Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 21, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PII | |
Entity Registrant Name | POLARIS INDUSTRIES INC/MN | |
Entity Central Index Key | 931,015 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 65,559,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 225,264 | $ 137,600 |
Trade receivables, net | 176,221 | 204,876 |
Inventories, net | 674,612 | 565,685 |
Prepaid expenses and other | 74,166 | 71,526 |
Income taxes receivable | 10,052 | 2,691 |
Deferred tax assets | 111,251 | 114,177 |
Total current assets | 1,271,566 | 1,096,555 |
Property and equipment, net | 587,935 | 555,428 |
Investment in finance affiliate | 88,690 | 89,107 |
Deferred tax assets | 46,271 | 41,201 |
Goodwill and other intangible assets, net | 232,142 | 223,966 |
Other long-term assets | 83,467 | 68,678 |
Total assets | 2,310,071 | 2,074,935 |
Current liabilities: | ||
Current portion of debt, capital lease obligations and notes payable | 4,839 | 2,528 |
Accounts payable | 381,174 | 343,470 |
Accrued expenses: | ||
Compensation | 104,336 | 102,379 |
Warranties | 55,097 | 53,104 |
Sales promotions and incentives | 145,091 | 138,630 |
Dealer holdback | 101,261 | 120,093 |
Other | 83,553 | 79,262 |
Income taxes payable | 34,269 | 11,344 |
Total current liabilities | 909,620 | 850,810 |
Long-term income taxes payable | 15,201 | 10,568 |
Capital lease obligations and notes payable | 34,955 | 23,620 |
Long-term debt | 276,819 | 200,000 |
Deferred tax liabilities | 15,913 | 18,191 |
Other long-term liabilities | 105,280 | 96,951 |
Total liabilities | 1,357,788 | 1,200,140 |
Deferred compensation | 14,923 | 13,528 |
Shareholders’ equity: | ||
Preferred stock $0.01 par value, 20,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock $0.01 par value, 160,000 shares authorized, 65,559 and 66,307 shares issued and outstanding, respectively | 656 | 663 |
Additional paid-in capital | 583,438 | 486,005 |
Retained earnings | 409,707 | 401,840 |
Accumulated other comprehensive loss, net | (56,441) | (27,241) |
Total shareholders’ equity | 937,360 | 861,267 |
Total liabilities and shareholders’ equity | $ 2,310,071 | $ 2,074,935 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 65,559,000 | 66,307,000 |
Common stock, shares outstanding | 65,559,000 | 66,307,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Sales | $ 1,456,000 | $ 1,302,343 | $ 3,613,672 | $ 3,204,648 |
Cost of sales | 1,040,377 | 914,069 | 2,584,904 | 2,253,043 |
Gross profit | 415,623 | 388,274 | 1,028,768 | 951,605 |
Operating expenses: | ||||
Selling and marketing | 91,169 | 87,567 | 240,510 | 227,315 |
Research and development | 44,432 | 38,586 | 124,726 | 111,083 |
General and administrative | 56,411 | 56,596 | 157,898 | 150,830 |
Total operating expenses | 192,012 | 182,749 | 523,134 | 489,228 |
Income from financial services | 19,065 | 17,048 | 51,345 | 42,313 |
Operating income | 242,676 | 222,573 | 556,979 | 504,690 |
Non-operating expense (income): | ||||
Interest expense | 2,966 | 2,835 | 8,848 | 8,686 |
Equity in loss of other affiliates | 1,345 | 1,036 | 4,716 | 2,899 |
Other expense (income), net | (1,345) | 252 | 8,776 | (3,736) |
Income before income taxes | 239,710 | 218,450 | 534,639 | 496,841 |
Provision for income taxes | 84,537 | 77,624 | 189,960 | 178,209 |
Net income | $ 155,173 | $ 140,826 | $ 344,679 | $ 318,632 |
Basic net income per share (in dollars per share) | $ 2.35 | $ 2.13 | $ 5.20 | $ 4.82 |
Diluted net income per share (in dollars per share) | $ 2.30 | $ 2.06 | $ 5.09 | $ 4.68 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 65,912 | 66,261 | 66,222 | 66,051 |
Diluted (in shares) | 67,368 | 68,328 | 67,781 | 68,125 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 155,173 | $ 140,826 | $ 344,679 | $ 318,632 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments, net of tax benefit (expense) of $313 and $526 in 2015 and $91 and ($48) in 2014 | (5,072) | (22,424) | (32,763) | (22,576) |
Unrealized gain (loss) on derivative instruments, net of tax expense of $1,982 and $2,119 in 2015 and $1,549 and $945 in 2014 | 3,332 | 2,603 | 3,563 | 1,588 |
Comprehensive income | $ 153,433 | $ 121,005 | $ 315,479 | $ 297,644 |
Consolidated Statements Of Com6
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 313 | $ 91 | $ 526 | $ (48) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ (1,982) | $ (1,549) | $ (2,119) | $ (945) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities: | ||
Net income | $ 344,679 | $ 318,632 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 112,902 | 91,041 |
Noncash compensation | 53,642 | 47,207 |
Noncash income from financial services | (21,810) | (10,778) |
Deferred income taxes | (5,280) | (10,915) |
Tax effect of share-based compensation exercises | (34,301) | (26,169) |
Other, net | 4,716 | 2,899 |
Changes in operating assets and liabilities: | ||
Trade receivables | 22,700 | 30,479 |
Inventories | (112,776) | (168,727) |
Accounts payable | 35,002 | 102,216 |
Accrued expenses | 13,621 | 139 |
Income taxes payable/receivable | 54,389 | 11,110 |
Prepaid expenses and others, net | (3,482) | (6,699) |
Net cash provided by operating activities | 464,002 | 380,435 |
Investing Activities: | ||
Purchase of property and equipment | (148,998) | (146,473) |
Investment in finance affiliate, net | 22,227 | 8,480 |
Investment in other affiliates | (15,337) | (8,316) |
Acquisition of businesses, net of cash acquired | (27,019) | (17,199) |
Net cash used for investing activities | (169,127) | (163,508) |
Financing Activities: | ||
Borrowings under debt arrangements / capital lease obligations | 2,155,310 | 1,921,386 |
Repayments under debt arrangements / capital lease obligations | (2,059,711) | (2,003,422) |
Repurchase and retirement of common shares | (247,795) | (3,970) |
Cash dividends to shareholders | (104,808) | (95,004) |
Proceeds from stock issuances under employee plans | 26,672 | 22,970 |
Tax effect of proceeds from share-based compensation exercises | 34,301 | 26,169 |
Net cash used for financing activities | (196,031) | (131,871) |
Impact of currency exchange rates on cash balances | (11,180) | (8,286) |
Net increase in cash and cash equivalents | 87,664 | 76,770 |
Cash and cash equivalents at beginning of period | 137,600 | 92,248 |
Cash and cash equivalents at end of period | 225,264 | 169,018 |
Noncash Activity: | ||
Property and equipment obtained through capital leases and notes payable | 14,500 | 24,908 |
Supplemental Cash Flow Information: | ||
Interest paid on debt borrowings | 6,965 | 6,823 |
Income taxes paid | $ 141,436 | $ 179,708 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of presentation. The accompanying unaudited consolidated financial statements of Polaris Industries Inc. ("Polaris" or the "Company") have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and, therefore, do not include all information and disclosures of results of operations, financial position and changes in cash flow in conformity with accounting principles generally accepted in the United States for complete financial statements. Accordingly, such statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 previously filed with the Securities and Exchange Commission. In the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. Due to the seasonality of snowmobiles; Off-Road Vehicles (ORV), which include all-terrain vehicles (ATV) and side-by-side vehicles; motorcycles; Global Adjacent Markets; and related Parts, Garments and Accessories (PG&A), and to certain changes in production and shipping cycles, results of such periods are not necessarily indicative of the results to be expected for the complete year. Fair value measurements. Fair value is 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. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: 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. In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The Company utilizes the market approach to measure fair value for its non-qualified deferred compensation assets and liabilities, and the income approach for foreign currency contracts and commodity contracts. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities, and for the income approach the Company uses significant other observable inputs to value its derivative instruments used to hedge foreign currency and commodity transactions. