Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 09, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity Registrant Name | POLARIS INC | ||
Entity File Number | 001-11411 | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-1790959 | ||
Entity Address, Address Line One | 2100 Highway 55, | ||
Entity Address, City or Town | Medina, | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55340 | ||
City Area Code | 763 | ||
Local Phone Number | 542-0500 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | PII | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,675,268,000 | ||
Entity Common Stock, Shares Outstanding | 61,970,286 | ||
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 29, 2021 to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this report (the “2021 Proxy Statement”), are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000931015 | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 634,700 | $ 157,100 |
Trade receivables, net | 257,200 | 190,400 |
Inventories, net | 1,177,600 | 1,121,100 |
Prepaid expenses and other | 134,100 | 125,900 |
Income taxes receivable | 3,900 | 32,500 |
Total current assets | 2,207,500 | 1,627,000 |
Land, buildings and improvements | 517,200 | 502,900 |
Equipment and tooling | 1,499,500 | 1,390,500 |
Property and equipment, gross | 2,016,700 | 1,893,400 |
Less: accumulated depreciation | (1,127,900) | (993,600) |
Property and equipment, net | 888,800 | 899,800 |
Investment in finance affiliate | 59,400 | 110,600 |
Deferred tax assets | 177,700 | 93,300 |
Goodwill and other intangible assets, net | 1,083,700 | 1,490,200 |
Operating Lease, Right-of-Use Asset | 125,400 | 110,200 |
Other long-term assets | 90,200 | 99,400 |
Total assets | 4,632,700 | 4,430,500 |
Current liabilities: | ||
Current portion of debt, finance lease obligations, and notes payable | 142,100 | 166,700 |
Accounts payable | 782,200 | 450,200 |
Accrued expenses: | ||
Compensation | 215,400 | 184,500 |
Warranties | 140,800 | 136,200 |
Sales promotions and incentives | 138,100 | 189,900 |
Dealer holdback | 121,700 | 145,800 |
Other | 292,400 | 213,900 |
Operating Lease, Liability, Current | 34,700 | 34,900 |
Income taxes payable | 22,000 | 5,900 |
Total current liabilities | 1,889,400 | 1,528,000 |
Long-term income taxes payable | 14,400 | 28,100 |
Finance lease obligations | 14,700 | 14,800 |
Long-term debt | 1,293,900 | 1,512,000 |
Deferred tax liabilities | 4,400 | 4,000 |
Operating Lease, Liability, Noncurrent | 92,300 | 77,900 |
Other long-term liabilities | 166,500 | 143,900 |
Total liabilities | 3,475,600 | 3,308,700 |
Deferred compensation | 12,300 | 13,600 |
Shareholders’ equity: | ||
Preferred stock $0.01 par value, 20.0 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock $0.01 par value, 160.0 shares authorized, 61.9 and 61.4 shares issued and outstanding, respectively | 600 | 600 |
Additional paid-in capital | 983,900 | 892,800 |
Retained earnings | 218,400 | 287,300 |
Accumulated other comprehensive loss, net | (58,400) | (72,700) |
Total shareholders’ equity | 1,144,500 | 1,108,000 |
Stockholders' Equity Attributable to Noncontrolling Interest | 300 | 200 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,144,800 | 1,108,200 |
Total liabilities and equity | $ 4,632,700 | $ 4,430,500 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 61,900,000 | 61,400,000 |
Common stock, shares outstanding | 61,900,000 | 61,400,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 124,900 | $ 323,900 | $ 335,300 |
Sales | 7,027,900 | 6,782,500 | 6,078,500 |
Cost of sales | 5,317,700 | 5,133,700 | 4,577,300 |
Gross profit | 1,710,200 | 1,648,800 | 1,501,200 |
Operating expenses: | |||
Selling and marketing | 544,300 | 559,200 | 491,800 |
Research and development | 295,600 | 292,900 | 259,700 |
General and administrative | 359,200 | 393,900 | 349,700 |
Total operating expenses | 1,578,300 | 1,246,000 | 1,101,200 |
Operating income | 212,300 | 483,700 | 487,400 |
Non-operating expense: | |||
Interest expense | 66,700 | 77,600 | 57,000 |
Equity in loss of other affiliates | 0 | 5,100 | 29,300 |
Other (income) expense, net | 4,200 | (6,800) | (28,100) |
Income before income taxes | 141,400 | 407,800 | 429,200 |
Provision for income taxes | 16,500 | 83,900 | 93,900 |
Net income | 124,800 | 324,000 | 335,300 |
Net Income (Loss) Attributable to Noncontrolling Interest | $ (100) | $ 100 | $ 0 |
Net income per share attributable to Polaris Inc. common shareholders: | |||
Basic (in dollars per share) | $ 2.02 | $ 5.27 | $ 5.36 |
Diluted (in dollars per share) | $ 1.99 | $ 5.20 | $ 5.24 |
Weighted average shares outstanding: | |||
Basic (in shares) | 61,900 | 61,400 | 62,500 |
Diluted (in shares) | 62,600 | 62,300 | 63,900 |
Goodwill and Intangible Asset Impairment | $ 379,200 | ||
Financial Service | |||
Sales | $ 80,400 | $ 80,900 | $ 87,400 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 124,800 | $ 324,000 | $ 335,300 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 124,900 | 323,900 | 335,300 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 24,200 | (2,800) | (18,100) |
Unrealized (loss) gain on derivative instruments | (9,400) | (6,500) | 400 |
Retirement plan and other activity | (500) | 200 | 300 |
Comprehensive income | 139,100 | 314,900 | 317,900 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 139,200 | 314,800 | 317,900 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | $ (100) | $ 100 | $ 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, 2017 | $ 931,700 | $ 600 | $ 733,900 | $ 242,800 | $ (45,600) | |
Beginning Balance (in shares) at Dec. 31, 2017 | 63,100 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Employee stock compensation | 64,000 | $ 0 | 64,000 | |||
Deferred compensation | 4,800 | (100) | (4,700) | |||
Employee stock compensation (in shares) | 200 | |||||
Proceeds from stock issuances under employee plans | 47,100 | $ 0 | 47,100 | |||
Proceeds from stock issuances under employee plans (in shares) | 800 | |||||
Cash dividends declared ($2.32 per share, $2.20 per share and $2.12 per share in 2017, 2016, and 2015 respectively) | (149,000) | 149,000 | ||||
Repurchase and retirement of common shares | $ (348,700) | $ 0 | 37,100 | 311,600 | ||
Repurchase and retirement of common shares (in shares) | (3,200) | 3,200 | ||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | $ 300 | |||||
Net income | 335,300 | 335,300 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 335,300 | |||||
Other comprehensive income | (17,400) | (17,400) | ||||
Ending Balance at Dec. 31, 2018 | 867,000 | $ 600 | 808,000 | 121,100 | (63,000) | |
Ending Balance (in shares) at Dec. 31, 2018 | 60,900 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 300 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Employee stock compensation | 74,900 | $ 0 | 74,900 | |||
Deferred compensation | (6,700) | 4,400 | 2,300 | |||
Employee stock compensation (in shares) | 400 | |||||
Proceeds from stock issuances under employee plans | 15,700 | $ 0 | 15,700 | |||
Proceeds from stock issuances under employee plans (in shares) | 200 | |||||
Cash dividends declared ($2.32 per share, $2.20 per share and $2.12 per share in 2017, 2016, and 2015 respectively) | (149,100) | 149,100 | ||||
Repurchase and retirement of common shares | $ (8,400) | $ 0 | 1,400 | 7,000 | ||
Repurchase and retirement of common shares (in shares) | (100) | 100 | ||||
Cumulative effect of adoption of accounting standards | $ 0 | 600 | (600) | |||
Net income | 324,000 | 324,000 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 323,900 | (100) | ||||
Other comprehensive income | (9,100) | (9,100) | ||||
Ending Balance at Dec. 31, 2019 | 1,108,000 | |||||
Ending Balance (in shares) at Dec. 31, 2019 | 61,400 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,108,200 | $ 600 | 892,800 | 287,300 | (72,700) | 200 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Employee stock compensation | 65,300 | $ 0 | 65,300 | |||
Deferred compensation | 1,300 | (500) | (800) | |||
Employee stock compensation (in shares) | 600 | |||||
Proceeds from stock issuances under employee plans | 33,600 | $ 0 | 33,600 | |||
Proceeds from stock issuances under employee plans (in shares) | 500 | |||||
Cash dividends declared ($2.32 per share, $2.20 per share and $2.12 per share in 2017, 2016, and 2015 respectively) | (152,500) | 152,500 | ||||
Repurchase and retirement of common shares | $ (50,300) | $ 0 | 8,300 | 42,000 | ||
Repurchase and retirement of common shares (in shares) | (600) | 600 | ||||
Net income | $ 124,800 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 124,900 | 124,800 | 100 | |||
Other comprehensive income | 14,300 | 14,300 | ||||
Ending Balance at Dec. 31, 2020 | 1,144,500 | |||||
Ending Balance (in shares) at Dec. 31, 2020 | 61,900 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,144,800 | $ 600 | $ 983,900 | $ 218,400 | $ (58,400) | $ 300 |
Consolidated Statements Of Sh_2
Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared, per share | $ 2.48 | $ 2.44 | $ 2.40 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Net income | $ 124,900 | $ 323,900 | $ 335,300 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 260,700 | 234,500 | 211,000 |
Noncash compensation | 65,300 | 75,000 | 64,000 |
Noncash income from financial services | (18,500) | (32,500) | (30,100) |
Deferred income taxes | (83,700) | (9,500) | 23,400 |
Other impairment charges | 2,800 | 3,600 | 24,200 |
Other, net | (900) | 1,600 | (8,500) |
Changes in operating assets and liabilities: | |||
Trade receivables | (56,200) | 6,800 | 20,700 |
Inventories | (44,900) | (149,900) | (149,700) |
Accounts payable | 326,600 | 103,800 | (1,000) |
Accrued expenses | 54,000 | 99,000 | 7,200 |
Income taxes payable/receivable | 30,500 | 4,900 | (4,500) |
Prepaid expenses and other, net | (21,200) | (6,100) | (14,900) |
Net cash provided by operating activities | 1,018,600 | 655,100 | 477,100 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Purchase of property and equipment | (213,900) | (251,400) | (225,400) |
Investment in finance affiliate | (30,600) | (16,900) | (12,300) |
Distributions from finance affiliate | 100,400 | 30,800 | 39,100 |
Investment in other affiliates, net | (6,600) | 0 | (1,100) |
Acquisition and disposal of businesses, net of cash acquired | 0 | (1,800) | (759,800) |
Net cash used for investing activities | (150,700) | (239,300) | (959,500) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Borrowings under debt arrangements / finance lease obligations | 1,365,500 | 3,368,900 | 3,553,200 |
Repayments under debt arrangements / finance lease obligations | (1,611,700) | (3,638,900) | (2,579,500) |
Repurchase and retirement of common shares | (50,300) | (8,400) | (348,700) |
Cash dividends to shareholders | (152,500) | (149,100) | (149,000) |
Proceeds from stock issuances under employee plans | 33,600 | 15,700 | 47,400 |
Net cash (used for) provided by financing activities | (415,400) | (411,800) | 523,400 |
Net increase in cash, cash equivalents and restricted cash | 461,200 | 3,200 | 31,500 |
Impact of currency exchange rates on cash balances | 8,700 | (800) | (9,500) |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid on debt borrowings | 67,000 | 77,000 | 51,000 |
Income taxes paid | 65,500 | 87,800 | 74,000 |
Cash and cash equivalents | 634,700 | 157,100 | 161,200 |
Other long-term assets | 22,800 | 39,200 | 31,900 |
Total | 657,500 | $ 196,300 | $ 193,100 |
