Harley Davidson 2013 Annual Report Download - page 3

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3
PART I
Note regarding forward-looking statements(1)
The Company intends that certain matters discussed by the Company are “forward-looking statements” intended to
qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-
looking statements can generally be identified as such because the context statement will include words such as the Company
“believes,” “anticipates,” “expects,” “plans,” “estimates”, or words of similar meaning. Similarly, statements that describe
future plans, objectives, outlooks, targets, guidance or goals are also forward-looking statements. Such forward-looking
statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated
as of the date of this report. Certain of such risks and uncertainties are described in close proximity to such statements or
elsewhere in this report, including under the caption “Risk Factors” in Item 1A of this report and under “Cautionary
Statements” in Item 7 of this report. Shareholders, potential investors, and other readers are urged to consider these factors in
evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The
forward-looking statements included in this report are made as of the date indicated or, if a date is not indicated, as of the date
of the filing of this report (February 20, 2014), and the Company disclaims any obligation to publicly update such forward-
looking statements to reflect subsequent events or circumstances.
Item 1. Business
Harley-Davidson, Inc. was incorporated in 1981, at which time it purchased the Harley-Davidson® motorcycle business
from AMF Incorporated in a management buyout. In 1986, Harley-Davidson, Inc. became publicly held. Unless the context
otherwise requires, all references to the “Company” include Harley-Davidson, Inc. and all of its subsidiaries. The Company
operates in two segments: the Motorcycles & Related Products (Motorcycles) segment and the Financial Services (Financial
Services) segment. The Company’s reportable segments are strategic business units that offer different products and services.
They are managed separately based on the fundamental differences in their operations.
The Motorcycles segment designs, manufactures and sells at wholesale street-legal Harley-Davidson motorcycles as well
as a line of motorcycle parts, accessories, general merchandise and related services. The Company’s products are sold to retail
customers through a network of independent dealers. The Company conducts business on a global basis, with sales in North
America, Europe/Middle East/Africa (EMEA), Asia-Pacific and Latin America.
In 2010, the Company completed the sale of MV Agusta (MV). The results of MV have been presented as a discontinued
operation for all periods.
The Motorcycles segment discussion that follows is specific to the Harley-Davidson brand unless otherwise specifically
noted.
The Financial Services segment consists of Harley-Davidson Financial Services (HDFS). HDFS provides wholesale and
retail financing and provides insurance and insurance-related programs primarily to Harley-Davidson dealers and their retail
customers. HDFS conducts business principally in the United States and Canada.
See Note 20 of Notes to Consolidated Financial Statements for financial information related to the Company’s business
segments.
Motorcycles and Related Products
Motorcycles – The primary business of the Motorcycles segment is to design, manufacture and sell at wholesale street-
legal Harley-Davidson motorcycles as well as a line of motorcycle parts, accessories, general merchandise and related services.
The Company’s worldwide motorcycle sales generated approximately 77%, 76% and 76% of the total net revenue in the
Motorcycles segment during 2013, 2012 and 2011, respectively.
Harley-Davidson motorcycles feature classic styling, innovative design, distinctive sound, and superior quality with the
ability to customize. The Company manufactures six platforms of motorcycles: Touring, Dyna®, Softail®, Sportster®, V-Rod®
and Street. The first four of these motorcycle platforms are powered by air-cooled, or combination air-and liquid-cooled, twin-
cylinder engines with a 45-degree "V" configuration. The V-Rod® and Street platforms are powered by liquid-cooled, twin-
cylinder engines with a 60-degree "V" configuration. Street platform motorcycles (the Harley-Davidson StreetTM 500 and Street
750) are expected to be available for sale at retail in select markets beginning in the second quarter of 2014. The Company
primarily competes in the market segment consisting of street-legal motorcycles with engine displacements of 601cc and
greater. The Company's engines currently range in displacement from 494cc to 1802cc.