Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
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 | 64,956,308 | ||
Entity Public Float | $ 9,796,588 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 155,349 | $ 137,600 |
Trade receivables, net | 150,778 | 204,876 |
Inventories, net | 710,001 | 565,685 |
Prepaid expenses and other | 92,422 | 71,526 |
Income taxes receivable | 46,175 | 2,691 |
Deferred tax assets | 0 | 114,177 |
Total current assets | 1,154,725 | 1,096,555 |
Land, buildings and improvements | 301,874 | 272,802 |
Equipment and tooling | 995,449 | 826,997 |
Property and equipment, gross | 1,297,323 | 1,099,799 |
Less: accumulated depreciation | (646,645) | (544,371) |
Property and equipment, net | 650,678 | 555,428 |
Investment in finance affiliate | 99,073 | 89,107 |
Deferred tax assets | 166,538 | 41,201 |
Goodwill and other intangible assets, net | 236,117 | 223,966 |
Other long-term assets | 80,331 | 68,678 |
Total assets | 2,387,462 | 2,074,935 |
Current liabilities: | ||
Current portion of debt, capital lease obligations, and notes payable | 5,059 | 2,528 |
Accounts payable | 299,660 | 343,470 |
Accrued expenses: | ||
Compensation | 106,486 | 102,379 |
Warranties | 56,474 | 53,104 |
Sales promotions and incentives | 141,057 | 138,630 |
Dealer holdback | 123,276 | 120,093 |
Other | 88,030 | 79,262 |
Income taxes payable | 6,741 | 11,344 |
Total current liabilities | 826,783 | 850,810 |
Long-term income taxes payable | 23,416 | 10,568 |
Capital lease obligations | 19,660 | 23,620 |
Long-term debt | 438,560 | 200,000 |
Deferred tax liabilities | 13,733 | 18,191 |
Other long-term liabilities | 74,188 | 96,951 |
Total liabilities | 1,396,340 | 1,200,140 |
Deferred compensation | 9,645 | 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, 65,309 and 66,307 shares issued and outstanding, respectively | 653 | 663 |
Additional paid-in capital | 596,143 | 486,005 |
Retained earnings | 447,173 | 401,840 |
Accumulated other comprehensive loss, net | (62,492) | (27,241) |
Total shareholders’ equity | 981,477 | 861,267 |
Total liabilities and shareholders’ equity | $ 2,387,462 | $ 2,074,935 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 | 65,309,000 | 66,307,000 |
Common stock, shares outstanding | 65,309,000 | 66,307,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Sales | $ 4,719,290 | $ 4,479,648 | $ 3,777,068 |
Cost of sales | 3,380,248 | 3,160,470 | 2,656,189 |
Gross profit | 1,339,042 | 1,319,178 | 1,120,879 |
Operating expenses: | |||
Selling and marketing | 316,669 | 314,449 | 270,266 |
Research and development | 166,460 | 148,458 | 139,193 |
General and administrative | 209,077 | 203,248 | 179,407 |
Total operating expenses | 692,206 | 666,155 | 588,866 |
Income from financial services | 69,303 | 61,667 | 45,901 |
Operating income | 716,139 | 714,690 | 577,914 |
Non-operating expense (income): | |||
Interest expense | 11,456 | 11,239 | 6,210 |
Equity in loss of other affiliates | 6,802 | 4,124 | 2,414 |
Other expense (income), net | 12,144 | 10 | (5,139) |
Income before income taxes | 685,737 | 699,317 | 574,429 |
Provision for income taxes | 230,376 | 245,288 | 193,360 |
Net income from continuing operations | 455,361 | 454,029 | 381,069 |
Loss from discontinued operations, net of tax | 0 | 0 | (3,777) |
Net income | $ 455,361 | $ 454,029 | $ 377,292 |
Basic net income per share: | |||
Continuing operations (in dollars per share) | $ 6.90 | $ 6.86 | $ 5.56 |
Loss from discontinued operations (in dollars per share) | 0 | 0 | (0.05) |
Basic net income per share (in dollars per share) | 6.90 | 6.86 | 5.51 |
Diluted net income per share: | |||
Continuing operations (in dollars per share) | 6.75 | 6.65 | 5.40 |
Loss from discontinued operations (in dollars per share) | 0 | 0 | (0.05) |
Diluted net income per share (in dollars per share) | $ 6.75 | $ 6.65 | $ 5.35 |
Weighted average shares outstanding: | |||
Basic (in shares) | 66,020 | 66,175 | 68,535 |
Diluted (in shares) | 67,484 | 68,229 | 70,546 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 455,361 | $ 454,029 | $ 377,292 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments, net of tax benefit of $643, $65 and $1,841 | (38,571) | (44,371) | 4,913 |
Unrealized gain (loss) on derivative instruments, net of tax benefit (expense) of ($1,975), $970 and ($950) | 3,320 | (1,631) | 1,610 |
Comprehensive income | $ 420,110 | $ 408,027 | $ 383,815 |
Consolidated Statements Of Com6
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax benefit | $ 643 | $ 65 | $ 1,841 |
Unrealized (loss) gain on derivative instruments, tax (expense) benefit | $ (1,975) | $ 970 | $ (950) |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2012 | $ 690,530 | $ 686 | $ 268,515 | $ 409,091 | $ 12,238 |
Beginning Balance (in shares) at Dec. 31, 2012 | 68,647 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Employee stock compensation | 57,893 | $ 3 | 57,890 | ||
Deferred compensation | (8,421) | (4,358) | (4,063) | ||
Employee stock compensation (in shares) | 264 | ||||
Proceeds from stock issuances under employee plans | 26,922 | $ 10 | 26,912 | ||
Proceeds from stock issuances under employee plans (in shares) | 1,049 | ||||
Tax effect of exercise of stock options | 28,621 | 28,621 | |||
Cash dividends declared ($2.12 per share, $1.92 per share and $1.68 per share in 2014, 2013, and 2012 respectively) | (113,722) | (113,722) | |||
Repurchase and retirement of common shares | $ (530,033) | $ (43) | (16,964) | (513,026) | |
Repurchase and retirement of common shares (in shares) | (4,337) | (4,337) | |||
Net income | $ 377,292 | 377,292 | |||
Other comprehensive income | 6,523 | 6,523 | |||
Ending Balance at Dec. 31, 2013 | 535,605 | $ 656 | 360,616 | 155,572 | 18,761 |
Ending Balance (in shares) at Dec. 31, 2013 | 65,623 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Employee stock compensation | 63,183 | $ 3 | 63,180 | ||
Deferred compensation | (5,107) | (3,020) | (2,087) | ||
Employee stock compensation (in shares) | 254 | ||||
Proceeds from stock issuances under employee plans | 31,313 | $ 10 | 31,303 | ||
Proceeds from stock issuances under employee plans (in shares) | 984 | ||||
Tax effect of exercise of stock options | 36,966 | 36,966 | |||
Cash dividends declared ($2.12 per share, $1.92 per share and $1.68 per share in 2014, 2013, and 2012 respectively) | (126,908) | (126,908) | |||
Repurchase and retirement of common shares | $ (81,812) | $ (6) | (3,040) | (78,766) | |
Repurchase and retirement of common shares (in shares) | (554) | (554) | |||
Net income | $ 454,029 | 454,029 | |||
Other comprehensive income | (46,002) | (46,002) | |||
Ending Balance at Dec. 31, 2014 | 861,267 | $ 663 | 486,005 | 401,840 | (27,241) |
Ending Balance (in shares) at Dec. 31, 2014 | 66,307 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Employee stock compensation | 61,929 | $ 2 | 61,927 | ||
Deferred compensation | 3,883 | (2,994) | 6,877 | ||
Employee stock compensation (in shares) | 144 | ||||
Proceeds from stock issuances under employee plans | 32,535 | $ 10 | 32,525 | ||
Proceeds from stock issuances under employee plans (in shares) | 1,037 | ||||
Tax effect of exercise of stock options | 34,654 | 34,654 | |||
Cash dividends declared ($2.12 per share, $1.92 per share and $1.68 per share in 2014, 2013, and 2012 respectively) | (139,285) | (139,285) | |||
Repurchase and retirement of common shares | $ (293,616) | $ (22) | (15,974) | (277,620) | |
Repurchase and retirement of common shares (in shares) | (2,179) | (2,179) | |||
Net income | $ 455,361 | 455,361 | |||
Other comprehensive income | (35,251) | (35,251) | |||
Ending Balance at Dec. 31, 2015 | $ 981,477 | $ 653 | $ 596,143 | $ 447,173 | $ (62,492) |
Ending Balance (in shares) at Dec. 31, 2015 | 65,309 |
Consolidated Statements Of Sha8
Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash dividends declared, per share | $ 2.12 | $ 1.92 | $ 1.68 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities: | |||
Net income | $ 455,361 | $ 454,029 | $ 377,292 |
Loss from discontinued operations | 0 | 0 | 3,777 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 152,138 | 127,507 | 92,100 |
Noncash compensation | 61,929 | 63,183 | 57,893 |
Noncash income from financial services | (29,405) | (18,645) | (4,983) |
Deferred income taxes | (16,343) | (50,388) | (5,892) |
Tax effect of share-based compensation exercises | (34,654) | (36,966) | (28,621) |
Other, net | 6,802 | 6,124 | 7,414 |
Changes in operating assets and liabilities: | |||
Trade receivables | 48,798 | (24,174) | (54,055) |
Inventories | (148,725) | (158,476) | (52,049) |
Accounts payable | (46,095) | 105,783 | 51,519 |
Accrued expenses | 9,182 | 30,664 | 53,278 |
Income taxes payable/receivable | (247) | 45,324 | 33,398 |
Prepaid expenses and others, net | (18,510) | (14,695) | (31,919) |
Cash provided by continuing operations | 440,231 | 529,270 | 499,152 |
Cash used for discontinued operations | 0 | 0 | (6,912) |
Net cash provided by operating activities | 440,231 | 529,270 | 492,240 |
Investing Activities: | |||
Purchase of property and equipment | (249,485) | (205,079) | (251,401) |
Investment in finance affiliate | (23,087) | (32,582) | (19,251) |
Distributions from finance affiliate | 42,527 | 31,337 | 12,005 |
Investment in other affiliates | (17,848) | (12,445) | (10,934) |
Acquisition of businesses, net of cash acquired | (41,195) | (28,013) | (137,104) |
Net cash used for investing activities | (289,088) | (246,782) | (406,685) |
Financing Activities: | |||
Borrowings under debt arrangements / capital lease obligations | 2,631,067 | 2,146,457 | 776,669 |
Repayments under debt arrangements / capital lease obligations | (2,385,480) | (2,228,587) | (597,492) |
Repurchase and retirement of common shares | (293,616) | (81,812) | (530,033) |
Cash dividends to shareholders | (139,285) | (126,908) | (113,722) |
Tax effect of proceeds from share-based compensation exercises | 34,654 | 36,966 | 28,621 |
Proceeds from stock issuances under employee plans | 32,535 | 31,313 | 26,922 |
Net cash used for financing activities | (120,125) | (222,571) | (409,035) |
Impact of currency exchange rates on cash balances | (13,269) | (14,565) | (1,287) |
Net increase (decrease) in cash and cash equivalents | 17,749 | 45,352 | (324,767) |
Cash and cash equivalents at beginning of period | 137,600 | 92,248 | 417,015 |
Cash and cash equivalents at end of period | 155,349 | 137,600 | 92,248 |
Noncash Activity: | |||
Property and equipment obtained through capital leases and notes payable | 14,500 | 24,908 | 0 |
Supplemental Cash Flow Information: | |||
Interest paid on debt borrowings | 11,451 | 11,259 | 6,076 |
Income taxes paid | $ 244,328 | $ 261,550 | $ 162,647 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Organization and Significant Accounting Policies Polaris Industries Inc. (“Polaris” or the “Company”), a Minnesota corporation, and its subsidiaries are engaged in the design, engineering, manufacturing and marketing of innovative, high-quality, high-performance Off-Road Vehicles (ORV), Snowmobiles, Motorcycles and Global Adjacent Markets vehicles. Polaris products, together with related parts, garments and accessories are sold worldwide through a network of independent dealers and distributors and its subsidiaries. The primary markets for our products are the United States, Canada, Western Europe, Australia and Mexico. Basis of presentation. The accompanying consolidated financial statements include the accounts of Polaris and its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Income from financial services is reported as a component of operating income to better reflect income from ongoing operations, of which financial services has a significant impact. On September 2, 2004, the Company announced its decision to discontinue the manufacture of marine products effective immediately. Material financial results for the marine products division are reported separately as discontinued operations for all periods presented. The Company evaluates consolidation of entities under Accounting Standards Codification (ASC) Topic 810. This Topic requires management to evaluate whether an entity or interest is a variable interest entity and whether the company is the primary beneficiary. Polaris used the guidelines to analyze the Company’s relationships, including its relationship with Polaris Acceptance, and concluded that there were no variable interest entities requiring consolidation by the Company in 2015 , 2014 and 2013 . In January 2015, the Company acquired the electric motorcycle business of Brammo, Inc. In April 2015, the Company completed the acquisitions of Timbersled Products, Inc. (“Timbersled”) and HH Investment Limited (“Hammerhead”). 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 Off-Road brand, along with maintaining key private label relationships with other original equipment manufacturers. At the end of December 2015, the Company completed the acquisition of certain assets of 509, Inc. (“509”). 509 is based in Washington and is an aftermarket leader in snowmobile helmets and goggles. The Company has included the financial results of the acquisitions in its consolidated results of operations beginning on the respective acquisition dates; however, the acquisitions did not have a material impact on Polaris’ consolidated financial position or results of operations. Refer to Note 5 for additional information regarding the acquisitions of Timbersled, Hammerhead and 509. In April 2014, the Company completed an acquisition of Kolpin Outdoors, Inc. (“Kolpin”), and in November 2014, completed the acquisition of certain assets of LSI Products Inc. and Armor Holdings, LLC. (“Pro Armor”). Kolpin is a leading aftermarket brand delivering purpose-built and universal-fit ORV accessories and lifestyle products. Pro Armor is an industry-leading brand in performance side-by-side accessories, that operates under the Pro Armor brand. Use of estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate results could differ from those estimates. 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 the 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 interest rate volatility, 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 December 31, 2015 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48,238 $ 48,238 — — Foreign exchange contracts, net 2,767 — $ 2,767 — Interest rate swap contracts 186 — 186 — Total assets at fair value $ 51,191 $ 48,238 $ 2,953 — Commodity contracts, net $ (354 ) — $ (354 ) — Non-qualified deferred compensation liabilities (48,238 ) $ (48,238 ) — — Total liabilities at fair value $ (48,592 ) $ (48,238 ) $ (354 ) — 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 ) — Polaris measures certain assets and liabilities at fair value on a nonrecurring basis. Assets acquired and liabilities assumed as part of acquisitions are measured at fair value. Refer to Note 5 for additional information. Polaris will impair or write off an investment and recognize a loss when events or circumstances indicate there is impairment in the investment that is other-than-temporary. The amount of loss is determined by measuring the investment at fair value. Refer to Note 9 for additional information. Cash equivalents. Polaris considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. Such investments consist principally of money market mutual funds. Allowance for doubtful accounts. Polaris’ financial exposure to collection of accounts receivable is limited due to its agreements with certain finance companies. For receivables not serviced through these finance companies, the Company provides a reserve for doubtful accounts based on historical rates and trends. This reserve is adjusted periodically as information about specific accounts becomes available. 