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of September 30, 2015 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 49,663 $ 49,663 — — Foreign exchange contracts, net 3,143 — $ 3,143 — Interest rate swap contracts 594 — 594 — Total assets at fair value $ 53,400 $ 49,663 $ 3,737 — Commodity contracts, net $ (1,743 ) — $ (1,743 ) — Non-qualified deferred compensation liabilities (49,663 ) $ (49,663 ) — — Total liabilities at fair value $ (51,406 ) $ (49,663 ) $ (1,743 ) — Fair Value Measurements as of December 31, 2014 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 41,797 $ 41,797 — — Total assets at fair value $ 41,797 $ 41,797 — — Commodity contracts, net $ (4,609 ) — $ (4,609 ) — Foreign exchange contracts, net (2,570 ) — (2,570 ) — Non-qualified deferred compensation liabilities (41,797 ) $ (41,797 ) — — Total liabilities at fair value $ (48,976 ) $ (41,797 ) $ (7,179 ) — Inventories. Inventory costs include material, labor and manufacturing overhead costs, including depreciation expense associated with the manufacture and distribution of the Company's products. Inventories are stated at the lower of cost (first-in, first-out method) or market. The major components of inventories are as follows (in thousands): September 30, 2015 December 31, 2014 Raw materials and purchased components $ 171,738 $ 165,823 Service parts, garments and accessories 178,608 163,455 Finished goods 358,356 262,578 Less: reserves (34,090 ) (26,171 ) Inventories $ 674,612 $ 565,685 Product warranties. Polaris provides a limited warranty for its ORVs for a period of six months, for a period of one year for its snowmobiles, for a period of one or two years for its motorcycles depending on brand and model year, and for a two year period for GEM, Goupil and Aixam vehicles. Polaris provides longer warranties in certain geographical markets as determined by local regulations and market conditions and may also provide longer warranties related to certain promotional programs. Polaris’ standard warranties require the Company or its dealers to repair or replace defective products during such warranty periods at no cost to the consumer. The warranty reserve is established at the time of sale to the dealer or distributor based on management’s best estimate using historical rates and trends. Adjustments to the warranty reserve are made from time to time as actual claims become known in order to properly estimate the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. Factors that could have an impact on the warranty accrual in any given period include the following: improved manufacturing quality, shifts in product mix, changes in warranty coverage periods, snowfall and its impact on snowmobile usage, product recalls and any significant changes in sales volume. The activity in the warranty reserve during the periods presented was as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Balance at beginning of period $ 45,099 $ 44,811 $ 53,104 $ 52,818 Additions to warranty reserve through acquisitions — — 200 110 Additions charged to expense 25,288 21,227 53,853 44,524 Warranty claims paid (15,290 ) (14,644 ) (52,060 ) (46,058 ) Balance at end of period $ 55,097 $ 51,394 $ 55,097 $ 51,394 New Accounting Pronouncements. Revenue from Contracts with Customers. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers . This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue from the transfer of goods or services to customers in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017 (as stated in ASU No. 2015-14, which defers the effective date and was issued in August 2015) and is now effective for the Company's fiscal year beginning January 1, 2018. The Company is evaluating the application method and the impact of this new standard on the financial statements. There are no other new accounting pronouncements that are expected to have a significant impact on Polaris' consolidated financial statements. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The amount of compensation cost for share-based awards to be recognized during a period is based on the portion of the awards that are ultimately expected to vest. The Company estimates stock option forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company analyzes historical data to estimate pre-vesting forfeitures and records share compensation expense for those awards expected to vest. Total share-based compensation expenses were as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Option plan $ 6,698 $ 6,310 $ 19,878 $ 18,263 Other share-based awards 5,689 8,103 22,167 19,202 Total share-based compensation before tax 12,387 14,413 42,045 37,465 Tax benefit 4,621 5,376 15,683 13,990 Total share-based compensation expense included in net income $ 7,766 $ 9,037 $ 26,362 $ 23,475 In addition to the above share-based compensation expenses, Polaris sponsors a qualified non-leveraged employee stock ownership plan (ESOP). Shares allocated to eligible participants’ accounts vest at various percentage rates based on years of service and require no cash payments from the recipient. At September 30, 2015 , there was $102,757,000 of total unrecognized share-based compensation expense related to unvested share-based equity awards. Unrecognized share-based compensation expense is expected to be recognized over a weighted-average period of 1.66 years. Included in unrecognized share-based compensation is approximately $43,842,000 related to stock options and $58,915,000 for restricted stock. |
Financing Agreement
Financing Agreement | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Financing Agreement | Financing Agreements The carrying value of debt, capital lease obligations, notes payable, interest rate swap valuation adjustments and the average related interest rates were as follows (in thousands): Average interest rate at September 30, 2015 Maturity September 30, 2015 December 31, 2014 Revolving loan facility 0.85% March 2020 $ 77,170 — Senior notes—fixed rate 3.81% May 2018 25,000 $ 25,000 Senior notes—fixed rate 4.60% May 2021 75,000 75,000 Senior notes—fixed rate 3.13% December 2020 100,000 100,000 Capital lease obligations 5.05% Various through 2029 22,938 26,148 Notes payable 3.50% June 2027 15,911 — Interest rate swap valuation adjustments 594 — Total debt, capital lease obligations, and notes payable $ 316,613 $ 226,148 Less: current maturities 4,839 2,528 Total long-term debt, capital lease obligations, and notes payable $ 311,774 $ 223,620 In August 2011, Polaris entered into a $350,000,000 unsecured revolving loan facility. In January 2013, Polaris amended the loan facility to provide more beneficial covenant and interest rate terms and extend the expiration date from August 2016 to January 2018 . In March 2015, Polaris amended the loan facility to increase the facility to $500,000,000 and to provide more beneficial covenant and interest rate terms. The amended terms also extended the expiration date to March 2020. Interest is charged at rates based on a LIBOR or “prime” base rate. In December 2010, the Company entered into a Master Note Purchase Agreement to issue $25,000,000 of unsecured senior notes due May 2018 and $75,000,000 of unsecured senior notes due May 2021 (collectively, the “Senior Notes”). The Senior Notes were issued in May 2011 . In December 2013, the Company entered into a First Supplement to Master Note Purchase Agreement, under which the Company issued $100,000,000 of unsecured senior notes due December 2020 . The unsecured revolving loan facility and the Master Note Purchase Agreement contain covenants that require Polaris to maintain certain financial ratios, including minimum interest coverage and maximum leverage ratios. Polaris was in compliance with all such covenants as of September 30, 2015 . A property lease agreement for a manufacturing facility which Polaris began occupying in Opole, Poland commenced in February 2014. The Poland property lease is accounted for as a capital lease. In January 2015, the Company announced plans to build a new production facility in Huntsville, Alabama to provide additional capacity and flexibility. The 725,000 square-foot facility will focus on off-road vehicle production. The Company broke ground on the facility in the first quarter of 2015 with completion expected in the second quarter of 2016. A mortgage note payable agreement of $ 14,500,000 for land, on which Polaris is building the facility, commenced in February 2015. The payment of principal and interest for the note payable is forgivable if the Company satisfies certain job commitments over the term of the note. Forgivable loans related to other Company facilities are also included within notes payable. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets, net, consisted of $129,705,000 of goodwill and $102,437,000 of intangible assets, net of accumulated amortization, as of September 30, 2015 . Additions to goodwill and other intangible assets relate primarily to the acquisitions of Timbersled Products, Inc. (“Timbersled”) and HH Investment Limited (“Hammerhead”) in April 2015. Timbersled is based in Idaho and is an innovator and market leader in the burgeoning snow bike industry. Hammerhead is based in Shanghai, China and manufactures gasoline powered go-karts, light utility vehicles, and electric utility vehicles. Hammerhead markets its products globally under the Hammerhead Offroad® brand, along with maintaining key private label relationships with other original equipment manufacturers. For both acquisitions, the respective aggregate purchase prices were allocated on a preliminary basis to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Timbersled and Hammerhead financial results are included in the Company's consolidated results from the respective dates of acquisition. Pro forma financial results are not presented as the acquisitions are not material to the consolidated financial statements. As of September 30, 2015 , the purchase price allocations for both acquisitions remains preliminary. In November 2014, the Company acquired certain assets of LSI Products Inc. and Armor Holdings, LLC. (collectively, “Pro Armor”). Pro Armor is an industry-leading brand in performance side-by-side accessories. As of September 30, 2015 , the purchase price allocation for Pro Armor remains