Segment Reporting

12 Months Ended

Dec. 31, 2019

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 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,
	2019			2018			2017
Sales
ORV/Snowmobiles	$	4,209,063		$	3,919,417		$	3,570,753
Motorcycles	584,096			545,646			576,068
Global Adjacent Markets	461,255			444,644			396,764
Aftermarket	906,751			889,177			884,892
Boats	621,353			279,656			—
Total sales	$	6,782,518		$	6,078,540		$	5,428,477
Gross profit
ORV/Snowmobiles	1,204,288			1,113,908			1,054,557
Motorcycles	44,065			63,045			16,697
Global Adjacent Markets	129,939			116,583			94,920
Aftermarket	222,712			234,365			225,498
Boats	124,613			46,252			—
Corporate	(76,835		)	(72,953		)	(67,021		)
Total gross profit	$	1,648,782		$	1,501,200		$	1,324,651