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): December 31, 2015 December 31, 2014 Raw materials and purchased components $ 167,569 $ 165,823 Service parts, garments and accessories 189,731 163,455 Finished goods 388,970 262,578 Less: reserves (36,269 ) (26,171 ) Inventories $ 710,001 $ 565,685 Investment in finance affiliate. The caption investment in finance affiliate in the consolidated balance sheets represents Polaris’ fifty percent equity interest in Polaris Acceptance, a partnership agreement between GE Commercial Distribution Finance Corporation (“GECDF”) and one of Polaris’ wholly-owned subsidiaries. Polaris Acceptance provides floor plan financing to Polaris dealers in the United States. Polaris’ investment in Polaris Acceptance is accounted for under the equity method, and is recorded as investment in finance affiliate in the consolidated balance sheets. Polaris’ allocable share of the income of Polaris Acceptance has been included as a component of income from financial services in the consolidated statements of income. Refer to Note 8 for additional information regarding Polaris’ investment in Polaris Acceptance. Investment in other affiliates. Polaris' investment in other affiliates is included within other long-term assets in the consolidated balance sheets, and represents the Company’s investment in nonmarketable securities of strategic companies. For each investment, Polaris assesses the level of influence in determining whether to account for the investment under the cost method or equity method. For equity method investments, Polaris’ proportionate share of income or losses is recorded in the consolidated statements of income. Polaris will write down 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. Refer to Note 9 for additional information regarding Polaris’ investment in other affiliates. Property and equipment. Property and equipment is stated at cost. Depreciation is provided using the straight-line method over the estimated useful life of the respective assets, ranging from 10 - 40 years for buildings and improvements and from 1 - 7 years for equipment and tooling. Depreciation of assets recorded under capital leases is included with depreciation expense. Fully depreciated tooling is eliminated from the accounting records annually. Goodwill and other intangible assets. ASC Topic 350 prohibits the amortization of goodwill and intangible assets with indefinite useful lives. Topic 350 requires that these assets be reviewed for impairment at least annually. An impairment charge for goodwill is recognized only when the estimated fair value of a reporting unit, including goodwill, is less than its carrying amount. Refer to Note 5 for additional information regarding goodwill and other intangible assets. Revenue recognition. Revenues are recognized at the time of shipment to the dealer or distributor or other customers. Product returns, whether in the normal course of business or resulting from repossession under the Company's customer financing program (see Note 8), have not been material. Polaris sponsors certain sales incentive programs and accrues liabilities for estimated sales promotion expenses and estimated holdback amounts that are recognized as reductions to sales when products are sold to the dealer or distributor customer. Sales promotions and incentives. Polaris provides for estimated sales promotion and incentive expenses, which are recognized as a reduction to sales, at the time of sale to the dealer or distributor. Examples of sales promotion and incentive programs include dealer and consumer rebates, volume incentives, retail financing programs and sales associate incentives. Sales promotion and incentive expenses are estimated based on current programs and historical rates for each product line. Actual results may differ from these estimates if market conditions dictate the need to enhance or reduce sales promotion and incentive programs or if the customer usage rate varies from historical trends. Historically, sales promotion and incentive expenses have been within the Company’s expectations and differences have not been material. Dealer holdback programs. Dealer holdback represents a portion of the invoiced sales price that is expected to be subsequently returned to the dealer or distributor as a sales incentive upon the ultimate retail sale of the product. Holdback amounts reduce the ultimate net price of the products purchased by Polaris’ dealers or distributors and, therefore, reduce the amount of sales Polaris recognizes at the time of shipment. The portion of the invoiced sales price estimated as the holdback is recognized as “dealer holdback” liability on the Company’s balance sheet until paid or forfeited. The minimal holdback adjustments in the estimated holdback liability due to forfeitures are recognized in net sales. Payments are made to dealers or distributors at various times during the year subject to previously established criteria. Shipping and handling costs. Polaris records shipping and handling costs as a component of cost of sales at the time the product is shipped. Research and development expenses. Polaris records research and development expenses in the period in which they are incurred as a component of operating expenses. Advertising expenses. Polaris records advertising expenses as a component of selling and marketing expenses in the period in which they are incurred. In the years ended December 31, 2015 , 2014 and 2013 , Polaris incurred $80,090,000 , $82,600,000 and $73,945,000 , respectively. 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): For the Years Ended December 31, 2015 2014 2013 Balance at beginning of year $ 53,104 $ 52,818 $ 47,723 Additions to warranty reserve through acquisitions 250 160 1,602 Additions charged to expense 73,716 61,888 56,857 Warranty claims paid (70,596 ) (61,762 ) (53,364 ) Balance at end of year $ 56,474 $ 53,104 $ 52,818 Share-based employee compensation. For purposes of determining the estimated fair value of share-based payment awards on the date of grant under ASC Topic 718, Polaris uses the Black-Scholes Model. The Black-Scholes Model requires the input of certain assumptions that require judgment. Because employee stock options and restricted stock awards have characteristics significantly different from those of traded options, and because changes in the input assumptions can materially affect the fair value estimate, the existing models may not provide a reliable single measure of the fair value of the employee stock options or restricted stock awards. Management will continue to assess the assumptions and methodologies used to calculate estimated fair value of share-based compensation. Circumstances may change and additional data may become available over time, which could result in changes to these assumptions and methodologies and thereby materially impact the fair value determination. If factors change and the Company employs different assumptions in the application of Topic 718 in future periods, the compensation expense that was recorded under Topic 718 may differ significantly from what was recorded in the current period. Refer to Note 2 for additional information regarding share-based compensation. The Company estimates the likelihood and the rate of achievement for performance share-based awards. Changes in the estimated rate of achievement and fluctuation in the market based stock price can have a significant effect on reported share-based compensation expenses as the effect of a change in the estimated achievement level and fluctuation in the market based stock price is recognized in the period that the likelihood factor and stock price changes. If adjustments in the estimated rate of achievement and fluctuation in the market based stock price are made, they would be reflected in gross margin and operating expenses. Derivative instruments and hedging activities. Changes in the fair value of a derivative are recognized in earnings unless the derivative qualifies as a hedge. To qualify as a hedge, the Company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting. Polaris enters into foreign exchange contracts to manage currency exposures from certain of its purchase commitments denominated in foreign currencies and transfers of funds from time to time from its foreign subsidiaries. Polaris does not use any financial contracts for trading purposes. These contracts met the criteria for cash flow hedges. Gains and losses on the Canadian dollar, Norwegian krone, Swedish krona and Australian dollar contracts at settlement are recorded in non-operating other expense (income), net in the consolidated income statements, and gains and losses on the Japanese yen, Mexican peso and Euro contracts at settlement are recorded in cost of sales in the consolidated income statements. Unrealized gains and losses are recorded as a component of accumulated other comprehensive loss, net. Polaris is subject to market risk from fluctuating market prices of certain purchased commodity raw materials, including steel, aluminum, diesel fuel, and petroleum-based resins. In addition, the Company purchases components and parts containing various commodities, including steel, aluminum, rubber, rare earth metals and others which are integrated into the Company’s end products. While such materials are typically available from numerous suppliers, commodity raw materials are subject to price fluctuations. The Company generally buys these commodities and components based upon market prices that are established with the vendor as part of the purchase process. From time to time, Polaris utilizes derivative contracts to hedge a portion of the exposure to commodity risks. During 2015 and 2014 , the Company entered into derivative contracts to hedge a portion of the exposure for diesel fuel and aluminum. The Company's diesel fuel and aluminum hedging contracts do not meet the criteria for hedge accounting and therefore, the resulting unrealized gains and losses from those contracts are included in the consolidated statements of income in cost of sales. Refer to Note 11 for additional information regarding derivative instruments and hedging activities. The gross unrealized gains and losses of these contracts are recorded in the accompanying balance sheets as other current assets or other current liabilities. Foreign currency translation. The functional currency for each of the Polaris foreign subsidiaries is their respective local currencies. The assets and liabilities in all Polaris foreign entities are translated at the foreign exchange rate in effect at the balance sheet date. Translation gains and losses are reflected as a component of accumulated other comprehensive loss in the shareholders’ equity section of the accompanying consolidated balance sheets. Revenues and expenses in all of Polaris’ foreign entities are translated at the average foreign exchange rate in effect for each month of the quarter. Transaction gains and losses including intercompany transactions denominated in a currency other than the functional currency of the entity involved are included in other expense (income), net in our consolidated statements of income. Comprehensive income. Components of comprehensive income include net income, foreign currency translation adjustments, and unrealized gains or losses on derivative instruments. The Company has chosen to disclose comprehensive income in separate consolidated statements of comprehensive income. 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 was issued in August 2015 and defers the effective date) 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. Balance Sheet Classification of Deferred Taxes . In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes . This ASU requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The amendment is effective for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. Entities are permitted to apply the amendments either prospectively or retrospectively. The Company has elected to early adopt for the annual period ended December 31, 2015, and will apply the amendments prospectively. The adoption of ASU No. 2015-17 does not impact the Company's consolidated financial statements other than the change in presentation of deferred tax assets and liabilities within its consolidated balance sheets. Refer to Note 6 for additional information regarding deferred taxes. 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 | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Share-based plans. The Company grants long-term equity-based incentives and rewards for the benefit of its employees and directors under the shareholder approved Polaris Industries Inc. 2007 Omnibus Incentive Plan (as amended) (the “Omnibus Plan”), which were previously provided under several separate incentive and compensatory plans. Upon approval by the shareholders of the Omnibus Plan in April 2007, the Polaris Industries Inc. 1995 Stock Option Plan (“Option Plan”), the 1999 Broad Based Stock Option Plan, the Restricted Stock Plan and the 2003 Non-Employee Director Stock Option Plan (“Director Stock Option Plan” and collectively the “Prior Plans”) were frozen and no further grants or awards have since been or will be made under such plans. A maximum of 21,000,000 shares of common stock are available for issuance under the Omnibus Plan, together with additional shares canceled or forfeited under the Prior Plans. Stock option awards granted to date under the Omnibus Plan generally vest two to four years from the award date and expire after ten years. In addition, since 2007, the Company has granted a total of 146,000 deferred stock units to its non-employee directors under the Omnibus Plan ( 8,000 , 9,000 and 12,000 in 2015 , 2014 and 2013 , respectively) which will be converted into common stock when the director’s board service ends or upon a change in control. Restricted shares awarded under the Omnibus Plan to date generally contain restrictions, which lapse after a two to four year period if Polaris achieves certain performance measures. The Option Plan, which is frozen, was used to issue incentive and nonqualified stock options to certain employees. Options granted to date generally vest three years from the award date and expire after ten years. The Director Stock Option Plan, which is frozen and contains no unexercised awards as of December 31, 2015 , was used to issue nonqualified stock options to non-employee directors. Under the Polaris Industries Inc. Deferred Compensation Plan for Directors (“Director Plan”), members of the Board of Directors who are not Polaris officers or employees may annually elect to receive common stock equivalents in lieu of director fees, which will be converted into common stock when board service ends. A maximum of 500,000 shares of common stock has been authorized under this plan of which 107,000 equivalents have been earned and an additional 383,000 shares have been issued to retired directors as of December 31, 2015 . As of December 31, 2015 and 2014 , Polaris’ liability under the plan totaled $9,167,000 and $15,217,000 , respectively. Polaris maintains a long term incentive program under which awards are issued to provide incentives for certain employees to attain and maintain the highest standards of performance and to attract and retain employees of outstanding competence and ability with no cash payments required from the recipient. Awards granted through 2011 were paid in cash and were based on certain Company performance measures that are measured over a period of three consecutive calendar years. At the beginning of the plan cycle, participants had the option to receive a cash value at the time of awards or a cash value tied to Polaris stock price movement over the three year plan cycle. At December 31, 2015 , Polaris’ liability under the plan totaled $0 , and the final cash payout was made in 2014. Beginning in 2012, long term incentive program awards are granted in restricted stock units and therefore treated as equity awards. All remaining conditions of the long term incentive program remained the same as prior to 2012. Share-based compensation expense. 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): For the Years Ended December 31, 2015 2014 2013 Option plan $ 26,191 $ 24,428 $ 22,245 Other share-based awards 23,275 26,574 57,640 Total share-based compensation before tax 49,466 51,002 79,885 Tax benefit 18,451 19,039 29,835 Total share-based compensation expense included in net income $ 31,015 $ 31,963 $ 50,050 These share-based compensation expenses are reflected in cost of sales and operating expenses in the accompanying consolidated statements of income. For purposes of determining the estimated fair value of option awards on the date of grant under ASC Topic 718, Polaris has used the Black-Scholes option-pricing model. Assumptions utilized in the model are evaluated and revised, as necessary, to reflect market conditions and experience. At December 31, 2015 , there was $90,990,000 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 1.62 years. Included in unrecognized share-based compensation is approximately $36,622,000 related to stock options and $54,368,000 for restricted stock. General stock option and restricted stock information. The following summarizes stock option activity and the weighted average exercise price for the following plans for the each of the three years ended December 31, 2015 , 2014 and 2013 : Omnibus Plan Option Plan Director Stock Option Plan Outstanding Weighted Outstanding Weighted Outstanding Weighted Balance as of December 31, 2012 4,330,410 $ 35.50 353,572 $ 23.47 16,000 $ 27.10 Granted 1,037,729 87.06 — — — — Exercised (821,679 ) 24.45 (191,141 ) 23.23 (16,000 ) 27.10 Forfeited (80,380 ) 47.55 — — — — Balance as of December 31, 2013 4,466,080 $ 49.29 162,431 $ 23.74 — — Granted 705,564 130.10 — — — — Exercised (866,917 ) 30.33 (96,398 ) 23.77 — — Forfeited (98,215 ) 65.14 (2,800 ) 22.43 — — Balance as of December 31, 2014 4,206,512 $ 66.38 63,233 $ 23.76 — — Granted 743,062 150.81 — — — — Exercised (706,750 ) 40.21 (44,283 ) 23.92 — — Forfeited (137,285 ) 112.95 — — — — Balance as of December 31, 2015 4,105,539 $ 84.61 18,950 $ 23.37 — — Vested or expected to vest as of December 31, 2015 4,105,539 $ 84.61 18,950 $ 23.37 — — Options exercisable as of December 31, 2015 1,990,346 $ 48.05 18,950 $ 23.37 — — The weighted average remaining contractual life of options outstanding and of options outstanding and exercisable as of December 31, 2015 was 6.57 years and 5.08 years, respectively. The following assumptions were used to estimate the weighted average fair value of options of $37.64 , $39.97 and $30.43 granted during the years ended December 31, 2015 , 2014 and 2013 , respectively: For the Years Ended December 31, 2015 2014 2013 Weighted-average volatility 32 % 40 % 49 % Expected dividend yield 1.4 % 1.5 % 1.9 % Expected term (in years) 4.5 4.5 4.4 Weighted average risk free interest rate 1.5 % 1.6 % 0.9 % The total intrinsic value of options exercised during the year ended December 31, 2015 was $77,951,000 . The total intrinsic value of options outstanding and of options outstanding and exercisable at December 31, 2015 , was $82,276,000 and $77,110,000 , respectively. The total intrinsic values are based on the Company’s closing stock price on the last trading day of the applicable year for in-the-money options. The following table summarizes restricted stock activity for the year ended December 31, 2015 : Shares Weighted Balance as of December 31, 2014 1,077,731 $ 98.15 Granted 476,556 139.50 Vested (358,966 ) 72.56 Canceled/Forfeited (64,554 ) 126.64 Balance as of December 31, 2015 1,130,767 $ 122.08 Expected to vest as of December 31, 2015 765,271 $ 121.25 The total intrinsic value of restricted stock expected to vest as of December 31, 2015 was $65,775,000 . The total intrinsic value is based on the Company’s closing stock price on the last trading day of the year. The weighted average fair values at the grant dates of grants awarded under the Omnibus Plan for the years ended December 31, 2015 , 2014 and 2013 were $139.50 , $134.34 and $88.84 , respectively. |