Goodwill and Intangible Asset Impairment | $ 379,200 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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, and retail stores. 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 segment gross profit amounts have been made to conform to the current year presentation. The reclassifications had no impact on the consolidated balance sheets, statements of income, comprehensive income, equity, or cash flows, as previously reported. Refer to Note 15 for additional information. 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. Actual 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 millions): Fair Value Measurements as of December 31, 2020 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48.3 $ 48.3 $ — $ — Total assets at fair value $ 48.3 $ 48.3 $ — $ — Non-qualified deferred compensation liabilities $ (48.3) $ (48.3) $ — $ — Foreign exchange contracts, net (2.3) — (2.3) — Interest rate contracts, net (18.1) — (18.1) — Total liabilities at fair value $ (68.7) $ (48.3) $ (20.4) $ — Fair Value Measurements as of December 31, 2019 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48.9 $ 48.9 $ — $ — Total assets at fair value $ 48.9 $ 48.9 $ — $ — Non-qualified deferred compensation liabilities $ (48.9) $ (48.9) $ — $ — Foreign exchange contracts, net (0.1) — (0.1) — Interest rate contracts, net (8.0) — (8.0) — Total liabilities at fair value $ (57.0) $ (48.9) $ (8.1) $ — 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, 2020 and December 31, 2019, the fair value of the Company’s long-term debt, finance lease obligations and notes payable was approximately $1,552.3 million and $1,769.3 million, 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 $1,450.7 million and $1,693.5 million as of December 31, 2020 and December 31, 2019, respectively. The Company 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. The Company 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. The Company 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. The Company classifies amounts of cash 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. The Company’s 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 collection experience, the age of the accounts receivables, credit quality of our customers, current and expected economic conditions, and other factors that may affect our ability to collect from customers. 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 millions): December 31, 2020 December 31, 2019 Raw materials and purchased components $ 533.5 $ 344.6 Service parts, garments and accessories 330.5 357.0 Finished goods 381.3 476.2 Less: reserves (67.7) (56.7) Inventories $ 1,177.6 $ 1,121.1 Investment in finance affiliate. The caption Investment in finance affiliate in the consolidated balance sheets represents the Company’s fifty percent equity interest in Polaris Acceptance, a partnership agreement between Wells Fargo Commercial Distribution Finance Corporation and one of the Company’s wholly-owned subsidiaries. Polaris Acceptance provides floor plan financing to Polaris dealers in the United States. The Company’s investment in Polaris Acceptance is accounted for under the equity method, and is recorded as investment in finance affiliate in the consolidated balance sheets. The Company’s 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. Investment in other affiliates. The Company’s 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, the Company assesses the level of influence in determining whether to account for the investment under the cost method or equity method. For equity method investments, the Company’s proportionate share of income or losses is recorded in the consolidated statements of income. The Company 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. 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 purchase price 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 the Company considers 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 the Company’s 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. 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. Determining the fair value of the reporting units requires the use of significant judgment, including discount rates, assumptions in the Company’s long-term business plan about future revenues and expenses, capital expenditures, and changes in working capital, which are dependent on internal forecasts, estimation of long-term growth for each reporting unit, and determination of the discount rate. These plans take into consideration numerous factors including historical experience, anticipated future economic conditions, including the impacts from the COVID-19 pandemic, changes in raw material prices and growth expectations for the industries and end markets in which the Company participates. For its annual test, the Company completed a qualitative assessment for the ORV, Snow, Motorcycles and Global Adjacent Markets reporting units and a quantitative goodwill test for the Boats reporting unit. No assessment was performed for the Aftermarket reporting unit as it did not have a goodwill balance as of the annual testing date. The Company’s primary identifiable intangible assets include: dealer/customer relationships, brand/trade names, developed technology, and non-compete agreements. Identifiable intangible assets 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. Refer to Note 7 for additional information on goodwill and other intangible assets. Revenue recognition. With respect to wholegood vehicles, boats, and parts, garments and accessories (“PG&A”), 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. When the right of return exists, we adjust the consideration for the estimated effect of returns. We estimate expected returns based on historical sales levels, the timing and magnitude of historical sales return levels as a percent of sales, type of product, type of customer and a projection of this experience into the future. Historically, product returns, whether in the normal course of business or resulting from repurchases made under floor plan financing programs, 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. Refer to Note 2 for additional information. Sales promotions and incentives. The Company 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. 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 the Company’s dealers or distributors and, therefore, reduce the amount of sales the Company recognizes. The portion of the invoiced sales price estimated as the holdback is recognized as “dealer holdback” liability on the Company’s consolidated 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. The Company records shipping and handling costs as a component of cost of sales when control has transferred to the customer. Research and development expenses. The Company records research and development expenses in the period in which they are incurred as a component of operating expenses. Advertising expenses. The Company 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, 2020, 2019 and 2018, Polaris incurred $95.8 million, $77.4 million and $65.0 million of advertising expenses, respectively. Product warranties. The Company typically provides a limited warranty for its vehicles and boats for a period of six months to ten years, depending on the product. The Company 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. The Company’s standard warranties require the Company, generally 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, impacts on product usage (including weather), product recalls and changes in sales volume. The activity in the warranty reserve during the periods presented was as follows (in millions): For the Years Ended December 31, 2020 2019 2018 Balance at beginning of year $ 136.2 $ 121.8 $ 123.8 Additions to reserve related to acquisitions — 8.8 19.5 Additions charged to expense 123.7 122.9 105.0 Warranty claims paid, net (119.1) (117.3) (126.5) Balance at end of year $ 140.8 $ 136.2 $ 121.8 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 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. 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 yield, 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. All stock options have time-based vesting conditions. 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 profit and operating expenses. Fluctuations in the Company’s stock price can have an 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. 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. The Company does not use any financial contracts for trading purposes. The Company 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. The Company enters into interest rate swaps in order to maintain a balanced risk of fixed and floating interest rates associated with the Company’s 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. Foreign currency translation. The functional currency for each of the Company’s foreign subsidiaries is their respective local currencies. The assets and liabilities in all of the Company’s 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, net in the shareholders’ equity section of the accompanying consolidated balance sheets. Revenues and expenses in all of the Company’s 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. 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 . Topic 326 replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost. The Company adopted Topic 326 on January 1, 2020, using a modified retrospective transition method. The adoption of Topic 326 did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows. Fair Value Measurement. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which amends ASC 820 to eliminate, modify, and add certain disclosure requirements for fair value measurements. The Company adopted ASU 2018-13 on January 1, 2020. The adoption of ASU 2018-13 did not have a material impact on the Company’s disclosures. Income Taxes. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for incomes taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify the accounting for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for fiscal years and interim periods beginning after December 15, 2020, and is effective for the Company’s fiscal year beginning January 1, 2021. The adoption of the ASU is not expected to have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows. Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides practical expedients and exception for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The FASB also issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope in January 2021, which adds implementation guidance to clarify which optional expedients in Topic 848 may be applied to derivative instruments that do not reference LIBOR or a reference rate that is expected to be discontinued, but that are being modified as a result of the discounting transition. The ASUs may be applied through December 31, 2022 and are applicable to our contracts and hedging relationships that reference LIBOR. We are still evaluating whether to apply any of the expedients and/or exceptions included in these ASUs. There are no other new accounting pronouncements that are expected to have a significant impact on the Company’s consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition The following tables disaggregate the Company’s revenue by major product type and geography (in millions): For the Year Ended December 31, 2020 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total Revenue by product type Wholegoods $ 3,612.9 $ 493.4 $ 343.6 $ — $ 603.4 $ 5,053.3 PG&A 920.4 88.3 81.0 884.9 — 1,974.6 Total revenue $ 4,533.3 $ 581.7 $ 424.6 $ 884.9 $ 603.4 $ 7,027.9 Revenue by geography United States $ 3,749.9 $ 397.0 $ 208.3 $ 843.5 $ 592.4 $ 5,791.1 Canada 319.7 21.2 2.8 41.4 11.0 396.1 EMEA 307.9 96.7 210.2 — — 614.8 APLA 155.8 66.8 3.3 — — 225.9 Total revenue $ 4,533.3 $ 581.7 $ 424.6 $ 884.9 $ 603.4 $ 7,027.9 For the Year Ended December 31, 2019 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total Revenue by product type Wholegoods $ 3,463.2 $ 502.1 $ 373.9 $ — $ 621.3 $ 4,960.5 PG&A 745.9 82.0 87.4 906.7 — 1,822.0 Total revenue $ 4,209.1 $ 584.1 $ 461.3 $ 906.7 $ 621.3 $ 6,782.5 Revenue by geography United States $ 3,470.1 $ 376.0 $ 232.7 $ 867.0 $ 605.9 $ 5,551.7 Canada 304.0 31.1 4.6 39.7 15.4 394.8 EMEA 302.5 116.2 221.3 — — 640.0 APLA 132.5 60.8 2.7 — — 196.0 Total revenue $ 4,209.1 $ 584.1 $ 461.3 $ 906.7 $ 621.3 $ 6,782.5 For the Year Ended December 31, 2018 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total Revenue by product type Wholegoods $ 3,237.5 $ 465.2 $ 366.1 $ — $ 279.7 $ 4,348.5 PG&A 681.9 80.4 78.5 889.2 — 1,730.0 Total revenue $ 3,919.4 $ 545.6 $ 444.6 $ 889.2 $ 279.7 $ 6,078.5 Revenue by geography United States $ 3,178.1 $ 371.4 $ 212.7 $ 847.3 $ 274.3 $ 4,883.8 Canada 293.2 31.2 18.5 41.9 5.4 390.2 EMEA 306.9 88.0 208.0 — — 602.9 APLA 141.2 55.0 5.4 — — 201.6 Total revenue $ 3,919.4 $ 545.6 $ 444.6 $ 889.2 $ 279.7 $ 6,078.5 With respect to wholegood vehicles, boats, and PG&A, 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. When the right of return exists, we adjust the consideration for the estimated effect of returns. We estimate expected returns based on historical sales levels, the timing and magnitude of historical sales return levels as a percent of sales, type of product, type of customer and a projection of this experience into the future. 