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Reportable Segments and Geographic Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Reportable Segments and Geographic Information Reportable Segments and Geographic Information
The Company’s reportable segments and significant segment expenses are determined based on how the Company’s Chief Operating Decision Maker (CODM) assesses performance and decides how to allocate resources for the Company.

The Company’s Chairman, President and Chief Executive Officer, is the Company’s CODM. Operating income is the measure of profit and loss used by the CODM to assess performance and to decide how to allocate resources for each of the Company’s reportable segments.

Operating income is used to monitor actual results versus planned and prior period results for each segment based on their respective profitability objectives and business models. Operating income is also used to allocate human and capital resources among the reportable segments and to other corporate actions for returning capital to shareholders such as repurchasing common stock or paying dividends. Operating income is also a key metric used to establish and pay variable compensation to employees at all levels.
Reportable Segments – The Company operates with three segments: Harley-Davidson Motor Company (HDMC), LiveWire, and Harley-Davidson Financial Services (HDFS). 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.
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, through online sales and direct to customers through select international partners primarily in Europe. 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 and LiveWire motorcycles. HDFS also works with certain unaffiliated third parties to provide motorcycle insurance and voluntary 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):
202420232022
HDMC:
Revenue$4,121,906 $4,844,594 $4,887,672 
Motorcycles and related products cost of goods sold2,967,068 3,278,052 3,359,799 
Gross profit1,154,838 1,566,542 1,527,873 
Selling, administrative and engineering expense:
People expenses(a)
364,416 417,109 358,105 
Marketing and advertising expenses(b)
123,811 124,551 96,820 
Other segment items(c)
388,767 363,731 395,861 
Operating income
277,844 661,151 677,087 
LiveWire:
     Revenue26,358 38,298 46,833 
     Motorcycles and related products cost of goods sold38,872 44,254 43,929 
     Gross profit(12,514)(5,956)2,904 
     Selling, administrative and engineering expense97,125 110,853 88,219 
     Operating loss(109,639)(116,809)(85,315)
HDFS:
Financial services revenue1,038,538 953,586 820,625 
Financial services interest expense371,766 332,380 217,653 
Financial services provision for credit losses247,225 227,158 145,133 
Selling and administrative expense171,125 159,306 140,333 
Operating income248,422 234,742 317,506 
Operating income $416,627 $779,084 $909,278 
(a)People expenses include salary and related fringe costs, including payroll tax and health and welfare costs, as well as short-term incentive compensation and long-term incentive compensation, primarily in the form of share-based awards.
(b)Marketing and advertising expenses include costs related to digital and print media, social media, website maintenance, consumer experiences, product placement, sponsorships and market research.
(c)Other segment items for HDMC include depreciation, warranty, maintenance and facilities costs, supplies and materials, and other professional services.  These costs are all included in Selling, administrative and engineering expense.
Additional segment information is set forth below as of December 31 (in thousands): 
HDMCLiveWireHDFSConsolidated
2024:
Assets$3,630,710 $147,960 $8,102,909 $11,881,579 
Depreciation and amortization$141,275 $10,041 $9,357 $160,673 
Capital expenditures$186,639 $8,068 $1,856 $196,563 
2023:
Assets$3,644,016 $266,404 $8,230,134 $12,140,554 
Depreciation and amortization$143,355 $5,832 $8,925 $158,112 
Capital expenditures$188,863 $13,462 $5,079 $207,404 
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 
Geographic Information – Included in the Consolidated financial statements are the following amounts relating to geographic locations for the years ended December 31 (in thousands): 
202420232022
HDMC revenue(a):
United States$2,814,482 $3,289,227 $3,253,875 
EMEA584,490 637,492 693,073 
Canada210,526 220,158 216,389 
Japan128,432 200,539 175,292 
Australia and New Zealand119,949 127,352 147,551 
Other countries264,027 369,826 401,492 
$4,121,906 $4,844,594 $4,887,672 
LiveWire revenue(a):
United States21,461 31,483 36,256 
International4,897 6,815 10,577 
$26,358 $38,298 $46,833 
HDFS revenue(a):
United States$1,006,574 $922,758 $794,912 
Canada21,167 18,220 16,276 
Europe6,503 7,343 6,071 
Other countries4,294 5,265 3,366 
$1,038,538 $953,586 $820,625 
Long-lived assets(b):
United States$640,837 $644,620 $611,421 
Thailand113,094 82,197 72,474 
Other countries3,141 4,907 5,991 
116,235 87,104 78,465 
$757,072 $731,724 $689,886 
(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.