Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 07, 2019 | Jun. 29, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document fiscal year focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PII | ||
Entity Registrant Name | POLARIS INDUSTRIES INC/MN | ||
Entity Central Index Key | 931,015 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 60,960,672 | ||
Entity Public Float | $ 7,601,247,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 161,164 | $ 138,345 |
Trade receivables, net | 197,082 | 200,144 |
Inventories, net | 969,511 | 783,961 |
Prepaid expenses and other | 121,472 | 101,453 |
Income taxes receivable | 36,474 | 29,601 |
Total current assets | 1,485,703 | 1,253,504 |
Land, buildings and improvements | 462,224 | 410,604 |
Equipment and tooling | 1,245,312 | 1,137,183 |
Property and equipment, gross | 1,707,536 | 1,547,787 |
Less: accumulated depreciation | (864,414) | (800,598) |
Property and equipment, net | 843,122 | 747,189 |
Investment in finance affiliate | 92,059 | 88,764 |
Deferred tax assets | 87,474 | 115,511 |
Goodwill and other intangible assets, net | 1,517,594 | 780,586 |
Other long-term assets | 98,963 | 104,039 |
Total assets | 4,124,915 | 3,089,593 |
Current liabilities: | ||
Current portion of debt, capital lease obligations, and notes payable | 66,543 | 47,746 |
Accounts payable | 346,294 | 317,377 |
Accrued expenses: | ||
Compensation | 167,857 | 168,014 |
Warranties | 121,824 | 123,840 |
Sales promotions and incentives | 167,621 | 162,298 |
Dealer holdback | 125,003 | 114,196 |
Other | 197,687 | 186,103 |
Income taxes payable | 4,545 | 10,737 |
Total current liabilities | 1,197,374 | 1,130,311 |
Long-term income taxes payable | 28,602 | 20,114 |
Capital lease obligations | 16,140 | 18,351 |
Long-term debt | 1,879,887 | 846,915 |
Deferred tax liabilities | 6,490 | 10,128 |
Other long-term liabilities | 122,570 | 120,398 |
Total liabilities | 3,251,063 | 2,146,217 |
Deferred compensation | 6,837 | 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, 60,890 and 63,075 shares issued and outstanding, respectively | 609 | 631 |
Additional paid-in capital | 807,986 | 733,894 |
Retained earnings | 121,393 | 242,763 |
Accumulated other comprehensive loss, net | (62,973) | (45,629) |
Total shareholders’ equity | 867,015 | 931,659 |
Total liabilities and shareholders’ equity | $ 4,124,915 | $ 3,089,593 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 | 60,890,000 | 63,075,000 |
Common stock, shares outstanding | 60,890,000 | 63,075,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sales | $ 6,078,540 | $ 5,428,477 | $ 4,516,629 |
Cost of sales | 4,577,340 | 4,103,826 | 3,411,006 |
Gross profit | 1,501,200 | 1,324,651 | 1,105,623 |
Operating expenses: | |||
Selling and marketing | 491,773 | 471,805 | 342,235 |
Research and development | 259,682 | 238,299 | 185,126 |
General and administrative | 349,763 | 331,196 | 306,442 |
Total operating expenses | 1,101,218 | 1,041,300 | 833,803 |
Operating income | 487,412 | 359,657 | 350,278 |
Non-operating expense: | |||
Interest expense | 56,967 | 32,155 | 16,319 |
Equity in loss of other affiliates | 29,252 | 6,760 | 6,873 |
Other (income) expense, net | (28,056) | 1,951 | 13,835 |
Income before income taxes | 429,249 | 318,791 | 313,251 |
Provision for income taxes | 93,992 | 146,299 | 100,303 |
Net income | $ 335,257 | $ 172,492 | $ 212,948 |
Net income per share: | |||
Basic (in dollars per share) | $ 5.36 | $ 2.74 | $ 3.31 |
Diluted (in dollars per share) | $ 5.24 | $ 2.69 | $ 3.27 |
Weighted average shares outstanding: | |||
Basic (in shares) | 62,513 | 62,916 | 64,296 |
Diluted (in shares) | 63,949 | 64,180 | 65,158 |
Financial Service [Member] | |||
Sales | $ 87,430 | $ 76,306 | $ 78,458 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 335,257 | $ 172,492 | $ 212,948 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (18,062) | 41,691 | (19,773) |
Unrealized gain (loss) on derivative instruments | 457 | (330) | (1,572) |
Retirement benefit plan activity | 261 | (3,153) | 0 |
Comprehensive income | $ 317,913 | $ 210,700 | $ 191,603 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2015 | $ 981,477 | $ 653 | $ 596,143 | $ 447,173 | $ (62,492) |
Beginning Balance (in shares) at Dec. 31, 2015 | 65,309 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Employee stock compensation | 57,927 | $ 3 | 57,924 | ||
Deferred compensation | 917 | (1,379) | 462 | ||
Employee stock compensation (in shares) | 303 | ||||
Proceeds from stock issuances under employee plans | 17,690 | $ 4 | 17,686 | ||
Proceeds from stock issuances under employee plans (in shares) | 405 | ||||
Tax effect of exercise of stock options | 3,578 | 3,578 | |||
Cash dividends declared ($2.32 per share, $2.20 per share and $2.12 per share in 2017, 2016, and 2015 respectively) | (140,336) | 140,336 | |||
Repurchase and retirement of common shares | $ (245,816) | $ 29 | 26,548 | 219,239 | |
Repurchase and retirement of common shares (in shares) | (2,908) | 2,908 | |||
Net income | $ 212,948 | 212,948 | |||
Other comprehensive income | (21,345) | (21,345) | |||
Ending Balance at Dec. 31, 2016 | 867,040 | $ 631 | 650,162 | 300,084 | (83,837) |
Ending Balance (in shares) at Dec. 31, 2016 | 63,109 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Employee stock compensation | 50,054 | $ 1 | 50,053 | ||
Deferred compensation | (2,989) | (1,536) | 4,525 | ||
Employee stock compensation (in shares) | 60 | ||||
Proceeds from stock issuances under employee plans | 42,738 | $ 9 | 42,729 | ||
Proceeds from stock issuances under employee plans (in shares) | 934 | ||||
Cash dividends declared ($2.32 per share, $2.20 per share and $2.12 per share in 2017, 2016, and 2015 respectively) | (145,423) | 145,423 | |||
Repurchase and retirement of common shares | $ (90,461) | $ 10 | 10,586 | 79,865 | |
Repurchase and retirement of common shares (in shares) | (1,028) | 1,028 | |||
Net income | $ 172,492 | 172,492 | |||
Other comprehensive income | 38,208 | 38,208 | |||
Ending Balance at Dec. 31, 2017 | 931,659 | $ 631 | 733,894 | 242,763 | (45,629) |
Ending Balance (in shares) at Dec. 31, 2017 | 63,075 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Employee stock compensation | 63,966 | $ 2 | 63,964 | ||
Deferred compensation | 4,880 | (111) | (4,769) | ||
Employee stock compensation (in shares) | 245 | ||||
Proceeds from stock issuances under employee plans | 47,092 | $ 8 | 47,084 | ||
Proceeds from stock issuances under employee plans (in shares) | 754 | ||||
Cash dividends declared ($2.32 per share, $2.20 per share and $2.12 per share in 2017, 2016, and 2015 respectively) | (149,032) | 149,032 | |||
Repurchase and retirement of common shares | $ (348,663) | $ 32 | 37,066 | 311,565 | |
Repurchase and retirement of common shares (in shares) | (3,184) | 3,184 | |||
Other activity | $ (800) | (1) | (799) | ||
Net income | 335,257 | 335,257 | |||
Other comprehensive income | (17,344) | (17,344) | |||
Ending Balance at Dec. 31, 2018 | $ 867,015 | $ 609 | $ 807,986 | $ 121,393 | $ (62,973) |
Ending Balance (in shares) at Dec. 31, 2018 | 60,890 |
Consolidated Statements Of Sh_2
Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared, per share | $ 2.40 | $ 2.32 | $ 2.20 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities: | |||
Net income | $ 335,257 | $ 172,492 | $ 212,948 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 211,036 | 191,108 | 167,512 |
Noncash compensation | 63,966 | 50,054 | 57,927 |
Noncash income from financial services | (30,130) | (27,027) | (30,116) |
Deferred income taxes | 23,440 | 73,614 | (26,056) |
Excess tax benefits from share-based compensation | 0 | 0 | (3,578) |
Other than Temporary Impairment Losses, Investments | 24,263 | 25,395 | 0 |
Other, net | (8,489) | 3,401 | 13,462 |
Changes in operating assets and liabilities: | |||
Trade receivables | 20,686 | (17,064) | 2,030 |
Inventories | (149,701) | (26,958) | 111,999 |
Accounts payable | (984) | 39,516 | (62,693) |
Accrued expenses | 7,170 | 94,557 | 145,261 |
Income taxes payable/receivable | (4,490) | 23,410 | (1,997) |
Prepaid expenses and other, net | (14,912) | (17,090) | 2,929 |
Net cash provided by operating activities | 477,112 | 585,408 | 589,628 |
Investing Activities: | |||
Purchase of property and equipment | (225,414) | (184,388) | (209,137) |
Investment in finance affiliate | (12,289) | (25,230) | (8,641) |
Distributions from finance affiliate | 39,125 | 57,502 | 43,820 |
Investment in other affiliates | (1,113) | (625) | (11,595) |
Acquisition and disposal of businesses, net of cash acquired | (759,801) | 1,645 | (723,705) |
Net cash used for investing activities | (959,492) | (151,096) | (909,258) |
Financing Activities: | |||
Borrowings under debt arrangements / capital lease obligations | 3,553,237 | 2,186,939 | 3,232,137 |
Repayments under debt arrangements / capital lease obligations | (2,579,495) | (2,421,473) | (2,552,760) |
Repurchase and retirement of common shares | (348,663) | (90,461) | (245,816) |
Cash dividends to shareholders | (149,032) | (145,423) | (140,336) |
Excess tax benefits from share-based compensation | 0 | 0 | 3,578 |
Proceeds from stock issuances under employee plans | 47,371 | 42,738 | 17,690 |
Net cash provided by (used for) financing activities | 523,418 | (427,680) | 314,493 |
Impact of currency exchange rates on cash balances | (9,530) | 9,816 | (5,042) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 31,508 | 16,448 | (10,179) |
Cash, cash equivalents and restricted cash at beginning of period | 161,618 | 145,170 | 155,349 |
Cash, cash equivalents and restricted cash at end of period | 193,126 | 161,618 | 145,170 |
Supplemental Cash Flow Information: | |||
Interest paid on debt borrowings | 51,014 | 30,884 | 15,833 |
Income taxes paid | 73,999 | 46,308 | 126,799 |
Total | $ 161,618 | $ 145,170 | $ 155,349 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Organization and Significant Accounting Policies Polaris Industries Inc. (“Polaris” or the “Company”), a Minnesota corporation, and its subsidiaries are engaged in the design, engineering, manufacturing and marketing of innovative, high-quality, high-performance Off-Road Vehicles (ORV), Snowmobiles, Motorcycles, Global Adjacent Markets vehicles, and Boats. Polaris products, together with related parts, garments and accessories, as well as aftermarket accessories and apparel, are sold worldwide through a network of independent dealers and distributors, retail stores and its subsidiaries. The primary markets for the Company’s products are the United States, Canada, Western Europe, Australia and Mexico. Basis of presentation. The accompanying consolidated financial statements include the accounts of Polaris and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Income from financial services is reported as a component of operating income to better reflect income from ongoing operations, of which financial services has a significant impact. The Company evaluates consolidation of entities under Accounting Standards Codification (ASC) Topic 810. This Topic requires management to evaluate whether an entity or interest is a variable interest entity and whether the company is the primary beneficiary. Polaris used the guidelines to analyze the Company’s relationships, including its relationship with Polaris Acceptance, and concluded that there were no variable interest entities requiring consolidation by the Company. Use of estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate results could differ from those estimates. Fair value measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The Company utilizes the market approach to measure fair value for its non-qualified deferred compensation assets and liabilities, and the income approach for the foreign currency contracts and commodity contracts. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities, and for the income approach the Company uses significant other observable inputs to value its derivative instruments used to hedge interest rate volatility, foreign currency and commodity transactions. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of December 31, 2018 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48,545 $ 48,545 $ — $ — Foreign exchange contracts, net 3,128 — 3,128 — Total assets at fair value $ 51,673 $ 48,545 $ 3,128 $ — Non-qualified deferred compensation liabilities $ (48,545 ) $ (48,545 ) $ — $ — Interest rate contracts, net (2,665 ) — (2,665 ) — Total liabilities at fair value $ (51,210 ) $ (48,545 ) $ (2,665 ) $ — 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 December 31, 2018 and December 31, 2017 , the fair value of the Company’s long-term debt, capital lease obligations and notes payable was approximately $2,013,684,000 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 $1,962,570,000 and $913,012,000 as of December 31, 2018 and December 31, 2017 , respectively. Polaris measures certain assets and liabilities at fair value on a nonrecurring basis. Assets acquired and liabilities assumed as part of acquisitions are measured at fair value. Refer to Notes 3 and 7 for additional information. Polaris will impair or write off an investment and recognize a loss when events or circumstances indicate there is impairment in the investment that is other-than-temporary. The amount of loss is determined by measuring the investment at fair value. Refer to Note 11 for additional information. Cash equivalents. Polaris considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. Such investments consist principally of money market mutual funds. Restricted cash and cash equivalents. The Company classifies amounts of cash and cash equivalents that are restricted in terms of their use and withdrawal separately within other long-term assets on the consolidated balance sheets. Allowance for doubtful accounts. Polaris’ financial exposure to collection of accounts receivable is limited due to its agreements with certain finance companies. For receivables not serviced through these finance companies, the Company provides a reserve for doubtful accounts based on historical rates and trends. This reserve is adjusted periodically as information about specific accounts becomes available. Inventories. Inventory costs include material, labor, and manufacturing overhead costs, including depreciation expense associated with the manufacture and distribution of the Company’s products. Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. The major components of inventories are as follows (in thousands): December 31, 2018 December 31, 2017 Raw materials and purchased components $ 233,258 $ 194,108 Service parts, garments and accessories 342,593 307,684 Finished goods 442,003 329,288 Less: reserves (48,343 ) (47,119 ) Inventories $ 969,511 $ 783,961 Investment in finance affiliate. The caption investment in finance affiliate in the consolidated balance sheets represents Polaris’ fifty percent equity interest in Polaris Acceptance, a partnership agreement between Wells Fargo Commercial Distribution Finance Corporation and one of Polaris’ wholly-owned subsidiaries. Polaris Acceptance provides floor plan financing to Polaris dealers in the United States. Polaris’ investment in Polaris Acceptance is accounted for under the equity method, and is recorded as investment in finance affiliate in the consolidated balance sheets. Polaris’ allocable share of the income of Polaris Acceptance has been included as a component of income from financial services in the consolidated statements of income. Refer to Note 10 for additional information regarding Polaris’ investment in Polaris Acceptance. Investment in other affiliates. Polaris’ investment in other affiliates is included within Other long-term assets in the consolidated balance sheets, and represents the Company’s investment in nonmarketable securities of strategic companies. For each investment, Polaris assesses the level of influence in determining whether to account for the investment under the cost method or equity method. For equity method investments, Polaris’ proportionate share of income or losses is recorded in the consolidated statements of income. Polaris will write down or write off an investment and recognize a loss if and when events or circumstances indicate there is impairment in the investment that is other-than-temporary. Refer to Note 11 for additional information regarding Polaris’ investment in other affiliates. Property and equipment. Property and equipment is stated at cost. Depreciation is provided using the straight-line method over the estimated useful life of the respective assets, ranging from 10 - 40 years for buildings and improvements and from 1 - 7 years for equipment and tooling. Depreciation of assets recorded under capital leases is included with depreciation expense. Fully depreciated tooling is eliminated from the accounting records annually. Goodwill and other intangible assets. Goodwill represents the excess of the cost of acquired businesses over the net of the fair value of identifiable tangible net assets and identifiable intangible assets purchased and liabilities assumed. Goodwill is tested at least annually for impairment and is tested for impairment more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test is performed using a two-step process. In the first step, the fair value of each reporting unit is compared with the carrying amount of the reporting unit, including goodwill. The fair value of each reporting unit is determined using a discounted cash flow analysis and market approach. If the estimated fair value is less than the carrying amount of the reporting unit there is an indication that goodwill impairment exists and a second step must be completed in order to determine the amount of the goodwill impairment, if any, that should be recorded. In the second step, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The Company completes its annual goodwill impairment evaluation as of the first day of the fourth quarter. The Company’s primary identifiable intangible assets include: dealer/customer relationships, brand/trade names, developed technology, and non-compete agreements. Identifiable intangibles with finite lives are amortized and those identifiable intangibles with indefinite lives are not amortized. Identifiable intangible assets that are subject to amortization are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Identifiable intangible assets not subject to amortization are tested for impairment annually or more frequently if events warrant. The impairment test consists of a comparison of the fair value of the trade name with its carrying value. The Company completes its annual impairment test as of the first day of the fourth quarter each year for those identifiable assets not subject to amortization. Refer to Note 7 for additional information regarding goodwill and other intangible assets. Revenue recognition. 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, for services, 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. The amount of consideration the Company receives and revenue it recognizes varies with changes in marketing incentives and rebates it offers to its dealers and their customers. Historically, product returns, whether in the normal course of business or resulting from repurchases made under the floorplan financing program, have not been material. However, the Company has agreed to repurchase products repossessed by the finance companies up to certain limits. The Company’s financial exposure is limited to the difference between the amount paid to the finance companies and the amount received on the resale of the repossessed product. No material losses have been incurred under these agreements. The Company has not historically recorded any significant sales return allowances because the Company has not been required to repurchase a significant number of units. However, an adverse change in retail sales could cause this situation to change. Refer to Note 2 for additional information regarding revenue. Sales promotions and incentives. Polaris provides for estimated sales promotion and incentive expenses, which are recognized as a component of sales in measuring the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Examples of sales promotion and incentive programs include dealer and consumer rebates, volume incentives, retail financing programs and sales associate incentives. Sales promotion and incentive expenses are estimated based on current programs and historical rates for each product line. The Company records these amounts as a liability in the consolidated balance sheet until they are ultimately paid. Actual results may differ from these estimates if market conditions dictate the need to enhance or reduce sales promotion and incentive programs or if the customer usage rate varies from historical trends. Adjustments to sales promotions and incentives accruals are made from time to time as actual usage becomes known in order to properly estimate the amounts necessary to generate consumer demand based on market conditions as of the balance sheet date. Historically, sales promotion and incentive expenses have been within the Company’s expectations and differences have not been material. Dealer holdback programs. Dealer holdback represents a portion of the invoiced sales price that is expected to be subsequently returned to the dealer or distributor as a sales incentive upon the ultimate retail sale of the product. Holdback amounts reduce the ultimate net price of the products purchased by Polaris’ dealers or distributors and, therefore, reduce the amount of sales Polaris recognizes at the time of shipment. The portion of the invoiced sales price estimated as the holdback is recognized as “dealer holdback” liability on the Company’s balance sheet until paid or forfeited. The minimal holdback adjustments in the estimated holdback liability due to forfeitures are recognized in net sales. Payments are made to dealers or distributors at various times during the year subject to previously established criteria. Shipping and handling costs. Polaris records shipping and handling costs as a component of cost of sales at the time the product is shipped. Research and development expenses. Polaris records research and development expenses in the period in which they are incurred as a component of operating expenses. Advertising expenses. Polaris records advertising expenses as a component of selling and marketing expenses in the period in which they are incurred. In the years ended December 31, 2018 , 2017 and 2016 , Polaris incurred $65,001,000 , $75,307,000 and $85,199,000 , respectively. Product warranties - Limited warranties. Polaris provides a limited warranty for its vehicles and boats for a period of six months to ten 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. The Company records these amounts as a liability in the consolidated balance sheet until they are ultimately paid. Adjustments to the warranty reserve are made