Employee Savings Plans
Employee Savings Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Employee Savings Plans [Abstract] | |
Employee Savings Plans | Employee Savings Plans Employee Stock Ownership Plan (ESOP). Polaris sponsors a qualified non-leveraged ESOP under which a maximum of 7,200,000 shares of common stock can be awarded. The shares are allocated to eligible participants accounts based on total cash compensation earned during the calendar year. An employee's ESOP account vests equally after two and three years of service and requires no cash payments from the recipient. Participants may instruct Polaris to pay respective dividends directly to the participant in cash or reinvest the dividends into the participants ESOP accounts. Substantially all employees are eligible to participate in the ESOP, with the exception of Company officers. Total expense related to the ESOP was $7,455,000 , $10,789,000 and $9,224,000 , in 2015 , 2014 and 2013 , respectively. As of December 31, 2015 there were 3,847,000 shares held in the plan. Defined contribution plans. Polaris sponsors various defined contribution retirement plans covering substantially all U.S. employees. For the 401(k) defined contribution retirement plan which covers the majority of U.S. employees, the Company matches 100 percent of employee contributions up to a maximum of five percent of eligible compensation. All contributions vest immediately. The cost of these defined contribution retirement plans was $14,178,000 , $12,486,000 , and $10,651,000 , in 2015 , 2014 and 2013 , respectively. Supplemental Executive Retirement Plan (SERP). Polaris sponsors a SERP that provides executive officers of the Company an alternative to defer portions of their salary, cash incentive compensation, and Polaris matching contributions. The deferrals and contributions are held in a rabbi trust and are in funds to match the liabilities of the plan. The assets are recorded as trading assets. The assets of the rabbi trust are included in other long-term assets on the consolidated balance sheets and the SERP liability is included in other long-term liabilities on the consolidated balance sheets. The asset and liability balance are both $48,238,000 and $41,797,000 at December 31, 2015 , and 2014 , respectively. In November 2013, Polaris amended the SERP to allow executive officers of the Company the opportunity to defer certain restricted stock awards beginning with the annual performance-based award, which vested on February 14, 2015. After a holding period, the executive officer has the option to diversify the vested award into other funds available under the SERP. The deferrals are held in a rabbi trust and are invested in funds to match the liabilities of the SERP. The awards are redeemable in Polaris stock or in cash based upon the occurrence of events not solely within the control of Polaris; therefore, awards probable of vesting, for which the executive has not yet made an election to defer, or awards that have been deferred but have not yet vested and are probable of vesting or have been diversified into other funds are reported as deferred compensation in the temporary equity section of the consolidated balance sheets. The awards recorded in temporary equity are recognized at fair value as though the reporting date is also the redemption date, with any difference from stock-based compensation recorded in retained earnings. At December 31, 2015 , 112,215 shares are recorded at a fair value of $9,645,000 in temporary equity, which includes $10,372,000 of compensation cost and $(727,000) of cumulative fair value adjustment recorded through retained earnings. |
Financing Agreement
Financing Agreement | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Financing Agreement | Financing Agreement Debt and capital lease obligations and the average related interest rates were as follows (in thousands): Average interest rate at December 31, 2015 Maturity December 31, 2015 December 31, 2014 Revolving loan facility 1.07% March 2020 $ 225,707 — 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 5.00% Various through 2029 21,874 26,148 Notes payable and other 3.50% June 2027 15,698 — Total debt, capital lease obligations, and notes payable $ 463,279 $ 226,148 Less: current maturities 5,059 2,528 Total long-term debt, capital lease obligations, and notes payable $ 458,220 $ 223,620 Bank financing. 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 amended 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 December 31, 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 ORV and Slingshot production. The Company broke ground on the facility in the first quarter of 2015 and expects to start production 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. The following summarizes activity under Polaris’ credit arrangements (dollars in thousands): 2015 2014 2013 Total borrowings at December 31 $ 425,707 $ 200,000 $ 280,500 Average outstanding borrowings during year $ 403,097 $ 361,715 $ 138,400 Maximum outstanding borrowings during year $ 523,097 $ 500,000 $ 411,000 Interest rate at December 31 2.33 % 3.77 % 2.98 % The carrying amount of the Company’s long-term debt approximates its fair value as December 31, 2015 and 2014 . Letters of credit. At December 31, 2015 , Polaris had open letters of credit totaling $21,563,000 . The amounts are primarily related to inventory purchases and are reduced as the purchases are received. Dealer financing programs. Certain finance companies, including Polaris Acceptance, an affiliate (see Note 8), provide floor plan financing to dealers on the purchase of Polaris products. The amount financed by worldwide dealers under these arrangements at December 31, 2015 , was approximately $1,562,014,000 . Polaris has agreed to repurchase products repossessed by the finance companies up to an annual maximum of no more than 15 percent of the average month-end balances outstanding during the prior calendar year. Polaris’ financial exposure under these arrangements is limited to the difference between the amount paid to the finance companies for repurchases and the amount received on the resale of the repossessed product. No material losses have been incurred under these agreements during the periods presented. As a part of its marketing program, Polaris contributes to the cost of dealer financing up to certain limits and subject to certain conditions. Such expenditures are included as an offset to sales in the accompanying consolidated statements of income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets ASC Topic 350 prohibits the amortization of goodwill and intangible assets with indefinite useful lives. Topic 350 requires that these assets be reviewed for impairment at least annually. An impairment charge for goodwill is recognized only when the estimated fair value of a reporting unit, including goodwill, is less than its carrying amount. The Company performed the annual impairment test as of December 31, 2015 and 2014 . The results of the impairment test indicated that no goodwill or intangible impairment existed as of the test date. The Company has had no historical impairments of goodwill. In accordance with Topic 350, the Company will continue to complete an impairment analysis on an annual basis or more frequently if an event or circumstance that would more likely than not reduce the fair value of a reporting unit below its carrying amount occurs. Goodwill and other intangible assets, net, consist of $131,014,000 and $123,031,000 of goodwill and $105,103,000 and $100,935,000 of intangible assets, net of accumulated amortization, for the periods ended December 31, 2015 and 2014 , respectively. Additions to goodwill and other intangible assets in 2015 relate primarily to the acquisitions of Timbersled and Hammerhead in April 2015, and the acquisition of certain assets of 509 in December 2015. For these acquisitions, the respective aggregate purchase price was allocated on a preliminary basis to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Timbersled, Hammerhead and 509's 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 December 31, 2015 , the purchase price allocations for these acquisitions remain preliminary. The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 are as follows (in thousands): 2015 2014 Balance as of beginning of year $ 123,031 $ 126,697 Goodwill from businesses acquired 17,010 7,456 Currency translation effect on foreign goodwill balances (9,027 ) (11,122 ) Balance as of end of year $ 131,014 $ 123,031 For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2015 and 2014 are as follows (in thousands): 2015 2014 Gross Accumulated Gross Accumulated Other intangible assets, beginning $ 124,093 $ (23,158 ) $ 116,279 $ (13,268 ) Intangible assets acquired during the period 20,779 — 16,050 — Amortization expense — (12,136 ) — (11,599 ) Currency translation effect on foreign balances (6,041 ) 1,566 (8,236 ) 1,709 Other intangible assets, ending $ 138,831 $ (33,728 ) $ 124,093 $ (23,158 ) The components of other intangible assets were as follows (in thousands): December 31, 2015 Estimated Life Gross Carrying Accumulated Net Non-compete agreements 5 $ 540 $ (401 ) $ 139 Dealer/customer related 7 67,079 (24,069 ) 43,010 Developed technology 5-7 19,261 (9,258 ) 10,003 Total amortizable 86,880 (33,728 ) 53,152 Non-amortizable—brand/trade names 51,951 — 51,951 Total other intangible assets, net $ 138,831 $ (33,728 ) $ 105,103 December 31, 2014 Estimated Life Gross Carrying Accumulated Net Non-compete agreements 5 $ 540 $ (293 ) $ 247 Dealer/customer related 7 62,758 (16,361 ) 46,397 Developed technology 5-7 14,571 (6,504 ) 8,067 Total amortizable 77,869 (23,158 ) 54,711 Non-amortizable—brand/trade names 46,224 — 46,224 Total other intangible assets, net $ 124,093 $ (23,158 ) $ 100,935 Amortization expense for intangible assets for the year ended December 31, 2015 and 2014 was $12,136,000 and $11,599,000 . Estimated amortization expense for 2016 through 2020 is as follows: 2016 , $13,000,000 ; 2017 , $13,000,000 ; 2018 , $10,800,000 ; 2019 , $9,200,000 ; 2020 , $4,400,000 ; and after 2020 , $2,800,000 . 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Polaris’ income from continuing operations before income taxes was generated from its United States and foreign operations as follows (in thousands): For the Years Ended December 31, 2015 2014 2013 United States $ 640,604 $ 666,323 $ 535,265 Foreign 45,133 32,994 39,164 Income from continuing operations before income taxes $ 685,737 $ 699,317 $ 574,429 Components of Polaris’ provision for income taxes for continuing operations are as follows (in thousands): For the Years Ended December 31, 2015 2014 2013 Current: Federal $ 211,017 $ 255,299 $ 167,690 State 16,609 20,438 12,942 Foreign 20,733 21,584 15,457 Deferred (17,983 ) (52,033 ) (2,729 ) Total provision for income taxes for continuing operations $ 230,376 $ 245,288 $ 193,360 Reconciliation of the Federal statutory income tax rate to the effective tax rate is as follows: For the Years Ended December 31, 2015 2014 2013 Federal statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 1.5 1.5 1.5 Domestic manufacturing deduction (0.8 ) (1.1 ) (1.0 ) Research and development tax credit (3.1 ) (1.1 ) (2.2 ) Valuation allowance for foreign subsidiaries net operating losses 0.2 — 0.3 Other permanent differences 0.8 0.8 0.1 Effective income tax rate for continuing operations 33.6 % 35.1 % 33.7 % In December 2015, the President of the United States signed the Consolidated Appropriations Act, 2016, which retroactively reinstated the research and development tax credit for 2015, and also made the research and development tax credit permanent. In addition to the 2015 research and development credits, the Company filed amended returns to claim additional credits related to qualified research expenditures incurred in prior years. In January 2013, the President of the United States signed the American Taxpayers Relief Act of 2012, which reinstated the research and development tax credit. As a result, the impact of both the 2012 and 2013 research and development tax credits were recorded in the 2013 tax provision. Undistributed earnings relating to certain non-U.S. subsidiaries of approximately $143,284,000 and $105,782,000 at December 31, 2015 and 2014 , respectively, are considered to be permanently reinvested; accordingly, no provision for U.S. federal income taxes has been provided thereon. If the Company were to distribute these earnings, it would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits reflecting the amounts paid to non-U.S. taxing authorities) and withholding taxes payable to the non-U.S. countries. Determination of the unrecognized deferred U.S. income tax liability related to these undistributed earnings is not practicable due to the complexities associated with this hypothetical calculation. Polaris utilizes the liability method of accounting for income taxes whereby deferred taxes are determined based on the estimated future tax effects of differences between the financial statement and tax bases of assets and liabilities given the provisions of enacted tax laws. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes . This ASU requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in the consolidated balance sheet. The Company has early adopted the requirements of ASU No. 2015-17, and applied the amended provisions prospectively. The net deferred income taxes consist of the following (in thousands): December 31, 2015 2014 Current deferred income taxes: Inventories — $ 9,034 Accrued expenses — 104,279 Derivative instruments — 864 Total current — 114,177 Noncurrent deferred income taxes: Inventories $ 10,047 — Accrued expenses 107,767 — Derivative instruments (1,112 ) — Cost in excess of net assets of business acquired (7,956 ) (13,111 ) Property and equipment (28,853 ) (28,921 ) Compensation payable in common stock 67,222 58,446 Net operating loss carryforwards and impairments 12,374 12,693 Valuation allowance (6,684 ) (6,097 ) Total noncurrent 152,805 23,010 Total net deferred income tax asset $ 152,805 $ 137,187 At December 31, 2015 , the Company had available unused international and acquired federal net operating loss carryforwards of $38,039,000 . The net operating loss carryforwards will expire at various dates from 2016 to 2034 , with certain jurisdictions having indefinite carryforward terms. Polaris classified liabilities related to unrecognized tax benefits as long-term income taxes payable in the accompanying consolidated balance sheets in accordance with ASC Topic 740. Polaris recognizes potential interest and penalties related to income tax positions as a component of the provision for income taxes on the consolidated statements of income. Reserves related to potential interest are recorded as a component of long-term income taxes payable. The entire balance of unrecognized tax benefits at December 31, 2015 , if recognized, would affect the Company’s effective tax rate. The Company does not anticipate that total unrecognized tax benefits will materially change in the next twelve months. Tax years 2009 through 2015 remain open to examination by certain tax jurisdictions to which the Company is subject. