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Reportable Segments and Geographic Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Reportable Segments and Geographic Information Reportable Segments and Geographic Information
Reportable Segments – Historically, the Company has operated with two segments: Motorcycles and Related Products (Motorcycles) and Financial Services. In connection with the LiveWire Transaction that closed on September 26, 2022, the Company reorganized its business into three segments: Harley-Davidson Motor Company (HDMC), LiveWire, and Harley-Davidson Financial Services (HDFS) during the fourth quarter of 2022. The Company's reportable segments are strategic business units that offer different products and services and are managed separately based on the fundamental differences in their operations. The Financial Services segment was renamed the HDFS segment but remains unchanged from periods prior to the reorganization. The change has been retrospectively reflected in the periods presented below.
HDMC designs, manufactures and sells motorcycles and also sells motorcycle parts, accessories, and apparel as well as licenses its trademarks. HDMC’s products are sold to retail customers primarily through a network of independent dealers.
HDMC conducts business on a global basis, with sales in the U.S., Canada, Europe/Middle East/Africa (EMEA), Asia Pacific, and Latin America.
LiveWire sells electric motorcycles, electric balance bikes for kids, parts and accessories and apparel in the United States and certain international markets. Electric motorcycles, related parts and accessories and apparel are sold at wholesale to a network of independent dealers and at retail through a company-owned dealer and through online sales. Electric balance bikes and related parts and accessories are sold through independent retail partners and distributors and direct to consumers online.
HDFS is engaged in the business of financing and servicing wholesale inventory receivables and retail consumer loans, primarily for the purchase of Harley-Davidson motorcycles. HDFS also works with certain unaffiliated insurance companies to provide motorcycle insurance and protection products to motorcycle owners. HDFS conducts business principally in the U.S. and Canada.
Selected segment information is set forth below for the years ended December 31, (in thousands):
202220212020
HDMC:
Revenue$4,887,672 $4,504,434 $3,233,191 
Gross profit1,527,873 1,299,527 853,265 
Selling, administrative and engineering expense851,330 819,979 843,222 
Restructuring (benefit) expense(544)2,741 119,110 
Operating income (loss) 677,087 476,807 (109,067)
LiveWire:
     Revenue46,833 35,806 30,863 
     Gross profit2,904 (2,574)(24,956)
     Selling, administrative and engineering expense88,219 65,608 52,099 
     Operating loss(85,315)(68,182)(77,055)
HDFS:
Financial services revenue820,625 796,068 790,323 
Financial services expense503,119 380,580 583,623 
Restructuring expense— 674 10,899 
Operating income317,506 414,814 195,801 
Operating income $909,278 $823,439 $9,679 
HDFS revenue includes $6.1 million of interest paid by HDMC to HDFS on wholesale finance receivables in 2020. The offsetting cost of these interest incentives was recorded as a reduction to HDMC revenue. HDFS did not earn any interest from HDMC on wholesale finance receivables in 2022 or 2021.
Additional segment information is set forth below as of December 31, (in thousands): 
HDMCLiveWireHDFSConsolidated
2022:
Assets$3,254,309 $351,422 $7,886,745 $11,492,476 
Depreciation and amortization$138,875 $4,401 $8,666 $151,942 
Capital expenditures$133,191 $14,081 $4,397 $151,669 
2021:
Assets$3,246,340 $61,952 $7,742,763 $11,051,055 
Depreciation and amortization$151,251 $4,718 $9,216 $165,185 
Capital expenditures$106,044 $9,951 $4,186 $120,181 
2020:
Assets$2,440,775 $51,740 $9,518,086 $12,010,601 
Depreciation and amortization$173,171 $3,942 $8,602 $185,715 
Capital expenditures$125,555 $3,243 $2,252 $131,050 
Geographic Information – Included in the Consolidated financial statements are the following amounts relating to geographic locations for the years ended December 31, (in thousands): 
202220212020
HDMC revenue(a):
United States$3,253,875 $2,996,471 $2,022,389 
EMEA693,073 703,048 583,342 
Canada216,389 182,230 138,216 
Japan175,292 150,138 96,442 
Australia and New Zealand147,551 134,301 107,459 
Other countries401,492 338,246 285,343 
$4,887,672 $4,504,434 $3,233,191 
LiveWire revenue(a):
United States36,256 24,633 21,462 
International10,577 11,173 9,401 
$46,833 $35,806 $30,863 
HDFS revenue(a):
United States$794,912 $765,917 $757,730 
Canada16,276 18,613 20,353 
Europe6,071 7,464 8,300 
Other countries3,366 4,074 3,940 
$820,625 $796,068 $790,323 
Long-lived assets(b):
United States$611,421 $595,375 $644,224 
Thailand72,474 81,927 94,749 
Other countries5,991 6,682 4,811 
78,465 88,609 99,560 
$689,886 $683,984 $743,784 
(a)Revenue is attributed to geographic regions based on location of customer.
(b)Long-lived assets include all long-term assets except those specifically excluded under ASC Topic 280, Segment Reporting, such as deferred income taxes and finance receivables.