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 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 Global Adjacent Markets, and Boats segments Wholegood vehicles, boats, and parts, garments and accessories. For the majority of wholegood vehicles, boats, and 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. When the right of return exists, we adjust the consideration for the estimated effect of returns. We estimate expected returns based on historical sales levels, the timing and magnitude of historical sales return levels as a percent of sales, type of product, type of customer and a projection of this experience into the future. 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, boats, or PG&A 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 right of return exists, we adjust the consideration for the estimated effect of returns. We estimate expected returns based on historical sales levels, the timing and magnitude of historical sales return levels as a percent of sales, type of product, type of customer and a projection of this experience into the future. 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., 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 PG&A 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 $37.8 million of the unearned amount over the next 12 months and $69.3 million thereafter. The activity in the deferred revenue reserve during the periods presented was as follows (in millions): For the Years Ended December 31, 2020 2019 2018 Balance at beginning of year $ 81.6 $ 59.9 $ 45.8 New contracts sold 60.4 49.6 35.6 Less: reductions for revenue recognized (34.9) (27.9) (21.5) Balance at end of year (1) $ 107.1 $ 81.6 $ 59.9 (1) The unamortized ESC premiums (deferred revenue) recorded in other current liabilities totaled $37.8 million and $34.3 million at December 31, 2020 and 2019, respectively, while the amount recorded in other long-term liabilities totaled $69.3 million and $47.3 million at December 31, 2020 and 2019, respectively. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2020 Acquisitions. The Company did not complete any material acquisitions in 2020. 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 $806.7 million, 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 $100.0 million 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, 2020, 2019 and 2018 include $603.4 million, $621.3 million and $279.7 million of net sales and $116.4 million, $124.6 million and $46.3 million 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 millions): Cash and cash equivalents $ 16.5 Trade receivables 17.5 Inventory 39.9 Other current assets 4.5 Property, plant and equipment 35.3 Customer relationships 341.1 Trademarks / trade names 210.7 Non-compete agreements 2.6 Goodwill 222.4 Accounts payable (30.0) Other liabilities assumed (37.3) Total fair value of net assets acquired 823.2 Less cash acquired (16.5) Total consideration for acquisition, less cash acquired $ 806.7 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 2018 (in millions, except per share data): For the Years Ended December 31, 2020 2019 2018 Net sales $ 7,027.9 $ 6,782.5 $ 6,429.7 Net income attributable to Polaris Inc. 124.8 328.8 360.7 Basic earnings per share $ 2.02 $ 5.35 $ 5.77 Diluted earnings per common share $ 1.99 $ 5.28 $ 5.64 The results for the years ended December 31, 2019 and 2018 have been adjusted to exclude the impact of approximately $6.4 million and $9.6 million, respectively, 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 and 2018 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. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [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 and restated as of April 30,2020) (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 prior equity plans maintained by the Company were frozen and no further grants or awards have since been or will be made under such plans. A maximum of 27,775,000 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 216,000 deferred stock units to its non-employee directors under the Omnibus Plan (20,000, 15,000 and 12,000 in 2020, 2019 and 2018, 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, 2020. Authorized shares under the Director Plan were exhausted in 2017. Since 2017, the Company has granted a total of 48,000 common stock equivalents to its non-employee directors under the Omnibus Plan (13,000 in 2020, 14,000 in 2019, and 10,000 in 2018). As of December 31, 2020 and 2019, Polaris’ liability under the plans for the common stock equivalents totaled $8.0 million and $11.0 million, 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 millions): For the Years Ended December 31, 2020 2019 2018 Option awards $ 13.8 $ 21.8 $ 23.4 Other share-based awards 40.9 48.0 28.5 Total share-based compensation before tax 54.7 69.8 51.9 Tax benefit 13.1 16.6 12.3 Total share-based compensation expense included in net income $ 41.6 $ 53.2 $ 39.6 These share-based compensation expenses are reflected in cost of sales and operating expenses in the accompanying consolidated statements of income. At December 31, 2020, there was $60.1 million 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 1.04 years. Included in unrecognized share-based compensation expense is approximately $10.2 million related to stock options and $49.9 million for restricted stock. In addition to the above share-based compensation expenses, the Company sponsors a qualified non-leveraged employee stock ownership plan (ESOP). Shares allocated to eligible participants’ accounts vest at various percentage rates based on years of service and require no cash payments from the recipient. See Note 5 for additional information. 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, 2020: Omnibus Plan Options Outstanding Weighted Balance as of December 31, 2019 5,654,258 $ 96.83 Granted 606,060 93.88 Exercised (428,617) 72.49 Forfeited/Expired (729,405) 95.62 Balance as of December 31, 2020 5,102,296 $ 98.70 Options exercisable as of December 31, 2020 3,398,589 $ 102.23 The weighted average remaining contractual life of options outstanding and of options outstanding and exercisable as of December 31, 2020 was 5.17 years and 3.84 years, respectively. Substantially all unvested outstanding options are expected to vest. The following assumptions were used to estimate the weighted average fair value of options of $21.76, $19.54 and $26.50 granted during the years ended December 31, 2020, 2019 and 2018, respectively: For the Years Ended December 31, 2020 2019 2018 Weighted-average volatility 34% 32% 30% Expected dividend yield 2.6% 2.9% 2.1% Expected term (in years) 4.5 4.5 4.4 Weighted average risk free interest rate 1.4% 2.5% 2.6% The total intrinsic value of options exercised during the year ended December 31, 2020 was $13.4 million. The total intrinsic value of options outstanding and of options outstanding and exercisable at December 31, 2020, was $35.6 million and $25.8 million, 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, 2020 2019 2018 Weighted-average volatility 35% 34% 33% Expected dividend yield 2.6% 2.7% 2.1% Expected term (in years) 3.0 3.0 3.0 Weighted average risk free interest rate 1.4% 2.4% 2.3% 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 2020, 2019, and 2018 was $98.09, $96.38, and $106.43 per award, respectively. The following table summarizes restricted stock activity for the year ended December 31, 2020: Shares Weighted Balance as of December 31, 2019 1,386,009 $ 96.92 Granted 391,206 92.23 Vested (423,154) 87.93 Forfeited/Cancelled (210,985) 99.28 Balance as of December 31, 2020 1,143,076 $ 98.20 Expected to vest as of December 31, 2020 1,135,950 $ 98.12 The shares granted above include 96,000 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, 2020 was $108.2 million. 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, 2020, 2019 and 2018 were $92.23, $89.75 and $114.42, respectively. |
Employee Savings Plans
Employee Savings Plans | 12 Months Ended |
Dec. 31, 2020 | |
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 7,700,000 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. Participants that meet certain age and service requirements are allowed to transfer balances, subject to limitation, to the Polaris 401(k) Retirement Savings Plan and thus diversify their investments. Total expense related to the ESOP was $12.3 million, $10.3 million and $10.0 million, in 2020, 2019 and 2018, respectively. As of December 31, 2020 there were 3,242,000 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 $26.9 million, $26.2 million, and $24.5 million, in 2020, 2019 and 2018, 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 $48.3 million and $48.9 million at December 31, 2020, and 2019, respectively. Executive officers of the Company have the opportunity to defer certain restricted stock units. These restricted stock units are redeemable in Polaris common stock or in cash. After a holding period, the executive officer has the option to diversify the vested award into other funds available under the SERP. If the award is diversified, it must be redeemed in cash. Awards probable of vesting, for which the executive has not yet made an election to defer, and awards that have been deferred but have not yet vested and are probable of vesting are reported as deferred compensation in the temporary equity section of the consolidated balance sheets, as these awards have redemption features that are not yet solely within the control of the Company. 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, 2020, 129,457 shares are recorded at a fair value of $12.3 million in temporary equity, which includes $11.3 million of compensation cost and $1.0 million of cumulative fair value adjustment recorded through retained earnings. |
Financing Agreement
Financing Agreement | 12 Months Ended |
Dec. 31, 2020 | |
