberts

2. Process improvement

3. Appeal to next generation of riders