from time to time based on actual claims experience in order to properly estimate the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. Factors that could have an impact on the warranty accrual in any given period include the following: improved manufacturing quality, shifts in product mix, changes in warranty coverage periods, snowfall and its impact on snowmobile usage, product recalls and any significant changes in sales volume. The activity in the limited warranty reserve during the periods presented was as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Balance at beginning of year $ 123,840 $ 119,274 $ 56,474 Additions to reserve through acquisitions 19,468 — 147 Additions charged to expense 105,015 145,705 194,996 Less: warranty claims paid (126,499 ) (141,139 ) (132,343 ) Balance at end of year $ 121,824 $ 123,840 $ 119,274 During 2016, the Company incurred significant additions to the warranty reserve, primarily associated with recall activity for certain RZR vehicles. In April 2016, the Company issued a voluntary recall for certain RZR 900 and 1000 off-road vehicles manufactured since model year 2013 due to reports of thermal-related incidents, including fire, and in September 2016, the Company issued a voluntary recall for certain RZR XP Turbo off-road vehicles due to similar thermal-related incidents. Share-based employee compensation. The Company recognizes in the financial statements the grant-date fair value of stock options and other equity-based compensation issued to employees. Determining the appropriate fair-value model and calculating the fair value of share-based awards at the date of grant requires judgment. The Company utilizes the Black-Scholes option pricing model to estimate the fair value of employee stock options, and the Monte Carlo model to estimate the fair value of employee performance restricted stock units that include a market condition. These pricing models also require the use of input assumptions, including expected volatility, expected life, expected dividend rate, and expected risk-free rate of return. The Company utilizes historical volatility as the Company believes this is reflective of market conditions. The expected life of the awards is based on historical exercise patterns. The risk-free interest rate assumption is based on observed interest rates appropriate for the terms of awards. The dividend yield assumption is based on the Company’s history of dividend payouts. The Company develops an estimate of the number of share-based awards that will be forfeited due to employee turnover. Changes in the estimated forfeiture rate can have a significant effect on reported share-based compensation, as the effect of adjusting the rate for all expense amortization is recognized in the period the forfeiture estimate is changed. If the actual forfeiture rate is higher or lower than the estimated forfeiture rate, then an adjustment is made to increase or decrease the estimated forfeiture rate, which will result in a decrease or increase to the expense recognized in the financial statements. If forfeiture adjustments are made, they would affect gross margin and operating expenses. The Company estimates the likelihood and the rate of achievement for performance share-based awards, specifically long-term compensation grants of performance-based restricted stock unit awards. Changes in the estimated rate of achievement can have a significant effect on reported share-based compensation expenses as the effect of a change in the estimated achievement level is recognized in the period that the likelihood factor changes. If adjustments in the estimated rate of achievement are made, they would be reflected in gross margin and operating expenses. Fluctuations in the Company’s stock price can have a significant effect on reported share-based compensation expenses for liability-based awards. The impact from fluctuations in the Company’s stock price is recognized in the period of the change, and is reflected in gross margin and operating expenses. Refer to Note 4 for additional information regarding share-based compensation. The Company estimates the likelihood and the rate of achievement for performance share-based awards. Changes in the estimated rate of achievement and fluctuation in the market based stock price can have a significant effect on reported share-based compensation expenses as the effect of a change in the estimated achievement level and fluctuation in the market based stock price is recognized in the period that the likelihood factor and stock price changes. If adjustments in the estimated rate of achievement and fluctuation in the market based stock price are made, they would be reflected in gross margin and operating expenses. Derivative instruments and hedging activities. Changes in the fair value of a derivative are recognized in earnings unless the derivative qualifies as a hedge. To qualify as a hedge, the Company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting. Polaris does not use any financial contracts for trading purposes. Polaris enters into foreign exchange contracts to manage currency exposures from certain of its purchase commitments denominated in foreign currencies and transfers of funds from time to time from its foreign subsidiaries. These contracts meet the criteria for cash flow hedges. Gains and losses on the Canadian dollar and Australian dollar contracts at settlement are recorded in non-operating other expense, net in the consolidated income statements, and gains and losses on the Japanese yen and Mexican peso contracts at settlement are recorded in cost of sales in the consolidated income statements. The contracts are recorded in other current assets or other current liabilities on the consolidated balance sheets. Unrealized gains and losses are recorded as a component of accumulated other comprehensive loss, net. Polaris enters into interest rate swaps in order to maintain a balanced risk of fixed and floating interest rates associated with the Company’s long-term debt. These contracts meet the criteria for cash flow hedges. The contracts are recorded in other current assets or other current liabilities on the consolidated balance sheets. Unrealized gains and losses are recorded as a component of accumulated other comprehensive loss, net. Polaris enters into commodity hedging contracts 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 did not enter into any such derivative contracts during 2018 or 2017 . Refer to Note 13 for additional information regarding derivative instruments and hedging activities. Foreign currency translation. The functional currency for each of the Polaris foreign subsidiaries is their respective local currencies. The assets and liabilities in all Polaris foreign entities are translated at the foreign exchange rate in effect at the balance sheet date. Translation gains and losses are reflected as a component of accumulated other comprehensive loss in the shareholders’ equity section of the accompanying consolidated balance sheets. Revenues and expenses in all of Polaris’ foreign entities are translated at the average foreign exchange rate in effect for each month of the quarter. Transaction gains and losses including intercompany transactions denominated in a currency other than the functional currency of the entity involved are included in other (income) expense, net in the consolidated statements of income. Comprehensive income. Components of comprehensive income include net income, foreign currency translation adjustments, unrealized gains or losses on derivative instruments, and retirement benefit plan activity. The Company discloses comprehensive income in separate consolidated statements of comprehensive income. New accounting pronouncements. Share-based payment accounting. Effective January 1, 2017, the Company adopted Accounting Standards Update (ASU) No. 2016-09, Improvements to Employee Share-Based Payment Accounting . As a result of the adoption, the Company recognized a tax benefit of $14,643,000 of excess tax benefits related to share-based payments in its provision for income taxes for year ended December 31, 2017. These items were historically recorded in additional paid-in capital. In addition, for each period presented, cash flows related to excess tax benefits are now classified as an operating activity along with other income tax related cash flows. The Company elected to apply the change in presentation of excess tax benefits in the statements of cash flows on a prospective basis. The Company’s compensation expense each period continues to reflect estimated forfeitures. 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 year ended December 31, 2018. The Company has included the disclosures required by ASU 2014-09 in Note 2. Statement of cash flows. Effective January 1, 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 an increase of $5,428,000 and $17,845,000 in net cash provided by operating activities for the years ended December 31, 2017 and 2016, respectively, related to reclassifying the changes in restricted cash balance from operating activities to the cash and cash equivalent balances within the Consolidated Statements of Cash Flows. Income Taxes. The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduced the U.S. federal corporate tax rate from 35% to 21%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created 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. During the fourth quarter of 2018, the Company elected the period cost method related to the Global Intangible Low-Taxed Income (GILTI) and completed its accounting for the tax effects of the Act which resulted in an immaterial change to the provisional amounts. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) and in July 2018, ASU No. 2018-10, Codification Improvements to Topic 842, Leases , and ASU 2018-11, Leases (Topic 842) - Targeted Improvements (collectively, “the new lease standard” or “ASC 842”). The new standard requires lessees to record assets and liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with the classification affecting the pattern of expense recognition in the income statement. The Company plans to adopt the standard as of January 1, 2019 using the alternative transition method provided under ASC 842, which allows the Company to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company will elect the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows the Company to carry forward the historical lease classification. The Company will not elect the hindsight practical expedient permitted under the transition guidance within the new lease standard. The Company will make an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. The Company will also elect the practical expedient to not separate non-lease components from the lease components to which they relate, and instead account for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. Accordingly, all costs associated with a lease contract are accounted for as lease cost. The Company estimates adoption of the new standard will result in the recognition of additional net lease assets and lease liabilities of approximately $110,000,000 to $120,000,000 , as of January 1, 2019. The Company does not believe the adoption of ASC 842 will have a material impact on the Company’s consolidated results of operations, equity or cash flows as of the adoption date. Under the alternative method of adoption, comparative information will not be restated, but will continue to be reported under the standards in effect for those periods. 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 adoption of the ASU is not expected to have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows. Non-employee share-based payments. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-based Payment Accounting . The amendments of this ASU apply to all share-based payment transactions to non-employees, in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations, accounted for under ASC 505-50, Equity-Based Payments to Non-Employees. Under the amendments of ASU 2018-07, most of the guidance on compensation to nonemployees is aligned with the requirements for shared based payments granted to employees in Topic 718. The adoption of the ASU is not expected to have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows. There are no other new accounting pronouncements that are expected to have a significant impact on Polaris’ consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Note 3. Acquisitions 2018 Acquisitions. Boat Holdings, LLC On July 2, 2018, pursuant to the Agreement and Plan of Merger dated May 29, 2018, the Company completed the acquisition of Boat Holdings, LLC, a privately held Delaware limited liability company, headquartered in Elkhart, Indiana which manufactures boats (“Boat Holdings”). The transaction was structured as an acquisition of 100% of the outstanding equity interests in Boat Holdings for aggregate consideration of $806,658,000 , net of cash acquired, subject to customary adjustments based on, among other things, the amount of cash, debt and working capital in the business of Boat Holdings at the closing date. A portion of the aggregate consideration equal to $100,000,000 will be paid in the form of a series of deferred annual payments over 12 years following the closing date. The Company funded the purchase price for the acquisition by amending, extending, and up-sizing the Credit Facility and with the proceeds of the issuance of 4.23% Senior Notes, Series 2018, due July 3, 2028, described in Note 6. The consolidated statement of income for the year ended December 31, 2018 includes $279,656,000 of net sales and $46,252,000 of gross profit related to Boats. The following table summarizes the preliminary fair values assigned to the Boat Holdings net assets acquired and the determination of net assets (in thousands): Cash and cash equivalents $ 16,534 Trade receivables 17,528 Inventory 39,990 Other current assets 4,522 Property, plant and equipment 35,299 Customer relationships 341,080 Trademarks / trade names 210,680 Non-compete agreements 2,630 Goodwill 211,757 Accounts payable (30,064 ) Other liabilities assumed (26,764 ) Total fair value of net assets acquired 823,192 Less cash acquired (16,534 ) Total consideration for acquisition, less cash acquired $ 806,658 On the acquisition date, amortizable intangible assets had a weighted-average useful life of approximately 19 years. The customer relationships were valued based on the Discounted Cash Flow Method and are amortized over 15 - 20 years, depending on the customer class. The trademarks and trade names were valued on the Relief from Royalty Method and have indefinite remaining useful lives. Goodwill is deductible for tax purposes. The following unaudited pro forma information represents the Company’s results of operations as if the fiscal 2018 acquisition of Boat Holdings had occurred at the beginning of fiscal 2017 (in thousands, except per share data): For the Years Ended December 31, 2018 2017 Net sales $ 6,429,700 $ 5,980,741 Net income 360,690 182,749 Basic earnings per share $ 5.77 $ 2.90 Diluted earnings per common share $ 5.64 $ 2.85 The results for the years ended December 31, 2018 and 2017 have been adjusted to include the pro forma impact of amortization of intangible assets and the depreciation of property, plant, and equipment, based on purchase price allocations; the pro forma impact of additional interest expense relating to the acquisition; the pro forma impact of transaction related costs incurred by the Company directly attributable to the transaction; and the pro forma tax effect of both income before taxes and the pro forma adjustments. These performance results may not be indicative of the actual results that would have occurred under the ownership and management of the Company. The results for the year ended December 31, 2018 have been adjusted to exclude the impact of approximately $9,646,000 of acquisition-related expenses and purchase accounting adjustments (pre-tax) incurred by the Company that are directly attributable to the transaction. The pro forma financial information has been prepared for comparative purposes only and includes certain adjustments, as noted above. The adjustments are estimates based on currently available information and actual amounts may differ materially from these estimates. They do not reflect the effect of costs or synergies that would have been expected to result from the integration of the Boat Holdings acquisition. 2017 Acquisitions. The Company did not complete any acquisitions in 2017. 2016 Acquisitions. Taylor-Dunn Manufacturing Company In March 2016, the Company acquired Taylor-Dunn Manufacturing Company (“Taylor-Dunn”), a leading provider of industrial vehicles serving a broad range of commercial, manufacturing, warehouse and ground-support customers. Taylor-Dunn is based in Anaheim, California, and is included in the Global Adjacent Markets reporting segment. Pro forma financial results for the Taylor-Dunn acquisition are not presented as the acquisition was not material to the consolidated financial statements. Transamerican Auto Parts On October 11, 2016, the Company entered into a definitive agreement with TAP Automotive Holdings, LLC (“Transamerican Auto Parts” or “TAP”), to acquire the outstanding equity interests in Transamerican Auto Parts, a privately held, vertically integrated manufacturer, distributor, retailer and installer of off-road Jeep and truck accessories, for an aggregate consideration of $668,348,000 , net of cash acquired. TAP’s products and services for customers in the off-road four-wheel-drive market correspond closely to the Company’s ORV business. The transaction closed on November 10, 2016. The Company funded the purchase price with borrowings under its existing credit facilities. The following table summarizes the final fair values assigned to the TAP net assets acquired and the determination of net assets (in thousands): Cash and cash equivalents $ 3,017 Trade receivables 18,214 Inventory 145,094 Property, plant and equipment 33,402 Customer relationships 87,000 Trademarks / trade names 175,500 Goodwill 266,126 Other assets 17,687 Deferred revenue (7,944 ) Other liabilities assumed (66,731 ) Total fair value of net assets acquired 671,365 Less cash acquired (3,017 ) Total consideration for acquisition, less cash acquired $ 668,348 On the acquisition date, amortizable intangible assets had a weighted-average useful life of approximately 9 years. The customer relationships were valued based on the Discounted Cash Flow Method and are amortized over 5 - 10 years , depending on the customer class. The trademarks and trade names were valued on the Relief from Royalty Method and have indefinite remaining useful lives. Goodwill is deductible for tax purposes. The following unaudited pro forma information represents the Company’s results of operations as if the fiscal 2016 acquisition of TAP had occurred at the beginning of fiscal 2015 (in thousands, except per share data). These performance results may not be indicative of the actual results that would have occurred under the ownership and management of the Company. For the Year Ended December 31, 2016 Net sales $ 5,161,688 Net income 240,400 Basic earnings per share $ 3.74 Diluted earnings per common share $ 3.69 The unaudited pro forma net income for the year ended December 31, 2016 excludes the impact of transaction costs incurred by TAP and approximately $13,000,000 of non-recurring transaction related costs incurred by the Company. The pro forma condensed consolidated financial information has been prepared for comparative purposes only and includes certain adjustments, as noted above. The adjustments are estimates based on currently available information and actual amounts may differ materially from these estimates. They do not reflect the effect of costs or synergies that would have been expected to result from the integration of the TAP acquisition. The pro forma information does not purport to be indicative of the results of operations that actually would have resulted had the TAP acquisition occurred on January 1, 2015. The Company’s 2016 consolidated statements of income include $108,699,000 of net sales and $19,842,000 of gross profit related to TAP. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition, Sales of Goods [Policy Text Block] | Revenue Recognition The following tables disaggregate the Company’s revenue by major product type and geography (in thousands): For the Year Ended December 31, 2018 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Consolidated Revenue by product type Wholegoods $ 3,237,463 $ 465,269 $ 366,103 — $ 279,656 $ 4,348,491 PG&A 681,954 80,377 78,541 $ 889,177 — 1,730,049 Total revenue $ 3,919,417 $ 545,646 $ 444,644 $ 889,177 $ 279,656 $ 6,078,540 Revenue by geography United States $ 3,178,104 $ 371,483 $ 212,653 $ 847,293 $ 274,274 $ 4,883,807 Canada 293,269 31,150 18,539 41,884 5,382 390,224 EMEA 306,890 87,977 208,032 — — 602,899 APLA 141,154 55,036 5,420 — — 201,610 Total revenue $ 3,919,417 $ 545,646 $ 444,644 $ 889,177 $ 279,656 $ 6,078,540 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. Revenue from goods and services transferred to customers at a point in time accounts for the majority of the Company’s revenue. Revenue from products or services transferred over time is discussed in the deferred revenue section. 