preliminary. In January 2015, Polaris completed a non-cash acquisition of the electric motorcycle business from Brammo, Inc. (“Brammo”). Brammo will continue to be a designer and developer of electric vehicle powertrains. The changes in the carrying amount of goodwill for the nine months ended September 30, 2015 were as follows (in thousands): Nine months ended September 30, 2015 Goodwill, beginning of period $ 123,031 Goodwill from businesses acquired 13,435 Currency translation effect on foreign goodwill balances (6,761 ) Goodwill, end of period $ 129,705 For other intangible assets, the changes in the net carrying amount for the nine months ended September 30, 2015 were as follows (in thousands): Nine months ended September 30, 2015 Gross Accumulated Other intangible assets, beginning of period $ 124,093 $ (23,158 ) Intangible assets acquired during the period 13,831 — Amortization expense — (8,905 ) Foreign currency translation effect on balances (4,448 ) 1,024 Other intangible assets, end of period $ 133,476 $ (31,039 ) The components of other intangible assets were as follows (in thousands): Total estimated life (years) September 30, 2015 December 31, 2014 Non-amortizable—indefinite lived: Brand names $ 48,699 $ 46,224 Amortizable: Non-compete agreements 5 540 540 Dealer/customer related 7 64,838 62,758 Developed technology 5-7 19,399 14,571 Total amortizable 84,777 77,869 Less: Accumulated amortization (31,039 ) (23,158 ) Net amortized other intangible assets 53,738 54,711 Total other intangible assets, net $ 102,437 $ 100,935 Amortization expense for intangible assets for the three months ended September 30, 2015 and 2014 was $3,238,000 and $3,029,000 , respectively. Estimated amortization expense for the remainder of 2015 through 2020 is as follows: 2015 (remainder), $3,200,000 ; 2016 , $12,800,000 ; 2017 , $12,500,000 ; 2018 , $10,500,000 ; 2019 , $8,800,000 ; 2020 , $4,000,000 ; and after 2020 , $1,900,000 . The preceding expected amortization expense is an estimate and actual amounts could differ due to additional intangible asset acquisitions, changes in foreign currency rates or impairment of intangible assets. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity During the nine months ended September 30, 2015 , Polaris paid $247,795,000 to repurchase and retire approximately 1,752,000 shares of its common stock. As of September 30, 2015 , the Board of Directors has authorized the Company to repurchase up to an additional 3,298,000 shares of Polaris stock. The repurchase of any or all such shares authorized for repurchase will be governed by applicable SEC rules and dependent on management’s assessment of market conditions. Polaris paid a regular cash dividend of $0.53 per share on September 15, 2015 to holders of record at the close of business on September 1, 2015 . On October 22, 2015 , the Polaris Board of Directors declared a regular cash dividend of $0.53 per share payable on December 15, 2015 to holders of record of such shares at the close of business on December 1, 2015 . Cash dividends declared per common share for the three and nine months ended September 30, 2015 and 2014 , were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Cash dividends declared and paid per common share $ 0.53 $ 0.48 $ 1.59 $ 1.44 Net income per share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period, including shares earned under the Deferred Compensation Plan for Directors (“Director Plan”), the ESOP and deferred stock units under the 2007 Omnibus Incentive Plan (“Omnibus Plan”). Diluted earnings per share is computed under the treasury stock method and is calculated to compute the dilutive effect of outstanding stock options issued under the 1995 Stock Option Plan and the 2003 Non-Employee Director Stock Option Plan (collectively, the “Option Plans”) and certain shares issued under the Omnibus Plan. A reconciliation of these amounts is as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Weighted average number of common shares outstanding 65,592 65,988 65,909 65,771 Director Plan and deferred stock units 212 201 221 204 ESOP 108 72 92 76 Common shares outstanding—basic 65,912 66,261 66,222 66,051 Dilutive effect of Option Plans and Omnibus Plan 1,456 2,067 1,559 2,074 Common and potential common shares outstanding—diluted 67,368 68,328 67,781 68,125 During the three and nine months ended September 30, 2015 , the number of options that could potentially dilute earnings per share on a fully diluted basis that were not included in the computation of diluted earnings per share (because to do so would have been anti-dilutive) were 1,087,000 and 971,000 , respectively, compared to 647,000 and 562,000 for the same periods in 2014 . Accumulated other comprehensive loss Changes in the accumulated other comprehensive loss balance is as follows (in thousands): Foreign Cash Flow Accumulated Other Balance as of December 31, 2014 $ (25,789 ) $ (1,452 ) $ (27,241 ) Reclassification to the income statement — (392 ) (392 ) Change in fair value (32,763 ) 3,955 (28,808 ) Balance as of September 30, 2015 $ (58,552 ) $ 2,111 $ (56,441 ) The table below provides data about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the income statement for cash flow derivatives designated as hedging instruments for the three and nine months ended September 30, 2015 and 2014 (in thousands): Derivatives in Cash Flow Hedging Relationships Location of (Gain) Loss Reclassified from Accumulated OCI into Income Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Foreign currency contracts Other expense (income), net $ 1,134 $ 206 $ 3,536 $ (1,891 ) Foreign currency contracts Cost of sales (1,126 ) (208 ) (3,144 ) (148 ) Total $ 8 $ (2 ) $ 392 $ (2,039 ) The net amount of the existing gains or losses at September 30, 2015 that is expected to be reclassified into the income statement within the next 12 months is expected to not be material. See Note 9 for further information regarding Polaris' derivative activities. |
Financial Services Arrangements
Financial Services Arrangements | 9 Months Ended |
Sep. 30, 2015 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Financial Services Arrangements | Financial Services Arrangements Polaris Acceptance, a joint venture between Polaris and GE Commercial Distribution Finance Corporation, an indirect subsidiary of General Electric Capital Corporation (GECC), which is supported by a partnership agreement between their respective wholly owned subsidiaries, finances substantially all of Polaris' United States sales whereby Polaris receives payment within a few days of shipment of the product. Polaris’ subsidiary has a 50 percent equity interest in Polaris Acceptance. Polaris Acceptance sells a majority of its receivable portfolio to a securitization facility (the "Securitization Facility") arranged by General Electric Capital Corporation. The sale of receivables from Polaris Acceptance to the Securitization Facility is accounted for in Polaris Acceptance’s financial statements as a “true-sale” under Accounting Standards Codification Topic 860. Polaris’ allocable share of the income of Polaris Acceptance has been included as a component of income from financial services in the accompanying consolidated statements of income. The partnership agreement is effective through February 2017. Polaris’ total investment in Polaris Acceptance of $88,690,000 at September 30, 2015 is accounted for under the equity method, and is recorded in investment in finance affiliate in the accompanying consolidated balance sheets. At September 30, 2015 , the outstanding amount of net receivables financed for dealers under this arrangement was $1,321,137,000 , which included $414,510,000 in the Polaris Acceptance portfolio and $906,627,000 of receivables within the Securitization Facility ("Securitized Receivables"). Polaris has agreed to repurchase products repossessed by Polaris Acceptance up to an annual maximum of 15 percent of the aggregate average month-end outstanding Polaris Acceptance receivables and Securitized Receivables during the prior calendar year. For calendar year 2015 , the potential 15 percent aggregate repurchase obligation is approximately $146,440,000 . Polaris’ financial exposure under this arrangement is limited to the difference between the amounts unpaid by the dealer with respect to the repossessed product plus costs of repossession and the amount received on the resale of the repossessed product. No material losses have been incurred under this agreement during the periods presented. On October 13, 2015, GECC announced that it agreed to sell a portfolio of assets, including its ownership interests in Polaris Acceptance to Wells Fargo & Company, with the closing of the transaction expected in the first quarter of 2016. The sale is not expected to impact the operations of the partnership agreement, which is effective through February 2017. Polaris has agreements with Capital One, Sheffield Financial, Synchrony Bank, Freedom Road, Chrome Capital and Ride Today Acceptance, under which these financial institutions provide financing to end consumers of Polaris products. Polaris' income generated from these agreements has been included as a component of income from financial services in the accompanying consolidated statements of income. Polaris also administers and provides extended service contracts to consumers and certain insurance contracts to dealers and consumers through various third-party suppliers. Polaris does not retain any warranty, insurance or financial risk under any of these arrangements. Polaris’ service fee income generated from these arrangements has been included as a component of income from financial services in the accompanying consolidated statements of income. |
