Through 2021 we've been encouraged by the recovery of the Touring market.
Through September, we've seen Riding Academy participation and completion increased 20% over 2019.
In the quarter, total revenue of $1.4 billion was 17% ahead of last year behind increased shipments and favorable motorcycle unit mix, primarily driven by the actions undertaken as part of the rewire.
Total operating income of $204 million was ahead of last year with growth across both of our reported segments.
The motorcycle segment, which includes our general merchandise and parts and Accessories products delivered $98 million of operating income, which is $51 million better than last year.
And the Financial Services segment delivered $107 million of operating income, which is $15 million better than last year.
Third quarter GAAP earnings per share of $1.5 is $0.78 better than last year or up 35% year-over-year.
When adjusting to exclude the impact of EU tariffs and restructuring charges our adjusted earnings per share was $1.18 and up 12% year-over-year.
Turning to Q3 year-to-date results, revenue of $4.3 billion is 30% ahead of 2020 and operating income of $831 million was $701 million ahead of last year.
GAAP year-to-date earnings per share was $4.06, up $3.42 from a year ago, while adjusted earnings per share was $4.29 up $0.03 from last year.
Global retail sales of new motorcycles were down 6% in the quarter with growth in North America offset by declines in our international market.
North America Q3 retail sales were up 2% versus last year driven primarily by 5% growth in Grand American Touring, our most profitable segment and the successful launches of Pan American and Sportster S. Pan America maintained its status as the number one selling adventure touring model in the US since its launch earlier this year, capturing a 16% market share in the third quarter in a rapidly growing adventure touring segment and after much anticipation beyond these Sportster S motorcycles began shipping to dealers late in Q3 and we have seen very strong sell-through today.
Worldwide retail inventory of new motorcycles was down 30% versus last year and relatively flat to the previous quarter.
Looking at revenue, total motorcycle segment revenue was up 20% in Q3, and up 36% on a year-to-date basis.
Focusing on current quarter activity 9 points of growth came from higher year-over-year volume from motorcycle units, including the new Pan America and Sportster S motorcycle, 8 points of growth for mix driven by a larger percentage of touring bikes in the quarter and reductions across Legacy, Sportster and Street, 2 points of growth from pricing and incentives, and during the quarter we increased the pricing surcharges in the US from an average of 2% taken in Q2 to 3.5% to partially offset raw material inflation and finally, one point of growth from foreign exchange.
Q3 gross margin percent of 26.7 was down 3% points versus prior year.
Q3 operating margin finished at 8.4% and was up 3.6% points over the prior year.
Year-to-date operating margin is significantly ahead of last year given the COVID impact and it is also 4.6 points ahead of 2019.
As you can see, logistics cost began to increase early in the year and peaked in Q2 at 2.5 times our prior year cost before settling down a bit in Q3 at two times prior year.
Materials and components cost inflation accelerated through the third quarter, where we experienced a 6% to 7% increase versus last year.
And finally, manufacturing inflation which includes labor cost has been relatively consistent throughout the year at 3%.
The Financial Services Segment operating income in Q3 was $107 million, up $15 million compared to last year, primarily driven by $23 million of interest expense favorability.
HDFS's retail credit loss ratio remained historically low at 0.8%, a 56 basis point improvement over last year.
Looking at HDFS's base business, retail originations in Q3 were up 13% versus last year behind strong new and used motorcycle origination volume.
As a result, ending retail finance receivables in Q3 were $6.7 billion, which is up 2.2% from last year.
In addition, the retail allowance for credit losses at the end of Q3 was 5.1%, which is flat sequentially and down from 5.9% at the end of Q3 last year.
Wrapping up with Harley-Davidson Inc financial results, we delivered year-to-ate, operating cash flow of $926 million, down $210 million from the year-over-year period.
Total cash and cash equivalents ended the quarter at $2.1 billion, which is $1.5 billion lower than Q3 last year as we worked down higher cash balances held as a result of the pandemic.
As we look to the balance of the year, we are maintaining our guidance on the Motorcycles segment revenue growth of 30% to 35%.
We are also maintaining our GAAP Motorcycles segment operating income margin guidance of 6% to 8%, which is inclusive of the full impact of the incremental EU tariff and the supply chain inflation laid out earlier.
Our estimated EU tariff impact for 2021 has been adjusted to approximately $54 million in line with our unit forecast.
We are lowering our capital expenditures guidance to $135 million to $150 million from the previously communicated range of $190 million to $220 million.
And lastly, we are increasing the Financial Services segment operating income growth guidance to 95% to 105% which is an increase from the previously communicated range of 75% to 85%.
Restructuring charges in Q4 2021 will not be material and we no longer plan to spend the $20 million full-year estimate mentioned in previous quarters.
By designing, engineering and bulding the most desirable motorcycles in the world reflected in quality innovation and craftsmanship we continue to further our legacy as the only American motorcycle brand with 118 years of uninterrupted heritage.
As we continue to execute against our strategy of 70-20-10 SKUs two of our stronghold segments of Touring, Large Cruiser and Trike we remain guided by our commitment to two critical conditions, profitable segments, improving volume, margin and potential and segments aligned to our brand capabilities with a clear path to leadership.
The performance of the Pan America has recently been demonstrated by a group of riders who reached the summit of the Key La Pass in the Himalayas, the highest unpaved motorable road in the world at some 18,600ft, a feat at first for Harley-Davidson.
For example, the North America the category accounts for 5% of the overall market and has grown 51% since 2017.
When you look to Europe Adventure Touring currently represents 33% of the motorcycle market as a whole, growing 33% since 2018 and we believe it's continuing to grow.
We see great opportunity to build on the success of Pan America in the first 6 months in markets and look to win in Europe and further as we actively target new Harley-Davidson riders in the Adventure Touring space.
With HDFS Harley-Davidson is uniquely positioned to be able to offer our customers value the financing options for their motorcycles.
With over 65% of Harley-Davidson motorcycles financed by HDFS.
As of this month, H-D1 marketplace features over 25,000 owned Harley-Davidson motorcycle listing,1200 Harley-Davidson certified motorcycles, over 500,000 units released since launch and over 550 participating Harley-Davidson dealers.
In publishing our 2020 inclusive stakeholder management report, we made a commitment to create a high performing, engaged and diverse workforce, create an inclusive and more sustainable dealer network and supply base, create a path to net zero environmental impact by 2050 at the latest, deliver positive impact in our communities, and aling the rewards of inclusive shareholders.

Summary:
Through 2021 we've been encouraged by the recovery of the Touring market.
When adjusting to exclude the impact of EU tariffs and restructuring charges our adjusted earnings per share was $1.18 and up 12% year-over-year.
As we look to the balance of the year, we are maintaining our guidance on the Motorcycles segment revenue growth of 30% to 35%.
We are lowering our capital expenditures guidance to $135 million to $150 million from the previously communicated range of $190 million to $220 million.
And lastly, we are increasing the Financial Services segment operating income growth guidance to 95% to 105% which is an increase from the previously communicated range of 75% to 85%.
With HDFS Harley-Davidson is uniquely positioned to be able to offer our customers value the financing options for their motorcycles.