Harley Davidson 2013 Annual Report Download - page 5

5
The European 601+cc motorcycle market is slightly smaller than the U.S. market and customer preferences differ from
those of U.S. customers. For example, in Europe, the sportbike category represented nearly 31% of the total 601+cc market in
2013 while the touring category represented 41% of the European 601+cc motorcycle market.
The following chart includes European retail registration data for Harley-Davidson for the years 2011 through 2013:
European Motorcycle Registration Data(a)(b)
601+cc (Units in thousands)
2013 2012 2011
Total new motorcycle registrations 281.8 300.4 328.5
Harley-Davidson new registrations 36.1 36.2 39.9
12.8% 12.1% 12.1%
(a) Data includes street-legal 601+cc models. Street-legal 601+cc models include on-highway and dual purpose models and
three-wheeled vehicles.
(b) Europe data includes retail sales in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg,
Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. Industry retail motorcycle
registration data is derived from information provided by Association des Constructeurs Europeens de Motocycles
(ACEM), an independent agency. This third party data is subject to revision and update. The retail registration data for
Harley-Davidson motorcycles presented in this table may differ slightly from the Harley-Davidson retail sales data
presented in Item 7 of this report. The Company’s source for retail sales data in Item 7 of this report is sales and warranty
registrations provided by Harley-Davidson dealers as compiled by the Company. The differences are not significant and
generally relate to the timing of data submissions to the independent sources.
Parts & Accessories – Parts and Accessories (P&A) products are comprised of replacement parts (Genuine Motor Parts)
and mechanical and cosmetic accessories (Genuine Motor Accessories). Worldwide P&A net revenue comprised 16.6%, 17.4%
and 17.5% of net revenue in the Motorcycles segment in 2013, 2012 and 2011, respectively.
General Merchandise – Worldwide General Merchandise net revenue, which includes revenue from MotorClothes®
apparel and riding gear, comprised 5.6%, 6.1% and 5.9% of net revenue in the Motorcycles segment in 2013, 2012 and 2011,
respectively.
Licensing – The Company creates an awareness of the Harley-Davidson brand among its customers and the non-riding
public through a wide range of products for enthusiasts by licensing the name “Harley-Davidson” and other trademarks owned
by the Company. The Company’s licensed products include t-shirts, eyewear, vehicle accessories, jewelry, small leather goods,
toys, footwear and numerous other products. The majority of licensing activity currently occurs in the U.S. Royalty revenues
from licensing, included in Motorcycles segment net revenue, were $58.9 million, $49.1 million and $43.2 million in 2013,
2012 and 2011, respectively.
Harley-Davidson Museum – The Company operates the Harley-Davidson Museum (Museum) in Milwaukee, Wisconsin.
The Museum is a unique destination that the Company believes builds and strengthens bonds between riders and the Company
and enhances the brand among the public at large. The 130,000 square foot campus houses the Museum and archives, a
restaurant, café, retail store and several special event spaces.
Other Services – The Company also provides a variety of services to its independent dealers including motorcycle service
and business management training programs and customized dealer software packages. Motorcycle rentals are available
through many of the Company’s independent dealers under the Company’s Authorized Rentals Program. Motorcycle rider
training is available through the Company's Harley-Davidson Riding Academy.
International Sales – The Company’s revenue from the sale of motorcycles and related products to independent dealers
and distributors located outside of the United States was approximately $1.70 billion, $1.58 billion and $1.51 billion, or
approximately 32%, 32% and 32% of net revenue of the Motorcycles segment, during 2013, 2012 and 2011, respectively.
Patents and Trademarks – The Company strategically manages its portfolio of patents, trade secrets, copyrights,
trademarks and other intellectual property.
The Company and its subsidiaries own, and continue to obtain, patent rights that relate to its motorcycles and related
products and processes for their production. Certain technology-related intellectual property is also protected, where
appropriate, by license agreements, confidentiality agreements or other agreements with suppliers, employees and other third