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Reportable Segments and Geographic Information
 12 Months Ended
Dec. 31, 2021
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 and Harley-Davidson Financial Services. 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 the activities of Harley-Davidson Motor Company which designs, manufactures and sells motorcycles. The Motorcycles segment also sells motorcycle parts, accessories, and apparel as well as licenses its trademarks. The Company’s products are sold to retail customers primarily through a network of 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 the activities of Harley-Davidson Financial Services 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. Harley-Davidson Financial Services also works with certain unaffiliated insurance companies to provide motorcycle insurance and protection products to motorcycle owners. Harley-Davidson Financial Services conducts business principally in the U.S. and Canada.
Selected segment information is set forth below for the years ended December 31, (in thousands):
202120202019
Motorcycles and Related Products:
Motorcycles revenue$4,540,240 $3,264,054 $4,572,678 
Gross profit1,296,953 828,309 1,342,880 
Selling, administrative and engineering expense885,587 895,321 1,020,907 
Restructuring expense2,741 119,110 32,353 
Operating income (loss) 408,625 (186,122)289,620 
Financial Services:
Financial Services revenue796,068 790,323 789,111 
Financial Services expense380,580 583,623 523,123 
Restructuring expense674 10,899 — 
Operating income414,814 195,801 265,988 
Operating income $823,439 $9,679 $555,608 
Financial Services revenue includes $6.1 million and $10.0 million of interest paid by Harley-Davidson Motor Company to Harley-Davidson Financial Services on wholesale finance receivables in 2020 and 2019, respectively. The offsetting cost of these interest incentives was recorded as a reduction to Motorcycles revenue. Harley-Davidson Financial Services did not earn any interest from Harley-Davidson Motor Company on wholesale finance receivables in 2021.
Additional segment information is set forth below as of December 31, (in thousands): 
MotorcyclesFinancial ServicesConsolidated
2021:
Assets$3,308,292 $7,742,763 $11,051,055 
Depreciation and amortization$155,969 $9,216 $165,185 
Capital expenditures$115,995 $4,186 $120,181 
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 
Geographic Information – Included in the Consolidated financial statements are the following amounts relating to geographic locations for the years ended December 31, (in thousands): 
202120202019
Motorcycles revenue(a):
United States$3,021,103 $2,043,851 $2,971,223 
EMEA709,941 589,943 743,385 
Canada182,655 99,219 210,381 
Japan150,253 137,815 156,644 
Australia and New Zealand138,036 107,891 117,525 
Other countries338,252 285,335 373,520 
$4,540,240 $3,264,054 $4,572,678 
Financial Services revenue(a):
United States$765,917 $757,730 $754,535 
Canada18,613 20,353 22,799 
Europe7,464 8,300 8,435 
Other countries4,074 3,940 3,342 
$796,068 $790,323 $789,111 
Long-lived assets(b):
United States$595,375 $644,224 $757,594 
Thailand81,927 94,749 78,651 
Other countries6,682 4,811 11,137 
88,609 99,560 89,788 
$683,984 $743,784 $847,382 
(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.