Investment in Other Affiliates
Investment in Other Affiliates | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Other Affiliates | Investment in Other Affiliates The Company has certain investments in nonmarketable securities of strategic companies. As of September 30, 2015 and December 31, 2014 , these investments are comprised of investments in Eicher-Polaris Private Limited (EPPL) and Brammo, and are recorded as components of other long-term assets in the accompanying consolidated balance sheets. EPPL is a joint venture established in 2012 with Eicher Motors Limited ("Eicher"). Polaris and Eicher each control 50 percent of the joint venture, which is intended to design, develop and manufacture a full range of new vehicles for India and other emerging markets. The investment in EPPL is accounted for under the equity method, with Polaris’ proportionate share of income or loss recorded within the consolidated financial statements on a one month lag due to financial information not being available timely. At the time of the establishment of the joint venture, the overall investment was expected to be approximately $50,000,000 , shared equally with Eicher over a three year period. As of September 30, 2015 and December 31, 2014 , the carrying value of the Company's investment in EPPL was $18,811,000 and $14,601,000 , respectively. Through September 30, 2015 , Polaris has invested $32,215,000 in the joint venture. Polaris' share of EPPL loss for the three and nine months ended September 30, 2015 was $1,345,000 and $4,716,000 , respectively, compared to $1,036,000 and $2,899,000 for the same respective periods in 2014 . The loss is included in equity in loss of other affiliates on the consolidated statements of income. Brammo is a privately held designer and developer of electric powertrains, which Polaris has invested in since 2011. The investment in Brammo is accounted for under the cost method. Brammo is in the early stages of designing, developing, and selling electric vehicle powertrains. As such, a risk exists that Brammo may not be able to secure sufficient financing to reach viability through cash flow from operations. In January 2015, Polaris acquired the electric motorcycle business from Brammo, and also made an additional investment in the remaining Brammo business, which will continue to be a designer and developer of electric vehicle powertrains. Polaris will impair or write off an investment and recognize a loss if and when events or circumstances indicate there is impairment in the investment that is other-than-temporary. When necessary, Polaris evaluates investments in nonmarketable securities for impairment, utilizing level 3 fair value inputs. No impairments were recognized on currently held investments for the three or nine months ended September 30, 2015 and 2014 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Polaris is subject to product liability claims in the normal course of business. In late 2012, Polaris purchased excess insurance coverage for catastrophic product liability claims for incidents occurring after the policy date. Polaris self-insures product liability claims before the policy date and up to the purchased catastrophic insurance coverage after the policy date. The estimated costs resulting from any losses are charged to operating expenses when it is probable a loss has been incurred and the amount of the loss is reasonably determinable. The Company utilizes historical trends and actuarial analysis tools, along with an analysis of current claims, to assist in determining the appropriate loss reserve levels. At September 30, 2015 , the Company had an accrual of $19,713,000 for the probable payment of pending claims related to continuing operations product liability litigation associated with Polaris products. This accrual is included as a component of other accrued expenses in the accompanying consolidated balance sheets. Polaris is a defendant in lawsuits and subject to other claims arising in the normal course of business. In the opinion of management, it is unlikely that any legal proceedings pending against or involving Polaris will have a material adverse effect on Polaris' financial position or results of operations. As a component of certain past acquisition agreements, Polaris has committed to make additional payments to certain sellers contingent upon either the passage of time or certain financial performance criteria. Polaris initially records the fair value of each commitment as of the respective opening balance sheet, and each reporting period the fair value is evaluated, using level 3 inputs, with the change in value reflected in the consolidated statements of income. As of September 30, 2015 and December 31, 2014 , the fair value of contingent purchase price commitments was $30,089,000 and $27,908,000 , respectively, recorded in other long-term liabilities in the consolidated balance sheets. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company is exposed to certain risks relating to its ongoing business operations. From time to time, the primary risks managed by using derivative instruments are foreign currency risk, interest rate risk and commodity price fluctuations. Derivative contracts on various currencies are entered into in order to manage foreign currency exposures associated with certain product sourcing activities and intercompany cash flows. Interest rate swaps are entered into in order to manage to maintain a balanced risk to fixed and floating interest rates associated with the Company’s long-term debt. Commodity hedging contracts are entered into in order to manage fluctuating market prices of certain purchased commodities and raw materials that are integrated into the Company’s end products. The Company’s foreign currency management objective is to mitigate the potential impact of currency fluctuations on the value of its U.S. dollar cash flows and to reduce the variability of certain cash flows at the subsidiary level. The Company actively manages certain forecasted foreign currency exposures and uses a centralized currency management operation to take advantage of potential opportunities to naturally offset foreign currency exposures against each other. The decision of whether and when to execute derivative instruments, along with the duration of the instrument, can vary from period to period depending on market conditions, the relative costs of the instruments and capacity to hedge. The duration is linked to the timing of the underlying exposure, with the connection between the two being regularly monitored. Polaris does not use any financial contracts for trading purposes. At September 30, 2015 , Polaris had the following open foreign currency contracts (in thousands): Foreign Currency Notional Amounts (in U.S. Dollars) Net Unrealized Gain (Loss) Australian Dollar $ 13,006 $ 1,038 Canadian Dollar 126,926 5,474 Japanese Yen 8,852 (22 ) Mexican Peso 33,188 (3,347 ) Total $ 181,972 $ 3,143 These contracts, with maturities through December 30, 2016, met the criteria for cash flow hedges and the unrealized gains or losses, after tax, are recorded as a component of accumulated other comprehensive loss in shareholders’ equity. The Company uses "receive fixed-rate, pay variable-rate" interest rate swaps to maintain a balanced risk to fixed and floating rates on a portion of the 2021 Senior notes. The interest rate swap contracts are considered perfect hedges because the critical terms and notional amounts match those of the fixed-rate debt being hedged and are therefore accounted as a fair value hedge using the shortcut method. Under the shortcut method, the Company recognizes the change in the fair value of the derivatives with an offsetting change to the carrying value of the debt. Accordingly, there is no impact on the Consolidated Statements of Income from the fair value of the derivatives. Polaris enters into derivative contracts to hedge a portion of the exposure related to diesel fuel. These diesel fuel derivative contracts have not met the criteria for hedge accounting. The Company recognized a loss for the three and nine months ended September 30, 2015 of $1,826,000 and $2,496,000 , respectively, in cost of sales on commodity contracts not designated as hedging instruments. The gain (loss) amounts for the comparative periods in 2014 were not material. The table below summarizes the carrying values of derivative instruments as of September 30, 2015 and December 31, 2014 (in thousands): Carrying Values of Derivative Instruments as of September 30, 2015 Fair Value— Assets Fair Value— (Liabilities) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts(1) $ 6,598 $ (3,455 ) $ 3,143 Interest rate swap contracts(1) 594 — 594 Total derivatives designated as hedging instruments $ 7,192 $ (3,455 ) $ 3,737 Commodity contracts(1) — $ (1,743 ) $ (1,743 ) Total derivatives not designated as hedging instruments — $ (1,743 ) $ (1,743 ) Total derivatives $ 7,192 $ (5,198 ) $ 1,994 Carrying Values of Derivative Instruments as of December 31, 2014 Fair Value— Assets Fair Value— (Liabilities) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts(1) $ 534 $ (3,104 ) $ (2,570 ) Total derivatives designated as hedging instruments $ 534 $ (3,104 ) $ (2,570 ) Commodity contracts(1) — $ (4,609 ) $ (4,609 ) Total derivatives not designated as hedging instruments — $ (4,609 ) $ (4,609 ) Total derivatives $ 534 $ (7,713 ) $ (7,179 ) (1) Assets are included in prepaid expenses and other and liabilities are included in other accrued expenses on the accompanying consolidated balance sheets. