Segment Information

3 Months Ended

Mar. 31, 2019

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 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.

Through June 30, 2018, the Company reported under four segments for segment reporting. However, during the third quarter ended September 30, 2018, as a result of the Boat Holdings acquisition, the Company established a new reporting segment, Boats.

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 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 March 31,
	2019			2018
Sales
ORV/Snowmobiles	$	867,447		$	832,564
Motorcycles	117,942			131,557
Global Adjacent Markets	104,956			113,327
Aftermarket	220,535			220,025
Boats	184,810			—
Total sales	$	1,495,690		$	1,297,473
Gross profit
ORV/Snowmobiles	$	252,235		$	243,561
Motorcycles	6,962			16,568
Global Adjacent Markets	29,829			31,258
Aftermarket	56,475			58,452
Boats	36,164			—
Corporate	(29,217		)	(26,358		)
Total gross profit	$	352,448		$	323,481