Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 06, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Common Stock, Shares Outstanding | 61,562,967 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document fiscal year focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PII | ||
Entity Registrant Name | POLARIS INC | ||
Entity Central Index Key | 0000931015 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Annual Report | true | ||
Entity File Number | 001-11411 | ||
Entity Address, Address Line One | 2100 Highway 55 | ||
Entity Address, City or Town | Medina | ||
Entity Address, State or Province | MN | ||
City Area Code | 763 | ||
Local Phone Number | 542-0500 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | 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 Public Float | $ 5,575,885,000 | ||
Entity Tax Identification Number | 41-1790959 | ||
Entity Address, Postal Zip Code | 55340 | ||
Security Exchange Name | NYSE | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE: Portions of the definitive Proxy Statement for the registrant’s Annual Meeting of Shareholders to be held on April 30, 2020 to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this report (the “ 2020 Proxy Statement”), are incorporated by reference into Part III of this Form 10-K. | ||
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 157,064 | $ 161,164 |
Trade receivables, net | 190,430 | 197,082 |
Inventories, net | 1,121,111 | 969,511 |
Prepaid expenses and other | 125,908 | 121,472 |
Income taxes receivable | 32,447 | 36,474 |
Total current assets | 1,626,960 | 1,485,703 |
Land, buildings and improvements | 502,853 | 462,224 |
Equipment and tooling | 1,390,541 | 1,245,312 |
Property and equipment, gross | 1,893,394 | 1,707,536 |
Less: accumulated depreciation | (993,585) | (864,414) |
Property and equipment, net | 899,809 | 843,122 |
Investment in finance affiliate | 110,641 | 92,059 |
Deferred tax assets | 93,282 | 87,474 |
Goodwill and other intangible assets, net | 1,490,235 | 1,517,594 |
Operating Lease, Right-of-Use Asset | 110,153 | |
Other long-term assets | 99,449 | 98,963 |
Total assets | 4,430,529 | 4,124,915 |
Current liabilities: | ||
Current portion of debt, finance lease obligations, and notes payable | 166,695 | 66,543 |
Accounts payable | 450,228 | 346,294 |
Accrued expenses: | ||
Compensation | 184,514 | 167,857 |
Warranties | 136,184 | 121,824 |
Sales promotions and incentives | 189,883 | 167,621 |
Dealer holdback | 145,823 | 125,003 |
Other | 213,892 | 197,687 |
Operating Lease, Liability, Current | 34,904 | |
Income taxes payable | 5,867 | 4,545 |
Total current liabilities | 1,527,990 | 1,197,374 |
Long-term income taxes payable | 28,092 | 28,602 |
Finance lease obligations | 14,814 | 16,140 |
Long-term debt | 1,512,000 | 1,879,887 |
Deferred tax liabilities | 3,952 | 6,490 |
Operating Lease, Liability, Noncurrent | 77,926 | |
Other long-term liabilities | 143,955 | 122,570 |
Total liabilities | 3,308,729 | 3,251,063 |
Deferred compensation | 13,598 | 6,837 |
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, 61,412 and 60,890 shares issued and outstanding, respectively | 614 | 609 |
Additional paid-in capital | 892,849 | 807,986 |
Retained earnings | 287,256 | 121,114 |
Accumulated other comprehensive loss, net | (72,720) | (62,973) |
Total shareholders’ equity | 1,107,999 | 866,736 |
Stockholders' Equity Attributable to Noncontrolling Interest | 203 | 279 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,108,202 | 867,015 |
Total liabilities and equity | $ 4,430,529 | $ 4,124,915 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
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 | 61,169,000 | 60,890,000 |
Common stock, shares outstanding | 61,169,000 | 60,890,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 323,884 | $ 335,257 | $ 172,492 |
Sales | 6,782,518 | 6,078,540 | 5,428,477 |
Cost of sales | 5,133,736 | 4,577,340 | 4,103,826 |
Gross profit | 1,648,782 | 1,501,200 | 1,324,651 |
Operating expenses: | |||
Selling and marketing | 559,107 | 491,773 | 471,805 |
Research and development | 292,935 | 259,682 | 238,299 |
General and administrative | 393,930 | 349,763 | 331,196 |
Total operating expenses | 1,245,972 | 1,101,218 | 1,041,300 |
Operating income | 483,671 | 487,412 | 359,657 |
Non-operating expense: | |||
Interest expense | 77,589 | 56,967 | 32,155 |
Equity in loss of other affiliates | 5,133 | 29,252 | 6,760 |
Other (income) expense, net | (6,851) | (28,056) | 1,951 |
Income before income taxes | 407,800 | 429,249 | 318,791 |
Provision for income taxes | 83,916 | 93,992 | 146,299 |
Net income | 323,960 | 335,257 | 172,492 |
Net Income (Loss) Attributable to Noncontrolling Interest | $ 76 | $ 0 | $ 0 |
Net income per share attributable to Polaris Inc. common shareholders: | |||
Basic (in dollars per share) | $ 5.27 | $ 5.36 | $ 2.74 |
Diluted (in dollars per share) | $ 5.20 | $ 5.24 | $ 2.69 |
Weighted average shares outstanding: | |||
Basic (in shares) | 61,437 | 62,513 | 62,916 |
Diluted (in shares) | 62,292 | 63,949 | 64,180 |
Financial Service | |||
Sales | $ 80,861 | $ 87,430 | $ 76,306 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 323,960 | $ 335,257 | $ 172,492 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 323,884 | 335,257 | 172,492 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (2,792) | (18,062) | 41,691 |
Unrealized (loss) gain on derivative instruments | (6,537) | 457 | (330) |
Retirement plan and other activity | 250 | 261 | (3,153) |
Comprehensive income | 314,881 | 317,913 | 210,700 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 314,805 | 317,913 | 210,700 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | $ 76 | $ 0 | $ 0 |
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) | Non Controlling Interest |
Beginning Balance at Dec. 31, 2016 | $ 867,040 | $ 631 | $ 650,162 | $ 300,084 | $ (83,837) | |
Beginning 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 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 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 | ||||
Cumulative effect of adoption of accounting standards (ASU 2018-02) | $ 1,079 | 1 | 1,078 | |||
Net income | 335,257 | 335,257 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 335,257 | |||||
Other comprehensive income | (17,344) | (17,344) | ||||
Ending Balance at Dec. 31, 2018 | 866,736 | |||||
Ending Balance (in shares) at Dec. 31, 2018 | 60,890 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 867,015 | $ 609 | 807,986 | 121,114 | (62,973) | $ 279 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Employee stock compensation | 74,962 | $ 4 | 74,958 | |||
Deferred compensation | (6,761) | 4,488 | 2,273 | |||
Employee stock compensation (in shares) | 412 | |||||
Proceeds from stock issuances under employee plans | 15,660 | $ 2 | 15,658 | |||
Proceeds from stock issuances under employee plans (in shares) | 205 | |||||
Cash dividends declared ($2.32 per share, $2.20 per share and $2.12 per share in 2017, 2016, and 2015 respectively) | (149,101) | 149,101 | ||||
Repurchase and retirement of common shares | $ (8,378) | $ 1 | 1,265 | 7,112 | ||
Repurchase and retirement of common shares (in shares) | (95) | 95 | ||||
Cumulative effect of adoption of accounting standards (ASU 2018-02) | $ 0 | 668 | (668) | |||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 279 | |||||
Net income | 323,960 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 323,884 | 323,960 | (76) | |||
Other comprehensive income | (9,079) | (9,079) | ||||
Ending Balance at Dec. 31, 2019 | 1,107,999 | |||||
Ending Balance (in shares) at Dec. 31, 2019 | 61,412 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,108,202 | $ 614 | $ 892,849 | $ 287,256 | $ (72,720) | $ 203 |
Consolidated Statements Of Sh_2
Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared, per share | $ 2.44 | $ 2.40 | $ 2.32 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Net income | $ 323,884 | $ 335,257 | $ 172,492 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 234,513 | 211,036 | 191,108 |
Noncash compensation | 74,962 | 63,966 | 50,054 |
Noncash income from financial services | (32,469) | (30,130) | (27,027) |
Deferred income taxes | (9,484) | 23,440 | 73,614 |
Impairment charges | 3,558 | 24,263 | 25,395 |
Other, net | 1,575 | (8,489) | 3,401 |
Changes in operating assets and liabilities: | |||
Trade receivables | 6,812 | 20,686 | (17,064) |
Inventories | (149,872) | (149,701) | (26,958) |
Accounts payable | 103,766 | (984) | 39,516 |
Accrued expenses | 98,965 | 7,170 | 94,557 |
Income taxes payable/receivable | 4,860 | (4,490) | 23,410 |
Prepaid expenses and other, net | (6,034) | (14,912) | (17,090) |
Net cash provided by operating activities | 655,036 | 477,112 | 585,408 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Purchase of property and equipment | (251,374) | (225,414) | (184,388) |
Investment in finance affiliate | (16,953) | (12,289) | (25,230) |
Distributions from finance affiliate | 30,840 | 39,125 | 57,502 |
Investment in other affiliates, net | 0 | (1,113) | (625) |
Acquisition and disposal of businesses, net of cash acquired | (1,800) | (759,801) | 1,645 |
Net cash used for investing activities | (239,287) | (959,492) | (151,096) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Borrowings under debt arrangements / finance lease obligations | 3,368,853 | 3,553,237 | 2,186,939 |
Repayments under debt arrangements / finance lease obligations | (3,638,864) | (2,579,495) | (2,421,473) |
Repurchase and retirement of common shares | (8,378) | (348,663) | (90,461) |
Cash dividends to shareholders | (149,101) | (149,032) | (145,423) |
Proceeds from stock issuances under employee plans | 15,660 | 47,371 | 42,738 |
Net cash (used for) provided by financing activities | (411,830) | 523,418 | (427,680) |
Net increase in cash, cash equivalents and restricted cash | 3,160 | 31,508 | 16,448 |
Impact of currency exchange rates on cash balances | (759) | (9,530) | 9,816 |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid on debt borrowings | 76,959 | 51,014 | 30,884 |
Income taxes paid | 87,844 | 73,999 | 46,308 |
Cash and cash equivalents | 157,064 | 161,164 | 138,345 |
Other long-term assets | 39,222 | 31,962 | 23,273 |
Total | $ 196,286 | $ 193,126 | $ 161,618 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Organization and Significant Accounting Policies Polaris 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. Reclassifications. Certain reclassifications of previously reported balance sheet amounts have been made to conform to the current year presentation. The reclassifications had no impact on the consolidated statements of income, cash flows, or total assets, total liabilities, or total equity in the consolidated balance sheets, as previously reported. 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 foreign currency contracts and interest rate contracts. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities, and for the income approach the Company uses significant other observable inputs to value its derivative instruments used to hedge foreign currency and interest rate transactions. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of December 31, 2019 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48,874 $ 48,874 $ — $ — Total assets at fair value $ 48,874 $ 48,874 $ — $ — Non-qualified deferred compensation liabilities $ (48,874 ) $ (48,874 ) $ — $ — Foreign exchange contracts, net (76 ) — (76 ) — Interest rate contracts, net (8,000 ) — (8,000 ) — Total liabilities at fair value $ (56,950 ) $ (48,874 ) $ (8,076 ) $ — 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 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, finance lease obligations and notes payable, approximate their fair values. At December 31, 2019 and December 31, 2018 , the fair value of the Company’s long-term debt, finance lease obligations and notes payable was approximately $1,769,292,000 and $2,013,684,000 , respectively, and was determined primarily 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, finance lease obligations and notes payable including current maturities was $1,693,509,000 and $1,962,570,000 as of December 31, 2019 and December 31, 2018 , 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, 2019 December 31, 2018 Raw materials and purchased components $ 344,621 $ 233,258 Service parts, garments and accessories 356,981 342,593 Finished goods 476,169 442,003 Less: reserves (56,660 ) (48,343 ) Inventories $ 1,121,111 $ 969,511 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 finance 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 when events or changes in circumstances indicate that the asset might be impaired. The Company completes its annual goodwill impairment test as of the first day of the fourth quarter. The Company may first perform a qualitative assessment to determine whether it is more likely than not that the fair value of each reporting unit is less than its carrying amount. A qualitative assessment requires that we consider events or circumstances including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting unit’s net assets, and changes in our stock price. If, after assessing the totality of events or circumstances, it is determined that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, or if the Company elects to bypass the qualitative test and proceed to a quantitative test, then the quantitative goodwill impairment test is performed. A quantitative test includes comparing the fair value of each reporting unit to 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 a market approach. If the estimated fair value is less than the carrying amount of the reporting unit, an impairment is recognized in an amount equal to the difference, limited to the total amount of goodwill allocated to that reporting unit. Under the quantitative goodwill impairment test, the fair value of each reporting unit is determined using a discounted cash flow analysis and market approach. In developing the Company’s discounted cash flow analysis, assumptions about future revenues and expenses, capital expenditures and changes in working capital are based on the Company’s annual operating plan and long-term business plan for each of the reporting units. These plans take into consideration numerous factors including historical experience, anticipated future economic conditions, changes in raw material prices and growth expectations for the industries and end markets the Company participates in. The Company completed a qualitative assessment for the ORV, Snow, Motorcycles and Global Adjacent Markets reporting units and a quantitative goodwill test for the Aftermarket and Boats reporting units. 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 tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Identifiable intangible assets with indefinite lives are tested for impairment annually or more frequently when events or changes in circumstances indicate that the asset might be impaired. The Company’s identifiable intangible assets with indefinite lives include brand/trade names. The impairment test consists of a comparison of the fair value of the brand/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 identifiable intangible assets with indefinite lives. The results of the impairment tests indicated that no goodwill or indefinite-lived intangible asset impairment existed as of the test date. Refer to Note 7 for additional information regarding goodwill and other intangible assets. Revenue recognition. With respect to wholegood vehicles, boats, parts, garments and accessories, revenue is recognized when the Company transfers control of the product to the customer. With respect to services provided by the Company, revenue is recognized upon completion of the service or over the term of the service agreement in proportion to the costs expected to be incurred in satisfying the obligations over the term of the service period. