On February 2, 2026, the Company completed the sale of a majority interest in the Indian Motorcycle business. Indian Motorcycle was a vertically integrated manufacturer and distributor of a full line of motorcycles that was previously included in the Company’s On Road reportable segment. In addition to charges recorded in 2025, the sale resulted in an incremental pretax loss of $14.0 million which was included in loss on disposal groups in the consolidated statements of income (loss) for the nine months ended September 30, 2026.

The Company has agreed to provide certain transition services to the buyer following the sale, generally for a period up to eighteen months, depending on the nature of the service, pursuant to a transition services agreement (“TSA”). The TSA covers services such as logistics, information technology, engineering, finance, human resources and legal services. The fees to be paid for these services are generally intended to allow the Company to recover all of its costs and expenses incurred in providing such services. In connection with the closing of the transaction, the Company also entered into supply agreements, pursuant to which the Company has agreed to sell certain wholegoods, wholegood component parts and PG&A to the buyer. Fees paid under the supply agreements are intended to allow the Company to recover all of its related costs and expenses plus a markup. Depending on the nature of the services or goods provided under the TSA and supply agreements, the related income or reimbursements are recorded in sales, cost of sales, or other (income) expense, net in the consolidated statements of income (loss).

Related to the TSA and supply agreements, during the three and nine months ended September 30, 2026, the Company recorded sales of $16.2 million and $80.7 million, respectively. During the three and nine months ended September 30, 2026, the Company recorded cost reimbursements of $12.8 million and $48.9 million, respectively, of which $0.7 million and $8.9 million was recorded in cost of sales and $12.1 million and $40.0 million, respectively, was recorded in other (income) expense, net in the consolidated statements of income (loss). Costs incurred under the TSA and supply agreements totaled $25.8 million and $120.3 million, respectively, during the three and nine months ended September 30, 2026, of which $19.8 million and $101.6 million was recorded in cost of sales and $6.0 million and $18.7 million, respectively, was recorded in operating expenses in the consolidated statements of income (loss).

Certain PG&A assets which were previously held for sale were sold during the second quarter of 2026. The sale resulted in a total pretax loss of $17.0 million for the nine months ended September 30, 2026. The loss was included in loss on disposal groups in the consolidated statements of income (loss).

The Company’s motorcycle manufacturing facility located in Vietnam was also classified as held for sale as of September 30, 2026. The assets and liabilities of that manufacturing facility also represent a disposal group. The fair value of the assets and liabilities in the disposal group was measured based on a market valuation, which is considered a Level 3 input in the fair value hierarchy.


	September 30, 2026		December 31, 2025
Cash and cash equivalents	$	—	$	82.2

Inventories, net	—		176.6
Prepaid expenses and other	—		4.3
Property and equipment, net	22.3		17.9
Deferred tax assets	—		0.8
Valuation allowance on disposal group held for sale	—		(232.0)
Current assets held for sale	22.3		49.8

Accounts payable	—		2.7
Accrued expenses and other	—		47.8

Current liabilities held for sale	$	—	$	50.5