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): For the Years Ended December 31, 2015 2014 Balance at January 1, $ 9,836 $ 13,199 Gross increases for tax positions of prior years 9,683 55 Gross increases for tax positions of current year 4,961 1,456 Decreases due to settlements and other prior year tax positions (178 ) (2,346 ) Decreases for lapse of statute of limitations (1,364 ) (1,586 ) Currency translation effect on foreign balances (429 ) (942 ) Balance at December 31, 22,509 9,836 Reserves related to potential interest at December 31, 907 732 Unrecognized tax benefits at December 31, $ 23,416 $ 10,568 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Shareholders Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Stock repurchase program. The Polaris Board of Directors has authorized the cumulative repurchase of up to 75,000,000 shares of the Company’s common stock. In addition, in 2013 the Polaris Board of Directors authorized the one-time repurchase of all the shares of Polaris stock owned by Fuji Heavy Industries Ltd. (“Fuji”). On November 12, 2013, Polaris entered into and executed a Share Repurchase Agreement with Fuji under which Polaris purchased 3,960,000 shares of Polaris stock held by Fuji for an aggregate purchase price of $497,474,000 . As of December 31, 2015 , 2,871,000 shares remain available for repurchases under the Board’s authorization. During 2015 , Polaris paid $293,616,000 to repurchase and retire approximately 2,179,000 shares. During 2014 , Polaris paid $81,812,000 to repurchase and retire approximately 554,000 shares, and in 2013 Polaris paid $530,033,000 to repurchase and retire approximately 4,337,000 shares. Shareholder rights plan. During 2000, the Polaris Board of Directors adopted a shareholder rights plan. Under the plan, a dividend of preferred stock purchase rights will become exercisable if a person or group should acquire 15 percent or more of the Company’s stock. The dividend will consist of one purchase right for each outstanding share of the Company’s common stock held by shareholders of record on June 1, 2000 . The shareholder rights plan was amended and restated in April 2010. The amended and restated rights agreement extended the final expiration date of the rights from May 2010 to April 2020, expanded the definition of “Beneficial Owner” to include certain derivative securities relating to the common stock of the Company and increased the purchase price for the rights from $75 to $125 per share. The Board of Directors may redeem the rights earlier for $0.01 per right. Stock purchase plan. Polaris maintains an employee stock purchase plan (“Purchase Plan”). A total of 3,000,000 shares of common stock are reserved for this plan. The Purchase Plan permits eligible employees to purchase common stock monthly at 95 percent of the average of the beginning and end of month stock prices. As of December 31, 2015 , approximately 1,286,000 shares had been purchased under the Purchase Plan. Dividends. Quarterly and total year cash dividends declared per common share for the year ended December 31, 2015 and 2014 were as follows: For the Years Ended December 31, 2015 2014 Quarterly dividend declared and paid per common share $ 0.53 $ 0.48 Total dividends declared and paid per common share $ 2.12 $ 1.92 On January 28, 2016 , the Polaris Board of Directors declared a regular cash dividend of $0.55 per share payable on March 15, 2016 to holders of record of such shares at the close of business on March 1, 2016 . 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): For the Years Ended December 31, 2015 2014 2013 Weighted average number of common shares outstanding 65,719 65,904 68,209 Director Plan and deferred stock units 210 196 242 ESOP 91 75 84 Common shares outstanding—basic 66,020 66,175 68,535 Dilutive effect of restricted stock awards 255 359 228 Dilutive effect of stock option awards 1,209 1,695 1,783 Common and potential common shares outstanding—diluted 67,484 68,229 70,546 During 2015 , 2014 and 2013 , 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 1,001,000 , 581,000 and 23,000 , respectively. 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 — (3,850 ) (3,850 ) Change in fair value (38,571 ) 7,170 (31,401 ) Balance as of December 31, 2015 $ (64,360 ) $ 1,868 $ (62,492 ) 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 year ended December 31, 2015 and 2014 (in thousands): Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Reclassified from Accumulated OCI into Income For the Years Ended December 31, 2015 2014 Foreign currency contracts Other expense, net $ (8,399 ) $ (5,641 ) Foreign currency contracts Cost of sales 4,549 172 Total $ (3,850 ) $ (5,469 ) The net amount of the existing gains or losses at December 31, 2015 that is expected to be reclassified into the income statement within the next 12 months is expected to not be material. See Note 11 for further information regarding Polaris' derivative activities. |
Financial Services Arrangements
Financial Services Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Financial Services Arrangements [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. During 2015, Polaris and GECDF amended the Polaris Acceptance partnership agreement to extend it through February 2022 with similar terms to the previous agreement. Polaris’ total investment in Polaris Acceptance of $99,073,000 at December 31, 2015 is accounted for under the equity method, and is recorded in investment in finance affiliate in the accompanying consolidated balance sheets. At December 31, 2015 , the outstanding amount of net receivables financed for dealers under this arrangement was $1,305,061,000 , which included $472,029,000 in the Polaris Acceptance portfolio and $833,032,000 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 was 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 2022. Summarized financial information for Polaris Acceptance reflecting the effects of the Securitization Facility is presented as follows (in thousands): For the Years Ended December 31, 2015 2014 2013 Revenues $ 63,548 $ 40,968 $ 13,010 Interest and operating expenses 4,738 3,678 3,044 Net income $ 58,810 $ 37,290 $ 9,966 As of December 31, 2015 2014 Finance receivables, net $ 472,029 $ 337,088 Other assets 124 122 Total Assets $ 472,153 $ 337,210 Notes payable $ 269,881 $ 155,436 Other liabilities 4,126 3,560 Partners’ capital 198,146 178,214 Total Liabilities and Partners’ Capital $ 472,153 $ 337,210 Polaris has agreements with Capital One, FreedomRoad, Sheffield Financial, Chrome Capital, and Synchrony Bank 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 | 12 Months Ended |
Dec. 31, 2015 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investment in Other Affiliates | Investment in Other Affiliates The Company has certain investments in nonmarketable securities of strategic companies. As of December 31, 2015 and 2014 , these investments are comprised of investments in Eicher-Polaris Private Limited (EPPL) and Brammo, Inc. (“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 December 31, 2015 and 2014 , the carrying value of the Company's investment in EPPL was $18,884,000 and $14,601,000 , respectively. Through December 31, 2015 , Polaris has invested $34,727,000 in the joint venture. Polaris' share of EPPL loss for the years ended December 31, 2015 and 2014 was $6,802,000 and $4,124,000 , respectively, and 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 vehicles, 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. Brammo 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. During 2014, Polaris recorded an immaterial impairment expense within other expense (income), net in the consolidated statements of income, and reduced the Brammo investment. There were no impairments recorded during 2015 related to these investments. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Product liability. Polaris is subject to product liability claims in the normal course of business. In 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 December 31, 2015 , the Company had an accrual of $19,725,000 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. As previously disclosed, the Company was party to a lawsuit in which the plaintiff was seriously injured in a 2008 accident involving a collision between a 2001 Polaris Virage personal watercraft and a boat. On July 23, 2013, a Los Angeles County jury returned an unfavorable verdict against the Company. The jury returned a verdict finding that the accident was caused by multiple actions, the majority of which was attributed to the negligence of the other boat driver, with the balance attributed to the reckless behavior of the driver of the Virage and the design of the Virage. The jury awarded approximately $21,000,000 in damages, of which Polaris' liability was $10,000,000 . In the third quarter of 2013, the Company reported a loss from discontinued operations, net of tax, of $3,777,000 for an additional provision to accrue Polaris' portion of the jury award and legal fees. The amount was fully paid in 2013. In September 2004, the Company announced its decision to cease manufacturing marine products. Since then, any material financial results of that division have been recorded in discontinued operations. Litigation. 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. Contingent purchase price. 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 December 31, 2015 and 2014 the fair value of contingent purchase price commitments was $2,222,000 and $27,908,000 , respectively, with the current year decrease related to payments made in 2015. Leases. Polaris leases buildings and equipment under non-cancelable operating leases. Total rent expense under all operating lease agreements was $16,823,000 , $13,734,000 and $10,656,000 for 2015 , 2014 and 2013 , respectively. A property lease agreement signed in 2013 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. Future minimum annual lease payments under capital and operating leases with noncancelable terms in excess of one year as of December 31, 2015 , are as follows (in thousands): Capital Operating 2016 $ 3,045 $ 13,736 2017 2,543 8,525 2018 2,070 6,906 2019 1,886 5,053 2020 1,796 3,229 Thereafter 15,545 1,928 Total future minimum lease obligation $ 26,885 $ 39,377 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 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 maintain a balanced risk of 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 December 31, 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 $ 20,336 $ (69 ) Canadian Dollar 81,747 5,062 Japanese Yen 10,066 110 Mexican Peso 32,857 (2,336 ) Total $ 145,006 $ 2,767 These contracts, with maturities through December 31, 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. Polaris enters into derivative contracts to hedge a portion of the exposure related to diesel fuel and aluminum. These diesel fuel and aluminum derivative contracts have not met the criteria for hedge accounting. The table below summarizes the carrying values of derivative instruments as of December 31, 2015 and 2014 (in thousands): Carrying Values of Derivative Instruments as of December 31, 2015 Fair Value— Assets Fair Value— (Liabilities) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts(1) $ 5,218 $ (2,451 ) $ 2,767 Interest rate swap contracts(1) 186 — 186 Total derivatives designated as hedging instruments $ 5,404 $ (2,451 ) $ 2,953 Commodity contracts(1) — $ (354 ) $ (354 ) Total derivatives not designated as hedging instruments — $ (354 ) $ (354 ) Total derivatives $ 5,404 $ (2,805 ) $ 2,599 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 amount of gains (losses), net of tax, related to the effective portion of derivative instruments designated as cash flow hedges included in accumulated other comprehensive loss for the years ended December 31, 2015 and 2014 was $3,320,000 and $(1,631,000) , respectively. See Note 7 for information about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive income loss into the income statement for derivative instruments designated as hedging instruments. The ineffective portion of foreign currency contracts was not material for the years ended December 31, 2015 and 2014 . The Company recognized a loss of $2,994,000 and $4,820,000 in cost of sales on commodity contracts not designated as hedging instruments in 2015 and 2014 , respectively. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company's reportable segments are based on the Company's method of internal reporting, which generally segregates the operating segments by product line, inclusive of wholegoods and PG&A. The internal reporting of these operating segments is defined based, in part, on the reporting and review process used by the Company's President and Chief Operating Officer. The Company has four operating segments: 1) ORV, 2) Snowmobiles, 3) Motorcycles, and 4) Global Adjacent Markets, and three reportable segments: 1) ORV/Snowmobiles, 2) Motorcycles, and 3) Global Adjacent Markets. Prior to the third quarter ended September 30, 2015, we aggregated our four operating segments into one reportable segment. However, the Company now believes disaggregating one segment into three reportable segments provides more beneficial information for our financial statement users. The ORV/Snowmobiles segment includes the aggregated results of our ORV and Snowmobiles operating segments. The Motorcycles and Global Adjacent Markets segments include the results for those respective operating segments. The Corporate amounts include costs that are not allocated to individual segments, which include incentive-based compensation and other unallocated manufacturing costs. Additionally, given the commonality of customers, manufacturing and asset management, the Company does not maintain separate balance sheets for each segment. Accordingly, the segment information presented below is limited to sales and gross profit data. For the Years Ended December 31, ($ in thousands) 2015 2014 2013 Sales ORV/Snowmobiles $ 3,708,933 $ 3,741,154 $ 3,255,033 Motorcycles 698,257 418,546 263,443 Global Adjacent Markets 312,100 319,948 258,592 Total sales 4,719,290 4,479,648 3,777,068 Gross profit ORV/Snowmobiles 1,190,630 1,206,553 1,049,794 Motorcycles 97,261 54,427 48,208 Global Adjacent Markets 84,211 88,797 63,934 Corporate (33,060 ) (30,599 ) (41,057 ) Total gross profit $ 1,339,042 $ 1,319,178 $ 1,120,879 Sales to external customers based on the location of the customer and property and equipment, net, by geography are presented in the tables below (in thousands): For the Years Ended December 31, 2015 2014 2013 United States $ 3,688,980 $ 3,339,905 $ 2,721,300 Canada 378,725 454,608 463,316 Other foreign countries 651,585 685,135 592,452 Consolidated sales $ 4,719,290 $ 4,479,648 $ 3,777,068 As of December 31, 2015 2014 United States $ 548,410 $ 432,614 Mexico 39,542 49,064 Other foreign countries 62,726 73,750 Consolidated property and equipment, net $ 650,678 $ 555,428 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On January 28, 2016, the Board of Directors approved an increase in the Company’s common stock repurchase authorization by 7.5 million shares. The additional share repurchase authorization, together with the 2.9 million shares remaining available for repurchase under the prior authorization, represents approximately 16 percent of the shares of Polaris common stock currently outstanding, as of January 28, 2016. The Company has evaluated events subsequent to the balance sheet date through the date the consolidated financial statements have been filed. There were no other subsequent events which required recognition or disclosure in the consolidated financial statements. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (unaudited) Sales Gross profit Net income Diluted net income per share (In thousands, except per share data) 2015 First Quarter $ 1,033,345 $ 293,731 $ 88,563 $ 1.30 Second Quarter 1,124,327 319,414 100,943 1.49 Third Quarter 1,456,000 415,623 155,173 2.30 Fourth Quarter 1,105,618 310,274 110,682 1.66 Totals $ 4,719,290 $ 1,339,042 $ 455,361 $ 6.75 2014 First Quarter $ 888,346 $ 258,417 $ 80,901 $ 1.19 Second Quarter 1,013,959 304,914 96,905 1.42 Third Quarter 1,302,343 388,274 140,826 2.06 Fourth Quarter 1,275,000 367,573 135,397 1.98 Totals $ 4,479,648 $ 1,319,178 $ 454,029 $ 6.65 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | POLARIS INDUSTRIES INC. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS Allowance for Doubtful Accounts Balance at Additions Additions Other Changes Balance at (In thousands) 2013: Deducted from asset accounts—Allowance for doubtful accounts receivable $ 4,268 $ 75 $ 2,192 $ (640 ) $ 5,895 2014: Deducted from asset accounts—Allowance for doubtful accounts receivable $ 5,895 $ 2,347 $ 265 $ (1,083 ) $ 7,424 2015: Deducted from asset accounts—Allowance for doubtful accounts receivable $ 7,424 $ 2,169 $ 59 $ (1,008 ) $ 8,644 (1) Uncollectible accounts receivable written off, net of recoveries. Inventory Reserve Balance at Additions Additions Other Changes Balance at (In thousands) 2013: Deducted from asset accounts—Allowance for obsolete inventory $ 17,357 $ 9,966 $ 2,423 $ (8,143 ) $ 21,603 2014: Deducted from asset accounts—Allowance for obsolete inventory $ 21,603 $ 12,868 $ 600 $ (8,900 ) $ 26,171 2015: Deducted from asset accounts—Allowance for obsolete inventory $ 26,171 $ 21,648 $ 1,942 $ (13,492 ) $ 36,269 (2) Inventory disposals, net of recoveries. |
