Segment Information

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment Information

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. 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 five operating segments: 1) ORV, 2) Snowmobiles, 3) Motorcycles, 4) Global Adjacent Markets and 5) Aftermarket, and four reportable segments: 1) ORV/Snowmobiles, 2) Motorcycles, 3) Global Adjacent Markets, and 4) Aftermarket.

Through December 31, 2016, the Company reported under three segments for segment reporting. However, during the first quarter ended March 31, 2017, as a result of the acquisition of TAP, the Company established a new reporting segment, Aftermarket, which includes the results of TAP as well as the other aftermarket brands. The comparative 2016 results were reclassified to reflect the new reporting segment structure.

The ORV/Snowmobiles segment includes the aggregated results of our ORV and Snowmobiles operating segments. The Motorcycles, Global Adjacent Markets and Aftermarket 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):

	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Sales
ORV/Snowmobiles	$	1,007,392		$	895,550		$	2,577,003		$	2,402,985
Motorcycles	155,059			181,181			473,345			594,840
Global Adjacent Markets	91,575			78,485			280,152			243,553
Aftermarket	224,700			29,851			666,928			57,462
Total sales	$	1,478,726		$	1,185,067		$	3,997,428		$	3,298,840
Gross profit
ORV/Snowmobiles	$	296,904		$	221,595		$	776,013		$	656,076
Motorcycles	10,354			20,301			11,589			86,475
Global Adjacent Markets	15,983			21,828			65,297			66,163
Aftermarket	63,239			10,591			164,721			18,272
Corporate	(22,518		)	(13,545		)	(60,781		)	(34,135		)
Total gross profit	$	363,962		$	260,770		$	956,839		$	792,851