Segment Information

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Information

Segment Reporting

The Company’s reportable segments are based on the Company’s method of internal reporting, which generally segregates the operating segments by product line, inclusive of wholegoods and PG&A. The internal reporting of these operating segments is defined based, in part, on the reporting and review process used by the Company’s Chief Executive Officer. The Company has five operating segments: 1) ORV, 2) Snowmobiles, 3) Motorcycles, 4) Global Adjacent Markets and 5) Aftermarket, and four reportable segments: 1) ORV/Snowmobiles, 2) Motorcycles, 3) Global Adjacent Markets, and 4) Aftermarket.

Through December 31, 2016, the Company reported under three segments for segment reporting. However, during the first quarter ended March 31, 2017, as a result of the acquisition of TAP, the Company established a new reporting segment, Aftermarket, which includes the results of TAP as well as the other aftermarket brands. The comparative 2016 results were reclassified to reflect the new reporting segment structure.

The ORV/Snowmobiles segment includes the aggregated results of our ORV and Snowmobiles operating segments. The Motorcycles, Global Adjacent Markets and Aftermarket segments include the results for those respective operating segments. The Corporate amounts include costs that are not allocated to individual segments, which include incentive-based compensation and other unallocated manufacturing costs. Additionally, given the commonality of customers, manufacturing and asset management, the Company does not maintain separate balance sheets for each segment. Accordingly, the segment information presented below is limited to sales and gross profit data (in thousands):

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
Sales
ORV/Snowmobiles	$	845,508		$	799,332		$	1,569,611		$	1,507,435
Motorcycles	197,997			228,392			318,286			413,659
Global Adjacent Markets	97,022			90,959			188,577			165,068
Aftermarket	224,393			12,094			442,228			27,611
Total sales	$	1,364,920		$	1,130,777		$	2,518,702		$	2,113,773
Gross profit
ORV/Snowmobiles	$	266,150		$	228,494		$	479,109		$	434,481
Motorcycles	21,116			38,915			1,235			66,174
Global Adjacent Markets	21,216			23,952			49,314			44,335
Aftermarket	59,918			2,982			101,482			7,681
Corporate	(18,014		)	(9,840		)	(38,263		)	(20,590		)
Total gross profit	$	350,386		$	284,503		$	592,877		$	532,081