Organization and Significant 25
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation. The accompanying consolidated financial statements include the accounts of Polaris and its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Income from financial services is reported as a component of operating income to better reflect income from ongoing operations, of which financial services has a significant impact. On September 2, 2004, the Company announced its decision to discontinue the manufacture of marine products effective immediately. Material financial results for the marine products division are reported separately as discontinued operations for all periods presented. The Company evaluates consolidation of entities under Accounting Standards Codification (ASC) Topic 810. This Topic requires management to evaluate whether an entity or interest is a variable interest entity and whether the company is the primary beneficiary. Polaris used the guidelines to analyze the Company’s relationships, including its relationship with Polaris Acceptance, and concluded that there were no variable interest entities requiring consolidation by the Company in 2015 , 2014 and 2013 . In January 2015, the Company acquired the electric motorcycle business of Brammo, Inc. In April 2015, the Company completed the acquisitions of Timbersled Products, Inc. (“Timbersled”) and HH Investment Limited (“Hammerhead”). 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 Off-Road brand, along with maintaining key private label relationships with other original equipment manufacturers. At the end of December 2015, the Company completed the acquisition of certain assets of 509, Inc. (“509”). 509 is based in Washington and is an aftermarket leader in snowmobile helmets and goggles. The Company has included the financial results of the acquisitions in its consolidated results of operations beginning on the respective acquisition dates; however, the acquisitions did not have a material impact on Polaris’ consolidated financial position or results of operations. Refer to Note 5 for additional information regarding the acquisitions of Timbersled, Hammerhead and 509. In April 2014, the Company completed an acquisition of Kolpin Outdoors, Inc. (“Kolpin”), and in November 2014, completed the acquisition of certain assets of LSI Products Inc. and Armor Holdings, LLC. (“Pro Armor”). Kolpin is a leading aftermarket brand delivering purpose-built and universal-fit ORV accessories and lifestyle products. Pro Armor is an industry-leading brand in performance side-by-side accessories, that operates under the Pro Armor brand. |
Use of Estimates | Use of estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate results could differ from those estimates. |
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 the 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 interest rate volatility, 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 December 31, 2015 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48,238 $ 48,238 — — Foreign exchange contracts, net 2,767 — $ 2,767 — Interest rate swap contracts 186 — 186 — Total assets at fair value $ 51,191 $ 48,238 $ 2,953 — Commodity contracts, net $ (354 ) — $ (354 ) — Non-qualified deferred compensation liabilities (48,238 ) $ (48,238 ) — — Total liabilities at fair value $ (48,592 ) $ (48,238 ) $ (354 ) — 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 ) — Polaris measures certain assets and liabilities at fair value on a nonrecurring basis. Assets acquired and liabilities assumed as part of acquisitions are measured at fair value. Refer to Note 5 for additional information. Polaris will impair or write off an investment and recognize a loss when events or circumstances indicate there is impairment in the investment that is other-than-temporary. The amount of loss is determined by measuring the investment at fair value. Refer to Note 9 for additional information. |
Cash Equivalents | Cash equivalents. Polaris considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. Such investments consist principally of money market mutual funds. |
Allowance for Doubtful Accounts | Allowance for doubtful accounts. Polaris’ financial exposure to collection of accounts receivable is limited due to its agreements with certain finance companies. For receivables not serviced through these finance companies, the Company provides a reserve for doubtful accounts based on historical rates and trends. This reserve is adjusted periodically as information about specific accounts becomes available. |
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. |
Investment in Affiliate | Investment in finance affiliate. The caption investment in finance affiliate in the consolidated balance sheets represents Polaris’ fifty percent equity interest in Polaris Acceptance, a partnership agreement between GE Commercial Distribution Finance Corporation (“GECDF”) and one of Polaris’ wholly-owned subsidiaries. Polaris Acceptance provides floor plan financing to Polaris dealers in the United States. Polaris’ investment in Polaris Acceptance is accounted for under the equity method, and is recorded as investment in finance affiliate in the consolidated balance sheets. Polaris’ allocable share of the income of Polaris Acceptance has been included as a component of income from financial services in the consolidated statements of income. Refer to Note 8 for additional information regarding Polaris’ investment in Polaris Acceptance. Investment in other affiliates. Polaris' investment in other affiliates is included within other long-term assets in the consolidated balance sheets, and represents the Company’s investment in nonmarketable securities of strategic companies. For each investment, Polaris assesses the level of influence in determining whether to account for the investment under the cost method or equity method. For equity method investments, Polaris’ proportionate share of income or losses is recorded in the consolidated statements of income. Polaris will write down 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. Refer to Note 9 for additional information regarding Polaris’ investment in other affiliates. |
Property and Equipment | Property and equipment. Property and equipment is stated at cost. Depreciation is provided using the straight-line method over the estimated useful life of the respective assets, ranging from 10 - 40 years for buildings and improvements and from 1 - 7 years for equipment and tooling. Depreciation of assets recorded under capital leases is included with depreciation expense. Fully depreciated tooling is eliminated from the accounting records annually. |
Goodwill and Other Intangible Assets | Goodwill and other intangible assets. ASC Topic 350 prohibits the amortization of goodwill and intangible assets with indefinite useful lives. Topic 350 requires that these assets be reviewed for impairment at least annually. An impairment charge for goodwill is recognized only when the estimated fair value of a reporting unit, including goodwill, is less than its carrying amount. Refer to Note 5 for additional information regarding goodwill and other intangible assets. |
Revenue Recognition | Revenue recognition. Revenues are recognized at the time of shipment to the dealer or distributor or other customers. Product returns, whether in the normal course of business or resulting from repossession under the Company's customer financing program (see Note 8), have not been material. Polaris sponsors certain sales incentive programs and accrues liabilities for estimated sales promotion expenses and estimated holdback amounts that are recognized as reductions to sales when products are sold to the dealer or distributor customer. |
Sales Promotions and Incentives | Sales promotions and incentives. Polaris provides for estimated sales promotion and incentive expenses, which are recognized as a reduction to sales, at the time of sale to the dealer or distributor. Examples of sales promotion and incentive programs include dealer and consumer rebates, volume incentives, retail financing programs and sales associate incentives. Sales promotion and incentive expenses are estimated based on current programs and historical rates for each product line. Actual results may differ from these estimates if market conditions dictate the need to enhance or reduce sales promotion and incentive programs or if the customer usage rate varies from historical trends. Historically, sales promotion and incentive expenses have been within the Company’s expectations and differences have not been material. |
Dealer Holdback Programs | Dealer holdback programs. Dealer holdback represents a portion of the invoiced sales price that is expected to be subsequently returned to the dealer or distributor as a sales incentive upon the ultimate retail sale of the product. Holdback amounts reduce the ultimate net price of the products purchased by Polaris’ dealers or distributors and, therefore, reduce the amount of sales Polaris recognizes at the time of shipment. The portion of the invoiced sales price estimated as the holdback is recognized as “dealer holdback” liability on the Company’s balance sheet until paid or forfeited. The minimal holdback adjustments in the estimated holdback liability due to forfeitures are recognized in net sales. Payments are made to dealers or distributors at various times during the year subject to previously established criteria. |
Shipping and Handling Costs | Shipping and handling costs. Polaris records shipping and handling costs as a component of cost of sales at the time the product is shipped. |
Research and Development Expenses | Research and development expenses. Polaris records research and development expenses in the period in which they are incurred as a component of operating expenses. |
Advertising Expenses | Advertising expenses. Polaris records advertising expenses as a component of selling and marketing expenses in the period in which they are incurred. |
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. |
Share-Based Employee Compensation | Share-based employee compensation. For purposes of determining the estimated fair value of share-based payment awards on the date of grant under ASC Topic 718, Polaris uses the Black-Scholes Model. The Black-Scholes Model requires the input of certain assumptions that require judgment. Because employee stock options and restricted stock awards have characteristics significantly different from those of traded options, and because changes in the input assumptions can materially affect the fair value estimate, the existing models may not provide a reliable single measure of the fair value of the employee stock options or restricted stock awards. Management will continue to assess the assumptions and methodologies used to calculate estimated fair value of share-based compensation. Circumstances may change and additional data may become available over time, which could result in changes to these assumptions and methodologies and thereby materially impact the fair value determination. If factors change and the Company employs different assumptions in the application of Topic 718 in future periods, the compensation expense that was recorded under Topic 718 may differ significantly from what was recorded in the current period. Refer to Note 2 for additional information regarding share-based compensation. The Company estimates the likelihood and the rate of achievement for performance share-based awards. Changes in the estimated rate of achievement and fluctuation in the market based stock price can have a significant effect on reported share-based compensation expenses as the effect of a change in the estimated achievement level and fluctuation in the market based stock price is recognized in the period that the likelihood factor and stock price changes. If adjustments in the estimated rate of achievement and fluctuation in the market based stock price are made, they would be reflected in gross margin and operating expenses. |
Derivative Instruments and Hedging Activities | Derivative instruments and hedging activities. Changes in the fair value of a derivative are recognized in earnings unless the derivative qualifies as a hedge. To qualify as a hedge, the Company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting. Polaris enters into foreign exchange contracts to manage currency exposures from certain of its purchase commitments denominated in foreign currencies and transfers of funds from time to time from its foreign subsidiaries. Polaris does not use any financial contracts for trading purposes. These contracts met the criteria for cash flow hedges. Gains and losses on the Canadian dollar, Norwegian krone, Swedish krona and Australian dollar contracts at settlement are recorded in non-operating other expense (income), net in the consolidated income statements, and gains and losses on the Japanese yen, Mexican peso and Euro contracts at settlement are recorded in cost of sales in the consolidated income statements. Unrealized gains and losses are recorded as a component of accumulated other comprehensive loss, net. Polaris is subject to market risk from fluctuating market prices of certain purchased commodity raw materials, including steel, aluminum, diesel fuel, and petroleum-based resins. In addition, the Company purchases components and parts containing various commodities, including steel, aluminum, rubber, rare earth metals and others which are integrated into the Company’s end products. While such materials are typically available from numerous suppliers, commodity raw materials are subject to price fluctuations. The Company generally buys these commodities and components based upon market prices that are established with the vendor as part of the purchase process. From time to time, Polaris utilizes derivative contracts to hedge a portion of the exposure to commodity risks. During 2015 and 2014 , the Company entered into derivative contracts to hedge a portion of the exposure for diesel fuel and aluminum. The Company's diesel fuel and aluminum hedging contracts do not meet the criteria for hedge accounting and therefore, the resulting unrealized gains and losses from those contracts are included in the consolidated statements of income in cost of sales. Refer to Note 11 for additional information regarding derivative instruments and hedging activities. The gross unrealized gains and losses of these contracts are recorded in the accompanying balance sheets as other current assets or other current liabilities. |
Foreign Currency Translation | Foreign currency translation. The functional currency for each of the Polaris foreign subsidiaries is their respective local currencies. The assets and liabilities in all Polaris foreign entities are translated at the foreign exchange rate in effect at the balance sheet date. Translation gains and losses are reflected as a component of accumulated other comprehensive loss in the shareholders’ equity section of the accompanying consolidated balance sheets. Revenues and expenses in all of Polaris’ foreign entities are translated at the average foreign exchange rate in effect for each month of the quarter. Transaction gains and losses including intercompany transactions denominated in a currency other than the functional currency of the entity involved are included in other expense (income), net in our consolidated statements of income. |
Comprehensive Income | Comprehensive income. Components of comprehensive income include net income, foreign currency translation adjustments, and unrealized gains or losses on derivative instruments. The Company has chosen to disclose comprehensive income in separate consolidated statements of comprehensive income. |
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 was issued in August 2015 and defers the effective date) 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. Balance Sheet Classification of Deferred Taxes . In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes . This ASU requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The amendment is effective for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. Entities are permitted to apply the amendments either prospectively or retrospectively. The Company has elected to early adopt for the annual period ended December 31, 2015, and will apply the amendments prospectively. The adoption of ASU No. 2015-17 does not impact the Company's consolidated financial statements other than the change in presentation of deferred tax assets and liabilities within its consolidated balance sheets. Refer to Note 6 for additional information regarding deferred taxes. There are no other new accounting pronouncements that are expected to have a significant impact on Polaris' consolidated financial statements. |
Organization and Significant 26
