Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Apr. 19, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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 | 62,244,677 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 138,345 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 209,964 | 161,618 |
Trade receivables, net | 190,343 | 200,144 |
Inventories, net | 925,243 | 783,961 |
Prepaid expenses and other | 106,586 | 101,453 |
Income taxes receivable | 10,269 | 29,601 |
Total current assets | 1,414,194 | 1,253,504 |
Property and equipment, net | 762,268 | 747,189 |
Investment in finance affiliate | 92,954 | 88,764 |
Deferred tax assets | 115,399 | 115,511 |
Goodwill and other intangible assets, net | 765,050 | 780,586 |
Other long-term assets | 89,613 | 104,039 |
Total assets | 3,239,478 | 3,089,593 |
Current liabilities: | ||
Current portion of debt, capital lease obligations and notes payable | 40,120 | 47,746 |
Accounts payable | 361,717 | 317,377 |
Accrued expenses: | ||
Compensation | 129,719 | 168,014 |
Warranties | 106,155 | 123,840 |
Sales promotions and incentives | 184,811 | 162,298 |
Dealer holdback | 125,016 | 114,196 |
Other | 161,659 | 186,103 |
Income taxes payable | 5,973 | 10,737 |
Total current liabilities | 1,115,170 | 1,130,311 |
Long-term income taxes payable | 25,332 | 20,114 |
Capital lease obligations | 17,135 | 18,351 |
Long-term debt | 1,055,367 | 846,915 |
Deferred tax liabilities | 8,667 | 10,128 |
Other long-term liabilities | 127,529 | 120,398 |
Total liabilities | 2,349,200 | 2,146,217 |
Deferred compensation | 12,768 | 11,717 |
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, 62,214 and 63,075 shares issued and outstanding, respectively | 622 | 631 |
Additional paid-in capital | 791,148 | 733,894 |
Retained earnings | 140,033 | 242,763 |
Accumulated other comprehensive loss, net | (54,293) | (45,629) |
Total shareholders’ equity | 877,510 | 931,659 |
Total liabilities and shareholders’ equity | $ 3,239,478 | $ 3,089,593 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
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 | 62,214,000 | 63,075,000 |
Common stock, shares outstanding | 62,214,000 | 63,075,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Sales | $ 1,502,532 | $ 1,364,920 | $ 2,800,005 | $ 2,518,702 |
Cost of sales | 1,117,356 | 1,014,534 | 2,091,348 | 1,925,825 |
Gross profit | 385,176 | 350,386 | 708,657 | 592,877 |
Operating expenses: | ||||
Selling and marketing | 122,859 | 118,531 | 240,566 | 232,844 |
Research and development | 68,330 | 60,753 | 133,560 | 112,758 |
General and administrative | 92,874 | 91,063 | 171,567 | 166,577 |
Total operating expenses | 284,063 | 270,347 | 545,693 | 512,179 |
Income from financial services | 21,344 | 19,143 | 42,769 | 39,573 |
Operating income | 122,457 | 99,182 | 205,733 | 120,271 |
Non-operating expense: | ||||
Interest expense | 9,216 | 8,032 | 17,264 | 15,946 |
Equity in loss of other affiliates | 3,954 | 1,336 | 25,465 | 3,236 |
Other expense (income), net | (3,561) | (2,152) | (23,536) | 9,456 |
Income before income taxes | 112,848 | 91,966 | 186,540 | 91,633 |
Provision for income taxes | 20,308 | 29,925 | 38,286 | 32,503 |
Net income | $ 92,540 | $ 62,041 | $ 148,254 | $ 59,130 |
Basic net income per share (in dollars per share) | $ 1.46 | $ 0.99 | $ 2.34 | $ 0.94 |
Diluted net income per share (in dollars per share) | $ 1.43 | $ 0.97 | $ 2.28 | $ 0.92 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 63,172 | 62,895 | 63,238 | 63,012 |
Diluted (in shares) | 64,886 | 63,807 | 65,052 | 63,970 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 92,540 | $ 62,041 | $ 148,254 | $ 59,130 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | (24,881) | 17,020 | (13,903) | 30,436 |
Unrealized gain (loss) on derivative instruments | 580 | (1,397) | 5,109 | (1,041) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 45 | 0 | ||
Comprehensive income | $ 68,284 | $ 77,664 | $ 139,590 | $ 88,525 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities: | ||
Net income | $ 148,254 | $ 59,130 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 98,584 | 91,124 |
Noncash compensation | 33,001 | 31,416 |
Noncash income from financial services | (14,626) | (13,328) |
Deferred income taxes | (1,704) | (4,083) |
Impairment charges | 20,249 | 18,760 |
Other, net | (8,262) | 3,236 |
Changes in operating assets and liabilities: | ||
Trade receivables | 5,326 | 12,370 |
Inventories | (146,661) | (59,421) |
Accounts payable | 45,835 | 75,576 |
Accrued expenses | (35,693) | 6,406 |
Income taxes payable/receivable | 19,828 | 40,727 |
Prepaid expenses and others, net | 1,018 | 1,130 |
Net cash provided by operating activities | 165,149 | 263,043 |
Investing Activities: | ||
Purchase of property and equipment | (104,569) | (81,803) |
Investment in finance affiliate, net | 10,436 | 20,785 |
Investment in other affiliates, net | 7,366 | (1,814) |
Acquisition and disposal of businesses, net of cash acquired | 0 | 1,645 |
Net cash used for investing activities | (86,767) | (61,187) |
Financing Activities: | ||
Borrowings under debt arrangements / capital lease obligations | 1,511,810 | 932,317 |
Repayments under debt arrangements / capital lease obligations | (1,310,863) | (1,010,870) |
Repurchase and retirement of common shares | (192,367) | (65,622) |
Cash dividends to shareholders | (75,694) | (72,612) |
Proceeds from stock issuances under employee plans | 43,448 | 7,027 |
Net cash used for financing activities | (23,666) | (209,760) |
Impact of currency exchange rates on cash balances | (6,370) | 6,951 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 48,346 | (953) |
Cash, cash equivalents and restricted cash at beginning of period | 161,618 | 145,170 |
Cash, cash equivalents and restricted cash at end of period | 209,964 | 144,217 |
Supplemental Cash Flow Information: | ||
Interest paid on debt borrowings | 17,013 | 15,466 |
Income taxes paid (refunded) | 20,614 | (4,735) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 161,618 | 145,170 |
Cash and cash equivalents | ||
Financing Activities: | ||
Cash, cash equivalents and restricted cash at end of period | 181,753 | |
Supplemental Cash Flow Information: | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 181,753 | |
Other long-term assets | ||
Financing Activities: | ||
Cash, cash equivalents and restricted cash at end of period | 28,211 | 16,839 |
Supplemental Cash Flow Information: | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 28,211 | $ 16,839 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of presentation. The accompanying unaudited consolidated financial statements of Polaris Industries Inc. (“Polaris” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and, therefore, do not include all information and disclosures of results of operations, financial position and changes in cash flow in conformity with accounting principles generally accepted in the United States for complete financial statements. Accordingly, such statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 previously filed with the Securities and Exchange Commission (“SEC”). In the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. Due to the seasonality trends for certain products and to certain changes in production and shipping cycles, results of such periods are not necessarily indicative of the results to be expected for the complete year. Fair value measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The Company utilizes the market approach to measure fair value for its non-qualified deferred compensation assets and liabilities, and the income approach for foreign currency contracts and commodity contracts. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities, and for the income approach, the Company uses significant other observable inputs to value its derivative instruments used to hedge foreign currency and commodity transactions. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of June 30, 2018 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 54,828 $ 54,828 $ — $ — Foreign exchange contracts, net 5,931 — 5,931 — Total assets at fair value $ 60,759 $ 54,828 $ 5,931 $ — Non-qualified deferred compensation liabilities $ (54,828 ) $ (54,828 ) $ — $ — Total liabilities at fair value $ (54,828 ) $ (54,828 ) $ — $ — Fair Value Measurements as of December 31, 2017 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 54,244 $ 54,244 $ — $ — Total assets at fair value $ 54,244 $ 54,244 $ — $ — Non-qualified deferred compensation liabilities $ (54,244 ) $ (54,244 ) $ — $ — Foreign exchange contracts, net (426 ) — (426 ) — Total liabilities at fair value $ (54,670 ) $ (54,244 ) $ (426 ) $ — Fair value of other financial instruments. The carrying values of the Company’s short-term financial instruments, including cash and cash equivalents, trade receivables and short-term debt, including current maturities of long-term debt, capital lease obligations and notes payable, approximate their fair values. At June 30, 2018 and December 31, 2017 , the fair value of the Company’s long-term debt, capital lease obligations and notes payable was approximately $ 1,117,197,000 and $922,123,000 , respectively, and was determined using Level 2 inputs, including quoted market prices or discounted cash flows based on quoted market rates for similar types of debt. The carrying value of long-term debt, capital lease obligations and notes payable including current maturities was $1,112,622,000 and $913,012,000 as of June 30, 2018 and December 31, 2017 , respectively. 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 net realizable value. The major components of inventories are as follows (in thousands): June 30, 2018 December 31, 2017 Raw materials and purchased components $ 208,501 $ 194,108 Service parts, garments and accessories 320,396 307,684 Finished goods 443,039 329,288 Less: reserves (46,693 ) (47,119 ) Inventories $ 925,243 $ 783,961 Product warranties. Polaris provides a limited warranty for its vehicles for a period of six months to two years, depending on the product. 