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 millions): Average interest rate at December 31, 2020 Maturity December 31, 2020 December 31, 2019 Revolving loan facility — July 2023 $ — $ 75.1 Term loan facility 1.40% July 2023 940.0 1,000.0 Senior notes—fixed rate 4.60% May 2021 75.0 75.0 Senior notes—fixed rate — December 2020 — 100.0 Senior notes—fixed rate 4.23% July 2028 350.0 350.0 Finance lease obligations 5.20% Various through 2029 16.2 16.1 Notes payable and other 4.24% Various through 2030 75.0 81.4 Debt issuance costs (5.5) (4.1) Total debt, finance lease obligations, and notes payable $ 1,450.7 $ 1,693.5 Less: current maturities 142.1 166.7 Total long-term debt, finance lease obligations, and notes payable $ 1,308.6 $ 1,526.8 Bank financing. In December 2010, the Company entered into a Master Note Purchase Agreement to issue $75 million of unsecured senior notes due May 2021 (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 million of unsecured senior notes due December 2020. In July 2018, the Company entered into a Master Note Purchase Agreement to issue $350 million of unsecured senior notes due July 2028. There are $75 million of the senior notes classified as current maturities in the consolidated balance sheet as of December 31, 2020. In July 2018, the Company amended its unsecured credit agreement to increase its revolving loan facility (the “revolving loan facility”) to $700 million and increase its term loan facility (the “term loan facility”) to $1,180 million. The expiration date of the facility was extended to July 2023, and interest is charged at rates based on a LIBOR or “prime” base rate. The Company is required to make principal payments under the term loan facility of $59.0 million over the next 12 months. These payments are classified as current maturities in the consolidated balance sheets. On April 9, 2020, the Company amended the credit agreement to provide a new incremental 364-day term loan (the “incremental term loan”) in the amount of $300 million. The new incremental term loan, which was fully drawn on closing, was unsecured and set to mature on April 8, 2021, however, the incremental term loan was repaid in full in December 2020. The credit agreement 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. On May 26, 2020, the Company further amended the credit agreement and amended Master Note Purchase Agreement to temporarily decrease its minimum interest coverage ratio from not less than 3.00x to not less than 2.25x and temporarily increase its maximum leverage ratio from 3.50x to 4.75x on a rolling four quarter basis until March 31, 2021. Polaris was in compliance with all such covenants as of December 31, 2020. On January 15, 2021 the Company further amended the credit agreement and amended Master Note Purchase Agreement to revert the financial covenants to those in place prior to the 2020 amendments. 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 in 2018, the Company 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 $76.7 million, of which $66.5 million is outstanding as of December 31, 2020. 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. The original mortgage note payable, due in 2027, was for $14.5 million, of which $8.5 million is outstanding as of December 31, 2020. The outstanding balance is included in long-term debt and current portion of long-term debt in the consolidated balance sheets. 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 (in millions): 2020 2019 2018 Total borrowings at December 31 $ 1,365.0 $ 1,600.1 $ 1,862.6 Average outstanding borrowings during year $ 1,879.7 $ 1,912.0 $ 1,474.5 Maximum outstanding borrowings during year $ 2,370.6 $ 2,127.9 $ 1,999.7 Weighted-average interest rate at December 31 2.30% 3.29% 3.64% Letters of credit. At December 31, 2020, Polaris had open letters of credit totaling $30.7 million. 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, 2020, was approximately $1,064.0 million. 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, 2020, the potential aggregate repurchase obligation was approximately $198.3 million and $135.7 million for Polaris Acceptance and TCF Financial |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets In the second quarter of 2020, as a result of market and economic conditions resulting from the COVID-19 pandemic, as well as financial performance and restructuring actions, the Company determined that the conditions indicated that indefinite lived intangible assets within the Aftermarket and Boats reporting units are more-likely-than-not impaired and performed an impairment test to compare the fair value of these indefinite lived intangible assets, consisting of certain brand/trade names, with their carrying value. These factors were also indicators during the second quarter of 2020 that it was more-likely-than-not that the fair value of the Aftermarket and Boats reporting units would be less than their respective carrying values. As a result, the Company performed quantitative goodwill impairment tests of the Aftermarket and Boats reporting units. The fair value of each brand/trade name was determined using the relief-from-royalty method. Under the quantitative goodwill impairment test, the fair value of each reporting unit was determined using a discounted cash flow analysis and a market approach. Determining the fair value of brand/trade names and the reporting units required the use of significant judgment, including royalty rates, discount rates, assumptions in the Company’s long-term business plan about future revenues and expenses, capital expenditures, and changes in working capital, which are dependent on internal forecasts, estimation of long-term growth for each reporting unit, and determination of the discount rate. These plans take into consideration numerous factors including historical experience, anticipated future economic conditions, including the impacts from the COVID-19 pandemic, changes in raw material prices and growth expectations for the industries and end markets in which the Company participates. Inputs used to estimate these fair values included significant unobservable inputs that reflect the Company’s assumptions about the inputs that market participants would use and, therefore, the fair value assessments are classified within Level 3 of the fair value hierarchy. As a result of this analysis, during the second quarter of 2020 the Company recorded impairment charges of $108.9 million related to certain brand/trade names associated with Transamerican Auto Parts which are included in the Aftermarket reporting unit. Further, during the second quarter of 2020, the Company recorded impairment charges of $270.3 million related to goodwill of the Aftermarket reporting unit. Subsequent to the impairment charges recorded in the second quarter, there is no remaining goodwill for the Aftermarket reporting unit. The charges are included in goodwill and other intangible asset impairments on the consolidated statements income. The impairments resulted in a $90.3 million income tax benefit (deferred tax asset) associated with the remaining tax-deductible basis in goodwill and intangibles. In the fourth quarter of 2020, we completed the annual goodwill and indefinite lived intangible asset impairment tests. It was determined that goodwill and the remaining indefinite lived intangible assets were not impaired. Goodwill and other intangible assets, net of accumulated amortization, as of December 31, 2020 and 2019 are as follows (in millions): 2020 2019 Goodwill $ 397.3 $ 659.9 Other intangible assets, net 686.4 830.3 Total goodwill and other intangible assets, net $ 1,083.7 $ 1,490.2 There were no material additions to goodwill and other intangible assets in 2020 or 2019. The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 are as follows (in millions): 2020 2019 Balance as of beginning of year $ 659.9 $ 647.1 Goodwill impairment (270.3) — Goodwill acquired and related adjustments — 14.1 Currency translation effect on foreign goodwill balances 7.7 (1.3) Balance as of end of year $ 397.3 $ 659.9 The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2020 and 2019 are as follows (in millions): ORV/Snowmobiles Motorcycles Global Adjacent Markets Aftermarket Boats Total Polaris Balance as of December 31, 2019 $ 72.0 $ 5.2 $ 85.2 $ 270.4 $ 227.1 $ 659.9 Impairments — — — (270.3) — (270.3) Currency translation effect on foreign goodwill balances 0.9 — 6.9 (0.1) — 7.7 Goodwill 72.9 5.2 92.1 270.3 227.1 667.6 Accumulated goodwill impairment losses* — — — (270.3) — (270.3) Balance as of December 31, 2020 $ 72.9 $ 5.2 $ 92.1 $ — $ 227.1 $ 397.3 *There were no impairment losses prior to 2020 ORV/Snowmobiles Motorcycles Global Adjacent Markets Aftermarket Boats Total Polaris Balance as of December 31, 2018 $ 71.8 $ 3.4 $ 86.8 $ 270.3 $ 214.8 $ 647.1 Goodwill acquired and related adjustments — 1.8 — — 12.3 14.1 Currency translation effect on foreign goodwill balances 0.2 — (1.6) 0.1 — (1.3) Balance as of December 31, 2019 $ 72.0 $ 5.2 $ 85.2 $ 270.4 $ 227.1 $ 659.9 For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2020 and 2019 are as follows (in millions): 2020 2019 Gross Accumulated Gross Accumulated Other intangible assets, beginning $ 956.8 $ (126.5) $ 964.7 $ (94.1) Intangible assets acquired during the period — — 1.0 — Intangible assets disposed of during the period (41.7) 41.7 (7.1) 7.1 Amortization expense — (36.1) — (40.9) Impairments (108.9) — — — Currency translation effect on foreign balances 0.9 0.2 (1.8) 1.4 Other intangible assets, ending $ 807.1 $ (120.7) $ 956.8 $ (126.5) The components of other intangible assets were as follows (in millions): December 31, 2020 Estimated Life Gross Carrying Accumulated Net Non-compete agreements 4 $ 2.6 $ (1.6) $ 1.0 Dealer/customer related 5-20 460.3 (110.8) 349.5 Developed technology 5-7 9.9 (8.3) 1.6 Total amortizable 472.8 (120.7) 352.1 Non-amortizable—brand/trade names 334.3 — 334.3 Total other intangible assets, net $ 807.1 $ (120.7) $ 686.4 December 31, 2019 Estimated Life Gross Carrying Accumulated Net Non-compete agreements 4 $ 2.6 $ (1.0) $ 1.6 Dealer/customer related 5-20 499.5 (116.1) 383.4 Developed technology 5-7 12.7 (9.4) 3.3 Total amortizable 514.8 (126.5) 388.3 Non-amortizable—brand/trade names 442.0 — 442.0 Total other intangible assets, net $ 956.8 $ (126.5) $ 830.3 Amortization expense for intangible assets for the year ended December 31, 2020 and 2019 was $36.1 million and $40.9 million, respectively. Estimated amortization expense for 2021 through 2025 is as follows: 2021, $33.3 million; 2022, $28.3 million; 2023, $25.7 million; 2024, $25.0 million; 2025, $25.0 million; and after 2025, $214.8 million. 