Harley Davidson 2014 Annual Report Download - page 5

The European 601+cc motorcycle market is slightly larger than the U.S. market and customer preferences differ from
those of U.S. customers. For example, the sportbike category represented nearly 38% of the European 601+cc market in 2014
while the touring category represented 26% of the European 601+cc motorcycle market.
The following chart includes European retail registration data for 601+cc motorcycles for the years 2012 through 2014:
European Motorcycle Registration Data(a)(b)
601+cc (Units in thousands)
2014 2013 2012
Total new motorcycle registrations 319.8 281.8 300.4
Harley-Davidson new registrations 38.5 36.1 36.2
12.0%12.8%12.1%
€
(a) Data includes on-road 601+cc models. On-road 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 will differ 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 retail sales data in Item 7 includes sales of Street
500 motorcycles which are excluded from the 601+cc units included in the retail registration data in this table. In
addition, small differences may arise related 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 15.7%, 16.6%
and 17.4% of net revenue in the Motorcycles segment in 2014, 2013 and 2012, respectively.
General Merchandise – Worldwide General Merchandise net revenue, which includes revenue from MotorClothes®
apparel and riding gear, comprised 5.1%, 5.6% and 6.1% of net revenue in the Motorcycles segment in 2014, 2013 and 2012,
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, 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 $47.1 million, $58.9 million and $49.1 million in 2014, 2013 and
2012, 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-DavidsonTM 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 $1.79 billion, $1.70 billion and $1.58 billion, or
approximately 32%, 32% and 32% of net revenue of the Motorcycles segment, during 2014, 2013 and 2012, 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
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