Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | 21-May-14 | Sep. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Mar-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'ACAT | ' | ' |
Entity Registrant Name | 'ARCTIC CAT INC | ' | ' |
Entity Central Index Key | '0000719866 | ' | ' |
Current Fiscal Year End Date | '--03-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 12,896,873 | ' |
Entity Public Float | ' | ' | $738,464,727 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Current Assets | ' | ' |
Cash and cash equivalents | $22,524,000 | $35,566,000 |
Short-term investments | 60,008,000 | 77,241,000 |
Accounts receivable, less allowances | 42,003,000 | 30,296,000 |
Inventories | 140,652,000 | 96,389,000 |
Prepaid expenses | 3,815,000 | 3,032,000 |
Income taxes receivable | 1,323,000 | ' |
Deferred income taxes | 14,971,000 | 16,820,000 |
Total current assets | 285,296,000 | 259,344,000 |
Property and Equipment | ' | ' |
Machinery, equipment and tooling | 181,028,000 | 160,674,000 |
Land, building and improvements | 29,758,000 | 29,243,000 |
Property, Plant and Equipment, Gross, Total | 210,786,000 | 189,917,000 |
Less accumulated depreciation | 154,855,000 | 144,378,000 |
Property, Plant and Equipment, Net, Total | 55,931,000 | 45,539,000 |
Other assets | 1,067,000 | 1,262,000 |
Assets, Total | 342,294,000 | 306,145,000 |
Current Liabilities | ' | ' |
Accounts payable | 93,882,000 | 66,599,000 |
Accrued expenses | 54,659,000 | 55,736,000 |
Income taxes payable | ' | 4,957,000 |
Total current liabilities | 148,541,000 | 127,292,000 |
Deferred income taxes | 8,710,000 | 4,381,000 |
Commitments and Contingencies | ' | ' |
Shareholders' Equity | ' | ' |
Preferred stock | ' | ' |
Common stock, par value $.01; 37,440,000 shares authorized; shares issued and outstanding: 12,882,705 at March 31, 2014 and 2013, 203,682 at March 31, 2013 | 129,000 | 132,000 |
Additional paid-in-capital | ' | 10,945,000 |
Accumulated other comprehensive loss | -2,110,000 | -4,166,000 |
Retained earnings | 187,024,000 | 167,561,000 |
Total shareholders' equity | 185,043,000 | 174,472,000 |
Liabilities and Equity, Total | 342,294,000 | 306,145,000 |
Preferred Stock - Series B Junior Participating | ' | ' |
Shareholders' Equity | ' | ' |
Preferred stock | ' | ' |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Preferred stock, par value | $1 | $1 |
Preferred stock, shares authorized | 2,050,000 | 2,050,000 |
Preferred stock, shares issued | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 37,440,000 | 37,440,000 |
Common stock, shares issued | 12,882,705 | 13,203,682 |
Common stock, shares outstanding | 12,882,705 | 13,203,682 |
Preferred Stock - Series B Junior Participating | ' | ' |
Preferred stock, par value | $1 | $1 |
Preferred stock, shares authorized | 450,000 | 450,000 |
Preferred stock, shares issued | ' | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Net sales | ' | ' | ' |
Net sales | $730,491,000 | $671,588,000 | $585,268,000 |
Cost of goods sold | ' | ' | ' |
Cost of goods sold | 579,412,000 | 520,692,000 | 454,649,000 |
Gross profit | 151,079,000 | 150,896,000 | 130,619,000 |
Operating expenses | ' | ' | ' |
Selling & marketing | 38,028,000 | 37,402,000 | 36,549,000 |
Research & development | 23,998,000 | 20,693,000 | 17,862,000 |
General & administrative | 28,557,000 | 32,087,000 | 30,318,000 |
Total operating expenses | 90,583,000 | 90,182,000 | 84,729,000 |
Operating profit | 60,496,000 | 60,714,000 | 45,890,000 |
Other income (expense) | ' | ' | ' |
Interest income | 30,000 | 49,000 | 86,000 |
Interest expense | -122,000 | -84,000 | -8,000 |
Total other income (expense) | -92,000 | -35,000 | 78,000 |
Earnings before incomes taxes | 60,404,000 | 60,679,000 | 45,968,000 |
Income tax expense | 21,000,000 | 20,934,000 | 16,027,000 |
Net earnings | 39,404,000 | 39,745,000 | 29,941,000 |
Net earnings per share | ' | ' | ' |
Basic | $2.97 | $3.02 | $1.79 |
Diluted | $2.90 | $2.89 | $1.72 |
Weighted average shares outstanding | ' | ' | ' |
Basic | 13,275,000 | 13,155,000 | 16,721,000 |
Diluted | 13,598,000 | 13,761,000 | 17,458,000 |
Snowmobile & ATV units | ' | ' | ' |
Net sales | ' | ' | ' |
Net sales | 615,608,000 | 563,464,000 | 477,329,000 |
Cost of goods sold | ' | ' | ' |
Cost of goods sold | 506,707,000 | 450,291,000 | 388,523,000 |
Gross profit | 108,901,000 | 113,173,000 | 88,806,000 |
Parts, garments & accessories | ' | ' | ' |
Net sales | ' | ' | ' |
Net sales | 114,883,000 | 108,124,000 | 107,939,000 |
Cost of goods sold | ' | ' | ' |
Cost of goods sold | 72,705,000 | 70,401,000 | 66,126,000 |
Gross profit | $42,178,000 | $37,723,000 | $41,813,000 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (USD $) | Total | Common Stock | Class B Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance at Mar. 31, 2011 | $183,036,000 | $122,000 | $61,000 | $7,280,000 | ($1,920,000) | $177,493,000 |
Balance, Shares at Mar. 31, 2011 | ' | 12,199,271 | 6,102,000 | ' | ' | ' |
Exercise of stock options | 20,230,000 | 20,000 | ' | 20,210,000 | ' | ' |
Exercise of stock options, Shares | 1,915,071 | 1,915,071 | ' | ' | ' | ' |
Tax benefits from stock options exercised | 10,576,000 | ' | ' | 10,576,000 | ' | ' |
Repurchase of common stock | -26,845,000 | -11,000 | ' | -26,834,000 | ' | ' |
Repurchase of common stock, Shares | ' | -1,088,390 | ' | ' | ' | ' |
Repurchase of common stock Class B | -79,679,000 | ' | -61,000 | ' | ' | -79,618,000 |
Repurchase of common stock Class B, Shares | ' | ' | -6,102,000 | ' | ' | ' |
Restricted stock awards and units | ' | ' | ' | ' | ' | ' |
Restricted stock awards and units, Shares | ' | 31,685 | ' | ' | ' | ' |
Restricted stock forfeited | ' | -1,750 | ' | ' | ' | ' |
Stock-based compensation expense | 2,001,000 | ' | ' | 2,001,000 | ' | ' |
Net earnings | 29,941,000 | ' | ' | ' | ' | 29,941,000 |
Unrealized gain (loss) on derivative instruments, net of tax | 1,182,000 | ' | ' | ' | 1,182,000 | ' |
Foreign currency adjustment | -1,970,000 | ' | ' | ' | -1,970,000 | ' |
Balance at Mar. 31, 2012 | 138,472,000 | 131,000 | ' | 13,233,000 | -2,708,000 | 127,816,000 |
Balance, shares at Mar. 31, 2012 | ' | 13,055,887 | ' | ' | ' | ' |
Exercise of stock options | 5,973,000 | 6,000 | ' | 5,967,000 | ' | ' |
Exercise of stock options, Shares | 554,854 | 554,854 | ' | ' | ' | ' |
Tax benefits from stock options exercised | 6,971,000 | ' | ' | 6,971,000 | ' | ' |
Repurchase of common stock | -17,568,000 | -5,000 | ' | -17,563,000 | ' | ' |
Repurchase of common stock, Shares | ' | -424,145 | ' | ' | ' | ' |
Restricted stock awards and units | ' | ' | ' | ' | ' | ' |
Restricted stock awards and units, Shares | ' | 18,211 | ' | ' | ' | ' |
Restricted stock forfeited | ' | -1,125 | ' | ' | ' | ' |
Stock-based compensation expense | 2,337,000 | ' | ' | 2,337,000 | ' | ' |
Net earnings | 39,745,000 | ' | ' | ' | ' | 39,745,000 |
Unrealized gain (loss) on derivative instruments, net of tax | -305,000 | ' | ' | ' | -305,000 | ' |
Foreign currency adjustment | -1,153,000 | ' | ' | ' | -1,153,000 | ' |
Balance at Mar. 31, 2013 | 174,472,000 | 132,000 | ' | 10,945,000 | -4,166,000 | 167,561,000 |
Balance, shares at Mar. 31, 2013 | ' | 13,203,682 | ' | ' | ' | ' |
Exercise of stock options | 9,707,000 | 6,000 | ' | 9,701,000 | ' | ' |
Exercise of stock options, Shares | 616,951 | 616,951 | ' | ' | ' | ' |
Tax benefits from stock options exercised | 7,499,000 | ' | ' | 7,499,000 | ' | ' |
Repurchase of common stock | -45,362,000 | -9,000 | ' | -30,729,000 | ' | -14,624,000 |
Repurchase of common stock, Shares | ' | -958,559 | ' | ' | ' | ' |
Restricted stock awards and units | ' | ' | ' | ' | ' | ' |
Restricted stock awards and units, Shares | ' | 21,131 | ' | ' | ' | ' |
Restricted stock forfeited | ' | -500 | ' | ' | ' | ' |
Stock-based compensation expense | 2,584,000 | ' | ' | 2,584,000 | ' | ' |
Net earnings | 39,404,000 | ' | ' | ' | ' | 39,404,000 |
Unrealized gain (loss) on derivative instruments, net of tax | -241,000 | ' | ' | ' | -241,000 | ' |
Foreign currency adjustment | 2,297,000 | ' | ' | ' | 2,297,000 | ' |
Dividends ($0.40 per share) | -5,317,000 | ' | ' | ' | ' | -5,317,000 |
Balance at Mar. 31, 2014 | $185,043,000 | $129,000 | ' | ' | ($2,110,000) | $187,024,000 |
Balance, shares at Mar. 31, 2014 | ' | 12,882,705 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (Parenthetical) (USD $) | 12 Months Ended |
Mar. 31, 2014 | |
Statement Of Stockholders Equity [Abstract] | ' |
Dividends per share | $0.40 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net earnings | $39,404,000 | $39,745,000 | $29,941,000 |
Other comprehensive income: | ' | ' | ' |
Foreign currency translation adjustments | 2,297,000 | -1,153,000 | -1,970,000 |
Unrealized gain (loss) on derivative instruments, net of tax | -241,000 | -305,000 | 1,182,000 |
Comprehensive income | $41,460,000 | $38,287,000 | $29,153,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Cash flows from operating activities | ' | ' | ' |
Net earnings | $39,404,000 | $39,745,000 | $29,941,000 |
Adjustments to reconcile net earnings to net cash provided by operating activities | ' | ' | ' |
Depreciation and amortization | 14,189,000 | 11,999,000 | 13,045,000 |
Loss on the disposal of assets | 3,000 | 50,000 | 16,000 |
Deferred income tax expense | 6,076,000 | 1,128,000 | 1,026,000 |
Stock-based compensation expense | 2,584,000 | 2,337,000 | 2,001,000 |
Changes in operating assets and liabilities | ' | ' | ' |
Trading securities | 17,232,000 | -38,781,000 | 71,954,000 |
Accounts receivable, less allowances | -10,949,000 | -3,010,000 | -4,492,000 |
Inventories | -42,159,000 | 1,584,000 | -38,547,000 |
Prepaid expenses | -774,000 | 138,000 | 864,000 |
Accounts payable | 26,768,000 | 5,420,000 | 21,200,000 |
Accrued expenses | -1,264,000 | 3,020,000 | 8,585,000 |
Income taxes | -6,931,000 | 9,054,000 | -4,864,000 |
Net cash provided by operating activities | 44,179,000 | 32,684,000 | 100,729,000 |
Cash flows from investing activities | ' | ' | ' |
Purchases of property and equipment | -24,377,000 | -16,276,000 | -14,993,000 |
Proceeds from the sale of assets | 36,000 | ' | 201,000 |
Net cash used in investing activities | -24,341,000 | -16,276,000 | -14,792,000 |
Cash flows from financing activities | ' | ' | ' |
Proceeds from issuance of common stock | 185,000 | 12,000 | 4,267,000 |
Payments for income taxes on net-settled option exercises | -7,652,000 | -6,206,000 | -8,973,000 |
Tax benefit from stock option exercises | 7,499,000 | 6,971,000 | 10,576,000 |
Dividends paid | -5,317,000 | ' | ' |
Repurchase of common stock | -28,190,000 | -5,401,000 | -81,588,000 |
Net cash used in financing activities | -33,475,000 | -4,624,000 | -75,718,000 |
Effect of exchange rate changes on cash and cash equivalents | 595,000 | -356,000 | -781,000 |
Net increase (decrease) in cash and cash equivalents | -13,042,000 | 11,428,000 | 9,438,000 |
Cash and cash equivalents at beginning of year | 35,566,000 | 24,138,000 | 14,700,000 |
Cash and cash equivalents at end of year | 22,524,000 | 35,566,000 | 24,138,000 |
Supplemental disclosure of cash payments for: | ' | ' | ' |
Income taxes | 13,892,000 | 8,282,000 | 9,541,000 |
Interest | $122,000 | $84,000 | $8,000 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Statement Of Cash Flows [Abstract] | ' | ' | ' |
Unrealized gain (loss) on derivative instruments, net of tax | ($241,000) | ($305,000) | $1,182,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
Arctic Cat Inc. (the “Company”) designs, engineers, manufactures and markets snowmobiles and all-terrain vehicles (ATVs) and recreational off-highway vehicles (“side-by-sides” or “ROVs”) under the Arctic Cat® brand name, and related parts, garments and accessories principally through its facilities in Thief River Falls, Minnesota. The Company’s products are sold through a network of independent dealers located throughout the United States, Canada, and Europe and through distributors in Europe, Russia, South America, the Middle East, Asia and other international markets. | |||||||||||||
Use of Estimates | |||||||||||||
Preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, related revenues and expenses and disclosure about contingent assets and liabilities at the date of the financial statements. Actual results could differ from the estimates used by management. | |||||||||||||
Principles of Consolidation | |||||||||||||