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of December 31, 2015 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48,238 $ 48,238 — — Foreign exchange contracts, net 2,767 — $ 2,767 — Interest rate swap contracts 186 — 186 — Total assets at fair value $ 51,191 $ 48,238 $ 2,953 — Commodity contracts, net $ (354 ) — $ (354 ) — Non-qualified deferred compensation liabilities (48,238 ) $ (48,238 ) — — Total liabilities at fair value $ (48,592 ) $ (48,238 ) $ (354 ) — 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 | 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): December 31, 2015 December 31, 2014 Raw materials and purchased components $ 167,569 $ 165,823 Service parts, garments and accessories 189,731 163,455 Finished goods 388,970 262,578 Less: reserves (36,269 ) (26,171 ) Inventories $ 710,001 $ 565,685 |
Schedule of activity in the warranty reserve | The activity in the warranty reserve during the periods presented was as follows (in thousands): For the Years Ended December 31, 2015 2014 2013 Balance at beginning of year $ 53,104 $ 52,818 $ 47,723 Additions to warranty reserve through acquisitions 250 160 1,602 Additions charged to expense 73,716 61,888 56,857 Warranty claims paid (70,596 ) (61,762 ) (53,364 ) Balance at end of year $ 56,474 $ 53,104 $ 52,818 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 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): For the Years Ended December 31, 2015 2014 2013 Option plan $ 26,191 $ 24,428 $ 22,245 Other share-based awards 23,275 26,574 57,640 Total share-based compensation before tax 49,466 51,002 79,885 Tax benefit 18,451 19,039 29,835 Total share-based compensation expense included in net income $ 31,015 $ 31,963 $ 50,050 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following summarizes stock option activity and the weighted average exercise price for the following plans for the each of the three years ended December 31, 2015 , 2014 and 2013 : Omnibus Plan Option Plan Director Stock Option Plan Outstanding Weighted Outstanding Weighted Outstanding Weighted Balance as of December 31, 2012 4,330,410 $ 35.50 353,572 $ 23.47 16,000 $ 27.10 Granted 1,037,729 87.06 — — — — Exercised (821,679 ) 24.45 (191,141 ) 23.23 (16,000 ) 27.10 Forfeited (80,380 ) 47.55 — — — — Balance as of December 31, 2013 4,466,080 $ 49.29 162,431 $ 23.74 — — Granted 705,564 130.10 — — — — Exercised (866,917 ) 30.33 (96,398 ) 23.77 — — Forfeited (98,215 ) 65.14 (2,800 ) 22.43 — — Balance as of December 31, 2014 4,206,512 $ 66.38 63,233 $ 23.76 — — Granted 743,062 150.81 — — — — Exercised (706,750 ) 40.21 (44,283 ) 23.92 — — Forfeited (137,285 ) 112.95 — — — — Balance as of December 31, 2015 4,105,539 $ 84.61 18,950 $ 23.37 — — Vested or expected to vest as of December 31, 2015 4,105,539 $ 84.61 18,950 $ 23.37 — — Options exercisable as of December 31, 2015 1,990,346 $ 48.05 18,950 $ 23.37 — — |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following assumptions were used to estimate the weighted average fair value of options of $37.64 , $39.97 and $30.43 granted during the years ended December 31, 2015 , 2014 and 2013 , respectively: For the Years Ended December 31, 2015 2014 2013 Weighted-average volatility 32 % 40 % 49 % Expected dividend yield 1.4 % 1.5 % 1.9 % Expected term (in years) 4.5 4.5 4.4 Weighted average risk free interest rate 1.5 % 1.6 % 0.9 % |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table summarizes restricted stock activity for the year ended December 31, 2015 : Shares Weighted Balance as of December 31, 2014 1,077,731 $ 98.15 Granted 476,556 139.50 Vested (358,966 ) 72.56 Canceled/Forfeited (64,554 ) 126.64 Balance as of December 31, 2015 1,130,767 $ 122.08 Expected to vest as of December 31, 2015 765,271 $ 121.25 |
Financing (Tables)
Financing (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Debt and capital lease obligations and the average related interest rates were as follows (in thousands): Average interest rate at December 31, 2015 Maturity December 31, 2015 December 31, 2014 Revolving loan facility 1.07% March 2020 $ 225,707 — 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 5.00% Various through 2029 21,874 26,148 Notes payable and other 3.50% June 2027 15,698 — Total debt, capital lease obligations, and notes payable $ 463,279 $ 226,148 Less: current maturities 5,059 2,528 Total long-term debt, capital lease obligations, and notes payable $ 458,220 $ 223,620 |
Summary of Activity Under Credit Arrangements, Excluding Acquired Borrowings | The following summarizes activity under Polaris’ credit arrangements (dollars in thousands): 2015 2014 2013 Total borrowings at December 31 $ 425,707 $ 200,000 $ 280,500 Average outstanding borrowings during year $ 403,097 $ 361,715 $ 138,400 Maximum outstanding borrowings during year $ 523,097 $ 500,000 $ 411,000 Interest rate at December 31 2.33 % 3.77 % 2.98 % |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2015 and 2014 are as follows (in thousands): 2015 2014 Balance as of beginning of year $ 123,031 $ 126,697 Goodwill from businesses acquired 17,010 7,456 Currency translation effect on foreign goodwill balances (9,027 ) (11,122 ) Balance as of end of year $ 131,014 $ 123,031 |
Schedule of other intangible assets, changes in net carrying amount | For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2015 and 2014 are as follows (in thousands): 2015 2014 Gross Accumulated Gross Accumulated Other intangible assets, beginning $ 124,093 $ (23,158 ) $ 116,279 $ (13,268 ) Intangible assets acquired during the period 20,779 — 16,050 — Amortization expense — (12,136 ) — (11,599 ) Currency translation effect on foreign balances (6,041 ) 1,566 (8,236 ) 1,709 Other intangible assets, ending $ 138,831 $ (33,728 ) $ 124,093 $ (23,158 ) |
Schedule of components of other intangible assets | The components of other intangible assets were as follows (in thousands): December 31, 2015 Estimated Life Gross Carrying Accumulated Net Non-compete agreements 5 $ 540 $ (401 ) $ 139 Dealer/customer related 7 67,079 (24,069 ) 43,010 Developed technology 5-7 19,261 (9,258 ) 10,003 Total amortizable 86,880 (33,728 ) 53,152 Non-amortizable—brand/trade names 51,951 — 51,951 Total other intangible assets, net $ 138,831 $ (33,728 ) $ 105,103 December 31, 2014 Estimated Life Gross Carrying Accumulated Net Non-compete agreements 5 $ 540 $ (293 ) $ 247 Dealer/customer related 7 62,758 (16,361 ) 46,397 Developed technology 5-7 14,571 (6,504 ) 8,067 Total amortizable 77,869 (23,158 ) 54,711 Non-amortizable—brand/trade names 46,224 — 46,224 Total other intangible assets, net $ 124,093 $ (23,158 ) $ 100,935 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Before Income Taxes | Polaris’ income from continuing operations before income taxes was generated from its United States and foreign operations as follows (in thousands): For the Years Ended December 31, 2015 2014 2013 United States $ 640,604 $ 666,323 $ 535,265 Foreign 45,133 32,994 39,164 Income from continuing operations before income taxes $ 685,737 $ 699,317 $ 574,429 |
Components of Provision for Income Taxes | Components of Polaris’ provision for income taxes for continuing operations are as follows (in thousands): For the Years Ended December 31, 2015 2014 2013 Current: Federal $ 211,017 $ 255,299 $ 167,690 State 16,609 20,438 12,942 Foreign 20,733 21,584 15,457 Deferred (17,983 ) (52,033 ) (2,729 ) Total provision for income taxes for continuing operations $ 230,376 $ 245,288 $ 193,360 |
Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate | Reconciliation of the Federal statutory income tax rate to the effective tax rate is as follows: For the Years Ended December 31, 2015 2014 2013 Federal statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 1.5 1.5 1.5 Domestic manufacturing deduction (0.8 ) (1.1 ) (1.0 ) Research and development tax credit (3.1 ) (1.1 ) (2.2 ) Valuation allowance for foreign subsidiaries net operating losses 0.2 — 0.3 Other permanent differences 0.8 0.8 0.1 Effective income tax rate for continuing operations 33.6 % 35.1 % 33.7 % |
Net Deferred Income Taxes | The net deferred income taxes consist of the following (in thousands): December 31, 2015 2014 Current deferred income taxes: Inventories — $ 9,034 Accrued expenses — 104,279 Derivative instruments — 864 Total current — 114,177 Noncurrent deferred income taxes: Inventories $ 10,047 — Accrued expenses 107,767 — Derivative instruments (1,112 ) — Cost in excess of net assets of business acquired (7,956 ) (13,111 ) Property and equipment (28,853 ) (28,921 ) Compensation payable in common stock 67,222 58,446 Net operating loss carryforwards and impairments 12,374 12,693 Valuation allowance (6,684 ) (6,097 ) Total noncurrent 152,805 23,010 Total net deferred income tax asset $ 152,805 $ 137,187 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): For the Years Ended December 31, 2015 2014 Balance at January 1, $ 9,836 $ 13,199 Gross increases for tax positions of prior years 9,683 55 Gross increases for tax positions of current year 4,961 1,456 Decreases due to settlements and other prior year tax positions (178 ) (2,346 ) Decreases for lapse of statute of limitations (1,364 ) (1,586 ) Currency translation effect on foreign balances (429 ) (942 ) Balance at December 31, 22,509 9,836 Reserves related to potential interest at December 31, 907 732 Unrecognized tax benefits at December 31, $ 23,416 $ 10,568 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Shareholders Equity [Abstract] | |
Schedule of cash dividends declared per common share | ash dividends declared per common share for the year ended December 31, 2015 and 2014 were as follows: For the Years Ended December 31, 2015 2014 Quarterly dividend declared and paid per common share $ 0.53 $ 0.48 Total dividends declared and paid per common share $ 2.12 $ 1.92 |
Schedule of reconciliation of weighted average number of shares | A reconciliation of these amounts is as follows (in thousands): For the Years Ended December 31, 2015 2014 2013 Weighted average number of common shares outstanding 65,719 65,904 68,209 Director Plan and deferred stock units 210 196 242 ESOP 91 75 84 Common shares outstanding—basic 66,020 66,175 68,535 Dilutive effect of restricted stock awards 255 359 228 Dilutive effect of stock option awards 1,209 1,695 1,783 Common and potential common shares outstanding—diluted 67,484 68,229 70,546 |
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 — (3,850 ) (3,850 ) Change in fair value (38,571 ) 7,170 (31,401 ) Balance as of December 31, 2015 $ (64,360 ) $ 1,868 $ (62,492 ) |
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 year ended December 31, 2015 and 2014 (in thousands): Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Reclassified from Accumulated OCI into Income For the Years Ended December 31, 2015 2014 Foreign currency contracts Other expense, net $ (8,399 ) $ (5,641 ) Foreign currency contracts Cost of sales 4,549 172 Total $ (3,850 ) $ (5,469 ) |
Financial Services Arrangemen32
Financial Services Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Financial Services Arrangements [Abstract] | |
Financial Information for Polaris Acceptance Reflecting the Effects of Securitization Facility | Summarized financial information for Polaris Acceptance reflecting the effects of the Securitization Facility is presented as follows (in thousands): For the Years Ended December 31, 2015 2014 2013 Revenues $ 63,548 $ 40,968 $ 13,010 Interest and operating expenses 4,738 3,678 3,044 Net income $ 58,810 $ 37,290 $ 9,966 As of December 31, 2015 2014 Finance receivables, net $ 472,029 $ 337,088 Other assets 124 122 Total Assets $ 472,153 $ 337,210 Notes payable $ 269,881 $ 155,436 Other liabilities 4,126 3,560 Partners’ capital 198,146 178,214 Total Liabilities and Partners’ Capital $ 472,153 $ 337,210 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Annual Lease Payments under Capital and Operating Leases with Non-cancelable Terms in Excess of One Year | Future minimum annual lease payments under capital and operating leases with noncancelable terms in excess of one year as of December 31, 2015 , are as follows (in thousands): Capital Operating 2016 $ 3,045 $ 13,736 2017 2,543 8,525 2018 2,070 6,906 2019 1,886 5,053 2020 1,796 3,229 Thereafter 15,545 1,928 Total future minimum lease obligation $ 26,885 $ 39,377 |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of open foreign currency contracts | At December 31, 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 $ 20,336 $ (69 ) Canadian Dollar 81,747 5,062 Japanese Yen 10,066 110 Mexican Peso 32,857 (2,336 ) Total $ 145,006 $ 2,767 |
Schedule of carrying values of derivative instruments | The table below summarizes the carrying values of derivative instruments as of December 31, 2015 and 2014 (in thousands): Carrying Values of Derivative Instruments as of December 31, 2015 Fair Value— Assets Fair Value— (Liabilities) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts(1) $ 5,218 $ (2,451 ) $ 2,767 Interest rate swap contracts(1) 186 — 186 Total derivatives designated as hedging instruments $ 5,404 $ (2,451 ) $ 2,953 Commodity contracts(1) — $ (354 ) $ (354 ) Total derivatives not designated as hedging instruments — $ (354 ) $ (354 ) Total derivatives $ 5,404 $ (2,805 ) $ 2,599 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. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Accordingly, the segment information presented below is limited to sales and gross profit data. For the Years Ended December 31, ($ in thousands) 2015 2014 2013 Sales ORV/Snowmobiles $ 3,708,933 $ 3,741,154 $ 3,255,033 Motorcycles 698,257 418,546 263,443 Global Adjacent Markets 312,100 319,948 258,592 Total sales 4,719,290 4,479,648 3,777,068 Gross profit ORV/Snowmobiles 1,190,630 1,206,553 1,049,794 Motorcycles 97,261 54,427 48,208 Global Adjacent Markets 84,211 88,797 63,934 Corporate (33,060 ) (30,599 ) (41,057 ) Total gross profit $ 1,339,042 $ 1,319,178 $ 1,120,879 |
Polaris' Foreign Operations | Sales to external customers based on the location of the customer and property and equipment, net, by geography are presented in the tables below (in thousands): For the Years Ended December 31, 2015 2014 2013 United States $ 3,688,980 $ 3,339,905 $ 2,721,300 Canada 378,725 454,608 463,316 Other foreign countries 651,585 685,135 592,452 Consolidated sales $ 4,719,290 $ 4,479,648 $ 3,777,068 As of December 31, 2015 2014 United States $ 548,410 $ 432,614 Mexico 39,542 49,064 Other foreign countries 62,726 73,750 Consolidated property and equipment, net $ 650,678 $ 555,428 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | Sales Gross profit Net income Diluted net income per share (In thousands, except per share data) 2015 First Quarter $ 1,033,345 $ 293,731 $ 88,563 $ 1.30 Second Quarter 1,124,327 319,414 100,943 1.49 Third Quarter 1,456,000 415,623 155,173 2.30 Fourth Quarter 1,105,618 310,274 110,682 1.66 Totals $ 4,719,290 $ 1,339,042 $ 455,361 $ 6.75 2014 First Quarter $ 888,346 $ 258,417 $ 80,901 $ 1.19 Second Quarter 1,013,959 304,914 96,905 1.42 Third Quarter 1,302,343 388,274 140,826 2.06 Fourth Quarter 1,275,000 367,573 135,397 1.98 Totals $ 4,479,648 $ 1,319,178 $ 454,029 $ 6.65 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation assets | $ 48,238 | $ 41,797 |
Foreign exchange contracts, net | 2,767 | |
Interest rate swap contracts | 186 | |
Total assets at fair value | 51,191 | 41,797 |
Commodity contracts, net | (354) | (4,609) |
Foreign exchange contracts, net | (2,570) | |
Non-qualified deferred compensation liabilities | (48,238) | (41,797) |
Total liabilities at fair value | (48,592) | (48,976) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation assets | 48,238 | 41,797 |
Foreign exchange contracts, net | 0 | |
Interest rate swap contracts | 0 | |
Total assets at fair value | 48,238 | 41,797 |
Commodity contracts, net | 0 | 0 |
Foreign exchange contracts, net | 0 | |
Non-qualified deferred compensation liabilities | (48,238) | (41,797) |
Total liabilities at fair value | (48,238) | (41,797) |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation assets | 0 | 0 |
Foreign exchange contracts, net | 2,767 | |
Interest rate swap contracts | 186 | |
Total assets at fair value | 2,953 | 0 |
Commodity contracts, net | (354) | (4,609) |
Foreign exchange contracts, net | (2,570) | |
Non-qualified deferred compensation liabilities | 0 | 0 |
Total liabilities at fair value | (354) | (7,179) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation assets | 0 | 0 |
Foreign exchange contracts, net | 0 | |
Interest rate swap contracts | 0 | |
Total assets at fair value | 0 | 0 |
Commodity contracts, net | 0 | 0 |
Foreign exchange contracts, net | 0 | |
Non-qualified deferred compensation liabilities | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 |
Major Components of Inventories
Major Components of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Raw materials and purchased components | $ 167,569 | $ 165,823 |
Service parts, garments and accessories | 189,731 | 163,455 |
Finished goods | 388,970 | 262,578 |
Less: reserves | (36,269) | (26,171) |
