Business Segments

6 Months Ended

Jun. 27, 2021

Segment Reporting [Abstract]

Business Segments

Business 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 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 27, 2021		June 28, 2020		June 27, 2021		June 28, 2020
Motorcycles and Related Products:
Motorcycles revenue	$	1,331,500	$	669,274	$	2,563,607	$	1,769,062
Gross profit	407,051		107,628		827,536		426,548
Selling, administrative and engineering expense	220,422		187,647		413,968		422,000
Restructuring expense	807		41,005		214		41,005
Operating income (loss)	185,822		(121,024)		413,354		(36,457)
Financial Services:
Financial Services revenue	200,558		195,953		390,958		394,409
Financial Services expense	105,909		190,084		177,440		365,594
Restructuring expense	111		944		338		944
Operating income	94,538		4,925		213,180		27,871
Operating income (loss)	$	280,360	$	(116,099)	$	626,534	$	(8,586)

Total assets for the Motorcycles and Financial Services segments were $2.8 billion and $8.2 billion, respectively, as of June 27, 2021, $2.5 billion and $9.5 billion, respectively, as of December 31, 2020, and $2.3 billion and $10.8 billion, respectively, as of June 28, 2020.