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Revenue Recognition | 6 Months Ended
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Jun. 30, 2025
Revenue Recognition [Abstract] |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or service to a customer. Revenue is measured based on the amount of consideration that the Company expects to be entitled to in exchange for the goods or services transferred. Sales, value add, and other taxes that are collected from a customer concurrent with revenue-producing activities are excluded from revenue. Revenue from goods and services transferred to customers at a point-in-time accounts for the majority of the Company’s revenue. Revenue from products or services transferred over time is discussed in the contract liabilities section below. The following tables disaggregate the Company's revenue by major product type and geography (in millions):
| Three months ended June 30, 2025
| Off Road |  | On Road |  | Marine |  | Total
Revenue by product type |  |  |  |  |  |  |
Wholegoods | $ | 1,022.4 |  | $ | 227.9 |  | $ | 155.1 |  | $ | 1,405.4
PG&A | 386.0 |  | 61.1 |  | 0.2 |  | 447.3
Total revenue | $ | 1,408.4 |  | $ | 289.0 |  | $ | 155.3 |  | $ | 1,852.7
Revenue by geography |  |  |  |  |  |  |
United States | $ | 1,171.7 |  | $ | 152.8 |  | $ | 153.4 |  | $ | 1,477.9
Canada | 96.3 |  | 8.1 |  | 1.3 |  | 105.7
EMEA | 83.2 |  | 115.5 |  | — |  | 198.7
APLA | 57.2 |  | 12.6 |  | 0.6 |  | 70.4
Total revenue | $ | 1,408.4 |  | $ | 289.0 |  | $ | 155.3 |  | $ | 1,852.7
| Three months ended June 30, 2024
| Off Road |  | On Road |  | Marine |  | Total
Revenue by product type |  |  |  |  |  |  |
Wholegoods | $ | 1,135.1 |  | $ | 238.8 |  | $ | 133.9 |  | $ | 1,507.8
PG&A | 398.7 |  | 54.5 |  | 0.2 |  | 453.4
Total revenue | $ | 1,533.8 |  | $ | 293.3 |  | $ | 134.1 |  | $ | 1,961.2
Revenue by geography |  |  |  |  |  |  |
United States | $ | 1,285.9 |  | $ | 144.4 |  | $ | 130.4 |  | $ | 1,560.7
Canada | 99.3 |  | 14.0 |  | 3.1 |  | 116.4
EMEA | 84.3 |  | 120.8 |  | 0.1 |  | 205.2
APLA | 64.3 |  | 14.1 |  | 0.5 |  | 78.9
Total revenue | $ | 1,533.8 |  | $ | 293.3 |  | $ | 134.1 |  | $ | 1,961.2
| Six months ended June 30, 2025
| Off Road |  | On Road |  | Marine |  | Total
Revenue by product type |  |  |  |  |  |  |
Wholegoods | $ | 1,859.7 |  | $ | 400.7 |  | $ | 270.4 |  | $ | 2,530.8
PG&A | 747.3 |  | 110.1 |  | 0.3 |  | 857.7
Total revenue | $ | 2,607.0 |  | $ | 510.8 |  | $ | 270.7 |  | $ | 3,388.5
Revenue by geography |  |  |  |  |  |  |
United States | $ | 2,134.3 |  | $ | 270.1 |  | $ | 266.2 |  | $ | 2,670.6
Canada | 184.4 |  | 15.6 |  | 3.3 |  | 203.3
EMEA | 177.0 |  | 201.6 |  | — |  | 378.6
APLA | 111.3 |  | 23.5 |  | 1.2 |  | 136.0
Total revenue | $ | 2,607.0 |  | $ | 510.8 |  | $ | 270.7 |  | $ | 3,388.5
| Six months ended June 30, 2024
| Off Road |  | On Road |  | Marine |  | Total
Revenue by product type |  |  |  |  |  |  |
Wholegoods | $ | 2,111.4 |  | $ | 464.3 |  | $ | 257.4 |  | $ | 2,833.1
PG&A | 758.1 |  | 106.2 |  | 0.2 |  | 864.5
Total revenue | $ | 2,869.5 |  | $ | 570.5 |  | $ | 257.6 |  | $ | 3,697.6
Revenue by geography |  |  |  |  |  |  |
United States | $ | 2,377.2 |  | $ | 276.2 |  | $ | 250.1 |  | $ | 2,903.5
Canada | 185.3 |  | 26.8 |  | 5.7 |  | 217.8
EMEA | 178.7 |  | 243.4 |  | 0.3 |  | 422.4
APLA | 128.3 |  | 24.1 |  | 1.5 |  | 153.9
Total revenue | $ | 2,869.5 |  | $ | 570.5 |  | $ | 257.6 |  | $ | 3,697.6