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 rebates 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 has 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 rebates 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. The Company offers installation services for parts that it 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 has transferred to the customer as an expense in cost of sales. Boats segment Boats. For the majority of boats, the Company transfers control and recognizes a sale when it ships the product from its manufacturing facility or distribution center to its customer (primarily dealers). The amount of consideration the Company receives and revenue it recognizes varies with changes in marketing incentives and rebates 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. The Company has elected to recognize the cost for freight and shipping when control over boats has 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. The Company expects to recognize approximately $25,777,000 of the unearned amount over the next 12 months and $34,138,000 thereafter. The activity in the deferred revenue reserve during the periods presented was as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Balance at beginning of year $ 45,760 $ 26,157 Additions to deferred revenue through acquisitions — — $ 7,944 New contracts sold 35,610 31,617 20,569 Less: reductions for revenue recognized (21,455 ) (12,014 ) (2,356 ) Balance at end of year (1) $ 59,915 $ 45,760 $ 26,157 (1) The unamortized ESC premiums (deferred revenue) recorded in other current liabilities totaled $25,777,000 and $18,607,000 at December 31, 2018 and 2017, respectively, while the amount recorded in other long-term liabilities totaled $34,138,000 and $27,153,000 at December 31, 2018, 2017, and 2016, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Share-based plans. The Company grants long-term equity-based incentives and rewards for the benefit of its employees and directors under the shareholder approved Polaris Industries Inc. 2007 Omnibus Incentive Plan (as amended) (the “Omnibus Plan”), which were previously provided under several separate incentive and compensatory plans. Upon approval by the shareholders of the Omnibus Plan in April 2007, the Polaris Industries Inc. 1995 Stock Option Plan (“Option Plan”), the 1999 Broad Based Stock Option Plan, the Restricted Stock Plan and the 2003 Non-Employee Director Stock Option Plan (“Director Stock Option Plan” and collectively the “Prior Plans”) were frozen and no further grants or awards have since been or will be made under such plans. A maximum of 21,000,000 shares of common stock are available for issuance under the Omnibus Plan, together with additional shares canceled or forfeited under the Prior Plans. Stock option awards granted to date under the Omnibus Plan generally vest one to four years from the award date and expire after ten years. In addition, since 2007, the Company has granted a total of 181,000 deferred stock units to its non-employee directors under the Omnibus Plan ( 12,000 , 11,000 and 11,000 in 2018 , 2017 and 2016 , respectively), which will be converted into common stock when the director’s board service ends or upon a change in control. Restricted units and performance-based restricted units (collectively restricted stock) awarded under the Omnibus Plan generally vests after a one to four year period. The final number of shares issued under performance-based awards are dependent on achievement of certain performance measures. The Option Plan, which is frozen, was used to issue incentive and nonqualified stock options to certain employees. Options granted to date generally vest three years from the award date and expire after ten years. Under the Polaris Industries Inc. Deferred Compensation Plan for Directors (“Director Plan”) and the Omnibus Plan, members of the Board of Directors who are not Polaris officers or employees may annually elect to receive common stock equivalents in lieu of director fees, which will be converted into common stock when board service ends. A maximum of 500,000 shares of common stock has been authorized under the Director Plan of which 73,000 equivalents have been earned and 427,000 shares have been issued to retired directors as of December 31, 2018 . Authorized shares under the Director Plan were exhausted in 2017. Since 2017, the Company has granted a total of 21,000 common stock equivalents to its non-employee directors under the Omnibus Plan ( 10,000 in 2018 and 11,000 in 2017 ), which will be converted into common stock when their board service ends. As of December 31, 2018 and 2017 , Polaris’ liability under the plans for the common stock equivalents totaled $7,253,000 and $10,526,000 , respectively. Polaris maintains a long term incentive program under which awards are issued to provide incentives for certain employees to attain and maintain the highest standards of performance and to attract and retain employees of outstanding competence and ability with no cash payments required from the recipient. Long term incentive program awards are granted in restricted stock units and stock options and therefore treated as equity awards. Share-based compensation expense. The amount of compensation cost for share-based awards to be recognized during a period is based on the portion of the awards that are ultimately expected to vest. The Company estimates forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company analyzes historical data to estimate pre-vesting forfeitures and records share compensation expense for those awards expected to vest. Total share-based compensation expenses were as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Option awards $ 23,393 $ 18,423 $ 23,876 Other share-based awards 28,513 28,844 23,368 Total share-based compensation before tax 51,906 47,267 47,244 Tax benefit 12,354 17,555 17,546 Total share-based compensation expense included in net income $ 39,552 $ 29,712 $ 29,698 These share-based compensation expenses are reflected in cost of sales and operating expenses in the accompanying consolidated statements of income. For purposes of determining the estimated fair value of awards on the date of grant under ASC Topic 718, Polaris has used the Black-Scholes model for stock options, and the Monte Carlo simulation model for employee performance restricted stock units that include a market condition. Assumptions utilized in the model are evaluated and revised, as necessary, to reflect market conditions and experience. At December 31, 2018 , there was $96,087,000 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 1.35 years. Included in unrecognized share-based compensation is approximately $23,631,000 related to stock options and $72,456,000 for restricted stock. General stock option and restricted stock information. The following summarizes stock option activity and the weighted average exercise price for the following plans for the each of the three years ended December 31, 2018 , 2017 and 2016 : Omnibus Plan Option Plan Shares Outstanding Weighted Outstanding Weighted Balance as of December 31, 2015 4,105,539 $ 84.61 18,950 $ 23.37 Granted 1,326,430 78.72 — — Exercised (348,206 ) 40.51 (18,950 ) 23.37 Forfeited (366,702 ) 108.90 — — Balance as of December 31, 2016 4,717,061 $ 84.32 — — Granted 1,267,812 88.22 — — Exercised (898,417 ) 44.18 — — Forfeited (192,505 ) 108.15 — — Balance as of December 31, 2017 4,893,951 $ 91.78 — — Granted 806,698 115.43 — — Exercised (724,124 ) 61.49 — — Forfeited (400,599 ) 105.70 — — Balance as of December 31, 2018 4,575,926 $ 99.53 — — Vested or expected to vest as of December 31, 2018 4,575,926 $ 99.53 — — Options exercisable as of December 31, 2018 1,909,271 $ 99.47 — — The weighted average remaining contractual life of options outstanding and of options outstanding and exercisable as of December 31, 2018 was 6.65 years and 4.76 years, respectively. The following assumptions were used to estimate the weighted average fair value of options of $26.50 , $18.45 and $16.81 granted during the years ended December 31, 2018 , 2017 and 2016 , respectively: For the Years Ended December 31, 2018 2017 2016 Weighted-average volatility 30 % 29 % 32 % Expected dividend yield 2.1 % 2.6 % 2.8 % Expected term (in years) 4.4 4.7 4.5 Weighted average risk free interest rate 2.6 % 1.9 % 1.4 % The total intrinsic value of options exercised during the year ended December 31, 2018 was $42,511,000 . The total intrinsic value of options outstanding and of options outstanding and exercisable at December 31, 2018 , was $10,899,000 and $8,494,000 , respectively. The total intrinsic values are based on the Company’s closing stock price on the last trading day of the applicable year for in-the-money options. The grant date fair values of the total shareholder return (TSR) performance share awards were estimated using a Monte Carlo simulation model utilizing the following weighted-average assumptions: For the Years Ended December 31, 2018 2017 2016 Weighted-average volatility 33 % 31 % — Expected term (in years) 3.0 3.0 — Weighted average risk free interest rate 2.3 % 1.5 % — The Company used its historical stock prices as the basis for the Company’s volatility assumption. The assumed risk-free interest rates were based on U.S. Treasury rates in effect at the time of grant. The expected term was based on the vesting period. The weighted-average fair value used to record compensation expense for TSR performance share awards granted during fiscal 2018 and 2017 was $106.43 and $82.14 per award, respectively. There were no TSR performance share awards granted in fiscal 2016. The following table summarizes restricted stock activity for the year ended December 31, 2018 : Shares Weighted Balance as of December 31, 2017 1,620,625 $ 93.03 Granted 582,488 114.42 Vested (158,031 ) 101.95 Canceled/Forfeited (403,885 ) 123.80 Balance as of December 31, 2018 1,641,197 $ 92.19 Expected to vest as of December 31, 2018 1,282,659 $ 98.28 The shares granted above include 244,000 performance restricted stock unit awards. These performance grants are the number of shares that would be earned at the target level of performance. The number of shares of Polaris common stock that could actually be delivered at the end of the three-year performance period for performance restricted stock units may be anywhere from 0% to 200% of target for each performance share, depending on the performance of the Company during such performance period. The total intrinsic value of restricted stock expected to vest as of December 31, 2018 was $98,354,000 . The total intrinsic value is based on the Company’s closing stock price on the last trading day of the year. The weighted average fair values at the grant dates of grants awarded under the Omnibus Plan for the years ended December 31, 2018 , 2017 and 2016 were $114.42 , $85.97 and $77.53 , respectively. |
Employee Savings Plans
Employee Savings Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Employee Savings Plans [Abstract] | |
Employee Savings Plans | Employee Savings Plans Employee Stock Ownership Plan (ESOP). Polaris sponsors a qualified non-leveraged ESOP under which a maximum of 7,200,000 shares of common stock can be awarded. The shares are allocated to eligible participants’ accounts based on total cash compensation earned during the calendar year. An employee’s ESOP account vests equally after two and three years of service and requires no cash payments from the recipient. Participants may instruct Polaris to pay respective dividends directly to the participant in cash or reinvest the dividends into the participants’ ESOP accounts. Employees who meet eligibility requirements can participate in the ESOP. Total expense related to the ESOP was $10,037,000 , $8,241,000 and $7,849,000 , in 2018 , 2017 and 2016 , respectively. As of December 31, 2018 there were 3,315,000 shares held in the plan. Defined contribution plans. Polaris sponsors a 401(k) defined contribution retirement plan covering substantially all U.S. employees. The Company matches 100 percent of employee contributions up to a maximum of five percent of eligible compensation. All contributions vest immediately. The cost of the defined contribution retirement plan was $24,458,000 , $22,101,000 , and $15,456,000 , in 2018 , 2017 and 2016 , respectively. Supplemental Executive Retirement Plan (SERP). Polaris sponsors a SERP that provides executive officers of the Company an alternative to defer portions of their salary, cash incentive compensation, and Polaris matching contributions. The deferrals and contributions are held in a rabbi trust and are in funds to match the liabilities of the plan. The assets are recorded as trading assets. The assets of the rabbi trust are included in other long-term assets on the consolidated balance sheets and the SERP liability is included in other long-term liabilities on the consolidated balance sheets. The asset and liability balances are both $48,545,000 and $54,244,000 at December 31, 2018 , and 2017 , respectively. Executive officers of the Company have the opportunity to defer certain restricted stock units. After a holding period, the executive officer has the option to diversify the vested award into other funds available under the SERP. The deferrals are held in a rabbi trust and are invested in funds to match the liabilities of the SERP. The awards are redeemable in Polaris stock or in cash based upon the occurrence of events not solely within the control of Polaris; therefore, awards probable of vesting, for which the executive has not yet made an election to defer, or awards that have been deferred but have not yet vested and are probable of vesting or have been diversified into other funds, are reported as deferred compensation in the temporary equity section of the consolidated balance sheets. The awards recorded in temporary equity are recognized at fair value as though the reporting date is also the redemption date, with any difference from stock-based compensation recorded in retained earnings. At December 31, 2018 , 89,168 shares are recorded at a fair value of $6,837,000 in temporary equity, which includes $7,346,000 of compensation cost and $(509,000) of cumulative fair value adjustment recorded through retained earnings. |
Financing Agreement
Financing Agreement | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Financing Agreement | Financing Agreement 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 December 31, 2018 Maturity December 31, 2018 December 31, 2017 Revolving loan facility 2.88% July 2023 $ 187,631 $ 3,000 Term loan facility 3.76% July 2023 1,150,000 680,000 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 Senior notes—fixed rate 4.23% July 2028 350,000 — Capital lease obligations 5.28% Various through 2029 17,587 19,889 Notes payable and other 4.23% Various through 2030 87,608 12,384 Debt issuance costs (5,256 ) (2,261 ) Total debt, capital lease obligations, and notes payable $ 1,962,570 $ 913,012 Less: current maturities 66,543 47,746 Total long-term debt, capital lease obligations, and notes payable $ 1,896,027 $ 865,266 Bank financing. 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 . In July 2018, Polaris amended the revolving loan facility to increase the facility to $700,000,000 and increase the term loan facility to $1,180,000,000 , of which $1,150,000,000 was outstanding as of December 31, 2018 . 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. Under the facility, the Company is required to make principal payments totaling $59,000,000 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 . In July 2018, the Company entered into a Master Note Purchase Agreement to issue $350,000,000 of unsecured senior notes due July 2028. The unsecured loan facility and the amended Master Note Purchase Agreement contain covenants that require Polaris to maintain certain financial ratios, including minimum interest coverage and maximum leverage ratios. Polaris was in compliance with all such covenants as of December 31, 2018 . 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 the consolidated statements of income over the expected remaining terms of the related debt. 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. As a component of the Boat Holdings merger agreement, Polaris has committed to make a series of deferred payments to the former owners following the closing date of the merger through July 2030. The original discounted payable was for $76,733,000 , all of which was outstanding as of December 31, 2018 . The outstanding balance is included in long-term debt and current portion of long-term debt in the consolidated balance sheets. 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 was outstanding as of December 31, 2018 . The outstanding balance is included in notes payable and other. 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 included within long-term debt and current portion of long-term debt in the consolidated balance sheets. The following summarizes activity under Polaris’ credit arrangements (dollars in thousands): 2018 2017 2016 Total borrowings at December 31 $ 1,862,631 $ 883,000 $ 1,112,142 Average outstanding borrowings during year $ 1,474,485 $ 1,133,641 $ 638,614 Maximum outstanding borrowings during year $ 1,999,731 $ 1,319,105 $ 1,234,337 Interest rate at December 31 3.64 % 2.91 % 2.25 % Letters of credit. At December 31, 2018 , Polaris had open letters of credit totaling $18,718,000 . The amounts are primarily related to inventory purchases and are reduced as the purchases are received. Dealer financing programs. Certain finance companies, including Polaris Acceptance, an affiliate, and TCF Financial Corporation (see Note 10), provide floor plan financing to dealers on the purchase of Polaris products. The amount financed by worldwide dealers under these arrangements at December 31, 2018 , was approximately $1,643,771,000 . Polaris has agreed to repurchase products repossessed by the finance companies up to an annual maximum of no more than 15 percent of the average month end balances outstanding during the prior calendar year for Polaris Acceptance, and 100 percent of the balances outstanding for TCF Financial Corporation. Polaris’ financial exposure under these arrangements is limited to the difference between the amount paid to the finance companies for repurchases and the amount received on the resale of the repossessed product. No material losses have been incurred under these agreements during the periods presented. As a part of its marketing program, Polaris contributes to the cost of dealer financing up to certain limits and subject to certain conditions. Such expenditures are included as an offset to sales in the accompanying consolidated statements of income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets ASC Topic 350 prohibits the amortization of goodwill and intangible assets with indefinite useful lives. Topic 350 requires that these assets be reviewed for impairment at least annually. The Company periodically evaluates the remaining useful lives of indefinite-lived intangible assets to ensure they continue to be indefinite-lived. An impairment charge for goodwill is recognized only when the estimated fair value of a reporting unit, including goodwill, is less than its carrying amount. An impairment charge for an indefinite-lived intangible asset is recognized when its fair value is less than its carrying amount. During the fourth quarter of 2018, the Company voluntarily changed the date of the annual impairment test from December 31 to October 1. This voluntary change is preferable under the circumstances as it provides the Company with additional time to complete its annual goodwill and indefinite-lived intangible asset impairment testing in advance of its year-end reporting and results in better alignment with the timing of the Company’s long-range planning and forecasting process. The voluntary change in accounting principle related to the annual testing date will not delay, accelerate or avoid an impairment charge. This change is not applied retrospectively as it is impracticable to do so because retrospective application would require application of significant estimates and assumptions with the use of hindsight. Accordingly, the change will be applied prospectively. The Company performed the annual impairment test as of October 1, 2018 and December 31, 2017. The results of the impairment test indicated that no goodwill or indefinite-lived intangible asset impairment existed as of the test date. The Company has had no historical impairments of goodwill. In accordance with Topic 350, the Company will continue to complete an impairment analysis on an annual basis or more frequently if an event or circumstance that would more likely than not reduce the fair value of a reporting unit below its carrying amount occurs. In 2017, the Company recorded impairments of certain developed technology intangible assets, primarily related to the wind down of Victory Motorcycles. See Note 15 for additional discussion of the wind down activities. Goodwill and other intangible assets, net of accumulated amortization, for the periods ended December 31, 2018 and 2017 are as follows (in thousands): 2018 2017 Goodwill $ 647,077 $ 433,374 Other intangible assets, net 870,517 347,212 Total goodwill and other intangible assets, net $ 1,517,594 $ 780,586 Additions to goodwill and other intangible assets in 2018 primarily relate to the acquisition of Boat Holdings in July 2018. The aggregate purchase price was allocated on a preliminary basis to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Boat Holding’s financial results are included in the Company’s consolidated results from the date of acquisition. As of December 31, 2018, the purchase price allocation remains preliminary. The pro forma financial results and the preliminary purchase price allocation are included in Note 3. There were no material additions to goodwill and other intangible assets in 2017. The changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 are as follows (in thousands): 2018 2017 Balance as of beginning of year $ 433,374 $ 421,563 Goodwill from businesses acquired 218,191 1,563 Currency translation effect on foreign goodwill balances (4,488 ) 10,248 Balance as of end of year $ 647,077 $ 433,374 For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2018 and 2017 are as follows (in thousands): 2018 2017 Gross Accumulated Gross Accumulated Other intangible assets, beginning $ 423,846 $ (76,634 ) $ 420,546 $ (49,130 ) Intangible assets acquired during the period 557,390 — (461 ) — Intangible assets disposed of during the period (13,659 ) 13,659 — — Amortization expense — (32,927 ) — (25,855 ) Impairment — — (3,657 ) 1,987 Currency translation effect on foreign balances (2,924 ) 1,766 7,418 (3,636 ) Other intangible assets, ending $ 964,653 $ (94,136 ) $ 423,846 $ (76,634 ) The components of other intangible assets were as follows (in thousands): December 31, 2018 Estimated Life Gross Carrying Accumulated Net Non-compete agreements 4 $ 2,630 $ (329 ) $ 2,301 Dealer/customer related 5-20 506,401 (85,614 ) 420,787 Developed technology 5-7 13,323 (8,193 ) 5,130 Total amortizable 522,354 (94,136 ) 428,218 Non-amortizable—brand/trade names 442,299 — 442,299 Total other intangible assets, net $ 964,653 $ (94,136 ) $ 870,517 December 31, 2017 Estimated Life Gross Carrying Accumulated Net Non-compete agreements 5 $ 540 $ (540 ) $ — Dealer/customer related 5-10 169,694 (60,638 ) 109,056 Developed technology 5-7 22,903 (15,456 ) 7,447 Total amortizable 193,137 (76,634 ) 116,503 Non-amortizable—brand/trade names 230,709 — 230,709 Total other intangible assets, net $ 423,846 $ (76,634 ) $ 347,212 Amortization expense for intangible assets for the year ended December 31, 2018 and 2017 was $32,927,000 and $25,855,000 , respectively. Estimated amortization expense for 2019 through 2023 is as follows: 2019 , $40,955,000 ; 2020 , $35,831,000 ; 2021 , $33,036,000 ; 2022 , $28,069,000 ; 2023 , $25,539,000 ; and after 2023 , $264,788,000 . The preceding expected amortization expense is an estimate and actual amounts could differ due to additional intangible asset acquisitions, changes in foreign currency rates or impairment of intangible assets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduced the U.S. federal corporate tax rate from 35% to 21%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign-sourced earnings. At December 31, 2017, the Company had not completed its accounting for the tax effects of enactment of the Act; however, in certain cases, as described below, the Company made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax. In other cases, the Company had not been able to make a reasonable estimate and accounted for those items based on existing accounting under ASC 740, Income Taxes . For the items for which the Company was able to determine a reasonable estimate, it recognized a provisional amount of $55,400,000 , which was included as a component of income tax expense from continuing operations in 2017. Provisional amounts Deferred tax assets and liabilities. The Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. The provisional amount recorded related to the remeasurement of the Company’s deferred tax balance was an increase to tax expense of $55,800,000 in 2017. Foreign tax effects . The one-time transition tax is based on the Company’s total post-1986 earnings and profits (E&P) which were previously deferred from U.S. income taxes. The Company recorded a provisional amount for its one-time transition tax liability for all of its foreign subsidiaries, resulting in a decrease in income tax expense of $368,000 in 2017. No additional income taxes had been provided for any remaining undistributed foreign earnings not subject to the transition tax and any additional outside basis difference inherent in these entities as these amounts continue to be indefinitely reinvested in foreign operations. 