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. 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 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. 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, 2019 , 2018 and 2017 , Polaris incurred $77,404,000 , $65,001,000 and $75,307,000 of advertising expenses, respectively. Product 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 customary practice and may also provide longer warranties related to certain promotional programs. Polaris’ standard warranties require the Company, through its dealer network, to repair or replace defective products during such warranty periods. 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 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. The warranty reserve includes the estimated costs related to recalls, which are accrued when probable and estimable. Factors that could have an impact on the warranty reserve include the following: changes in manufacturing quality, shifts in product mix, changes in warranty coverage periods, weather and its impact on product usage, product recalls and changes in sales volume. The activity in the warranty reserve during the periods presented was as follows (in thousands): For the Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ 121,824 $ 123,840 $ 119,274 Additions to reserve related to acquisitions 8,809 19,468 — Additions charged to expense 122,909 105,015 145,705 Warranty claims paid, net (117,358 ) (126,499 ) (141,139 ) Balance at end of year $ 136,184 $ 121,824 $ 123,840 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 profit 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 profit 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 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 (income) expense, net in the consolidated income statements, and gains and losses on the Mexican peso contracts at settlement are recorded in cost of sales in the consolidated statements of income. 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. Refer to Note 14 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, retirement benefit plan activity, and other activity. The Company discloses comprehensive income in separate consolidated statements of comprehensive income. New accounting pronouncements. Revenue from contracts with customers. Effective January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers , ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients using the modified retrospective approach. The adoption of these ASUs did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows as of the adoption date or for the year ended December 31, 2018. The Company has included the disclosures required by ASU 2014-09 in Note 2. 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 adopted the standard as of January 1, 2019 using the alternative transition method provided under ASC 842, which allowed the Company to initially apply the new lease standard at the adoption date. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The Company did not elect the hindsight practical expedient permitted under the transition guidance within the new lease standard. The Company made an accounting policy election to not record leases with an initial term of 12 months or less on the balance sheet. The Company also elected 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 new standard resulted in the recognition of additional net lease assets and lease liabilities of approximately $115,681,000 , as of January 1, 2019. The adoption of ASC 842 did not 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 was not restated, but will continue to be reported under the standards in effect for those periods. See Note 12 for further information regarding the Company’s leases. Derivatives and hedging. Effective January 1, 2019, the Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations, equity or cash flows. Non-employee share-based payments. Effective January 1, 2019, the Company adopted ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-based Payment Accounting . The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations, equity or cash flows. Intangibles-Goodwill and Other. Effective January 1, 2019, the Company early adopted ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) . The new standard simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. Stranded Tax Effects. Effective January 1, 2019 the Company adopted ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the reduction of the U.S. federal statutory income tax rate to 21% from 35% due to the enactment of the Tax Act. As a result of the adoption of ASU 2018-02, the Company recorded a $668,000 reclassification to decrease Accumulated Other Comprehensive Income and increase Retained Earnings. Financial instruments. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and in November 2018 issued a subsequent amendment, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. ASU 2018-19 will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope of this amendment that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019, and is effective for the Company’s fiscal year beginning January 1, 2020. The adoption of the ASU is not expected to have a material impact on the Company’s 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, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2019 Acquisitions. The Company did not complete any material acquisitions in 2019. 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 statements of income for the years ended December 31, 2019 and 2018 include $621,353,000 and $279,656,000 of net sales and $124,613,000 and $46,252,000 of gross profit, respectively, related to Boats. The following table summarizes the final 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 39,948 Other current assets 4,451 Property, plant and equipment 35,299 Customer relationships 341,080 Trademarks / trade names 210,680 Non-compete agreements 2,630 Goodwill 222,372 Accounts payable (30,064 ) Other liabilities assumed (37,266 ) 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, 2019 2018 2017 Net sales $ 6,782,518 $ 6,429,700 $ 5,980,741 Net income attributable to Polaris Inc. 328,800 360,690 182,749 Basic earnings per share $ 5.35 $ 5.77 $ 2.90 Diluted earnings per common share $ 5.28 $ 5.64 $ 2.85 The results for the years ended December 31, 2019 and 2018 have been adjusted to exclude the impact of approximately $6,352,000 and $9,646,000 of integration and acquisition-related costs (pre-tax) incurred by the Company that are directly attributable to the transaction. The results for the years ended December 31, 2019, 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; 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 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. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition The following tables disaggregate the Company’s revenue by major product type and geography (in thousands): For the Year Ended December 31, 2019 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total Revenue by product type Wholegoods $ 3,463,135 $ 502,090 $ 373,914 — $ 621,353 $ 4,960,492 PG&A 745,928 82,006 87,341 $ 906,751 — 1,822,026 Total revenue $ 4,209,063 $ 584,096 $ 461,255 $ 906,751 $ 621,353 $ 6,782,518 Revenue by geography United States $ 3,470,141 $ 375,977 $ 232,626 $ 867,052 $ 605,910 $ 5,551,706 Canada 304,020 31,129 4,612 39,699 15,443 394,903 EMEA 302,511 116,158 221,274 — — 639,943 APLA 132,391 60,832 2,743 — — 195,966 Total revenue $ 4,209,063 $ 584,096 $ 461,255 $ 906,751 $ 621,353 $ 6,782,518 For the Year Ended December 31, 2018 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total 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 With respect to wholegood vehicles, boats, parts, garments and accessories, revenue is recognized when the Company transfers control of the product to the customer. With respect to services provided by the Company, revenue is recognized upon completion of the service or over the term of the service agreement in proportion to the costs expected to be incurred in satisfying the obligations over the term of the service period. 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 are recognized as expense when the products are sold. The Company recognizes revenue for vehicle service contracts that extend mechanical and maintenance coverage 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. 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 The Company finances 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 $34,254,000 of the unearned amount over the next 12 months and $47,301,000 thereafter. The activity in the deferred revenue reserve during the periods presented was as follows (in thousands): For the Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ 59,915 $ 45,760 $ 26,157 New contracts sold 49,565 35,610 31,617 Less: reductions for revenue recognized (27,925 ) (21,455 ) (12,014 ) Balance at end of year (1) $ 81,555 $ 59,915 $ 45,760 (1) The unamortized ESC premiums (deferred revenue) recorded in other current liabilities totaled $34,254,000 and $25,777,000 at December 31, 2019 and 2018 , respectively, while the amount recorded in other long-term liabilities totaled $47,301,000 and $34,138,000 at December 31, 2019 and 2018 , respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
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 awards for the benefit of its employees and directors under the shareholder approved Polaris 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 24,325,000 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 196,000 deferred stock units to its non-employee directors under the Omnibus Plan ( 15,000 , 12,000 and 11,000 in 2019 , 2018 and 2017 , 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. Under the Polaris 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. Alternatively, these common stock equivalents may be diversified into other investments until board service ends, pursuant to the terms of the Director Plan. A maximum of 500,000 shares of common stock has been authorized under the Director Plan of which 73,000 common stock equivalents have been earned and 427,000 shares have been issued to retired directors as of December 31, 2019 . Authorized shares under the Director Plan were exhausted in 2017. Since 2017, the Company has granted a total of 35,000 common stock equivalents to its non-employee directors under the Omnibus Plan ( 14,000 in 2019 , 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, 2019 and 2018 , Polaris’ liability under the plans for the common stock equivalents totaled $11,035,000 and $7,253,000 , 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 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, 2019 2018 2017 Option awards $ 21,847 $ 23,393 $ 18,423 Other share-based awards 48,002 28,513 28,844 Total share-based compensation before tax 69,849 51,906 47,267 Tax benefit 16,624 12,354 17,555 Total share-based compensation expense included in net income $ 53,225 $ 39,552 $ 29,712 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, 2019 , there was $91,538,000 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 1.37 years. Included in unrecognized share-based compensation expense is approximately $22,841,000 related to stock options and $68,697,000 for restricted stock. General stock option and restricted stock information. The following summarizes stock option activity and the weighted average exercise price for the Omnibus Plan for the year ended December 31, 2019 : Omnibus Plan Options Outstanding Weighted Balance as of December 31, 2018 4,575,926 $ 99.53 Granted 1,460,602 86.21 Exercised (166,008 ) 65.90 Forfeited (216,262 ) 105.95 Balance as of December 31, 2019 5,654,258 $ 96.83 Vested or expected to vest as of December 31, 2019 5,654,258 $ 96.83 Options exercisable as of December 31, 2019 2,802,466 $ 103.08 The weighted average remaining contractual life of options outstanding and of options outstanding and exercisable as of December 31, 2019 was 6.61 years and 5.07 years, respectively. The following assumptions were used to estimate the weighted average fair value of options of $19.54 , $26.50 and $18.45 granted during the years ended December 31, 2019 , 2018 and 2017 , respectively: For the Years Ended December 31, 2019 2018 2017 Weighted-average volatility 32 % 30 % 29 % Expected dividend yield 2.9 % 2.1 % 2.6 % Expected term (in years) 4.5 4.4 4.7 Weighted average risk free interest rate 2.5 % 2.6 % 1.9 % The total intrinsic value of options exercised during the year ended December 31, 2019 was $5,136,000 . The total intrinsic value of options outstanding and of options outstanding and exercisable at December 31, 2019 , was $73,730,000 and $35,503,000 , 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 value for performance awards with a total shareholder return (TSR) market condition were estimated using a Monte Carlo simulation model utilizing the following weighted-average assumptions: For the Years Ended December 31, 2019 2018 2017 Weighted-average volatility 34 % 33 % 31 % Expected dividend yield 2.7 % 2.1 % 2.5 % Expected term (in years) 3.0 3.0 3.0 Weighted average risk free interest rate 2.4 % 2.3 % 1.5 % The Company used its historical stock price 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 2019 , 2018 , and 2017 was $96.38 , $106.43 , and $82.14 per award, respectively. The following table summarizes restricted stock activity for the year ended December 31, 2019 : Shares Weighted Balance as of December 31, 2018 1,641,197 $ 92.19 Granted 545,365 89.75 Vested (314,555 ) 90.39 Canceled/Forfeited (485,998 ) 76.36 Balance as of December 31, 2019 1,386,009 $ 96.92 Expected to vest as of December 31, 2019 1,397,750 $ 96.79 The shares granted above include 125,000 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, 2019 was $142,151,000 . 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, 2019 , 2018 and 2017 were $89.75 , $114.42 and $85.97 , respectively. |
Employee Savings Plans
Employee Savings Plans | 12 Months Ended |
Dec. 31, 2019 | |
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 $10,335,000 , $10,037,000 and $8,241,000 , in 2019 , 2018 and 2017 , respectively. As of December 31, 2019 there were 3,282,000 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 $26,185,000 , $24,458,000 , and $22,101,000 , in 2019 , 2018 and 2017 , 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 $48,874,000 and $48,545,000 at December 31, 2019 , and 2018 , 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, 2019 , 133,706 shares are recorded at a fair value of $13,598,000 in temporary equity, which includes $11,834,000 of compensation cost and $1,764,000 of cumulative fair value adjustment recorded through retained earnings. |
Financing Agreement
