Segment Information

9 Months Ended

Sep. 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 September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Sales
ORV/Snowmobiles	$	1,152,405		$	1,035,554		$	3,069,173		$	2,858,959
Motorcycles	149,900			155,316			464,615			458,285
Global Adjacent Markets	114,003			96,251			340,883			322,996
Aftermarket	236,261			229,973			685,668			676,859
Boats	119,078			134,321			486,313			134,321
Total sales	$	1,771,647		$	1,651,415		$	5,046,652		$	4,451,420
Gross profit
ORV/Snowmobiles	$	323,940		$	290,631		$	888,864		$	831,413
Motorcycles	11,940			19,577			45,704			60,817
Global Adjacent Markets	31,138			24,155			94,851			83,520
Aftermarket	61,794			66,092			173,483			182,291
Boats	22,335			20,253			98,976			20,253
Corporate	(14,605		)	(19,438		)	(76,440		)	(68,367		)
Total gross profit	$	436,542		$	401,270		$	1,225,438		$	1,109,927