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: change in manufacturing quality, shifts in product mix, changes in warranty coverage periods, snowfall and its impact on snowmobile usage, product recalls and any significant changes in sales volume. The activity in the warranty reserve during the periods presented was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Balance at beginning of period $ 116,286 $ 109,852 $ 123,840 $ 119,274 Additions charged to expense 26,141 30,122 42,172 61,816 Warranty claims paid, net (36,272 ) (31,571 ) (59,857 ) (72,687 ) Balance at end of period $ 106,155 $ 108,403 $ 106,155 $ 108,403 New accounting pronouncements. Revenue from contracts with customers. Effective January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers , ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients using the modified retrospective approach. The adoption of these ASUs did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows as of the adoption date or for the three or six months ended June 30, 2018 . The Company has included the disclosures required by ASU 2014-09 in Note 2. Statement of cash flows. During the first quarter of 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Prior periods were retrospectively adjusted to conform to the current period’s presentation. As a result of the adoption of ASU 2016-18, the Company recorded a decrease of $1,006,000 in net cash provided by operating activities for the six months ended June 30, 2017 related to reclassifying the changes in our restricted cash balance from operating activities to the cash and cash equivalent balances within the Consolidated Statements of Cash Flows. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This ASU requires most lessees to recognize right of use assets and lease liabilities, but recognize expenses in a manner similar with current accounting standards. The standard is effective for fiscal years and interim periods beginning after December 15, 2018 and is effective for the Company’s fiscal year beginning January 1, 2019. Entities are required to use a modified retrospective approach, with early adoption permitted. The Company developed a project plan to guide the implementation of ASU 2016-02. The Company made progress on this plan including surveying the Company’s businesses, assessing the Company’s portfolio of leases, compiling information on active leases, and selecting a lease accounting software. The Company is currently identifying and implementing appropriate changes to its policies, business processes, systems and controls to support lease accounting and disclosures under Topic 842. The Company is currently evaluating the impact of this new standard on the consolidated financial statements. Derivatives and hedging. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This ASU better aligns accounting rules with a company’s risk management activities; better reflects economic results of hedging in financial statements; and simplifies hedge accounting treatment. The standard is effective for fiscal years and interim periods beginning after December 15, 2018 and is effective for the Company’s fiscal year beginning January 1, 2019, with early adoption permitted. The Company is evaluating the impact of this new standard on the financial statements. Income Taxes. The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign-sourced earnings. The Company has applied the guidance in ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, when accounting for the enactment-date effects of the Act. At June 30, 2018 , the Company has not completed its accounting for the tax effects of the Act, as the Company is in the process of analyzing certain aspects of the Act, obtaining information, and refining its calculations of the Act’s impact. There have been no material measurement period adjustments made during the three and six months ended June 30, 2018 related to the provisional amounts recorded and disclosed in the Company’s fiscal 2017 Annual Report filed on Form 10-K. The Company expects to complete the accounting for the tax effects of the Act during 2018. There are no other new accounting pronouncements that are expected to have a significant impact on the Company’s consolidated financial statements. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 3 Months Ended |
Jun. 30, 2017 | |
Revenue Recognition [Abstract] | |
Revenue Recognition, Sales of Goods [Policy Text Block] | Note 2. Revenue Recognition The following tables disaggregate the Company’s revenue by major product type and geography (in thousands): Three months ended June 30, 2018 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Consolidated Revenue by product type Wholegoods $ 820,850 $ 146,671 $ 93,550 — $ 1,061,071 PG&A 169,991 24,741 19,868 $ 226,861 441,461 Total revenue $ 990,841 $ 171,412 $ 113,418 $ 226,861 $ 1,502,532 Revenue by geography United States $ 818,318 $ 113,561 $ 49,740 $ 215,572 $ 1,197,191 Canada 68,576 10,769 10,216 11,289 100,850 EMEA 64,632 31,667 52,169 — 148,468 APLA 39,315 15,415 1,293 — 56,023 Total revenue $ 990,841 $ 171,412 $ 113,418 $ 226,861 $ 1,502,532 Six months ended June 30, 2018 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Consolidated Revenue by product type Wholegoods $ 1,504,353 $ 260,779 $ 185,562 — $ 1,950,694 PG&A 319,052 42,190 41,183 $ 446,886 849,311 Total revenue $ 1,823,405 $ 302,969 $ 226,745 $ 446,886 $ 2,800,005 Revenue by geography United States $ 1,480,913 $ 197,458 $ 99,794 $ 426,566 $ 2,204,731 Canada 126,331 17,709 15,585 20,320 179,945 EMEA 143,561 58,338 109,089 — 310,988 APLA 72,600 29,464 2,277 — 104,341 Total revenue $ 1,823,405 $ 302,969 $ 226,745 $ 446,886 $ 2,800,005 Revenue is recognized when obligations under the terms of a contract with the Company’s customer are satisfied which generally occurs with the transfer of control of the wholegood vehicles, parts, garments or accessories, and upon completion of the service or over the term of the agreement in proportion to the costs expected to be incurred in satisfying the obligations under the contract, for services. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Sales, value add, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. The expected costs associated with the Company’s limited warranties and field service bulletin actions continue to be recognized as expense when the products are sold. The Company recognizes revenue for vehicle service contracts that extend mechanical and maintenance beyond the Company’s limited warranties over the life of the contract. ORV/Snowmobiles, Motorcycles and Global Adjacent Markets segments Wholegood vehicles and parts, garments and accessories. For the majority of wholegood vehicles, parts, garments and accessories (PG&A), the Company transfers control and recognizes a sale when it ships the product from its manufacturing facility, distribution center, or vehicle holding center to its customer (primarily dealers and distributors). The amount of consideration the Company receives and revenue it recognizes varies with changes in marketing incentives and returns it offers to its dealers and their customers. Sales returns are not material. The Company adjusts its estimate of revenue at the earlier of when the most likely amount of consideration it expects to receive changes or when the consideration becomes fixed. Depending on the terms of the arrangement, the Company may also defer the recognition of a portion of the consideration received because it has to satisfy a future obligation (e.g., free extended service contracts). The Company uses an observable price to determine the stand-alone selling price for separate performance obligations. The Company has elected to recognize the cost for freight and shipping when control over vehicles, parts, garments or accessories have transferred to the customer as an expense in Cost of sales. Extended Service Contracts. The Company sells separately-priced service contracts that extend mechanical and maintenance coverages beyond its base limited warranty agreements to vehicle owners. The separately priced service contracts range from 12 months to 84 months. The Company primarily receives payment at the inception of the contract and recognizes revenue over the term of the agreement in proportion to the costs expected to be incurred in satisfying the obligations under the contract. Aftermarket segment The Company’s Aftermarket products are sold through dealer, distributor, retail, and e-commerce channels. The Company transfers control and recognizes a sale when products are shipped or delivered to its customer. The amount of consideration the Company receives and revenue it recognizes varies with changes in marketing incentives and return rights it offers to its customers and their customers. When the Company gives its customers the right to return eligible parts and accessories, it estimates the expected returns based on an analysis of historical experience. The Company adjusts its estimate of revenue at the earlier of when the most likely amount of consideration it expects to receive changes or when the consideration becomes fixed. Service revenue. At the Company’s Transamerican Auto Parts (“TAP”) retail stores (4 Wheel Parts), it offers installation services for parts that the retail store sells. Service revenues are recognized upon completion of the service. Depending on the terms of the arrangement, the Company may also defer the recognition of a portion of the consideration received because it has to satisfy a future obligation (e.g., extended service contracts). The Company uses an observable price to determine the stand-alone selling price for separate performance obligations. The Company has elected to recognize the cost for freight and shipping when control over parts, garments or accessories have transferred to the customer as an expense in cost of sales. Deferred revenue In 2016, Polaris began financing its self-insured risks related to extended service contracts (“ESCs”). The premiums for ESCs are primarily recognized in income in proportion to the costs expected to be incurred over the contract period. Warranty costs are recognized as incurred. Revenues related to sales of its extended warranty program and related accrued costs for claims are deferred and amortized over the warranty period, generally five years, while warranty administrative costs are recognized as incurred. TAP recognizes revenues related to sales of its extended warranty programs for tires and other products over the term of the warranty period, which varies from two to five years . At January 1, 2018, $45,760,000 of unearned revenue associated with outstanding contracts was reported in other current liabilities and other long-term liabilities. At June 30, 2018 , the unearned amount was $52,620,000 . The Company expects to recognize approximately $22,265,000 of the unearned amount in 2018 and $30,355,000 thereafter. The activity in the deferred revenue reserve during the periods presented was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Balance at beginning of period $ 49,345 $ 30,445 $ 45,760 $ 26,157 New contracts sold 8,848 8,772 17,172 15,114 Less: reductions for revenue recognized (5,573 ) (3,029 ) (10,312 ) (5,083 ) Balance at end of period (1) $ 52,620 $ 36,188 $ 52,620 $ 36,188 (1) The unamortized ESC premiums (deferred revenue) recorded in other current liabilities totaled $22,265,000 and $14,678,000 at June 30, 2018 and 2017 , respectively, while the amount recorded in other long-term liabilities totaled $30,355,000 and $21,510,000 at June 30, 2018 and 2017 , respectively. