Harley Davidson 2015 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 18, 2016), and the Company disclaims any obligation to publicly update such forward-
looking statements to reflect subsequent events or circumstances.
Item 1. Business
General
Harley-Davidson Motor Company was founded in 1903. 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. Harley-Davidson, Inc. is the parent company for the groups of companies doing
business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS).
Segments
The Company operates in two reportable segments: the Motorcycles & Related Products (Motorcycles) segment and the
Financial Services segment. While the two segments are strategic business units that offer different products and services and
are managed separately based on the fundamental differences in their operations, the two segments work closely together as
described below.
The Motorcycles segment consists of HDMC which designs, manufactures and sells at wholesale on-road 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 the Americas, Europe/Middle East/Africa (EMEA) and Asia-Pacific.
The Financial Services segment consists of HDFS which provides wholesale and retail financing and 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 19 of Notes to Consolidated Financial Statements for financial information related to the Company’s reportable
segments and revenue by geographic area.
Strategy
Harley-Davidson's purpose of fulfilling dreams of personal freedom is the foundation for the Company's core strategies,
which include:
• delivering high-demand, profitable products and premium retail experiences;
• strengthening Harley-Davidson through agility and responsiveness to be a leader in the global marketplace;
• extending the Harley-Davidson brand's reach beyond core customers and markets; and
• cultivating great talent, leadership and culture to enable a sustainable future.
Motorcycles and Related Products Segment
Motorcycles, Parts and Accessories and General Merchandise – The primary business of the Motorcycles segment is to
design, manufacture and sell at wholesale on-road Harley-Davidson motorcycles as well as a line of motorcycle parts,
accessories, general merchandise and related services. Parts and Accessories (P&A) products are comprised of replacement