Segment Reporting

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company’s reportable segments are based on the Company’s method of internal reporting and are comprised of various product offerings that serve multiple end markets. 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 based, in part, on the reporting and review process used by the Company’s chief operating decision maker (“CODM”), its Chief Executive Officer. The Company primarily uses gross profit, a measure that is determined in accordance with U.S. GAAP, to evaluate segment profitability and make decisions about resource allocation. The Company’s CODM does not utilize segment asset information to evaluate performance and make resource allocation decisions, and thus such disclosures are not provided. The Company has three operating segments: 1) Off Road, 2) On Road, and 3) Marine, which are all reportable segments. The Corporate amounts include costs that are not allocated to segments, including certain unallocated manufacturing costs, the impacts of certain foreign currency transactions, and certain unallocated incentive compensation costs. The Company’s consolidated sales are derived entirely from the operations of its three reportable segments.

The Company has determined its significant segment expense categories based on amounts regularly provided to the Company’s CODM to evaluate segment profitability and drive strategic decision making. Reportable segment sales and

significant reportable segment expense categories and amounts included in the Company’s measure of segment profit or loss, gross profit, were as follows (in millions):

	For the Year Ended December 31, 2024
	Off Road		On Road		Marine		Total
Sales	$	5,706.7	$	987.8	$	480.9	$	7,175.4
Purchased materials, logistics and labor	4,250.3		744.5		382.4		5,377.2
Depreciation and amortization	170.1		34.1		8.1		212.3
Warranty	125.8		29.8		9.8		165.4
Reportable segment gross profit	$	1,160.5	$	179.4	$	80.6	$	1,420.5
Other gross profit							46.3
Total gross profit							$	1,466.8

	For the Year Ended December 31, 2023
	Off Road		On Road		Marine		Total
Sales	$	6,984.4	$	1,184.6	$	765.4	$	8,934.4
Purchased materials, logistics and labor	5,149.7		867.9		574.2		6,591.8
Depreciation and amortization	156.6		29.3		6.6		192.5
Warranty	146.5		47.0		15.6		209.1
Reportable segment gross profit	$	1,531.6	$	240.4	$	169.0	$	1,941.0
Other gross profit							18.9
Total gross profit							$	1,959.9

	For the Year Ended December 31, 2022
	Off Road		On Road		Marine		Total
Sales	$	6,436.2	$	1,163.4	$	989.4	$	8,589.0
Purchased materials, logistics and labor	4,662.4		884.5		742.3		6,289.2
Depreciation and amortization	126.0		32.6		5.5		164.1
Warranty	124.4		40.0		19.1		183.5
Reportable segment gross profit	$	1,523.4	$	206.3	$	222.5	$	1,952.2
Other gross profit							7.3
Total gross profit							$	1,959.5