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive loss and reclassified into the income statement in the same period or periods during which the hedged transaction affects the income statement. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in the current income statement. The table below provides data about the amount of gains and losses, net of tax, related to derivative instruments designated as cash flow hedges included in accumulated other comprehensive loss for the three and nine months ended September 30, 2015 and 2014 (in thousands): Unrealized Gains (Losses) From Derivatives in Cash Flow Hedging Relationships Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Foreign currency contracts $ 3,332 $ 2,603 $ 3,563 $ 1,588 See Note 5 for information about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the income statement for derivative instruments designated as hedging instruments. The ineffective portion of foreign currency contracts was not material for the three and nine month periods ended September 30, 2015 . |
Segment Information (Notes)
Segment Information (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's reportable segments are based on the Company's method of internal reporting, which generally segregates the operating segments by product line, inclusive of wholegoods and PG&A. The internal reporting of these operating segments is defined based, in part, on the reporting and review process used by the Company's President and Chief Operating Officer. The Company has four operating segments: 1) ORV, 2) Snowmobiles, 3) Motorcycles, and 4) Global Adjacent Markets, and three reportable segments: 1) ORV/Snowmobiles, 2) Motorcycles, and 3) Global Adjacent Markets. Prior to the third quarter ended September 30, 2015, we aggregated our four operating segments into one reportable segment. However, the Company now believes disaggregating one segment into three reportable segments provides more beneficial information for our financial statement users. The ORV/Snowmobiles segment includes the aggregated results of our ORV and Snowmobiles operating segments. The Motorcycles and Global Adjacent Markets segments include the results for those respective operating segments. The Corporate amounts include costs that are not allocated to individual segments, which include incentive-based compensation and other unallocated manufacturing costs. Additionally, given the commonality 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 gross profit data. Three months ended September 30, Nine months ended September 30, ($ in thousands) 2015 2014 2015 2014 Sales ORV/Snowmobiles $ 1,193,514 $ 1,151,410 $ 2,846,901 $ 2,689,353 Motorcycles 188,679 83,746 535,699 296,327 Global Adjacent Markets 73,807 67,187 231,072 218,968 Total sales 1,456,000 1,302,343 3,613,672 3,204,648 Gross profit ORV/Snowmobiles 388,542 377,683 927,803 876,900 Motorcycles 28,424 9,076 73,236 43,075 Global Adjacent Markets 21,200 15,717 61,988 58,867 Corporate (22,543 ) (14,202 ) (34,259 ) (27,237 ) Total gross profit $ 415,623 $ 388,274 $ 1,028,768 $ 951,605 |
Significant Accounting Polici18
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation. The accompanying unaudited consolidated financial statements of Polaris Industries Inc. ("Polaris" or the "Company") have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and, therefore, do not include all information and disclosures of results of operations, financial position and changes in cash flow in conformity with accounting principles generally accepted in the United States for complete financial statements. Accordingly, such statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 previously filed with the Securities and Exchange Commission. In the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. Due to the seasonality of snowmobiles; Off-Road Vehicles (ORV), which include all-terrain vehicles (ATV) and side-by-side vehicles; motorcycles; Global Adjacent Markets; and related Parts, Garments and Accessories (PG&A), and to certain changes in production and shipping cycles, results of such periods are not necessarily indicative of the results to be expected for the complete year. |
Fair value measurements | Fair value measurements. Fair value is 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. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: 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. In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The Company utilizes the market approach to measure fair value for its non-qualified deferred compensation assets and liabilities, and the income approach for foreign currency contracts and commodity contracts. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities, and for the income approach the Company uses significant other observable inputs to value its derivative instruments used to hedge foreign currency and commodity transactions. |
Inventories | Inventories. Inventory costs include material, labor and manufacturing overhead costs, including depreciation expense associated with the manufacture and distribution of the Company's products. Inventories are stated at the lower of cost (first-in, first-out method) or market. |
Product warranties | Product warranties. Polaris provides a limited warranty for its ORVs for a period of six months, for a period of one year for its snowmobiles, for a period of one or two years for its motorcycles depending on brand and model year, and for a two year period for GEM, Goupil and Aixam vehicles. Polaris provides longer warranties in certain geographical markets as determined by local regulations and market conditions and may also provide longer warranties related to certain promotional programs. Polaris’ standard warranties require the Company or its dealers to repair or replace defective products during such warranty periods at no cost to the consumer. The warranty reserve is established at the time of sale to the dealer or distributor based on management’s best estimate using historical rates and trends. Adjustments to the warranty reserve are made from time to time as actual claims become known in order to properly estimate the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. Factors that could have an impact on the warranty accrual in any given period include the following: improved manufacturing quality, shifts in product mix, changes in warranty coverage periods, snowfall and its impact on snowmobile usage, product recalls and any significant changes in sales volume. |
New Accounting Pronouncements | New Accounting Pronouncements. Revenue from Contracts with Customers. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers . This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue from the transfer of goods or services to customers in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017 (as stated in ASU No. 2015-14, which defers the effective date and was issued in August 2015) and is now effective for the Company's fiscal year beginning January 1, 2018. The Company is evaluating the application method and the impact of this new standard on the financial statements. There are no other new accounting pronouncements that are expected to have a significant impact on Polaris' consolidated financial statements. |
Significant Accounting Polici19
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of September 30, 2015 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 49,663 $ 49,663 — — Foreign exchange contracts, net 3,143 — $ 3,143 — Interest rate swap contracts 594 — 594 — Total assets at fair value $ 53,400 $ 49,663 $ 3,737 — Commodity contracts, net $ (1,743 ) — $ (1,743 ) — Non-qualified deferred compensation liabilities (49,663 ) $ (49,663 ) — — Total liabilities at fair value $ (51,406 ) $ (49,663 ) $ (1,743 ) — Fair Value Measurements as of December 31, 2014 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 41,797 $ 41,797 — — Total assets at fair value $ 41,797 $ 41,797 — — Commodity contracts, net $ (4,609 ) — $ (4,609 ) — Foreign exchange contracts, net (2,570 ) — (2,570 ) — Non-qualified deferred compensation liabilities (41,797 ) $ (41,797 ) — — Total liabilities at fair value $ (48,976 ) $ (41,797 ) $ (7,179 ) — |
Schedule of major components of inventories | The major components of inventories are as follows (in thousands): September 30, 2015 December 31, 2014 Raw materials and purchased components $ 171,738 $ 165,823 Service parts, garments and accessories 178,608 163,455 Finished goods 358,356 262,578 Less: reserves (34,090 ) (26,171 ) Inventories $ 674,612 $ 565,685 |