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The amount of compensation cost for share-based awards to be recognized during a period is based on the portion of the awards that are ultimately expected to vest. The Company estimates 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-based compensation expense for those awards expected to vest. Total share-based compensation expenses were comprised as follows (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Option plan $ 6,758 $ 5,649 $ 9,815 $ 7,071 Other share-based awards 13,847 13,018 19,736 22,110 Total share-based compensation before tax 20,605 18,667 29,551 29,181 Tax benefit 4,904 6,933 7,033 10,838 Total share-based compensation expense included in net income $ 15,701 $ 11,734 $ 22,518 $ 18,343 In addition to the above share-based compensation expenses, Polaris sponsors a qualified non-leveraged employee stock ownership plan (ESOP). Shares allocated to eligible participants’ accounts vest at various percentage rates based on years of service and require no cash payments from the recipient. At June 30, 2018 , there was $134,342,000 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 1.67 years. Included in unrecognized share-based compensation expense is approximately $37,441,000 related to stock options and $96,901,000 for restricted stock. |
Financing Agreement
Financing Agreement | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Financing Agreement | Financing Agreements The carrying value of debt, capital lease obligations, and notes payable and the average related interest rates were as follows (in thousands): Average interest rate at June 30, 2018 Maturity June 30, 2018 December 31, 2017 Revolving loan facility 2.98% May 2021 $ 240,000 $ 3,000 Term loan facility 3.22% May 2021 670,000 680,000 Senior notes—fixed rate 3.81% May 2018 — 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 5.22% Various through 2029 18,547 19,889 Notes payable and other 3.50% June 2027 10,875 12,384 Debt issuance costs (1,800 ) (2,261 ) Total debt, capital lease obligations, and notes payable $ 1,112,622 $ 913,012 Less: current maturities 40,120 47,746 Total long-term debt, capital lease obligations, and notes payable $ 1,072,502 $ 865,266 In August 2011, Polaris entered into a $350,000,000 unsecured revolving loan facility. 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 May 2016, Polaris amended the revolving loan facility to increase the facility to $600,000,000 and extend the expiration date to May 2021 . The amended terms also established a $500,000,000 term loan facility. In November 2016, Polaris amended the revolving loan facility to increase the term loan facility to $750,000,000 , of which $670,000,000 is outstanding as of June 30, 2018 . Under the facility, the Company is required to make principal payments totaling $37,500,000 over the next 12 months, which are classified as current maturities. In December 2010, the Company entered into a Master Note Purchase Agreement to issue $25,000,000 of unsecured senior notes due May 2018 and $75,000,000 of unsecured senior notes due May 2021 (collectively, the “Senior Notes”). The Senior Notes were issued in May 2011 . In December 2013, the Company entered into a First Supplement to Master Note Purchase Agreement, under which the Company issued $100,000,000 of unsecured senior notes due December 2020 . The unsecured revolving loan facility and the Master Note Purchase Agreement contain covenants that require Polaris to maintain certain financial ratios, including minimum interest coverage and maximum leverage ratios. Polaris was in compliance with all such covenants at June 30, 2018 . The debt issuance costs are recognized as a reduction in the carrying value of the related long-term debt in the consolidated balance sheets and are being amortized to interest expense in our consolidated statements of income over the expected remaining terms of the related debt. On July 2, 2018, in connection with the acquisition of Boat Holdings, LLC, the Company amended the revolving loan facility to increase the facility to $700,000,000 and increase the term loan facility to $1,180,000,000. The expiration date of the facility was extended to July 2023, and interest will continue to be charged at rates based on a LIBOR or “prime” base rate. Additionally, on July 2, 2018, the Company entered into a Master Note Purchase Agreement to issue $350,000,000 of 4.23% unsecured senior notes due July 2028. 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. The Company has a mortgage note payable agreement for land, on which Polaris built the Huntsville, Alabama manufacturing facility in 2016. The original mortgage note payable was for $14,500,000 , of which $10,875,000 is outstanding as of June 30, 2018 . 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. The Company has met the required commitments to date. Forgivable loans related to other Company facilities are also included within notes payable. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets, net of accumulated amortization, at June 30, 2018 and December 31, 2017 are as follows (in thousands): June 30, 2018 December 31, 2017 Goodwill $ 430,705 $ 433,374 Other intangible assets, net 334,345 347,212 Total goodwill and other intangible assets, net $ 765,050 $ 780,586 There were no material additions to goodwill and other intangible assets for the three and six months ended June 30, 2018 and 2017 . The changes in the carrying amount of goodwill for the six months ended June 30, 2018 were as follows (in thousands): Six months ended June 30, 2018 Goodwill, beginning of period $ 433,374 Currency translation effect on foreign goodwill balances (2,669 ) Goodwill, end of period $ 430,705 The components of other intangible assets were as follows (in thousands): Total estimated life (years) June 30, 2018 December 31, 2017 Non-amortizable—indefinite lived: Brand names $ 230,346 $ 230,709 Amortizable: Non-compete agreements 5 540 540 Dealer/customer related 5-10 168,419 169,694 Developed technology 5-7 22,769 22,903 Total amortizable 191,728 193,137 Less: Accumulated amortization (87,729 ) (76,634 ) Net amortized other intangible assets 103,999 116,503 Total other intangible assets, net $ 334,345 $ 347,212 Amortization expense for intangible assets for the three months ended June 30, 2018 and 2017 was $6,058,000 and $6,238,000 , respectively. Estimated amortization expense for the remainder of 2018 through 2023 is as follows: 2018 (remainder), $11,800,000 ; 2019 , $22,300,000 ; 2020 , $17,300,000 ; 2021 , $14,400,000 ; 2022 , $9,800,000 ; 2023 , $7,600,000 ; and after 2023 , $20,800,000 . 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. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity During the six months ended June 30, 2018 , Polaris paid $192,367,000 to repurchase and retire approximately 1,562,000 shares of its common stock. As of June 30, 2018 , the Board of Directors has authorized the Company to repurchase up to an additional 4,874,000 shares of Polaris stock. The repurchase of any or all such shares authorized for repurchase will be governed by applicable SEC rules and dependent on management’s assessment of market conditions. Polaris paid a regular cash dividend of $0.60 per share on June 15, 2018 to holders of record at the close of business on June 1, 2018 . On July 25, 2018 , the Polaris Board of Directors declared a regular cash dividend of $0.60 per share payable on September 17, 2018 to holders of record of such shares at the close of business on August 31, 2018 . Cash dividends declared and paid per common share for the three and six months ended June 30, 2018 and 2017 , were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Cash dividends declared and paid per common share $ 0.60 $ 0.58 $ 1.20 $ 1.16 Net income per share Basic income 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”) and the ESOP and deferred stock units under the 2007 Omnibus Incentive Plan (“Omnibus Plan”). Diluted income per share is computed under the treasury stock method and is calculated to compute the dilutive effect of outstanding stock options and certain shares issued under the Omnibus Plan. A reconciliation of these amounts is as follows (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Weighted average number of common shares outstanding 62,913 62,638 62,982 62,756 Director Plan and deferred stock units 177 157 171 151 ESOP 82 100 85 105 Common shares outstanding—basic 63,172 62,895 63,238 63,012 Dilutive effect of Omnibus Plan 1,714 912 1,814 958 Common and potential common shares outstanding—diluted 64,886 63,807 65,052 63,970 During the three and six months ended June 30, 2018 , the number of options that were not included in the computation of diluted income per share because the option exercise price was greater than the market price, and therefore, the effect would have been anti-dilutive, were 1,812,000 and 1,677,000 , respectively, compared to 3,626,000 and 3,398,000 for the same periods in 2017 . Accumulated other comprehensive loss Changes in the accumulated other comprehensive loss balance are as follows (in thousands): Foreign Cash Flow Retirement Benefit Plan Activity Accumulated Other Balance as of December 31, 2017 $ (42,442 ) $ (34 ) $ (3,153 ) $ (45,629 ) Reclassification to the statement of income — (2,616 ) 130 (2,486 ) Change in fair value (13,903 ) 7,725 — (6,178 ) Balance as of June 30, 2018 $ (56,345 ) $ 5,075 $ (3,023 ) $ (54,293 ) The table below provides data about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the statements of income for cash flow derivatives designated as hedging instruments for the three and six months ended June 30, 2018 and 2017 (in thousands): Derivatives in Cash Flow Hedging Relationships Location of (Gain) Loss Reclassified from Accumulated Other Comprehensive Loss into Income Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Foreign currency contracts Other expense, net $ 1,937 $ 1,380 $ 2,094 $ 2,607 Foreign currency contracts Cost of sales 554 (32 ) 522 (436 ) Retirement benefit plan activity Operating expenses (45 ) — (130 ) — Total $ 2,446 $ 1,348 $ 2,486 $ 2,171 The net amount of the existing gains or losses at June 30, 2018 that is expected to be reclassified into the statements of income within the next 12 months is not expected to be material. See Note 10 for further information regarding Polaris’ derivative activities. |
