Harley Davidson 2015 Annual Report Download - page 5

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(b) U.S. industry data is derived from information provided by Motorcycle Industry Council (MIC). 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.
The European 601+cc motorcycle market is slightly larger than the U.S. market and customer preferences differ from
those of U.S. customers. The touring and cruiser category represented approximately 52% of the European 601+cc market in
2015 compared to approximately 76% of the 601+ cc market in the U.S.
The following chart includes European retail registration data for 601+cc motorcycles for the years 2013 through 2015:
European Motorcycle Registration Data(a)(b)
601+cc (Units in thousands)
2015 2014 2013
Total new motorcycle registrations 351.7 319.8 281.8
Harley-Davidson new registrations 37.0 38.5 36.1
10.5% 12.0% 12.8%
(a) On-road 601+cc models include dual purpose models, three-wheeled vehicles and beginning in 2015, autocycles.
Registration data for Harley-Davidson Street 500® motorcycles is not included in this table.
(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, some differences may arise related to the timing of data submissions to the independent sources.
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. Royalty revenues from licensing, included in Motorcycles segment net revenue, were $46.5 million, $47.1
million and $58.9 million in 2015, 2014 and 2013, respectively.
Other Products and Services – The Company provides a variety of services to its independent dealers including
motorcycle service and business management training programs and customized dealer software packages.
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
parties. The Company diligently protects its intellectual property, including patents and trade secrets, and its rights to
innovative and proprietary technology and designs. This protection, including enforcement, is important as the Company moves
forward with investments in new products, designs and technologies. While the Company believes patents are important to its
business operations and in the aggregate constitute a valuable asset, the success of the business is not dependent on any one
patent or group of patents. The Company’s active patent portfolio has an average age for patents of approximately seven and a
half years. A patent review committee manages the patent strategy and portfolio of the Company.
Trademarks are important to the Company’s motorcycle business and licensing activities. The Company has a vigorous
worldwide program of trademark registration and enforcement to maintain and strengthen the value of the trademarks and
prevent the unauthorized use of those trademarks. The HARLEY-DAVIDSON trademark and the Bar and Shield trademark are
each highly recognizable to the public and are very valuable assets. Additionally, the Company uses numerous other
trademarks, trade names and logos which are registered worldwide. The following are among the Company’s trademarks: