Harley Davidson 2015 Annual Report Download - page 95

Download and view the complete annual report

Please find page 95 of the 2015 Harley Davidson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 119

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119

95
The Financial Services reportable segment consists of HDFS which 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.
Information by segment is set forth below for the years ended December 31 (in thousands):
2015 2014 2013
Motorcycles net revenue $ 5,308,744 $ 5,567,681 $ 5,258,290
Gross profit 1,952,460 2,025,080 1,862,372
Selling, administrative and engineering expense 1,076,970 1,021,933 991,763
Operating income from Motorcycles $ 875,490 $ 1,003,147 $ 870,609
Financial Services revenue $ 686,658 $ 660,827 $ 641,582
Financial Services expense 406,453 382,991 358,489
Operating income from Financial Services $ 280,205 $ 277,836 $ 283,093
Financial Services revenue includes $6.9 million, $8.1 million and $10.4 million of interest that HDMC paid to HDFS on
wholesale finance receivables in 2015, 2014 and 2013, respectively. The offsetting cost of these interest incentives was
recorded as a reduction to Motorcycles revenue.
Information by segment is set forth below as of December 31 (in thousands):
Motorcycles Financial
Services Consolidated
2015
Total assets $ 2,528,530 $ 7,462,637 $ 9,991,167
Depreciation and amortization $ 188,926 $ 9,148 $ 198,074
Capital expenditures $ 249,772 $ 10,202 $ 259,974
2014
Total assets $ 2,502,190 $ 7,025,907 $ 9,528,097
Depreciation and amortization $ 171,187 $ 8,113 $ 179,300
Capital expenditures $ 224,262 $ 8,057 $ 232,319
2013
Total assets $ 2,793,497 $ 6,611,543 $ 9,405,040
Depreciation and amortization $ 160,181 $ 6,891 $ 167,072
Capital expenditures $ 199,354 $ 8,967 $ 208,321