Financial Services Arrangements
Financial Services Arrangements | 6 Months Ended |
Jun. 30, 2018 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Financial Services Arrangements | Financial Services Arrangements Polaris Acceptance, a joint venture between Polaris and Wells Fargo Commercial Distribution Finance, a direct subsidiary of Wells Fargo Bank, N.A. (“Wells Fargo”), 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 Wells Fargo. 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 (“ASC”) Topic 860. Polaris’ allocable share of the income of Polaris Acceptance has been included as a component of income from financial services in the accompanying consolidated statements of income. The partnership agreement is effective through February 2022. Polaris’ total investment in Polaris Acceptance of $92,954,000 at June 30, 2018 is accounted for under the equity method, and is recorded in investment in finance affiliate in the accompanying consolidated balance sheets. At June 30, 2018 , the outstanding amount of net receivables financed for dealers under this arrangement was $1,172,207,000 , which included $539,732,000 in the Polaris Acceptance portfolio and $632,475,000 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 2018 , the potential 15 percent aggregate repurchase obligation is approximately $164,969,000 . 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. Polaris has agreements with Performance Finance, Sheffield Financial 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 finances its self-insured risks related to extended service contracts, but does not retain any insurance or financial risk under any of the other 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 | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Other Affiliates | Investment in Other Affiliates The Company has certain investments in nonmarketable securities of strategic companies. As of December 31, 2017 , the Company’s investment in Eicher-Polaris Private Limited (EPPL) represented the majority of these investments and is recorded as a component 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. During the first quarter of 2018, the Board of Directors of EPPL approved a shut down of the operations of the EPPL joint venture. As a result of the expected closure, the Company fully impaired its investment in EPPL by recognizing an impairment charge of $18,733,000 within Equity in loss of other affiliates in the consolidated statement of income. The Company has recognized $3,817,000 and $23,447,000 of costs, including impairment, associated with the wind-down of EPPL for the three and six months ended June 30, 2018 , respectively. As of June 30, 2018 and December 31, 2017 , the carrying value of the Company’s investment in EPPL was $0 and $18,616,000 , respectively. 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. As a result of the Victory ® Motorcycles wind down, the Company recognized an impairment of substantially all of its cost-method investment in Brammo, Inc. in the first quarter of 2017. See Note 12 for additional discussion related to charges incurred related to the Victory Motorcycles wind down. In October 2017, an agreement was signed to sell the assets of Brammo, Inc. to a third party. The sale was completed in the fourth quarter of 2017, and as a result of the sale, Polaris recognized a gain, which is included in Other expense (income), net on the 2017 consolidated statements of income. During the first quarter of 2018, Polaris received additional distributions from Brammo and recognized a gain of $13,478,000 , which is included in Other expense (income) on the consolidated statements of income. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Polaris is subject to product liability claims in the normal course of business. The Company carries excess insurance coverage for catastrophic product liability claims. 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 June 30, 2018 , the Company had an accrual of $49,195,000 for the probable payment of pending claims related to continuing product liability litigation associated with Polaris products. This accrual is included as a component of other accrued expenses in the accompanying consolidated balance sheets. Polaris is a defendant in lawsuits and subject to other claims arising in the normal course of business, including putative class action lawsuits. As of June 30, 2018 , the Company is aware of two putative class actions pending against Polaris in the United States. As these proceedings are in the early stages, the Company is unable to provide an evaluation of the likelihood that a loss will be incurred or an estimate of the range of possible loss. 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. In the normal course of business, the Company’s products are subject to extensive laws and regulations relating to safety, environmental and other regulations promulgated by the United States federal government and individual states, as well as international regulatory authorities. Failure to comply with applicable regulations could result in fines, penalties or other costs. On April 2, 2018, the Company agreed to a $27,250,000 settlement with the Consumer Product Safety Commission that resolves two 2016 late-reporting claims. The settlement was paid in the second quarter of 2018. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2018 | |
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 occasionally 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 occasionally 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 June 30, 2018 , Polaris had the following open foreign currency contracts (in thousands): Foreign Currency Notional Amounts (in U.S. Dollars) Net Unrealized Gain Australian Dollar $ 17,658 $ 985 Canadian Dollar 132,052 5,336 Mexican Peso 20,760 (390 ) Total $ 170,470 $ 5,931 These contracts, with maturities through September 2019 , met the criteria for cash flow hedges, and the unrealized gains or losses, after tax, are recorded as a component of accumulated other comprehensive loss in shareholders’ equity. The table below summarizes the carrying values of derivative instruments as of June 30, 2018 and December 31, 2017 (in thousands): Carrying Values of Derivative Instruments as of June 30, 2018 Fair Value— Assets Fair Value— (Liabilities) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts(1) $ 6,422 $ (491 ) $ 5,931 Total derivatives designated as hedging instruments $ 6,422 $ (491 ) $ 5,931 Total derivatives $ 6,422 $ (491 ) $ 5,931 Carrying Values of Derivative Instruments as of December 31, 2017 Fair Value— Assets Fair Value— (Liabilities) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts(1) $ 621 $ (1,047 ) $ (426 ) Total derivatives designated as hedging instruments $ 621 $ (1,047 ) $ (426 ) Total derivatives $ 621 $ (1,047 ) $ (426 ) (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 statements of income in the same period or periods during which the hedged transaction affects the statements of income. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in the current statement of income. 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 income (loss) for the three and six months ended June 30, 2018 were $580,000 and $5,109,000 , respectively, compared to $(1,397,000) and $(1,041,000) for the same respective periods in 2017 . See Note 6 for information about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the statements of income for derivative instruments designated as hedging instruments. The ineffective portion of foreign currency contracts was not material for the three and six month period ended June 30, 2018 . |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 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 Chief Executive Officer. The Company has five operating segments: 1) ORV, 2) Snowmobiles, 3) Motorcycles, 4) Global Adjacent Markets and 5) Aftermarket, and four reportable segments: 1) ORV/Snowmobiles, 2) Motorcycles, 3) Global Adjacent Markets, and 4) Aftermarket. The ORV/Snowmobiles segment includes the aggregated results of our ORV and Snowmobiles operating segments. The Motorcycles, Global Adjacent Markets and Aftermarket 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 (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Sales ORV/Snowmobiles $ 990,841 $ 845,508 $ 1,823,405 $ 1,569,611 Motorcycles 171,412 197,997 302,969 318,286 Global Adjacent Markets 113,418 97,022 226,745 188,577 Aftermarket 226,861 224,393 446,886 442,228 Total sales $ 1,502,532 $ 1,364,920 $ 2,800,005 $ 2,518,702 Gross profit ORV/Snowmobiles $ 297,221 $ 266,150 $ 540,782 $ 479,109 Motorcycles 24,672 21,116 41,240 1,235 Global Adjacent Markets 28,107 21,216 59,365 49,314 Aftermarket 57,747 59,918 116,199 101,482 Corporate (22,571 ) (18,014 ) (48,929 ) (38,263 ) Total gross profit $ 385,176 $ 350,386 $ 708,657 $ 592,877 |
Victory Motorcycles Wind Down (
Victory Motorcycles Wind Down (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Victory Motorcycles Wind Down | Victory Motorcycles Wind Down In January 2017, the Company’s Board of Directors approved a strategic plan to wind down the Victory Motorcycles brand. The Company began wind down activities during the first quarter of 2017. As a result of the activities, the Company recognized total pretax charges of $1,242,000 and $2,630,000 for the three and six month periods ended June 30, 2018 , respectively, compared to $10,683,000 and $56,465,000 for the same respective periods in 2017 , that are within the scope of ASC 420, Exit or Disposal Cost Obligations (ASC 420). These totals exclude the positive pretax impact of $1,668,000 and $2,387,000 incurred for other wind-down activities for the three and six month periods ended June 30, 2018 , respectively, and the negative pretax impact of $168,000 and $11,966,000 incurred for other wind-down activities for the three and six month periods ended June 30, 2017 , respectively. The Company estimates that the total impact of wind down activities in 2018 will be $5,000,000 , inclusive of promotional activity. Substantially all costs related to wind down activities are expected to be recognized by the end of 2018 . As a result of the wind down activities, the Company has incurred expenses within the scope of ASC 420 consisting of dealer termination, supplier termination, dealer litigation, employee separation, asset impairment charges, including the impairment of a cost method investment, inventory write-down charges and other costs. The wind down expenses have been included as components of cost of sales, selling and marketing expenses, general and administrative expenses or other expense (income), net, in the consolidated statements of income. Charges related to the wind down plan for the three and six months ended June 30, 2018 and 2017 within the scope of ASC 420 were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Contract termination charges $ 953 $ 3,388 $ 1,717 $ 17,695 Asset impairment charges — — — 18,760 Inventory charges — 5,229 — 12,680 Other costs 289 2,066 913 7,330 Total $ 1,242 $ 10,683 $ 2,630 $ 56,465 Total reserves related to the Victory Motorcycles wind down activities are $3,172,000 as of June 30, 2018 . These reserves are included in other accrued expenses and inventory in the consolidated balance sheets. Changes to the reserves during the six months ended June 30, 2018 were as follows (in thousands): Contract termination charges Inventory charges Other costs Total Reserves balance as of December 31, 2017 $ 3,187 $ 777 $ 1,681 $ 5,645 Expenses 1,717 — 913 2,630 Cash payments / scrapped inventory (3,768 ) (73 ) (1,262 ) (5,103 ) Reserves balance as of June 30, 2018 $ 1,136 $ 704 $ 1,332 $ 3,172 |