Financing Agreement | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Financing Agreement | Financing Agreement The carrying value of debt, finance lease obligations, and notes payable and the average related interest rates were as follows (in thousands): Average interest rate at December 31, 2019 Maturity December 31, 2019 December 31, 2018 Revolving loan facility 1.10% July 2023 $ 75,183 $ 187,631 Term loan facility 3.05% July 2023 1,000,000 1,150,000 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 350,000 350,000 Finance lease obligations 5.18% Various through 2029 16,073 17,587 Notes payable and other 4.23% Various through 2030 81,388 87,608 Debt issuance costs (4,135 ) (5,256 ) Total debt, finance lease obligations, and notes payable $ 1,693,509 $ 1,962,570 Less: current maturities 166,695 66,543 Total long-term debt, finance lease obligations, and notes payable $ 1,526,814 $ 1,896,027 Bank financing. In July 2018, Polaris amended its unsecured revolving loan facility to increase the facility to $700,000,000 and increase its term loan facility to $1,180,000,000 , of which $1,000,000,000 is outstanding as of December 31, 2019 . 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 the consolidated balance sheets. 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 revolving loan facility and the amended Master Note Purchase Agreement contain covenants that require Polaris to maintain certain financial ratios, including minimum interest coverage and maximum leverage ratios. Polaris was in compliance with all such covenants as of December 31, 2019 . 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. 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 , of which $71,722,000 is outstanding as of December 31, 2019 . 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 $9,666,000 is outstanding as of December 31, 2019 . 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. The following summarizes activity under Polaris’ credit arrangements (dollars in thousands): 2019 2018 2017 Total borrowings at December 31 $ 1,600,183 $ 1,862,631 $ 883,000 Average outstanding borrowings during year $ 1,911,982 $ 1,474,485 $ 1,133,641 Maximum outstanding borrowings during year $ 2,127,940 $ 1,999,731 $ 1,319,105 Interest rate at December 31 3.29 % 3.64 % 2.91 % Letters of credit. At December 31, 2019 , Polaris had open letters of credit totaling $21,637,000 . 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, 2019 , was approximately $1,884,131,000 . 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. At December 31, 2019 , the potential aggregate repurchase obligation was approximately $180,557,000 and $221,500,000 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets, net of accumulated amortization, as of December 31, 2019 and 2018 are as follows (in thousands): 2019 2018 Goodwill $ 659,937 $ 647,077 Other intangible assets, net 830,298 870,517 Total goodwill and other intangible assets, net $ 1,490,235 $ 1,517,594 There were no material additions to goodwill and other intangible assets in 2019. 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 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. The pro forma financial results and the purchase price allocation are included in Note 3. The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 are as follows (in thousands): 2019 2018 Balance as of beginning of year $ 647,077 $ 433,374 Goodwill acquired and related adjustments 14,157 218,191 Currency translation effect on foreign goodwill balances (1,297 ) (4,488 ) Balance as of end of year $ 659,937 $ 647,077 For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2019 and 2018 are as follows (in thousands): 2019 2018 Gross Accumulated Gross Accumulated Other intangible assets, beginning $ 964,653 $ (94,136 ) $ 423,846 $ (76,634 ) Intangible assets acquired during the period 1,077 — 557,390 — Intangible assets disposed of during the period (7,114 ) 7,114 (13,659 ) 13,659 Amortization expense — (40,882 ) — (32,927 ) Currency translation effect on foreign balances (1,788 ) 1,374 (2,924 ) 1,766 Other intangible assets, ending $ 956,828 $ (126,530 ) $ 964,653 $ (94,136 ) The components of other intangible assets were as follows (in thousands): December 31, 2019 Estimated Life Gross Carrying Accumulated Net Non-compete agreements 4 $ 2,630 $ (986 ) $ 1,644 Dealer/customer related 5-20 499,513 (116,142 ) 383,371 Developed technology 5-7 12,655 (9,402 ) 3,253 Total amortizable 514,798 (126,530 ) 388,268 Non-amortizable—brand/trade names 442,030 — 442,030 Total other intangible assets, net $ 956,828 $ (126,530 ) $ 830,298 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 Amortization expense for intangible assets for the year ended December 31, 2019 and 2018 was $40,882,000 and $32,927,000 , respectively. Estimated amortization expense for 2020 through 2024 is as follows: 2020 , $36,056,000 ; 2021 , $33,288,000 ; 2022 , $28,323,000 ; 2023 , $25,791,000 ; 2024 , $25,023,000 ; and after 2024 , $239,787,000 . 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, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017. The Tax 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 Tax 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 Tax Act which resulted in an immaterial change to the provisional amounts described above. Polaris’ income before income taxes was generated from its United States and foreign operations as follows (in thousands): For the Years Ended December 31, 2019 2018 2017 United States $ 344,346 $ 344,728 $ 264,207 Foreign 63,454 84,521 54,584 Income before income taxes $ 407,800 $ 429,249 $ 318,791 Components of Polaris’ provision for income taxes are as follows (in thousands): For the Years Ended December 31, 2019 2018 2017 Current: Federal $ 46,441 $ 39,051 $ 41,134 State 18,199 3,759 7,264 Foreign 26,798 27,539 22,267 Deferred (7,522 ) 23,643 75,634 Total provision for income taxes $ 83,916 $ 93,992 $ 146,299 Reconciliation of the Federal statutory income tax rate to the effective tax rate is as follows: For the Years Ended December 31, 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 2.3 1.9 1.4 Domestic manufacturing deduction (2.1 ) (1.4 ) (0.5 ) Research and development tax credit (4.0 ) (3.1 ) (5.6 ) Stock based compensation 0.2 (1.4 ) (4.4 ) Valuation allowance 0.5 0.2 1.2 Tax Reform impact — 0.4 17.4 Non-deductible expenses — — 2.0 Foreign tax rate differential 1.7 1.3 (0.3 ) Other permanent differences 1.0 3.0 (0.3 ) Effective income tax rate for continuing operations 20.6 % 21.9 % 45.9 % Undistributed earnings relating to certain non-U.S. subsidiaries of approximately $188,033,000 and $186,679,000 at December 31, 2019 and 2018 , respectively, are considered to be permanently reinvested. 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): As of December 31, 2019 2018 Deferred income taxes: Inventories $ 18,550 $ 11,171 Accrued expenses 126,593 105,218 Cost in excess of net assets of businesses acquired (35,203 ) (22,916 ) Property and equipment (88,145 ) (72,252 ) Operating lease assets (26,480 ) — Operating lease liabilities 27,115 — Employee compensation and benefits 61,441 56,286 Net operating loss and other loss carryforwards 20,079 13,847 Valuation allowance (14,620 ) (10,370 ) Total net deferred income tax asset $ 89,330 $ 80,984 At December 31, 2019 , the Company had available unused international and acquired federal net operating loss carryforwards of $48,061,000 . The net operating loss carryforwards will expire at various dates from 2021 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, 2019 , if recognized, would affect the Company’s effective tax rate. The Company anticipates that it is reasonably possible that gross unrecognized tax benefits as of December 31, 2019 may decrease by a range of zero to $12,000,000 during 2020, primarily as a result of ongoing U.S. federal examinations. Tax years 2013 through 2019 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, 2019 2018 Balance at January 1, $ 25,511 $ 19,096 Gross increases for tax positions of prior years 1,237 6,586 Gross increases for tax positions of current year 3,969 2,522 Decreases due to settlements and other prior year tax positions (5,629 ) (2,550 ) Decreases for lapse of statute of limitations (752 ) — Currency translation effect on foreign balances 42 (143 ) Balance at December 31, 24,378 25,511 Reserves related to potential interest and penalties at December 31, 3,714 3,090 Unrecognized tax benefits at December 31, $ 28,092 $ 28,601 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , 3,156,000 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, 2019 2018 2017 Total number of shares repurchased and retired 95 3,184 1,028 Total investment $ 8,378 $ 348,663 $ 90,461 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, 2019 , approximately 1,427,000 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, 2019 , 2018 , and 2017 were as follows: For the Years Ended December 31, 2019 2018 2017 Quarterly dividend declared and paid per common share $ 0.61 $ 0.60 $ 0.58 Total dividends declared and paid per common share $ 2.44 $ 2.40 $ 2.32 On January 31, 2020 , the Polaris Board of Directors declared a regular cash dividend of $0.62 per share payable on March 16, 2020 to holders of record of such shares at the close of business on March 2, 2020 . 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, 2019 2018 2017 Weighted average number of common shares outstanding 61,109 62,236 62,668 Director Plan and deferred stock units 207 177 157 ESOP 121 100 91 Common shares outstanding—basic 61,437 62,513 62,916 Dilutive effect of restricted stock awards 581 679 384 Dilutive effect of stock option awards 274 757 880 Common and potential common shares outstanding—diluted 62,292 63,949 64,180 During 2019 , 2018 and 2017 , 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, was 3,846,000 , 1,723,000 and 2,768,000 , respectively. Accumulated other comprehensive loss. Changes in the accumulated other comprehensive loss balance is as follows (in thousands): Foreign Currency Translation Cash Flow Hedging Derivatives Retirement Plan and Other Activity Accumulated Other Comprehensive Loss Balance as of December 31, 2018 $ (60,504 ) $ 423 (2,892 ) $ (62,973 ) Reclassification to the income statement — (3,219 ) 250 (2,969 ) Reclassification to retained earnings — — (668 ) (668 ) Change in fair value (2,792 ) (3,318 ) — (6,110 ) Balance as of December 31, 2019 $ (63,296 ) $ (6,114 ) $ (3,310 ) $ (72,720 ) 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, 2019 and 2018 (in thousands): Derivatives in Cash Flow Hedging Relationships and Other Activity Location of Gain (Loss) Reclassified from Accumulated OCI into Income For the Years Ended December 31, 2019 2018 Foreign currency contracts Other expense, net $ 3,198 $ 9,378 Foreign currency contracts Cost of sales 920 686 Interest rate contracts Interest expense (899 ) (158 ) Retirement plan activity Operating expenses (250 ) (261 ) Total $ 2,969 $ 9,645 The net amount of the existing gains or losses at December 31, 2019 that is expected to be reclassified into the income statement within the next 12 months is expected to not be material. See Note 14 for further information regarding Polaris’ derivative activities. |
Financial Services Arrangements
Financial Services Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
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, as amended and extended in August 2019, is effective through February 2027. Polaris’ total investment in Polaris Acceptance of $110,641,000 at December 31, 2019 is accounted for under the equity method, and is recorded in investment in finance affiliate in the accompanying consolidated balance sheets. At December 31, 2019 , the outstanding amount of net receivables financed for dealers under this arrangement was $1,423,428,000 , which included $687,646,000 in the Polaris Acceptance portfolio and $735,782,000 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 2019 , the potential 15 percent aggregate repurchase obligation was approximately $180,557,000 . 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, 2019 2018 2017 Revenues $ 79,276 $ 72,093 $ 61,645 Interest and operating expenses 14,337 11,832 7,590 Net income $ 64,939 $ 60,261 $ 54,055 As of December 31, 2019 2018 Finance receivables, net $ 687,646 $ 573,669 Other assets 105 102 Total Assets $ 687,751 $ 573,771 Notes payable $ 463,055 $ 386,438 Other liabilities 3,414 3,215 Partners’ capital 221,282 184,118 Total Liabilities and Partners’ Capital $ 687,751 $ 573,771 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, 2019 , the potential aggregate repurchase obligation was approximately $221,500,000 . 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. |
Investment in Other Affiliates
Investment in Other Affiliates | 12 Months Ended |
Dec. 31, 2019 | |
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 $0 and $6,133,000 of such investments as of December 31, 2019 and 2018 , respectively, which are recorded as a component of other long-term assets in the accompanying consolidated balance sheets. During 2018, the Company had an investment in Eicher-Polaris Private Limited (“EPPL”) a joint venture established in 2012 with Eicher Motors Limited (“Eicher”) intended to design, develop and manufacture a full range of new vehicles for India and other emerging markets. However, 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 closure, the Company recognized $27,048,000 of costs, including impairment, associated with the wind-down of EPPL for the year ended December 31, 2018. No such costs were recorded in 2019. The investment was fully impaired as of December 31, 2019 and 2018. The Company impairs 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 16 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 (income) expense, 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 (income) expense on the consolidated statements of income. |
Leases Leases