For the majority of wholegood vehicles, boats, and parts, garments, and accessories (“PG&A”), the Company transfers control and recognizes a sale when it ships the product from its manufacturing facility, distribution center, or vehicle holding center to the customer. The amount of consideration the Company receives and revenue it recognizes varies with changes in marketing incentives and rebates it offers to its customers. Payment terms vary by customer and most of the Company’s sales are financed by the customer under floorplan financing arrangements whereby the Company receives payment within a few days of shipment of the product. When the right of return exists, the Company adjusts the consideration for the estimated effect of returns. The Company estimates expected returns based on historical sales levels, the timing and magnitude of historical sales return levels as a percent of sales, type of product, type of customer, and a projection of this experience into the future. The Company adjusts its estimate of revenue at the earlier of when the most likely amount of consideration it expects to receive changes or when the consideration becomes fixed. Depending on the terms of the arrangement, the Company may also defer the recognition of a portion of the consideration received because it has to satisfy a future obligation. The Company uses an observable price to determine the stand-alone selling price for separate performance obligations. The Company has elected to recognize the cost for freight and shipping as an expense in cost of sales when control over vehicles, boats, or PG&A has transferred to the customer. The Company sells separately-priced extended service contracts (“ESCs”) that extend mechanical coverages beyond the base limited warranty as well as prepaid maintenance agreements to vehicle owners. Including the base limited warranty, these separately-priced service contracts have a duration ranging from 12 months to 84 months. The Company typically receives payment at the inception of the contract and recognizes revenue over the term of the agreement in proportion to the costs expected to be incurred in satisfying the obligations under the contract. Contract liabilities. Contract liabilities relate to deferred revenue recognized for cash consideration received at contract inception in advance of the Company's performance under the respective contract and generally relate to the sale of separately-priced ESCs. The Company finances its self-insured risks related to ESCs. The premiums for ESCs are primarily recognized in income over the term of the agreement in proportion to the costs expected to be incurred in satisfying obligations under the contract. Warranty costs are recognized as incurred. The activity in the deferred revenue reserve for ESCs during the periods presented was as follows (in millions):
| Three months ended June 30, |  | Six months ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Balance at beginning of period | $ | 110.1 |  |  | $ | 112.3 |  |  | $ | 111.3 |  |  | $ | 110.3 |
New contracts sold | 11.0 |  |  | 11.1 |  |  | 23.2 |  |  | 25.3 |
Revenue recognized on existing contracts | (9.1) |  |  | (15.8) |  |  | (22.5) |  |  | (28.0) |
Balance at end of period | $ | 112.0 |  |  | $ | 107.6 |  |  | $ | 112.0 |  |  | $ | 107.6 |
The Company expects to recognize approximately $35.8 million of the unearned amount over the 12 months following June 30, 2025, compared to $34.4 million as of June 30, 2024. These amounts were recorded in accrued expenses in the consolidated balance sheets. The amount recorded in other long-term liabilities totaled $76.2 million and $73.2 million as of June 30, 2025 and 2024, respectively.

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