Significant Accounting Polici19
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation. The accompanying unaudited consolidated financial statements of Polaris Industries Inc. (“Polaris” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and, therefore, do not include all information and disclosures of results of operations, financial position and changes in cash flow in conformity with accounting principles generally accepted in the United States for complete financial statements. Accordingly, such statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 previously filed with the Securities and Exchange Commission (“SEC”). In the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. Due to the seasonality trends for certain products and to certain changes in production and shipping cycles, results of such periods are not necessarily indicative of the results to be expected for the complete year. |
Fair value measurements | Fair value measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The Company utilizes the market approach to measure fair value for its non-qualified deferred compensation assets and liabilities, and the income approach for foreign currency contracts and commodity contracts. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities, and for the income approach, the Company uses significant other observable inputs to value its derivative instruments used to hedge foreign currency and commodity transactions. |
Inventories | Inventories. Inventory costs include material, labor and manufacturing overhead costs, including depreciation expense associated with the manufacture and distribution of the Company’s products. Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. |
Product warranties | Product warranties. Polaris provides a limited warranty for its vehicles for a period of six months to two years, depending on the product. 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: change in manufacturing quality, shifts in product mix, changes in warranty coverage periods, snowfall and its impact on snowmobile usage, product recalls and any significant changes in sales volume. |
New Accounting Pronouncements | New accounting pronouncements. Revenue from contracts with customers. Effective January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers , ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients using the modified retrospective approach. The adoption of these ASUs did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows as of the adoption date or for the three or six months ended June 30, 2018 . The Company has included the disclosures required by ASU 2014-09 in Note 2. Statement of cash flows. During the first quarter of 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Prior periods were retrospectively adjusted to conform to the current period’s presentation. As a result of the adoption of ASU 2016-18, the Company recorded a decrease of $1,006,000 in net cash provided by operating activities for the six months ended June 30, 2017 related to reclassifying the changes in our restricted cash balance from operating activities to the cash and cash equivalent balances within the Consolidated Statements of Cash Flows. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This ASU requires most lessees to recognize right of use assets and lease liabilities, but recognize expenses in a manner similar with current accounting standards. The standard is effective for fiscal years and interim periods beginning after December 15, 2018 and is effective for the Company’s fiscal year beginning January 1, 2019. Entities are required to use a modified retrospective approach, with early adoption permitted. The Company developed a project plan to guide the implementation of ASU 2016-02. The Company made progress on this plan including surveying the Company’s businesses, assessing the Company’s portfolio of leases, compiling information on active leases, and selecting a lease accounting software. The Company is currently identifying and implementing appropriate changes to its policies, business processes, systems and controls to support lease accounting and disclosures under Topic 842. The Company is currently evaluating the impact of this new standard on the consolidated financial statements. Derivatives and hedging. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This ASU better aligns accounting rules with a company’s risk management activities; better reflects economic results of hedging in financial statements; and simplifies hedge accounting treatment. The standard is effective for fiscal years and interim periods beginning after December 15, 2018 and is effective for the Company’s fiscal year beginning January 1, 2019, with early adoption permitted. The Company is evaluating the impact of this new standard on the financial statements. Income Taxes. The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign-sourced earnings. The Company has applied the guidance in ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, when accounting for the enactment-date effects of the Act. At June 30, 2018 , the Company has not completed its accounting for the tax effects of the Act, as the Company is in the process of analyzing certain aspects of the Act, obtaining information, and refining its calculations of the Act’s impact. There have been no material measurement period adjustments made during the three and six months ended June 30, 2018 related to the provisional amounts recorded and disclosed in the Company’s fiscal 2017 Annual Report filed on Form 10-K. The Company expects to complete the accounting for the tax effects of the Act during 2018. There are no other new accounting pronouncements that are expected to have a significant impact on the Company’s consolidated financial statements. |
Significant Accounting Polici20
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of June 30, 2018 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 54,828 $ 54,828 $ — $ — Foreign exchange contracts, net 5,931 — 5,931 — Total assets at fair value $ 60,759 $ 54,828 $ 5,931 $ — Non-qualified deferred compensation liabilities $ (54,828 ) $ (54,828 ) $ — $ — Total liabilities at fair value $ (54,828 ) $ (54,828 ) $ — $ — Fair Value Measurements as of December 31, 2017 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 54,244 $ 54,244 $ — $ — Total assets at fair value $ 54,244 $ 54,244 $ — $ — Non-qualified deferred compensation liabilities $ (54,244 ) $ (54,244 ) $ — $ — Foreign exchange contracts, net (426 ) — (426 ) — Total liabilities at fair value $ (54,670 ) $ (54,244 ) $ (426 ) $ — |
Schedule of major components of inventories | The major components of inventories are as follows (in thousands): June 30, 2018 December 31, 2017 Raw materials and purchased components $ 208,501 $ 194,108 Service parts, garments and accessories 320,396 307,684 Finished goods 443,039 329,288 Less: reserves (46,693 ) (47,119 ) Inventories $ 925,243 $ 783,961 |
Schedule of activity in the warranty reserve | The activity in the warranty reserve during the periods presented was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Balance at beginning of period $ 116,286 $ 109,852 $ 123,840 $ 119,274 Additions charged to expense 26,141 30,122 42,172 61,816 Warranty claims paid, net (36,272 ) (31,571 ) (59,857 ) (72,687 ) Balance at end of period $ 106,155 $ 108,403 $ 106,155 $ 108,403 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate the Company’s revenue by major product type and geography (in thousands): Three months ended June 30, 2018 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Consolidated Revenue by product type Wholegoods $ 820,850 $ 146,671 $ 93,550 — $ 1,061,071 PG&A 169,991 24,741 19,868 $ 226,861 441,461 Total revenue $ 990,841 $ 171,412 $ 113,418 $ 226,861 $ 1,502,532 Revenue by geography United States $ 818,318 $ 113,561 $ 49,740 $ 215,572 $ 1,197,191 Canada 68,576 10,769 10,216 11,289 100,850 EMEA 64,632 31,667 52,169 — 148,468 APLA 39,315 15,415 1,293 — 56,023 Total revenue $ 990,841 $ 171,412 $ 113,418 $ 226,861 $ 1,502,532 |
Deferred Revenue, by Arrangement, Disclosure | The activity in the deferred revenue reserve during the periods presented was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Balance at beginning of period $ 49,345 $ 30,445 $ 45,760 $ 26,157 New contracts sold 8,848 8,772 17,172 15,114 Less: reductions for revenue recognized (5,573 ) (3,029 ) (10,312 ) (5,083 ) Balance at end of period (1) $ 52,620 $ 36,188 $ 52,620 $ 36,188 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation expenses | Total share-based compensation expenses were comprised as follows (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Option plan $ 6,758 $ 5,649 $ 9,815 $ 7,071 Other share-based awards 13,847 13,018 19,736 22,110 Total share-based compensation before tax 20,605 18,667 29,551 29,181 Tax benefit 4,904 6,933 7,033 10,838 Total share-based compensation expense included in net income $ 15,701 $ 11,734 $ 22,518 $ 18,343 |
Financing Agreement (Tables)
Financing Agreement (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Capital Lease Obligations | The carrying value of debt, capital lease obligations, and notes payable and the average related interest rates were as follows (in thousands): Average interest rate at June 30, 2018 Maturity June 30, 2018 December 31, 2017 Revolving loan facility 2.98% May 2021 $ 240,000 $ 3,000 Term loan facility 3.22% May 2021 670,000 680,000 Senior notes—fixed rate 3.81% May 2018 — 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 5.22% Various through 2029 18,547 19,889 Notes payable and other 3.50% June 2027 10,875 12,384 Debt issuance costs (1,800 ) (2,261 ) Total debt, capital lease obligations, and notes payable $ 1,112,622 $ 913,012 Less: current maturities 40,120 47,746 Total long-term debt, capital lease obligations, and notes payable $ 1,072,502 $ 865,266 |