The consolidated financial statements include the accounts of Arctic Cat Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
The Company considers highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. At times, certain bank deposits may be in excess of federally insured limits. As of March 31, 2014 and 2013, the Company had approximately $11,125,000 and $7,107,000, respectively, of cash located in foreign banks primarily in Europe and Canada. | |||||||||||||
Fair Values of Financial Instruments | |||||||||||||
Except where noted, the carrying value of current financial assets and liabilities approximates their fair value, due to their short-term nature. | |||||||||||||
Short-Term Investments | |||||||||||||
Short-term investments are reported at fair value. The Company utilizes the specific identification method in accounting for its short-term investments. | |||||||||||||
Accounts Receivable | |||||||||||||
The Company’s accounts receivable balance consists of amounts due from its dealers and finance companies. The Company extends credit to its dealers based on an evaluation of the dealers’ financial condition. The Company’s collection exposure relating to accounts receivable amounts due from dealer floorplan finance companies is limited due to the financial strength of the finance companies and provisions of its existing agreements. Accounts receivable is presented net of an allowance for estimated uncollectible amounts due from its dealers. The Company estimates the uncollectible amounts considering numerous factors, mainly historical trends as well as current available information. The Company’s allowance for uncollectible accounts was $1,988,000 and $2,759,000 at March 31, 2014 and 2013, respectively. The activity within the allowance for uncollectible accounts for the three years ended March 31, 2014 was not significant. Accounts receivable amounts written off have been within management’s expectations. | |||||||||||||
The activity in the allowance for uncollectible accounts for accounts receivable is as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of period | $ | 2,759,000 | $ | 3,421,000 | |||||||||
Provisions charged to expense | (872,000 | ) | 621,000 | ||||||||||
Deductions for amounts written-off | 101,000 | (1,283,000 | ) | ||||||||||
Balance at end of period | $ | 1,988,000 | $ | 2,759,000 | |||||||||
Inventories | |||||||||||||
Inventories are stated at the lower of cost or market, with cost determined using the first-in, first-out method. | |||||||||||||
Derivative Instruments and Hedging Activities | |||||||||||||
The Company enters into forward exchange contracts to hedge the variability in foreign exchange rates related to transfers of Canadian dollar funds to the United States of America. The contracts are designated as, and meet the criteria for, cash flow hedges. The Company does not enter into forward contracts for the purpose of trading. Gains and losses on forward contracts are recorded in accumulated other comprehensive income (loss), net of tax, and subsequently reclassified into operating expense upon completing transfers of Canadian dollar funds. | |||||||||||||
As of March 31, 2014, the Company had open Canadian dollar forward exchange contracts, maturing through March 2014 with notional amounts totaling $89,649,000 and the total net fair value of $424,000 is included in accounts payable. As of March 31, 2013, the Company had open Canadian dollar forward exchange contracts, maturing through December 2013 with notional amounts totaling $39,063,000 and the total net fair value of $41,000 is included in accounts payable. The Company did not enter into any forward contracts in currencies other than the Canadian dollar, in the years ended March 31, 2014 or 2013. | |||||||||||||
Fair Value Measurements | |||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy has been established which requires classification based on observable and unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: | |||||||||||||
Level 1: Quoted prices in active markets for identical assets or liabilities; Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of March 31, 2014 and 2013, the Company’s foreign currency contract fair value was a liability totaling $424,000 and $41,000, respectively, which are considered a Level 2 measurement. The Company utilizes the income approach to measure fair value of foreign currency contracts which is based on significant other observable inputs. The asset or liability is measured at fair value on a recurring basis each reporting period end. | |||||||||||||
Property and Equipment | |||||||||||||
Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives, using the straight-line method for all property, equipment and tooling. Repairs and maintenance cost that are considered not to extend the useful life of the property and equipment are expensed as incurred. Tooling is amortized over the life of the product, generally 3-5 years. Estimated service lives range from 15 - 39 years for buildings and improvements and 5 - 7 years for machinery and equipment. Accelerated and straight-line methods are used for income tax reporting. | |||||||||||||
Impairment of Long-Lived Assets | |||||||||||||
The Company evaluates the carrying value of long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the assets, the carrying value is reduced to the estimated fair value as measured by the associated discounted cash flows. Based on impairment indicators not being present, the Company determined the carrying value of long-lived assets was not impaired. | |||||||||||||
Intangibles | |||||||||||||
Identified intangible assets are acquired customer relationships, homologation licenses, and a non-compete agreement. Intangible assets before accumulated amortization were $1,950,000 at March 31, 2014 and 2013. Accumulated amortization was $1,428,000 and $1,345,000 at March 31, 2014 and 2013, respectively. Amortization expense is expected to be approximately $83,000 in fiscal 2015, 2016, 2017, 2018 and 2019. | |||||||||||||
The changes in the carrying amount of identified intangibles included in other assets for the fiscal years ended March 31, 2014 and 2013 are as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of period | $ | 605,000 | $ | 688,000 | |||||||||
Current year amortization | (83,000 | ) | (83,000 | ) | |||||||||
Balance at end of period | $ | 522,000 | $ | 605,000 | |||||||||
Product Warranties | |||||||||||||
The Company generally provides a limited warranty to the owner of snowmobiles for twelve months from the date of consumer registration and for six months on ATVs and ROVs. The Company provides for estimated warranty costs at the time of sale based on historical rates and trends and makes subsequent adjustments to its estimate as actual claims become known or the amounts are determinable. The following represents changes in the Company’s accrued warranty liability for the fiscal years ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 18,709,000 | $ | 18,521,000 | $ | 14,049,000 | |||||||
Warranty provision | 16,770,000 | 19,449,000 | 14,675,000 | ||||||||||
Warranty claim payments | (16,122,000 | ) | (19,261,000 | ) | (10,203,000 | ) | |||||||
Balance at end of period | $ | 19,357,000 | $ | 18,709,000 | $ | 18,521,000 | |||||||
Insurance | |||||||||||||
The Company is self-insured for employee medical, workers’ compensation, and product liability claims. Specific stop loss coverages are provided for catastrophic claims. Losses and claims are charged to operations when it is probable a loss has been incurred and the amount can be reasonably estimated. | |||||||||||||
Revenue Recognition | |||||||||||||
The Company recognizes revenue and provides for estimated marketing and sales incentive costs when products are shipped to dealers and distributors pursuant to their order, the price is fixed and collection is reasonably assured. Shipping and handling costs are recorded as a component of costs of goods sold and shipping charges to the dealers are recorded as revenue at the time products are shipped. | |||||||||||||
Return allowances for parts and accessories are recorded as a reduction of revenue when the products are sold based on the company’s return allowance program and historical experience. | |||||||||||||
Sales tax collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from the sales revenue as the Company considers itself a pass-through conduit for collecting and remitting sales taxes. | |||||||||||||
Marketing and Sales Incentive Costs | |||||||||||||
At the time product revenue is recognized the Company provides for various marketing and sales incentive costs which are offered to its dealers and consumers. Examples of these costs, which are recognized as a reduction of revenue when the products are sold, include: dealer and consumer rebates, dealer floor plan financing assistance and other incentive and promotion programs. Generally, the Company records provisions for these marketing programs at the later of when the revenue is recognized or when the sales incentive or marketing program is approved and communicated for products previously shipped. Sales incentives that involve a free product or service delivered to the consumer are recorded as a component of cost of goods sold. The Company estimates the costs of these various incentive and marketing programs at the time of sale or subsequently when programs are approved and communicated based on historical experience. To the extent current experience differs with previous estimates the accrued liability for marketing and sales incentives is adjusted accordingly. | |||||||||||||
Dealer Holdback | |||||||||||||
The Company records a dealer holdback program liability at the time certain products are shipped to its dealers. If the products subject to the holdback program are sold within the program time period, the Company refunds a portion of the original sale price, referred to as dealer holdback, to the dealer within the program time period and refunds any remaining balances to its dealers when the program time periods end. The Company’s dealer holdback program liability, included within accounts payable, was $19,448,000 and $17,574,000 as of March 31, 2014 and 2013, respectively. | |||||||||||||
Research and Development | |||||||||||||
Research and development costs are expensed as incurred. Research and development expense was $23,998,000, $20,693,000 and $17,862,000 during fiscal 2014, 2013 and 2012, respectively. | |||||||||||||
Advertising | |||||||||||||
The Company expenses advertising costs as incurred, except for cooperative advertising obligations arising related to the sale of the Company’s products to its dealers. The estimated cost of cooperative advertising, which the dealer is required to support, is recorded as marketing expense at the time the product is sold. Cooperative advertising was $3,440,000, $3,556,000 and $2,900,000 in fiscal 2014, 2013 and 2012, respectively. Total advertising expense, including cooperative advertising, was $17,562,000, $17,232,000 and $17,225,000 in fiscal 2014, 2013 and 2012, respectively. | |||||||||||||
Net Earnings Per Share | |||||||||||||
The Company’s diluted weighted average shares outstanding include common shares and common share equivalents relating to stock options, when dilutive. No options outstanding were excluded from the computation of common share equivalents because they were anti-dilutive during fiscal 2014. Options to purchase 70,470 and 1,131,732 shares of common stock with weighted average exercise prices of $43.79 and $19.99 were outstanding during fiscal 2013 and 2012, respectively, but were excluded from the computation of common share equivalents because they were anti-dilutive. | |||||||||||||
Weighted average shares outstanding consist of the following for the fiscal years ended March 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average number of common shares outstanding | 13,275,000 | 13,155,000 | 16,721,000 | ||||||||||
Dilutive effect of option plan | 323,000 | 606,000 | 737,000 | ||||||||||
Common and potential shares outstanding—diluted | 13,598,000 | 13,761,000 | 17,458,000 | ||||||||||
Foreign Currency Translation | |||||||||||||
The Company’s activities with Canadian dealers are denominated in Canadian currency. The Company’s activities with European on-road ATV dealers and distributors are denominated in the Euro. Assets and liabilities denominated in Canadian currency and the Euro are translated using the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average foreign exchange rates in effect for the period. Translation gains and losses relating to the Canadian currency are reflected in the results of operations and Euro currency are reflected as a component of other comprehensive income. | |||||||||||||
