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Reportable Segments and Geographic Information | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Reportable Segments and Geographic Information | Reportable Segments and Geographic Information Reportable Segments – Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The Company operates in two segments: the Motorcycles and Related Products (Motorcycles) and Financial Services. 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 Motorcycles segment consists of HDMC which designs, manufactures and sells Harley-Davidson motorcycles as well as motorcycle parts, accessories, general merchandise and services. The Company’s products are sold to retail customers primarily through a network of independent dealers. The Company conducts business on a global basis, with sales in the U.S., Canada, Europe/Middle East/Africa (EMEA), Asia Pacific, and Latin America. The Financial Services segment consists of HDFS which 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):
| 2019 |  | 2018 |  | 2017
Motorcycles and Related Products: |  |  |  |  |
Motorcycles revenue | $ | 4,572,678 |  |  | $ | 4,968,646 |  |  | $ | 4,915,027 |
Gross profit | 1,342,880 |  |  | 1,616,850 |  |  | 1,642,697 |
Selling, administrative and engineering expense | 1,020,907 |  |  | 1,101,086 |  |  | 1,035,921 |
Restructuring expense | 32,353 |  |  | 93,401 |  |  | — |
Operating income | 289,620 |  |  | 422,363 |  |  | 606,776 |
Financial Services: |  |  |  |  |
Financial Services revenue | 789,111 |  |  | 748,229 |  |  | 732,197 |
Financial Services expense | 523,123 |  |  | 457,069 |  |  | 456,892 |
Operating income | 265,988 |  |  | 291,160 |  |  | 275,305 |
Operating income | $ | 555,608 |  |  | $ | 713,523 |  |  | $ | 882,081 |
Financial Services revenue includes $10.0 million, $9.0 million and $6.9 million of interest paid by HDMC to HDFS on wholesale finance receivables in 2019, 2018 and 2017, respectively. The offsetting cost of these interest incentives was recorded as a reduction to Motorcycles revenue. Additional segment information is set forth below as of December 31, (in thousands):
| Motorcycles |  | Financial Services |  | Consolidated
2019: |  |  |  |  |
Assets | $ | 2,548,115 |  |  | $ | 7,980,044 |  |  | $ | 10,528,159 |
Depreciation and amortization | $ | 223,656 |  |  | $ | 8,881 |  |  | $ | 232,537 |
Capital expenditures | $ | 176,264 |  |  | $ | 5,176 |  |  | $ | 181,440 |
2018: |  |  |  |  |
Assets | $ | 2,562,931 |  |  | $ | 8,102,733 |  |  | $ | 10,665,664 |
Depreciation and amortization | $ | 260,707 |  |  | $ | 4,156 |  |  | $ | 264,863 |
Capital expenditures | $ | 197,905 |  |  | $ | 15,611 |  |  | $ | 213,516 |
2017: |  |  |  |  |
Assets | $ | 2,449,603 |  |  | $ | 7,523,069 |  |  | $ | 9,972,672 |
Depreciation and amortization | $ | 215,639 |  |  | $ | 6,549 |  |  | $ | 222,188 |
Capital expenditures | $ | 193,204 |  |  | $ | 13,090 |  |  | $ | 206,294 |
Geographic Information – Included in the Consolidated financial statements are the following amounts relating to geographic locations for the years ended December 31, (in thousands):
| 2019 |  | 2018 |  | 2017
Motorcycles revenue(a): |  |  |  |  |
United States | $ | 2,971,223 |  |  | $ | 3,159,049 |  |  | $ | 3,215,513 |
EMEA | 743,385 |  |  | 893,589 |  |  | 790,725 |
Canada | 210,381 |  |  | 230,211 |  |  | 232,883 |
Japan | 156,644 |  |  | 161,370 |  |  | 180,938 |
Australia and New Zealand | 117,525 |  |  | 147,561 |  |  | 168,670 |
Other countries | 373,520 |  |  | 376,866 |  |  | 326,298 |
| $ | 4,572,678 |  |  | $ | 4,968,646 |  |  | $ | 4,915,027 |
Financial Services revenue(a): |  |  |  |  |
United States | $ | 754,535 |  |  | $ | 712,898 |  |  | $ | 698,383 |
Canada | 22,799 |  |  | 23,120 |  |  | 22,580 |
Europe | 8,435 |  |  | 8,411 |  |  | 6,845 |
Other countries | 3,342 |  |  | 3,800 |  |  | 4,389 |
| $ | 789,111 |  |  | $ | 748,229 |  |  | $ | 732,197 |
Long-lived assets(b): |  |  |  |  |
United States | $ | 757,594 |  |  | $ | 838,446 |  |  | $ | 912,032 |
International: |  |  |  |  |
Thailand | 78,651 |  |  | 50,331 |  |  | 31,087 |
Other countries | 11,137 |  |  | 15,355 |  |  | 24,662 |
| 89,788 |  |  | 65,686 |  |  | 55,749 |
| $ | 847,382 |  |  | $ | 904,132 |  |  | $ | 967,781 |
(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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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