Goodwill and Other Intangible24
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets and goodwill | Goodwill and other intangible assets, net of accumulated amortization, at June 30, 2018 and December 31, 2017 are as follows (in thousands): June 30, 2018 December 31, 2017 Goodwill $ 430,705 $ 433,374 Other intangible assets, net 334,345 347,212 Total goodwill and other intangible assets, net $ 765,050 $ 780,586 |
Schedule of changes in carrying amount of goodwill | The changes in the carrying amount of goodwill for the six months ended June 30, 2018 were as follows (in thousands): Six months ended June 30, 2018 Goodwill, beginning of period $ 433,374 Currency translation effect on foreign goodwill balances (2,669 ) Goodwill, end of period $ 430,705 |
Schedule of other intangible assets, changes in net carrying amount | |
Schedule of components of other intangible assets | The components of other intangible assets were as follows (in thousands): Total estimated life (years) June 30, 2018 December 31, 2017 Non-amortizable—indefinite lived: Brand names $ 230,346 $ 230,709 Amortizable: Non-compete agreements 5 540 540 Dealer/customer related 5-10 168,419 169,694 Developed technology 5-7 22,769 22,903 Total amortizable 191,728 193,137 Less: Accumulated amortization (87,729 ) (76,634 ) Net amortized other intangible assets 103,999 116,503 Total other intangible assets, net $ 334,345 $ 347,212 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of cash dividends declared per common share | Cash dividends declared and paid per common share for the three and six months ended June 30, 2018 and 2017 , were as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Cash dividends declared and paid per common share $ 0.60 $ 0.58 $ 1.20 $ 1.16 |
Schedule of reconciliation of weighted average number of shares | A reconciliation of these amounts is as follows (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Weighted average number of common shares outstanding 62,913 62,638 62,982 62,756 Director Plan and deferred stock units 177 157 171 151 ESOP 82 100 85 105 Common shares outstanding—basic 63,172 62,895 63,238 63,012 Dilutive effect of Omnibus Plan 1,714 912 1,814 958 Common and potential common shares outstanding—diluted 64,886 63,807 65,052 63,970 |
Schedule of changes in accumulated other comprehensive income (loss) balances | Changes in the accumulated other comprehensive loss balance are as follows (in thousands): Foreign Cash Flow Retirement Benefit Plan Activity Accumulated Other Balance as of December 31, 2017 $ (42,442 ) $ (34 ) $ (3,153 ) $ (45,629 ) Reclassification to the statement of income — (2,616 ) 130 (2,486 ) Change in fair value (13,903 ) 7,725 — (6,178 ) Balance as of June 30, 2018 $ (56,345 ) $ 5,075 $ (3,023 ) $ (54,293 ) |
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 statements of income for cash flow derivatives designated as hedging instruments for the three and six months ended June 30, 2018 and 2017 (in thousands): Derivatives in Cash Flow Hedging Relationships Location of (Gain) Loss Reclassified from Accumulated Other Comprehensive Loss into Income Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Foreign currency contracts Other expense, net $ 1,937 $ 1,380 $ 2,094 $ 2,607 Foreign currency contracts Cost of sales 554 (32 ) 522 (436 ) Retirement benefit plan activity Operating expenses (45 ) — (130 ) — Total $ 2,446 $ 1,348 $ 2,486 $ 2,171 |
Derivative Instruments and He26
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of open foreign currency contracts | At June 30, 2018 , Polaris had the following open foreign currency contracts (in thousands): Foreign Currency Notional Amounts (in U.S. Dollars) Net Unrealized Gain Australian Dollar $ 17,658 $ 985 Canadian Dollar 132,052 5,336 Mexican Peso 20,760 (390 ) Total $ 170,470 $ 5,931 |
Schedule of carrying values of derivative instruments | The table below summarizes the carrying values of derivative instruments as of June 30, 2018 and December 31, 2017 (in thousands): Carrying Values of Derivative Instruments as of June 30, 2018 Fair Value— Assets Fair Value— (Liabilities) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts(1) $ 6,422 $ (491 ) $ 5,931 Total derivatives designated as hedging instruments $ 6,422 $ (491 ) $ 5,931 Total derivatives $ 6,422 $ (491 ) $ 5,931 Carrying Values of Derivative Instruments as of December 31, 2017 Fair Value— Assets Fair Value— (Liabilities) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts(1) $ 621 $ (1,047 ) $ (426 ) Total derivatives designated as hedging instruments $ 621 $ (1,047 ) $ (426 ) Total derivatives $ 621 $ (1,047 ) $ (426 ) (1) Assets are included in prepaid expenses and other and liabilities are included in other accrued expenses on the accompanying consolidated balance sheets. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Accordingly, the segment information presented below is limited to sales and gross profit data (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Sales ORV/Snowmobiles $ 990,841 $ 845,508 $ 1,823,405 $ 1,569,611 Motorcycles 171,412 197,997 302,969 318,286 Global Adjacent Markets 113,418 97,022 226,745 188,577 Aftermarket 226,861 224,393 446,886 442,228 Total sales $ 1,502,532 $ 1,364,920 $ 2,800,005 $ 2,518,702 Gross profit ORV/Snowmobiles $ 297,221 $ 266,150 $ 540,782 $ 479,109 Motorcycles 24,672 21,116 41,240 1,235 Global Adjacent Markets 28,107 21,216 59,365 49,314 Aftermarket 57,747 59,918 116,199 101,482 Corporate (22,571 ) (18,014 ) (48,929 ) (38,263 ) Total gross profit $ 385,176 $ 350,386 $ 708,657 $ 592,877 |
Victory Motorcycles Wind Down28
Victory Motorcycles Wind Down (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Group Activity | Changes to the reserves during the six months ended June 30, 2018 were as follows (in thousands): Contract termination charges Inventory charges Other costs Total Reserves balance as of December 31, 2017 $ 3,187 $ 777 $ 1,681 $ 5,645 Expenses 1,717 — 913 2,630 Cash payments / scrapped inventory (3,768 ) (73 ) (1,262 ) (5,103 ) Reserves balance as of June 30, 2018 $ 1,136 $ 704 $ 1,332 $ 3,172 Charges related to the wind down plan for the three and six months ended June 30, 2018 and 2017 within the scope of ASC 420 were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Contract termination charges $ 953 $ 3,388 $ 1,717 $ 17,695 Asset impairment charges — — — 18,760 Inventory charges — 5,229 — 12,680 Other costs 289 2,066 913 7,330 Total $ 1,242 $ 10,683 $ 2,630 $ 56,465 |
Significant Accounting Polici29
Significant Accounting Policies Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] (Deprecated 2018-01-31) | ||
Foreign exchange contracts, net | $ 54,244 | |
Debt and Capital Lease Obligations | $ 1,112,622 | 913,012 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] (Deprecated 2018-01-31) | ||
Long-term Debt, Fair Value | 1,117,197 | 922,123 |
Reported Value Measurement [Member] | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] (Deprecated 2018-01-31) | ||
Debt and Capital Lease Obligations | 1,112,622 | 913,012 |
Fair value, measurements, recurring | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] (Deprecated 2018-01-31) | ||
Foreign exchange contracts, net | 54,244 | |
Total assets at fair value | 60,759 | |
Non-qualified deferred compensation liabilities | (54,244) | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (54,828) | (54,670) |
Fair value, measurements, recurring | Supplemental Employee Retirement Plans, Defined Benefit | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] (Deprecated 2018-01-31) | ||
Non-qualified deferred compensation assets | 54,828 | 54,244 |
Non-qualified deferred compensation liabilities | (54,828) | |
Fair value, measurements, recurring | Level 1 | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] (Deprecated 2018-01-31) | ||
Total assets at fair value | 54,828 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (54,828) | (54,244) |
Fair value, measurements, recurring | Level 1 | Supplemental Employee Retirement Plans, Defined Benefit | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] (Deprecated 2018-01-31) | ||
Non-qualified deferred compensation assets | 54,828 | 54,244 |
Non-qualified deferred compensation liabilities | (54,828) | (54,244) |
Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] (Deprecated 2018-01-31) | ||
Total assets at fair value | 5,931 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | (426) |
Foreign Exchange Contract | Fair value, measurements, recurring | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] (Deprecated 2018-01-31) | ||
Foreign exchange contracts, net | 5,931 | |
Foreign Exchange Contract | Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] (Deprecated 2018-01-31) | ||
Foreign exchange contracts, net | $ 5,931 | |
Commodity contracts | Fair value, measurements, recurring | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] (Deprecated 2018-01-31) | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (426) | |
Commodity contracts | Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] (Deprecated 2018-01-31) | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ (426) |
Significant Accounting Polici30
Significant Accounting Policies Major Components of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Raw materials and purchased components | $ 208,501 | $ 194,108 |
Service parts, garments and accessories | 320,396 | 307,684 |
Finished goods | 443,039 | 329,288 |
Less: reserves | (46,693) | (47,119) |
Inventories | $ 925,243 | $ 783,961 |
Significant Accounting Polici31
Significant Accounting Policies Activity in Polaris Accrued Warranty Reserve (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Activity in Product Warranty Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 116,286 | $ 109,852 | $ 123,840 | $ 119,274 |
Additions charged to expense | 26,141 | 30,122 | 42,172 | 61,816 |
Warranty claims paid, net | (36,272) | (31,571) | (59,857) | (72,687) |
Balance at end of period | $ 106,155 | $ 108,403 | $ 106,155 | $ 108,403 |
Off Road Vehicle | ||||
Product Warranty Liability [Line Items] | ||||
Period of warranties provided by Polaris | 6 months |
Significant Accounting Polici32
Significant Accounting Policies Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles | ||
Net cash provided by (used for) operating activities | $ (165,149) | $ (263,043) |
Off Road Vehicle | ||
Product Warranty Liability [Line Items] | ||
Period of warranties provided by Polaris | 6 months | |