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 impairments of intangible assets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income before income taxes was generated from its United States and foreign operations as follows (in millions): For the Years Ended December 31, 2020 2019 2018 United States $ 72.9 $ 344.3 $ 344.7 Foreign 68.5 63.5 84.5 Income before income taxes $ 141.4 $ 407.8 $ 429.2 Components of the Company’s provision for income taxes are as follows (in millions): For the Years Ended December 31, 2020 2019 2018 Current: Federal $ 56.5 $ 46.4 $ 39.0 State 13.4 18.2 3.8 Foreign 27.4 26.8 27.5 Deferred (80.8) (7.5) 23.6 Total provision for income taxes $ 16.5 $ 83.9 $ 93.9 Reconciliation of the Federal statutory income tax rate to the effective tax rate is as follows: For the Years Ended December 31, 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 0.4 2.3 1.9 Domestic manufacturing deduction (2.6) (2.1) (1.4) Research and development tax credit (12.6) (4.0) (3.1) Stock based compensation (0.3) 0.2 (1.4) Valuation allowance 1.7 0.5 0.2 Foreign tax rate differential 5.6 1.7 1.3 Other permanent differences (1.6) 1.0 3.4 Effective income tax rate for continuing operations 11.6 % 20.6 % 21.9 % Undistributed earnings relating to certain non-U.S. subsidiaries of approximately $251.0 million and $188.0 million at December 31, 2020 and 2019, 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. The Company 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 millions): As of December 31, 2020 2019 Deferred income taxes: Inventories $ 37.2 $ 18.5 Accrued expenses 116.5 126.6 Cost in excess of net assets of businesses acquired 42.5 (35.2) Property and equipment (92.7) (88.1) Operating lease assets (30.7) (26.5) Operating lease liabilities 30.9 27.1 Employee compensation and benefits 64.3 61.4 Net operating loss and other loss carryforwards 21.4 20.1 Valuation allowance (16.1) (14.6) Total net deferred income tax asset $ 173.3 $ 89.3 At December 31, 2020, the Company had available unused international and acquired federal net operating loss carryforwards of $62.3 million. The net operating loss carryforwards will expire at various dates from 2021 to 2030, with certain jurisdictions having indefinite carryforward terms. The Company 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. The Company 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, 2020, if recognized, would affect the Company’s effective tax rate. The Company does not anticipate that total unrecognized tax benefits will materially change in the next twelve months. Tax years 2017 through 2020 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 millions): For the Years Ended December 31, 2020 2019 Balance at January 1, $ 24.4 $ 25.5 Gross increases for tax positions of prior years 0.8 1.2 Gross increases for tax positions of current year 2.7 4.0 Decreases due to settlements and other prior year tax positions (4.2) (5.6) Decreases for lapse of statute of limitations (10.5) (0.7) Balance at December 31, 13.2 24.4 Reserves related to potential interest and penalties at December 31, 1.2 3.7 Unrecognized tax benefits at December 31, $ 14.4 $ 28.1 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Shareholders Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Stock repurchase program. The Polaris Board of Directors has authorized the cumulative repurchase of up to 90.5 million shares of the Company’s common stock. As of December 31, 2020, 2.6 million shares remain available for repurchases under the Board’s authorization. The Company has made the following share repurchases (in millions): For the Years Ended December 31, 2020 2019 2018 Total number of shares repurchased and retired 0.6 0.1 3.2 Total investment $ 50.3 $ 8.4 $ 348.7 Stock purchase plan. Polaris maintains an employee stock purchase plan (“Purchase Plan”). A total of 3.0 million 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, 2020, approximately 1.5 million 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, 2020, 2019, and 2018 were as follows: For the Years Ended December 31, 2020 2019 2018 Quarterly dividend declared and paid per common share $ 0.62 $ 0.61 $ 0.60 Total dividends declared and paid per common share $ 2.48 $ 2.44 $ 2.40 On January 28, 2021, the Polaris Board of Directors declared a regular cash dividend of $0.63 per share payable on March 15, 2021 to holders of record of such shares at the close of business on March 1, 2021. Net income per share. Basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period, including shares earned under The Deferred Compensation Plan for Directors (“Director Plan”) and the ESOP and deferred stock units under the 2007 Omnibus Incentive Plan (“Omnibus Plan”). Diluted net income per share is computed under the treasury stock method and is calculated to compute the dilutive effect of outstanding stock options and certain share-based awards issued under the Omnibus Plan. A reconciliation of these amounts is as follows (in millions): For the Years Ended December 31, 2020 2019 2018 Weighted average number of common shares outstanding 61.5 61.1 62.2 Director Plan and deferred stock units 0.2 0.2 0.2 ESOP 0.2 0.1 0.1 Common shares outstanding—basic 61.9 61.4 62.5 Dilutive effect of restricted stock awards 0.5 0.6 0.7 Dilutive effect of stock option awards 0.2 0.3 0.7 Common and potential common shares outstanding—diluted 62.6 62.3 63.9 During 2020, 2019 and 2018, the number of options that were not included in the computation of diluted net income per share because the option exercise price was greater than the market price, and therefore, the effect would have been anti-dilutive, was 4.4 million, 3.8 million and 1.7 million, respectively. Accumulated other comprehensive loss. Changes in the accumulated other comprehensive loss balance are as follows (in millions): Foreign Currency Translation Cash Flow Hedging Derivatives Retirement Plan and Other Activity Accumulated Other Comprehensive Loss Balance as of December 31, 2019 $ (63.3) $ (6.1) (3.3) $ (72.7) Reclassification to the income statement — 4.2 (0.5) 3.7 Change in fair value 24.2 (13.6) — 10.6 Balance as of December 31, 2020 $ (39.1) $ (15.5) $ (3.8) $ (58.4) The table below provides 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 retirement plan activity for the years ended December 31, 2020 and 2019 (in millions): 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, 2020 2019 Foreign currency contracts Other (income) expense, net $ 4.3 $ 3.2 Foreign currency contracts Cost of sales (2.4) 0.9 Interest rate contracts Interest expense (6.1) (0.9) Retirement plan activity Operating expenses 0.5 (0.2) Total $ (3.7) $ 3.0 The net amount of the existing gains or losses at December 31, 2020 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 the Company’s derivative activities. |
Financial Services Arrangements
Financial Services Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
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 $59.4 million at December 31, 2020 is accounted for under the equity method, and is recorded in investment in finance affiliate in the accompanying consolidated balance sheets. At December 31, 2020, the outstanding amount of net receivables financed for dealers under this arrangement was $771.5 million, which included $392.7 million in the Polaris Acceptance portfolio and $378.8 million 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 2020, the potential 15 percent aggregate repurchase obligation was approximately $198.3 million. 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 millions): For the Years Ended December 31, 2020 2019 2018 Revenues $ 44.7 $ 79.3 $ 72.1 Interest and operating expenses 7.6 14.4 11.8 Net income $ 37.1 $ 64.9 $ 60.3 As of December 31, 2020 2019 Finance receivables, net $ 392.7 $ 687.7 Other assets 13.9 0.1 Total Assets $ 406.6 $ 687.8 Notes payable $ 248.4 $ 463.1 Other liabilities 39.4 3.4 Partners’ capital 118.8 221.3 Total Liabilities and Partners’ Capital $ 406.6 $ 687.8 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, 2020, the potential aggregate repurchase obligation was approximately $135.7 million. 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, 2020 | |
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 $7.5 million of investments as of December 31, 2020 and no such investments as of December 31, 2019. These investments are recorded as a component of other long-term assets in the accompanying consolidated balance sheets. 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, the Company evaluates investments in nonmarketable securities for impairment, utilizing level 3 fair value inputs. 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 $27.0 million of costs, including impairment, associated with the wind-down of EPPL for the year ended December 31, 2018. The investment was fully impaired as of December 31, 2018. 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. 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, extinguishing the Company’s investment. During the first quarter of 2018, the Company received additional distributions from Brammo and recognized a gain of $13.5 million, which is included in Other (income) expense on the consolidated statements of income. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain manufacturing facilities, retail stores, warehouses, distribution centers, office space, land, and equipment. 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 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 millions): As of December 31, Classification 2020 2019 Assets Operating lease assets Operating lease assets $ 125.4 $ 110.2 Finance lease assets Property and equipment, net (1) 11.6 12.7 Total leased assets $ 137.0 $ 122.9 Liabilities Current Operating lease liabilities Current operating lease liabilities $ 34.7 $ 34.9 Finance lease liabilities Current portion of debt, finance lease obligations and notes payable 1.5 1.3 Long-term Operating lease liabilities Long-term operating lease liabilities 92.3 77.9 Finance lease liabilities Finance lease obligations 14.7 14.8 Total lease liabilities $ 143.2 $ 128.9 (1) Finance lease assets are recorded net of accumulated amortization of $9.5 million and $7.8 million as of December 31, 2020 and 2019, respectively. For the Year Ended December 31, Lease Cost Classification 2020 2019 Operating lease cost (1) Operating expenses and cost of sales $ 45.4 $ 42.5 Finance lease cost Amortization of leased assets Operating expenses and cost of sales 1.5 1.5 Interest on lease liabilities Interest expense 0.9 0.9 Sublease income Other (income) expense, net (2.6) (2.4) Total lease cost $ 45.2 $ 42.5 (1) Includes short-term leases and variable lease costs, which are immaterial. Maturity of Lease Liabilities Operating Leases (1) Finance Leases Total 2021 $ 38.1 $ 2.3 $ 40.4 2022 29.5 2.3 31.8 2023 23.3 2.3 25.6 2024 16.2 2.3 18.5 2025 11.9 2.3 14.2 Thereafter 16.2 8.6 24.8 Total lease payments $ 135.2 $ 20.1 $ 155.3 Less: interest 8.2 3.9 Present value of lease payments $ 127.0 $ 16.2 (1) Operating lease payments include $14.7 million 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. As of December 31, Lease Term and Discount Rate 2020 2019 Weighted-average remaining lease term (years) Operating leases 4.88 4.47 Finance leases 8.52 9.48 Weighted-average discount rate Operating leases 2.71 % 3.29 % Finance leases 5.20 % 5.18 % For the Year Ended December 31, Other Information 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 45.3 $ 42.7 Operating cash flows from finance leases 0.8 0.9 Financing cash flows from finance leases 1.4 1.3 Leased assets obtained in exchange for new operating lease liabilities 47.7 28.8 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019, the Company had an accrual of $70.7 million and $57.0 million, respectively, for the probable payment of pending claims related to product liability litigation 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, and product liability claims. In addition, as of December 31, 2020, 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 Polaris violated various California consumer protection laws related to rollover protection structure certification. 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 on the putative class actions. In the opinion of management, it is presently 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 the control of the Company. Accordingly, the Company’s loss reserve may change from time to time, and actual losses could exceed the amounts accrued by an amount that could be material to the Company’s consolidated financial position, results of operations, or cash flows in any particular reporting period. Regulatory. In the normal course of business, the Company’s products are subject to extensive laws and regulations relating to safety, environmental and other regulations promulgated by the United States federal government and individual states, as well as international regulatory authorities. Failure to comply with applicable regulations could result in fines, penalties or other costs. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