Comprehensive Income | |||||||||||||
Comprehensive income represents net earnings adjusted for the unrealized gain or loss on derivative instruments, and foreign currency translation adjustments and is shown in the consolidated financial statements of comprehensive income. | |||||||||||||
Segment Reporting | |||||||||||||
The Company’s operations constitute three operating segments based on its product lines—snowmobile; ATV; and parts, garments and accessories (“PG&A). For purposes of segment reporting the Company aggregates the snowmobile and ATV segments as the segments have similar economic characteristics. Detailed segment information is reported in Note J. |
SHORTTERM_INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Mar. 31, 2014 | |
Investments Debt And Equity Securities [Abstract] | ' |
SHORT-TERM INVESTMENTS | ' |
B. SHORT-TERM INVESTMENTS | |
Trading securities consists of $60,008,000 and $77,241,000, invested in various money market funds at March 31, 2014 and 2013, respectively. All of the trading securities are deemed to be level 1 investments. |
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
C. INVENTORIES | |||||||||
Inventories consist of the following at March 31: | |||||||||
2014 | 2013 | ||||||||
Raw materials and sub-assemblies | $ | 52,580,000 | $ | 29,310,000 | |||||
Finished goods | 55,327,000 | 41,084,000 | |||||||
Parts, garments and accessories | 32,745,000 | 25,995,000 | |||||||
$ | 140,652,000 | $ | 96,389,000 | ||||||
ACCRUED_EXPENSES
ACCRUED EXPENSES | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
ACCRUED EXPENSES | ' | ||||||||
D. ACCRUED EXPENSES | |||||||||
Accrued expenses consist of the following at March 31: | |||||||||
2014 | 2013 | ||||||||
Marketing | $ | 11,671,000 | $ | 11,971,000 | |||||
Compensation | 9,338,000 | 10,682,000 | |||||||
Warranties | 19,357,000 | 18,709,000 | |||||||
Insurance | 7,026,000 | 9,254,000 | |||||||
Other | 7,267,000 | 5,120,000 | |||||||
$ | 54,659,000 | $ | 55,736,000 | ||||||
FINANCING
FINANCING | 12 Months Ended |
Mar. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
FINANCING | ' |
E. FINANCING | |
The Company entered into a $100,000,000 senior secured revolving bank agreement in November 2013 for documentary and stand-by letters of credit, working capital needs and general corporate purposes, which amended and restated the Company’s prior $60,000,000 senior secured revolving credit agreement. This agreement is scheduled to expire in November of 2017. Under the agreement, the Company may borrow up to $100,000,000 during May through November and up to $50,000,000 during all other months of the fiscal year. Borrowings under the line of credit bear interest at the greater of the following rates; the prime rate plus 0.75%, the federal funds rate plus 0.50% or the LIBOR for a 30 day interest period plus 1.00%. As of March 31, 2014, the effective rate was 3.50%. All borrowings are collateralized by substantially all of the Company’s assets including all real estate, accounts receivable and inventory. No borrowings from the line of credit were outstanding at March 31, 2014 and 2013. The outstanding letters of credit balances were $15,938,000 and $17,275,000 at March 31, 2014 and 2013, respectively, and borrowings under the line are subject to certain covenants and restrictions on indebtedness, financial guarantees, business combinations and other related items. The Company was in compliance with the terms of the credit agreement as of March 31, 2014. Outstanding letters of credit will be repaid over the following six months in accordance with the credit agreement and any such renewal. |
RETIREMENT_SAVINGS_PLAN
RETIREMENT SAVINGS PLAN | 12 Months Ended |
Mar. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | ' |
RETIREMENT SAVINGS PLAN | ' |
F. RETIREMENT SAVINGS PLAN | |
The Company’s 401(k) retirement savings plan covers substantially all eligible employees. Employees may contribute up to 50% of their compensation with the Company matching 50% of the employee contributions, up to a maximum of 4% of the employee’s cash compensation capped at $255,000. Matching contributions of $1,035,000 and $889,000 were made in fiscal 2014 and 2013, respectively. The Company match was suspended as of April 1, 2009 and reinstated as of July 1, 2012. The Company can elect to make additional contributions at its discretion. Discretionary contributions of $900,000 were made in fiscal 2012. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
G. INCOME TAXES | |||||||||||||
Arctic Cat’s income before income taxes was generated from its United States and foreign operations as follows: | |||||||||||||
For the years ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 58,655,000 | $ | 60,148,000 | $ | 44,216,000 | |||||||
Foreign | 1,749,000 | 531,000 | 1,752,000 | ||||||||||
Income before income taxes | $ | 60,404,000 | $ | 60,679,000 | $ | 45,968,000 | |||||||
Income tax expense consists of the following for the fiscal years ended March 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current | |||||||||||||
Federal | $ | 13,345,000 | $ | 18,624,000 | $ | 14,089,000 | |||||||
State | 900,000 | 937,000 | 575,000 | ||||||||||
Foreign | 436,000 | 132,000 | 337,000 | ||||||||||
Deferred | 6,319,000 | 1,241,000 | 1,026,000 | ||||||||||
$ | 21,000,000 | $ | 20,934,000 | $ | 16,027,000 | ||||||||
The following is a reconciliation of the federal statutory income tax rate to the effective tax rate for the fiscal years ended March 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State taxes | 1.7 | 2.2 | 3 | ||||||||||
Research and other tax credit | (1.0 | ) | (2.0 | ) | (1.0 | ) | |||||||
Domestic manufacturers deduction | (1.4 | ) | (1.2 | ) | (1.0 | ) | |||||||
Uncertain tax positions | (0.1 | ) | (0.2 | ) | (0.7 | ) | |||||||
US subpart F adjustments | 0.4 | 0.4 | 0.5 | ||||||||||
Foreign tax rate difference | (0.2 | ) | (0.1 | ) | (0.4 | ) | |||||||
Stock options | (0.1 | ) | 0.1 | (0.5 | ) | ||||||||
Other | 0.5 | 0.3 | — | ||||||||||
34.8 | % | 34.5 | % | 34.9 | % | ||||||||
The cumulative temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes under the liability method are as follows at March 31: | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred income tax assets | |||||||||||||
Accrued expenses | $ | 5,976,000 | $ | 7,907,000 | |||||||||
Accrued warranty | 6,199,000 | 6,525,000 | |||||||||||
Inventory related items | 4,175,000 | 3,106,000 | |||||||||||
Other | 441,000 | 981,000 | |||||||||||
Total assets | 16,791,000 | 18,519,000 | |||||||||||
Current deferred income tax liability | |||||||||||||
Prepaid expenses | 1,349,000 | 976,000 | |||||||||||
Other | 471,000 | 723,000 | |||||||||||
Total liabilities | 1,820,000 | 1,699,000 | |||||||||||
Net current deferred tax asset | $ | 14,971,000 | $ | 16,820,000 | |||||||||
Non-current deferred income tax liability | |||||||||||||
Property and equipment | $ | 8,710,000 | $ | 4,381,000 | |||||||||
Non-current deferred tax liability | $ | 8,710,000 | $ | 4,381,000 | |||||||||
At March 31, 2014, approximately $100,000 of the gross deferred tax asset relates to net operating loss carry forward of approximately $400,000 for our foreign subsidiaries. The net operating losses have an indefinite carry-forward period. We expect future taxable income in these jurisdictions to be sufficiently large enough that these carry forward items will be fully realized therefore no valuation allowance has been provided relating to these deferred tax assets. | |||||||||||||
The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company recognizes potential interest and penalties related to income tax positions as a component of the provision for income taxes on the consolidated statements of operations. The Company had liabilities recorded related to unrecognized tax benefits totaling $2,025,000 and $1,617,000 at March 31, 2014 and 2013, including reserves related to potential interest and penalties of $318,000 and $233,000, respectively. The amount of the liability, net of federal benefits for uncertain state tax positions, at March 31, 2014, if recognized, would affect the Company’s effective tax rate. The Company currently anticipates approximately $143,000 of unrecognized tax benefits will be recognized during the next twelve months. With few exceptions, the Company is no longer subject to federal, state, or foreign income tax examinations for years prior to March 31, 2010. A reconciliation of the amount of unrecognized tax benefits excluding interest and penalties is as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of period | $ | 1,384,000 | $ | 1,381,000 | |||||||||
Increases related to prior year tax positions | 104,000 | 317,000 | |||||||||||
Decreases related to prior year tax positions | (88,000 | ) | (578,000 | ) | |||||||||
Increases related to current year tax positions | 307,000 | 264,000 | |||||||||||
Settlements | — | — | |||||||||||
Balance at end of period | $ | 1,707,000 | $ | 1,384,000 | |||||||||
The Company is subject to income taxes in the U.S. federal jurisdiction, and various state jurisdictions, as well as various European jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the relevant tax laws and regulations and require significant judgment to apply. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
H. COMMITMENTS AND CONTINGENCIES | |
Dealer Financing | |
Finance companies provide the Company’s North American dealers with floorplan financing. The Company has agreements with these finance companies to repurchase certain repossessed products sold to its dealers. At March 31, 2014, the Company was contingently liable under these agreements for a maximum repurchase amount of approximately $62,964,000. The Company’s financial exposure under these agreements is limited to the difference between the amount paid to the finance companies for repurchases and the amount received upon the resale of the repossessed product. Losses incurred under these agreements during the periods presented have not been material. The financing agreements also have loss sharing provisions should any dealer default, whereby the Company shares certain losses with the finance companies. The maximum liability to the Company under these provisions is approximately $2,328,000 at March 31, 2014. | |
Litigation | |
The Company is subject to legal proceedings and claims which arise in the ordinary course of business. Accidents involving personal injury and property damage may occur in the use of snowmobiles, ATVs and ROVs. Claims have been made against the Company from time to time relating to these accidents, and from time to time, parties assert claims relating to their intellectual property. It is the Company’s policy to vigorously defend against these actions. The Company is not involved in any legal proceedings which it believes will have the potential for a materially adverse impact on the Company’s business or financial condition, results of operations or cash flows. The Company has recorded a reserve based on its estimated range of potential exposures based on the legal proceedings and claims that it is aware of. Should any settlement occur that exceeds the Company’s estimate or a new claim arise, the Company may need to adjust its overall reserve and, depending on the amount, such adjustment could be material. | |
Leases | |
The Company leases buildings and equipment under non-cancelable operating leases. Total rent expense under all lease agreements was $1,413,000, $1,111,000 and $875,000 for fiscal 2014, 2013 and 2012, respectively. Future minimum payments, exclusive of other costs required under non-cancelable operating leases at March 31, 2014 are approximately $30,000 in fiscal 2015. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
SHAREHOLDERS' EQUITY | ' | ||||||||||||||||||||
I. SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
Stock Option Plans | |||||||||||||||||||||