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. During the fourth quarter of 2018, the Company elected the period cost method related to the Global Intangible Low-Taxed Income (GILTI) and completed its accounting for the tax effects of the Act which resulted in an immaterial change to the provisional amounts described above. Polaris’ income from continuing operations before income taxes was generated from its United States and foreign operations as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 United States $ 344,728 $ 264,207 $ 262,403 Foreign 84,521 54,584 50,848 Income from continuing operations before income taxes $ 429,249 $ 318,791 $ 313,251 Components of Polaris’ provision for income taxes for continuing operations are as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Current: Federal $ 39,051 $ 41,134 $ 103,717 State 3,759 7,264 4,780 Foreign 27,539 22,267 17,367 Deferred 23,643 75,634 (25,561 ) Total provision for income taxes for continuing operations $ 93,992 $ 146,299 $ 100,303 Reconciliation of the Federal statutory income tax rate to the effective tax rate is as follows: For the Years Ended December 31, 2018 2017 2016 Federal statutory rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 1.9 1.4 1.4 Domestic manufacturing deduction (1.4 ) (0.5 ) (2.1 ) Research and development tax credit (3.1 ) (5.6 ) (4.3 ) Stock based compensation (1.4 ) (4.4 ) — Valuation allowance 0.2 1.2 — Tax Reform impact 0.4 17.4 — Non-deductible expenses — 2.0 2.4 Foreign tax rate differential 1.3 (0.3 ) (1.6 ) Other permanent differences 3.0 (0.3 ) 1.2 Effective income tax rate for continuing operations 21.9 % 45.9 % 32.0 % The income tax rate for 2018 was 21.9% as compared with 45.9% and 32.0% in 2017 and 2016 , respectively. The lower income tax rate for 2018 , compared with 2017 was primarily due to the reduction in the federal statutory rate to 21 percent effective during 2018 and a non-cash $55,800,000 write-down of deferred tax assets as a result of the passing of the U.S. tax reform bill in the fourth quarter of 2017, offset by a decrease in excess tax benefits related to share based compensation as compared to 2017. In addition, the Company filed amended returns to claim an increase in the Domestic Manufacturing Deduction as well as other claims for additional credits related to qualified research expenditures incurred in prior years. The higher income tax rate for 2017, compared with 2016 was primarily due to a non-cash $55,800,000 write-down of deferred tax assets as a result of the passing of the U.S. tax reform bill in the fourth quarter of 2017, offset by favorable changes related to share-based payment accounting and the related excess tax benefits now recognized as a reduction to income tax expense in accordance with ASU No. 2016-09. Undistributed earnings relating to certain non-U.S. subsidiaries of approximately $186,679,000 and $189,015,000 at December 31, 2018 and 2017 , respectively, are considered to be permanently reinvested. As explained above, due to the transition tax provisions included in the Act, such earnings were deemed to be repatriated as of December 31, 2017. While these earnings would no longer be subject to incremental U.S. tax, if the Company were to actually distribute these earnings, they could be subject to additional foreign income taxes and/or withholding taxes payable to non-U.S. countries. Determination of the unrecognized deferred foreign income tax liability related to these undistributed earnings is not practicable due to the complexities associated with this hypothetical calculation. Polaris utilizes the liability method of accounting for income taxes whereby deferred taxes are determined based on the estimated future tax effects of differences between the financial statement and tax bases of assets and liabilities given the provisions of enacted tax laws. The net deferred income taxes consist of the following (in thousands): December 31, 2018 2017 Deferred income taxes: Inventories $ 11,171 $ 11,072 Accrued expenses 105,218 102,318 Cost in excess of net assets of businesses acquired (22,916 ) (15,171 ) Property and equipment (72,252 ) (52,757 ) Employee compensation and benefits 56,286 55,350 Net operating loss and other loss carryforwards 13,847 13,628 Valuation allowance (10,370 ) (9,057 ) Total net deferred income tax asset $ 80,984 $ 105,383 At December 31, 2018 , the Company had available unused international and acquired federal net operating loss carryforwards of $28,091,000 . The net operating loss carryforwards will expire at various dates from 2019 to 2030 , with certain jurisdictions having indefinite carryforward terms. Polaris classified liabilities related to unrecognized tax benefits as long-term income taxes payable in the accompanying consolidated balance sheets in accordance with ASC Topic 740. Polaris recognizes potential interest and penalties related to income tax positions as a component of the provision for income taxes on the consolidated statements of income. Reserves related to potential interest are recorded as a component of long-term income taxes payable. The federal benefit of state taxes and interest related to the reserves is recorded as a component of deferred taxes. The entire balance of unrecognized tax benefits at December 31, 2018 , if recognized, would affect the Company’s effective tax rate. The Company does not anticipate that total unrecognized tax benefits will materially change in the next twelve months. Tax years 2013 through 2018 remain open to examination by certain tax jurisdictions to which the Company is subject. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): For the Years Ended December 31, 2018 2017 Balance at January 1, $ 19,096 $ 25,001 Gross increases for tax positions of prior years 6,586 1,935 Gross increases for tax positions of current year 2,522 2,397 Decreases due to settlements and other prior year tax positions (2,550 ) (10,338 ) Currency translation effect on foreign balances (143 ) 101 Balance at December 31, 25,511 19,096 Reserves related to potential interest at December 31, 3,090 1,018 Unrecognized tax benefits at December 31, $ 28,601 $ 20,114 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Shareholders Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Stock repurchase program. The Polaris Board of Directors has authorized the cumulative repurchase of up to 90,460,000 shares of the Company’s common stock. As of December 31, 2018 , 3,251,000 shares remain available for repurchases under the Board’s authorization. The Company has made the following share repurchases (in thousands): For the Years Ended December 31, 2018 2017 2016 Total number of shares repurchased and retired 3,184 1,028 2,908 Total investment $ 348,663 $ 90,461 $ 245,816 Stock purchase plan. Polaris maintains an employee stock purchase plan (“Purchase Plan”). A total of 3,000,000 shares of common stock are reserved for this plan. The Purchase Plan permits eligible employees to purchase common stock monthly at 95 percent of the average of the beginning and end of month stock prices. As of December 31, 2018 , approximately 1,388,000 shares had been purchased under the Purchase Plan. Dividends. Quarterly and total year cash dividends declared per common share for the year ended December 31, 2018 , 2017 , and 2016 were as follows: For the Years Ended December 31, 2018 2017 2016 Quarterly dividend declared and paid per common share $ 0.60 $ 0.58 $ 0.55 Total dividends declared and paid per common share $ 2.40 $ 2.32 $ 2.20 On January 31, 2019 , the Polaris Board of Directors declared a regular cash dividend of $0.61 per share payable on March 15, 2019 to holders of record of such shares at the close of business on March 1, 2019 . Net income per share. Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period, including shares earned under The Deferred Compensation Plan for Directors (“Director Plan”), the ESOP and deferred stock units under the 2007 Omnibus Incentive Plan (“Omnibus Plan”). Diluted earnings per share is computed under the treasury stock method and is calculated to compute the dilutive effect of outstanding stock options issued under the Option Plan and certain shares issued under the Omnibus Plan. A reconciliation of these amounts is as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Weighted average number of common shares outstanding 62,236 62,668 64,033 Director Plan and deferred stock units 177 157 162 ESOP 100 91 101 Common shares outstanding—basic 62,513 62,916 64,296 Dilutive effect of restricted stock awards 679 384 150 Dilutive effect of stock option awards 757 880 712 Common and potential common shares outstanding—diluted 63,949 64,180 65,158 During 2018 , 2017 and 2016 , the number of options that were not included in the computation of diluted income per share because the option price was greater than the market price, and therefore, the effect would have been anti-dilutive, were 1,723,000 , 2,768,000 and 2,463,000 , respectively. Accumulated other comprehensive loss. Changes in the accumulated other comprehensive loss balance is 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 income statement — (9,906 ) 261 (9,645 ) Change in fair value (18,062 ) 10,363 — (7,699 ) Balance as of December 31, 2018 $ (60,504 ) $ 423 $ (2,892 ) $ (62,973 ) The table below provides data about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the income statement for cash flow derivatives designated as hedging instruments and for actuarial losses related to retirement benefit plans the years ended December 31, 2018 and 2017 (in thousands): Derivatives in Cash Flow Hedging Relationships and Retirement Benefit Plan Activity Location of Gain (Loss) Reclassified from Accumulated OCI into Income For the Years Ended December 31, 2018 2017 Foreign currency contracts Other expense, net $ 9,378 $ 1,410 Foreign currency contracts Cost of sales 686 155 Interest rate contracts Interest expense (158 ) — Retirement benefit plan activity Operating expenses (261 ) — Total $ 9,645 $ 1,565 The net amount of the existing gains or losses at December 31, 2018 that is expected to be reclassified into the income statement within the next 12 months is expected to not be material. See Note 13 for further information regarding Polaris’ derivative activities. |
Financial Services Arrangements
Financial Services Arrangements | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Financial Services Arrangements [Abstract] | |
Financial Services Arrangements | Financial Services Arrangements Polaris Acceptance, a joint venture between Polaris and Wells Fargo Commercial Distribution Finance Corporation, 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 of snowmobiles, ORVs, motorcycles, and related PG&A, 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 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 $92,059,000 at December 31, 2018 is accounted for under the equity method, and is recorded in investment in finance affiliate in the accompanying consolidated balance sheets. At December 31, 2018 , the outstanding amount of net receivables financed for dealers under this arrangement was $1,226,353,000 , which included $573,669,000 in the Polaris Acceptance portfolio and $652,684,000 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 was 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. Summarized financial information for Polaris Acceptance reflecting the effects of the Securitization Facility is presented as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Revenues $ 72,093 $ 61,645 $ 66,414 Interest and operating expenses 11,832 7,590 6,182 Net income $ 60,261 $ 54,055 $ 60,232 As of December 31, 2018 2017 Finance receivables, net $ 573,669 $ 518,199 Other assets 102 96 Total Assets $ 573,771 $ 518,295 Notes payable $ 386,438 $ 337,050 Other liabilities 3,215 3,717 Partners’ capital 184,118 177,528 Total Liabilities and Partners’ Capital $ 573,771 $ 518,295 A subsidiary of TCF Financial Corporation (“TCF”) finances a portion of Polaris’ United States sales of boats whereby Polaris receives payment within a few days of shipment of the product. Polaris has agreed to repurchase products repossessed by TCF up to a maximum of 100 percent of the aggregate outstanding TCF receivables balance. At December 31, 2018 , the potential aggregate repurchase obligation was approximately $201,600,000 . 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 | 12 Months Ended |
Dec. 31, 2018 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investment in Other Affiliates | Investment in Other Affiliates The Company has certain investments in nonmarketable securities of strategic companies. The Company had $6,133,000 and $19,435,000 of such investments as of December 31, 2018 and 2017 , respectively, and are recorded as a component of other long-term assets in the accompanying consolidated balance sheets. As of December 31, 2017, the Company’s investment in Eicher-Polaris Private Limited (EPPL) represented the majority of these investments. 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 $27,048,000 of costs, including impairment, associated with the wind-down of EPPL for the year ended December 31, 2018. As of December 31, 2018 and 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. The impairment was recorded within other expense, net in the consolidated statements of income, and reduced the Brammo investment. See Note 15 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 recorded 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 | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Product liability. Polaris is subject to product liability claims in the normal course of business. 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 estimable. The Company utilizes historical trends and actuarial analysis tools, along with an analysis of current claims, to assist in determining the appropriate loss reserve levels. At December 31, 2018 , the Company had an accrual of $52,801,000 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. Litigation. Polaris is also a defendant in lawsuits and subject to other claims arising in the normal course of business, including matters related to intellectual property, commercial matters, product liability claims, and putative class action lawsuits. As of December 31, 2018 , the Company is party to two putative class actions pending against Polaris in the United States, alleging that certain Polaris products caused personal injury, economic losses, and other damages resulting from unresolved fire hazards and excessive heat hazards. 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, results of operations, or cash flows. However, in many of these matters, it is inherently difficult to determine whether a loss is probable or reasonably possible or to estimate the size or range of the possible loss given the variety and potential outcomes of actual and potential claims, the uncertainty of future rulings, the behavior or incentives of adverse parties, and other factors outside of the control of the Company. Accordingly, the Company’s loss reserve may change from time to time, and actual losses could exceed the amounts accrued by an amount that could be material to the Company’s consolidated financial position, results of operations, or cash flows in any particular reporting period. Regulatory . 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. Leases. Polaris leases buildings and equipment under non-cancelable operating leases. Total rent expense under all operating lease agreements was $38,179,000 , $36,537,000 and $22,534,000 for 2018 , 2017 and 2016 , respectively. A property lease agreement signed in 2013 for a manufacturing facility which Polaris began occupying in Opole, Poland commenced in February 2014. The Poland property lease is accounted for as a capital lease. Future minimum annual lease payments under capital and operating leases with noncancelable terms in excess of one year as of December 31, 2018 , are as follows (in thousands): Capital Operating 2019 $ 2,072 $ 39,047 2020 2,053 29,788 2021 2,020 21,294 2022 1,962 14,352 2023 1,942 10,072 Thereafter 10,648 13,294 Total future minimum lease obligation $ 20,697 $ 127,847 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 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 December 31, 2018 and 2017 , Polaris had the following open foreign currency contracts (in thousands): December 31, 2018 December 31, 2017 Foreign Currency Notional Amounts (in U.S. dollars) Net Unrealized Gain (Loss) Notional Amounts (in U.S. dollars) Net Unrealized Gain (Loss) Australian Dollar — — $ 24,250 $ (134 ) Canadian Dollar $ 55,133 $ 2,564 94,292 (159 ) Mexican Peso 19,222 564 9,999 (133 ) Total $ 74,355 $ 3,128 $ 128,541 $ (426 ) These contracts, with maturities through March 2020 , met the criteria for cash flow hedges, and are recorded in other current assets or other current liabilities on the consolidated balance sheet. The unrealized gains or losses, after tax, are recorded as a component of accumulated other comprehensive loss in shareholders’ equity. During 2018 the Company entered into interest rate swap transactions to hedge the variable interest rate payments for the Term Loan Facility. In connection with this transaction, the Company pays interest based upon a fixed rate and receives variable rate interest payments based on the one-month LIBOR. At December 31, 2018 and 2017 , Polaris had the following open interest rate swap contracts (in thousands): December 31, 2018 December 31, 2017 Effective Date Maturity Date Notional Amounts Net Unrealized Gain (Loss) Notional Amounts Net Unrealized Gain (Loss) May 2, 2018 May 4, 2021 $ 25,000 $ 397 $ — $ — September 28, 2018 September 30, 2019 250,000 (163 ) — — September 30, 2019 September 30, 2023 150,000 (2,899 ) — — Total $ 425,000 $ (2,665 ) $ — $ — These contracts, with maturities through September 2023, met the criteria for cash flow hedges, and are recorded in other current assets or other current liabilities on the consolidated balance sheet. Assets and liabilities are offset in the consolidated balance sheet if the right of offset exists. The unrealized gains or losses, after tax, are recorded as a component of accumulated other comprehensive loss in shareholders’ equity. Polaris occasionally enters into derivative contracts to hedge a portion of the exposure related to diesel fuel and aluminum. As of December 31, 2018 , and 2017 , there were no outstanding commodity derivative contracts in place. The table below summarizes the carrying values of derivative instruments as of December 31, 2018 and 2017 (in thousands): Carrying Values of Derivative Instruments as of December 31, 2018 Fair Value— Assets Fair Value— (Liabilities) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts (1) $ 3,128 $ — $ 3,128 Interest rate contracts (1) — (2,665 ) (2,665 ) Total derivatives designated as hedging instruments $ 3,128 $ (2,665 ) $ 463 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 ) (1) Assets are included in prepaid expenses and other and liabilities are included in other accrued expenses on the accompanying consolidated balance sheets. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in the current income statement. The amount of gains (losses), net of tax, related to the effective portion of derivative instruments designated as cash flow hedges included in accumulated other comprehensive loss for the years ended December 31, 2018 and 2017 was $457,000 and (330,000) , respectively. See Note 9 for information about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive income loss into the income statement for derivative instruments designated as hedging instruments. The ineffective portion of foreign currency contracts was not material for the years ended December 31, 2018 and 2017 . |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s reportable segments are based on the Company’s method of internal reporting, which generally segregates the operating segments by product line, inclusive of wholegoods and PG&A. The internal reporting of these operating segments is defined based, in part, on the reporting and review process used by the Company’s Chief Executive Officer. The Company has six operating segments: 1) ORV, 2) Snowmobiles, 3) Motorcycles, 4) Global Adjacent Markets, 5) Aftermarket, and 6) Boats, and five reportable segments: 1) ORV/Snowmobiles, 2) Motorcycles, 3) Global Adjacent Markets, 4) Aftermarket, and 5) Boats. Through June 30, 2018, the Company reported under four segments for segment reporting. However, during the third quarter ended September 30, 2018, as a result of the Boat Holdings acquisition, the Company established a new reporting segment, Boats, which includes only the results of Boat Holdings since the acquisition on July 2, 2018. The ORV/Snowmobiles segment includes the aggregated results of the ORV and Snowmobiles operating segments. The Motorcycles, Global Adjacent Markets, Aftermarket, and Boats 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): For the Years Ended December 31, 2018 2017 2016 Sales ORV/Snowmobiles $ 3,919,417 $ 3,570,753 $ 3,283,890 Motorcycles 545,646 576,068 699,171 Global Adjacent Markets 444,644 396,764 341,937 Aftermarket 889,177 884,892 191,631 Boats 279,656 — — Total sales 6,078,540 5,428,477 4,516,629 Gross profit ORV/Snowmobiles 1,113,908 1,054,557 907,597 Motorcycles 63,045 16,697 87,538 Global Adjacent Markets 116,583 94,920 95,149 Aftermarket 234,365 225,498 46,289 Boats 46,252 — — Corporate (72,953 ) (67,021 ) (30,950 ) Total gross profit $ 1,501,200 $ 1,324,651 $ 1,105,623 |