Leases Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain manufacturing facilities, retail stores, warehouses, distribution centers, office space, land, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. As most of the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years years or more. Such options are included in the lease term when it is reasonably certain that the option will be exercised. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain lease agreements include rental payments that are variable based on usage or are adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Information on the Company’s leases is summarized as follows (in thousands): Classification December 31, 2019 Assets Operating lease assets Operating lease assets $ 110,153 Finance lease assets Property and equipment, net (1) 12,721 Total leased assets $ 122,874 Liabilities Current Operating lease liabilities Current operating lease liabilities $ 34,904 Finance lease liabilities Current portion of debt, finance lease obligations and notes payable 1,259 Long-term Operating lease liabilities Long-term operating lease liabilities 77,926 Finance lease liabilities Finance lease obligations 14,814 Total lease liabilities $ 128,903 (1) Finance lease assets are recorded net of accumulated amortization of $7,757,000 as of December 31, 2019 . Lease Cost Classification For the Year Ended December 31, 2019 Operating lease cost (1) Operating expenses and cost of sales $ 42,477 Finance lease cost Amortization of leased assets Operating expenses and cost of sales 1,486 Interest on lease liabilities Interest expense 875 Sublease income Other (income) expense, net (2,382 ) Total lease cost $ 42,456 (1) Includes short-term leases and variable lease costs, which are immaterial. Maturity of Lease Liabilities Operating Leases (1) Finance Leases Total 2020 $ 38,095 $ 2,119 $ 40,214 2021 28,004 2,107 30,111 2022 19,289 2,070 21,359 2023 13,960 2,070 16,030 2024 8,913 2,085 10,998 Thereafter 12,967 9,940 22,907 Total lease payments $ 121,228 $ 20,391 $ 141,619 Less: interest 8,398 4,318 Present value of lease payments $ 112,830 $ 16,073 (1) Operating lease payments include $3,429,000 related to options to extend lease terms that are reasonably certain of being exercised. Leases that the Company has signed but have not yet commenced are immaterial. Lease Term and Discount Rate December 31, 2019 Weighted-average remaining lease term (years) Operating leases 4.47 Finance leases 9.48 Weighted-average discount rate Operating leases 3.29 % Finance leases 5.18 % Other Information For the Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 42,687 Operating cash flows from finance leases 858 Financing cash flows from finance leases 1,254 Leased assets obtained in exchange for new operating lease liabilities 28,773 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Product liability. The Company is subject to product liability claims in the normal course of business. The Company carries excess insurance coverage for product liability claims. The Company self-insures product liability claims before the policy date and up to the purchased 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, along with an analysis of current claims, to assist in determining the appropriate loss reserve levels. At December 31, 2019 and 2018 , the Company had an accrual of $56,961,000 and $52,801,000 , respectively, for the probable payment of pending and expected claims related to product liability matters associated with Polaris products. This accrual is included as a component of other accrued expenses in the consolidated balance sheets. Litigation. The Company is 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, 2019 , the Company is party to three putative class actions pending against the Company in the United States. Two class actions allege that certain Polaris products caused economic losses resulting from unresolved fire hazards and excessive heat hazards. The third class action alleges that the Company violated various California consumer protection laws. 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 the Company will have a material adverse effect on the Company’s 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. Leases. The Company leases buildings and equipment under non-cancelable operating leases. Total rent expense under all operating lease agreements was $42,477,000 , $38,179,000 and $36,537,000 for 2019 , 2018 and 2017 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
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. The primary risks managed by using derivative instruments are foreign currency risk and interest rate risk. Derivative contracts on various currencies are entered into in order to manage foreign currency exposures associated with certain product sourcing activities and intercompany cash flows. Interest rate swaps are entered into in order to maintain a balanced risk of fixed and floating interest rates associated with the Company’s long-term debt. 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, 2019 and 2018 , Polaris had the following open foreign currency contracts (in thousands): December 31, 2019 December 31, 2018 Foreign Currency Notional Amounts (in U.S. dollars) Net Unrealized Gain (Loss) Notional Amounts (in U.S. dollars) Net Unrealized Gain (Loss) Australian Dollar $ 15,971 $ (86 ) — — Canadian Dollar 101,397 (1,069 ) $ 55,133 $ 2,564 Mexican Peso 16,986 1,079 19,222 564 Total $ 134,354 $ (76 ) $ 74,355 $ 3,128 These contracts, with maturities through December 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. The Company enters into interest rate swap transactions to hedge the variable interest rate payments for the term loan facility. In connection with these transactions, the Company pays interest based upon a fixed rate and receives variable rate interest payments based on the one-month LIBOR. At December 31, 2019 and 2018 , Polaris had the following open interest rate swap contracts (in thousands): December 31, 2019 December 31, 2018 Effective Date Termination Date Notional Amounts Net Unrealized Gain (Loss) Notional Amounts Net Unrealized Gain (Loss) May 2, 2018 May 4, 2021 $ 25,000 $ (67 ) $ 25,000 $ 397 September 28, 2018 September 30, 2019 — — 250,000 (163 ) September 30, 2019 September 30, 2023 150,000 (7,696 ) 150,000 (2,899 ) May 3, 2019 May 3, 2020 100,000 (237 ) — — Total $ 275,000 $ (8,000 ) $ 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. The table below summarizes the carrying values of derivative instruments as of December 31, 2019 and 2018 (in thousands): Carrying Values of Derivative Instruments as of December 31, 2019 Fair Value— Assets Fair Value— (Liabilities) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts $ 1,079 $ (1,155 ) $ (76 ) Interest rate contracts — (8,000 ) (8,000 ) Total derivatives designated as hedging instruments $ 1,079 $ (9,155 ) $ (8,076 ) 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 $ 3,128 — $ 3,128 Interest rate contracts — $ (2,665 ) (2,665 ) Total derivatives designated as hedging instruments $ 3,128 $ (2,665 ) $ 463 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 other comprehensive loss for the years ended December 31, 2019 and 2018 was $(6,537,000) and $457,000 , 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, 2019 and 2018 . |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
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. 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, 2019 2018 2017 Sales ORV/Snowmobiles $ 4,209,063 $ 3,919,417 $ 3,570,753 Motorcycles 584,096 545,646 576,068 Global Adjacent Markets 461,255 444,644 396,764 Aftermarket 906,751 889,177 884,892 Boats 621,353 279,656 — Total sales $ 6,782,518 $ 6,078,540 $ 5,428,477 Gross profit ORV/Snowmobiles 1,204,288 1,113,908 1,054,557 Motorcycles 44,065 63,045 16,697 Global Adjacent Markets 129,939 116,583 94,920 Aftermarket 222,712 234,365 225,498 Boats 124,613 46,252 — Corporate (76,835 ) (72,953 ) (67,021 ) Total gross profit $ 1,648,782 $ 1,501,200 $ 1,324,651 |
Victory Motorcycles Wind Down
Victory Motorcycles Wind Down | 12 Months Ended |
Dec. 31, 2019 | |
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). There were no such charges recognized in 2019. 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. 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. Wind down activities in 2019 and the reserve balance at December 31, 2019 were immaterial. 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, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (unaudited) Sales Gross profit Net income attributable to Polaris Inc. Diluted net income per share attributable to Polaris Inc. common shareholders (In thousands, except per share data) 2019 First Quarter $ 1,495,690 $ 352,448 $ 48,378 $ 0.78 Second Quarter 1,779,315 436,448 88,263 1.42 Third Quarter 1,771,647 436,542 88,388 1.42 Fourth Quarter 1,735,866 423,344 98,931 1.58 Year $ 6,782,518 $ 1,648,782 $ 323,960 $ 5.20 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 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | POLARIS INC. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS Allowance for Doubtful Accounts Balance at Additions Additions Other Changes Balance at (In thousands) 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 2019: Deducted from asset accounts—Allowance for doubtful accounts receivable $ 9,451 $ 767 $ — $ (878 ) $ 9,340 (1) Uncollectible accounts receivable written off, net of recoveries. Inventory Reserve Balance at Additions Additions Other Changes Balance at (In thousands) 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 2019: Deducted from asset accounts—Allowance for obsolete inventory $ 48,343 $ 21,930 $ 454 $ (14,067 ) $ 56,660 (2) Inventory disposals, net of recoveries. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. Reclassifications. Certain reclassifications of previously reported balance sheet amounts have been made to conform to the current year presentation. The reclassifications had no impact on the consolidated statements of income, cash flows, or total assets, total liabilities, or total equity in the consolidated balance sheets, as previously reported. |
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 foreign currency contracts and interest rate contracts. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities, and for the income approach the Company uses significant other observable inputs to value its derivative instruments used to hedge foreign currency and interest rate transactions. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements as of December 31, 2019 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48,874 $ 48,874 $ — $ — Total assets at fair value $ 48,874 $ 48,874 $ — $ — Non-qualified deferred compensation liabilities $ (48,874 ) $ (48,874 ) $ — $ — Foreign exchange contracts, net (76 ) — (76 ) — Interest rate contracts, net (8,000 ) — (8,000 ) — Total liabilities at fair value $ (56,950 ) $ (48,874 ) $ (8,076 ) $ — 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 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, finance lease obligations and notes payable, approximate their fair values. At December 31, 2019 and December 31, 2018 , the fair value of the Company’s long-term debt, finance lease obligations and notes payable was approximately $1,769,292,000 and $2,013,684,000 , respectively, and was determined primarily 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, finance lease obligations and notes payable including current maturities was $1,693,509,000 and $1,962,570,000 as of December 31, 2019 and December 31, 2018 , 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 |
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. |
Investment in Affiliate | Investment in other affiliates. Investment in finance affiliate. The caption Investment in finance affiliate in the consolidated balance sheets represents Polaris’ fifty |
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 |
Goodwill and Other Intangible Assets | Goodwill and other intangible assets. |
Revenue Recognition | Revenue recognition. With respect to wholegood vehicles, boats, parts, garments and accessories, revenue is recognized when the Company transfers control of the product to the customer. With respect to services provided by the Company, revenue is recognized upon completion of the service or over the term of the service agreement in proportion to the costs expected to be incurred in satisfying the obligations over the term of the service period. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. 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 | Sales promotions and incentives. |
Dealer Holdback Programs | Dealer holdback programs. |
Shipping and Handling Costs | Shipping and handling costs. |
Research and Development Expenses | Research and development expenses. |
Advertising Expenses | Advertising expenses. |
Product Warranties | Product 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 customary practice and may also provide longer warranties related to certain promotional programs. Polaris’ standard warranties require the Company, through its dealer network, to repair or replace defective products during such warranty periods. 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 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. The warranty reserve includes the estimated costs related to recalls, which are accrued when probable and estimable. Factors that could have an impact on the warranty reserve include the following: changes in manufacturing quality, shifts in product mix, changes in warranty coverage periods, weather and its impact on product usage, product recalls and 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 profit 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 |
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 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 (income) expense, net in the consolidated income statements, and gains and losses on the Mexican peso contracts at settlement are recorded in cost of sales in the consolidated statements of income. 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. Refer to Note 14 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, retirement benefit plan activity, and other activity. The Company discloses comprehensive income in separate consolidated statements of comprehensive income. |
New Accounting Pronouncements | New accounting pronouncements. Revenue from contracts with customers. Effective January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers , ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients using the modified retrospective approach. The adoption of these ASUs did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows as of the adoption date or for the year ended December 31, 2018. The Company has included the disclosures required by ASU 2014-09 in Note 2. 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 adopted the standard as of January 1, 2019 using the alternative transition method provided under ASC 842, which allowed the Company to initially apply the new lease standard at the adoption date. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The Company did not elect the hindsight practical expedient permitted under the transition guidance within the new lease standard. The Company made an accounting policy election to not record leases with an initial term of 12 months or less on the balance sheet. The Company also elected 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 new standard resulted in the recognition of additional net lease assets and lease liabilities of approximately $115,681,000 , as of January 1, 2019. The adoption of ASC 842 did not 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 was not restated, but will continue to be reported under the standards in effect for those periods. See Note 12 for further information regarding the Company’s leases. Derivatives and hedging. Effective January 1, 2019, the Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations, equity or cash flows. Non-employee share-based payments. Effective January 1, 2019, the Company adopted ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-based Payment Accounting . The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations, equity or cash flows. Intangibles-Goodwill and Other. Effective January 1, 2019, the Company early adopted ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) . The new standard simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. Stranded Tax Effects. Effective January 1, 2019 the Company adopted ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the reduction of the U.S. federal statutory income tax rate to 21% from 35% due to the enactment of the Tax Act. As a result of the adoption of ASU 2018-02, the Company recorded a $668,000 reclassification to decrease Accumulated Other Comprehensive Income and increase Retained Earnings. Financial instruments. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and in November 2018 issued a subsequent amendment, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. ASU 2018-19 will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope of this amendment that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019, and is effective for the Company’s fiscal year beginning January 1, 2020. The adoption of the ASU is not expected to have a material impact on the Company’s 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. |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Activity in the limited warranty reserve | The activity in the warranty reserve during the periods presented was as follows (in thousands): For the Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ 121,824 $ 123,840 $ 119,274 Additions to reserve related to acquisitions 8,809 19,468 — Additions charged to expense 122,909 105,015 145,705 Warranty claims paid, net (117,358 ) (126,499 ) (141,139 ) Balance at end of year $ 136,184 $ 121,824 $ 123,840 |
