Business Segments

3 Months Ended

Mar. 29, 2020

Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The Company operates in two business segments: Motorcycles and Related Products (Motorcycles) and Financial Services. 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 Motorcycles segment consists of HDMC which designs, manufactures and sells Harley-Davidson motorcycles as well as motorcycle parts, accessories, general merchandise and services. The Company's products are sold to retail customers primarily through a network of independent dealers.

The Financial Services segment consists of HDFS which is engaged in the business of financing and servicing wholesale inventory receivables and retail consumer loans, primarily for the purchase of Harley-Davidson motorcycles. HDFS also works with certain unaffiliated insurance companies to provide motorcycle insurance and protection products to motorcycle owners.

Select segment information is set forth below (in thousands):


	Three months ended
	March 29, 2020		March 31, 2019
Motorcycles and Related Products:
Motorcycles revenue	$	1,099,788	$	1,195,637
Gross profit	318,920		347,439
Selling, administrative and engineering expense	234,353		225,428
Restructuring expense	—		13,630
Operating income	84,567		108,381
Financial Services:
Financial Services revenue	198,456		188,743
Financial Services expense	175,510		130,012
Operating income	22,946		58,731
Operating income	$	107,513	$	167,112