Victory Motorcycles Wind Down
Victory Motorcycles Wind Down | 12 Months Ended |
Dec. 31, 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 $5,063,000 and $59,792,000 for the years ended December 31, 2018 and 2017, respectively, that are within the scope of ASC 420, Exit or Disposal Cost Obligations (ASC 420). These totals exclude the positive pretax impact of $2,680,000 and the negative pretax impact of $21,184,000 incurred for other wind-down activities for the years ended December 31, 2018 and 2017, respectively, as well as the pretax impact of a $3,570,000 gain in 2017 resulting from the sale of a cost method investment that was previously impaired. The total impact of wind down activities in 2018 was $2,383,000 , inclusive of promotional activity. The total impact of wind down activities in 2017 was $77,406,000 , inclusive of promotional activity and a gain resulting from the sale of Brammo. Substantially all costs related to wind-down activities were 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 administrative 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 years ended December 31, 2018 and 2017 within the scope of ASC 420 were as follows (in thousands): For the years ended December 31, 2018 2017 Contract termination charges $ 3,433 $ 21,632 Asset impairment charges — 18,760 Inventory charges — 10,169 Other costs 1,630 9,231 Total $ 5,063 $ 59,792 Total reserves related to the Victory Motorcycles wind down activities were $2,697,000 and $5,645,000 as of December 31, 2018 and 2017, respectively. These reserves are included in other accrued expenses and inventory in the consolidated balance sheets. Changes to the reserves during the years ended December 31, 2018 and 2017 were as follows (in thousands): Contract termination charges Inventory charges Other costs Total Reserves balance as of January 1, 2017 — — — — Expenses $ 21,632 $ 10,169 $ 9,231 $ 41,032 Cash payments / scrapped inventory (18,445 ) (9,392 ) (7,550 ) (35,387 ) Reserves balance as of December 31, 2017 $ 3,187 $ 777 $ 1,681 $ 5,645 Expenses 3,433 — 1,630 5,063 Cash payments / scrapped inventory (5,155 ) (399 ) (2,457 ) (8,011 ) Reserves balance as of December 31, 2018 $ 1,465 $ 378 $ 854 $ 2,697 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (unaudited) Sales Gross profit Net income Diluted net income per share (In thousands, except per share data) 2018 First Quarter $ 1,297,473 $ 323,481 $ 55,714 $ 0.85 Second Quarter 1,502,532 385,176 92,540 1.43 Third Quarter 1,651,415 401,270 95,529 1.50 Fourth Quarter 1,627,120 391,273 91,474 1.47 Year $ 6,078,540 $ 1,501,200 $ 335,257 $ 5.24 2017 First Quarter $ 1,153,782 $ 242,491 $ (2,911 ) $ (0.05 ) Second Quarter 1,364,920 350,386 62,041 0.97 Third Quarter 1,478,726 363,962 81,888 1.28 Fourth Quarter 1,431,049 367,812 31,474 0.49 Year $ 5,428,477 $ 1,324,651 $ 172,492 $ 2.69 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | POLARIS INDUSTRIES INC. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS Allowance for Doubtful Accounts Balance at Additions Additions Other Changes Balance at (In thousands) 2016: Deducted from asset accounts—Allowance for doubtful accounts receivable $ 8,644 $ 7,085 $ 4,644 $ (934 ) $ 19,439 2017: Deducted from asset accounts—Allowance for doubtful accounts receivable $ 19,439 $ (965 ) $ — $ (7,560 ) $ 10,914 2018: Deducted from asset accounts—Allowance for doubtful accounts receivable $ 10,914 $ 1,058 $ 60 $ (2,581 ) $ 9,451 (1) Uncollectible accounts receivable written off, net of recoveries. Inventory Reserve Balance at Additions Additions Other Changes Balance at (In thousands) 2016: Deducted from asset accounts—Allowance for obsolete inventory $ 36,269 $ 19,770 $ 5,165 $ (16,029 ) $ 45,175 2017: Deducted from asset accounts—Allowance for obsolete inventory $ 45,175 $ 36,150 $ — $ (34,206 ) $ 47,119 2018: Deducted from asset accounts—Allowance for obsolete inventory $ 47,119 $ 11,565 $ 1,947 $ (12,288 ) $ 48,343 (2) Inventory disposals, net of recoveries. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation. The accompanying consolidated financial statements include the accounts of Polaris and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Income from financial services is reported as a component of operating income to better reflect income from ongoing operations, of which financial services has a significant impact. The Company evaluates consolidation of entities under Accounting Standards Codification (ASC) Topic 810. This Topic requires management to evaluate whether an entity or interest is a variable interest entity and whether the company is the primary beneficiary. Polaris used the guidelines to analyze the Company’s relationships, including its relationship with Polaris Acceptance, and concluded that there were no variable interest entities requiring consolidation by the Company. |
Use of Estimates | Use of estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate results could differ from those estimates. |
Fair Value Measurements | Fair value measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The Company utilizes the market approach to measure fair value for its non-qualified deferred compensation assets and liabilities, and the income approach for the foreign currency contracts and commodity contracts. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities, and for the income approach the Company uses significant other observable inputs to value its derivative instruments used to hedge interest rate volatility, foreign currency and commodity transactions. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of December 31, 2018 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48,545 $ 48,545 $ — $ — Foreign exchange contracts, net 3,128 — 3,128 — Total assets at fair value $ 51,673 $ 48,545 $ 3,128 $ — Non-qualified deferred compensation liabilities $ (48,545 ) $ (48,545 ) $ — $ — Interest rate contracts, net (2,665 ) — (2,665 ) — Total liabilities at fair value $ (51,210 ) $ (48,545 ) $ (2,665 ) $ — 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 December 31, 2018 and December 31, 2017 , the fair value of the Company’s long-term debt, capital lease obligations and notes payable was approximately $2,013,684,000 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 $1,962,570,000 and $913,012,000 as of December 31, 2018 and December 31, 2017 , respectively. Polaris measures certain assets and liabilities at fair value on a nonrecurring basis. Assets acquired and liabilities assumed as part of acquisitions are measured at fair value. Refer to Notes 3 and 7 for additional information. Polaris will impair or write off an investment and recognize a loss when events or circumstances indicate there is impairment in the investment that is other-than-temporary. The amount of loss is determined by measuring the investment at fair value. Refer to Note 11 for additional information. |
Cash Equivalents | Cash equivalents. Polaris considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. Such investments consist principally of money market mutual funds. |
Allowance for Doubtful Accounts | Allowance for doubtful accounts. Polaris’ financial exposure to collection of accounts receivable is limited due to its agreements with certain finance companies. For receivables not serviced through these finance companies, the Company provides a reserve for doubtful accounts based on historical rates and trends. This reserve is adjusted periodically as information about specific accounts becomes available. |
Inventories | Inventories. Inventory costs include material, labor, and manufacturing overhead costs, including depreciation expense associated with the manufacture and distribution of the Company’s products. Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. |
Investment in Affiliate | Investment in other affiliates. Polaris’ investment in other affiliates is included within Other long-term assets in the consolidated balance sheets, and represents the Company’s investment in nonmarketable securities of strategic companies. For each investment, Polaris assesses the level of influence in determining whether to account for the investment under the cost method or equity method. For equity method investments, Polaris’ proportionate share of income or losses is recorded in the consolidated statements of income. Polaris will write down or write off an investment and recognize a loss if and when events or circumstances indicate there is impairment in the investment that is other-than-temporary. Refer to Note 11 for additional information regarding Polaris’ investment in other affiliates. Investment in finance affiliate. The caption investment in finance affiliate in the consolidated balance sheets represents Polaris’ fifty percent equity interest in Polaris Acceptance, a partnership agreement between Wells Fargo Commercial Distribution Finance Corporation and one of Polaris’ wholly-owned subsidiaries. Polaris Acceptance provides floor plan financing to Polaris dealers in the United States. Polaris’ investment in Polaris Acceptance is accounted for under the equity method, and is recorded as investment in finance affiliate in the consolidated balance sheets. Polaris’ allocable share of the income of Polaris Acceptance has been included as a component of income from financial services in the consolidated statements of income. Refer to Note 10 for additional information regarding Polaris’ investment in Polaris Acceptance. |
Property and Equipment | Property and equipment. Property and equipment is stated at cost. Depreciation is provided using the straight-line method over the estimated useful life of the respective assets, ranging from 10 - 40 years for buildings and improvements and from 1 - 7 years for equipment and tooling. Depreciation of assets recorded under capital leases is included with depreciation expense. Fully depreciated tooling is eliminated from the accounting records annually. |
Goodwill and Other Intangible Assets | Goodwill and other intangible assets. |
Revenue Recognition | Revenue recognition. |
Sales Promotions and Incentives | Sales promotions and incentives. Polaris provides for estimated sales promotion and incentive expenses, which are recognized as a component of sales in measuring the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Examples of sales promotion and incentive programs include dealer and consumer rebates, volume incentives, retail financing programs and sales associate incentives. Sales promotion and incentive expenses are estimated based on current programs and historical rates for each product line. The Company records these amounts as a liability in the consolidated balance sheet until they are ultimately paid. Actual results may differ from these estimates if market conditions dictate the need to enhance or reduce sales promotion and incentive programs or if the customer usage rate varies from historical trends. Adjustments to sales promotions and incentives accruals are made from time to time as actual usage becomes known in order to properly estimate the amounts necessary to generate consumer demand based on market conditions as of the balance sheet date. Historically, sales promotion and incentive expenses have been within the Company’s expectations and differences have not been material. |
Dealer Holdback Programs | Dealer holdback programs. Dealer holdback represents a portion of the invoiced sales price that is expected to be subsequently returned to the dealer or distributor as a sales incentive upon the ultimate retail sale of the product. Holdback amounts reduce the ultimate net price of the products purchased by Polaris’ dealers or distributors and, therefore, reduce the amount of sales Polaris recognizes at the time of shipment. The portion of the invoiced sales price estimated as the holdback is recognized as “dealer holdback” liability on the Company’s balance sheet until paid or forfeited. The minimal holdback adjustments in the estimated holdback liability due to forfeitures are recognized in net sales. Payments are made to dealers or distributors at various times during the year subject to previously established criteria. |
Shipping and Handling Costs | Shipping and handling costs. Polaris records shipping and handling costs as a component of cost of sales at the time the product is shipped. |
Research and Development Expenses | Research and development expenses. Polaris records research and development expenses in the period in which they are incurred as a component of operating expenses. |
Advertising Expenses | Advertising expenses. Polaris records advertising expenses as a component of selling and marketing expenses in the period in which they are incurred. |
Product Warranties | Product warranties - Limited warranties. Polaris provides a limited warranty for its vehicles and boats for a period of six months to ten 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. The Company records these amounts as a liability in the consolidated balance sheet until they are ultimately paid. Adjustments to the warranty reserve are made from time to time based on actual claims experience in order to properly estimate the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. Factors that could have an impact on the warranty accrual in any given period include the following: improved manufacturing quality, shifts in product mix, changes in warranty coverage periods, snowfall and its impact on snowmobile usage, product recalls and any significant changes in sales volume. |
Share-Based Employee Compensation | Share-based employee compensation. The Company recognizes in the financial statements the grant-date fair value of stock options and other equity-based compensation issued to employees. Determining the appropriate fair-value model and calculating the fair value of share-based awards at the date of grant requires judgment. The Company utilizes the Black-Scholes option pricing model to estimate the fair value of employee stock options, and the Monte Carlo model to estimate the fair value of employee performance restricted stock units that include a market condition. These pricing models also require the use of input assumptions, including expected volatility, expected life, expected dividend rate, and expected risk-free rate of return. The Company utilizes historical volatility as the Company believes this is reflective of market conditions. The expected life of the awards is based on historical exercise patterns. The risk-free interest rate assumption is based on observed interest rates appropriate for the terms of awards. The dividend yield assumption is based on the Company’s history of dividend payouts. The Company develops an estimate of the number of share-based awards that will be forfeited due to employee turnover. Changes in the estimated forfeiture rate can have a significant effect on reported share-based compensation, as the effect of adjusting the rate for all expense amortization is recognized in the period the forfeiture estimate is changed. If the actual forfeiture rate is higher or lower than the estimated forfeiture rate, then an adjustment is made to increase or decrease the estimated forfeiture rate, which will result in a decrease or increase to the expense recognized in the financial statements. If forfeiture adjustments are made, they would affect gross margin and operating expenses. The Company estimates the likelihood and the rate of achievement for performance share-based awards, specifically long-term compensation grants of performance-based restricted stock unit awards. Changes in the estimated rate of achievement can have a significant effect on reported share-based compensation expenses as the effect of a change in the estimated achievement level is recognized in the period that the likelihood factor changes. If adjustments in the estimated rate of achievement are made, they would be reflected in gross margin and operating expenses. Fluctuations in the Company’s stock price can have a significant effect on reported share-based compensation expenses for liability-based awards. The impact from fluctuations in the Company’s stock price is recognized in the period of the change, and is reflected in gross margin and operating expenses. Refer to Note 4 for additional information regarding share-based compensation. The Company estimates the likelihood and the rate of achievement for performance share-based awards. Changes in the estimated rate of achievement and fluctuation in the market based stock price can have a significant effect on reported share-based compensation expenses as the effect of a change in the estimated achievement level and fluctuation in the market based stock price is recognized in the period that the likelihood factor and stock price changes. If adjustments in the estimated rate of achievement and fluctuation in the market based stock price are made, they would be reflected in gross margin and operating expenses. |
Derivative Instruments and Hedging Activities | Derivative instruments and hedging activities. Changes in the fair value of a derivative are recognized in earnings unless the derivative qualifies as a hedge. To qualify as a hedge, the Company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting. Polaris does not use any financial contracts for trading purposes. Polaris enters into foreign exchange contracts to manage currency exposures from certain of its purchase commitments denominated in foreign currencies and transfers of funds from time to time from its foreign subsidiaries. These contracts meet the criteria for cash flow hedges. Gains and losses on the Canadian dollar and Australian dollar contracts at settlement are recorded in non-operating other expense, net in the consolidated income statements, and gains and losses on the Japanese yen and Mexican peso contracts at settlement are recorded in cost of sales in the consolidated income statements. The contracts are recorded in other current assets or other current liabilities on the consolidated balance sheets. Unrealized gains and losses are recorded as a component of accumulated other comprehensive loss, net. Polaris enters into interest rate swaps in order to maintain a balanced risk of fixed and floating interest rates associated with the Company’s long-term debt. These contracts meet the criteria for cash flow hedges. The contracts are recorded in other current assets or other current liabilities on the consolidated balance sheets. Unrealized gains and losses are recorded as a component of accumulated other comprehensive loss, net. Polaris enters into commodity hedging contracts 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 did not enter into any such derivative contracts during 2018 or 2017 . Refer to Note 13 for additional information regarding derivative instruments and hedging activities. |
Foreign Currency Translation | Foreign currency translation. The functional currency for each of the Polaris foreign subsidiaries is their respective local currencies. The assets and liabilities in all Polaris foreign entities are translated at the foreign exchange rate in effect at the balance sheet date. Translation gains and losses are reflected as a component of accumulated other comprehensive loss in the shareholders’ equity section of the accompanying consolidated balance sheets. Revenues and expenses in all of Polaris’ foreign entities are translated at the average foreign exchange rate in effect for each month of the quarter. Transaction gains and losses including intercompany transactions denominated in a currency other than the functional currency of the entity involved are included in other (income) expense, net in the consolidated statements of income. |
Comprehensive Income | Comprehensive income. Components of comprehensive income include net income, foreign currency translation adjustments, unrealized gains or losses on derivative instruments, and retirement benefit plan activity. The Company discloses comprehensive income in separate consolidated statements of comprehensive income. |
New Accounting Pronouncements | New accounting pronouncements. |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Activity in the limited warranty reserve | The activity in the limited warranty reserve during the periods presented was as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Balance at beginning of year $ 123,840 $ 119,274 $ 56,474 Additions to reserve through acquisitions 19,468 — 147 Additions charged to expense 105,015 145,705 194,996 Less: warranty claims paid (126,499 ) (141,139 ) (132,343 ) Balance at end of year $ 121,824 $ 123,840 $ 119,274 |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of December 31, 2018 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48,545 $ 48,545 $ — $ — Foreign exchange contracts, net 3,128 — 3,128 — Total assets at fair value $ 51,673 $ 48,545 $ 3,128 $ — Non-qualified deferred compensation liabilities $ (48,545 ) $ (48,545 ) $ — $ — Interest rate contracts, net (2,665 ) — (2,665 ) — Total liabilities at fair value $ (51,210 ) $ (48,545 ) $ (2,665 ) $ — 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 | 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): December 31, 2018 December 31, 2017 Raw materials and purchased components $ 233,258 $ 194,108 Service parts, garments and accessories 342,593 307,684 Finished goods 442,003 329,288 Less: reserves (48,343 ) (47,119 ) Inventories $ 969,511 $ 783,961 |
Schedule of activity in the warranty reserve | The activity in the deferred revenue reserve during the periods presented was as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Balance at beginning of year $ 45,760 $ 26,157 Additions to deferred revenue through acquisitions — — $ 7,944 New contracts sold 35,610 31,617 20,569 Less: reductions for revenue recognized (21,455 ) (12,014 ) (2,356 ) Balance at end of year (1) $ 59,915 $ 45,760 $ 26,157 (1) The unamortized ESC premiums (deferred revenue) recorded in other current liabilities totaled $25,777,000 and $18,607,000 at December 31, 2018 and 2017, respectively, while the amount recorded in other long-term liabilities totaled $34,138,000 and $27,153,000 at December 31, 2018, 2017, and 2016, respectively. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Summary of preliminary fair values of net assets acquired and determination of final net assets | The following table summarizes the preliminary fair values assigned to the Boat Holdings net assets acquired and the determination of net assets (in thousands): Cash and cash equivalents $ 16,534 Trade receivables 17,528 Inventory 39,990 Other current assets 4,522 Property, plant and equipment 35,299 Customer relationships 341,080 Trademarks / trade names 210,680 Non-compete agreements 2,630 Goodwill 211,757 Accounts payable (30,064 ) Other liabilities assumed (26,764 ) Total fair value of net assets acquired 823,192 Less cash acquired (16,534 ) Total consideration for acquisition, less cash acquired $ 806,658 The following table summarizes the final fair values assigned to the TAP net assets acquired and the determination of net assets (in thousands): Cash and cash equivalents $ 3,017 Trade receivables 18,214 Inventory 145,094 Property, plant and equipment 33,402 Customer relationships 87,000 Trademarks / trade names 175,500 Goodwill 266,126 Other assets 17,687 Deferred revenue (7,944 ) Other liabilities assumed (66,731 ) Total fair value of net assets acquired 671,365 Less cash acquired (3,017 ) Total consideration for acquisition, less cash acquired $ 668,348 |