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, 2019 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48,874 $ 48,874 $ — $ — Total assets at fair value $ 48,874 $ 48,874 $ — $ — Non-qualified deferred compensation liabilities $ (48,874 ) $ (48,874 ) $ — $ — Foreign exchange contracts, net (76 ) — (76 ) — Interest rate contracts, net (8,000 ) — (8,000 ) — Total liabilities at fair value $ (56,950 ) $ (48,874 ) $ (8,076 ) $ — 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 ) $ — |
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, 2019 December 31, 2018 Raw materials and purchased components $ 344,621 $ 233,258 Service parts, garments and accessories 356,981 342,593 Finished goods 476,169 442,003 Less: reserves (56,660 ) (48,343 ) Inventories $ 1,121,111 $ 969,511 |
Schedule of activity in the warranty reserve | For the Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ 59,915 $ 45,760 $ 26,157 New contracts sold 49,565 35,610 31,617 Less: reductions for revenue recognized (27,925 ) (21,455 ) (12,014 ) Balance at end of year (1) $ 81,555 $ 59,915 $ 45,760 (1) The unamortized ESC premiums (deferred revenue) recorded in other current liabilities totaled $34,254,000 and $25,777,000 at December 31, 2019 and 2018 , respectively, while the amount recorded in other long-term liabilities totaled $47,301,000 and $34,138,000 at December 31, 2019 and 2018 , respectively. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of preliminary fair values of net assets acquired and determination of final net assets | The following table summarizes the final 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 39,948 Other current assets 4,451 Property, plant and equipment 35,299 Customer relationships 341,080 Trademarks / trade names 210,680 Non-compete agreements 2,630 Goodwill 222,372 Accounts payable (30,064 ) Other liabilities assumed (37,266 ) Total fair value of net assets acquired 823,192 Less cash acquired (16,534 ) Total consideration for acquisition, less cash acquired $ 806,658 |
Unaudited pro forma information | 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, 2019 2018 2017 Net sales $ 6,782,518 $ 6,429,700 $ 5,980,741 Net income attributable to Polaris Inc. 328,800 360,690 182,749 Basic earnings per share $ 5.35 $ 5.77 $ 2.90 Diluted earnings per common share $ 5.28 $ 5.64 $ 2.85 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total Revenue by product type Wholegoods $ 3,463,135 $ 502,090 $ 373,914 — $ 621,353 $ 4,960,492 PG&A 745,928 82,006 87,341 $ 906,751 — 1,822,026 Total revenue $ 4,209,063 $ 584,096 $ 461,255 $ 906,751 $ 621,353 $ 6,782,518 Revenue by geography United States $ 3,470,141 $ 375,977 $ 232,626 $ 867,052 $ 605,910 $ 5,551,706 Canada 304,020 31,129 4,612 39,699 15,443 394,903 EMEA 302,511 116,158 221,274 — — 639,943 APLA 132,391 60,832 2,743 — — 195,966 Total revenue $ 4,209,063 $ 584,096 $ 461,255 $ 906,751 $ 621,353 $ 6,782,518 For the Year Ended December 31, 2018 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total 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 | For the Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ 59,915 $ 45,760 $ 26,157 New contracts sold 49,565 35,610 31,617 Less: reductions for revenue recognized (27,925 ) (21,455 ) (12,014 ) Balance at end of year (1) $ 81,555 $ 59,915 $ 45,760 (1) The unamortized ESC premiums (deferred revenue) recorded in other current liabilities totaled $34,254,000 and $25,777,000 at December 31, 2019 and 2018 , respectively, while the amount recorded in other long-term liabilities totaled $47,301,000 and $34,138,000 at December 31, 2019 and 2018 , respectively. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Option awards $ 21,847 $ 23,393 $ 18,423 Other share-based awards 48,002 28,513 28,844 Total share-based compensation before tax 69,849 51,906 47,267 Tax benefit 16,624 12,354 17,555 Total share-based compensation expense included in net income $ 53,225 $ 39,552 $ 29,712 |
Schedule of stock option activity | The following summarizes stock option activity and the weighted average exercise price for the Omnibus Plan for the year ended December 31, 2019 : Omnibus Plan Options Outstanding Weighted Balance as of December 31, 2018 4,575,926 $ 99.53 Granted 1,460,602 86.21 Exercised (166,008 ) 65.90 Forfeited (216,262 ) 105.95 Balance as of December 31, 2019 5,654,258 $ 96.83 Vested or expected to vest as of December 31, 2019 5,654,258 $ 96.83 Options exercisable as of December 31, 2019 2,802,466 $ 103.08 |
Schedule of weighted average fair value | The following assumptions were used to estimate the weighted average fair value of options of $19.54 , $26.50 and $18.45 granted during the years ended December 31, 2019 , 2018 and 2017 , respectively: For the Years Ended December 31, 2019 2018 2017 Weighted-average volatility 32 % 30 % 29 % Expected dividend yield 2.9 % 2.1 % 2.6 % Expected term (in years) 4.5 4.4 4.7 Weighted average risk free interest rate 2.5 % 2.6 % 1.9 % |
Schedule of restricted stock activity | The following table summarizes restricted stock activity for the year ended December 31, 2019 : Shares Weighted Balance as of December 31, 2018 1,641,197 $ 92.19 Granted 545,365 89.75 Vested (314,555 ) 90.39 Canceled/Forfeited (485,998 ) 76.36 Balance as of December 31, 2019 1,386,009 $ 96.92 Expected to vest as of December 31, 2019 1,397,750 $ 96.79 |
Financing Agreement (Tables)
Financing Agreement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The carrying value of debt, finance lease obligations, and notes payable and the average related interest rates were as follows (in thousands): Average interest rate at December 31, 2019 Maturity December 31, 2019 December 31, 2018 Revolving loan facility 1.10% July 2023 $ 75,183 $ 187,631 Term loan facility 3.05% July 2023 1,000,000 1,150,000 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 350,000 350,000 Finance lease obligations 5.18% Various through 2029 16,073 17,587 Notes payable and other 4.23% Various through 2030 81,388 87,608 Debt issuance costs (4,135 ) (5,256 ) Total debt, finance lease obligations, and notes payable $ 1,693,509 $ 1,962,570 Less: current maturities 166,695 66,543 Total long-term debt, finance lease obligations, and notes payable $ 1,526,814 $ 1,896,027 |
Summary of Activity Under Credit Arrangements, Excluding Acquired Borrowings | The following summarizes activity under Polaris’ credit arrangements (dollars in thousands): 2019 2018 2017 Total borrowings at December 31 $ 1,600,183 $ 1,862,631 $ 883,000 Average outstanding borrowings during year $ 1,911,982 $ 1,474,485 $ 1,133,641 Maximum outstanding borrowings during year $ 2,127,940 $ 1,999,731 $ 1,319,105 Interest rate at December 31 3.29 % 3.64 % 2.91 % |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and other intangible assets | Goodwill and other intangible assets, net of accumulated amortization, as of December 31, 2019 and 2018 are as follows (in thousands): 2019 2018 Goodwill $ 659,937 $ 647,077 Other intangible assets, net 830,298 870,517 Total goodwill and other intangible assets, net $ 1,490,235 $ 1,517,594 |
Schedule of changes in carrying amount of goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 are as follows (in thousands): 2019 2018 Balance as of beginning of year $ 647,077 $ 433,374 Goodwill acquired and related adjustments 14,157 218,191 Currency translation effect on foreign goodwill balances (1,297 ) (4,488 ) Balance as of end of year $ 659,937 $ 647,077 |
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, 2019 and 2018 are as follows (in thousands): 2019 2018 Gross Accumulated Gross Accumulated Other intangible assets, beginning $ 964,653 $ (94,136 ) $ 423,846 $ (76,634 ) Intangible assets acquired during the period 1,077 — 557,390 — Intangible assets disposed of during the period (7,114 ) 7,114 (13,659 ) 13,659 Amortization expense — (40,882 ) — (32,927 ) Currency translation effect on foreign balances (1,788 ) 1,374 (2,924 ) 1,766 Other intangible assets, ending $ 956,828 $ (126,530 ) $ 964,653 $ (94,136 ) |
Schedule of components of other intangible assets | The components of other intangible assets were as follows (in thousands): December 31, 2019 Estimated Life Gross Carrying Accumulated Net Non-compete agreements 4 $ 2,630 $ (986 ) $ 1,644 Dealer/customer related 5-20 499,513 (116,142 ) 383,371 Developed technology 5-7 12,655 (9,402 ) 3,253 Total amortizable 514,798 (126,530 ) 388,268 Non-amortizable—brand/trade names 442,030 — 442,030 Total other intangible assets, net $ 956,828 $ (126,530 ) $ 830,298 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Before Income Taxes | Polaris’ income before income taxes was generated from its United States and foreign operations as follows (in thousands): For the Years Ended December 31, 2019 2018 2017 United States $ 344,346 $ 344,728 $ 264,207 Foreign 63,454 84,521 54,584 Income before income taxes $ 407,800 $ 429,249 $ 318,791 |
Components of Provision for Income Taxes | Components of Polaris’ provision for income taxes are as follows (in thousands): For the Years Ended December 31, 2019 2018 2017 Current: Federal $ 46,441 $ 39,051 $ 41,134 State 18,199 3,759 7,264 Foreign 26,798 27,539 22,267 Deferred (7,522 ) 23,643 75,634 Total provision for income taxes $ 83,916 $ 93,992 $ 146,299 |
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, 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 2.3 1.9 1.4 Domestic manufacturing deduction (2.1 ) (1.4 ) (0.5 ) Research and development tax credit (4.0 ) (3.1 ) (5.6 ) Stock based compensation 0.2 (1.4 ) (4.4 ) Valuation allowance 0.5 0.2 1.2 Tax Reform impact — 0.4 17.4 Non-deductible expenses — — 2.0 Foreign tax rate differential 1.7 1.3 (0.3 ) Other permanent differences 1.0 3.0 (0.3 ) Effective income tax rate for continuing operations 20.6 % 21.9 % 45.9 % |
Net Deferred Income Taxes | The net deferred income taxes consist of the following (in thousands): As of December 31, 2019 2018 Deferred income taxes: Inventories $ 18,550 $ 11,171 Accrued expenses 126,593 105,218 Cost in excess of net assets of businesses acquired (35,203 ) (22,916 ) Property and equipment (88,145 ) (72,252 ) Operating lease assets (26,480 ) — Operating lease liabilities 27,115 — Employee compensation and benefits 61,441 56,286 Net operating loss and other loss carryforwards 20,079 13,847 Valuation allowance (14,620 ) (10,370 ) Total net deferred income tax asset $ 89,330 $ 80,984 |
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, 2019 2018 Balance at January 1, $ 25,511 $ 19,096 Gross increases for tax positions of prior years 1,237 6,586 Gross increases for tax positions of current year 3,969 2,522 Decreases due to settlements and other prior year tax positions (5,629 ) (2,550 ) Decreases for lapse of statute of limitations (752 ) — Currency translation effect on foreign balances 42 (143 ) Balance at December 31, 24,378 25,511 Reserves related to potential interest and penalties at December 31, 3,714 3,090 Unrecognized tax benefits at December 31, $ 28,092 $ 28,601 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Shareholders Equity [Abstract] | |
Schedule of share repurchases | The Company has made the following share repurchases (in thousands): For the Years Ended December 31, 2019 2018 2017 Total number of shares repurchased and retired 95 3,184 1,028 Total investment $ 8,378 $ 348,663 $ 90,461 |
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, 2019 , 2018 , and 2017 were as follows: For the Years Ended December 31, 2019 2018 2017 Quarterly dividend declared and paid per common share $ 0.61 $ 0.60 $ 0.58 Total dividends declared and paid per common share $ 2.44 $ 2.40 $ 2.32 |
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, 2019 2018 2017 Weighted average number of common shares outstanding 61,109 62,236 62,668 Director Plan and deferred stock units 207 177 157 ESOP 121 100 91 Common shares outstanding—basic 61,437 62,513 62,916 Dilutive effect of restricted stock awards 581 679 384 Dilutive effect of stock option awards 274 757 880 Common and potential common shares outstanding—diluted 62,292 63,949 64,180 |
Schedule of changes in accumulated other comprehensive income (loss) balances | Changes in the accumulated other comprehensive loss balance is as follows (in thousands): Foreign Currency Translation Cash Flow Hedging Derivatives Retirement Plan and Other Activity Accumulated Other Comprehensive Loss Balance as of December 31, 2018 $ (60,504 ) $ 423 (2,892 ) $ (62,973 ) Reclassification to the income statement — (3,219 ) 250 (2,969 ) Reclassification to retained earnings — — (668 ) (668 ) Change in fair value (2,792 ) (3,318 ) — (6,110 ) Balance as of December 31, 2019 $ (63,296 ) $ (6,114 ) $ (3,310 ) $ (72,720 ) |
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, 2019 and 2018 (in thousands): Derivatives in Cash Flow Hedging Relationships and Other Activity Location of Gain (Loss) Reclassified from Accumulated OCI into Income For the Years Ended December 31, 2019 2018 Foreign currency contracts Other expense, net $ 3,198 $ 9,378 Foreign currency contracts Cost of sales 920 686 Interest rate contracts Interest expense (899 ) (158 ) Retirement plan activity Operating expenses (250 ) (261 ) Total $ 2,969 $ 9,645 |
Financial Services Arrangemen_2
Financial Services Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Revenues $ 79,276 $ 72,093 $ 61,645 Interest and operating expenses 14,337 11,832 7,590 Net income $ 64,939 $ 60,261 $ 54,055 As of December 31, 2019 2018 Finance receivables, net $ 687,646 $ 573,669 Other assets 105 102 Total Assets $ 687,751 $ 573,771 Notes payable $ 463,055 $ 386,438 Other liabilities 3,414 3,215 Partners’ capital 221,282 184,118 Total Liabilities and Partners’ Capital $ 687,751 $ 573,771 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of company lease information | Information on the Company’s leases is summarized as follows (in thousands): Classification December 31, 2019 Assets Operating lease assets Operating lease assets $ 110,153 Finance lease assets Property and equipment, net (1) 12,721 Total leased assets $ 122,874 Liabilities Current Operating lease liabilities Current operating lease liabilities $ 34,904 Finance lease liabilities Current portion of debt, finance lease obligations and notes payable 1,259 Long-term Operating lease liabilities Long-term operating lease liabilities 77,926 Finance lease liabilities Finance lease obligations 14,814 Total lease liabilities $ 128,903 (1) Finance lease assets are recorded net of accumulated amortization of $7,757,000 as of December 31, 2019 . |