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 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. The decision of whether and when to execute derivative instruments, along with the duration of the instrument, may 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. The Company does not use any financial contracts for trading purposes. At December 31, 2020 and 2019, the Company had the following open foreign currency contracts (in millions): December 31, 2020 December 31, 2019 Foreign Currency Notional Amounts Net Unrealized Notional Amounts Net Unrealized Australian Dollar $ 26.0 $ (0.5) $ 16.0 $ (0.1) Canadian Dollar 169.8 (2.8) 101.4 (1.1) Mexican Peso 13.5 1.0 17.0 1.1 Total $ 209.3 $ (2.3) $ 134.4 $ (0.1) These contracts, with maturities through December 2021, 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, 2020 and 2019, Polaris had the following open interest rate swap contracts (in millions): December 31, 2020 December 31, 2019 Effective Date Termination Date Notional Amounts Net Unrealized Gain (Loss) Notional Amounts Net Unrealized Gain (Loss) May 2, 2018 May 4, 2021 $ 25.0 $ (0.2) $ 25.0 $ (0.1) September 30, 2019 September 30, 2023 150.0 (11.3) 150.0 (7.7) May 3, 2019 May 3, 2020 — — 100.0 (0.2) March 3, 2020 February 28, 2023 400.0 (6.6) — — Total $ 575.0 $ (18.1) $ 275.0 $ (8.0) 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, 2020 and 2019 (in millions): Carrying Values of Derivative Instruments as of December 31, 2020 Fair Value— Fair Value— Derivative Net Derivatives designated as hedging instruments Foreign exchange contracts $ 1.0 $ (3.3) $ (2.3) Interest rate contracts — (18.1) (18.1) Total derivatives designated as hedging instruments $ 1.0 $ (21.4) $ (20.4) Carrying Values of Derivative Instruments as of December 31, 2019 Fair Value— Fair Value— Derivative Net Derivatives designated as hedging instruments Foreign exchange contracts $ 1.1 $ (1.2) $ (0.1) Interest rate contracts — (8.0) (8.0) Total derivatives designated as hedging instruments $ 1.1 $ (9.2) $ (8.1) Assets are included in prepaid expenses and other and liabilities are included in other accrued expenses on the accompanying consolidated balance sheets. Gains and losses on derivative instruments 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, 2020 and 2019 was $(9.4) million and $(6.5) million, respectively. See Note 9 for information about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the income statement for derivative instruments designated as hedging instruments. The ineffective portion of foreign currency contracts was not material for the years ended December 31, 2020 and 2019. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
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. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. 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. Beginning in the first quarter of 2020, certain costs, primarily incentive-based compensation costs, previously classified as "Corporate" in the Company's segment gross profit results were allocated to the respective operating segments results. The comparative 2019 gross profit results for ORV/Snowmobiles, Motorcycles, Global Adjacent Markets, Aftermarket, Boats, and Corporate were reclassified for comparability. However, the 2018 gross profit results presented below have not been reclassified to reallocate the costs discussed above and are therefore not comparable to 2020 and 2019 results. The ORV/Snowmobiles reporting segment includes the aggregated results of the Company’s 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, including certain 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 millions): For the Years Ended December 31, 2020 2019 2018 Sales ORV/Snowmobiles $ 4,533.3 $ 4,209.1 $ 3,919.4 Motorcycles 581.7 584.1 545.6 Global Adjacent Markets 424.6 461.3 444.6 Aftermarket 884.9 906.7 889.2 Boats 603.4 621.3 279.7 Total sales $ 7,027.9 $ 6,782.5 $ 6,078.5 Gross profit ORV/Snowmobiles 1,218.4 1,145.5 1,113.9 Motorcycles 20.0 30.0 63.0 Global Adjacent Markets 116.4 128.8 116.6 Aftermarket 222.8 222.7 234.4 Boats 116.4 124.6 46.3 Corporate 16.2 (2.8) (73.0) Total gross profit $ 1,710.2 $ 1,648.8 $ 1,501.2 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
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 Add (Deduct) (1) Balance at (In millions) 2018: Deducted from asset accounts—Allowance for doubtful accounts receivable $ 10.9 $ 1.1 $ 0.1 $ (2.6) $ 9.5 2019: Deducted from asset accounts—Allowance for doubtful accounts receivable $ 9.5 $ 0.7 $ — $ (0.9) $ 9.3 2020: Deducted from asset accounts—Allowance for doubtful accounts receivable $ 9.3 $ 1.3 $ — $ (5.3) $ 5.3 (1) Uncollectible accounts receivable written off, net of recoveries. Inventory Reserve Balance at Additions Additions Other Changes Add (Deduct) (2) Balance at (In millions) 2018: Deducted from asset accounts—Allowance for obsolete inventory $ 47.1 $ 11.6 $ 1.9 $ (12.3) $ 48.3 2019: Deducted from asset accounts—Allowance for obsolete inventory $ 48.3 $ 21.9 $ 0.5 $ (14.0) $ 56.7 2020: Deducted from asset accounts—Allowance for obsolete inventory $ 56.7 $ 27.5 $ — $ (16.5) $ 67.7 (2) Inventory disposals, net of recoveries. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Reclassifications | 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 segment gross profit amounts have been made to conform to the current year presentation. The reclassifications had no impact on the consolidated balance sheets, statements of income, comprehensive income, equity, or cash flows, as previously reported. Refer to Note 15 for additional information. |
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. Actual 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 millions): Fair Value Measurements as of December 31, 2020 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48.3 $ 48.3 $ — $ — Total assets at fair value $ 48.3 $ 48.3 $ — $ — Non-qualified deferred compensation liabilities $ (48.3) $ (48.3) $ — $ — Foreign exchange contracts, net (2.3) — (2.3) — Interest rate contracts, net (18.1) — (18.1) — Total liabilities at fair value $ (68.7) $ (48.3) $ (20.4) $ — Fair Value Measurements as of December 31, 2019 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48.9 $ 48.9 $ — $ — Total assets at fair value $ 48.9 $ 48.9 $ — $ — Non-qualified deferred compensation liabilities $ (48.9) $ (48.9) $ — $ — Foreign exchange contracts, net (0.1) — (0.1) — Interest rate contracts, net (8.0) — (8.0) — Total liabilities at fair value $ (57.0) $ (48.9) $ (8.1) $ — 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, 2020 and December 31, 2019, the fair value of the Company’s long-term debt, finance lease obligations and notes payable was approximately $1,552.3 million and $1,769.3 million, 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 $1,450.7 million and $1,693.5 million as of December 31, 2020 and December 31, 2019, respectively. The Company 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. The Company 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. The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. Such investments consist principally of money market mutual funds. |
Allowance for Doubtful Accounts | Allowance for doubtful accounts. The Company’s 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 collection experience, the age of the accounts receivables, credit quality of our customers, current and expected economic conditions, and other factors that may affect our ability to collect from customers. |
Inventories | Inventories. Inventory costs include material, labor and manufacturing overhead costs, including depreciation expense associated with the manufacture and distribution of the Company’s products. Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. |
Investment in Affiliate | Investment in finance affiliate. The caption Investment in finance affiliate in the consolidated balance sheets represents the Company’s fifty percent equity interest in Polaris Acceptance, a partnership agreement between Wells Fargo Commercial Distribution Finance Corporation and one of the Company’s wholly-owned subsidiaries. Polaris Acceptance provides floor plan financing to Polaris dealers in the United States. The Company’s investment in Polaris Acceptance is accounted for under the equity method, and is recorded as investment in finance affiliate in the consolidated balance sheets. The Company’s 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.Investment in other affiliates. The Company’s 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, the Company assesses the level of influence in determining whether to account for the investment under the cost method or equity method. For equity method investments, the Company’s proportionate share of income or losses is recorded in the consolidated statements of income. The Company 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. |
Property and Equipment | Property and equipment. Property and equipment is stated at cost. Depreciation is provided using the straight-line method over the estimated useful life of the respective assets, ranging from 10-40 years for buildings and improvements and from 1-7 years for equipment and tooling. Depreciation of assets recorded under finance leases is included with depreciation expense. Fully depreciated tooling is eliminated from the accounting records annually. |
Goodwill and Other Intangible Assets | Goodwill and other intangible assets. Goodwill represents the excess of the purchase price 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 the Company considers 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 the Company’s 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. 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. Determining the fair value of the reporting units requires the use of significant judgment, including discount rates, assumptions in the Company’s long-term business plan about future revenues and expenses, capital expenditures, and changes in working capital, which are dependent on internal forecasts, estimation of long-term growth for each reporting unit, and determination of the discount rate. These plans take into consideration numerous factors including historical experience, anticipated future economic conditions, including the impacts from the COVID-19 pandemic, changes in raw material prices and growth expectations for the industries and end markets in which the Company participates. For its annual test, the Company completed a qualitative assessment for the ORV, Snow, Motorcycles and Global Adjacent Markets reporting units and a quantitative goodwill test for the Boats reporting unit. No assessment was performed for the Aftermarket reporting unit as it did not have a goodwill balance as of the annual testing date. The Company’s primary identifiable intangible assets include: dealer/customer relationships, brand/trade names, developed technology, and non-compete agreements. Identifiable intangible assets 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. |
Revenue Recognition | Revenue recognition. With respect to wholegood vehicles, boats, and parts, garments and accessories (“PG&A”), 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. When the right of return exists, we adjust the consideration for the estimated effect of returns. We estimate expected returns based on historical sales levels, the timing and magnitude of historical sales return levels as a percent of sales, type of product, type of customer and a projection of this experience into the future. Historically, product returns, whether in the normal course of business or resulting from repurchases made under floor plan financing programs, 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. Refer to Note 2 for additional information. |