Unaudited pro forma information | The following unaudited pro forma information represents the Company’s results of operations as if the fiscal 2016 acquisition of TAP had occurred at the beginning of fiscal 2015 (in thousands, except per share data). These performance results may not be indicative of the actual results that would have occurred under the ownership and management of the Company. For the Year Ended December 31, 2016 Net sales $ 5,161,688 Net income 240,400 Basic earnings per share $ 3.74 Diluted earnings per common share $ 3.69 The following unaudited pro forma information represents the Company’s results of operations as if the fiscal 2018 acquisition of Boat Holdings had occurred at the beginning of fiscal 2017 (in thousands, except per share data): For the Years Ended December 31, 2018 2017 Net sales $ 6,429,700 $ 5,980,741 Net income 360,690 182,749 Basic earnings per share $ 5.77 $ 2.90 Diluted earnings per common share $ 5.64 $ 2.85 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate the Company’s revenue by major product type and geography (in thousands): For the Year Ended December 31, 2018 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Consolidated Revenue by product type Wholegoods $ 3,237,463 $ 465,269 $ 366,103 — $ 279,656 $ 4,348,491 PG&A 681,954 80,377 78,541 $ 889,177 — 1,730,049 Total revenue $ 3,919,417 $ 545,646 $ 444,644 $ 889,177 $ 279,656 $ 6,078,540 Revenue by geography United States $ 3,178,104 $ 371,483 $ 212,653 $ 847,293 $ 274,274 $ 4,883,807 Canada 293,269 31,150 18,539 41,884 5,382 390,224 EMEA 306,890 87,977 208,032 — — 602,899 APLA 141,154 55,036 5,420 — — 201,610 Total revenue $ 3,919,417 $ 545,646 $ 444,644 $ 889,177 $ 279,656 $ 6,078,540 |
Schedule of activity in the warranty reserve | The activity in the deferred revenue reserve during the periods presented was as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Balance at beginning of year $ 45,760 $ 26,157 Additions to deferred revenue through acquisitions — — $ 7,944 New contracts sold 35,610 31,617 20,569 Less: reductions for revenue recognized (21,455 ) (12,014 ) (2,356 ) Balance at end of year (1) $ 59,915 $ 45,760 $ 26,157 (1) The unamortized ESC premiums (deferred revenue) recorded in other current liabilities totaled $25,777,000 and $18,607,000 at December 31, 2018 and 2017, respectively, while the amount recorded in other long-term liabilities totaled $34,138,000 and $27,153,000 at December 31, 2018, 2017, and 2016, respectively. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation expenses | Total share-based compensation expenses were as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Option awards $ 23,393 $ 18,423 $ 23,876 Other share-based awards 28,513 28,844 23,368 Total share-based compensation before tax 51,906 47,267 47,244 Tax benefit 12,354 17,555 17,546 Total share-based compensation expense included in net income $ 39,552 $ 29,712 $ 29,698 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | The following summarizes stock option activity and the weighted average exercise price for the following plans for the each of the three years ended December 31, 2018 , 2017 and 2016 : Omnibus Plan Option Plan Shares Outstanding Weighted Outstanding Weighted Balance as of December 31, 2015 4,105,539 $ 84.61 18,950 $ 23.37 Granted 1,326,430 78.72 — — Exercised (348,206 ) 40.51 (18,950 ) 23.37 Forfeited (366,702 ) 108.90 — — Balance as of December 31, 2016 4,717,061 $ 84.32 — — Granted 1,267,812 88.22 — — Exercised (898,417 ) 44.18 — — Forfeited (192,505 ) 108.15 — — Balance as of December 31, 2017 4,893,951 $ 91.78 — — Granted 806,698 115.43 — — Exercised (724,124 ) 61.49 — — Forfeited (400,599 ) 105.70 — — Balance as of December 31, 2018 4,575,926 $ 99.53 — — Vested or expected to vest as of December 31, 2018 4,575,926 $ 99.53 — — Options exercisable as of December 31, 2018 1,909,271 $ 99.47 — — |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following assumptions were used to estimate the weighted average fair value of options of $26.50 , $18.45 and $16.81 granted during the years ended December 31, 2018 , 2017 and 2016 , respectively: For the Years Ended December 31, 2018 2017 2016 Weighted-average volatility 30 % 29 % 32 % Expected dividend yield 2.1 % 2.6 % 2.8 % Expected term (in years) 4.4 4.7 4.5 Weighted average risk free interest rate 2.6 % 1.9 % 1.4 % |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table summarizes restricted stock activity for the year ended December 31, 2018 : Shares Weighted Balance as of December 31, 2017 1,620,625 $ 93.03 Granted 582,488 114.42 Vested (158,031 ) 101.95 Canceled/Forfeited (403,885 ) 123.80 Balance as of December 31, 2018 1,641,197 $ 92.19 Expected to vest as of December 31, 2018 1,282,659 $ 98.28 |
Financing Agreement (Tables)
Financing Agreement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | ebt, capital lease obligations, and notes payable and the average related interest rates were as follows (in thousands): Average interest rate at December 31, 2018 Maturity December 31, 2018 December 31, 2017 Revolving loan facility 2.88% July 2023 $ 187,631 $ 3,000 Term loan facility 3.76% July 2023 1,150,000 680,000 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 Senior notes—fixed rate 4.23% July 2028 350,000 — Capital lease obligations 5.28% Various through 2029 17,587 19,889 Notes payable and other 4.23% Various through 2030 87,608 12,384 Debt issuance costs (5,256 ) (2,261 ) Total debt, capital lease obligations, and notes payable $ 1,962,570 $ 913,012 Less: current maturities 66,543 47,746 Total long-term debt, capital lease obligations, and notes payable $ 1,896,027 $ 865,266 |
Summary of Activity Under Credit Arrangements, Excluding Acquired Borrowings | The following summarizes activity under Polaris’ credit arrangements (dollars in thousands): 2018 2017 2016 Total borrowings at December 31 $ 1,862,631 $ 883,000 $ 1,112,142 Average outstanding borrowings during year $ 1,474,485 $ 1,133,641 $ 638,614 Maximum outstanding borrowings during year $ 1,999,731 $ 1,319,105 $ 1,234,337 Interest rate at December 31 3.64 % 2.91 % 2.25 % |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and other intangible assets | Goodwill and other intangible assets, net of accumulated amortization, for the periods ended December 31, 2018 and 2017 are as follows (in thousands): 2018 2017 Goodwill $ 647,077 $ 433,374 Other intangible assets, net 870,517 347,212 Total goodwill and other intangible assets, net $ 1,517,594 $ 780,586 |
Schedule of changes in carrying amount of goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 are as follows (in thousands): 2018 2017 Balance as of beginning of year $ 433,374 $ 421,563 Goodwill from businesses acquired 218,191 1,563 Currency translation effect on foreign goodwill balances (4,488 ) 10,248 Balance as of end of year $ 647,077 $ 433,374 |
Schedule of other intangible assets, changes in net carrying amount | For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2018 and 2017 are as follows (in thousands): 2018 2017 Gross Accumulated Gross Accumulated Other intangible assets, beginning $ 423,846 $ (76,634 ) $ 420,546 $ (49,130 ) Intangible assets acquired during the period 557,390 — (461 ) — Intangible assets disposed of during the period (13,659 ) 13,659 — — Amortization expense — (32,927 ) — (25,855 ) Impairment — — (3,657 ) 1,987 Currency translation effect on foreign balances (2,924 ) 1,766 7,418 (3,636 ) Other intangible assets, ending $ 964,653 $ (94,136 ) $ 423,846 $ (76,634 ) |
Schedule of components of other intangible assets | The components of other intangible assets were as follows (in thousands): December 31, 2018 Estimated Life Gross Carrying Accumulated Net Non-compete agreements 4 $ 2,630 $ (329 ) $ 2,301 Dealer/customer related 5-20 506,401 (85,614 ) 420,787 Developed technology 5-7 13,323 (8,193 ) 5,130 Total amortizable 522,354 (94,136 ) 428,218 Non-amortizable—brand/trade names 442,299 — 442,299 Total other intangible assets, net $ 964,653 $ (94,136 ) $ 870,517 December 31, 2017 Estimated Life Gross Carrying Accumulated Net Non-compete agreements 5 $ 540 $ (540 ) $ — Dealer/customer related 5-10 169,694 (60,638 ) 109,056 Developed technology 5-7 22,903 (15,456 ) 7,447 Total amortizable 193,137 (76,634 ) 116,503 Non-amortizable—brand/trade names 230,709 — 230,709 Total other intangible assets, net $ 423,846 $ (76,634 ) $ 347,212 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Before Income Taxes | Polaris’ income from continuing operations before income taxes was generated from its United States and foreign operations as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 United States $ 344,728 $ 264,207 $ 262,403 Foreign 84,521 54,584 50,848 Income from continuing operations before income taxes $ 429,249 $ 318,791 $ 313,251 |
Components of Provision for Income Taxes | Components of Polaris’ provision for income taxes for continuing operations are as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Current: Federal $ 39,051 $ 41,134 $ 103,717 State 3,759 7,264 4,780 Foreign 27,539 22,267 17,367 Deferred 23,643 75,634 (25,561 ) Total provision for income taxes for continuing operations $ 93,992 $ 146,299 $ 100,303 |
Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate | Reconciliation of the Federal statutory income tax rate to the effective tax rate is as follows: For the Years Ended December 31, 2018 2017 2016 Federal statutory rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 1.9 1.4 1.4 Domestic manufacturing deduction (1.4 ) (0.5 ) (2.1 ) Research and development tax credit (3.1 ) (5.6 ) (4.3 ) Stock based compensation (1.4 ) (4.4 ) — Valuation allowance 0.2 1.2 — Tax Reform impact 0.4 17.4 — Non-deductible expenses — 2.0 2.4 Foreign tax rate differential 1.3 (0.3 ) (1.6 ) Other permanent differences 3.0 (0.3 ) 1.2 Effective income tax rate for continuing operations 21.9 % 45.9 % 32.0 % |
Net Deferred Income Taxes | The net deferred income taxes consist of the following (in thousands): December 31, 2018 2017 Deferred income taxes: Inventories $ 11,171 $ 11,072 Accrued expenses 105,218 102,318 Cost in excess of net assets of businesses acquired (22,916 ) (15,171 ) Property and equipment (72,252 ) (52,757 ) Employee compensation and benefits 56,286 55,350 Net operating loss and other loss carryforwards 13,847 13,628 Valuation allowance (10,370 ) (9,057 ) Total net deferred income tax asset $ 80,984 $ 105,383 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): For the Years Ended December 31, 2018 2017 Balance at January 1, $ 19,096 $ 25,001 Gross increases for tax positions of prior years 6,586 1,935 Gross increases for tax positions of current year 2,522 2,397 Decreases due to settlements and other prior year tax positions (2,550 ) (10,338 ) Currency translation effect on foreign balances (143 ) 101 Balance at December 31, 25,511 19,096 Reserves related to potential interest at December 31, 3,090 1,018 Unrecognized tax benefits at December 31, $ 28,601 $ 20,114 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Shareholders Equity [Abstract] | |
Schedule of share repurchases | The Company has made the following share repurchases (in thousands): For the Years Ended December 31, 2018 2017 2016 Total number of shares repurchased and retired 3,184 1,028 2,908 Total investment $ 348,663 $ 90,461 $ 245,816 |
Schedule of cash dividends declared per common share | Dividends. Quarterly and total year cash dividends declared per common share for the year ended December 31, 2018 , 2017 , and 2016 were as follows: For the Years Ended December 31, 2018 2017 2016 Quarterly dividend declared and paid per common share $ 0.60 $ 0.58 $ 0.55 Total dividends declared and paid per common share $ 2.40 $ 2.32 $ 2.20 |
Schedule of reconciliation of weighted average number of shares | A reconciliation of these amounts is as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Weighted average number of common shares outstanding 62,236 62,668 64,033 Director Plan and deferred stock units 177 157 162 ESOP 100 91 101 Common shares outstanding—basic 62,513 62,916 64,296 Dilutive effect of restricted stock awards 679 384 150 Dilutive effect of stock option awards 757 880 712 Common and potential common shares outstanding—diluted 63,949 64,180 65,158 |
Schedule of changes in accumulated other comprehensive income (loss) balances | Changes in the accumulated other comprehensive loss balance is as follows (in thousands): Foreign Cash Flow Retirement Benefit Plan Activity Accumulated Other Balance as of December 31, 2017 $ (42,442 ) $ (34 ) (3,153 ) $ (45,629 ) Reclassification to the income statement — (9,906 ) 261 (9,645 ) Change in fair value (18,062 ) 10,363 — (7,699 ) Balance as of December 31, 2018 $ (60,504 ) $ 423 $ (2,892 ) $ (62,973 ) |
Schedule of gains and losses, net of tax, reclassified from accumulated other comprehensive income into the income statement for cash flow derivatives designated as hedging instruments | The table below provides data about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the income statement for cash flow derivatives designated as hedging instruments and for actuarial losses related to retirement benefit plans the years ended December 31, 2018 and 2017 (in thousands): Derivatives in Cash Flow Hedging Relationships and Retirement Benefit Plan Activity Location of Gain (Loss) Reclassified from Accumulated OCI into Income For the Years Ended December 31, 2018 2017 Foreign currency contracts Other expense, net $ 9,378 $ 1,410 Foreign currency contracts Cost of sales 686 155 Interest rate contracts Interest expense (158 ) — Retirement benefit plan activity Operating expenses (261 ) — Total $ 9,645 $ 1,565 |
Financial Services Arrangemen_2
Financial Services Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Financial Services Arrangements [Abstract] | |
Financial Information for Polaris Acceptance Reflecting the Effects of Securitization Facility | Summarized financial information for Polaris Acceptance reflecting the effects of the Securitization Facility is presented as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Revenues $ 72,093 $ 61,645 $ 66,414 Interest and operating expenses 11,832 7,590 6,182 Net income $ 60,261 $ 54,055 $ 60,232 As of December 31, 2018 2017 Finance receivables, net $ 573,669 $ 518,199 Other assets 102 96 Total Assets $ 573,771 $ 518,295 Notes payable $ 386,438 $ 337,050 Other liabilities 3,215 3,717 Partners’ capital 184,118 177,528 Total Liabilities and Partners’ Capital $ 573,771 $ 518,295 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Annual Lease Payments under Capital and Operating Leases with Non-cancelable Terms in Excess of One Year | Future minimum annual lease payments under capital and operating leases with noncancelable terms in excess of one year as of December 31, 2018 , are as follows (in thousands): Capital Operating 2019 $ 2,072 $ 39,047 2020 2,053 29,788 2021 2,020 21,294 2022 1,962 14,352 2023 1,942 10,072 Thereafter 10,648 13,294 Total future minimum lease obligation $ 20,697 $ 127,847 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of open foreign currency contracts | At December 31, 2018 and 2017 , Polaris had the following open foreign currency contracts (in thousands): December 31, 2018 December 31, 2017 Foreign Currency Notional Amounts (in U.S. dollars) Net Unrealized Gain (Loss) Notional Amounts (in U.S. dollars) Net Unrealized Gain (Loss) Australian Dollar — — $ 24,250 $ (134 ) Canadian Dollar $ 55,133 $ 2,564 94,292 (159 ) Mexican Peso 19,222 564 9,999 (133 ) Total $ 74,355 $ 3,128 $ 128,541 $ (426 ) |
Schedule of open interest rate swap contracts | , Polaris had the following open interest rate swap contracts (in thousands): December 31, 2018 December 31, 2017 Effective Date Maturity Date Notional Amounts Net Unrealized Gain (Loss) Notional Amounts Net Unrealized Gain (Loss) May 2, 2018 May 4, 2021 $ 25,000 $ 397 $ — $ — September 28, 2018 September 30, 2019 250,000 (163 ) — — September 30, 2019 September 30, 2023 150,000 (2,899 ) — — Total $ 425,000 $ (2,665 ) $ — $ — |
Schedule of carrying values of derivative instruments | The table below summarizes the carrying values of derivative instruments as of December 31, 2018 and 2017 (in thousands): Carrying Values of Derivative Instruments as of December 31, 2018 Fair Value— Assets Fair Value— (Liabilities) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts (1) $ 3,128 $ — $ 3,128 Interest rate contracts (1) — (2,665 ) (2,665 ) Total derivatives designated as hedging instruments $ 3,128 $ (2,665 ) $ 463 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 ) (1) Assets are included in prepaid expenses and other and liabilities are included in other accrued expenses on the accompanying consolidated balance sheets. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Accordingly, the segment information presented below is limited to sales and gross profit data (in thousands): For the Years Ended December 31, 2018 2017 2016 Sales ORV/Snowmobiles $ 3,919,417 $ 3,570,753 $ 3,283,890 Motorcycles 545,646 576,068 699,171 Global Adjacent Markets 444,644 396,764 341,937 Aftermarket 889,177 884,892 191,631 Boats 279,656 — — Total sales 6,078,540 5,428,477 4,516,629 Gross profit ORV/Snowmobiles 1,113,908 1,054,557 907,597 Motorcycles 63,045 16,697 87,538 Global Adjacent Markets 116,583 94,920 95,149 Aftermarket 234,365 225,498 46,289 Boats 46,252 — — Corporate (72,953 ) (67,021 ) (30,950 ) Total gross profit $ 1,501,200 $ 1,324,651 $ 1,105,623 |
Polaris' Foreign Operations |
Victory Motorcycles Wind Down (
Victory Motorcycles Wind Down (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Group Activity | Changes to the reserves during the years ended December 31, 2018 and 2017 were as follows (in thousands): Contract termination charges Inventory charges Other costs Total Reserves balance as of January 1, 2017 — — — — Expenses $ 21,632 $ 10,169 $ 9,231 $ 41,032 Cash payments / scrapped inventory (18,445 ) (9,392 ) (7,550 ) (35,387 ) Reserves balance as of December 31, 2017 $ 3,187 $ 777 $ 1,681 $ 5,645 Expenses 3,433 — 1,630 5,063 Cash payments / scrapped inventory (5,155 ) (399 ) (2,457 ) (8,011 ) Reserves balance as of December 31, 2018 $ 1,465 $ 378 $ 854 $ 2,697 Charges related to the wind down plan for the years ended December 31, 2018 and 2017 within the scope of ASC 420 were as follows (in thousands): For the years ended December 31, 2018 2017 Contract termination charges $ 3,433 $ 21,632 Asset impairment charges — 18,760 Inventory charges — 10,169 Other costs 1,630 9,231 Total $ 5,063 $ 59,792 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | Sales Gross profit Net income Diluted net income per share (In thousands, except per share data) 2018 First Quarter $ 1,297,473 $ 323,481 $ 55,714 $ 0.85 Second Quarter 1,502,532 385,176 92,540 1.43 Third Quarter 1,651,415 401,270 95,529 1.50 Fourth Quarter 1,627,120 391,273 91,474 1.47 Year $ 6,078,540 $ 1,501,200 $ 335,257 $ 5.24 2017 First Quarter $ 1,153,782 $ 242,491 $ (2,911 ) $ (0.05 ) Second Quarter 1,364,920 350,386 62,041 0.97 Third Quarter 1,478,726 363,962 81,888 1.28 Fourth Quarter 1,431,049 367,812 31,474 0.49 Year $ 5,428,477 $ 1,324,651 $ 172,492 $ 2.69 |
Organization and Significant _4
Organization and Significant Accounting Policies - Fair Value Measurements (Detail) - Fair value, measurements, recurring - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 51,673 | $ 54,244 |
Total liabilities at fair value | (51,210) | (54,670) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 48,545 | 54,244 |
Total liabilities at fair value | (48,545) | (54,244) |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 3,128 | 0 |
Total liabilities at fair value | (2,665) | (426) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Non-qualified deferred compensation assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation assets | 48,545 | 54,244 |
Non-qualified deferred compensation liabilities | 48,545 | 54,244 |
Non-qualified deferred compensation assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation assets | 48,545 | 54,244 |
Non-qualified deferred compensation liabilities | 48,545 | 54,244 |
Non-qualified deferred compensation assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation assets | 0 | 0 |
Non-qualified deferred compensation liabilities | 0 | 0 |
Non-qualified deferred compensation assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation assets | 0 | 0 |
Non-qualified deferred compensation liabilities | 0 | $ 0 |
Interest rate contracts, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts, net | (2,665) | |
Interest rate contracts, net | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts, net | 0 | |
Interest rate contracts, net | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts, net | (2,665) | |
Interest rate contracts, net | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts, net | 0 | |
Foreign exchange contracts, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | (3,128) | |
Interest rate contracts, net | (426) | |
Foreign exchange contracts, net | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Interest rate contracts, net | 0 | |
Foreign exchange contracts, net | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | (3,128) | |
Interest rate contracts, net | (426) | |
Foreign exchange contracts, net | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Interest rate contracts, net | $ 0 |
- Major Components of Inventori
- Major Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Raw materials and purchased components | $ 233,258 | $ 194,108 |
Service parts, garments and accessories | 342,593 | 307,684 |
Finished goods | 442,003 | 329,288 |
Less: reserves | (48,343) | (47,119) |
Inventories | $ 969,511 | $ 783,961 |
Organization and Significant _5
Organization and Significant Accounting Policies - Activity in Polaris Accrued Warranty Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Activity in Product Warranty Reserve [Roll Forward] | |||
Balance at beginning of year | $ 123,840 | $ 119,274 | $ 56,474 |
Additions to reserve through acquisitions | 19,468 | 0 | 147 |
Additions charged to expense | 105,015 | 145,705 | 194,996 |
Less: warranty claims paid | 126,499 | 141,139 | (132,343) |
Balance at end of year | $ 121,824 | $ 123,840 | $ 119,274 |
Organization and Significant _6