Schedule of lease cost | Lease Cost Classification For the Year Ended December 31, 2019 Operating lease cost (1) Operating expenses and cost of sales $ 42,477 Finance lease cost Amortization of leased assets Operating expenses and cost of sales 1,486 Interest on lease liabilities Interest expense 875 Sublease income Other (income) expense, net (2,382 ) Total lease cost $ 42,456 (1) Includes short-term leases and variable lease costs, which are immaterial. Lease Term and Discount Rate December 31, 2019 Weighted-average remaining lease term (years) Operating leases 4.47 Finance leases 9.48 Weighted-average discount rate Operating leases 3.29 % Finance leases 5.18 % Other Information For the Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 42,687 Operating cash flows from finance leases 858 Financing cash flows from finance leases 1,254 Leased assets obtained in exchange for new operating lease liabilities 28,773 |
Schedule of finance lease liability | Maturity of Lease Liabilities Operating Leases (1) Finance Leases Total 2020 $ 38,095 $ 2,119 $ 40,214 2021 28,004 2,107 30,111 2022 19,289 2,070 21,359 2023 13,960 2,070 16,030 2024 8,913 2,085 10,998 Thereafter 12,967 9,940 22,907 Total lease payments $ 121,228 $ 20,391 $ 141,619 Less: interest 8,398 4,318 Present value of lease payments $ 112,830 $ 16,073 (1) Operating lease payments include $3,429,000 related to options to extend lease terms that are reasonably certain of being exercised. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of open foreign currency contracts | At December 31, 2019 and 2018 , Polaris had the following open foreign currency contracts (in thousands): December 31, 2019 December 31, 2018 Foreign Currency Notional Amounts (in U.S. dollars) Net Unrealized Gain (Loss) Notional Amounts (in U.S. dollars) Net Unrealized Gain (Loss) Australian Dollar $ 15,971 $ (86 ) — — Canadian Dollar 101,397 (1,069 ) $ 55,133 $ 2,564 Mexican Peso 16,986 1,079 19,222 564 Total $ 134,354 $ (76 ) $ 74,355 $ 3,128 |
Schedule of open interest rate swap contracts | , Polaris had the following open interest rate swap contracts (in thousands): December 31, 2019 December 31, 2018 Effective Date Termination Date Notional Amounts Net Unrealized Gain (Loss) Notional Amounts Net Unrealized Gain (Loss) May 2, 2018 May 4, 2021 $ 25,000 $ (67 ) $ 25,000 $ 397 September 28, 2018 September 30, 2019 — — 250,000 (163 ) September 30, 2019 September 30, 2023 150,000 (7,696 ) 150,000 (2,899 ) May 3, 2019 May 3, 2020 100,000 (237 ) — — Total $ 275,000 $ (8,000 ) $ 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, 2019 and 2018 (in thousands): Carrying Values of Derivative Instruments as of December 31, 2019 Fair Value— Assets Fair Value— (Liabilities) Derivative Net Carrying Value Derivatives designated as hedging instruments Foreign exchange contracts $ 1,079 $ (1,155 ) $ (76 ) Interest rate contracts — (8,000 ) (8,000 ) Total derivatives designated as hedging instruments $ 1,079 $ (9,155 ) $ (8,076 ) 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 $ 3,128 — $ 3,128 Interest rate contracts — $ (2,665 ) (2,665 ) Total derivatives designated as hedging instruments $ 3,128 $ (2,665 ) $ 463 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Sales ORV/Snowmobiles $ 4,209,063 $ 3,919,417 $ 3,570,753 Motorcycles 584,096 545,646 576,068 Global Adjacent Markets 461,255 444,644 396,764 Aftermarket 906,751 889,177 884,892 Boats 621,353 279,656 — Total sales $ 6,782,518 $ 6,078,540 $ 5,428,477 Gross profit ORV/Snowmobiles 1,204,288 1,113,908 1,054,557 Motorcycles 44,065 63,045 16,697 Global Adjacent Markets 129,939 116,583 94,920 Aftermarket 222,712 234,365 225,498 Boats 124,613 46,252 — Corporate (76,835 ) (72,953 ) (67,021 ) Total gross profit $ 1,648,782 $ 1,501,200 $ 1,324,651 |
Victory Motorcycles Wind Down (
Victory Motorcycles Wind Down (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Group Activity | 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 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 (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | Sales Gross profit Net income attributable to Polaris Inc. Diluted net income per share attributable to Polaris Inc. common shareholders (In thousands, except per share data) 2019 First Quarter $ 1,495,690 $ 352,448 $ 48,378 $ 0.78 Second Quarter 1,779,315 436,448 88,263 1.42 Third Quarter 1,771,647 436,542 88,388 1.42 Fourth Quarter 1,735,866 423,344 98,931 1.58 Year $ 6,782,518 $ 1,648,782 $ 323,960 $ 5.20 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 |
Organization and Significant _4
Organization and Significant Accounting Policies - Fair Value Measurements (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 48,545 | |
Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 48,874 | |
Foreign Currency Contract, Asset, Fair Value Disclosure | 51,673 | |
Non-qualified deferred compensation liabilities | 48,545 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 76 | |
Total liabilities at fair value | (56,950) | (51,210) |
Level 1 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 48,874 | |
Total liabilities at fair value | (48,874) | (48,545) |
Level 2 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 3,128 |
Total liabilities at fair value | (8,076) | (2,665) |
Level 3 | Fair value, measurements, recurring | ||
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, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation assets | 48,874 | 48,545 |
Non-qualified deferred compensation liabilities | 48,874 | |
Non-qualified deferred compensation assets | Level 1 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation assets | 48,874 | 48,545 |
Non-qualified deferred compensation liabilities | 48,874 | 48,545 |
Non-qualified deferred compensation assets | Level 2 | Fair value, measurements, recurring | ||
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, measurements, recurring | ||
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, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts, net | (8,000) | (2,665) |
Interest rate contracts, net | Level 1 | Fair value, measurements, recurring | ||
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, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts, net | (8,000) | |
Interest rate contracts, net | Level 3 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts, net | 0 | |
Foreign exchange contracts, net | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 3,128 | |
Foreign exchange contracts, net | Level 1 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts, net | 0 | |
Foreign exchange contracts, net | Level 2 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | (76) | $ 3,128 |
Foreign exchange contracts, net | Level 3 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate contracts, net | $ 0 |
- Major Components of Inventori
- Major Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Raw materials and purchased components | $ 344,621 | $ 233,258 |
Service parts, garments and accessories | 356,981 | 342,593 |
Finished goods | 476,169 | 442,003 |
Less: reserves | (56,660) | (48,343) |
Inventories | $ 1,121,111 | $ 969,511 |
Organization and Significant _5
Organization and Significant Accounting Policies - Activity in Polaris Accrued Warranty Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Activity in Product Warranty Reserve [Roll Forward] | |||
Balance at beginning of year | $ 121,824 | $ 123,840 | $ 119,274 |
Additions to reserve related to acquisitions | 8,809 | 19,468 | 0 |
Additions charged to expense | 122,909 | 105,015 | 145,705 |
Warranty claims paid, net | 117,358 | 126,499 | (141,139) |
Balance at end of year | $ 136,184 | $ 121,824 | $ 123,840 |
Organization and Significant _6
Organization and Significant Accounting Policies - Additional Information (Detail) - USD ($) | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||||
Long-term debt, fair value | $ 1,769,292,000 | $ 2,013,684,000 | ||
Long-term debt, carrying value | 1,693,509,000 | 1,962,570,000 | ||
Advertising expenses | $ 77,404,000 | $ 65,001,000 | $ 75,307,000 | |
ORVs | ||||
Property, Plant and Equipment [Line Items] | ||||
Period of warranties provided by Polaris | 6 months | |||
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 | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated effect of new accounting pronouncement | $ 115,681,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Informaton (Detail) - USD ($) | Jul. 02, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||||||||
Total consideration for acquisition, less cash acquired | $ 1,800,000 | $ 759,801,000 | $ (1,645,000) | |||||||||
Pro forma net income | 323,884,000 | 335,257,000 | 172,492,000 | |||||||||
Sales | $ 1,735,866,000 | $ 1,771,647,000 | $ 1,779,315,000 | $ 1,495,690,000 | $ 1,627,120,000 | $ 1,651,415,000 | $ 1,502,532,000 | $ 1,297,473,000 | 6,782,518,000 | 6,078,540,000 | 5,428,477,000 | |
Gross profit | $ 423,344,000 | $ 436,542,000 | $ 436,448,000 | $ 352,448,000 | $ 391,273,000 | $ 401,270,000 | $ 385,176,000 | $ 323,481,000 | 1,648,782,000 | 1,501,200,000 | $ 1,324,651,000 | |
Boat Holdings, LLC | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of outstanding voting interest acquired | 100.00% | |||||||||||
Weighted average useful life | 19 years | |||||||||||
Acquisition-related costs | 6,352,000 | 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 | 621,353,000 | 279,656,000 | ||||||||||
Gross profit | $ 124,613,000 | $ 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 | |||||||||||
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% |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Revenue Arrangement [Line Items] | ||||
Deferred Revenue | $ 81,555,000 | $ 59,915,000 | $ 45,760,000 | $ 26,157,000 |
Deferred Revenue, Current | 34,254,000 | 25,777,000 | ||
Deferred Revenue, Noncurrent | $ 47,301,000 | $ 34,138,000 |
Acquisitions - Summary of Asset
Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 02, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 659,937 | $ 647,077 | $ 433,374 | |
Total consideration for acquisition, less cash acquired | $ 1,800 | $ 759,801 | $ (1,645) | |
Boat Holdings, LLC | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 16,534 | |||
Trade receivables | 17,528 | |||
Inventory | 39,948 | |||
Other current assets | 4,451 | |||
Property, plant and equipment | 35,299 | |||
Goodwill | 222,372 | |||
Accounts payable | (30,064) | |||
Other liabilities assumed | (37,266) | |||
Total fair value of net assets acquired | 823,192 | |||
Less cash acquired | (16,534) | |||
Total consideration for acquisition, less cash acquired | 806,658 | |||
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 (Contract R
Revenue Recognition (Contract Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 1,735,866 | $ 1,771,647 | $ 1,779,315 | $ 1,495,690 | $ 1,627,120 | $ 1,651,415 | $ 1,502,532 | $ 1,297,473 | $ 6,782,518 | $ 6,078,540 | $ 5,428,477 |
ORV/Snowmobiles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 4,209,063 | 3,919,417 | |||||||||
Motorcycles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 584,096 | 545,646 | |||||||||
Global Adjacent Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 461,255 | 444,644 | |||||||||
Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 906,751 | 889,177 | |||||||||
Boats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 621,353 | 279,656 | |||||||||
Wholegoods | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 4,960,492 | 4,348,491 | |||||||||
Wholegoods | ORV/Snowmobiles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,463,135 | 3,237,463 | |||||||||
Wholegoods | Motorcycles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 502,090 | 465,269 | |||||||||
Wholegoods | Global Adjacent Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 373,914 | 366,103 | |||||||||
Wholegoods | Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | |||||||||
Wholegoods | Boats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 621,353 | 279,656 | |||||||||
PG&A | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,822,026 | 1,730,049 | |||||||||
PG&A | ORV/Snowmobiles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 745,928 | 681,954 | |||||||||
PG&A | Motorcycles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 82,006 | 80,377 | |||||||||
PG&A | Global Adjacent Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 87,341 | 78,541 | |||||||||
PG&A | Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 906,751 | 889,177 | |||||||||
PG&A | Boats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | |||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 5,551,706 | 4,883,807 | |||||||||
United States | ORV/Snowmobiles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,470,141 | 3,178,104 | |||||||||
United States | Motorcycles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 375,977 | 371,483 | |||||||||
United States | Global Adjacent Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 232,626 | 212,653 | |||||||||
United States | Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 867,052 | 847,293 | |||||||||
United States | Boats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 605,910 | 274,274 | |||||||||
Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 394,903 | 390,224 | |||||||||
Canada | ORV/Snowmobiles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 304,020 | 293,269 | |||||||||
Canada | Motorcycles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 31,129 | 31,150 | |||||||||
Canada | Global Adjacent Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 4,612 | 18,539 | |||||||||
Canada | Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 39,699 | 41,884 | |||||||||
Canada | Boats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 15,443 | 5,382 | |||||||||
EMEA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 639,943 | 602,899 | |||||||||
EMEA | ORV/Snowmobiles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 302,511 | 306,890 | |||||||||
EMEA | Motorcycles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 116,158 | 87,977 | |||||||||
EMEA | Global Adjacent Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 221,274 | 208,032 | |||||||||
EMEA | Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | |||||||||
EMEA | Boats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | |||||||||
APLA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 195,966 | 201,610 | |||||||||
APLA | ORV/Snowmobiles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 132,391 | 141,154 | |||||||||
APLA | Motorcycles | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 60,832 | 55,036 | |||||||||
APLA | Global Adjacent Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,743 | 5,420 | |||||||||
APLA | Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | |||||||||
APLA | Boats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 0 | $ 0 |
Acquisitions - Unaudited Profor
Acquisitions - Unaudited Proforma Information (Details) - Boat Holdings, LLC - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Net sales | $ 6,782,518 | $ 6,429,700 | $ 5,980,741 |
Net income | $ 328,800 | $ 360,690 | $ 182,749 |
Basic earnings per share (in dollars per share) | $ 5.35 | $ 5.77 | $ 2.90 |
Diluted earnings per common share (in dollars per share) | $ 5.28 | $ 5.64 | $ 2.85 |
Revenue Recognition (Deferred R
Revenue Recognition (Deferred Revenue) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue Recognition [Abstract] | |||
Balance at beginning of period | $ 59,915,000 | $ 45,760,000 | $ 26,157,000 |
New contracts sold | 49,565,000 | 35,610,000 | 31,617,000 |
Balance at end of period | 81,555,000 | 59,915,000 | 45,760,000 |
Deferred Revenue, Revenue Recognized | (27,925,000) | (21,455,000) | $ (12,014,000) |
Deferred Revenue, Current | 34,254,000 | 25,777,000 | |
Deferred Revenue, Noncurrent | $ 47,301,000 | $ 34,138,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested share-based equity awards | $ 91,538 | ||
