Segment Information

6 Months Ended

Jun. 30, 2019

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 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.

The ORV/Snowmobiles segment includes the aggregated results of the Company’s 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 segments, such as incentive-based compensation and 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,
	2019			2018			2019			2018
Sales
ORV/Snowmobiles	$	1,049,321		$	990,841		$	1,916,768		$	1,823,405
Motorcycles	196,773			171,412			314,715			302,969
Global Adjacent Markets	121,924			113,418			226,880			226,745
Aftermarket	228,872			226,861			449,407			446,886
Boats	182,425			—			367,235			—
Total sales	$	1,779,315		$	1,502,532		$	3,275,005		$	2,800,005
Gross profit
ORV/Snowmobiles	$	312,689		$	297,221		$	564,924		$	540,782
Motorcycles	26,802			24,672			33,764			41,240
Global Adjacent Markets	33,884			28,107			63,713			59,365
Aftermarket	55,214			57,747			111,689			116,199
Boats	40,477			—			76,641			—
Corporate	(32,618		)	(22,571		)	(61,835		)	(48,929		)
Total gross profit	$	436,448		$	385,176		$	788,896		$	708,657