Inventories | $ 710,001 | $ 565,685 |
Organization and Significant 39
Organization and Significant Accounting Policies Activity in Polaris Accrued Warranty Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Activity in Product Warranty Reserve [Roll Forward] | |||
Balance at beginning of period | $ 53,104 | $ 52,818 | $ 47,723 |
Additions to warranty reserve through acquisitions | 250 | 160 | 1,602 |
Additions charged to expense | 73,716 | 61,888 | 56,857 |
Warranty claims paid | (70,596) | (61,762) | (53,364) |
Balance at end of period | $ 56,474 | $ 53,104 | $ 52,818 |
Organization and Significant 40
Organization and Significant Accounting Policies Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Advertising expenses | $ 80,090 | $ 82,600 | $ 73,945 |
ORVs | |||
Property, Plant and Equipment [Line Items] | |||
Period of warranties provided by Polaris | 6 years | ||
Snowmobiles | |||
Property, Plant and Equipment [Line Items] | |||
Period of warranties provided by Polaris | 1 year | ||
SVs | |||
Property, Plant and Equipment [Line Items] | |||
Period of warranties provided by Polaris | 2 years | ||
Minimum | Motorcycles | |||
Property, Plant and Equipment [Line Items] | |||
Period of warranties provided by Polaris | 1 year | ||
Minimum | Building and Building Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful life | 10 years | ||
Minimum | Machinery Equipment And Production Tooling | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful life | 1 year | ||
Maximum | Motorcycles | |||
Property, Plant and Equipment [Line Items] | |||
Period of warranties provided by Polaris | 2 years | ||
Maximum | Building and Building Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful life | 40 years | ||
Maximum | Machinery Equipment And Production Tooling | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful life | 7 years | ||
Polaris Acceptance | |||
Property, Plant and Equipment [Line Items] | |||
Equity method investment ownership percentage | 50.00% |
Share-Based Compensation Expens
Share-Based Compensation Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Option plan | $ 26,191 | $ 24,428 | $ 22,245 |
Other share-based awards | 23,275 | 26,574 | 57,640 |
Total share-based compensation before tax | 49,466 | 51,002 | 79,885 |
Tax benefit | 18,451 | 19,039 | 29,835 |
Total share-based compensation expense included in net income | $ 31,015 | $ 31,963 | $ 50,050 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 29 days | ||
Unrecognized compensation cost related to unvested share-based equity awards | $ 90,990 | ||
Weighted average period of recognition of unvested share-based equity awards (in years) | 1 year 7 months 15 days | ||
Unrecognized compensation cost related to unvested share-based equity awards, Stock Options | $ 36,622 | ||
Unrecognized compensation cost related to unvested share-based equity awards, Restricted Stock | $ 54,368 | ||
Weighted average remaining contractual life of option outstanding | 6 years 6 months 27 days | ||
Estimated weighted average fair value of options granted | $ 37.64 | $ 39.97 | $ 30.43 |
Total intrinsic value of options exercised | $ 77,951 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 82,276 | ||
Total intrinsic value of options outstanding and exercisable | $ 77,110 | ||
Omnibus Incentive Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option awards granted, vesting period | 2 years | ||
Omnibus Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option awards granted, vesting period | 4 years | ||
Omnibus Incentive Plan | Deferred Stock Units | Non-employee directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock shares granted | 8,000 | 9,000 | 12,000 |
Omnibus Incentive Plan | Deferred Stock Units | Non-employee directors | Since 2007 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock shares granted | 146,000 | ||
Stock Option Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock shares granted | 743,062 | 705,564 | 1,037,729 |
Stock Option Plans | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option awards granted, vesting period | 3 years | ||
Stock Option Plans | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option awards granted, expiration period | 10 years | ||
Directors Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares authorized for issuance | 500,000 | ||
Shares of common stock earned | 107,000 | ||
Additional shares issued to retired directors | 383,000 | ||
Liabilities under share plan | $ 9,167 | $ 15,217 | |
Long Term Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Liabilities under share plan | 0 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of restricted stock expected to vest | $ 65,775 | ||
Weighted average fair values at the grant dates of grants awarded | $ 139.50 | $ 134.34 | $ 88.84 |
Stock Option Activity and Weigh
Stock Option Activity and Weighted Average Exercise Price (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Outstanding Shares | |||
Forfeited | 0 | ||
Stock Option Plans | |||
Outstanding Shares | |||
Beginning Balance | 4,206,512 | 4,466,080 | 4,330,410 |
Granted | 743,062 | 705,564 | 1,037,729 |
Exercised | (706,750) | (866,917) | (821,679) |
Forfeited | (137,285) | (98,215) | (80,380) |
Ending Balance | 4,105,539 | 4,206,512 | 4,466,080 |
Vested or expected to vest at end of period | 4,105,539 | ||
Options exercisable at end of period | 1,990,346 | ||
Weighted-Average Exercise Price | |||
Beginning Balance | $ 66.38 | $ 49.29 | $ 35.50 |
Granted | 150.81 | 130.10 | 87.06 |
Exercised | 40.21 | 30.33 | 24.45 |
Forfeited | 112.95 | 65.14 | 47.55 |
Ending Balance | 84.61 | $ 66.38 | $ 49.29 |
Vested or expected to vest at end of period | 84.61 | ||
Options exercisable at end of period | $ 48.05 | ||
Omnibus Incentive Plan | |||
Outstanding Shares | |||
Beginning Balance | 63,233 | 162,431 | 353,572 |
Exercised | (44,283) | (96,398) | (191,141) |
Forfeited | (2,800) | ||
Ending Balance | 18,950 | 63,233 | 162,431 |
Vested or expected to vest at end of period | 18,950 | ||
Options exercisable at end of period | 18,950 | ||
Weighted-Average Exercise Price | |||
Beginning Balance | $ 23.76 | $ 23.74 | $ 23.47 |
Exercised | 23.92 | 23.77 | 23.23 |
Forfeited | 0 | 22.43 | |
Ending Balance | 23.37 | $ 23.76 | $ 23.74 |
Vested or expected to vest at end of period | 23.37 | ||
Options exercisable at end of period | $ 23.37 | ||
Non Employee Directors, Plan | |||
Outstanding Shares | |||
Beginning Balance | 0 | 0 | 16,000 |
Exercised | 0 | 0 | (16,000) |
Forfeited | 0 | ||
Ending Balance | 0 | 0 | |
Weighted-Average Exercise Price | |||
Beginning Balance | $ 0 | $ 0 | $ 27.10 |
Exercised | $ 0 | 0 | 27.10 |
Forfeited | 0 | ||
Ending Balance | $ 0 | $ 0 |
Assumptions Used to Estimate We
Assumptions Used to Estimate Weighted Average Fair Value of Options (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted-average volatility | 32.00% | 40.00% | 49.00% |
Expected dividend yield | 1.40% | 1.50% | 1.90% |
Expected term (in years) | 4 years 6 months | 4 years 6 months | 4 years 5 months |
Weighted average risk free interest rate | 1.50% | 1.60% | 0.90% |
Summary of Restricted Stock Act
Summary of Restricted Stock Activity (Detail) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares Outstanding | |||
Beginning Balance | 1,077,731 | ||
Granted | 476,556 | ||
Vested | (358,966) | ||
Canceled/Forfeited | (64,554) | ||
Ending Balance | 1,130,767 | 1,077,731 | |
Expected to vest as of end of period | 765,271 | ||
Weighted Average Grant Price | |||
Beginning Balance | $ 98.15 | ||
Granted | 139.50 | $ 134.34 | $ 88.84 |
Vested | 72.56 | ||
Canceled/Forfeited | 126.64 | ||
Ending Balance | 122.08 | $ 98.15 | |
Expected to vest as of end of period | $ 121.25 |
Employee Savings Plans - Additi
Employee Savings Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expenses related ESOP | $ 7,455 | $ 10,789 | $ 9,224 |
Shares vested under ESOP | 3,847,000 | ||
Matching percentage of employer to employee contributions | 100.00% | ||
Matching contributions to 401(k) retirement savings plan | $ 14,178 | 12,486 | $ 10,651 |
Temporary Equity, Shares Issued | 112,215 | ||
Deferred compensation | $ 9,645 | 13,528 | |
Temporary Equity, Other Changes | 10,372 | ||
Temporary Equity, Accretion to Redemption Value, Adjustment | $ (727) | ||
Employee Stock Ownership Plan E S O P Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Maximum number of shares of common stock available for issuance | 7,200,000 | ||
Fair value, measurements, recurring | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Assets, fair value disclosure | $ 51,191 | 41,797 | |
Level 1 | Fair value, measurements, recurring | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Assets, fair value disclosure | 48,238 | 41,797 | |
Level 1 | Fair value, measurements, recurring | Non-qualified deferred compensation assets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Assets, fair value disclosure | $ 48,238 | $ 41,797 |
Financing Agreement Debt Instru
Financing Agreement Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 425,707 | $ 200,000 | $ 280,500 |
Total debt, capital lease obligations, and notes payable | 463,279 | 226,148 | |
Less: current maturities | 5,059 | 2,528 | |
Total long-term debt, capital lease obligations, and notes payable | $ 458,220 | 223,620 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Average interest rate | 1.07% | ||
Long-term debt | $ 225,707 | 0 | |
Senior Notes | Senior Unsecured Notes, 3.81 Percent, Due May 2018 | |||
Debt Instrument [Line Items] | |||
Average interest rate | 3.81% | ||
Long-term debt | $ 25,000 | 25,000 | |
Senior Notes | Senior Unsecured Notes, 4.60 Percent, Due May 2021 | |||
Debt Instrument [Line Items] | |||
Average interest rate | 4.60% | ||
Long-term debt | $ 75,000 | 75,000 | |
Senior Notes | Senior Unsecured Notes 3.13 Percent Due December 2020 | |||
Debt Instrument [Line Items] | |||
Average interest rate | 3.13% | ||
Long-term debt | $ 100,000 | 100,000 | |
Capital lease obligations | |||
Debt Instrument [Line Items] | |||
Average interest rate | 5.00% | ||
Capital lease obligations | $ 21,874 | 26,148 | |
Notes payable | Notes Payable 3.50 Percent Due June 2027 | |||
Debt Instrument [Line Items] | |||
Average interest rate | 3.50% | ||
Long-term debt | $ 15,698 | $ 0 |
Summary of Activity Under Credi
Summary of Activity Under Credit Arrangements, Excluding Acquired Borrowings (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | |||
Total borrowings at December 31 | $ 425,707 | $ 200,000 | $ 280,500 |
Average outstanding borrowings during year | 403,097 | 361,715 | 138,400 |
Maximum outstanding borrowings during year | $ 523,097 | $ 500,000 | $ 411,000 |
Interest rate at December 31 | 2.33% | 3.77% | 2.98% |
Financing - Additional Informat
Financing - Additional Information (Detail) ft² in Thousands | 1 Months Ended | |||||||
Dec. 31, 2013USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Feb. 28, 2015USD ($) | Jan. 09, 2015ft² | Dec. 31, 2014USD ($) | Aug. 31, 2011USD ($) | |
Line of Credit Facility [Line Items] | ||||||||
Revolving loan facility, maximum capacity | $ 350,000,000 | |||||||
Letter of credit outstanding | $ 21,563,000 | |||||||
Debt outstanding from dealers | 1,562,014,000 | |||||||
Area of Real Estate Property | ft² | 725 | |||||||
Long-term debt | $ 280,500,000 | $ 425,707,000 | $ 200,000,000 | |||||
Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Aggregate repurchase obligation | 15.00% | |||||||
Master Notes | Senior Unsecured Notes, 3.81 Percent, Due May 2018 | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Issuance of senior notes | $ 25,000,000 | |||||||
Maturity date | 5/31/2018 | |||||||
Master Notes | Senior Unsecured Notes, 4.60 Percent, Due May 2021 | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Issuance of senior notes | $ 75,000,000 | |||||||
Maturity date | 5/31/2021 | |||||||
Master Notes | Senior Unsecured Notes 3.13 Percent Due December 2020 | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Issuance of senior notes | $ 100,000,000 | |||||||
Maturity date | 12/31/2020 | |||||||
Notes Payable to Banks [Member] | Mortgages [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Long-term debt | $ 14,500,000 | |||||||
Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving loan facility, maximum capacity | $ 500,000,000 |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Balance as of beginning of year | $ 123,031 | $ 126,697 |
Goodwill from businesses acquired | 17,010 | 7,456 |
Currency translation effect on foreign goodwill balances | (9,027) | (11,122) |
Balance as of end of year | $ 131,014 | $ 123,031 |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets Other Intangible Assets, Changes in Net Carrying Amount (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Intangible Assets, Gross Amount [Roll Forward] | ||
Other intangible assets, beginning | $ 124,093 | $ 116,279 |
Intangible assets acquired during the period | 20,779 | 16,050 |
Currency translation effect on foreign balances | (6,041) | (8,236) |
Other intangible assets, ending | 138,831 | 124,093 |
Other Intangible Assets, Accumulated Amortization [Roll Forward] | ||
Other intangible assets, beginning | (23,158) | (13,268) |
Amortization expense | (12,136) | (11,599) |
Currency translation effect on foreign balances | 1,566 | 1,709 |
Other intangible assets, ending | $ (33,728) | $ (23,158) |
Components of Other Intangible
Components of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets by Major Class [Line Items] | |||
Amortizable, Gross Carrying Amount | $ 86,880 | $ 77,869 | |
Accumulated Amortization | (33,728) | (23,158) | $ (13,268) |
Amortizable, Net | 53,152 | 54,711 | |
Total other intangible assets, Gross Carrying Amount | 138,831 | 124,093 | $ 116,279 |
Total other intangible assets, net | $ 105,103 | $ 100,935 | |
Non-compete agreements | |||
Intangible Assets by Major Class [Line Items] | |||
Total Estimated Life (years) | 5 years | 5 years | |
Amortizable, Gross Carrying Amount | $ 540 | $ 540 | |
Accumulated Amortization | (401) | (293) | |
Amortizable, Net | $ 139 | $ 247 | |
Dealer/customer related | |||
Intangible Assets by Major Class [Line Items] | |||
Total Estimated Life (years) | 7 years | 7 years | |
Amortizable, Gross Carrying Amount | $ 67,079 | $ 62,758 | |
Accumulated Amortization | (24,069) | (16,361) | |
Amortizable, Net | 43,010 | 46,397 | |
Developed technology | |||
Intangible Assets by Major Class [Line Items] | |||
Amortizable, Gross Carrying Amount | 19,261 | 14,571 | |
Accumulated Amortization | (9,258) | (6,504) | |
Amortizable, Net | $ 10,003 | $ 8,067 | |
Developed technology | Minimum | |||
Intangible Assets by Major Class [Line Items] | |||
Total Estimated Life (years) | 5 years | 5 years | |
Developed technology | Maximum | |||
Intangible Assets by Major Class [Line Items] | |||
Total Estimated Life (years) | 7 years | 7 years | |
Non-amortizable—brand/trade names | |||
Intangible Assets by Major Class [Line Items] | |||
Non-amortizable, Gross Carrying Amount | $ 51,951 | $ 46,224 | |
Non-amortizable, Net | $ 51,951 | $ 46,224 |
Goodwill and Other Intangible53
Goodwill and Other Intangible Assets Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 131,014 | $ 123,031 | $ 126,697 |
Total other intangible assets, net | 105,103 | 100,935 | |
Amortization expense of intangible assets | 12,136 | $ 11,599 | |
Estimated Future Amortization Expense by Fiscal Year [Abstract] | |||
2,015 | 13,000 | ||
2,016 | 13,000 | ||
2,017 | 10,800 | ||
2,018 | 9,200 | ||
2,019 | 4,400 | ||
After 2,019 | $ 2,800 |
Income Before Income Taxes (Det
Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 640,604 | $ 666,323 | $ 535,265 |
Foreign | 45,133 | 32,994 | 39,164 |
Income before income taxes | $ 685,737 | $ 699,317 | $ 574,429 |
Components of Provision for Inc
Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 211,017 | $ 255,299 | $ 167,690 |
State | 16,609 | 20,438 | 12,942 |
Foreign | 20,733 | 21,584 | 15,457 |
Deferred | (17,983) | (52,033) | (2,729) |
Total provision for income taxes for continuing operations | $ 230,376 | $ 245,288 | $ 193,360 |
Reconciliation of Federal Statu
Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 1.50% | 1.50% | 1.50% |
Domestic manufacturing deduction | (0.80%) | (1.10%) | (1.00%) |
Research and development tax credit | (3.10%) | (1.10%) | (2.20%) |
Valuation allowance for foreign subsidiaries net operating losses | 0.20% | 0.00% | 0.30% |
Other permanent differences | 0.80% | 0.80% | 0.10% |
Effective income tax rate for continuing operations | 33.60% | 35.10% | 33.70% |
Net Deferred Income Taxes (Deta
Net Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current deferred income taxes: | ||
Inventories | $ 0 | $ 9,034 |
Accrued expenses | 0 | 104,279 |
Derivative instruments | 0 | 864 |
Total current | 0 | 114,177 |
Noncurrent deferred income taxes: | ||
Inventories | 10,047 | 0 |
Accrued expenses | 107,767 | 0 |
Derivative instruments | (1,112) | 0 |
Cost in excess of net assets of business acquired | (7,956) | (13,111) |
Property and equipment | (28,853) | (28,921) |
Compensation payable in common stock | 67,222 | 58,446 |