Weighted average period of recognition of unvested share-based equity awards (in years) | 1 year 4 months 13 days | ||
Unrecognized compensation cost related to unvested share-based equity awards, Stock Options | $ 22,841 | ||
Unrecognized compensation cost related to unvested share-based equity awards, Restricted Stock | $ 68,697 | ||
Weighted average remaining contractual life of option outstanding | 6 years 7 months 9 days | ||
Weighted average remaining contractual life of option exercisable | 5 years 25 days | ||
Estimated weighted average fair value of options granted | $ 19.54 | $ 26.50 | $ 18.45 |
Total intrinsic value of options exercised | $ 5,136 | ||
Total intrinsic value of options outstanding | 73,730 | ||
Total intrinsic value of options exercisable | $ 35,503 | ||
Weighted average fair values at the grant dates of grants awarded | $ 96.38 | $ 106.43 | $ 82.14 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | ||
Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares of common stock available for issuance | 24,325,000 | ||
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 | 15,000 | 12,000 | 11,000 |
Additional shares issued to retired directors | 14,000 | 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 | 196,000 | ||
Stock Option Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock shares granted | 1,460,602 | ||
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 | $ 11,035 | $ 7,253 | |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 125,000,000 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 545,365 | ||
Total intrinsic value of restricted stock expected to vest | $ 142,151 | ||
Weighted average fair values at the grant dates of grants awarded | $ 89.75 | $ 114.42 | $ 85.97 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Option awards | $ 21,847 | $ 23,393 | $ 18,423 |
Other share-based awards | 48,002 | 28,513 | 28,844 |
Total share-based compensation before tax | 69,849 | 51,906 | 47,267 |
Tax benefit | 16,624 | 12,354 | 17,555 |
Total share-based compensation expense included in net income | $ 53,225 | $ 39,552 | $ 29,712 |
- Stock Option Activity and Wei
- Stock Option Activity and Weighted Average Exercise Price (Detail) - Stock Option Plans | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Outstanding Shares | |
Beginning Balance | shares | 4,575,926 |
Granted | shares | 1,460,602 |
Exercised | shares | (166,008) |
Forfeited | shares | (216,262) |
Ending Balance | shares | 5,654,258 |
Vested or expected to vest at end of period | shares | 5,654,258 |
Options exercisable at end of period | shares | 2,802,466 |
Weighted-Average Exercise Price | |
Beginning Balance | $ / shares | $ 99.53 |
Granted | $ / shares | 86.21 |
Exercised | $ / shares | 65.90 |
Forfeited | $ / shares | 105.95 |
Ending Balance | $ / shares | 96.83 |
Vested or expected to vest at end of period | $ / shares | 96.83 |
Options exercisable at end of period | $ / shares | $ 103.08 |
- Assumptions Used to Estimate
- Assumptions Used to Estimate Weighted Average Fair Value of Options (Detail) - Stock Options | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average volatility | 32.00% | 30.00% | 29.00% |
Expected dividend yield | 2.90% | 2.10% | 2.60% |
Expected term (in years) | 4 years 6 months | 4 years 4 months 24 days | 4 years 8 months 12 days |
Weighted average risk free interest rate | 2.50% | 2.60% | 1.90% |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average volatility | 34.00% | 33.00% | 31.00% |
Expected dividend yield | 2.70% | 2.10% | 2.50% |
Expected term (in years) | 3 years | 3 years | 3 years |
Weighted average risk free interest rate | 2.40% | 2.30% | 1.50% |
- Summary of Restricted Stock A
- Summary of Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Grant Price | |||
Granted | $ 96.38 | $ 106.43 | $ 82.14 |
Restricted Stock | |||
Shares Outstanding | |||
Beginning Balance | 1,641,197 | ||
Granted | 545,365 | ||
Vested | (314,555) | ||
Canceled/Forfeited | (485,998) | ||
Ending Balance | 1,386,009 | 1,641,197 | |
Expected to vest as of end of period | 1,397,750 | ||
Weighted Average Grant Price | |||
Beginning Balance | $ 92.19 | ||
Granted | 89.75 | $ 114.42 | $ 85.97 |
Vested | 90.39 | ||
Canceled/Forfeited | 76.36 | ||
Ending Balance | 96.92 | $ 92.19 | |
Expected to vest as of end of period | $ 96.79 |
Employee Savings Plans - Additi
Employee Savings Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expenses related ESOP | $ 10,335 | $ 10,037 | $ 8,241 |
Shares vested under ESOP | 3,282,000 | ||
Matching percentage of employer to employee contributions | 100.00% | ||
Matching contributions to 401(k) retirement savings plan | $ 26,185 | 24,458 | $ 22,101 |
Temporary equity, shares issued (in shares) | 133,706 | ||
Deferred compensation | $ 13,598 | 6,837 | |
Temporary equity, other changes | 11,834 | ||
Temporary equity, accretion to redemption value, adjustment | $ 1,764 | ||
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 | $ 48,874 | ||
Level 1 | Fair value, measurements, recurring | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets at fair value | 48,874 | ||
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 | $ 48,874 | $ 48,545 | |
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 ($) | 1 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 02, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,600,183,000 | $ 1,862,631,000 | $ 883,000,000 | ||||
Interest rate at December 31 | 3.29% | 3.64% | 2.91% | ||||
Debt issuance costs | $ (4,135,000) | $ (5,256,000) | |||||
Total debt, finance lease obligations, and notes payable | 1,693,509,000 | 1,962,570,000 | |||||
Less: current maturities | 166,695,000 | 66,543,000 | |||||
Total long-term debt, finance lease obligations, and notes payable | $ 1,526,814,000 | 1,896,027,000 | |||||
Master Notes | Senior Unsecured Notes, 3.81 Percent, Due May 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Maturity date | May 31, 2018 | ||||||
Issuance of senior notes | $ 25,000,000 | ||||||
Master Notes | Senior Unsecured Notes, 4.60 Percent, Due May 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Maturity date | May 31, 2021 | ||||||
Issuance of senior notes | $ 75,000,000 | ||||||
Master Notes | Senior Unsecured Notes 3.13 Percent Due December 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Maturity date | Dec. 31, 2020 | ||||||
Issuance of senior notes | $ 100,000,000 | ||||||
Master Notes | Senior Unsecured Notes 4.23 Percent, Due July 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Maturity date | Jul. 31, 2028 | ||||||
Revolving loan facility | |||||||
Debt Instrument [Line Items] | |||||||
Average interest rate | 1.10% | ||||||
Long-term debt | $ 75,183,000 | 187,631,000 | |||||
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 | 350,000,000 | $ 350,000,000 | ||||
Interest rate, stated percentage | 4.23% | 4.23% | |||||
Finance lease obligations | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate at December 31 | 5.18% | ||||||
Finance lease obligations | $ 16,073,000 | 17,587,000 | |||||
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 | $ 81,388,000 | 87,608,000 | |||||
Long-term Debt | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate at period end | 3.05% | ||||||
Long-term line of credit | $ 1,000,000,000 | $ 1,150,000,000 |
Financing Agreement - Summary o
Financing Agreement - Summary of Activity Under Credit Arrangements, Excluding Acquired Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Total borrowings at December 31 | $ 1,600,183 | $ 1,862,631 | $ 883,000 |
Average outstanding borrowings during year | 1,911,982 | 1,474,485 | 1,133,641 |
Maximum outstanding borrowings during year | $ 2,127,940 | $ 1,999,731 | $ 1,319,105 |
Interest rate at December 31 | 3.29% | 3.64% | 2.91% |
Financing Agreement - Additiona
Financing Agreement - Additional Information (Details) - USD ($) | 1 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 31, 2018 | Jul. 02, 2018 | Dec. 31, 2017 | Sep. 30, 2015 | |
Line of Credit Facility [Line Items] | |||||||||
Letter of credit outstanding | $ 21,637,000 | ||||||||
Debt outstanding from dealers | 1,884,131,000 | ||||||||
Long-term debt | $ 1,600,183,000 | $ 1,862,631,000 | $ 883,000,000 | ||||||
Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Aggregate repurchase obligation | 15.00% | ||||||||
Master Notes | Senior Unsecured Notes, 3.81 Percent, Due May 2018 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Issuance of senior notes | $ 25,000,000 | ||||||||
Maturity date | 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 | ||||||||
Master Notes | Senior Unsecured Notes 4.23 Percent, Due July 2028 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maturity date | Jul. 31, 2028 | ||||||||
Senior Notes | Senior Unsecured Notes, 4.60 Percent, Due May 2021 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Long-term debt | $ 75,000,000 | 75,000,000 | |||||||
Senior Notes | Senior Unsecured Notes 3.13 Percent Due December 2020 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Long-term debt | 100,000,000 | 100,000,000 | |||||||
Senior Notes | Senior Unsecured Notes 4.23 Percent, Due July 2028 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Long-term debt | 350,000,000 | 350,000,000 | $ 350,000,000 | ||||||
Notes payable and other | Mortgages | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Long-term debt | 9,666,000 | $ 14,500,000 | |||||||
Long-term Debt | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Revolving loan facility, maximum capacity | $ 1,180,000,000 | ||||||||
Long-term line of credit | 1,000,000,000 | $ 1,150,000,000 | |||||||
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 | ||||||||
Boat Holdings, LLC | Notes Payable, Other Payables [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Long-term debt | $ 71,722,000 | $ 76,733,000 | |||||||
TCF Financial Corporation | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Aggregate repurchase obligation | 100.00% | ||||||||
TCF [Member] | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Aggregate repurchase obligation | 100.00% | ||||||||
Polaris Acceptance | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Aggregate repurchase obligation, amount | $ 180,557,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 659,937 | $ 647,077 | $ 433,374 |
Other intangible assets, net | 830,298 | 870,517 | |
Total goodwill and other intangible assets, net | $ 1,490,235 | $ 1,517,594 |
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, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Balance as of beginning of year | $ 647,077 | $ 433,374 |
Goodwill acquired and related adjustments | 14,157 | 218,191 |
Currency translation effect on foreign goodwill balances | (1,297) | (4,488) |
Balance as of end of year | $ 659,937 | $ 647,077 |
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, 2019 | Dec. 31, 2018 | |
Gross Amount | ||
Other intangible assets, beginning | $ 964,653 | $ 423,846 |
Intangible assets acquired, purchase accounting adjustment | 1,077 | |
Intangible assets acquired during the period | 557,390 | |
Currency translation effect on foreign balances | (1,788) | (2,924) |
Other intangible assets, ending | 956,828 | 964,653 |
Finite-Lived Intangible Assets, Disposal of Intangible Assets | (7,114) | (13,659) |
Amortization of Intangible Assets, Adjustment for Disposal | 7,114 | 13,659 |
Accumulated Amortization | ||
Other intangible assets, beginning | (94,136) | (76,634) |
Amortization expense | (40,882) | (32,927) |
Currency translation effect on foreign balances | 1,374 | 1,766 |
Other intangible assets, ending | $ (126,530) | $ (94,136) |
- Components of Other Intangibl
- Components of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 514,798 | $ 522,354 | |
Accumulated Amortization | (126,530) | (94,136) | $ (76,634) |
Net | 388,268 | 428,218 | |
Total other intangible assets, Gross Carrying Amount | 956,828 | 964,653 | $ 423,846 |
Total other intangible assets, net | $ 830,298 | $ 870,517 | |
Non-compete agreements | |||
Intangible Assets by Major Class [Line Items] | |||
Estimated Life (Years) | 4 years | 4 years | |
Gross Carrying Amount | $ 2,630 | $ 2,630 | |
Accumulated Amortization | (986) | (329) | |
Net | 1,644 | 2,301 | |
Dealer/customer related | |||
Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | 499,513 | 506,401 | |
Accumulated Amortization | (116,142) | (85,614) | |
Net | $ 383,371 | $ 420,787 | |
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 | 20 years | |
Developed technology | |||
Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 12,655 | $ 13,323 | |
Accumulated Amortization | (9,402) | (8,193) | |
Net | $ 3,253 | $ 5,130 | |
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 | $ 442,030 | $ 442,299 | |
Non-amortizable, Net | $ 442,030 | $ 442,299 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense of intangible assets | $ 40,882 | $ 32,927 |
Estimated Future Amortization Expense by Fiscal Year [Abstract] | ||
2018 | 36,056 | |
2019 | 33,288 | |
2020 | 28,323 | |
2021 | 25,791 | |
2022 | 25,023 | |
After 2022 | $ 239,787 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 12,000,000 | ||
Document fiscal year focus | 2019 | ||
Effective income tax rate for continuing operations | 20.60% | 21.90% | 45.90% |
Undistributed earnings relating to certain non-U.S. subsidiaries | $ 188,033,000 | $ 186,679,000 | |
Net operating loss carryforwards | $ 48,061,000 |
Income Taxes - Income From Cont
Income Taxes - Income From Continuing Operations, Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 344,346 | $ 344,728 | $ 264,207 |
Foreign | 63,454 | 84,521 | 54,584 |
Income before income taxes | $ 407,800 | $ 429,249 | $ 318,791 |
- Components of Provision for I
- Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 46,441 | $ 39,051 | $ 41,134 |
State | 18,199 | 3,759 | 7,264 |
Foreign | 26,798 | 27,539 | 22,267 |
Deferred | (7,522) | 23,643 | 75,634 |
Total provision for income taxes | $ 83,916 | $ 93,992 | $ 146,299 |
- Reconciliation of Federal Sta
- Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal benefit | 2.30% | 1.90% | 1.40% |
Domestic manufacturing deduction | (2.10%) | (1.40%) | (0.50%) |
Research and development tax credit | (4.00%) | (3.10%) | (5.60%) |
Stock based compensation | 0.20% | (1.40%) | (4.40%) |
Valuation allowance | 0.50% | 0.20% | 1.20% |
Tax Reform impact | 0.00% | 0.40% | 17.40% |
Non-deductible expenses | 0.00% | 0.00% | 2.00% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 1.70% | 1.30% | (0.30%) |
Other permanent differences | 1.00% | 3.00% | (0.30%) |
Effective income tax rate for continuing operations | 20.60% | 21.90% | 45.90% |
- Net Deferred Income Taxes (De
- Net Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income taxes: | ||
Inventories | $ 18,550 | $ 11,171 |
Accrued expenses | 126,593 | 105,218 |
Cost in excess of net assets of businesses acquired | (35,203) | (22,916) |
Property and equipment | (88,145) | (72,252) |
Deferred Tax Liabilities, Leasing Arrangements | (26,480) | |
Deferred Tax Assets, Leasing Arrangements | 27,115 | |
Employee compensation and benefits | 61,441 | 56,286 |
Net operating loss and other loss carryforwards | 20,079 | 13,847 |
Valuation allowance | (14,620) | (10,370) |
Total net deferred income tax asset | $ 89,330 | $ 80,984 |
- Reconciliation of Beginning a
- Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1, | $ 25,511 | $ 19,096 |
Gross increases for tax positions of prior years | 1,237 | 6,586 |
