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Reportable Segments and Geographic Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Reportable Segments and Geographic Information Reportable Segments and Geographic Information
Reportable Segments – 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 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 Company conducts business on a global basis, with sales in the U.S., Canada, Europe/Middle East/Africa (EMEA), Asia Pacific, and Latin America.
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. HDFS conducts business principally in the U.S. and Canada.
Selected segment information is set forth below for the years ended December 31, (in thousands): 
202020192018
Motorcycles and Related Products:
Motorcycles revenue$3,264,054 $4,572,678 $4,968,646 
Gross profit828,309 1,342,880 1,616,850 
Selling, administrative and engineering expense895,321 1,020,907 1,101,086 
Restructuring expense119,110 32,353 93,401 
Operating (loss) income(186,122)289,620 422,363 
Financial Services:
Financial Services revenue790,323 789,111 748,229 
Financial Services expense583,623 523,123 457,069 
Restructuring expense10,899 — — 
Operating income195,801 265,988 291,160 
Operating income $9,679 $555,608 $713,523 
Financial Services revenue includes $6.1 million, $10.0 million and $9.0 million of interest paid by HDMC to HDFS on wholesale finance receivables in 2020, 2019 and 2018, respectively. The offsetting cost of these interest incentives was recorded as a reduction to Motorcycles revenue.
Additional segment information is set forth below as of December 31, (in thousands): 
MotorcyclesFinancial ServicesConsolidated
2020:
Assets$2,492,515 $9,518,086 $12,010,601 
Depreciation and amortization$177,113 $8,602 $185,715 
Capital expenditures$128,798 $2,252 $131,050 
2019:
Assets$2,548,115 $7,980,044 $10,528,159 
Depreciation and amortization$223,656 $8,881 $232,537 
Capital expenditures$176,264 $5,176 $181,440 
2018:
Assets$2,562,931 $8,102,733 $10,665,664 
Depreciation and amortization$260,707 $4,156 $264,863 
Capital expenditures$197,905 $15,611 $213,516 
Geographic Information – Included in the Consolidated financial statements are the following amounts relating to geographic locations for the years ended December 31, (in thousands): 
202020192018
Motorcycles revenue(a):
United States$2,043,851 $2,971,223 $3,159,049 
EMEA589,943 743,385 893,589 
Canada99,219 210,381 230,211 
Japan137,815 156,644 161,370 
Australia and New Zealand107,891 117,525 147,561 
Other countries285,335 373,520 376,866 
$3,264,054 $4,572,678 $4,968,646 
Financial Services revenue(a):
United States$757,730 $754,535 $712,898 
Canada20,353 22,799 23,120 
Europe8,300 8,435 8,411 
Other countries3,940 3,342 3,800 
$790,323 $789,111 $748,229 
Long-lived assets(b):
United States$644,224 $757,594 $838,446 
International:
Thailand94,749 78,651 50,331 
Other countries4,811 11,137 15,355 
99,560 89,788 65,686 
$743,784 $847,382 $904,132 
(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.