Organization and Significant Accounting Policies - Additional Information (Detail) - USD ($) | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||||
Long-term debt, fair value | $ 2,013,684,000 | $ 922,123,000 | ||
Long-term debt, carrying value | 1,962,570,000 | 913,012,000 | ||
Advertising expenses | $ 65,001,000 | 75,307,000 | $ 85,199,000 | |
Excess tax benefit | $ 14,643,000 | |||
ORVs | ||||
Property, Plant and Equipment [Line Items] | ||||
Period of warranties provided by Polaris | 6 years | |||
Minimum | Building and Building Improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, estimated useful life | 10 years | |||
Minimum | Machinery Equipment And Production Tooling | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, estimated useful life | 1 year | |||
Maximum | Motorcycles | ||||
Property, Plant and Equipment [Line Items] | ||||
Period of warranties provided by Polaris | 10 years | |||
Maximum | Building and Building Improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, estimated useful life | 40 years | |||
Maximum | Machinery Equipment And Production Tooling | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, estimated useful life | 7 years | |||
Polaris Acceptance | ||||
Property, Plant and Equipment [Line Items] | ||||
Equity method investment ownership percentage | 50.00% | |||
Accounting Standards Update 2016-02 | Scenario, Forecast | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated effect of new accounting pronouncement | $ 110,000,000 | |||
Accounting Standards Update 2016-02 | Scenario, Forecast | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated effect of new accounting pronouncement | $ 120,000,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Informaton (Detail) - USD ($) | Jul. 02, 2018 | Nov. 10, 2016 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||||||||||
Total consideration for acquisition, less cash acquired | $ 759,801,000 | $ (1,645,000) | $ 723,705,000 | ||||||||||
Sales | $ 1,627,120,000 | $ 1,651,415,000 | $ 1,502,532,000 | $ 1,297,473,000 | $ 1,431,049,000 | $ 1,478,726,000 | $ 1,364,920,000 | $ 1,153,782,000 | 6,078,540,000 | 5,428,477,000 | 4,516,629,000 | ||
Gross profit | $ 391,273,000 | $ 401,270,000 | $ 385,176,000 | $ 323,481,000 | $ 367,812,000 | $ 363,962,000 | $ 350,386,000 | $ 242,491,000 | 1,501,200,000 | $ 1,324,651,000 | 1,105,623,000 | ||
Boat Holdings, LLC | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Percentage of outstanding voting interest acquired | 100.00% | ||||||||||||
Weighted average useful life | 19 years | ||||||||||||
Acquisition-related costs | 9,646,000 | ||||||||||||
Total consideration for acquisition, less cash acquired | $ 806,658,000 | ||||||||||||
Aggregate consideration | $ 100,000,000 | ||||||||||||
Deferred annual payment term | 12 years | ||||||||||||
Sales | 279,656,000 | ||||||||||||
Gross profit | $ 46,252,000 | ||||||||||||
Boat Holdings, LLC | Customer Relationships | Minimum | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Weighted average useful life | 15 years | ||||||||||||
Boat Holdings, LLC | Customer Relationships | Maximum | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Weighted average useful life | 20 years | ||||||||||||
TAP | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Total consideration for acquisition, less cash acquired | $ 668,348,000 | ||||||||||||
Weighted average useful life | 9 years | ||||||||||||
Net sales included in the consolidated income statement | 108,699,000 | ||||||||||||
Gross profit included in the consolidated income statement | 19,842,000 | ||||||||||||
TAP | Acquisition-related Costs | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Pro forma net income | $ 13,000,000 | ||||||||||||
TAP | Customer Relationships | Minimum | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Weighted average useful life | 5 years | ||||||||||||
TAP | Customer Relationships | Maximum | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Weighted average useful life | 10 years | ||||||||||||
Senior Unsecured Notes 4.23 Percent, Due July 2028 | Senior Notes | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Interest rate, stated percentage | 4.23% | 4.23% | 4.23% |
Acquisitions - Summary of Asset
Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 02, 2018 | Nov. 10, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 647,077 | $ 433,374 | $ 421,563 | ||
Total consideration for acquisition, less cash acquired | $ 759,801 | $ (1,645) | $ 723,705 | ||
Boat Holdings, LLC | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 16,534 | ||||
Trade receivables | 17,528 | ||||
Inventory | 39,990 | ||||
Other current assets | 4,522 | ||||
Property, plant and equipment | 35,299 | ||||
Goodwill | 211,757 | ||||
Accounts payable | (30,064) | ||||
Other liabilities assumed | (26,764) | ||||
Total fair value of net assets acquired | 823,192 | ||||
Less cash acquired | (16,534) | ||||
Total consideration for acquisition, less cash acquired | 806,658 | ||||
TAP | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 3,017 | ||||
Trade receivables | 18,214 | ||||
Inventory | 145,094 | ||||
Property, plant and equipment | 33,402 | ||||
Customer relationships | 87,000 | ||||
Trademarks / trade names | 175,500 | ||||
Goodwill | 266,126 | ||||
Other assets | 17,687 | ||||
Deferred revenue | (7,944) | ||||
Other liabilities assumed | (66,731) | ||||
Total fair value of net assets acquired | 671,365 | ||||
Less cash acquired | (3,017) | ||||
Total consideration for acquisition, less cash acquired | $ 668,348 | ||||
Customer Relationships | Boat Holdings, LLC | |||||
Business Acquisition [Line Items] | |||||
Customer relationships | 341,080 | ||||
Non-compete agreements | Boat Holdings, LLC | |||||
Business Acquisition [Line Items] | |||||
Customer relationships | 2,630 | ||||
Trademarks and Trade Names | Boat Holdings, LLC | |||||
Business Acquisition [Line Items] | |||||
Trademarks / trade names | $ 210,680 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Revenue Arrangement [Line Items] | ||||
Deferred Revenue | $ 59,915,000 | $ 45,760,000 | $ 26,157,000 | |
Deferred Revenue, Current | 25,777,000 | 18,607,000 | ||
Deferred Revenue, Noncurrent | $ 34,138,000 | $ 27,153,000 |
Acquisitions - Unaudited Profor
Acquisitions - Unaudited Proforma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Boat Holdings, LLC | |||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Net sales | $ 6,429,700 | $ 5,980,741 | |
Net income | $ 360,690 | $ 182,749 | |
Basic earnings per share (in dollars per share) | $ 5.77 | $ 2.90 | |
Diluted earnings per common share (in dollars per share) | $ 5.64 | $ 2.85 | |
TAP | |||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Net sales | $ 5,161,688 | ||
Net income | $ 240,400 | ||
Basic earnings per share (in dollars per share) | $ 3,740 | ||
Diluted earnings per common share (in dollars per share) | $ 3,690 |
Revenue Recognition (Contract R
Revenue Recognition (Contract Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 1,627,120 | $ 1,651,415 | $ 1,502,532 | $ 1,297,473 | $ 1,431,049 | $ 1,478,726 | $ 1,364,920 | $ 1,153,782 | $ 6,078,540 | $ 5,428,477 | $ 4,516,629 |
ORV/Snowmobiles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,919,417 | ||||||||||
Motorcycles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 545,646 | ||||||||||
Global Adjacent Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 444,644 | ||||||||||
Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 889,177 | ||||||||||
Boats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 279,656 | ||||||||||
Wholegoods | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 4,348,491 | ||||||||||
Wholegoods | ORV/Snowmobiles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,237,463 | ||||||||||
Wholegoods | Motorcycles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 465,269 | ||||||||||
Wholegoods | Global Adjacent Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 366,103 | ||||||||||
Wholegoods | Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | ||||||||||
Wholegoods | Boats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 279,656 | ||||||||||
PG&A | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,730,049 | ||||||||||
PG&A | ORV/Snowmobiles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 681,954 | ||||||||||
PG&A | Motorcycles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 80,377 | ||||||||||
PG&A | Global Adjacent Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 78,541 | ||||||||||
PG&A | Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 889,177 | ||||||||||
PG&A | Boats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | ||||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 4,883,807 | ||||||||||
United States | ORV/Snowmobiles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,178,104 | ||||||||||
United States | Motorcycles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 371,483 | ||||||||||
United States | Global Adjacent Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 212,653 | ||||||||||
United States | Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 847,293 | ||||||||||
United States | Boats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 274,274 | ||||||||||
Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 390,224 | ||||||||||
Canada | ORV/Snowmobiles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 293,269 | ||||||||||
Canada | Motorcycles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 31,150 | ||||||||||
Canada | Global Adjacent Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 18,539 | ||||||||||
Canada | Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 41,884 | ||||||||||
Canada | Boats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 5,382 | ||||||||||
EMEA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 602,899 | ||||||||||
EMEA | ORV/Snowmobiles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 306,890 | ||||||||||
EMEA | Motorcycles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 87,977 | ||||||||||
EMEA | Global Adjacent Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 208,032 | ||||||||||
EMEA | Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | ||||||||||
EMEA | Boats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | ||||||||||
APLA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 201,610 | ||||||||||
APLA | ORV/Snowmobiles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 141,154 | ||||||||||
APLA | Motorcycles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 55,036 | ||||||||||
APLA | Global Adjacent Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 5,420 | ||||||||||
APLA | Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | ||||||||||
APLA | Boats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 0 |
Revenue Recognition (Deferred R
Revenue Recognition (Deferred Revenue) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue Recognition [Abstract] | |||
Balance at beginning of period | $ 45,760,000 | $ 26,157,000 | |
Deferred Revenue, Additions from Acquisitions | 0 | 0 | 7,944,000 |
New contracts sold | 35,610,000 | 31,617,000 | 20,569,000 |
Balance at end of period | 59,915,000 | 45,760,000 | 26,157,000 |
Deferred Revenue, Revenue Recognized | (21,455,000) | (12,014,000) | $ (2,356,000) |
Deferred Revenue, Current | 25,777,000 | 18,607,000 | |
Deferred Revenue, Noncurrent | $ 34,138,000 | $ 27,153,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested share-based equity awards | $ 96,087 | ||
Weighted average period of recognition of unvested share-based equity awards (in years) | 1 year 4 months 5 days | ||
Unrecognized compensation cost related to unvested share-based equity awards, Stock Options | $ 23,631 | ||
Unrecognized compensation cost related to unvested share-based equity awards, Restricted Stock | $ 72,456 | ||
Weighted average remaining contractual life of option outstanding | 6 years 7 months 25 days | ||
Weighted average remaining contractual life of option exercisable | 4 years 9 months 5 days | ||
Estimated weighted average fair value of options granted | $ 26.50 | $ 18.45 | $ 16.81 |
Total intrinsic value of options exercised | $ 42,511 | ||
Total intrinsic value of options outstanding | 10,899 | ||
Total intrinsic value of options exercisable | $ 8,494 | ||
Weighted average fair values at the grant dates of grants awarded | $ 106.43 | $ 82.14 | |
Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares of common stock available for issuance | 21,000,000 | ||
Omnibus Incentive Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option awards granted, vesting period | 1 year | ||
Omnibus Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option awards granted, vesting period | 4 years | ||
Omnibus Incentive Plan | Deferred Stock Units | Non-employee directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock shares granted | 12,000 | 11,000 | 11,000 |
Additional shares issued to retired directors | 10,000 | 11,000 | |
Omnibus Incentive Plan | Deferred Stock Units | Non-employee directors | Since 2007 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock shares granted | 181,000 | ||
Stock Option Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock shares granted | 806,698 | 1,267,812 | 1,326,430 |
Stock Option Plans | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option awards granted, vesting period | 3 years | ||
Stock Option Plans | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option awards granted, expiration period | 10 years | ||
Directors Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum shares authorized for issuance | 500,000 | ||
Shares of common stock earned | 73,000 | ||
Additional shares issued to retired directors | 427,000 | ||
Liabilities under share plan | $ 7,253 | $ 10,526 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of restricted stock expected to vest | $ 98,354 | ||
Weighted average fair values at the grant dates of grants awarded | $ 114.42 | $ 85.97 | $ 77.53 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Option awards | $ 23,393 | $ 18,423 | $ 23,876 |
Other share-based awards | 28,513 | 28,844 | 23,368 |
Total share-based compensation before tax | 51,906 | 47,267 | 47,244 |
Tax benefit | 12,354 | 17,555 | 17,546 |
Total share-based compensation expense included in net income | $ 39,552 | $ 29,712 | $ 29,698 |
- Stock Option Activity and Wei
- Stock Option Activity and Weighted Average Exercise Price (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Outstanding Shares | |||
Forfeited | 0 | ||
Stock Option Plans | |||
Outstanding Shares | |||
Beginning Balance | 4,893,951 | 4,717,061 | 4,105,539 |
Granted | 806,698 | 1,267,812 | 1,326,430 |
Exercised | (724,124) | (898,417) | (348,206) |
Forfeited | (400,599) | (192,505) | (366,702) |
Ending Balance | 4,575,926 | 4,893,951 | 4,717,061 |
Vested or expected to vest at end of period | 4,575,926 | ||
Options exercisable at end of period | 1,909,271 | ||
Weighted-Average Exercise Price | |||
Beginning Balance | $ 91.78 | $ 84.32 | $ 84.61 |
Granted | 115.43 | 88.22 | 78.72 |
Exercised | 61.49 | 44.18 | 40.51 |
Forfeited | 105.70 | 108.15 | 108.90 |
Ending Balance | 99.53 | $ 91.78 | $ 84.32 |
Vested or expected to vest at end of period | 99.53 | ||
Options exercisable at end of period | $ 99.47 | ||
Omnibus Incentive Plan | |||
Outstanding Shares | |||
Beginning Balance | 0 | 0 | 18,950 |
Exercised | 0 | 0 | (18,950) |
Forfeited | 0 | 0 | |
Ending Balance | 0 | 0 | 0 |
Vested or expected to vest at end of period | 0 | ||
Options exercisable at end of period | 0 | ||
Weighted-Average Exercise Price | |||
Beginning Balance | $ 0 | $ 0 | $ 23.37 |
Exercised | 0 | 0 | 23.37 |
Forfeited | 0 | 0 | 0 |
Ending Balance | 0 | $ 0 | $ 0 |
Vested or expected to vest at end of period | 0 | ||
Options exercisable at end of period | $ 0 |
- Assumptions Used to Estimate
- Assumptions Used to Estimate Weighted Average Fair Value of Options (Detail) - Stock Options | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average volatility | 30.00% | 29.00% | 32.00% |
Expected dividend yield | 2.10% | 2.60% | 2.80% |
Expected term (in years) | 4 years 5 months | 4 years 8 months | 4 years 6 months |
Weighted average risk free interest rate | 2.60% | 1.90% | 1.40% |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions Used to Estimate Fair Value of TSR grants (Details) - TSR Performance Share Awards | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average volatility | 33.00% | 31.00% | 0.00% |
Expected term (in years) | 3 years | 3 years | |
Weighted average risk free interest rate | 2.30% | 1.50% | 0.00% |
- Summary of Restricted Stock A
- Summary of Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted Average Grant Price | |||
Granted | $ 106.43 | $ 82.14 | |
Restricted Stock | |||
Shares Outstanding | |||
Beginning Balance | 1,620,625 | ||
Granted | 582,488 | ||
Vested | (158,031) | ||
Canceled/Forfeited | (403,885) | ||
Ending Balance | 1,641,197 | 1,620,625 | |
Expected to vest as of end of period | 1,282,659 | ||
Weighted Average Grant Price | |||
Beginning Balance | $ 93.03 | ||
Granted | 114.42 | $ 85.97 | $ 77.53 |
Vested | 101.95 | ||
Canceled/Forfeited | 123.80 | ||
Ending Balance | 92.19 | $ 93.03 | |
Expected to vest as of end of period | $ 98.28 |
Employee Savings Plans - Additi
Employee Savings Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expenses related ESOP | $ 10,037 | $ 8,241 | $ 7,849 |
Shares vested under ESOP | 3,315,000 | ||
Matching percentage of employer to employee contributions | 100.00% | ||
Matching contributions to 401(k) retirement savings plan | $ 24,458 | 22,101 | $ 15,456 |
Temporary equity, shares issued (in shares) | 89,168 | ||
Deferred compensation | $ 6,837 | 11,717 | |
Temporary equity, other changes | 7,346 | ||
Temporary equity, accretion to redemption value, adjustment | $ (509) | ||
Employee Stock Ownership Plan E S O P Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Maximum number of shares of common stock available for issuance | 7,200,000 | ||
Fair value, measurements, recurring | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets at fair value | $ 51,673 | 54,244 | |
Level 1 | Fair value, measurements, recurring | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets at fair value | 48,545 | 54,244 | |
Level 1 | Fair value, measurements, recurring | Non-qualified deferred compensation assets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets at fair value | $ 48,545 | $ 54,244 | |
Share-based Compensation Award, Tranche One | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
ESOP vesting period | 2 years | ||
Share-based Compensation Award, Tranche Two | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
ESOP vesting period | 3 years |
Financing Agreement - Debt Inst
Financing Agreement - Debt Instruments (Details) - USD ($) | Dec. 31, 2018 | Jul. 02, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,862,631,000 | $ 883,000,000 | $ 1,112,142,000 | |
Interest rate at December 31 | 3.64% | 2.91% | 2.25% | |
Debt issuance costs | $ (5,256,000) | $ (2,261,000) | ||
Total debt, capital lease obligations, and notes payable | 1,962,570,000 | 913,012,000 | ||
Less: current maturities | 66,543,000 | 47,746,000 | ||
Total long-term debt, capital lease obligations, and notes payable | $ 1,896,027,000 | 865,266,000 | ||
Revolving loan facility | ||||
Debt Instrument [Line Items] | ||||
Average interest rate | 2.88% | |||
Long-term debt | $ 187,631,000 | 3,000,000 | ||
Senior Notes | Senior Unsecured Notes, 3.81 Percent, Due May 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 25,000,000 | ||
Interest rate, stated percentage | 3.81% | |||
Senior Notes | Senior Unsecured Notes, 4.60 Percent, Due May 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 75,000,000 | 75,000,000 | ||
Interest rate, stated percentage | 4.60% | |||
Senior Notes | Senior Unsecured Notes 3.13 Percent Due December 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 100,000,000 | 100,000,000 | ||
Interest rate, stated percentage | 3.13% | |||
Senior Notes | Senior Unsecured Notes 4.23 Percent, Due July 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 350,000,000 | 0 | ||
Interest rate, stated percentage | 4.23% | 4.23% | ||
Capital lease obligations | ||||
Debt Instrument [Line Items] | ||||
Interest rate at December 31 | 5.28% | |||
Capital lease obligations | $ 17,587,000 | 19,889,000 | ||
Notes payable and other | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 4.23% | |||
Notes payable and other | Notes Payable 3.50 Percent Due June 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 87,608,000 | 12,384,000 | ||
Long-term Debt | ||||
Debt Instrument [Line Items] | ||||
Interest rate at period end | 3.76% | |||
Long-term line of credit | $ 1,150,000,000 | $ 680,000,000 |
Financing Agreement - Summary o
Financing Agreement - Summary of Activity Under Credit Arrangements, Excluding Acquired Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |||
Total borrowings at December 31 | $ 1,862,631 | $ 883,000 | $ 1,112,142 |
Average outstanding borrowings during year | 1,474,485 | 1,133,641 | 638,614 |
Maximum outstanding borrowings during year | $ 1,999,731 | $ 1,319,105 | $ 1,234,337 |
Interest rate at December 31 | 3.64% | 2.91% | 2.25% |
Financing Agreement - Additiona
Financing Agreement - Additional Information (Details) - USD ($) | 1 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2016 | May 31, 2016 | Mar. 31, 2016 | Aug. 31, 2011 | |
Line of Credit Facility [Line Items] | ||||||||||
Revolving loan facility, maximum capacity | $ 350,000,000 | |||||||||
Letter of credit outstanding | $ 18,718,000 | |||||||||
Debt outstanding from dealers | 1,643,771,000 | |||||||||
Aggregate repurchase obligation, amount | 164,969,000 | |||||||||
Long-term debt | $ 1,862,631,000 | $ 883,000,000 | $ 1,112,142,000 | |||||||
Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Aggregate repurchase obligation | 15.00% | |||||||||
Master Notes | Senior Unsecured Notes, 3.81 Percent, Due May 2018 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Issuance of senior notes | $ 25,000,000 | |||||||||
Maturity date | May 31, 2018 | |||||||||
Master Notes | Senior Unsecured Notes, 4.60 Percent, Due May 2021 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Issuance of senior notes | $ 75,000,000 | |||||||||
Maturity date | May 31, 2021 | |||||||||
Master Notes | Senior Unsecured Notes 3.13 Percent Due December 2020 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Issuance of senior notes | $ 100,000,000 | |||||||||
Maturity date | Dec. 31, 2020 | |||||||||
Notes payable and other | Mortgages | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Long-term debt | $ 10,875,000 | $ 14,500,000 | ||||||||
Long-term Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Revolving loan facility, maximum capacity | 1,180,000,000 | $ 750,000,000 | ||||||||
Face amount | $ 500,000,000 | |||||||||
Long-term line of credit | 1,150,000,000 | $ 680,000,000 | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | 59,000,000 | |||||||||