Gross increases for tax positions of current year | 3,969 | 2,522 |
Decreases due to settlements and other prior year tax positions | (5,629) | (2,550) |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 752 | 0 |
Currency translation effect on foreign balances | 42 | |
Currency translation effect on foreign balances | (143) | |
Balance at December 31, | 24,378 | 25,511 |
Reserves related to potential interest and penalties at December 31, | 3,714 | 3,090 |
Unrecognized tax benefits at December 31, | $ 28,092 | $ 28,601 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchases (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Shareholders Equity [Abstract] | |||
Total number of shares repurchased and retired | 95 | 3,184 | 1,028 |
Total investment | $ 8,378 | $ 348,663 | $ 90,461 |
Shareholders' Equity - Cash Div
Shareholders' Equity - Cash Dividends Declared Per Common Share (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Shareholders Equity [Abstract] | ||||||
Quarterly dividend declared and paid per common share | $ 0.61 | $ 0.60 | $ 0.58 | $ 2.44 | $ 2.40 | $ 2.32 |
Shareholders' Equity - Reconcil
Shareholders' Equity - Reconciliation of Weighted Average Number of Shares (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Number of Shares Outstanding [Line Items] | |||
Weighted average number of common shares outstanding | 61,109 | 62,236 | 62,668 |
Director Plan and deferred stock units | 207 | 177 | 157 |
ESOP | 121 | 100 | 91 |
Common shares outstanding—basic | 61,437 | 62,513 | 62,916 |
Common and potential common shares outstanding—diluted | 62,292 | 63,949 | 64,180 |
Restricted Stock | |||
Weighted Average Number of Shares Outstanding [Line Items] | |||
Dilutive effect of stock awards | 581 | 679 | 384 |
Stock Options | |||
Weighted Average Number of Shares Outstanding [Line Items] | |||
Dilutive effect of stock awards | 274 | 757 | 880 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Accumulated Other Comprehensive Income (Loss) Balances (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2018 | $ (62,973) |
Reclassification to the income statement | (2,969) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for New Accounting Standards, Net of Tax | (668) |
Change in fair value | (6,110) |
Balance as of December 31, 2019 | (72,720) |
Foreign Currency Translation | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2018 | (60,504) |
Reclassification to the income statement | 0 |
Change in fair value | (2,792) |
Balance as of December 31, 2019 | (63,296) |
Cash Flow Hedging Derivatives | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2018 | 423 |
Reclassification to the income statement | (3,219) |
Change in fair value | (3,318) |
Balance as of December 31, 2019 | (6,114) |
Retirement Plan and Other Activity | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2018 | (2,892) |
Reclassification to the income statement | 250 |
Change in fair value | 0 |
Balance as of December 31, 2019 | (3,310) |
Accumulated other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for New Accounting Standards, Net of Tax | $ (668) |
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, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | $ 2,969 | $ 9,645 |
Foreign exchange contracts, net | Other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | 3,198 | 9,378 |
Foreign exchange contracts, net | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | 920 | 686 |
Interest rate contracts | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | (899) | (158) |
Retirement plan activity | Operating expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | $ (250) | $ (261) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - $ / shares | Jan. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Stockholders Equity Note [Line Items] | ||||
Number of shares authorized to be repurchased (in shares) | 90,460,000 | |||
Remaining authorized repurchase amount (in shares) | 3,156,000 | |||
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) | 1,427,000 | |||
Cash dividends declared, per share | $ 2.44 | $ 2.40 | $ 2.32 | |
Common stock excluded from calculation of diluted earnings per share (in shares) | 3,846,000 | 1,723,000 | 2,768,000 | |
Subsequent Event | ||||
Stockholders Equity Note [Line Items] | ||||
Cash dividends declared, per share | $ 0.62 |
- Financial Information for Pol
- Financial Information for Polaris Acceptance Reflecting Effects of Securitization Facility (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Polaris Acceptance | |||
Schedule of Investments [Line Items] | |||
Revenues | $ 79,276 | $ 72,093 | $ 61,645 |
Interest and operating expenses | 14,337 | 11,832 | 7,590 |
Net income | 64,939 | 60,261 | $ 54,055 |
Finance receivables, net | 687,646 | 573,669 | |
Other assets | 105 | 102 | |
Total Assets | 687,751 | 573,771 | |
Notes payable/(receivable) | (463,055) | (386,438) | |
Other liabilities | 3,414 | 3,215 | |
Partners' capital | 221,282 | 184,118 | |
Total Liabilities and Partners' Capital | $ 687,751 | $ 573,771 | |
Maximum | |||
Schedule of Investments [Line Items] | |||
Aggregate repurchase obligation | 15.00% | ||
Polaris Acceptance | 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, 2019 | Dec. 31, 2018 |
Investments in and Advances to Affiliates [Line Items] | ||
Investment in finance affiliate | $ 110,641 | $ 92,059 |
Net amount financed for dealers | 1,423,428 | |
Trade receivables, net | $ 190,430 | 197,082 |
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 Summarized Financial Information Notes Receivable Payable Current | $ 463,055 | 386,438 |
Equity method investment ownership percentage | 50.00% | |
Trade receivables, net | $ 687,646 | |
Aggregate repurchase obligation, amount | 180,557 | |
Other liabilities | 3,414 | $ 3,215 |
Securitization Facility | ||
Investments in and Advances to Affiliates [Line Items] | ||
Outstanding balance of receivables | 735,782 | |
TCF [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation, amount | $ 221,500 |
Investment in Other Affiliates
Investment in Other Affiliates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments in and Advances to Affiliates [Line Items] | ||||
Investments in and Advances to Affiliates, at Fair Value | $ 0 | $ 6,133 | ||
Investment in finance affiliate | 110,641 | 92,059 | ||
Equity in loss of other affiliates | $ (5,133) | (29,252) | $ (6,760) | |
Cost-method Investments, Realized Gains | $ 13,478 | |||
Eicher -Polaris Private Limited | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Costs and Expenses | $ 27,048 |
Leases (Details)
Leases (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease assets | $ 110,153,000 |
Finance lease assets | 12,721,000 |
Total leased assets | 122,874,000 |
Current operating lease liabilities | 34,904,000 |
Current portion of debt, finance lease obligations and notes payable | 1,259,000 |
Long-term operating lease liabilities | 77,926,000 |
Finance lease obligations | 14,814,000 |
Total lease liabilities | 128,903,000 |
Accumulated amortization | 7,757,000 |
Operating expenses and cost of sales | 42,477,000 |
Operating expenses and cost of sales | 1,486,000 |
Interest expense | 875,000 |
Other (income) expense, net | (2,382,000) |
Total lease cost | 42,456,000 |
2020 | 38,095,000 |
2021 | 28,004,000 |
2022 | 19,289,000 |
2023 | 13,960,000 |
2024 | 8,913,000 |
Thereafter | 12,967,000 |
Total lease payments | 121,228,000 |
Less: interest | 8,398,000 |
Present value of lease payments | 112,830,000 |
2020 | 2,119,000 |
2021 | 2,107,000 |
2022 | 2,070,000 |
2023 | 2,070,000 |
2024 | 2,085,000 |
Thereafter | 9,940,000 |
Total lease payments | 20,391,000 |
Less: interest | 4,318,000 |
Present value of lease payments | 16,073,000 |
2020 | 40,214,000 |
2021 | 30,111,000 |
2022 | 21,359,000 |
2023 | 16,030,000 |
2024 | 10,998,000 |
Thereafter | 22,907,000 |
Total lease payments | 141,619,000 |
Option to extend | $ 3,429,000 |
Operating leases | 4 years 5 months 19 days |
Finance leases | 9 years 5 months 23 days |
Operating leases | 3.29% |
Finance leases | 5.18% |
Operating cash flows from operating leases | $ 42,687,000 |
Operating cash flows from finance leases | 858,000 |
Financing cash flows from finance leases | 1,254,000 |
Leased assets obtained in exchange for new operating lease liabilities | $ 28,773,000 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 20 years |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Accrual for the probable payment of pending claims | $ 56,961 | $ 52,801 | |
Rent expense | $ 42,477 | $ 38,179 | $ 36,537 |
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, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | $ 134,354 | $ 74,355 |
Net Unrealized Gain (Loss) | (76) | 3,128 |
Australian Dollar | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 15,971 | 0 |
Net Unrealized Gain (Loss) | (86) | 0 |
Canadian Dollar | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 101,397 | 55,133 |
Net Unrealized Gain (Loss) | (1,069) | 2,564 |
Mexican Peso | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 16,986 | 19,222 |
Net Unrealized Gain (Loss) | $ 1,079 | $ 564 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Carrying Values of Derivative Instruments (Detail) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | ||
Derivative [Line Items] | ||||
Derivative Net Carrying Value | $ (8,076) | $ 463 | ||
Foreign exchange contracts, net | ||||
Derivative [Line Items] | ||||
Derivative Net Carrying Value | [1] | (76) | 3,128 | |
Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative Net Carrying Value | [1] | (8,000) | (2,665) | |
Prepaid Expenses And Other Current Assets | ||||
Derivative [Line Items] | ||||
Fair Value— Assets | 1,079 | 3,128 | ||
Prepaid Expenses And Other Current Assets | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Fair Value— Assets | 0 | 0 | [1] | |
Fair Value— (Liabilities) | (8,000) | |||
Other Current Liabilities | ||||
Derivative [Line Items] | ||||
Fair Value— (Liabilities) | (9,155) | (2,665) | ||
Other Current Liabilities | Foreign exchange contracts, net | ||||
Derivative [Line Items] | ||||
Fair Value— Assets | [1] | 1,079 | ||
Fair Value— (Liabilities) | [1] | $ (1,155) | 0 | |
Other Current Liabilities | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative Liability | $ 2,665 | |||
[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, 2019 | Dec. 31, 2018 | |
Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Gain (loss) recognized in OCI, effective portion | $ (6,537) | $ 457 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Open Interest Rate Swap Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flow Hedging | Interest Rate Swap, May 2018 To May 2021 [Member] | |||
Derivative [Line Items] | |||
Notional Amounts (in U.S. dollars) | $ 25,000 | $ 25,000 | |
Net Unrealized Gain (Loss) | (67) | 397 | |
Cash Flow Hedging | Interest Rate Swap, September 2018 To September 2019 [Member] | |||
Derivative [Line Items] | |||
Notional Amounts (in U.S. dollars) | 0 | 250,000 | |
Net Unrealized Gain (Loss) | 0 | (163) | |
Cash Flow Hedging | Interest Rate Swap, September 2019 To September 2023 [Member] | |||
Derivative [Line Items] | |||
Notional Amounts (in U.S. dollars) | 150,000 | 150,000 | |
Net Unrealized Gain (Loss) | (7,696) | (2,899) | |
Cash Flow Hedging | Interest Rate Swap, May 2019 To May 2020 [Member] [Member] | |||
Derivative [Line Items] | |||
Notional Amounts (in U.S. dollars) | 100,000 | ||
Net Unrealized Gain (Loss) | (237) | ||
Cash Flow Hedging | Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional Amounts (in U.S. dollars) | 275,000 | 425,000 | |
Net Unrealized Gain (Loss) | (8,000) | (2,665) | |
Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Net Unrealized Gain (Loss) | (8,076) | 463 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap | |||
Derivative [Line Items] | |||
Net Unrealized Gain (Loss) | [1] | $ (8,000) | $ (2,665) |
[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 (Detail)
Segment Reporting (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of operating segments | segment | 6 | ||||||||||
Number of reportable segments | segment | 5 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 1,735,866 | $ 1,771,647 | $ 1,779,315 | $ 1,495,690 | $ 1,627,120 | $ 1,651,415 | $ 1,502,532 | $ 1,297,473 | $ 6,782,518 | $ 6,078,540 | $ 5,428,477 |
Gross profit | $ 423,344 | $ 436,542 | $ 436,448 | $ 352,448 | $ 391,273 | $ 401,270 | $ 385,176 | $ 323,481 | 1,648,782 | 1,501,200 | 1,324,651 |
ORV/Snowmobiles | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 4,209,063 | 3,919,417 | |||||||||
Motorcycles | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 584,096 | 545,646 | |||||||||
Global Adjacent Markets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 461,255 | 444,644 | |||||||||
Aftermarket | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 906,751 | 889,177 | |||||||||
Boats | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 621,353 | 279,656 | |||||||||
Operating Segments [Member] | ORV/Snowmobiles | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 4,209,063 | 3,919,417 | 3,570,753 | ||||||||
Gross profit | 1,204,288 | 1,113,908 | 1,054,557 | ||||||||
Operating Segments [Member] | Motorcycles | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 584,096 | 545,646 | 576,068 | ||||||||
Gross profit | 44,065 | 63,045 | 16,697 | ||||||||
Operating Segments [Member] | Global Adjacent Markets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 461,255 | 444,644 | 396,764 | ||||||||
Gross profit | 129,939 | 116,583 | 94,920 | ||||||||
Operating Segments [Member] | Aftermarket | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 906,751 | 889,177 | 884,892 | ||||||||
Gross profit | 222,712 | 234,365 | 225,498 | ||||||||
Operating Segments [Member] | Boats | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 621,353 | 279,656 | 0 | ||||||||
Gross profit | 124,613 | 46,252 | 0 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | $ (76,835) | $ (72,953) | $ (67,021) |
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 | $ 2,383,000 | $ 77,406,000 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Sales | $ 1,735,866 | $ 1,771,647 | $ 1,779,315 | $ 1,495,690 | $ 1,627,120 | $ 1,651,415 | $ 1,502,532 | $ 1,297,473 | $ 6,782,518 | $ 6,078,540 | $ 5,428,477 |
Gross profit | 423,344 | 436,542 | 436,448 | 352,448 | 391,273 | 401,270 | 385,176 | 323,481 | 1,648,782 | 1,501,200 | 1,324,651 |
Net income | $ 98,931 | $ 88,388 | $ 88,263 | $ 48,378 | $ 91,474 | $ 95,529 | $ 92,540 | $ 55,714 | $ 323,960 | $ 335,257 | $ 172,492 |
Diluted net income per share (in dollars per share) | $ 1.58 | $ 1.42 | $ 1.42 | $ 0.78 | $ 1.47 | $ 1.50 | $ 1.43 | $ 0.85 | $ 5.20 | $ 5.24 | $ 2.69 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for obsolete inventory | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 48,343 | $ 47,119 | $ 45,175 |
Additions Charged to Costs and Expenses | 21,930 | 11,565 | 36,150 |
Additions Through Acquisition | 454 | 1,947 | 0 |
Other Changes Add (Deduct) | (14,067) | (12,288) | (34,206) |
Balance at End of Period | 56,660 | 48,343 | 47,119 |
Allowance for doubtful accounts receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 9,451 | 10,914 | 19,439 |
Additions Charged to Costs and Expenses | 767 | 1,058 | (965) |
Additions Through Acquisition | 0 | 60 | 0 |
Other Changes Add (Deduct) | (878) | (2,581) | (7,560) |
Balance at End of Period | $ 9,340 | $ 9,451 | $ 10,914 |
Uncategorized Items - pii-12312
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 145,170,000 |