Sales Promotions and Incentives | Sales promotions and incentives. The Company 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. 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 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 the Company’s dealers or distributors and, therefore, reduce the amount of sales the Company recognizes. The portion of the invoiced sales price estimated as the holdback is recognized as “dealer holdback” liability on the Company’s consolidated balance sheet until paid or forfeited. The minimal holdback adjustments in the estimated holdback liability due to forfeitures are recognized in net sales. Payments are made to dealers or distributors at various times during the year subject to previously established criteria. |
Shipping and Handling Costs | Shipping and handling costs. The Company records shipping and handling costs as a component of cost of sales when control has transferred to the customer. |
Research and Development Expenses | Research and development expenses. The Company records research and development expenses in the period in which they are incurred as a component of operating expenses. |
Advertising Expenses | Advertising expenses. The Company records advertising expenses as a component of selling and marketing expenses in the period in which they are incurred. |
Product Warranties | Product warranties. The Company typically provides a limited warranty for its vehicles and boats for a period of six months to ten years, depending on the product. The Company 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. The Company’s standard warranties require the Company, generally 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, impacts on product usage (including weather), product recalls and changes in sales volume. |
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 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. |
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 yield, 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 |
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. The Company does not use any financial contracts for trading purposes. The Company 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. |
Foreign Currency Translation | Foreign currency translation. The functional currency for each of the Company’s foreign subsidiaries is their respective local currencies. The assets and liabilities in all of the Company’s 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, net in the shareholders’ equity section of the accompanying consolidated balance sheets. Revenues and expenses in all of the Company’s 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. 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 . Topic 326 replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost. The Company adopted Topic 326 on January 1, 2020, using a modified retrospective transition method. The adoption of Topic 326 did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows. Fair Value Measurement. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which amends ASC 820 to eliminate, modify, and add certain disclosure requirements for fair value measurements. The Company adopted ASU 2018-13 on January 1, 2020. The adoption of ASU 2018-13 did not have a material impact on the Company’s disclosures. Income Taxes. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for incomes taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify the accounting for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for fiscal years and interim periods beginning after December 15, 2020, and is effective for the Company’s fiscal year beginning January 1, 2021. The adoption of the ASU is not expected to have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows. Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides practical expedients and exception for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The FASB also issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope in January 2021, which adds implementation guidance to clarify which optional expedients in Topic 848 may be applied to derivative instruments that do not reference LIBOR or a reference rate that is expected to be discontinued, but that are being modified as a result of the discounting transition. The ASUs may be applied through December 31, 2022 and are applicable to our contracts and hedging relationships that reference LIBOR. We are still evaluating whether to apply any of the expedients and/or exceptions included in these ASUs. There are no other new accounting pronouncements that are expected to have a significant impact on the Company’s consolidated financial statements. |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Activity in the limited warranty reserve | The activity in the warranty reserve during the periods presented was as follows (in millions): For the Years Ended December 31, 2020 2019 2018 Balance at beginning of year $ 136.2 $ 121.8 $ 123.8 Additions to reserve related to acquisitions — 8.8 19.5 Additions charged to expense 123.7 122.9 105.0 Warranty claims paid, net (119.1) (117.3) (126.5) Balance at end of year $ 140.8 $ 136.2 $ 121.8 |
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 millions): Fair Value Measurements as of December 31, 2020 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48.3 $ 48.3 $ — $ — Total assets at fair value $ 48.3 $ 48.3 $ — $ — Non-qualified deferred compensation liabilities $ (48.3) $ (48.3) $ — $ — Foreign exchange contracts, net (2.3) — (2.3) — Interest rate contracts, net (18.1) — (18.1) — Total liabilities at fair value $ (68.7) $ (48.3) $ (20.4) $ — Fair Value Measurements as of December 31, 2019 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 48.9 $ 48.9 $ — $ — Total assets at fair value $ 48.9 $ 48.9 $ — $ — Non-qualified deferred compensation liabilities $ (48.9) $ (48.9) $ — $ — Foreign exchange contracts, net (0.1) — (0.1) — Interest rate contracts, net (8.0) — (8.0) — Total liabilities at fair value $ (57.0) $ (48.9) $ (8.1) $ — |
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 millions): December 31, 2020 December 31, 2019 Raw materials and purchased components $ 533.5 $ 344.6 Service parts, garments and accessories 330.5 357.0 Finished goods 381.3 476.2 Less: reserves (67.7) (56.7) Inventories $ 1,177.6 $ 1,121.1 |
Schedule of activity in the warranty reserve | The activity in the deferred revenue reserve during the periods presented was as follows (in millions): For the Years Ended December 31, 2020 2019 2018 Balance at beginning of year $ 81.6 $ 59.9 $ 45.8 New contracts sold 60.4 49.6 35.6 Less: reductions for revenue recognized (34.9) (27.9) (21.5) Balance at end of year (1) $ 107.1 $ 81.6 $ 59.9 (1) The unamortized ESC premiums (deferred revenue) recorded in other current liabilities totaled $37.8 million and $34.3 million at December 31, 2020 and 2019, respectively, while the amount recorded in other long-term liabilities totaled $69.3 million and $47.3 million at December 31, 2020 and 2019, respectively. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Disaggregation of revenue | The following tables disaggregate the Company’s revenue by major product type and geography (in millions): For the Year Ended December 31, 2020 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total Revenue by product type Wholegoods $ 3,612.9 $ 493.4 $ 343.6 $ — $ 603.4 $ 5,053.3 PG&A 920.4 88.3 81.0 884.9 — 1,974.6 Total revenue $ 4,533.3 $ 581.7 $ 424.6 $ 884.9 $ 603.4 $ 7,027.9 Revenue by geography United States $ 3,749.9 $ 397.0 $ 208.3 $ 843.5 $ 592.4 $ 5,791.1 Canada 319.7 21.2 2.8 41.4 11.0 396.1 EMEA 307.9 96.7 210.2 — — 614.8 APLA 155.8 66.8 3.3 — — 225.9 Total revenue $ 4,533.3 $ 581.7 $ 424.6 $ 884.9 $ 603.4 $ 7,027.9 |
Schedule of activity in the warranty reserve | The activity in the deferred revenue reserve during the periods presented was as follows (in millions): For the Years Ended December 31, 2020 2019 2018 Balance at beginning of year $ 81.6 $ 59.9 $ 45.8 New contracts sold 60.4 49.6 35.6 Less: reductions for revenue recognized (34.9) (27.9) (21.5) Balance at end of year (1) $ 107.1 $ 81.6 $ 59.9 (1) The unamortized ESC premiums (deferred revenue) recorded in other current liabilities totaled $37.8 million and $34.3 million at December 31, 2020 and 2019, respectively, while the amount recorded in other long-term liabilities totaled $69.3 million and $47.3 million at December 31, 2020 and 2019, respectively. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 millions): Cash and cash equivalents $ 16.5 Trade receivables 17.5 Inventory 39.9 Other current assets 4.5 Property, plant and equipment 35.3 Customer relationships 341.1 Trademarks / trade names 210.7 Non-compete agreements 2.6 Goodwill 222.4 Accounts payable (30.0) Other liabilities assumed (37.3) Total fair value of net assets acquired 823.2 Less cash acquired (16.5) Total consideration for acquisition, less cash acquired $ 806.7 |
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 2018 (in millions, except per share data): For the Years Ended December 31, 2020 2019 2018 Net sales $ 7,027.9 $ 6,782.5 $ 6,429.7 Net income attributable to Polaris Inc. 124.8 328.8 360.7 Basic earnings per share $ 2.02 $ 5.35 $ 5.77 Diluted earnings per common share $ 1.99 $ 5.28 $ 5.64 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of share-based compensation expenses | Total share-based compensation expenses were as follows (in millions): For the Years Ended December 31, 2020 2019 2018 Option awards $ 13.8 $ 21.8 $ 23.4 Other share-based awards 40.9 48.0 28.5 Total share-based compensation before tax 54.7 69.8 51.9 Tax benefit 13.1 16.6 12.3 Total share-based compensation expense included in net income $ 41.6 $ 53.2 $ 39.6 |
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, 2020: Omnibus Plan Options Outstanding Weighted Balance as of December 31, 2019 5,654,258 $ 96.83 Granted 606,060 93.88 Exercised (428,617) 72.49 Forfeited/Expired (729,405) 95.62 Balance as of December 31, 2020 5,102,296 $ 98.70 Options exercisable as of December 31, 2020 3,398,589 $ 102.23 |
Schedule of weighted average fair value | The following assumptions were used to estimate the weighted average fair value of options of $21.76, $19.54 and $26.50 granted during the years ended December 31, 2020, 2019 and 2018, respectively: For the Years Ended December 31, 2020 2019 2018 Weighted-average volatility 34% 32% 30% Expected dividend yield 2.6% 2.9% 2.1% Expected term (in years) 4.5 4.5 4.4 Weighted average risk free interest rate 1.4% 2.5% 2.6% |
Schedule of restricted stock activity | The following table summarizes restricted stock activity for the year ended December 31, 2020: Shares Weighted Balance as of December 31, 2019 1,386,009 $ 96.92 Granted 391,206 92.23 Vested (423,154) 87.93 Forfeited/Cancelled (210,985) 99.28 Balance as of December 31, 2020 1,143,076 $ 98.20 Expected to vest as of December 31, 2020 1,135,950 $ 98.12 |
Financing Agreement (Tables)
Financing Agreement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 millions): Average interest rate at December 31, 2020 Maturity December 31, 2020 December 31, 2019 Revolving loan facility — July 2023 $ — $ 75.1 Term loan facility 1.40% July 2023 940.0 1,000.0 Senior notes—fixed rate 4.60% May 2021 75.0 75.0 Senior notes—fixed rate — December 2020 — 100.0 Senior notes—fixed rate 4.23% July 2028 350.0 350.0 Finance lease obligations 5.20% Various through 2029 16.2 16.1 Notes payable and other 4.24% Various through 2030 75.0 81.4 Debt issuance costs (5.5) (4.1) Total debt, finance lease obligations, and notes payable $ 1,450.7 $ 1,693.5 Less: current maturities 142.1 166.7 Total long-term debt, finance lease obligations, and notes payable $ 1,308.6 $ 1,526.8 |
