Segment Information

3 Months Ended

Mar. 31, 2020

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. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. 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.

Beginning in the first quarter of 2020, certain costs, primarily incentive-based compensation costs, previously classified as "Corporate" in the Company's segment gross profit results were allocated to the respective operating segments results. The comparative 2019 gross profit results for ORV/Snowmobiles, Motorcycles, Global Adjacent Markets, Aftermarket, Boats, and Corporate were reclassified for comparability.

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, including certain unallocated manufacturing costs. Segment sales and gross profit data are summarized as follows (in millions):



	Three months ended March 31,
	2020			2019
Sales
ORV/Snowmobiles	$	823.7		$	867.5
Motorcycles	126.6			117.9
Global Adjacent Markets	98.3			105.0
Aftermarket	202.1			220.5
Boats	154.5			184.8
Total sales	$	1,405.2		$	1,495.7
Gross profit
ORV/Snowmobiles	$	201.7		$	240.1
Motorcycles	(1.0		)	3.7
Global Adjacent Markets	26.9			29.6
Aftermarket	46.3			56.5
Boats	29.7			36.2
Corporate	(10.7		)	(13.6		)
Total gross profit	$	292.9		$	352.5