v3.25.4
Reportable Segments and Geographic Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Reportable Segments and Geographic Information Reportable Segments and Geographic Information
The Company’s reportable segments and significant segment expenses are determined based on how the Company’s Chief Operating Decision Maker (CODM) assesses performance and decides how to allocate resources for the Company.
The Company’s President and Chief Executive Officer is the Company’s CODM. Operating income is the measure of profit and loss used by the CODM to assess performance and to decide how to allocate resources for each of the Company’s reportable segments.
Operating income is used to monitor actual results versus planned and prior period results for each segment based on their respective profitability objectives and business models. Operating income is also used to allocate human and capital resources among the reportable segments and to other corporate actions for returning capital to shareholders such as repurchasing common stock or paying dividends. Operating income is also a key metric used to establish and pay variable compensation to employees at all levels.
Reportable Segments – The Company operates with three segments: Harley-Davidson Motor Company (HDMC), LiveWire, and Harley-Davidson Financial Services (HDFS). 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.
HDMC designs, manufactures and sells motorcycles and also sells motorcycle parts, accessories, and apparel as well as licenses its trademarks. HDMC’s products are sold to retail customers primarily through a network of independent dealers. HDMC conducts business on a global basis, with sales in the U.S., Canada, Europe/Middle East/Africa (EMEA), Asia Pacific, and Latin America.
LiveWire sells electric motorcycles, electric bikes, parts and accessories and apparel in the United States and certain international markets. Electric motorcycles, related parts and accessories and apparel are sold at wholesale to a network of independent dealers and at retail through a company-owned dealer, through online sales and direct to customers through select international partners primarily in Europe. Electric bikes and related parts and accessories are sold through independent retail partners and distributors and direct to consumers online.
HDFS is engaged in the business of financing and servicing wholesale inventory receivables and retail consumer loans, primarily for the purchase of Harley-Davidson and LiveWire motorcycles. HDFS also works with certain unaffiliated third parties to provide motorcycle insurance and voluntary 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):
202520242023
HDMC:
Revenue$3,578,308 $4,121,906 $4,844,594 
Motorcycles and related products cost of goods sold2,711,716 2,967,068 3,278,052 
Gross profit866,592 1,154,838 1,566,542 
Selling, administrative and engineering expense:
People expenses(a)
342,336 364,416 417,109 
Marketing and advertising expenses(b)
158,250 123,811 124,551 
Other segment items(c)
394,737 388,767 363,731 
Operating income
(28,731)277,844 661,151 
LiveWire:
     Revenue25,671 26,358 38,298 
     Motorcycles and related products cost of goods sold30,105 38,872 44,254 
     Gross profit(4,434)(12,514)(5,956)
     Selling, administrative and engineering expense70,582 97,125 110,853 
     Operating loss(75,016)(109,639)(116,809)
HDFS:
Financial services revenue869,196 1,038,538 953,586 
Financial services interest expense388,636 371,766 332,380 
Financial services provision for credit losses(191,392)247,225 227,158 
Selling and administrative expense181,570 171,125 159,306 
Operating income490,382 248,422 234,742 
Operating income $386,635 $416,627 $779,084 
(a)People expenses include salary and related fringe costs, including payroll tax and health and welfare costs, as well as short-term incentive compensation and long-term incentive compensation, primarily in the form of share-based awards.
(b)Marketing and advertising expenses include costs related to digital and print media, social media, website maintenance, consumer experiences, product placement, sponsorships and market research.
(c)Other segment items for HDMC include depreciation, warranty, maintenance and facilities costs, supplies and materials, and other professional services.  These costs are all included in Selling, administrative and engineering expense.
Additional segment information is set forth below as of December 31 (in thousands): 
HDMCLiveWireHDFSConsolidated
2025:
Assets$3,866,701 $146,518 $4,031,596 $8,044,815 
Depreciation and amortization$152,872 $10,141 $9,358 $172,371 
Capital expenditures$148,859 $3,811 $1,009 $153,679 
2024:
Assets$3,630,710 $147,960 $8,102,909 $11,881,579 
Depreciation and amortization$141,275 $10,041 $9,357 $160,673 
Capital expenditures$186,639 $8,068 $1,856 $196,563 
2023:
Assets$3,644,016 $266,404 $8,230,134 $12,140,554 
Depreciation and amortization$143,355 $5,832 $8,925 $158,112 
Capital expenditures$188,863 $13,462 $5,079 $207,404 
Geographic Information – Included in the Consolidated financial statements are the following amounts relating to geographic locations for the years ended December 31 (in thousands): 
202520242023
HDMC revenue(a):
United States$2,404,505 $2,814,482 $3,289,227 
EMEA538,781 584,490 637,492 
Canada161,449 210,526 220,158 
Japan112,376 128,432 200,539 
Australia and New Zealand105,855 119,949 127,352 
Other countries255,342 264,027 369,826 
$3,578,308 $4,121,906 $4,844,594 
LiveWire revenue(a):
United States19,053 21,461 31,483 
International6,618 4,897 6,815 
$25,671 $26,358 $38,298 
HDFS revenue(a):
United States$843,453 $1,006,574 $922,758 
Canada12,775 21,167 18,220 
Europe8,056 6,503 7,343 
Other countries4,912 4,294 5,265 
$869,196 $1,038,538 $953,586 
Long-lived assets(b):
United States$613,500 $640,837 $644,620 
Thailand115,726 113,094 82,197 
Other countries20,998 3,141 4,907 
136,724 116,235 87,104 
$750,224 $757,072 $731,724 
(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.