The Company has stock-based compensation plans, previously approved by the Company’s shareholders that provide for incentive and non-qualified stock options and restricted stock awards to be granted to directors, officers and other key employees. The stock options granted generally have a five to ten year life, vest over a period of one to three years, and have an exercise price equal to the fair market value of the stock on the date of grant. The stock options are generally subject to accelerated vesting if there is a change in control, as defined in the plans. The restricted stock awards generally vest over a period of two to three years and do not require cash payments from restricted stock award recipients. At March 31, 2014, the Company had 1,099,500 shares of common stock available for grant under the plans. | |||||||||||||||||||||
For the fiscal years ended March 31, 2014, 2013 and 2012, the Company recorded stock-based compensation expense of $2,584,000, $2,337,000 and $2,001,000, respectively, which have been included in general and administrative expenses. The Company’s total stock-based compensation related expense reduced both basic and diluted earnings per share by $0.12, $0.11 and $0.08 for the fiscal years ended March 31, 2014, 2013 and 2012, respectively. At March 31, 2014, the Company had $2,557,000 of unrecognized compensation costs related to non-vested stock options and restricted stock awards that are expected to be recognized over a weighted average period of approximately two years. | |||||||||||||||||||||
The fair value of each stock option award was estimated on the date of grant using the Black-Scholes options pricing model. The following assumptions were used to estimate the fair value of options: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Assumptions: | |||||||||||||||||||||
Dividend yield | 1 | % | 1 | % | 1 | % | |||||||||||||||
Average term | 5 years | 5 years | 5 years | ||||||||||||||||||
Volatility | 49 | % | 47 | % | 42 | % | |||||||||||||||
Risk-free rate of return | 0.8 | % | 1.3 | % | 2.1 | % | |||||||||||||||
The weighted average fair value of options granted during each of the following years ended March 31: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fair value of options granted | $ | 16.91 | $ | 23.58 | $ | 6.04 | |||||||||||||||
Transactions under the plans during each of the three years in the period ended March 31, are summarized as follows: | |||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||
Shares under | average exercise | ||||||||||||||||||||
option | price | ||||||||||||||||||||
Outstanding at March 31, 2011 | 3,300,453 | $ | 14.65 | ||||||||||||||||||
Granted | 254,295 | 15.71 | |||||||||||||||||||
Cancelled | (135,000 | ) | 17.17 | ||||||||||||||||||
Exercised | (1,915,071 | ) | 15.25 | ||||||||||||||||||
Outstanding at March 31, 2012 | 1,504,677 | 13.84 | |||||||||||||||||||
Granted | 72,532 | 43.5 | |||||||||||||||||||
Cancelled | (11,705 | ) | 17.78 | ||||||||||||||||||
Exercised | (554,854 | ) | 10.76 | ||||||||||||||||||
Outstanding at March 31, 2013 | 1,010,650 | 17.61 | |||||||||||||||||||
Granted | 96,209 | 42.99 | |||||||||||||||||||
Cancelled | (9,071 | ) | 25.68 | ||||||||||||||||||
Exercised | (616,951 | ) | 15.73 | ||||||||||||||||||
Outstanding at March 31, 2014 | 480,837 | $ | 24.95 | ||||||||||||||||||
Options exercisable at March 31 are as follows: | |||||||||||||||||||||
2012 | 867,383 | $ | 15.33 | ||||||||||||||||||
2013 | 648,103 | $ | 16.46 | ||||||||||||||||||
2014 | 262,734 | $ | 17.83 | ||||||||||||||||||
The following tables summarize information concerning currently outstanding and exercisable stock options at March 31, 2014: | |||||||||||||||||||||
Options Outstanding and Exercisable | |||||||||||||||||||||
Range of Exercise Prices | Number | Weighted | Weighted | Number | Weighted | ||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||
Remaining | Exercise | Exercise | |||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||
Life | |||||||||||||||||||||
$6.26 - 9.38 | 7,800 | 2.79 years | $ | 6.26 | 7,800 | $ | 6.26 | ||||||||||||||
9.57 - 13.84 | 57,164 | 5.84 years | 10.91 | 57,164 | 10.91 | ||||||||||||||||
14.68 - 21.03 | 227,949 | 7.14 years | 16 | 151,221 | 16.11 | ||||||||||||||||
21.96 - 27.69 | 24,000 | 9.60 years | 24.83 | 24,000 | 24.83 | ||||||||||||||||
33.67 - 43.79 | 163,924 | 8.60 years | 43.19 | 22,549 | 43.48 | ||||||||||||||||
480,837 | 7.54 years | $ | 24.95 | 262,734 | $ | 17.83 | |||||||||||||||
In August 2013, the Company’s shareholders adopted the 2013 Omnibus Stock and Incentive Plan (the “2013 Plan”). The 2013 Plan permits the granting of stock options, stock appreciation rights, restricted stock and restricted stock units, performance awards, other stock awards and dividend and dividend equivalents. At March 31, 2014, 1,099,500 shares of common stock remain available for issuance under the 2013 Plan. | |||||||||||||||||||||
In August 2007, the Company’s shareholders adopted the 2007 Omnibus Stock and Incentive Plan (the “2007 Plan”, and along with the 2013 Plan, “the Plans”). The terms of the 2007 Plan are substantially identical to those of the 2013 Plan. With the adoption of the 2013 Plan, the Company’s Board of Directors determined no further awards will be granted from the 2007 Plan. | |||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||
The 2013 Plan provides for grants of restricted common stock and restricted stock units to executives and key employees of the Company. The restricted common stock and restricted stock units are valued based on the Company’s market value of common stock on the date of grant and the amount of any award is expensed over the requisite service period which approximates two to three years. If grantees are retirement eligible and awards would either fully vest upon retirement or continue to vest after retirement, the full amount of the related expense is recognized upon grant. At March 31, 2014, the Company had 15,700 shares of restricted common stock issued and outstanding and 40,103 unvested restricted stock units outstanding under the 2007 Plan and 500 shares of restricted common stock issued and outstanding under the 2013 Plan. The shares of restricted common stock awarded have voting rights and participate equally in all dividends and other distributions duly declared by the Company’s Board of Directors. | |||||||||||||||||||||
Compensation expenses associated with restricted stock awards totaled $395,000 and $486,000 for March 31, 2014 and 2013, respectively. Compensation expenses associated with restricted stock units totaled $643,000 and $490,000 for March 31, 2014 and 2013, respectively. The Company recognizes the expense for grants of restricted stock and restricted stock units on a straight-line basis in the statement of operations as general and administrative expense based on their fair value over their requisite service periods. At March 31, 2014, unamortized compensation expense of restricted stock totaled $369,000 and of restricted stock units totaled $748,000. The unamortized expense as of March 31, 2014 is expected to be recognized over a weighted-average period of 1.1 years for restricted stock and 1.6 years for restricted stock units. | |||||||||||||||||||||
Restricted stock and restricted stock unit award activity under the Plans for the fiscal years ended March 31, 2014 and 2013 is summarized as follows: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Restricted Shares | Shares | Weighted- | Shares | Weighted- | |||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||
Non-vested shares at March 31, | 42,820 | $ | 19.33 | 98,568 | $ | 11.61 | |||||||||||||||
Awarded | 8,000 | 53.91 | 8,700 | 33.73 | |||||||||||||||||
Vested | (34,120 | ) | 15.66 | (63,323 | ) | 9.42 | |||||||||||||||
Forfeited | (500 | ) | 41.52 | (1,125 | ) | 12.45 | |||||||||||||||
Non-vested shares at March 31, | 16,200 | $ | 43.45 | 42,820 | $ | 19.33 | |||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Restricted Stock Units | Shares | Weighted- | Shares | Weighted- | |||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||
Non-vested shares at March 31, | 41,607 | $ | 27.35 | 39,729 | $ | 18.31 | |||||||||||||||
Granted | 17,976 | 42.99 | 15,109 | 43.21 | |||||||||||||||||
Vested | (18,263 | ) | 25.16 | (13,231 | ) | 18.31 | |||||||||||||||
Forfeited | (1,217 | ) | 27.6 | — | — | ||||||||||||||||
Non-vested shares at March 31, | 40,103 | $ | 35.35 | 41,607 | $ | 27.35 | |||||||||||||||
Preferred Stock | |||||||||||||||||||||
The Company’s Board of Directors is authorized to issue 2,500,000 shares of $1.00 par value preferred stock in one or more series, 450,000 shares of which were designated Series B Junior Participating preferred stock in connection with the previous Shareholder Rights Plan. The Board of Directors can determine voting, conversion, dividend and redemption rights and other preferences of each series. No shares have been issued. | |||||||||||||||||||||
Share Repurchase Authorization | |||||||||||||||||||||
The Company invested $28,188,000, $5,401,000, and $1,909,000 during fiscal 2014, 2013, and 2012, respectively, to repurchase and cancel 633,816, 149,424, and 119,087 shares of common stock, respectively, pursuant to the Board of Directors’ authorizations. At March 31, 2014, the Board’s authorization to repurchase $2,083,000, or approximately 43,587 shares of common stock, remains outstanding. On May 15, 2013, the Board authorized the repurchase of $30,000,000 or approximately 652,000 shares of common stock. | |||||||||||||||||||||
Class B Common Stock | |||||||||||||||||||||
On December 22, 2011, the Company purchased and cancelled all of the 6,102,000 shares of Arctic Cat Class B common stock outstanding for a purchase price of $79,326,000 from Suzuki Motor Corporation. The Company also incurred fees and related expenses of $353,000 for this purchase. Suzuki had owned all outstanding shares of the Company’s Class B common stock until December 22, 2011. |
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
SEGMENT REPORTING | ' | ||||||||||||
J. SEGMENT REPORTING | |||||||||||||
The Company manages each segment based on gross margin and there are no material transactions between the segments. Operating, tax and other expenses are not allocated to individual segments. Additionally, given the crossover of customers, manufacturing and asset management, the Company does not maintain separate balance sheets for each segment. Accordingly, the segment information presented below is limited to sales and margin data. | |||||||||||||
Years ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales | |||||||||||||
Snowmobile & ATV units | $ | 615,608,000 | $ | 563,464,000 | $ | 477,329,000 | |||||||
Parts, garments, & accessories | 114,883,000 | 108,124,000 | 107,939,000 | ||||||||||
Total net sales | 730,491,000 | 671,588,000 | 585,268,000 | ||||||||||
Cost of goods sold | |||||||||||||
Snowmobile & ATV units | 506,707,000 | 450,291,000 | 388,523,000 | ||||||||||
Parts, garments, & accessories | 72,705,000 | 70,401,000 | 66,126,000 | ||||||||||
Total cost of goods sold | 579,412,000 | 520,692,000 | 454,649,000 | ||||||||||
Gross profit | |||||||||||||
Snowmobile & ATV units | 108,901,000 | 113,173,000 | 88,806,000 | ||||||||||
Parts, garments, & accessories | 42,178,000 | 37,723,000 | 41,813,000 | ||||||||||
Total gross profit | $ | 151,079,000 | $ | 150,896,000 | $ | 130,619,000 | |||||||
Years ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales by product line | |||||||||||||
Snowmobile units | $ | 282,442,000 | $ | 263,693,000 | $ | 250,438,000 | |||||||
ATV units | 333,166,000 | 299,771,000 | 226,891,000 | ||||||||||
Parts, garments, & accessories | 114,883,000 | 108,124,000 | 107,939,000 | ||||||||||
Total net sales | $ | 730,491,000 | $ | 671,588,000 | $ | 585,268,000 | |||||||
Years ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales by geography, based on location of the customer | |||||||||||||
United States | $ | 404,347,000 | $ | 337,250,000 | $ | 292,049,000 | |||||||
Canada | 215,631,000 | 215,569,000 | 180,608,000 | ||||||||||
Europe and other | 110,513,000 | 118,769,000 | 112,611,000 | ||||||||||
Total net sales | $ | 730,491,000 | $ | 671,588,000 | $ | 585,268,000 | |||||||
The Company has identifiable long-lived assets with total carrying values of approximately $751,000, $1,533,000 and $1,414,000 at March 31, 2014, 2013 and 2012, respectively, outside the United States in Canada and Europe. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates | |||||||||||||
Preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, related revenues and expenses and disclosure about contingent assets and liabilities at the date of the financial statements. Actual results could differ from the estimates used by management. | |||||||||||||