Net operating loss carryforwards and impairments | 12,374 | 12,693 |
Valuation allowance | (6,684) | (6,097) |
Total noncurrent | 152,805 | 23,010 |
Total net deferred income tax asset | $ 152,805 | $ 137,187 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1, | $ 9,836 | $ 13,199 |
Gross increases for tax positions of prior years | 9,683 | 55 |
Gross increases for tax positions of current year | 4,961 | 1,456 |
Decreases due to settlements and other prior year tax positions | (178) | (2,346) |
Decreases for lapse of statute of limitations | (1,364) | (1,586) |
Currency translation effect on foreign balances | (429) | (942) |
Balance at December 31, | 22,509 | 9,836 |
Reserves related to potential interest at December 31, | 907 | 732 |
Unrecognized tax benefits at December 31, | $ 23,416 | $ 10,568 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Undistributed earnings relating to certain non-U.S. subsidiaries | $ 143,284 | $ 105,782 |
Net operating loss carryforwards | $ 38,039 |
Shareholders' Equity Cash Divid
Shareholders' Equity Cash Dividends Declared Per Common Share (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Shareholders Equity [Abstract] | ||||
Quarterly dividend declared and paid per common share | $ 0.53 | $ 0.48 | $ 2.12 | $ 1.92 |
Shareholders' Equity Reconcilia
Shareholders' Equity Reconciliation of Weighted Average Number of Shares (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted Average Number of Shares Outstanding [Line Items] | |||
Weighted average number of common shares outstanding | 65,719 | 65,904 | 68,209 |
Director Plan and deferred stock units | 210 | 196 | 242 |
ESOP | 91 | 75 | 84 |
Common shares outstanding—basic | 66,020 | 66,175 | 68,535 |
Common and potential common shares outstanding—diluted | 67,484 | 68,229 | 70,546 |
Restricted Stock | |||
Weighted Average Number of Shares Outstanding [Line Items] | |||
Dilutive effect of stock awards | 255 | 359 | 228 |
Stock Options [Member] | |||
Weighted Average Number of Shares Outstanding [Line Items] | |||
Dilutive effect of stock awards | 1,209 | 1,695 | 1,783 |
Shareholders' Equity Changes in
Shareholders' Equity Changes in Accumulated Other Comprehensive Income (Loss) Balances (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2014 | $ (27,241) |
Reclassification to the income statement | (3,850) |
Change in fair value | (31,401) |
Balance as of December 31, 2015 | (62,492) |
Foreign currency contracts | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2014 | (25,789) |
Change in fair value | (38,571) |
Balance as of December 31, 2015 | (64,360) |
Cash Flow Hedging | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2014 | (1,452) |
Reclassification to the income statement | (3,850) |
Change in fair value | 7,170 |
Balance as of December 31, 2015 | $ 1,868 |
Shareholders' Equity Gains and
Shareholders' Equity Gains and Losses, Net of Tax Reclassified from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | $ (3,850) | $ (5,469) |
Foreign currency contracts | Other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | (8,399) | (5,641) |
Foreign currency contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | $ 4,549 | $ 172 |
Shareholders' Equity Additional
Shareholders' Equity Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 28, 2016 | Apr. 30, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2000 | Jan. 27, 2016 |
Stockholders Equity Note [Line Items] | |||||||
Cash dividends declared, per share | $ 2.12 | $ 1.92 | $ 1.68 | ||||
Repurchase and retirement of common stock, shares | 2,179,000 | 554,000 | 4,337,000 | ||||
Repurchase and retirement of common stock | $ 293,616 | $ 81,812 | $ 530,033 | ||||
Employee Stock Purchase Plan Number Of Shares Available For Issuance | 3,000,000 | ||||||
Share Based Compensation Arrangements By Share Based Payment Award Percentage Of Market Price At Eligible Employees Granted Options To Purchase Shares | 95.00% | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 1,286,000 | ||||||
Common stock excluded from calculation of diluted earnings per share | 1,001,000 | 581,000 | 23,000 | ||||
Maximum | |||||||
Stockholders Equity Note [Line Items] | |||||||
Number of shares authorized to be repurchased | 75,000,000 | ||||||
Stockholder Rights Plan [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Minimum Percentage Of Ownership Acquired Or To Be Acquired Upon Which Purchase Rights Become Exercisable | 15.00% | ||||||
Common Stock Dividends Right Per Share Declared | 1 | ||||||
Dividends Payable, Date of Record | Jun. 1, 2000 | ||||||
Incentive Stock Purchase Rights Redemption Price Per Right | $ 0.01 | ||||||
Stockholder Rights Plan [Member] | Maximum | |||||||
Stockholders Equity Note [Line Items] | |||||||
Common Stock Price Per Share Under Rights Plan | 125 | ||||||
Stockholder Rights Plan [Member] | Minimum | |||||||
Stockholders Equity Note [Line Items] | |||||||
Common Stock Price Per Share Under Rights Plan | $ 75 | ||||||
Fuji Heavy Industries Ltd. [Member] | |||||||
Stockholders Equity Note [Line Items] | |||||||
Repurchase and retirement of common stock, shares | 3,960,000 | ||||||
Repurchase and retirement of common stock | $ 497,474 | ||||||
Subsequent Event | |||||||
Stockholders Equity Note [Line Items] | |||||||
Cash dividends declared, per share | $ 0.55 | ||||||
Remaining authorized repurchase amount | 2,900,000 |
Financial Information for Polar
Financial Information for Polaris Acceptance Reflecting Effects of Securitization Facility (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Polaris Acceptance | |||
Schedule of Investments [Line Items] | |||
Revenues | $ 63,548 | $ 40,968 | $ 13,010 |
Interest and operating expenses | 4,738 | 3,678 | 3,044 |
Net income | 58,810 | 37,290 | $ 9,966 |
Finance receivables, net | 472,029 | 337,088 | |
Other assets | 124 | 122 | |
Total Assets | 472,153 | 337,210 | |
Notes payable/(receivable) | (269,881) | (155,436) | |
Other liabilities | 4,126 | 3,560 | |
Partners' capital | 198,146 | 178,214 | |
Total Liabilities and Partners' Capital | $ 472,153 | $ 337,210 | |
Maximum | |||
Schedule of Investments [Line Items] | |||
Aggregate repurchase obligation | 15.00% |
Income from Financial Services
Income from Financial Services (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Income from financial services | $ 69,303 | $ 61,667 | $ 45,901 |
Financial Services Arrangemen67
Financial Services Arrangements Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments in and Advances to Affiliates [Line Items] | ||
Investment in finance affiliate | $ 99,073 | $ 89,107 |
Net amount financed for dealers | 1,305,061 | |
Trade receivables, net | 150,778 | $ 204,876 |
Aggregate repurchase obligation, amount | $ 146,440 | |
Maximum | ||
Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation | 15.00% | |
Polaris Acceptance | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity method investment ownership percentage | 50.00% | |
Trade receivables, net | $ 472,029 | |
Securitization Facility | ||
Investments in and Advances to Affiliates [Line Items] | ||
Outstanding balance of receivables | $ 833,032 |
Investment in Other Affiliates
Investment in Other Affiliates (Detail) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | |
Investments in and Advances to Affiliates [Line Items] | ||||
Investment in finance affiliate | $ 99,073 | $ 89,107 | $ 89,107 | |
Payments for (Proceeds from) Investments | 34,727 | |||
Equity in loss of other affiliates | $ (6,802) | (4,124) | $ (2,414) | |
Eicher -Polaris Private Limited | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Equity method investment ownership percentage | 50.00% | |||
Joint venture investment | $ 50,000 | |||
Investment maturity period | 3 years | |||
Eicher -Polaris Private Limited | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Investment in finance affiliate | $ 18,884 | $ 14,601 | $ 14,601 |
Future Minimum Annual Lease Pay
Future Minimum Annual Lease Payments under Capital and Operating Leases with Non-cancelable Terms in Excess of One Year (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Capital Leases, Lease Obligations | |
2,016 | $ 3,045 |
2,017 | 2,543 |
2,018 | 2,070 |
2,019 | 1,886 |
2,020 | 1,796 |
Thereafter | 15,545 |
Total future minimum lease obligation | 26,885 |
Operating Leases, Lease Obligations | |
2,016 | 13,736 |
2,017 | 8,525 |
2,018 | 6,906 |
2,019 | 5,053 |
2,020 | 3,229 |
Thereafter | 1,928 |
Total future minimum lease obligation | $ 39,377 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 23, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Loss Contingencies [Line Items] | ||||
Accrual for the probable payment of pending claims | $ 19,725 | |||
Loss from discontinued operations | $ 3,777 | 0 | $ 0 | $ 3,777 |
Operating Leases, Rent Expense | 16,823 | 13,734 | $ 10,656 | |
Level 3 | ||||
Loss Contingencies [Line Items] | ||||
Fair value of contingent purchase price commitments | $ 2,222 | $ 27,908 | ||
Polaris Industries Inc | Damages from Product Defects | ||||
Loss Contingencies [Line Items] | ||||
Damages awarded to Plaintiff | 10,000 | |||
Polaris Industries Inc Plus Third Parties | Damages from Product Defects | ||||
Loss Contingencies [Line Items] | ||||
Damages awarded to Plaintiff | $ 21,000 |
Derivative Instruments and He71
Derivative Instruments and Hedging Activities Open Foreign Currency Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Derivative, Fair Value, Net | $ 2,599 | $ (7,179) |
Cash Flow Hedging | Foreign currency contracts | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 145,006 | |
Derivative, Fair Value, Net | 2,767 | |
Australian Dollar | Cash Flow Hedging | Foreign currency contracts | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 20,336 | |
Derivative, Fair Value, Net | (69) | |
Canadian Dollar | Cash Flow Hedging | Foreign currency contracts | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 81,747 | |
Derivative, Fair Value, Net | 5,062 | |
Japanese Yen | Cash Flow Hedging | Foreign currency contracts | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 10,066 | |
Derivative, Fair Value, Net | 110 | |
Mexican Peso | Cash Flow Hedging | Foreign currency contracts | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 32,857 | |
Derivative, Fair Value, Net | $ (2,336) |
Derivative Instruments and He72
Derivative Instruments and Hedging Activities Carrying Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Derivative Net Carrying Value | $ 2,599 | $ (7,179) | |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative Net Carrying Value | 2,953 | (2,570) | |
Designated as Hedging Instrument | Foreign currency contracts | |||
Derivative [Line Items] | |||
Derivative Net Carrying Value | [1] | 2,767 | (2,570) |
Designated as Hedging Instrument | Interest rate swap contracts | |||
Derivative [Line Items] | |||
Derivative Net Carrying Value | [1] | 186 | |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative Net Carrying Value | (354) | (4,609) | |
Not Designated as Hedging Instrument | Commodity contracts | |||
Derivative [Line Items] | |||
Derivative Net Carrying Value | [1] | (354) | (4,609) |
Prepaid Expenses And Other Current Assets | |||
Derivative [Line Items] | |||
Fair Value— Assets | 5,404 | 534 | |
Prepaid Expenses And Other Current Assets | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Fair Value— Assets | 5,404 | 534 | |
Prepaid Expenses And Other Current Assets | Designated as Hedging Instrument | Foreign currency contracts | |||
Derivative [Line Items] | |||
Fair Value— Assets | [1] | 5,218 | 534 |
Prepaid Expenses And Other Current Assets | Designated as Hedging Instrument | Interest rate swap contracts | |||
Derivative [Line Items] | |||
Fair Value— Assets | [1] | 186 | |
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) | (2,805) | (7,713) | |
Other Current Liabilities | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | (2,451) | (3,104) | |
Other Current Liabilities | Designated as Hedging Instrument | Foreign currency contracts | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | [1] | (2,451) | (3,104) |
Other Current Liabilities | Designated as Hedging Instrument | Interest rate swap contracts | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | [1] | 0 | |
Other Current Liabilities | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | (354) | (4,609) | |
Other Current Liabilities | Not Designated as Hedging Instrument | Commodity contracts | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | [1] | $ (354) | $ (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 He73
Derivative Instruments and Hedging Activities Gains and Losses, Net of Tax, Related to Derivative Instruments Designated as Cash Flow Hedges Included in Accumulated Other Comprehensive Income, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ 3,320 | $ (1,631) |
Derivative Instruments and He74
Derivative Instruments and Hedging Activities Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cost of sales | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Recognized gain (loss) in cost of sales on commodity contracts not designated as hedging instruments | $ (2,994) | $ (4,820) |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of operating segments | segment | 4 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 1,105,618 | $ 1,456,000 | $ 1,124,327 | $ 1,033,345 | $ 1,275,000 | $ 1,302,343 | $ 1,013,959 | $ 888,346 | $ 4,719,290 | $ 4,479,648 | $ 3,777,068 |
Gross profit | $ 310,274 | $ 415,623 | $ 319,414 | $ 293,731 | $ 367,573 | $ 388,274 | $ 304,914 | $ 258,417 | 1,339,042 | 1,319,178 | 1,120,879 |
Operating Segments [Member] | Off Road Vehicles / Snowmobiles Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 3,708,933 | 3,741,154 | 3,255,033 | ||||||||
Gross profit | 1,190,630 | 1,206,553 | 1,049,794 | ||||||||
Operating Segments [Member] | Motorcycles Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 698,257 | 418,546 | 263,443 | ||||||||
Gross profit | 97,261 | 54,427 | 48,208 | ||||||||
Operating Segments [Member] | Global Adjacent Markets Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 312,100 | 319,948 | 258,592 | ||||||||
Gross profit | 84,211 | 88,797 | 63,934 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | $ (33,060) | $ (30,599) | $ (41,057) |
Polaris' Foreign Operations (De
Polaris' Foreign Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 1,105,618 | $ 1,456,000 | $ 1,124,327 | $ 1,033,345 | $ 1,275,000 | $ 1,302,343 | $ 1,013,959 | $ 888,346 | $ 4,719,290 | $ 4,479,648 | $ 3,777,068 |
Identifiable assets | 650,678 | 555,428 | 650,678 | 555,428 | |||||||
UNITED STATES | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 3,688,980 | 3,339,905 | 2,721,300 | ||||||||
Identifiable assets | 548,410 | 432,614 | 548,410 | 432,614 | |||||||
Canadian subsidiary | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 378,725 | 454,608 | 463,316 | ||||||||
MEXICO | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Identifiable assets | 39,542 | 49,064 | 39,542 | 49,064 | |||||||
Other foreign countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 651,585 | 685,135 | $ 592,452 | ||||||||
Identifiable assets | $ 62,726 | $ 73,750 | $ 62,726 | $ 73,750 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - shares shares in Millions | Jan. 28, 2016 | Jan. 27, 2016 |
Subsequent Event [Line Items] | ||
Increase in authorized amount | 7.5 | |
Remaining authorized repurchase amount | 2.9 | |
Authorized shares to outstanding stock | 16.00% |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Data [Abstract] | |||||||||||
Sales | $ 1,105,618 | $ 1,456,000 | $ 1,124,327 | $ 1,033,345 | $ 1,275,000 | $ 1,302,343 | $ 1,013,959 | $ 888,346 | $ 4,719,290 | $ 4,479,648 | $ 3,777,068 |
Gross profit | 310,274 | 415,623 | 319,414 | 293,731 | 367,573 | 388,274 | 304,914 | 258,417 | 1,339,042 | 1,319,178 | 1,120,879 |
Net income from continuing operations | 455,361 | 454,029 | 381,069 | ||||||||
Net income | $ 110,682 | $ 155,173 | $ 100,943 | $ 88,563 | $ 135,397 | $ 140,826 | $ 96,905 | $ 80,901 | $ 455,361 | $ 454,029 | $ 377,292 |
Diluted net income per share from continuing operations (in dollars per share) | $ 6.75 | $ 6.65 | $ 5.40 | ||||||||
Diluted net income per share (in dollars per share) | $ 1.66 | $ 2.30 | $ 1.49 | $ 1.30 | $ 1.98 | $ 2.06 | $ 1.42 | $ 1.19 | $ 6.75 | $ 6.65 | $ 5.35 |
Valuation and Qualifying Acco79
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for obsolete inventory | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 26,171 | $ 21,603 | $ 17,357 |
Additions Charged to Costs and Expenses | 21,648 | 12,868 | 9,966 |
Additions Through Acquisition | 1,942 | 600 | 2,423 |
Other Changes Add (Deduct) | (13,492) | (8,900) | (8,143) |
Balance at End of Period | 36,269 | 26,171 | 21,603 |
Allowance for doubtful accounts receivable | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 7,424 | 5,895 | 4,268 |
Additions Charged to Costs and Expenses | 2,169 | 2,347 | 75 |
Additions Through Acquisition | 59 | 265 | 2,192 |
Other Changes Add (Deduct) | (1,008) | (1,083) | (640) |
Balance at End of Period | $ 8,644 | $ 7,424 | $ 5,895 |