Business Segments

6 Months Ended

Jun. 28, 2020

Segment Reporting [Abstract]

Business Segments

Business Segments

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				Six months ended
	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
Motorcycles and Related Products:
Motorcycles revenue	$	669,274	$	1,434,004	$	1,769,062	$	2,629,641
Gross profit	107,628		454,738		426,548		802,177
Selling, administrative and engineering expense	187,647		263,587		422,000		489,015
Restructuring expense	41,005		10,423		41,005		24,053
Operating (loss) income	(121,024)		180,728		(36,457)		289,109
Financial Services:
Financial Services revenue	195,953		198,615		394,409		387,358
Financial Services expense	190,084		123,086		365,594		253,098
Restructuring expense	944		—		944		—
Operating income	4,925		75,529		27,871		134,260
Operating (loss) income	$	(116,099)	$	256,257	$	(8,586)	$	423,369