Principles of Consolidation | ' | ||||||||||||
Principles of Consolidation | |||||||||||||
The consolidated financial statements include the accounts of Arctic Cat Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and Cash Equivalents | |||||||||||||
The Company considers highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. At times, certain bank deposits may be in excess of federally insured limits. As of March 31, 2014 and 2013, the Company had approximately $11,125,000 and $7,107,000, respectively, of cash located in foreign banks primarily in Europe and Canada. | |||||||||||||
Fair Values of Financial Instruments | ' | ||||||||||||
Fair Values of Financial Instruments | |||||||||||||
Except where noted, the carrying value of current financial assets and liabilities approximates their fair value, due to their short-term nature. | |||||||||||||
Short-Term Investments | ' | ||||||||||||
Short-Term Investments | |||||||||||||
Short-term investments are reported at fair value. The Company utilizes the specific identification method in accounting for its short-term investments. | |||||||||||||
Accounts Receivable | ' | ||||||||||||
Accounts Receivable | |||||||||||||
The Company’s accounts receivable balance consists of amounts due from its dealers and finance companies. The Company extends credit to its dealers based on an evaluation of the dealers’ financial condition. The Company’s collection exposure relating to accounts receivable amounts due from dealer floorplan finance companies is limited due to the financial strength of the finance companies and provisions of its existing agreements. Accounts receivable is presented net of an allowance for estimated uncollectible amounts due from its dealers. The Company estimates the uncollectible amounts considering numerous factors, mainly historical trends as well as current available information. The Company’s allowance for uncollectible accounts was $1,988,000 and $2,759,000 at March 31, 2014 and 2013, respectively. The activity within the allowance for uncollectible accounts for the three years ended March 31, 2014 was not significant. Accounts receivable amounts written off have been within management’s expectations. | |||||||||||||
The activity in the allowance for uncollectible accounts for accounts receivable is as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of period | $ | 2,759,000 | $ | 3,421,000 | |||||||||
Provisions charged to expense | (872,000 | ) | 621,000 | ||||||||||
Deductions for amounts written-off | 101,000 | (1,283,000 | ) | ||||||||||
Balance at end of period | $ | 1,988,000 | $ | 2,759,000 | |||||||||
Inventories | ' | ||||||||||||
Inventories | |||||||||||||
Inventories are stated at the lower of cost or market, with cost determined using the first-in, first-out method. | |||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||
Derivative Instruments and Hedging Activities | |||||||||||||
The Company enters into forward exchange contracts to hedge the variability in foreign exchange rates related to transfers of Canadian dollar funds to the United States of America. The contracts are designated as, and meet the criteria for, cash flow hedges. The Company does not enter into forward contracts for the purpose of trading. Gains and losses on forward contracts are recorded in accumulated other comprehensive income (loss), net of tax, and subsequently reclassified into operating expense upon completing transfers of Canadian dollar funds. | |||||||||||||
As of March 31, 2014, the Company had open Canadian dollar forward exchange contracts, maturing through March 2014 with notional amounts totaling $89,649,000 and the total net fair value of $424,000 is included in accounts payable. As of March 31, 2013, the Company had open Canadian dollar forward exchange contracts, maturing through December 2013 with notional amounts totaling $39,063,000 and the total net fair value of $41,000 is included in accounts payable. The Company did not enter into any forward contracts in currencies other than the Canadian dollar, in the years ended March 31, 2014 or 2013. | |||||||||||||
Fair Value Measurements | ' | ||||||||||||
Fair Value Measurements | |||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy has been established which requires classification based on observable and unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: | |||||||||||||
Level 1: Quoted prices in active markets for identical assets or liabilities; Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of March 31, 2014 and 2013, the Company’s foreign currency contract fair value was a liability totaling $424,000 and $41,000, respectively, which are considered a Level 2 measurement. The Company utilizes the income approach to measure fair value of foreign currency contracts which is based on significant other observable inputs. The asset or liability is measured at fair value on a recurring basis each reporting period end. | |||||||||||||
Property and Equipment | ' | ||||||||||||
Property and Equipment | |||||||||||||
Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives, using the straight-line method for all property, equipment and tooling. Repairs and maintenance cost that are considered not to extend the useful life of the property and equipment are expensed as incurred. Tooling is amortized over the life of the product, generally 3-5 years. Estimated service lives range from 15 - 39 years for buildings and improvements and 5 - 7 years for machinery and equipment. Accelerated and straight-line methods are used for income tax reporting. | |||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||
Impairment of Long-Lived Assets | |||||||||||||
The Company evaluates the carrying value of long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the assets, the carrying value is reduced to the estimated fair value as measured by the associated discounted cash flows. Based on impairment indicators not being present, the Company determined the carrying value of long-lived assets was not impaired. | |||||||||||||
Intangibles | ' | ||||||||||||
Intangibles | |||||||||||||
Identified intangible assets are acquired customer relationships, homologation licenses, and a non-compete agreement. Intangible assets before accumulated amortization were $1,950,000 at March 31, 2014 and 2013. Accumulated amortization was $1,428,000 and $1,345,000 at March 31, 2014 and 2013, respectively. Amortization expense is expected to be approximately $83,000 in fiscal 2015, 2016, 2017, 2018 and 2019. | |||||||||||||
The changes in the carrying amount of identified intangibles included in other assets for the fiscal years ended March 31, 2014 and 2013 are as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of period | $ | 605,000 | $ | 688,000 | |||||||||
Current year amortization | (83,000 | ) | (83,000 | ) | |||||||||
Balance at end of period | $ | 522,000 | $ | 605,000 | |||||||||
Product Warranties | ' | ||||||||||||
Product Warranties | |||||||||||||
The Company generally provides a limited warranty to the owner of snowmobiles for twelve months from the date of consumer registration and for six months on ATVs and ROVs. The Company provides for estimated warranty costs at the time of sale based on historical rates and trends and makes subsequent adjustments to its estimate as actual claims become known or the amounts are determinable. The following represents changes in the Company’s accrued warranty liability for the fiscal years ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 18,709,000 | $ | 18,521,000 | $ | 14,049,000 | |||||||
Warranty provision | 16,770,000 | 19,449,000 | 14,675,000 | ||||||||||
Warranty claim payments | (16,122,000 | ) | (19,261,000 | ) | (10,203,000 | ) | |||||||
Balance at end of period | $ | 19,357,000 | $ | 18,709,000 | $ | 18,521,000 | |||||||
Insurance | ' | ||||||||||||
Insurance | |||||||||||||
The Company is self-insured for employee medical, workers’ compensation, and product liability claims. Specific stop loss coverages are provided for catastrophic claims. Losses and claims are charged to operations when it is probable a loss has been incurred and the amount can be reasonably estimated. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition | |||||||||||||
The Company recognizes revenue and provides for estimated marketing and sales incentive costs when products are shipped to dealers and distributors pursuant to their order, the price is fixed and collection is reasonably assured. Shipping and handling costs are recorded as a component of costs of goods sold and shipping charges to the dealers are recorded as revenue at the time products are shipped. | |||||||||||||
Return allowances for parts and accessories are recorded as a reduction of revenue when the products are sold based on the company’s return allowance program and historical experience. | |||||||||||||
Sales tax collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from the sales revenue as the Company considers itself a pass-through conduit for collecting and remitting sales taxes. | |||||||||||||
Marketing and Sales Incentive Costs | ' | ||||||||||||
Marketing and Sales Incentive Costs | |||||||||||||
At the time product revenue is recognized the Company provides for various marketing and sales incentive costs which are offered to its dealers and consumers. Examples of these costs, which are recognized as a reduction of revenue when the products are sold, include: dealer and consumer rebates, dealer floor plan financing assistance and other incentive and promotion programs. Generally, the Company records provisions for these marketing programs at the later of when the revenue is recognized or when the sales incentive or marketing program is approved and communicated for products previously shipped. Sales incentives that involve a free product or service delivered to the consumer are recorded as a component of cost of goods sold. The Company estimates the costs of these various incentive and marketing programs at the time of sale or subsequently when programs are approved and communicated based on historical experience. To the extent current experience differs with previous estimates the accrued liability for marketing and sales incentives is adjusted accordingly. | |||||||||||||
Dealer Holdback | ' | ||||||||||||
Dealer Holdback | |||||||||||||
The Company records a dealer holdback program liability at the time certain products are shipped to its dealers. If the products subject to the holdback program are sold within the program time period, the Company refunds a portion of the original sale price, referred to as dealer holdback, to the dealer within the program time period and refunds any remaining balances to its dealers when the program time periods end. The Company’s dealer holdback program liability, included within accounts payable, was $19,448,000 and $17,574,000 as of March 31, 2014 and 2013, respectively. | |||||||||||||
Research and Development | ' | ||||||||||||
Research and Development | |||||||||||||
Research and development costs are expensed as incurred. Research and development expense was $23,998,000, $20,693,000 and $17,862,000 during fiscal 2014, 2013 and 2012, respectively. | |||||||||||||
Advertising | ' | ||||||||||||
Advertising | |||||||||||||
The Company expenses advertising costs as incurred, except for cooperative advertising obligations arising related to the sale of the Company’s products to its dealers. The estimated cost of cooperative advertising, which the dealer is required to support, is recorded as marketing expense at the time the product is sold. Cooperative advertising was $3,440,000, $3,556,000 and $2,900,000 in fiscal 2014, 2013 and 2012, respectively. Total advertising expense, including cooperative advertising, was $17,562,000, $17,232,000 and $17,225,000 in fiscal 2014, 2013 and 2012, respectively. | |||||||||||||
Net Earnings Per Share | ' | ||||||||||||
Net Earnings Per Share | |||||||||||||
The Company’s diluted weighted average shares outstanding include common shares and common share equivalents relating to stock options, when dilutive. No options outstanding were excluded from the computation of common share equivalents because they were anti-dilutive during fiscal 2014. Options to purchase 70,470 and 1,131,732 shares of common stock with weighted average exercise prices of $43.79 and $19.99 were outstanding during fiscal 2013 and 2012, respectively, but were excluded from the computation of common share equivalents because they were anti-dilutive. | |||||||||||||