Schedule of activity in the warranty reserve | The activity in the warranty reserve during the periods presented was as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Balance at beginning of period $ 45,099 $ 44,811 $ 53,104 $ 52,818 Additions to warranty reserve through acquisitions — — 200 110 Additions charged to expense 25,288 21,227 53,853 44,524 Warranty claims paid (15,290 ) (14,644 ) (52,060 ) (46,058 ) Balance at end of period $ 55,097 $ 51,394 $ 55,097 $ 51,394 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation expenses | Total share-based compensation expenses were as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Option plan $ 6,698 $ 6,310 $ 19,878 $ 18,263 Other share-based awards 5,689 8,103 22,167 19,202 Total share-based compensation before tax 12,387 14,413 42,045 37,465 Tax benefit 4,621 5,376 15,683 13,990 Total share-based compensation expense included in net income $ 7,766 $ 9,037 $ 26,362 $ 23,475 |
Financing Agreement (Tables)
Financing Agreement (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Capital Lease Obligations | The carrying value of debt, capital lease obligations, notes payable, interest rate swap valuation adjustments and the average related interest rates were as follows (in thousands): Average interest rate at September 30, 2015 Maturity September 30, 2015 December 31, 2014 Revolving loan facility 0.85% March 2020 $ 77,170 — Senior notes—fixed rate 3.81% May 2018 25,000 $ 25,000 Senior notes—fixed rate 4.60% May 2021 75,000 75,000 Senior notes—fixed rate 3.13% December 2020 100,000 100,000 Capital lease obligations 5.05% Various through 2029 22,938 26,148 Notes payable 3.50% June 2027 15,911 — Interest rate swap valuation adjustments 594 — Total debt, capital lease obligations, and notes payable $ 316,613 $ 226,148 Less: current maturities 4,839 2,528 Total long-term debt, capital lease obligations, and notes payable $ 311,774 $ 223,620 |
Goodwill and Other Intangible22
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in carrying amount of goodwill | The changes in the carrying amount of goodwill for the nine months ended September 30, 2015 were as follows (in thousands): Nine months ended September 30, 2015 Goodwill, beginning of period $ 123,031 Goodwill from businesses acquired 13,435 Currency translation effect on foreign goodwill balances (6,761 ) Goodwill, end of period $ 129,705 |
Schedule of other intangible assets, changes in net carrying amount | For other intangible assets, the changes in the net carrying amount for the nine months ended September 30, 2015 were as follows (in thousands): Nine months ended September 30, 2015 Gross Accumulated Other intangible assets, beginning of period $ 124,093 $ (23,158 ) Intangible assets acquired during the period 13,831 — Amortization expense — (8,905 ) Foreign currency translation effect on balances (4,448 ) 1,024 Other intangible assets, end of period $ 133,476 $ (31,039 ) |
Schedule of components of other intangible assets | The components of other intangible assets were as follows (in thousands): Total estimated life (years) September 30, 2015 December 31, 2014 Non-amortizable—indefinite lived: Brand names $ 48,699 $ 46,224 Amortizable: Non-compete agreements 5 540 540 Dealer/customer related 7 64,838 62,758 Developed technology 5-7 19,399 14,571 Total amortizable 84,777 77,869 Less: Accumulated amortization (31,039 ) (23,158 ) Net amortized other intangible assets 53,738 54,711 Total other intangible assets, net $ 102,437 $ 100,935 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of cash dividends declared per common share | Cash dividends declared per common share for the three and nine months ended September 30, 2015 and 2014 , were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Cash dividends declared and paid per common share $ 0.53 $ 0.48 $ 1.59 $ 1.44 |
Schedule of reconciliation of weighted average number of shares | A reconciliation of these amounts is as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Weighted average number of common shares outstanding 65,592 65,988 65,909 65,771 Director Plan and deferred stock units 212 201 221 204 ESOP 108 72 92 76 Common shares outstanding—basic 65,912 66,261 66,222 66,051 Dilutive effect of Option Plans and Omnibus Plan 1,456 2,067 1,559 2,074 Common and potential common shares outstanding—diluted 67,368 68,328 67,781 68,125 |
Schedule of changes in accumulated other comprehensive income (loss) balances | Changes in the accumulated other comprehensive loss balance is as follows (in thousands): Foreign Cash Flow Accumulated Other Balance as of December 31, 2014 $ (25,789 ) $ (1,452 ) $ (27,241 ) Reclassification to the income statement — (392 ) (392 ) Change in fair value (32,763 ) 3,955 (28,808 ) Balance as of September 30, 2015 $ (58,552 ) $ 2,111 $ (56,441 ) |
Schedule of gains and losses, net of tax, reclassified from accumulated other comprehensive income into the income statement for cash flow derivatives designated as hedging instruments | The table below provides data about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the income statement for cash flow derivatives designated as hedging instruments for the three and nine months ended September 30, 2015 and 2014 (in thousands): Derivatives in Cash Flow Hedging Relationships Location of (Gain) Loss Reclassified from Accumulated OCI into Income Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Foreign currency contracts Other expense (income), net $ 1,134 $ 206 $ 3,536 $ (1,891 ) Foreign currency contracts Cost of sales (1,126 ) (208 ) (3,144 ) (148 ) Total $ 8 $ (2 ) $ 392 $ (2,039 ) |
Derivative Instruments and He24
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of open foreign currency contracts | At September 30, 2015 , Polaris had the following open foreign currency contracts (in thousands): Foreign Currency Notional Amounts (in U.S. Dollars) Net Unrealized Gain (Loss) Australian Dollar $ 13,006 $ 1,038 Canadian Dollar 126,926 5,474 Japanese Yen 8,852 (22 ) Mexican Peso 33,188 (3,347 ) Total $ 181,972 $ 3,143 |
Schedule of carrying values of derivative instruments | The table below summarizes the carrying values of derivative instruments as of September 30, 2015 and December 31, 2014 (in thousands): Carrying Values of Derivative Instruments as of September 30, 2015 Fair Value— Assets Fair Value— (Liabilities) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts(1) $ 6,598 $ (3,455 ) $ 3,143 Interest rate swap contracts(1) 594 — 594 Total derivatives designated as hedging instruments $ 7,192 $ (3,455 ) $ 3,737 Commodity contracts(1) — $ (1,743 ) $ (1,743 ) Total derivatives not designated as hedging instruments — $ (1,743 ) $ (1,743 ) Total derivatives $ 7,192 $ (5,198 ) $ 1,994 Carrying Values of Derivative Instruments as of December 31, 2014 Fair Value— Assets Fair Value— (Liabilities) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts(1) $ 534 $ (3,104 ) $ (2,570 ) Total derivatives designated as hedging instruments $ 534 $ (3,104 ) $ (2,570 ) Commodity contracts(1) — $ (4,609 ) $ (4,609 ) Total derivatives not designated as hedging instruments — $ (4,609 ) $ (4,609 ) Total derivatives $ 534 $ (7,713 ) $ (7,179 ) (1) Assets are included in prepaid expenses and other and liabilities are included in other accrued expenses on the accompanying consolidated balance sheets. |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The table below provides data about the amount of gains and losses, net of tax, related to derivative instruments designated as cash flow hedges included in accumulated other comprehensive loss for the three and nine months ended September 30, 2015 and 2014 (in thousands): Unrealized Gains (Losses) From Derivatives in Cash Flow Hedging Relationships Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Foreign currency contracts $ 3,332 $ 2,603 $ 3,563 $ 1,588 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Accordingly, the segment information presented below is limited to sales and gross profit data. Three months ended September 30, Nine months ended September 30, ($ in thousands) 2015 2014 2015 2014 Sales ORV/Snowmobiles $ 1,193,514 $ 1,151,410 $ 2,846,901 $ 2,689,353 Motorcycles 188,679 83,746 535,699 296,327 Global Adjacent Markets 73,807 67,187 231,072 218,968 Total sales 1,456,000 1,302,343 3,613,672 3,204,648 Gross profit ORV/Snowmobiles 388,542 377,683 927,803 876,900 Motorcycles 28,424 9,076 73,236 43,075 Global Adjacent Markets 21,200 15,717 61,988 58,867 Corporate (22,543 ) (14,202 ) (34,259 ) (27,237 ) Total gross profit $ 415,623 $ 388,274 $ 1,028,768 $ 951,605 |
Significant Accounting Polici26
Significant Accounting Policies Fair Value Measurements (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Foreign exchange contracts, net | $ 3,143 | |
Interest rate swap contracts | 594 | |
Total assets at fair value | 53,400 | $ 41,797 |
Commodity contracts, net | (1,743) | |
Foreign exchange contracts, net | (2,570) | |
Total liabilities at fair value | (51,406) | (48,976) |
Commodity contracts | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity contracts, net | (4,609) | |
Level 1 | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets at fair value | 49,663 | 41,797 |
Total liabilities at fair value | (49,663) | (41,797) |
Level 2 | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Foreign exchange contracts, net | 3,143 | |
Total assets at fair value | 3,737 | 0 |
Commodity contracts, net | (1,743) | |
Foreign exchange contracts, net | (2,570) | |
