Segment Information

6 Months Ended

Jun. 30, 2018

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.

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,
	2018			2017			2018			2017
Sales
ORV/Snowmobiles	$	990,841		$	845,508		$	1,823,405		$	1,569,611
Motorcycles	171,412			197,997			302,969			318,286
Global Adjacent Markets	113,418			97,022			226,745			188,577
Aftermarket	226,861			224,393			446,886			442,228
Total sales	$	1,502,532		$	1,364,920		$	2,800,005		$	2,518,702
Gross profit
ORV/Snowmobiles	$	297,221		$	266,150		$	540,782		$	479,109
Motorcycles	24,672			21,116			41,240			1,235
Global Adjacent Markets	28,107			21,216			59,365			49,314
Aftermarket	57,747			59,918			116,199			101,482
Corporate	(22,571		)	(18,014		)	(48,929		)	(38,263		)
Total gross profit	$	385,176		$	350,386		$	708,657		$	592,877