Weighted average shares outstanding consist of the following for the fiscal years ended March 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average number of common shares outstanding | 13,275,000 | 13,155,000 | 16,721,000 | ||||||||||
Dilutive effect of option plan | 323,000 | 606,000 | 737,000 | ||||||||||
Common and potential shares outstanding—diluted | 13,598,000 | 13,761,000 | 17,458,000 | ||||||||||
Foreign Currency Translation | ' | ||||||||||||
Foreign Currency Translation | |||||||||||||
The Company’s activities with Canadian dealers are denominated in Canadian currency. The Company’s activities with European on-road ATV dealers and distributors are denominated in the Euro. Assets and liabilities denominated in Canadian currency and the Euro are translated using the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average foreign exchange rates in effect for the period. Translation gains and losses relating to the Canadian currency are reflected in the results of operations and Euro currency are reflected as a component of other comprehensive income. | |||||||||||||
Comprehensive Income | ' | ||||||||||||
Comprehensive Income | |||||||||||||
Comprehensive income represents net earnings adjusted for the unrealized gain or loss on derivative instruments, and foreign currency translation adjustments and is shown in the consolidated financial statements of comprehensive income. | |||||||||||||
Segment Reporting | ' | ||||||||||||
Segment Reporting | |||||||||||||
The Company’s operations constitute three operating segments based on its product lines—snowmobile; ATV; and parts, garments and accessories (“PG&A). For purposes of segment reporting the Company aggregates the snowmobile and ATV segments as the segments have similar economic characteristics. Detailed segment information is reported in Note J. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Schedule of Allowance for Uncollectible Accounts for Accounts Receivable | ' | ||||||||||||
The activity in the allowance for uncollectible accounts for accounts receivable is as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of period | $ | 2,759,000 | $ | 3,421,000 | |||||||||
Provisions charged to expense | (872,000 | ) | 621,000 | ||||||||||
Deductions for amounts written-off | 101,000 | (1,283,000 | ) | ||||||||||
Balance at end of period | $ | 1,988,000 | $ | 2,759,000 | |||||||||
Changes in Carrying Amount of Identified Intangibles | ' | ||||||||||||
The changes in the carrying amount of identified intangibles included in other assets for the fiscal years ended March 31, 2014 and 2013 are as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of period | $ | 605,000 | ) | $ | 688,000 | ) | |||||||
Current year amortization | (83,000 | ) | (83,000 | ) | |||||||||
Balance at end of period | $ | 522,000 | ) | $ | 605,000 | ) | |||||||
Changes in Accrued Warranty Liability | ' | ||||||||||||
The following represents changes in the Company’s accrued warranty liability for the fiscal years ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 18,709,000 | ) | $ | 18,521,000 | ) | $ | 14,049,000 | ) | ||||
Warranty provision | 16,770,000 | ) | 19,449,000 | ) | 14,675,000 | ) | |||||||
Warranty claim payments | (16,122,000 | ) | (19,261,000 | ) | (10,203,000 | ) | |||||||
Balance at end of period | $ | 19,357,000 | ) | $ | 18,709,000 | ) | $ | 18,521,000 | ) | ||||
Weighted Average Shares Outstanding | ' | ||||||||||||
Weighted average shares outstanding consist of the following for the fiscal years ended March 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average number of common shares outstanding | 13,275,000 | 13,155,000 | 16,721,000 | ||||||||||
Dilutive effect of option plan | 323,000 | 606,000 | 737,000 | ||||||||||
Common and potential shares outstanding—diluted | 13,598,000 | 13,761,000 | 17,458,000 | ||||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Components of Inventories | ' | ||||||||
Inventories consist of the following at March 31: | |||||||||
2014 | 2013 | ||||||||
Raw materials and sub-assemblies | $ | 52,580,000 | $ | 29,310,000 | |||||
Finished goods | 55,327,000 | 41,084,000 | |||||||
Parts, garments and accessories | 32,745,000 | 25,995,000 | |||||||
$ | 140,652,000 | $ | 96,389,000 | ||||||
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Components of Accrued Expenses | ' | ||||||||
Accrued expenses consist of the following at March 31: | |||||||||
2014 | 2013 | ||||||||
Marketing | $ | 11,671,000 | $ | 11,971,000 | |||||
Compensation | 9,338,000 | 10,682,000 | |||||||
Warranties | 19,357,000 | 18,709,000 | |||||||
Insurance | 7,026,000 | 9,254,000 | |||||||
Other | 7,267,000 | 5,120,000 | |||||||
$ | 54,659,000 | $ | 55,736,000 | ||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Income Before Income Tax | ' | ||||||||||||
Arctic Cat’s income before income taxes was generated from its United States and foreign operations as follows: | |||||||||||||
For the years ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 58,655,000 | $ | 60,148,000 | $ | 44,216,000 | |||||||
Foreign | 1,749,000 | 531,000 | 1,752,000 | ||||||||||
Income before income taxes | $ | 60,404,000 | $ | 60,679,000 | $ | 45,968,000 | |||||||
Schedule of Income Tax Expense (Benefit) | ' | ||||||||||||
Income tax expense consists of the following for the fiscal years ended March 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current | |||||||||||||
Federal | $ | 13,345,000 | $ | 18,624,000 | $ | 14,089,000 | |||||||
State | 900,000 | 937,000 | 575,000 | ||||||||||
Foreign | 436,000 | 132,000 | 337,000 | ||||||||||
Deferred | 6,319,000 | 1,241,000 | 1,026,000 | ||||||||||
$ | 21,000,000 | $ | 20,934,000 | $ | 16,027,000 | ||||||||
Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate | ' | ||||||||||||
The following is a reconciliation of the federal statutory income tax rate to the effective tax rate for the fiscal years ended March 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State taxes | 1.7 | 2.2 | 3 | ||||||||||
Research and other tax credit | (1.0 | ) | (2.0 | ) | (1.0 | ) | |||||||
Domestic manufacturers deduction | (1.4 | ) | (1.2 | ) | (1.0 | ) | |||||||
Uncertain tax positions | (0.1 | ) | (0.2 | ) | (0.7 | ) | |||||||
US subpart F adjustments | 0.4 | 0.4 | 0.5 | ||||||||||
Foreign tax rate difference | (0.2 | ) | (0.1 | ) | (0.4 | ) | |||||||
Stock options | (0.1 | ) | 0.1 | (0.5 | ) | ||||||||
Other | 0.5 | 0.3 | — | ||||||||||
34.8 | % | 34.5 | % | 34.9 | % | ||||||||
Cumulative Temporary Differences Between Tax Bases of Assets and Liabilities and their Carrying Amounts | ' | ||||||||||||
The cumulative temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes under the liability method are as follows at March 31: | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred income tax assets | |||||||||||||
Accrued expenses | $ | 5,976,000 | $ | 7,907,000 | |||||||||
Accrued warranty | 6,199,000 | 6,525,000 | |||||||||||
Inventory related items | 4,175,000 | 3,106,000 | |||||||||||
Other | 441,000 | 981,000 | |||||||||||
Total assets | 16,791,000 | 18,519,000 | |||||||||||
Current deferred income tax liability | |||||||||||||
Prepaid expenses | 1,349,000 | 976,000 | |||||||||||
Other | 471,000 | 723,000 | |||||||||||
Total liabilities | 1,820,000 | 1,699,000 | |||||||||||
Net current deferred tax asset | $ | 14,971,000 | $ | 16,820,000 | |||||||||
Non-current deferred income tax liability | |||||||||||||
Property and equipment | $ | 8,710,000 | $ | 4,381,000 | |||||||||
Non-current deferred tax liability | $ | 8,710,000 | $ | 4,381,000 | |||||||||
Schedule of Unrecognized Tax Benefits | ' | ||||||||||||
Reconciliation of the amount of unrecognized tax benefits excluding interest and penalties is as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of period | $ | 1,384,000 | $ | 1,381,000 | |||||||||
Increases related to prior year tax positions | 104,000 | 317,000 | |||||||||||
Decreases related to prior year tax positions | (88,000 | ) | (578,000 | ) | |||||||||
Increases related to current year tax positions | 307,000 | 264,000 | |||||||||||
Settlements | — | — | |||||||||||
Balance at end of period | $ | 1,707,000 | $ | 1,384,000 | |||||||||
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Assumptions Used to Determine Fair Value of Stock Options Issued | ' | ||||||||||||||||||||
The following assumptions were used to estimate the fair value of options: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Assumptions: | |||||||||||||||||||||
Dividend yield | 1 | % | 1 | % | 1 | % | |||||||||||||||
Average term | 5 years | 5 years | 5 years | ||||||||||||||||||
Volatility | 49 | % | 47 | % | 42 | % | |||||||||||||||
Risk-free rate of return | 0.8 | % | 1.3 | % | 2.1 | % | |||||||||||||||
Summary of Weighted Average Fair Value of Options Granted | ' | ||||||||||||||||||||
The weighted average fair value of options granted during each of the following years ended March 31: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fair value of options granted | $ | 16.91 | $ | 23.58 | $ | 6.04 | |||||||||||||||
Stock Option Activity | ' | ||||||||||||||||||||
Transactions under the plans during each of the three years in the period ended March 31, are summarized as follows: | |||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||
Shares under | average exercise | ||||||||||||||||||||
option | price | ||||||||||||||||||||
Outstanding at March 31, 2011 | 3,300,453 | $ | 14.65 | ||||||||||||||||||
Granted | 254,295 | 15.71 | |||||||||||||||||||
Cancelled | (135,000 | ) | 17.17 | ||||||||||||||||||
Exercised | (1,915,071 | ) | 15.25 | ||||||||||||||||||
Outstanding at March 31, 2012 | 1,504,677 | 13.84 | |||||||||||||||||||
Granted | 72,532 | 43.5 | |||||||||||||||||||
Cancelled | (11,705 | ) | 17.78 | ||||||||||||||||||
Exercised | (554,854 | ) | 10.76 | ||||||||||||||||||
Outstanding at March 31, 2013 | 1,010,650 | 17.61 | |||||||||||||||||||
Granted | 96,209 | 42.99 | |||||||||||||||||||
Cancelled | (9,071 | ) | 25.68 | ||||||||||||||||||
Exercised | (616,951 | ) | 15.73 | ||||||||||||||||||
Outstanding at March 31, 2014 | 480,837 | $ | 24.95 | ||||||||||||||||||
Options exercisable at March 31 are as follows: | |||||||||||||||||||||
2012 | 867,383 | $ | 15.33 | ||||||||||||||||||
2013 | 648,103 | $ | 16.46 | ||||||||||||||||||
2014 | 262,734 | $ | 17.83 | ||||||||||||||||||
Outstanding and Exercisable Stock Options | ' | ||||||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||||||
The following tables summarize information concerning currently outstanding and exercisable stock options at March 31, 2014: | |||||||||||||||||||||
Options Outstanding and Exercisable | |||||||||||||||||||||
Range of Exercise Prices | Number | Weighted | Weighted | Number | Weighted | ||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||
Remaining | Exercise | Exercise | |||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||
Life | |||||||||||||||||||||
$6.26 - 9.38 | 7,800 | 2.79 years | $ | 6.26 | 7,800 | $ | 6.26 | ||||||||||||||
9.57 - 13.84 | 57,164 | 5.84 years | 10.91 | 57,164 | 10.91 | ||||||||||||||||
14.68 - 21.03 | 227,949 | 7.14 years | 16 | 151,221 | 16.11 | ||||||||||||||||
21.96 - 27.69 | 24,000 | 9.60 years | 24.83 | 24,000 | 24.83 | ||||||||||||||||
33.67 - 43.79 | 163,924 | 8.60 years | 43.19 | 22,549 | 43.48 | ||||||||||||||||
480,837 | 7.54 years | $ | 24.95 | 262,734 | $ | 17.83 | |||||||||||||||
Restricted Stock Award | ' | ||||||||||||||||||||
Restricted Stock Activity | ' | ||||||||||||||||||||
Restricted stock and restricted stock unit award activity under the Plans for the fiscal years ended March 31, 2014 and 2013 is summarized as follows: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Restricted Shares | Shares | Weighted- | Shares | Weighted- | |||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant Date Fair | Grant Date Fair | ||||||||||||||||||||
Value | Value | ||||||||||||||||||||
Non-vested shares at March 31, | 42,820 | $ | 19.33 | 98,568 | $ | 11.61 | |||||||||||||||
Awarded | 8,000 | 53.91 | 8,700 | 33.73 | |||||||||||||||||
Vested | (34,120 | ) | 15.66 | (63,323 | ) | 9.42 | |||||||||||||||
Forfeited | (500 | ) | 41.52 | (1,125 | ) | 12.45 | |||||||||||||||
Non-vested shares at March 31, | 16,200 | $ | 43.45 | 42,820 | $ | 19.33 | |||||||||||||||
