Business Segments

6 Months Ended

Jul. 01, 2012

Business Segments

15. Business Segments

The Company operates in two business segments: Motorcycles and Financial Services. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately based on the fundamental differences in their operations. Selected segment information is set forth below (in thousands):

	Three months ended				Six months ended
	July 1,		June 26,		July 1,		June 26,
	2012		2011		2012		2011
Motorcycles net revenue	$	1,569,047	$	1,339,744	$	2,842,416	$	2,402,788
Gross profit		563,817		468,268		1,020,327		820,134
Selling, administrative and engineering expense		248,038		234,827		485,033		438,632
Restructuring expense		6,220		13,594		17,671		36,593
Operating income from Motorcycles		309,559		219,847		517,623		344,909
Financial services income		160,613		165,853		316,935		327,739
Financial services expense		78,659		83,798		167,587		177,749
Operating income from Financial Services		81,954		82,055		149,348		149,990
Operating income	$	391,513	$	301,092	$	666,971	$	494,899