Business Segments And Geographic Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business Segments And Foreign Operations

 Reportable Segments and Geographic Information

Reportable Segments:

Harley-Davidson, Inc. is the parent company for the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The Company operates in two segments: the Motorcycles & Related Products (Motorcycles) segment and the Financial Services segment. 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.

The Motorcycle reportable segment consists of HDMC which designs, manufactures and sells at wholesale on-road Harley-Davidson motorcycles as well as a line of motorcycle parts, accessories, general merchandise and related services. The Company's products are sold to retail customers through a network of independent dealers. The Company conducts business on a global basis, with sales in the following regions: Americas, Europe/Middle East/Africa (EMEA) and Asia-Pacific.

The Financial Services reportable segment consists of HDFS which provides wholesale and retail financing and provides insurance and insurance-related programs primarily to Harley-Davidson dealers and their retail customers. HDFS conducts business principally in the United States and Canada.

Information by segment is set forth below for the years ended December 31 (in thousands):

	2015		2014		2013
Motorcycles net revenue	$	5,308,744	$	5,567,681	$	5,258,290
Gross profit	1,952,460		2,025,080		1,862,372
Selling, administrative and engineering expense	1,076,970		1,021,933		991,763
Operating income from Motorcycles	$	875,490	$	1,003,147	$	870,609
Financial Services revenue	$	686,658	$	660,827	$	641,582
Financial Services expense	406,453		382,991		358,489
Operating income from Financial Services	$	280,205	$	277,836	$	283,093

Financial Services revenue includes $6.9 million, $8.1 million and $10.4 million of interest that HDMC paid to HDFS on wholesale finance receivables in 2015, 2014 and 2013, respectively. The offsetting cost of these interest incentives was recorded as a reduction to Motorcycles revenue.

Information by segment is set forth below as of December 31 (in thousands):

	Motorcycles		Financial Services		Consolidated
2015
Total assets	$	2,528,530	$	7,462,637	$	9,991,167
Depreciation and amortization	$	188,926	$	9,148	$	198,074
Capital expenditures	$	249,772	$	10,202	$	259,974
2014
Total assets	$	2,502,190	$	7,025,907	$	9,528,097
Depreciation and amortization	$	171,187	$	8,113	$	179,300
Capital expenditures	$	224,262	$	8,057	$	232,319
2013
Total assets	$	2,793,497	$	6,611,543	$	9,405,040
Depreciation and amortization	$	160,181	$	6,891	$	167,072
Capital expenditures	$	199,354	$	8,967	$	208,321

Geographic Information:

Included in the consolidated financial statements are the following amounts relating to geographic locations for the years ended December 31 (in thousands):

	2015		2014		2013
Revenue from Motorcycles(a):
United States	$	3,768,069	$	3,773,087	$	3,562,847
EMEA region	728,198		869,690		769,864
Japan	162,675		197,792		217,700
Canada	178,042		194,422		204,315
Australia	165,854		190,029		193,081
Other foreign countries	305,906		342,661		310,483
Total revenue from Motorcycles	$	5,308,744	$	5,567,681	$	5,258,290
Revenue from Financial Services(a):
United States	$	656,888	$	627,317	$	609,574
Europe	5,373		5,684		4,274
Canada	21,180		23,707		24,486
Other foreign countries	3,217		4,119		3,248
Total revenue from Financial Services	$	686,658	$	660,827	$	641,582
Long-lived assets(b):
United States	$	915,509	$	865,617	$	874,833
International	26,909		34,328		36,860
Total long-lived assets	$	942,418	$	899,945	$	911,693

(a) Revenue is attributed to geographic regions based on location of customer.

(b) Long-lived assets include all long-term assets except those specifically excluded under ASC Topic 280, “Segment Reporting,” such as deferred income taxes and finance receivables.