Total liabilities at fair value | (1,743) | (7,179) |
Level 2 | Commodity contracts | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Commodity contracts, net | (4,609) | |
Supplemental Employee Retirement Plans, Defined Benefit | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Non-qualified deferred compensation assets | 49,663 | 41,797 |
Non-qualified deferred compensation liabilities | (49,663) | (41,797) |
Supplemental Employee Retirement Plans, Defined Benefit | Level 1 | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Non-qualified deferred compensation assets | 49,663 | 41,797 |
Non-qualified deferred compensation liabilities | $ (49,663) | $ (41,797) |
Significant Accounting Polici27
Significant Accounting Policies Major Components of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Raw materials and purchased components | $ 171,738 | $ 165,823 |
Service parts, garments and accessories | 178,608 | 163,455 |
Finished goods | 358,356 | 262,578 |
Less: reserves | (34,090) | (26,171) |
Inventories | $ 674,612 | $ 565,685 |
Significant Accounting Polici28
Significant Accounting Policies Activity in Polaris Accrued Warranty Reserve (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Activity in Product Warranty Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 45,099 | $ 44,811 | $ 53,104 | $ 52,818 |
Additions to warranty reserve through acquisitions | 0 | 0 | 200 | 110 |
Additions charged to expense | 25,288 | 21,227 | 53,853 | 44,524 |
Warranty claims paid | (15,290) | (14,644) | (52,060) | (46,058) |
Balance at end of period | $ 55,097 | $ 51,394 | $ 55,097 | $ 51,394 |
Significant Accounting Polici29
Significant Accounting Policies Additional Information (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Off Road Vehicle | |
Product Warranty Liability [Line Items] | |
Period of warranties provided by Polaris | 6 months |
Snowmobiles | |
Product Warranty Liability [Line Items] | |
Period of warranties provided by Polaris | 1 year |
Small Electric Vehicles | |
Product Warranty Liability [Line Items] | |
Period of warranties provided by Polaris | 2 years |
Minimum | Motorcycles | |
Product Warranty Liability [Line Items] | |
Period of warranties provided by Polaris | 1 year |
Maximum | Motorcycles | |
Product Warranty Liability [Line Items] | |
Period of warranties provided by Polaris | 2 years |
Share-Based Compensation Expens
Share-Based Compensation Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Option plan | $ 6,698 | $ 6,310 | $ 19,878 | $ 18,263 |
Other share-based awards | 5,689 | 8,103 | 22,167 | 19,202 |
Total share-based compensation before tax | 12,387 | 14,413 | 42,045 | 37,465 |
Tax benefit | 4,621 | 5,376 | 15,683 | 13,990 |
Total share-based compensation expense included in net income | $ 7,766 | $ 9,037 | $ 26,362 | $ 23,475 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unrecognized compensation cost related to unvested share-based equity awards | $ 102,757 |
Weighted average period of recognition of unvested share-based equity awards | 1 year 7 months 27 days |
Unrecognized compensation cost related to unvested share-based equity awards, stock options | $ 43,842 |
Unrecognized compensation cost related to unvested share-based equity awards, restricted stock | $ 58,915 |
Financing Arrangements, Interes
Financing Arrangements, Interest Rates and Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Effective interest rate | 5.05% | |
Capital lease obligations | $ 22,938 | $ 26,148 |
Total debt, capital lease obligations, and notes payable | 316,613 | 226,148 |
Less: current maturities | 4,839 | 2,528 |
Total long-term debt, capital lease obligations, and notes payable | $ 311,774 | 223,620 |
Senior Notes | Senior Unsecured Notes 3.81% Due May 2018 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.81% | |
Long-term Debt | $ 25,000 | 25,000 |
Senior Notes | Senior Unsecured Notes 4.60% Due May 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.60% | |
Long-term Debt | $ 75,000 | 75,000 |
Senior Notes | Senior Unsecured Notes 3.13% Due December 2020 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.13% | |
Long-term Debt | $ 100,000 | 100,000 |
Notes payable | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.50% | |
Long-term Debt | $ 15,911 | 0 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Average interest rate at September 30, 2015 | 0.85% | |
Long-term Line of Credit | $ 77,170 | $ 0 |
Financing Agreement - Additiona
Financing Agreement - Additional Information (Detail) ft² in Thousands | 1 Months Ended | ||||||
Dec. 31, 2013USD ($) | Dec. 31, 2010USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jan. 09, 2015ft² | Dec. 31, 2014USD ($) | Aug. 31, 2011USD ($) | |
Debt Instrument [Line Items] | |||||||
Area of Real Estate Property | ft² | 725 | ||||||
Senior Notes | Senior Unsecured Notes 3.81% Due May 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Debt | $ 25,000,000 | ||||||
Debt Instruments Maturity Date | 5/31/2018 | ||||||
Mortgage note payable | $ 25,000,000 | $ 25,000,000 | |||||
Senior Notes | Senior Unsecured Notes 4.60% Due May 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Debt | $ 75,000,000 | ||||||
Debt Instruments Maturity Date | 5/31/2021 | ||||||
Mortgage note payable | 75,000,000 | 75,000,000 | |||||
Senior Notes | Senior Unsecured Notes 3.13% Due December 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Debt | $ 100,000,000 | ||||||
Debt Instruments Maturity Date | 12/31/2020 | ||||||
Mortgage note payable | 100,000,000 | 100,000,000 | |||||
Notes payable | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage note payable | $ 15,911,000 | $ 0 | |||||
Notes payable | Mortgages [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage note payable | $ 14,500,000 | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 500,000,000 | $ 350,000,000 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | $ 123,031 |
Goodwill from businesses acquired | 13,435 |
Currency translation effect on foreign goodwill balances | (6,761) |
Goodwill, end of period | $ 129,705 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets Other Intangible Assets, Changes in Net Carrying Amount (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | |
Other Intangible Assets, Gross Amount [Roll Forward] | |||
Other intangible assets, beginning of period | $ 124,093 | ||
Intangible assets acquired during the period | 13,831 | ||
Foreign currency translation effect on balances | (4,448) | ||
Other intangible assets, end of period | $ 133,476 | 133,476 | |
Other Intangible Assets, Accumulated Amortization [Roll Forward] | |||
Other intangible assets, beginning of period | (23,158) | ||
Amortization expense | (3,238) | $ (3,029) | (8,905) |
Foreign currency translation effect on balances | 1,024 | ||
Other intangible assets, end of period | $ (31,039) | $ (31,039) |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets Components of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Amortizable: | ||
Gross amortized other intangible assets | $ 84,777 | $ 77,869 |
Accumulated Amortization | (31,039) | (23,158) |
Net amortized other intangible assets | 53,738 | 54,711 |
Total other intangible assets, net | $ 102,437 | 100,935 |
Non-compete agreements | ||
Amortizable: | ||
Total estimated life | 5 years | |
Gross amortized other intangible assets | $ 540 | 540 |
Dealer/customer related | ||
Amortizable: | ||
Total estimated life | 7 years | |
Gross amortized other intangible assets | $ 64,838 | 62,758 |
Developed technology | ||
Amortizable: | ||
Gross amortized other intangible assets | $ 19,399 | 14,571 |
Developed technology | Minimum | ||
Amortizable: | ||
Total estimated life | 5 years | |
Developed technology | Maximum | ||
Amortizable: | ||
Total estimated life | 7 years | |
Brand names | ||
Non-amortizable—indefinite lived: | ||
Non-amortizable, Net | $ 48,699 | $ 46,224 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 129,705 | $ 129,705 | $ 123,031 | |
Total other intangible assets, net | 102,437 | 102,437 | $ 100,935 | |
Amortization expense of intangible assets | 3,238 | $ 3,029 | 8,905 | |
Estimated Future Amortization Expense by Fiscal Year [Abstract] | ||||
Remainder of 2015 | 3,200 | 3,200 | ||
2,016 | 12,800 | 12,800 | ||
2,017 | 12,500 | 12,500 | ||
2,018 | 10,500 | 10,500 | ||
2,019 | 8,800 | 8,800 | ||
2,020 | 4,000 | 4,000 | ||
After 2,020 | $ 1,900 | $ 1,900 |
Shareholders' Equity Cash Divid
Shareholders' Equity Cash Dividends Declared Per Common Share (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Abstract] | ||||
Cash dividends declared and paid per common share (in dollars per share) | $ 0.53 | $ 0.48 | $ 1.59 | $ 1.44 |
Shareholders' Equity Reconcilia
Shareholders' Equity Reconciliation of Weighted Average Number of Shares (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Abstract] | ||||
Weighted average number of common shares outstanding | 65,592 | 65,988 | 65,909 | 65,771 |
Director Plan and deferred stock units | 212 | 201 | 221 | 204 |
ESOP | 108 | 72 | 92 | 76 |
Common shares outstanding—basic | 65,912 | 66,261 | 66,222 | 66,051 |
Dilutive effect of Option Plans and Omnibus Plan | 1,456 | 2,067 | 1,559 | 2,074 |
Common and potential common shares outstanding—diluted | 67,368 | 68,328 | 67,781 | 68,125 |
Shareholders' Equity Changes in