Restricted Stock Units | ' | ||||||||||||||||||||
Restricted Stock Activity | ' | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Restricted Stock Units | Shares | Weighted- | Shares | Weighted- | |||||||||||||||||
Average | Average | ||||||||||||||||||||
Grant Date Fair | Grant Date Fair | ||||||||||||||||||||
Value | Value | ||||||||||||||||||||
Non-vested shares at March 31, | 41,607 | $ | 27.35 | 39,729 | $ | 18.31 | |||||||||||||||
Granted | 17,976 | 42.99 | 15,109 | 43.21 | |||||||||||||||||
Vested | (18,263 | ) | 25.16 | (13,231 | ) | 18.31 | |||||||||||||||
Forfeited | (1,217 | ) | 27.6 | — | — | ||||||||||||||||
Non-vested shares at March 31, | 40,103 | $ | 35.35 | 41,607 | $ | 27.35 | |||||||||||||||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Schedule of Segment Information | ' | ||||||||||||
Segment information presented below is limited to sales and margin data. | |||||||||||||
Years ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales | |||||||||||||
Snowmobile & ATV units | $ | 615,608,000 | $ | 563,464,000 | $ | 477,329,000 | |||||||
Parts, garments, & accessories | 114,883,000 | 108,124,000 | 107,939,000 | ||||||||||
Total net sales | 730,491,000 | 671,588,000 | 585,268,000 | ||||||||||
Cost of goods sold | |||||||||||||
Snowmobile & ATV units | 506,707,000 | 450,291,000 | 388,523,000 | ||||||||||
Parts, garments, & accessories | 72,705,000 | 70,401,000 | 66,126,000 | ||||||||||
Total cost of goods sold | 579,412,000 | 520,692,000 | 454,649,000 | ||||||||||
Gross profit | |||||||||||||
Snowmobile & ATV units | 108,901,000 | 113,173,000 | 88,806,000 | ||||||||||
Parts, garments, & accessories | 42,178,000 | 37,723,000 | 41,813,000 | ||||||||||
Total gross profit | $ | 151,079,000 | $ | 150,896,000 | $ | 130,619,000 | |||||||
Years ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales by product line | |||||||||||||
Snowmobile units | $ | 282,442,000 | $ | 263,693,000 | $ | 250,438,000 | |||||||
ATV units | 333,166,000 | 299,771,000 | 226,891,000 | ||||||||||
Parts, garments, & accessories | 114,883,000 | 108,124,000 | 107,939,000 | ||||||||||
Total net sales | $ | 730,491,000 | $ | 671,588,000 | $ | 585,268,000 | |||||||
Years ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales by geography, based on location of the customer | |||||||||||||
United States | $ | 404,347,000 | $ | 337,250,000 | $ | 292,049,000 | |||||||
Canada | 215,631,000 | 215,569,000 | 180,608,000 | ||||||||||
Europe and other | 110,513,000 | 118,769,000 | 112,611,000 | ||||||||||
Total net sales | $ | 730,491,000 | $ | 671,588,000 | $ | 585,268,000 | |||||||
Recovered_Sheet1
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $22,524,000 | $35,566,000 | $24,138,000 | $14,700,000 |
Allowance for uncollectible accounts | 1,988,000 | 2,759,000 | 3,421,000 | ' |
Forward exchange contract notional amount | 89,649,000 | 39,063,000 | ' | ' |
Forward exchange contract fair value, net | 424,000 | 41,000 | ' | ' |
Forward exchange contract maturity period | '2014-03 | '2013-12 | ' | ' |
Intangible assets before accumulated amortization | 1,950,000 | 1,950,000 | ' | ' |
Accumulated amortization | 1,428,000 | 1,345,000 | ' | ' |
Amortization expense, 2015 | 83,000 | ' | ' | ' |
Amortization expense, 2016 | 83,000 | ' | ' | ' |
Amortization expense, 2017 | 83,000 | ' | ' | ' |
Amortization expense, 2018 | 83,000 | ' | ' | ' |
Amortization expense, 2019 | 83,000 | ' | ' | ' |
Company's dealer holdback program liability | 19,448,000 | 17,574,000 | ' | ' |
Research and development expense | 23,998,000 | 20,693,000 | 17,862,000 | ' |
Cooperate advertising expense | 3,440,000 | 3,556,000 | 2,900,000 | ' |
Total advertising expense | 17,562,000 | 17,232,000 | 17,225,000 | ' |
Anti-dilutive options to purchase shares of common stock excluded from computation of common share equivalents | 0 | 70,470 | 1,131,732 | ' |
Anti-dilutive options to purchase shares of common stock excluded from computation of common share equivalents, weighted average exercise price | ' | $43.79 | $19.99 | ' |
Minimum | Buildings and Improvements | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Estimated service lives | '15 years | ' | ' | ' |
Minimum | Machinery and equipment | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Estimated service lives | '5 years | ' | ' | ' |
Minimum | Tooling | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Estimated service lives | '3 years | ' | ' | ' |
Maximum | Buildings and Improvements | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Estimated service lives | '39 years | ' | ' | ' |
Maximum | Machinery and equipment | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Estimated service lives | '7 years | ' | ' | ' |
Maximum | Tooling | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Estimated service lives | '5 years | ' | ' | ' |
Fair Value, Inputs, Level 2 | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Foreign currency contract fair value liability | 424,000 | 41,000 | ' | ' |
Allowance for Uncollectible Accounts | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Allowance for uncollectible accounts | 1,988,000 | 2,759,000 | ' | ' |
Europe and Canada | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $11,125,000 | $7,107,000 | ' | ' |
Schedule_of_Allowance_for_Unco
Schedule of Allowance for Uncollectible Accounts for Accounts Receivable (Detail) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Receivables [Abstract] | ' | ' |
Balance at beginning of period | $2,759,000 | $3,421,000 |
Provisions charged to expense | -872,000 | 621,000 |
Deductions for amounts written-off | 101,000 | -1,283,000 |
Balance at end of period | $1,988,000 | $2,759,000 |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Identified Intangibles (Detail) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Intangible Assets [Abstract] | ' | ' |
Balance at beginning of period | $605,000 | $688,000 |
Current year amortization | -83,000 | -83,000 |
Balance at end of period | $522,000 | $605,000 |
Changes_in_Accrued_Warranty_Li
Changes in Accrued Warranty Liability (Detail) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Product Warranties Disclosures [Abstract] | ' | ' | ' |
Product Warranty Accrual, Beginning of period | $18,709,000 | $18,521,000 | $14,049,000 |
Warranty provision | 16,770,000 | 19,449,000 | 14,675,000 |
Warranty claim payments | -16,122,000 | -19,261,000 | -10,203,000 |
Product Warranty Accrual, End of period | $19,357,000 | $18,709,000 | $18,521,000 |
Schedule_of_Weighted_Average_S
Schedule of Weighted Average Shares Outstanding (Detail) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Weighted average number of common shares outstanding | 13,275,000 | 13,155,000 | 16,721,000 |
Dilutive effect of option plan | 323,000 | 606,000 | 737,000 |
Common and potential shares outstanding-diluted | 13,598,000 | 13,761,000 | 17,458,000 |
ShortTerm_Investments_Addition
Short-Term Investments - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Short Term Investments [Abstract] | ' | ' |
Investment in money market funds | $60,008,000 | $77,241,000 |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Inventories [Abstract] | ' | ' |
Raw materials and sub-assemblies | $52,580,000 | $29,310,000 |
Finished goods | 55,327,000 | 41,084,000 |
Parts, garments and accessories | 32,745,000 | 25,995,000 |
Inventory, Total | $140,652,000 | $96,389,000 |
Components_of_Accrued_Expenses
Components of Accrued Expenses (Detail) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 |
Accrued Liabilities Current [Abstract] | ' | ' | ' | ' |
Marketing | $11,671,000 | $11,971,000 | ' | ' |
Compensation | 9,338,000 | 10,682,000 | ' | ' |
Warranties | 19,357,000 | 18,709,000 | 18,521,000 | 14,049,000 |
Insurance | 7,026,000 | 9,254,000 | ' | ' |
Other | 7,267,000 | 5,120,000 | ' | ' |
Accrued Liabilities, Current, Total | $54,659,000 | $55,736,000 | ' | ' |
Financing_Additional_Informati
Financing - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Nov. 30, 2013 | Nov. 30, 2009 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
Senior Secured Revolving Credit Facility | Senior Secured Revolving Credit Facility | Senior Secured Revolving Credit Facility | Senior Secured Revolving Credit Facility | Senior Secured Revolving Credit Facility | Senior Secured Revolving Credit Facility | Line of Credit | Line of Credit | Letter of Credit | Letter of Credit | June through November | All other months | ||
Prime Rate | Federal Funds Rate | Libor Rate | Senior Secured Revolving Credit Facility | Senior Secured Revolving Credit Facility | |||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility maximum borrowing capacity value | ' | ' | $100,000,000 | $60,000,000 | ' | ' | ' | ' | ' | ' | ' | $100,000,000 | $50,000,000 |
Senior secured revolving credit agreement description | ' | 'This agreement is scheduled to expire in November of 2017. Under the agreement, the Company may borrow up to $10,000,000 during May through November and up to $50,000,000 during all other months of the fiscal year. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, basis spread variable rate | ' | ' | ' | ' | 0.75% | 0.50% | 1.00% | ' | ' | ' | ' | ' | ' |
Borrowings under line of credit bear interest at effective rate | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit Interest rate description | 'Borrowings under the line of credit bear interest at the greater of the following rates; the prime rate plus 0.75%, the federal funds rate plus 0.50% or the LIBOR for a 30 day interest period plus 1.00%. As of March 31, 2014, the effective rate was 3.50%. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit balances | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $15,938,000 | $17,275,000 | ' | ' |
Retirement_Savings_Plan_Additi
Retirement Savings Plan - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Retirement Savings Plan [Abstract] | ' | ' | ' | ' |
Employees contribution towards retirement plan, percentage | ' | 50.00% | ' | ' |
Matching contribution by the employer, percentage | ' | 50.00% | ' | ' |
Maximum percentage of employee compensation, that the employer may contribute towards the plan | ' | 4.00% | ' | ' |
Maximum contribution by employees towards retirement plan | $255,000 | ' | ' | ' |
Matching contribution by the employer | ' | 1,035,000 | 889,000 | ' |
Discretionary contributions by the employer | ' | ' | ' | $900,000 |
Schedule_of_Income_Before_Inco
Schedule of Income Before Income Tax (Detail) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
United States | $58,655,000 | $60,148,000 | $44,216,000 |
Foreign | 1,749,000 | 531,000 | 1,752,000 |
Earnings before incomes taxes | $60,404,000 | $60,679,000 | $45,968,000 |
Schedule_of_Income_Tax_Expense
Schedule of Income Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal | $13,345,000 | $18,624,000 | $14,089,000 |
State | 900,000 | 937,000 | 575,000 |
Foreign | 436,000 | 132,000 | 337,000 |
Deferred | 6,319,000 | 1,241,000 | 1,026,000 |
Income tax expense (benefit) | $21,000,000 | $20,934,000 | $16,027,000 |
Reconciliation_of_Federal_Stat
Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Statutory income tax rate | 35.00% | 35.00% | 35.00% |
State taxes | 1.70% | 2.20% | 3.00% |
Research and other tax credit | -1.00% | -2.00% | -1.00% |
Domestic manufacturers deduction | -1.40% | -1.20% | -1.00% |
Uncertain tax positions | -0.10% | -0.20% | -0.70% |
US subpart F adjustments | 0.40% | 0.40% | 0.50% |
Foreign tax rate difference | -0.20% | -0.10% | -0.40% |
Stock options | -0.10% | 0.10% | -0.50% |
Other | 0.50% | 0.30% | ' |
Reconciliation of federal income tax rate, total | 34.80% | 34.50% | 34.90% |
Cumulative_Temporary_Differenc
Cumulative Temporary Differences Between Tax Bases of Assets and Liabilities and their Carrying Amounts (Detail) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Current deferred income tax assets | ' | ' |
Accrued expenses | $5,976,000 | $7,907,000 |
Accrued warranty | 6,199,000 | 6,525,000 |
Inventory related items | 4,175,000 | 3,106,000 |
Other | 441,000 | 981,000 |
Total assets | 16,791,000 | 18,519,000 |
Current deferred income tax liability | ' | ' |
Prepaid expenses | 1,349,000 | 976,000 |
Other | 471,000 | 723,000 |
Total liabilities | 1,820,000 | 1,699,000 |
Net current deferred tax asset | 14,971,000 | 16,820,000 |
Non-current deferred income tax liability | ' | ' |
Property and equipment | 8,710,000 | 4,381,000 |
