Segment Reporting

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment Reporting

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):

	For the Years Ended December 31,
	2017			2016			2015
Sales
ORV/Snowmobiles	$	3,570,753		$	3,283,890		$	3,646,891
Motorcycles	576,068			699,171			688,261
Global Adjacent Markets	396,764			341,937			312,100
Aftermarket	884,892			191,631			72,038
Total sales	5,428,477			4,516,629			4,719,290
Gross profit
ORV/Snowmobiles	1,054,557			907,597			1,170,835
Motorcycles	16,697			87,538			91,881
Global Adjacent Markets	94,920			95,149			84,211
Aftermarket	225,498			46,289			25,174
Corporate	(67,021		)	(30,950		)	(33,059		)
Total gross profit	$	1,324,651		$	1,105,623		$	1,339,042

Sales to external customers based on the location of the customer and property and equipment, net, by geography are presented in the tables below (in thousands):

	For the Years Ended December 31,
	2017		2016		2015
United States	$	4,327,579	$	3,557,228	$	3,688,980
Canada	375,580		307,094		378,725
Other foreign countries	725,318		652,307		651,585
Consolidated sales	$	5,428,477	$	4,516,629	$	4,719,290

	As of December 31,
	2017		2016
United States	$	653,023	$	637,632
Other foreign countries	94,166		89,964
Consolidated property and equipment, net	$	747,189	$	727,596