Segment Reporting

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Reporting

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.

The ORV/Snowmobiles reporting 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, and other manufacturing adjustments. 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 millions):

	For the Years Ended December 31,
	2021		2020		2019
Sales
ORV/Snowmobiles	$	5,186.2	$	4,533.3	$	4,209.1
Motorcycles	721.6		581.7		584.1
Global Adjacent Markets	599.8		424.6		461.3
Aftermarket	930.4		884.9		906.7
Boats	760.2		603.4		621.3
Total sales	$	8,198.2	$	7,027.9	$	6,782.5
Gross profit
ORV/Snowmobiles	1,226.3		1,218.4		1,145.5
Motorcycles	52.3		20.0		30.0
Global Adjacent Markets	162.3		116.4		128.8
Aftermarket	247.2		222.8		222.7
Boats	170.6		116.4		124.6
Corporate	84.0		16.2		(2.8)
Total gross profit	$	1,942.7	$	1,710.2	$	1,648.8

On January 1, 2022, the Company began management of its portfolio of businesses under a new basis; changing from the previous basis described herein. Starting in the first quarter of 2022, the Company expects to report its results under the new basis with the following reportable segments: Off-Road, On-Road, Marine, and Aftermarket. The new basis is intended to create a simplified reporting structure to provide better focus and allow for resources to be best leveraged for future growth and profitability improvement.