Non-current deferred tax liability | $8,710,000 | $4,381,000 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Deferred tax assets operating loss carry forwards | $100,000 | ' |
Deferred tax assets operating loss carry forwards, foreign | 400,000 | ' |
Deferred tax assets, valuation allowance | 0 | ' |
Liabilities related to unrecognized tax benefits | 2,025,000 | 1,617,000 |
Unrecognized tax benefits, potential interest and penalties | 318,000 | 233,000 |
Anticipated recognized portion of unrecognized tax benefits | $143,000 | ' |
Percentage of likelihood of tax benefit realized | 50.00% | ' |
Schedule_of_Unrecognized_Tax_B
Schedule of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns [Roll Forward] | ' | ' |
Balance at beginning of period | $1,384,000 | $1,381,000 |
Increases related to prior year tax positions | 104,000 | 317,000 |
Decreases related to prior year tax positions | -88,000 | -578,000 |
Increases related to current year tax positions | 307,000 | 264,000 |
Settlements | ' | ' |
Balance at end of period | $1,707,000 | $1,384,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Loss Contingencies [Line Items] | ' | ' | ' |
Maximum repurchase amount repossessed products sold to dealers | $62,964,000 | ' | ' |
Total rent expense under lease agreement | 1,413,000 | 1,111,000 | 875,000 |
Future minimum payments, exclusive of other costs required under non-cancelable operating leases for fiscal year 2015 | 30,000 | ' | ' |
Loss Sharing Provisions | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Maximum repurchase amount repossessed products sold to dealers | $2,328,000 | ' | ' |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
15-May-13 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 22, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
2013 Omnibus Stock and Incentive Plan | Preferred Stock | Preferred Stock - Series B Junior Participating | Preferred Stock - Series B Junior Participating | Class B Common Stock | Restricted Stock Award | Restricted Stock Award | Restricted Stock Award | Restricted Stock Award | Restricted Stock Award | Stock Options and Restricted Stock Awards | Stock Options and Restricted Stock Awards | Stock Options and Restricted Stock Awards | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | |||||
2013 Omnibus Stock and Incentive Plan | 2007 Omnibus Stock and Incentive Plan | 2007 Omnibus Stock and Incentive Plan | 2013 Omnibus Stock and Incentive Plan | Restricted Stock Award | 2013 Omnibus Stock and Incentive Plan | Restricted Stock Award | |||||||||||||||||||||
Share Based Compensation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares available for grant | ' | 1,099,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option granted term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | '10 years | ' | ' |
Stock options and restricted stock awards granted, vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | '2 years | '3 years | ' | '3 years |
Stock-based compensation expense | ' | $2,584,000 | $2,337,000 | $2,001,000 | ' | ' | ' | ' | ' | $395,000 | $486,000 | ' | ' | ' | $2,584,000 | $2,337,000 | $2,001,000 | $643,000 | $490,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation related expense reduced in basic and diluted earnings per share | ' | $0.12 | $0.11 | $0.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation costs related to non-vested stock options and restricted stock awards | ' | 2,557,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense related to non-vested stock options, weighted average period of recognition | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | '1 year 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | '1 year 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock available for issuance | ' | ' | ' | ' | 1,099,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock award requisite service period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | '3 years | ' |
Restricted common stock issued and outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,200 | 42,820 | 98,568 | 500 | 15,700 | ' | ' | ' | 40,103 | 41,607 | 39,729 | 40,103 | ' | ' | ' | ' | ' | ' |
Unamortized compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 369,000 | ' | ' | ' | ' | ' | ' | ' | 748,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, authorized for issuance | ' | 2,050,000 | 2,050,000 | ' | ' | 2,500,000 | 450,000 | 450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | ' | $1 | $1 | ' | ' | $1 | $1 | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of shares repurchased and canceled | ' | 28,188,000 | 5,401,000 | 1,909,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares repurchased and canceled | ' | 633,816 | 149,424 | 119,087 | ' | ' | ' | ' | 6,102,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program remaining authorized repurchase value | 30,000,000 | 2,083,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining authorization common stock repurchase | 652,000 | 43,587 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of share repurchased | ' | 28,190,000 | 5,401,000 | 81,588,000 | ' | ' | ' | ' | 79,326,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees and related expense for repurchase | ' | ' | ' | ' | ' | ' | ' | ' | $353,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumptions_Used_to_Determine_
Assumptions Used to Determine Fair Value of Stock Options Issued (Detail) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Dividend yield | 1.00% | 1.00% | 1.00% |
Average term | '5 years | '5 years | '5 years |
Volatility | 49.00% | 47.00% | 42.00% |
Risk-free rate of return | 0.80% | 1.30% | 2.10% |
Summary_of_Weighted_Average_Fa
Summary of Weighted Average Fair Value of Options Granted (Detail) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Fair value of options granted | $16.91 | $23.58 | $6.04 |
Option_Transaction_Under_Plans
Option Transaction Under Plans (Detail) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Number of Shares under option, Outstanding beginning balance | 1,010,650 | 1,504,677 | 3,300,453 |
Number of Shares under option, Granted | 96,209 | 72,532 | 254,295 |
Number of Shares under option, Cancelled | -9,071 | -11,705 | -135,000 |
Number of Shares under option, Exercised | -616,951 | -554,854 | -1,915,071 |
Number of Shares under option, Outstanding ending balance | 480,837 | 1,010,650 | 1,504,677 |
Weighted average exercise price, Outstanding beginning balance | $17.61 | $13.84 | $14.65 |
Number of Shares under option, Options exercisable | 262,734 | 648,103 | 867,383 |
Weighted average exercise price, Granted | $42.99 | $43.50 | $15.71 |
Weighted average exercise price, Cancelled | $25.68 | $17.78 | $17.17 |
Weighted average exercise price, Exercised | $15.73 | $10.76 | $15.25 |
Weighted average exercise price, Outstanding ending balance | $24.95 | $17.61 | $13.84 |
Weighted average exercise price, Options exercisable | $17.83 | $16.46 | $15.33 |
Summary_of_Information_Concern
Summary of Information Concerning Currently Outstanding and Exercisable Stock Options (Detail) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number Outstanding | 480,837 | ' | ' |
Weighted Average Remaining Contractual Life | '7 years 6 months 15 days | ' | ' |
Weighted Average Exercise Price | $24.95 | ' | ' |
Number Exercisable | 262,734 | 648,103 | 867,383 |
Weighted Average Exercise Price | $17.83 | $16.46 | $15.33 |
6.26-9.38 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Range of Exercise Prices, Minimum | $6.26 | ' | ' |
Range of Exercise Prices, Maximum | $9.38 | ' | ' |
Number Outstanding | 7,800 | ' | ' |
Weighted Average Remaining Contractual Life | '2 years 9 months 15 days | ' | ' |
Weighted Average Exercise Price | $6.26 | ' | ' |
Number Exercisable | 7,800 | ' | ' |
Weighted Average Exercise Price | $6.26 | ' | ' |
9.57-13.84 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Range of Exercise Prices, Minimum | $9.57 | ' | ' |
Range of Exercise Prices, Maximum | $13.84 | ' | ' |
Number Outstanding | 57,164 | ' | ' |
Weighted Average Remaining Contractual Life | '5 years 10 months 2 days | ' | ' |
Weighted Average Exercise Price | $10.91 | ' | ' |
Number Exercisable | 57,164 | ' | ' |
Weighted Average Exercise Price | $10.91 | ' | ' |
14.68-21.03 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Range of Exercise Prices, Minimum | $14.68 | ' | ' |
Range of Exercise Prices, Maximum | $21.03 | ' | ' |
Number Outstanding | 227,949 | ' | ' |
Weighted Average Remaining Contractual Life | '7 years 1 month 21 days | ' | ' |
Weighted Average Exercise Price | $16 | ' | ' |
Number Exercisable | 151,221 | ' | ' |
Weighted Average Exercise Price | $16.11 | ' | ' |
21.96-27.69 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Range of Exercise Prices, Minimum | $21.96 | ' | ' |
Range of Exercise Prices, Maximum | $27.69 | ' | ' |
Number Outstanding | 24,000 | ' | ' |
Weighted Average Remaining Contractual Life | '9 years 7 months 6 days | ' | ' |
Weighted Average Exercise Price | $24.83 | ' | ' |
Number Exercisable | 24,000 | ' | ' |
Weighted Average Exercise Price | $24.83 | ' | ' |
33.67-43.79 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Range of Exercise Prices, Minimum | $33.67 | ' | ' |
Range of Exercise Prices, Maximum | $43.79 | ' | ' |
Number Outstanding | 163,924 | ' | ' |
Weighted Average Remaining Contractual Life | '8 years 7 months 6 days | ' | ' |
Weighted Average Exercise Price | $43.19 | ' | ' |
Number Exercisable | 22,549 | ' | ' |
Weighted Average Exercise Price | $43.48 | ' | ' |
Restricted_Stock_Activity_Deta
Restricted Stock Activity (Detail) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Restricted Stock Units | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Non-vested shares, Beginning balance | 41,607 | 39,729 |
Awarded | 17,976 | 15,109 |
Vested | -18,263 | -13,231 |
Forfeited | -1,217 | ' |
Non-vested shares, Ending balance | 40,103 | 41,607 |
Non-vested shares, Weighted-Average Grant Date Fair Value Beginning | $27.35 | $18.31 |
Awarded | $42.99 | $43.21 |
Vested | $25.16 | $18.31 |
Forfeited | $27.60 | ' |
Non-vested shares, Weighted-Average Grant Date Fair Value Ending | $35.35 | $27.35 |
Restricted Stock Award | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Non-vested shares, Beginning balance | 42,820 | 98,568 |
Awarded | 8,000 | 8,700 |
Vested | -34,120 | -63,323 |
Forfeited | -500 | -1,125 |
Non-vested shares, Ending balance | 16,200 | 42,820 |
Non-vested shares, Weighted-Average Grant Date Fair Value Beginning | $19.33 | $11.61 |
Awarded | $53.91 | $33.73 |
Vested | $15.66 | $9.42 |
Forfeited | $41.52 | $12.45 |
Non-vested shares, Weighted-Average Grant Date Fair Value Ending | $43.45 | $19.33 |
Schedule_of_Segment_Informatio
Schedule of Segment Information (Detail) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | $730,491,000 | $671,588,000 | $585,268,000 |
Cost of goods sold | 579,412,000 | 520,692,000 | 454,649,000 |
Gross profit | 151,079,000 | 150,896,000 | 130,619,000 |
United States | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 404,347,000 | 337,250,000 | 292,049,000 |
Canada | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 215,631,000 | 215,569,000 | 180,608,000 |
Europe and other | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 110,513,000 | 118,769,000 | 112,611,000 |
Snowmobile units - Product line | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 282,442,000 | 263,693,000 | 250,438,000 |
ATV units - Product line | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 333,166,000 | 299,771,000 | 226,891,000 |
Parts, garments & accessories - Product line | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 114,883,000 | 108,124,000 | 107,939,000 |
Snowmobile & ATV units | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 615,608,000 | 563,464,000 | 477,329,000 |
Cost of goods sold | 506,707,000 | 450,291,000 | 388,523,000 |
Gross profit | 108,901,000 | 113,173,000 | 88,806,000 |
Parts, garments & accessories | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 114,883,000 | 108,124,000 | 107,939,000 |
Cost of goods sold | 72,705,000 | 70,401,000 | 66,126,000 |
Gross profit | $42,178,000 | $37,723,000 | $41,813,000 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) (Europe and Canada, USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Europe and Canada | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Long-lived assets with carrying value | $751,000 | $1,533,000 | $1,414,000 |