Segment Reporting

12 Months Ended

Dec. 31, 2018

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 six operating segments: 1) ORV, 2) Snowmobiles, 3) Motorcycles, 4) Global Adjacent Markets, 5) Aftermarket, and 6) Boats, and five reportable segments: 1) ORV/Snowmobiles, 2) Motorcycles, 3) Global Adjacent Markets, 4) Aftermarket, and 5) Boats.

Through June 30, 2018, the Company reported under four segments for segment reporting. However, during the third quarter ended September 30, 2018, as a result of the Boat Holdings acquisition, the Company established a new reporting segment, Boats, which includes only the results of Boat Holdings since the acquisition on July 2, 2018.

The ORV/Snowmobiles segment includes the aggregated results of the ORV and Snowmobiles operating segments. The Motorcycles, Global Adjacent Markets, Aftermarket, and Boats 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,
	2018			2017			2016
Sales
ORV/Snowmobiles	$	3,919,417		$	3,570,753		$	3,283,890
Motorcycles	545,646			576,068			699,171
Global Adjacent Markets	444,644			396,764			341,937
Aftermarket	889,177			884,892			191,631
Boats	279,656			—			—
Total sales	6,078,540			5,428,477			4,516,629
Gross profit
ORV/Snowmobiles	1,113,908			1,054,557			907,597
Motorcycles	63,045			16,697			87,538
Global Adjacent Markets	116,583			94,920			95,149
Aftermarket	234,365			225,498			46,289
Boats	46,252			—			—
Corporate	(72,953		)	(67,021		)	(30,950		)
Total gross profit	$	1,501,200		$	1,324,651		$	1,105,623