Revolving loan facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Revolving loan facility, maximum capacity | $ 700,000,000 | $ 600,000,000 | $ 500,000,000 | |||||||
Boat Holdings, LLC | Notes Payable, Other Payables [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Long-term debt | 76,733,000 | |||||||||
TCF Financial Corporation | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Aggregate repurchase obligation, amount | $ 201,600,000 | |||||||||
TCF Financial Corporation | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Aggregate repurchase obligation | 100.00% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 647,077 | $ 433,374 | $ 421,563 |
Other intangible assets, net | 870,517 | 347,212 | |
Total goodwill and other intangible assets, net | $ 1,517,594 | $ 780,586 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Balance as of beginning of year | $ 433,374 | $ 421,563 |
Goodwill from businesses acquired | 218,191 | 1,563 |
Currency translation effect on foreign goodwill balances | (4,488) | 10,248 |
Balance as of end of year | $ 647,077 | $ 433,374 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets, Changes in Net Carrying Amount (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Gross Amount | ||
Other intangible assets, beginning | $ 423,846 | $ 420,546 |
Intangible assets acquired, purchase accounting adjustment | 557,390 | |
Intangible assets acquired during the period | (461) | |
Impairment | 0 | (3,657) |
Currency translation effect on foreign balances | (2,924) | 7,418 |
Other intangible assets, ending | 964,653 | 423,846 |
Finite-Lived Intangible Assets, Disposal of Intangible Assets | (13,659) | |
Amortization of Intangible Assets, Adjustment for Disposal | 13,659 | |
Accumulated Amortization | ||
Other intangible assets, beginning | (76,634) | (49,130) |
Amortization expense | (32,927) | (25,855) |
Impairment | 0 | 1,987 |
Currency translation effect on foreign balances | 1,766 | (3,636) |
Other intangible assets, ending | $ (94,136) | $ (76,634) |
- Components of Other Intangibl
- Components of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 522,354 | $ 193,137 | |
Accumulated Amortization | (94,136) | (76,634) | $ (49,130) |
Net | 428,218 | 116,503 | |
Total other intangible assets, Gross Carrying Amount | 964,653 | 423,846 | $ 420,546 |
Total other intangible assets, net | $ 870,517 | $ 347,212 | |
Non-compete agreements | |||
Intangible Assets by Major Class [Line Items] | |||
Estimated Life (Years) | 4 years | 5 years | |
Gross Carrying Amount | $ 2,630 | $ 540 | |
Accumulated Amortization | (329) | (540) | |
Net | 2,301 | 0 | |
Dealer/customer related | |||
Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | 506,401 | 169,694 | |
Accumulated Amortization | (85,614) | (60,638) | |
Net | $ 420,787 | $ 109,056 | |
Dealer/customer related | Minimum | |||
Intangible Assets by Major Class [Line Items] | |||
Estimated Life (Years) | 5 years | 5 years | |
Dealer/customer related | Maximum | |||
Intangible Assets by Major Class [Line Items] | |||
Estimated Life (Years) | 20 years | 10 years | |
Developed technology | |||
Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 13,323 | $ 22,903 | |
Accumulated Amortization | (8,193) | (15,456) | |
Net | $ 5,130 | $ 7,447 | |
Developed technology | Minimum | |||
Intangible Assets by Major Class [Line Items] | |||
Estimated Life (Years) | 5 years | 5 years | |
Developed technology | Maximum | |||
Intangible Assets by Major Class [Line Items] | |||
Estimated Life (Years) | 7 years | 7 years | |
Non-amortizable—brand/trade names | |||
Intangible Assets by Major Class [Line Items] | |||
Non-amortizable—brand/trade names | $ 442,299 | $ 230,709 | |
Non-amortizable, Net | $ 442,299 | $ 230,709 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense of intangible assets | $ 32,927 | $ 25,855 |
Estimated Future Amortization Expense by Fiscal Year [Abstract] | ||
2,018 | 40,955 | |
2,019 | 35,831 | |
2,020 | 33,036 | |
2,021 | 28,069 | |
2,022 | 25,539 | |
After 2,022 | $ 264,788 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax reform, provisional amount | $ 55,400,000 | ||
Tax reform, remeasurement of deferred tax balance | 55,800,000 | ||
Tax reform, one-time transition tax | $ (368,000) | ||
Document fiscal year focus | 2,018 | ||
Effective income tax rate for continuing operations | 21.90% | 45.90% | 32.00% |
Undistributed earnings relating to certain non-U.S. subsidiaries | $ 186,679,000 | $ 189,015,000 | |
Net operating loss carryforwards | $ 28,091,000 |
Income Taxes - Income From Cont
Income Taxes - Income From Continuing Operations, Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 344,728 | $ 264,207 | $ 262,403 |
Foreign | 84,521 | 54,584 | 50,848 |
Income before income taxes | $ 429,249 | $ 318,791 | $ 313,251 |
- Components of Provision for I
- Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 39,051 | $ 41,134 | $ 103,717 |
State | 3,759 | 7,264 | 4,780 |
Foreign | 27,539 | 22,267 | 17,367 |
Deferred | 23,643 | 75,634 | (25,561) |
Total provision for income taxes for continuing operations | $ 93,992 | $ 146,299 | $ 100,303 |
- Reconciliation of Federal Sta
- Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 1.90% | 1.40% | 1.40% |
Domestic manufacturing deduction | (1.40%) | (0.50%) | (2.10%) |
Research and development tax credit | (3.10%) | (5.60%) | (4.30%) |
Stock based compensation | (1.40%) | (4.40%) | 0.00% |
Valuation allowance | 0.20% | 1.20% | 0.00% |
Tax Reform impact | 0.40% | 17.40% | 0.00% |
Non-deductible expenses | 0.00% | 2.00% | 2.40% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 1.30% | (0.30%) | (1.60%) |
Other permanent differences | 3.00% | (0.30%) | 1.20% |
Effective income tax rate for continuing operations | 21.90% | 45.90% | 32.00% |
- Net Deferred Income Taxes (De
- Net Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income taxes: | ||
Inventories | $ 11,171 | $ 11,072 |
Accrued expenses | 105,218 | 102,318 |
Cost in excess of net assets of businesses acquired | (22,916) | (15,171) |
Property and equipment | (72,252) | (52,757) |
Employee compensation and benefits | 56,286 | 55,350 |
Net operating loss and other loss carryforwards | 13,847 | 13,628 |
Valuation allowance | (10,370) | (9,057) |
Total net deferred income tax asset | $ 80,984 | $ 105,383 |
- Reconciliation of Beginning a
- Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1, | $ 19,096 | $ 25,001 |
Gross increases for tax positions of prior years | 6,586 | 1,935 |
Gross increases for tax positions of current year | 2,522 | 2,397 |
Decreases due to settlements and other prior year tax positions | (2,550) | (10,338) |
Currency translation effect on foreign balances | (143) | |
Currency translation effect on foreign balances | 101 | |
Balance at December 31, | 25,511 | 19,096 |
Reserves related to potential interest at December 31, | 3,090 | 1,018 |
Unrecognized tax benefits at December 31, | $ 28,601 | $ 20,114 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchases (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Shareholders Equity [Abstract] | |||
Total number of shares repurchased and retired | 3,184 | 1,028 | 2,908 |
Total investment | $ 348,663 | $ 90,461 | $ 245,816 |
Shareholders' Equity - Cash Div
Shareholders' Equity - Cash Dividends Declared Per Common Share (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2012 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Shareholders Equity [Abstract] | ||||||
Quarterly dividend declared and paid per common share | $ 0.60 | $ 0.55 | $ 0.58 | $ 2.4 | $ 2.32 | $ 2.2 |
Shareholders' Equity - Reconcil
Shareholders' Equity - Reconciliation of Weighted Average Number of Shares (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted Average Number of Shares Outstanding [Line Items] | |||
Weighted average number of common shares outstanding | 62,236 | 62,668 | 64,033 |
Director Plan and deferred stock units | 177 | 157 | 162 |
ESOP | 100 | 91 | 101 |
Common shares outstanding—basic | 62,513 | 62,916 | 64,296 |
Common and potential common shares outstanding—diluted | 63,949 | 64,180 | 65,158 |
Restricted Stock | |||
Weighted Average Number of Shares Outstanding [Line Items] | |||
Dilutive effect of stock awards | 679 | 384 | 150 |
Stock Options | |||
Weighted Average Number of Shares Outstanding [Line Items] | |||
Dilutive effect of stock awards | 757 | 880 | 712 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Accumulated Other Comprehensive Income (Loss) Balances (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2017 | $ (45,629) |
Reclassification to the income statement | (9,645) |
Change in fair value | (7,699) |
Balance as of December 31, 2018 | (62,973) |
Foreign Currency Items | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2017 | (42,442) |
Reclassification to the income statement | 0 |
Change in fair value | (18,062) |
Balance as of December 31, 2018 | (60,504) |
Cash Flow Hedging Derivatives | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2017 | (34) |
Reclassification to the income statement | (9,906) |
Change in fair value | 10,363 |
Balance as of December 31, 2018 | 423 |
Retirement Benefit Plan Activity | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2017 | (3,153) |
Reclassification to the income statement | 261 |
Change in fair value | 0 |
Balance as of December 31, 2018 | $ (2,892) |
Shareholders' Equity - Gains an
Shareholders' Equity - Gains and Losses, Net of Tax Reclassified from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | $ 9,645 | $ 1,565 |
Foreign exchange contracts, net | Other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | 9,378 | 1,410 |
Foreign exchange contracts, net | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | 686 | 155 |
Interest rate contracts | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | (158) | $ 0 |
Retirement benefit plan activity | Operating expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | $ (261) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - $ / shares | Feb. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Stockholders Equity Note [Line Items] | ||||
Number of shares authorized to be repurchased (in shares) | 90,460,000 | |||
Remaining authorized repurchase amount (in shares) | 3,251,000 | |||
Employee stock purchase plan number of shares available for issuance | 3,000,000 | |||
Share based compensation arrangements by share based payment award percentage of market price at eligible employees granted options to purchase shares | 95.00% | |||
Stock issued during period, shares, employee stock purchase plans (in shares) | 1,388,000 | |||
Cash dividends declared, per share | $ 2.40 | $ 2.32 | $ 2.20 | |
Common stock excluded from calculation of diluted earnings per share (in shares) | 1,723,000 | 2,768,000 | 2,463,000 | |
Subsequent Event | ||||
Stockholders Equity Note [Line Items] | ||||
Cash dividends declared, per share | $ 0.61 |
- Financial Information for Pol
- Financial Information for Polaris Acceptance Reflecting Effects of Securitization Facility (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Polaris Acceptance | |||
Schedule of Investments [Line Items] | |||
Revenues | $ 72,093 | $ 61,645 | $ 66,414 |
Interest and operating expenses | 11,832 | 7,590 | 6,182 |
Net income | 60,261 | 54,055 | $ 60,232 |
Finance receivables, net | 573,669 | 518,199 | |
Other assets | 102 | 96 | |
Total Assets | 573,771 | 518,295 | |
Notes payable/(receivable) | (386,438) | (337,050) | |
Other liabilities | 3,215 | 3,717 | |
Partners' capital | 184,118 | 177,528 | |
Total Liabilities and Partners' Capital | $ 573,771 | $ 518,295 | |
Maximum | |||
Schedule of Investments [Line Items] | |||
Aggregate repurchase obligation | 15.00% |
Financial Services Arrangemen_3
Financial Services Arrangements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments in and Advances to Affiliates [Line Items] | ||
Investment in finance affiliate | $ 92,059 | $ 88,764 |
Net amount financed for dealers | 1,226,353 | |
Trade receivables, net | 197,082 | $ 200,144 |
Aggregate repurchase obligation, amount | $ 164,969 | |
Maximum | ||
Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation | 15.00% | |
Polaris Acceptance | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity method investment ownership percentage | 50.00% | |
Trade receivables, net | $ 573,669 | |
Securitization Facility | ||
Investments in and Advances to Affiliates [Line Items] | ||
Outstanding balance of receivables | $ 652,684 |
Investment in Other Affiliates
Investment in Other Affiliates (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments in and Advances to Affiliates [Line Items] | |||
Investments in and Advances to Affiliates, at Fair Value | $ 6,133,000 | $ 19,435,000 | |
Investment in finance affiliate | 92,059,000 | 88,764,000 | |
Equity in loss of other affiliates | (29,252,000) | (6,760,000) | $ (6,873,000) |
Cost-method Investments, Realized Gains | $ 13,000,000 | ||
Eicher -Polaris Private Limited | |||
Investments in and Advances to Affiliates [Line Items] | |||
Equity method investment ownership percentage | 50.00% | ||
Equity Method Investment, Other than Temporary Impairment | $ 19,000,000 | ||
Costs and Expenses | 27,048,000 | ||
Eicher -Polaris Private Limited | |||
Investments in and Advances to Affiliates [Line Items] | |||
Investment in finance affiliate | $ 0 | $ 18,616,000 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Annual Lease Payments under Capital and Operating Leases with Non-cancelable Terms in Excess of One Year (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Capital Leases, Lease Obligations | |
2,018 | $ 2,072 |
2,019 | 2,053 |
2,020 | 2,020 |
2,021 | 1,962 |
2,022 | 1,942 |
Thereafter | 10,648 |
Total future minimum lease obligation | 20,697 |
Operating Leases, Lease Obligations | |
2,018 | 39,047 |
2,019 | 29,788 |
2,020 | 21,294 |
2,021 | 14,352 |
2,022 | 10,072 |
Thereafter | 13,294 |
Total future minimum lease obligation | $ 127,847 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Accrual for the probable payment of pending claims | $ 52,801 | ||
Rent expense | $ 38,179 | $ 36,537 | $ 22,534 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Open Foreign Currency Contracts (Detail) - Cash Flow Hedging - Foreign exchange contracts, net - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | $ 74,355 | $ 128,541 |
Net Unrealized Gain (Loss) | 3,128 | (426) |
Australian Dollar | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 0 | 24,250 |
Net Unrealized Gain (Loss) | 0 | (134) |
Canadian Dollar | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 55,133 | 94,292 |
Net Unrealized Gain (Loss) | 2,564 | (159) |
Mexican Peso | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 19,222 | 9,999 |
Net Unrealized Gain (Loss) | $ 564 | $ (133) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Carrying Values of Derivative Instruments (Detail) - Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Derivative Net Carrying Value | $ 463 | $ (426) | |
Foreign exchange contracts, net | |||
Derivative [Line Items] | |||
Derivative Net Carrying Value | [1] | 3,128 | (426) |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative Net Carrying Value | [1] | (2,665) | |
Prepaid Expenses And Other Current Assets | |||
Derivative [Line Items] | |||
Fair Value— Assets | 3,128 | 621 | |
Prepaid Expenses And Other Current Assets | Foreign exchange contracts, net | |||
Derivative [Line Items] | |||
Fair Value— Assets | [1] | 621 | |
Prepaid Expenses And Other Current Assets | Interest Rate Swap | |||
Derivative [Line Items] | |||
Fair Value— Assets | 0 | ||
Fair Value— (Liabilities) | (2,665) | ||
Other Current Liabilities | |||
Derivative [Line Items] | |||
Fair Value— (Liabilities) | (2,665) | (1,047) | |
Other Current Liabilities | Foreign exchange contracts, net | |||
Derivative [Line Items] | |||
Fair Value— Assets | [1] | 3,128 | |
Fair Value— (Liabilities) | [1] | $ 0 | $ (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 He_5
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Gain (loss) recognized in OCI, effective portion | $ 457 | $ (330) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Open Interest Rate Swap Contracts (Details) - Cash Flow Hedging - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Interest Rate Swap, May 2018 To May 2021 [Member] | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | $ 25,000 | $ 0 |
Net Unrealized Gain (Loss) | 397 | 0 |
Interest Rate Swap, September 2018 To September 2019 [Member] | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 250,000 | 0 |
Net Unrealized Gain (Loss) | (163) | 0 |
Interest Rate Swap, September 2019 To September 2023 [Member] | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 150,000 | 0 |
Net Unrealized Gain (Loss) | (2,899) | 0 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 425,000 | 0 |
Net Unrealized Gain (Loss) | $ (2,665) | $ 0 |
Segment Reporting (Detail)
Segment Reporting (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of operating segments | segment | 6 | ||||||||||
Number of reportable segments | segment | 5 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 1,627,120 | $ 1,651,415 | $ 1,502,532 | $ 1,297,473 | $ 1,431,049 | $ 1,478,726 | $ 1,364,920 | $ 1,153,782 | $ 6,078,540 | $ 5,428,477 | $ 4,516,629 |
Gross profit | $ 391,273 | $ 401,270 | $ 385,176 | $ 323,481 | $ 367,812 | $ 363,962 | $ 350,386 | $ 242,491 | 1,501,200 | 1,324,651 | 1,105,623 |
ORV/Snowmobiles | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 3,919,417 | ||||||||||
Motorcycles | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 545,646 | ||||||||||
Global Adjacent Markets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 444,644 | ||||||||||
Aftermarket | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 889,177 | ||||||||||
Boats | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 279,656 | ||||||||||
Operating Segments [Member] | ORV/Snowmobiles | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 3,919,417 | 3,570,753 | 3,283,890 | ||||||||
Gross profit | 1,113,908 | 1,054,557 | 907,597 | ||||||||
Operating Segments [Member] | Motorcycles | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 545,646 | 576,068 | 699,171 | ||||||||
Gross profit | 63,045 | 16,697 | 87,538 | ||||||||
Operating Segments [Member] | Global Adjacent Markets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 444,644 | 396,764 | 341,937 | ||||||||
Gross profit | 116,583 | 94,920 | 95,149 | ||||||||
Operating Segments [Member] | Aftermarket | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 889,177 | 884,892 | 191,631 | ||||||||
Gross profit | 234,365 | 225,498 | 46,289 | ||||||||
Operating Segments [Member] | Boats | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 279,656 | 0 | 0 | ||||||||
Gross profit | 46,252 | 0 | 0 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | $ (72,953) | $ (67,021) | $ (30,950) |
Victory Motorcycles Wind Down -
Victory Motorcycles Wind Down - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain from sale of cost method investments | $ (3,570,000) | ||
Victory Motorcycles | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Charges related to the wind down plan | 5,063,000 | $ 59,792,000 | |
Impact of other wind-down activities | (2,680,000) | (21,184,000) | |
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 | 5,063,000 | 59,792,000 | |
Liability balance | 2,697,000 | 5,645,000 | $ 0 |
Minimum | 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] | |||
Estimated charges | $ 0 | $ 80,000,000 |
Victory Motorcycles Wind Down_2
Victory Motorcycles Wind Down - Wind Down Charges (Details) - Victory Motorcycles - Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | 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 | $ 5,063 | $ 59,792 |
Contract termination charges | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Charges related to the wind down plan | 3,433 | 21,632 |
Asset impairment charges | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Charges related to the wind down plan | 0 | 18,760 |
Inventory charges | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Charges related to the wind down plan | 0 | 10,169 |
Other costs | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Charges related to the wind down plan | $ 1,630 | $ 9,231 |
Victory Motorcycles Wind Down_3
Victory Motorcycles Wind Down - Liability Balance (Details) - Victory Motorcycles - Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Reserves balance as of January 1, 2017 | $ 5,645 | $ 0 |
Expenses | 5,063 | 41,032 |
Cash payments / scrapped inventory | (8,011) | (35,387) |
Reserves balance as of December 31, 2017 | 2,697 | 5,645 |
Contract termination charges | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Reserves balance as of January 1, 2017 | 3,187 | 0 |
Expenses | 3,433 | 21,632 |
Cash payments / scrapped inventory | 5,155 | 18,445 |
Reserves balance as of December 31, 2017 | 1,465 | 3,187 |
Inventory charges | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Reserves balance as of January 1, 2017 | 777 | 0 |
Expenses | 0 | 10,169 |
Cash payments / scrapped inventory | 399 | 9,392 |
Reserves balance as of December 31, 2017 | 378 | 777 |
Other costs | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Reserves balance as of January 1, 2017 | 1,681 | 0 |
Expenses | 1,630 | 9,231 |
Cash payments / scrapped inventory | 2,457 | 7,550 |
Reserves balance as of December 31, 2017 | $ 854 | $ 1,681 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |||||||||||
Sales | $ 1,627,120 | $ 1,651,415 | $ 1,502,532 | $ 1,297,473 | $ 1,431,049 | $ 1,478,726 | $ 1,364,920 | $ 1,153,782 | $ 6,078,540 | $ 5,428,477 | $ 4,516,629 |
Gross profit | $ 391,273 | 401,270 | 385,176 | 323,481 | 367,812 | 363,962 | 350,386 | 242,491 | 1,501,200 | 1,324,651 | 1,105,623 |
Net income | $ 95,529 | $ 92,540 | $ 55,714 | $ 31,474 | $ 81,888 | $ 62,041 | $ (2,911) | $ 335,257 | $ 172,492 | $ 212,948 | |
Diluted net income per share (in dollars per share) | $ 1.47 | $ 1.50 | $ 1.43 | $ 0.85 | $ 0.49 | $ 1.28 | $ 0.97 | $ (0.05) | $ 5.24 | $ 2.69 | $ 3.27 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for obsolete inventory | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 47,119 | $ 45,175 | $ 36,269 |
Additions Charged to Costs and Expenses | 11,565 | 36,150 | 19,770 |
Additions Through Acquisition | 1,947 | 0 | 5,165 |
Other Changes Add (Deduct) | (12,288) | (34,206) | (16,029) |
Balance at End of Period | 48,343 | 47,119 | 45,175 |
Allowance for doubtful accounts receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 10,914 | 19,439 | 8,644 |
Additions Charged to Costs and Expenses | 1,058 | (965) | 7,085 |
Additions Through Acquisition | 60 | 0 | 4,644 |
Other Changes Add (Deduct) | (2,581) | (7,560) | (934) |
Balance at End of Period | $ 9,451 | $ 10,914 | $ 19,439 |
Uncategorized Items - pii-20181
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 17,845,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 23,273,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 31,962,000 |