Shareholders' Equity Changes in Accumulated Other Comprehensive Income (Loss) Balances (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance as of December 31, 2014 | $ (27,241) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (392) | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ (5,072) | $ (22,424) | (32,763) | $ (22,576) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (28,808) | |||
Balance as of September 30, 2015 | (56,441) | (56,441) | ||
Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance as of December 31, 2014 | (25,789) | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (32,763) | |||
Balance as of September 30, 2015 | (58,552) | (58,552) | ||
Cash Flow Hedging | Foreign Exchange Contract | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance as of December 31, 2014 | (1,452) | |||
Reclassification to the income statement | (392) | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 3,955 | |||
Balance as of September 30, 2015 | $ 2,111 | $ 2,111 |
Shareholders' Equity Gains and
Shareholders' Equity Gains and Losses, Net of Tax Reclassified from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI Into Income | $ 8 | $ (2) | $ 392 | $ (2,039) |
Foreign Exchange Contract | Other expense (income), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI Into Income | 1,134 | 206 | 3,536 | (1,891) |
Foreign Exchange Contract | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI Into Income | $ (1,126) | $ (208) | $ (3,144) | $ (148) |
Shareholders' Equity Additional
Shareholders' Equity Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Abstract] | ||||
Repurchase and retirement of common stock | $ 247,795 | |||
Repurchase and retirement of common stock (shares) | 1,752 | |||
Shares remaining available for repurchases (shares) | 3,298 | 3,298 | ||
Cash dividend paid during period, per share (in dollars per share) | $ 0.53 | $ 0.48 | $ 1.59 | $ 1.44 |
Dividends declared (in dollars per share) | $ 0.53 | |||
Common stock excluded from calculation of diluted earnings per share (shares) | 1,087 | 647 | 971 | 562 |
Financial Services Arrangemen43
Financial Services Arrangements - Additional Information (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Investments in and Advances to Affiliates [Line Items] | ||
Investment in affiliates | $ 88,690,000 | $ 89,107,000 |
Net amount financed for dealers | 1,321,137,000 | |
Trade receivables, net | 176,221,000 | $ 204,876,000 |
Aggregate repurchase obligation, amount | $ 146,440,000 | |
Maximum | ||
Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation, percentage | 15.00% | |
Finance affiliate | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investment in affiliates | $ 88,690,000 | |
Polaris Acceptance | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity method investment ownership percentage | 50.00% | |
Trade receivables, net | $ 414,510,000 | |
Securitization Facility | ||
Investments in and Advances to Affiliates [Line Items] | ||
Outstanding balance of receivables | $ 906,627,000 |
Investment in Other Affiliates
Investment in Other Affiliates Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 35 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | |
Investments in and Advances to Affiliates [Line Items] | ||||||
Investments in and advances to affiliates | $ 18,811 | $ 18,811 | $ 18,811 | $ 14,601 | ||
Income (loss) from equity method investments | $ (1,345) | $ (1,036) | $ (4,716) | $ (2,899) | ||
Eicher -Polaris Private Limited | ||||||
Investments in and Advances to Affiliates [Line Items] | ||||||
Equity method investment ownership percentage | 50.00% | 50.00% | 50.00% | |||
Period for proportionate share of income (loss) to be reflected in consolidated financials | 1 month | |||||
Joint venture investment | $ 50,000 | |||||
Investment Maturity Period | 3 years | |||||
Payments to acquire businesses and interest in affiliates | $ 32,215 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Loss Contingencies [Line Items] | ||
Accrual for the probable payment of pending claims | $ 19,713 | |
Fair Value, Inputs, Level 3 | ||
Loss Contingencies [Line Items] | ||
Fair value of contingent purchase price commitments | $ 30,089 | $ 27,908 |
Derivative Instruments and He46
Derivative Instruments and Hedging Activities Open Foreign Currency Contracts (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Net Unrealized Gain (Loss) | $ 1,994 | $ (7,179) |
Cash Flow Hedging | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. Dollars) | 181,972 | |
Net Unrealized Gain (Loss) | 3,143 | |
Cash Flow Hedging | Foreign Exchange Contract | Australian Dollar | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. Dollars) | 13,006 | |
Net Unrealized Gain (Loss) | 1,038 | |
Cash Flow Hedging | Foreign Exchange Contract | Canadian Dollar | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. Dollars) | 126,926 | |
Net Unrealized Gain (Loss) | 5,474 | |
Cash Flow Hedging | Foreign Exchange Contract | Japanese Yen | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. Dollars) | 8,852 | |
Net Unrealized Gain (Loss) | (22) | |
Cash Flow Hedging | Foreign Exchange Contract | Mexican Peso | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. Dollars) | 33,188 | |
Net Unrealized Gain (Loss) | $ (3,347) |
Derivative Instruments and He47
Derivative Instruments and Hedging Activities Carrying Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Derivative Net Carrying Value | $ 1,994 | $ (7,179) | |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative Net Carrying Value | 3,737 | (2,570) | |
Designated as Hedging Instrument | Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Derivative Net Carrying Value | [1] | 3,143 | (2,570) |
Designated as Hedging Instrument | Interest Rate Swap Contract | |||
Derivative [Line Items] | |||
Derivative Net Carrying Value | [1] | 594 | |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative Net Carrying Value | (1,743) | (4,609) | |
Not Designated as Hedging Instrument | Commodity contracts | |||
Derivative [Line Items] | |||
Derivative Net Carrying Value | [1] | (1,743) | (4,609) |
Prepaid Expenses And Other Current Assets | |||
Derivative [Line Items] | |||
Fair Value— Assets | 7,192 | 534 | |
Prepaid Expenses And Other Current Assets | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Fair Value— Assets | 7,192 | 534 | |
Prepaid Expenses And Other Current Assets | Designated as Hedging Instrument | Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Fair Value— Assets | [1] | 6,598 | 534 |
Prepaid Expenses And Other Current Assets | Designated as Hedging Instrument | Interest Rate Swap Contract | |||
Derivative [Line Items] | |||
Fair Value— Assets | [1] | 594 | |
Prepaid Expenses And Other Current Assets | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Fair Value— Assets | 0 | 0 | |
Prepaid Expenses And Other Current Assets | Not Designated as Hedging Instrument | Commodity contracts | |||
Derivative [Line Items] | |||
Fair Value— Assets | [1] | 0 | 0 |
Other Current Liabilities | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | (5,198) | (7,713) | |
Other Current Liabilities | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | (3,455) | (3,104) | |
Other Current Liabilities | Designated as Hedging Instrument | Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | [1] | (3,455) | (3,104) |
Other Current Liabilities | Designated as Hedging Instrument | Interest Rate Swap Contract | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | [1] | 0 | |
Other Current Liabilities | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | (1,743) | (4,609) | |
Other Current Liabilities | Not Designated as Hedging Instrument | Commodity contracts | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | [1] | $ (1,743) | $ (4,609) |
[1] | Assets are included in prepaid expenses and other and liabilities are included in other accrued expenses on the accompanying consolidated balance sheets. |
Derivative Instruments and He48
Derivative Instruments and Hedging Activities Schedule of Derivatives, Effect on OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Foreign Exchange Contract | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign currency contracts | $ 3,332 | $ 2,603 | $ 3,563 | $ 1,588 |
Derivative Instruments and He49
Derivative Instruments and Hedging Activities Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Commodity contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gain (loss) on sale of derivatives | $ (1,826) | $ (2,496) |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 1,456,000 | $ 1,302,343 | $ 3,613,672 | $ 3,204,648 |
Gross profit | 415,623 | 388,274 | 1,028,768 | 951,605 |
Operating Segments [Member] | Off Road Vehicles / Snowmobiles Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,193,514 | 1,151,410 | 2,846,901 | 2,689,353 |
Gross profit | 388,542 | 377,683 | 927,803 | 876,900 |
Operating Segments [Member] | Motorcycles Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 188,679 | 83,746 | 535,699 | 296,327 |
Gross profit | 28,424 | 9,076 | 73,236 | 43,075 |
Operating Segments [Member] | Global Adjacent Markets Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 73,807 | 67,187 | 231,072 | 218,968 |
Gross profit | 21,200 | 15,717 | 61,988 | 58,867 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | $ (22,543) | $ (14,202) | $ (34,259) | $ (27,237) |