Motorcycles | Maximum | ||
Product Warranty Liability [Line Items] | ||
Period of warranties provided by Polaris | 2 years | |
Accounting Standard Update 2016-18 | ||
New Accounting Pronouncements and Changes in Accounting Principles | ||
Net cash provided by (used for) operating activities | $ (1,006,000) |
Significant Accounting Polici33
Significant Accounting Policies Deferred Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Deferred Revenue Arrangement [Line Items] | ||||||||
Deferred Revenue | $ 52,620,000 | $ 36,188,000 | $ 52,620,000 | $ 36,188,000 | $ 49,345,000 | $ 45,760,000 | $ 30,445,000 | $ 26,157,000 |
New contracts sold | 8,848,000 | 8,772,000 | 17,172,000 | 15,114,000 | ||||
Less: reductions for revenue recognized | (5,573,000) | (3,029,000) | (10,312,000) | (5,083,000) | ||||
Deferred Revenue, Current | 22,265,000 | 14,678,000 | 22,265,000 | 14,678,000 | ||||
Deferred Revenue, Noncurrent | $ 30,355,000 | $ 21,510,000 | $ 30,355,000 | $ 21,510,000 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | 6 Months Ended | |||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Deferred Revenue Arrangement [Line Items] | ||||||
Deferred Revenue | $ 52,620,000 | $ 49,345,000 | $ 45,760,000 | $ 36,188,000 | $ 30,445,000 | $ 26,157,000 |
Deferred Revenue, Current | 22,265,000 | 14,678,000 | ||||
Deferred Revenue, Noncurrent | $ 30,355,000 | $ 21,510,000 | ||||
Transamerican Auto Parts [Member] | Tires And Other [Member] | Minimum | ||||||
Deferred Revenue Arrangement [Line Items] | ||||||
Standard Product Warranty Time Period | 2 years | |||||
Transamerican Auto Parts [Member] | Tires And Other [Member] | Maximum | ||||||
Deferred Revenue Arrangement [Line Items] | ||||||
Standard Product Warranty Time Period | 5 years |
Revenue Recognition (Contract R
Revenue Recognition (Contract Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,502,532 | $ 2,800,005 |
ORV/Snowmobiles | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 990,841 | 1,823,405 |
Motorcycles | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 171,412 | 302,969 |
Global Adjacent Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 113,418 | 226,745 |
Aftermarket | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 226,861 | 446,886 |
Wholegoods | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,061,071 | 1,950,694 |
Wholegoods | ORV/Snowmobiles | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 820,850 | 1,504,353 |
Wholegoods | Motorcycles | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 146,671 | 260,779 |
Wholegoods | Global Adjacent Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 93,550 | 185,562 |
Wholegoods | Aftermarket | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
PG&A | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 441,461 | 849,311 |
PG&A | ORV/Snowmobiles | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 169,991 | 319,052 |
PG&A | Motorcycles | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 24,741 | 42,190 |
PG&A | Global Adjacent Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 19,868 | 41,183 |
PG&A | Aftermarket | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 226,861 | 446,886 |
UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,197,191 | 2,204,731 |
UNITED STATES | ORV/Snowmobiles | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 818,318 | 1,480,913 |
UNITED STATES | Motorcycles | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 113,561 | 197,458 |
UNITED STATES | Global Adjacent Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 49,740 | 99,794 |
UNITED STATES | Aftermarket | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 215,572 | 426,566 |
CANADA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 100,850 | 179,945 |
CANADA | ORV/Snowmobiles | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 68,576 | 126,331 |
CANADA | Motorcycles | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 10,769 | 17,709 |
CANADA | Global Adjacent Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 10,216 | 15,585 |
CANADA | Aftermarket | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 11,289 | 20,320 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 148,468 | 310,988 |
EMEA | ORV/Snowmobiles | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 64,632 | 143,561 |
EMEA | Motorcycles | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 31,667 | 58,338 |
EMEA | Global Adjacent Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 52,169 | 109,089 |
EMEA | Aftermarket | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
APLA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 56,023 | 104,341 |
APLA | ORV/Snowmobiles | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 39,315 | 72,600 |
APLA | Motorcycles | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 15,415 | 29,464 |
APLA | Global Adjacent Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,293 | 2,277 |
APLA | Aftermarket | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 0 | $ 0 |
Revenue Recognition (Deferred R
Revenue Recognition (Deferred Revenue) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue Recognition [Abstract] | ||||
Balance at beginning of period | $ 49,345,000 | $ 30,445,000 | $ 45,760,000 | $ 26,157,000 |
New contracts sold | 8,848,000 | 8,772,000 | 17,172,000 | 15,114,000 |
Less: reductions for revenue recognized | (5,573,000) | (3,029,000) | (10,312,000) | (5,083,000) |
Balance at end of period | $ 52,620,000 | $ 36,188,000 | $ 52,620,000 | $ 36,188,000 |
Share-Based Compensation Expens
Share-Based Compensation Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Option plan | $ 6,758 | $ 5,649 | $ 9,815 | $ 7,071 |
Other share-based awards | 13,847 | 13,018 | 19,736 | 22,110 |
Total share-based compensation before tax | 20,605 | 18,667 | 29,551 | 29,181 |
Tax benefit | 4,904 | 6,933 | 7,033 | 10,838 |
Total share-based compensation expense included in net income | $ 15,701 | $ 11,734 | $ 22,518 | $ 18,343 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unrecognized compensation cost related to unvested share-based equity awards | $ 134,342 |
Weighted average period of recognition of unvested share-based equity awards | 1 year 8 months |
Unrecognized compensation cost related to unvested share-based equity awards, stock options | $ 37,441 |
Unrecognized compensation cost related to unvested share-based equity awards, restricted stock | $ 96,901 |
Financing Arrangements, Interes
Financing Arrangements, Interest Rates and Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Effective interest rate | 5.22% | |
Capital lease obligations | $ 18,547 | $ 19,889 |
Debt issuance costs | (1,800) | (2,261) |
Total debt, capital lease obligations, and notes payable | 1,112,622 | 913,012 |
Less: current maturities | 40,120 | 47,746 |
Total long-term debt, capital lease obligations, and notes payable | $ 1,072,502 | 865,266 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 2.98% | |
Senior Notes | Senior Unsecured Notes 3.81% Due May 2018 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.81% | |
Long-term debt | $ 0 | 25,000 |
Senior Notes | Senior Unsecured Notes 4.60% Due May 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.60% | |
Long-term debt | $ 75,000 | 75,000 |
Senior Notes | Senior Unsecured Notes 3.13% Due December 2020 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.13% | |
Long-term debt | $ 100,000 | 100,000 |
Notes payable and other | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.50% | |
Long-term debt | $ 10,875 | 12,384 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving loan facility | $ 240,000 | 3,000 |
Term loan | ||
Debt Instrument [Line Items] | ||
Average interest rate at June 30, 2018 | 3.22% | |
Revolving loan facility | $ 670,000 | $ 680,000 |
Financing Agreement - Additiona
Financing Agreement - Additional Information (Detail) - USD ($) | 1 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2010 | Jun. 30, 2018 | Dec. 31, 2017 | Nov. 30, 2016 | Sep. 30, 2015 | Aug. 31, 2011 | |
Senior Notes | Senior Unsecured Notes 3.81% Due May 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Debt | $ 25,000,000 | ||||||
Mortgage note payable | $ 0 | $ 25,000,000 | |||||
Senior Notes | Senior Unsecured Notes 4.60% Due May 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Debt | $ 75,000,000 | ||||||
Mortgage note payable | 75,000,000 | 75,000,000 | |||||
Senior Notes | Senior Unsecured Notes 3.13% Due December 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Debt | $ 100,000,000 | ||||||
Mortgage note payable | 100,000,000 | 100,000,000 | |||||
Notes payable and other | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage note payable | 10,875,000 | 12,384,000 | |||||
Notes payable and other | Mortgages [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Mortgage note payable | 10,875,000 | $ 14,500,000 | |||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 600,000,000 | $ 500,000,000 | $ 350,000,000 | ||||
Revolving loan facility | 240,000,000 | 3,000,000 | |||||
Term loan | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 750,000,000 | ||||||
Debt Instrument, Face Amount | 500,000,000 | ||||||
Revolving loan facility | 670,000,000 | $ 680,000,000 | |||||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | $ 37,500,000 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
Intangible Assets, Net (Excluding Goodwill) | $ 334,345 | $ 347,212 |
Intangible Assets, Net (Including Goodwill) | 765,050 | $ 780,586 |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 433,374 | |
Currency translation effect on foreign goodwill balances | (2,669) | |
Goodwill, end of period | $ 430,705 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets Components of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Amortizable: | ||
Gross amortized other intangible assets | $ 191,728 | $ 193,137 |
Accumulated Amortization | (87,729) | (76,634) |
Net amortized other intangible assets | 103,999 | 116,503 |
Total other intangible assets, net | $ 334,345 | 347,212 |
Non-compete agreements | ||
Amortizable: | ||
Total estimated life | 5 years | |
Gross amortized other intangible assets | $ 540 | 540 |
Dealer/customer related | ||
Amortizable: | ||
Gross amortized other intangible assets | $ 168,419 | 169,694 |
Dealer/customer related | Minimum | ||
Amortizable: | ||
Total estimated life | 5 years | |
Dealer/customer related | Maximum | ||
Amortizable: | ||
Total estimated life | 10 years | |
Developed technology | ||
Amortizable: | ||
Gross amortized other intangible assets | $ 22,769 | 22,903 |
Developed technology | Minimum | ||
Amortizable: | ||
Total estimated life | 5 years | |
Developed technology | Maximum | ||
Amortizable: | ||
