Business Segments

9 Months Ended

Sep. 27, 2020

Harley-Davidson, Inc. is the parent company for the groups of companies referred to as 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				Nine months ended
	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Motorcycles and Related Products:
Motorcycles revenue	$	964,029	$	1,068,942	$	2,733,091	$	3,698,583
Gross profit	287,233		320,064		713,781		1,122,241
Selling, administrative and engineering expense	196,912		265,464		618,912		754,479
Restructuring expense	43,581		7,629		84,586		31,682
Operating income	46,740		46,971		10,283		336,080
Financial Services:
Financial Services revenue	201,655		203,577		596,064		590,935
Financial Services expense	110,177		130,704		475,771		383,802
Restructuring expense	334		—		1,278		—
Operating income	91,144		72,873		119,015		207,133
Operating income	$	137,884	$	119,844	$	129,298	$	543,213

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details