Total estimated life | 7 years | |
Brand names | ||
Non-amortizable—indefinite lived: | ||
Non-amortizable, Net | $ 230,346 | $ 230,709 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 430,705 | $ 433,374 | |
Total other intangible assets, net | 334,345 | $ 347,212 | |
Amortization expense of intangible assets | $ 6,238 | ||
Estimated Future Amortization Expense by Fiscal Year [Abstract] | |||
Remainder of 2016 | 11,800 | ||
2,017 | 22,300 | ||
2,018 | 17,300 | ||
2,019 | 14,400 | ||
2,020 | 9,800 | ||
2,021 | 7,600 | ||
After 2,021 | $ 20,800 |
Shareholders' Equity Cash Divid
Shareholders' Equity Cash Dividends Declared Per Common Share (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity [Abstract] | ||||
Cash dividends declared and paid per common share (in dollars per share) | $ 0.6 | $ 0.58 | $ 1.2 | $ 1.16 |
Shareholders' Equity Reconcilia
Shareholders' Equity Reconciliation of Weighted Average Number of Shares (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity [Abstract] | ||||
Weighted average number of common shares outstanding | 62,913 | 62,638 | 62,982 | 62,756 |
Director Plan and deferred stock units | 177 | 157 | 171 | 151 |
ESOP | 82 | 100 | 85 | 105 |
Common shares outstanding—basic | 63,172 | 62,895 | 63,238 | 63,012 |
Dilutive effect of Omnibus Plan | 1,714 | 912 | 1,814 | 958 |
Common and potential common shares outstanding—diluted | 64,886 | 63,807 | 65,052 | 63,970 |
Shareholders' Equity Changes in
Shareholders' Equity Changes in Accumulated Other Comprehensive Income (Loss) Balances (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance as of December 31, 2017 | $ (45,629) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (2,486) | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ (24,881) | $ 17,020 | (13,903) | $ 30,436 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (6,178) | |||
Balance as of June 30, 2018 | (54,293) | (54,293) | ||
Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance as of December 31, 2017 | (42,442) | |||
Balance as of June 30, 2018 | (56,345) | (56,345) | ||
Cash Flow Hedging | Foreign Exchange Contract | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance as of December 31, 2017 | (34) | |||
Reclassification to the statement of income | (2,616) | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 7,725 | |||
Balance as of June 30, 2018 | 5,075 | 5,075 | ||
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance as of December 31, 2017 | (3,153) | |||
Reclassification to the statement of income | 130 | |||
Balance as of June 30, 2018 | $ (3,023) | $ (3,023) |
Shareholders' Equity Gains and
Shareholders' Equity Gains and Losses, Net of Tax Reclassified from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI Into Income | $ 2,446 | $ 1,348 | $ 2,486 | $ 2,171 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,486 | |||
Foreign Exchange Contract | Other expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI Into Income | 1,937 | 1,380 | 2,094 | 2,607 |
Foreign Exchange Contract | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI Into Income | 554 | (32) | $ 522 | $ (436) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 45 | $ 0 |
Shareholders' Equity Additional
Shareholders' Equity Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity [Abstract] | ||||
Repurchase and retirement of common stock | $ 192,367 | |||
Repurchase and retirement of common stock (shares) | 1,562,000 | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 4,874,000 | 4,874,000 | ||
Cash dividend paid during period, per share (in dollars per share) | $ 0.6 | $ 0.58 | $ 1.2 | $ 1.16 |
Common stock excluded from calculation of diluted earnings per share (shares) | 1,812,000 | 3,626,000 |
Financial Services Arrangemen49
Financial Services Arrangements - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investments in and Advances to Affiliates [Line Items] | ||
Investment in affiliates | $ 92,954 | $ 88,764 |
Trade receivables, net | 190,343 | $ 200,144 |
Aggregate repurchase obligation, amount | $ 164,969 | |
Maximum | ||
Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation, percentage | 15.00% | |
Polaris Acceptance | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity method investment ownership percentage | 50.00% | |
Net amount financed for dealers | $ 1,172,207 | |
Trade receivables, net | 539,732 | |
Securitization Facility | ||
Investments in and Advances to Affiliates [Line Items] | ||
Outstanding balance of receivables | $ 632,475 |
Investment in Other Affiliates
Investment in Other Affiliates Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Investments in and Advances to Affiliates [Line Items] | |||||
Equity Method Investment, Other than Temporary Impairment | $ 19,000 | ||||
Investments in and advances to affiliates | $ 0 | 0 | $ 18,616 | ||
Income (loss) from equity method investments | $ (3,954) | $ (1,336) | (25,465) | $ (3,236) | |
Cost-method Investments, Realized Gains | $ 13,000 | ||||
Eicher -Polaris Private Limited | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Equity method investment ownership percentage | 50.00% | 50.00% | |||
Period for proportionate share of income (loss) to be reflected in consolidated financials | 1 month |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Accrual for the probable payment of pending claims | $ 49,195,000 |
Payments for legal settlements | $ 27,250,000 |
Derivative Instruments and He52
Derivative Instruments and Hedging Activities Open Foreign Currency Contracts (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Net Unrealized Gain | $ 5,931 | $ (426) |
Cash Flow Hedging | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. Dollars) | 170,470 | |
Net Unrealized Gain | 5,931 | |
Cash Flow Hedging | Foreign Exchange Contract | Australian Dollar | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. Dollars) | 17,658 | |
Net Unrealized Gain | 985 | |
Cash Flow Hedging | Foreign Exchange Contract | Canadian Dollar | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. Dollars) | 132,052 | |
Net Unrealized Gain | 5,336 | |
Cash Flow Hedging | Foreign Exchange Contract | Mexican Peso | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. Dollars) | 20,760 | |
Net Unrealized Gain | $ (390) |
Derivative Instruments and He53
Derivative Instruments and Hedging Activities Carrying Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Derivative Net Carrying Value | $ 5,931 | $ (426) | |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative Net Carrying Value | 5,931 | (426) | |
Designated as Hedging Instrument | Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Derivative Net Carrying Value | [1] | 5,931 | (426) |
Prepaid Expenses And Other Current Assets | |||
Derivative [Line Items] | |||
Fair Value— Assets | 6,422 | 621 | |
Prepaid Expenses And Other Current Assets | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Fair Value— Assets | 6,422 | 621 | |
Prepaid Expenses And Other Current Assets | Designated as Hedging Instrument | Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Fair Value— Assets | [1] | 6,422 | 621 |
Other Current Liabilities | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | (491) | (1,047) | |
Other Current Liabilities | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | (491) | (1,047) | |
Other Current Liabilities | Designated as Hedging Instrument | Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | [1] | $ (491) | $ (1,047) |
[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 He54
Derivative Instruments and Hedging Activities Additional Information (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Commodity contracts | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Gain (loss) on sale of derivatives | $ 580 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Operating Segments | segment | 5 | |||
Sales | $ 1,502,532 | $ 1,364,920 | $ 2,800,005 | $ 2,518,702 |
Gross profit | 385,176 | 350,386 | $ 708,657 | 592,877 |
Number of Reportable Segments | segment | 4 | |||
Operating segments | ORV/Snowmobiles | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 990,841 | 845,508 | $ 1,823,405 | 1,569,611 |
Gross profit | 297,221 | 266,150 | 540,782 | 479,109 |
Operating segments | Motorcycles | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 171,412 | 197,997 | 302,969 | 318,286 |
Gross profit | 24,672 | 21,116 | 41,240 | 1,235 |
Operating segments | Global Adjacent Markets | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 113,418 | 97,022 | 226,745 | 188,577 |
Gross profit | 28,107 | 21,216 | 59,365 | 49,314 |
Operating segments | Aftermarket | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 226,861 | 224,393 | 446,886 | 442,228 |
Gross profit | 57,747 | 59,918 | 116,199 | 101,482 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | $ (22,571) | $ (18,014) | $ (48,929) | $ (38,263) |
Victory Motorcycles Wind Down56
Victory Motorcycles Wind Down (Narrative) (Details) - Victory Motorcycles - Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Charges related to the wind down plan | $ 1,242 | $ 56,465 | $ 10,683 | |
Liability balance | $ 3,172 | 3,172 | $ 5,645 | |
Minimum | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Estimated charges | $ 10,000 |
Victory Motorcycles Wind Down57
Victory Motorcycles Wind Down (Wind Down Charges) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Victory Motorcycles | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Charges related to the wind down plan | $ 1,242 | $ 56,465 | $ 10,683 |
Victory Motorcycles Wind Down58
Victory Motorcycles Wind Down (Liability Balance) (Details) - Victory Motorcycles - Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Disposal Group, Including Discontinued Operation, Liabilities [Roll Forward] | |
Reserves balance as of December 31, 2017 | $ 5,645 |
Expenses | 2,630 |
Cash payments / scrapped inventory | (5,103) |
Reserves balance as of June 30, 2018 | 3,172 |
Contract termination charges | |
Disposal Group, Including Discontinued Operation, Liabilities [Roll Forward] | |
Reserves balance as of December 31, 2017 | 3,187 |
Expenses | 1,717 |
Cash payments / scrapped inventory | (3,768) |
Reserves balance as of June 30, 2018 | 1,136 |
Inventory charges | |
Disposal Group, Including Discontinued Operation, Liabilities [Roll Forward] | |
Reserves balance as of December 31, 2017 | 777 |
Expenses | 0 |
Cash payments / scrapped inventory | (73) |
Reserves balance as of June 30, 2018 | 704 |
Other costs | |
Disposal Group, Including Discontinued Operation, Liabilities [Roll Forward] | |
Reserves balance as of December 31, 2017 | 1,681 |
Expenses | 913 |
Cash payments / scrapped inventory | (1,262) |
Reserves balance as of June 30, 2018 | $ 1,332 |