Summary of Activity Under Credit Arrangements, Excluding Acquired Borrowings | The following summarizes activity under Polaris’ credit arrangements (in millions): 2020 2019 2018 Total borrowings at December 31 $ 1,365.0 $ 1,600.1 $ 1,862.6 Average outstanding borrowings during year $ 1,879.7 $ 1,912.0 $ 1,474.5 Maximum outstanding borrowings during year $ 2,370.6 $ 2,127.9 $ 1,999.7 Weighted-average interest rate at December 31 2.30% 3.29% 3.64% |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 are as follows (in millions): 2020 2019 Goodwill $ 397.3 $ 659.9 Other intangible assets, net 686.4 830.3 Total goodwill and other intangible assets, net $ 1,083.7 $ 1,490.2 |
Schedule of changes in carrying amount of goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 are as follows (in millions): 2020 2019 Balance as of beginning of year $ 659.9 $ 647.1 Goodwill impairment (270.3) — Goodwill acquired and related adjustments — 14.1 Currency translation effect on foreign goodwill balances 7.7 (1.3) Balance as of end of year $ 397.3 $ 659.9 The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2020 and 2019 are as follows (in millions): ORV/Snowmobiles Motorcycles Global Adjacent Markets Aftermarket Boats Total Polaris Balance as of December 31, 2019 $ 72.0 $ 5.2 $ 85.2 $ 270.4 $ 227.1 $ 659.9 Impairments — — — (270.3) — (270.3) Currency translation effect on foreign goodwill balances 0.9 — 6.9 (0.1) — 7.7 Goodwill 72.9 5.2 92.1 270.3 227.1 667.6 Accumulated goodwill impairment losses* — — — (270.3) — (270.3) Balance as of December 31, 2020 $ 72.9 $ 5.2 $ 92.1 $ — $ 227.1 $ 397.3 *There were no impairment losses prior to 2020 ORV/Snowmobiles Motorcycles Global Adjacent Markets Aftermarket Boats Total Polaris Balance as of December 31, 2018 $ 71.8 $ 3.4 $ 86.8 $ 270.3 $ 214.8 $ 647.1 Goodwill acquired and related adjustments — 1.8 — — 12.3 14.1 Currency translation effect on foreign goodwill balances 0.2 — (1.6) 0.1 — (1.3) Balance as of December 31, 2019 $ 72.0 $ 5.2 $ 85.2 $ 270.4 $ 227.1 $ 659.9 |
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, 2020 and 2019 are as follows (in millions): 2020 2019 Gross Accumulated Gross Accumulated Other intangible assets, beginning $ 956.8 $ (126.5) $ 964.7 $ (94.1) Intangible assets acquired during the period — — 1.0 — Intangible assets disposed of during the period (41.7) 41.7 (7.1) 7.1 Amortization expense — (36.1) — (40.9) Impairments (108.9) — — — Currency translation effect on foreign balances 0.9 0.2 (1.8) 1.4 Other intangible assets, ending $ 807.1 $ (120.7) $ 956.8 $ (126.5) |
Schedule of components of other intangible assets | The components of other intangible assets were as follows (in millions): December 31, 2020 Estimated Life Gross Carrying Accumulated Net Non-compete agreements 4 $ 2.6 $ (1.6) $ 1.0 Dealer/customer related 5-20 460.3 (110.8) 349.5 Developed technology 5-7 9.9 (8.3) 1.6 Total amortizable 472.8 (120.7) 352.1 Non-amortizable—brand/trade names 334.3 — 334.3 Total other intangible assets, net $ 807.1 $ (120.7) $ 686.4 December 31, 2019 Estimated Life Gross Carrying Accumulated Net Non-compete agreements 4 $ 2.6 $ (1.0) $ 1.6 Dealer/customer related 5-20 499.5 (116.1) 383.4 Developed technology 5-7 12.7 (9.4) 3.3 Total amortizable 514.8 (126.5) 388.3 Non-amortizable—brand/trade names 442.0 — 442.0 Total other intangible assets, net $ 956.8 $ (126.5) $ 830.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Before Income Taxes | The Company’s income before income taxes was generated from its United States and foreign operations as follows (in millions): For the Years Ended December 31, 2020 2019 2018 United States $ 72.9 $ 344.3 $ 344.7 Foreign 68.5 63.5 84.5 Income before income taxes $ 141.4 $ 407.8 $ 429.2 |
Components of Provision for Income Taxes | Components of the Company’s provision for income taxes are as follows (in millions): For the Years Ended December 31, 2020 2019 2018 Current: Federal $ 56.5 $ 46.4 $ 39.0 State 13.4 18.2 3.8 Foreign 27.4 26.8 27.5 Deferred (80.8) (7.5) 23.6 Total provision for income taxes $ 16.5 $ 83.9 $ 93.9 |
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, 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 0.4 2.3 1.9 Domestic manufacturing deduction (2.6) (2.1) (1.4) Research and development tax credit (12.6) (4.0) (3.1) Stock based compensation (0.3) 0.2 (1.4) Valuation allowance 1.7 0.5 0.2 Foreign tax rate differential 5.6 1.7 1.3 Other permanent differences (1.6) 1.0 3.4 Effective income tax rate for continuing operations 11.6 % 20.6 % 21.9 % |
Net Deferred Income Taxes | The net deferred income taxes consist of the following (in millions): As of December 31, 2020 2019 Deferred income taxes: Inventories $ 37.2 $ 18.5 Accrued expenses 116.5 126.6 Cost in excess of net assets of businesses acquired 42.5 (35.2) Property and equipment (92.7) (88.1) Operating lease assets (30.7) (26.5) Operating lease liabilities 30.9 27.1 Employee compensation and benefits 64.3 61.4 Net operating loss and other loss carryforwards 21.4 20.1 Valuation allowance (16.1) (14.6) Total net deferred income tax asset $ 173.3 $ 89.3 |
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 millions): For the Years Ended December 31, 2020 2019 Balance at January 1, $ 24.4 $ 25.5 Gross increases for tax positions of prior years 0.8 1.2 Gross increases for tax positions of current year 2.7 4.0 Decreases due to settlements and other prior year tax positions (4.2) (5.6) Decreases for lapse of statute of limitations (10.5) (0.7) Balance at December 31, 13.2 24.4 Reserves related to potential interest and penalties at December 31, 1.2 3.7 Unrecognized tax benefits at December 31, $ 14.4 $ 28.1 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Shareholders Equity [Abstract] | |
Schedule of share repurchases | The Company has made the following share repurchases (in millions): For the Years Ended December 31, 2020 2019 2018 Total number of shares repurchased and retired 0.6 0.1 3.2 Total investment $ 50.3 $ 8.4 $ 348.7 |
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, 2020, 2019, and 2018 were as follows: For the Years Ended December 31, 2020 2019 2018 Quarterly dividend declared and paid per common share $ 0.62 $ 0.61 $ 0.60 Total dividends declared and paid per common share $ 2.48 $ 2.44 $ 2.40 |
Schedule of reconciliation of weighted average number of shares | A reconciliation of these amounts is as follows (in millions): For the Years Ended December 31, 2020 2019 2018 Weighted average number of common shares outstanding 61.5 61.1 62.2 Director Plan and deferred stock units 0.2 0.2 0.2 ESOP 0.2 0.1 0.1 Common shares outstanding—basic 61.9 61.4 62.5 Dilutive effect of restricted stock awards 0.5 0.6 0.7 Dilutive effect of stock option awards 0.2 0.3 0.7 Common and potential common shares outstanding—diluted 62.6 62.3 63.9 |
Schedule of changes in accumulated other comprehensive income (loss) balances | Changes in the accumulated other comprehensive loss balance are as follows (in millions): Foreign Currency Translation Cash Flow Hedging Derivatives Retirement Plan and Other Activity Accumulated Other Comprehensive Loss Balance as of December 31, 2019 $ (63.3) $ (6.1) (3.3) $ (72.7) Reclassification to the income statement — 4.2 (0.5) 3.7 Change in fair value 24.2 (13.6) — 10.6 Balance as of December 31, 2020 $ (39.1) $ (15.5) $ (3.8) $ (58.4) |
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 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 retirement plan activity for the years ended December 31, 2020 and 2019 (in millions): 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, 2020 2019 Foreign currency contracts Other (income) expense, net $ 4.3 $ 3.2 Foreign currency contracts Cost of sales (2.4) 0.9 Interest rate contracts Interest expense (6.1) (0.9) Retirement plan activity Operating expenses 0.5 (0.2) Total $ (3.7) $ 3.0 |
Financial Services Arrangemen_2
Financial Services Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 millions): For the Years Ended December 31, 2020 2019 2018 Revenues $ 44.7 $ 79.3 $ 72.1 Interest and operating expenses 7.6 14.4 11.8 Net income $ 37.1 $ 64.9 $ 60.3 As of December 31, 2020 2019 Finance receivables, net $ 392.7 $ 687.7 Other assets 13.9 0.1 Total Assets $ 406.6 $ 687.8 Notes payable $ 248.4 $ 463.1 Other liabilities 39.4 3.4 Partners’ capital 118.8 221.3 Total Liabilities and Partners’ Capital $ 406.6 $ 687.8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of company lease information | Information on the Company’s leases is summarized as follows (in millions): As of December 31, Classification 2020 2019 Assets Operating lease assets Operating lease assets $ 125.4 $ 110.2 Finance lease assets Property and equipment, net (1) 11.6 12.7 Total leased assets $ 137.0 $ 122.9 Liabilities Current Operating lease liabilities Current operating lease liabilities $ 34.7 $ 34.9 Finance lease liabilities Current portion of debt, finance lease obligations and notes payable 1.5 1.3 Long-term Operating lease liabilities Long-term operating lease liabilities 92.3 77.9 Finance lease liabilities Finance lease obligations 14.7 14.8 Total lease liabilities $ 143.2 $ 128.9 (1) Finance lease assets are recorded net of accumulated amortization of $9.5 million and $7.8 million as of December 31, 2020 and 2019, respectively. |
Schedule of lease cost | For the Year Ended December 31, Lease Cost Classification 2020 2019 Operating lease cost (1) Operating expenses and cost of sales $ 45.4 $ 42.5 Finance lease cost Amortization of leased assets Operating expenses and cost of sales 1.5 1.5 Interest on lease liabilities Interest expense 0.9 0.9 Sublease income Other (income) expense, net (2.6) (2.4) Total lease cost $ 45.2 $ 42.5 (1) Includes short-term leases and variable lease costs, which are immaterial. As of December 31, Lease Term and Discount Rate 2020 2019 Weighted-average remaining lease term (years) Operating leases 4.88 4.47 Finance leases 8.52 9.48 Weighted-average discount rate Operating leases 2.71 % 3.29 % Finance leases 5.20 % 5.18 % For the Year Ended December 31, Other Information 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 45.3 $ 42.7 Operating cash flows from finance leases 0.8 0.9 Financing cash flows from finance leases 1.4 1.3 Leased assets obtained in exchange for new operating lease liabilities 47.7 28.8 |
Schedule of finance lease liability | Maturity of Lease Liabilities Operating Leases (1) Finance Leases Total 2021 $ 38.1 $ 2.3 $ 40.4 2022 29.5 2.3 31.8 2023 23.3 2.3 25.6 2024 16.2 2.3 18.5 2025 11.9 2.3 14.2 Thereafter 16.2 8.6 24.8 Total lease payments $ 135.2 $ 20.1 $ 155.3 Less: interest 8.2 3.9 Present value of lease payments $ 127.0 $ 16.2 (1) Operating lease payments include $14.7 million 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, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of open foreign currency contracts | At December 31, 2020 and 2019, the Company had the following open foreign currency contracts (in millions): December 31, 2020 December 31, 2019 Foreign Currency Notional Amounts Net Unrealized Notional Amounts Net Unrealized Australian Dollar $ 26.0 $ (0.5) $ 16.0 $ (0.1) Canadian Dollar 169.8 (2.8) 101.4 (1.1) Mexican Peso 13.5 1.0 17.0 1.1 Total $ 209.3 $ (2.3) $ 134.4 $ (0.1) |
Schedule of open interest rate swap contracts | , Polaris had the following open interest rate swap contracts (in millions): December 31, 2020 December 31, 2019 Effective Date Termination Date Notional Amounts Net Unrealized Gain (Loss) Notional Amounts Net Unrealized Gain (Loss) May 2, 2018 May 4, 2021 $ 25.0 $ (0.2) $ 25.0 $ (0.1) September 30, 2019 September 30, 2023 150.0 (11.3) 150.0 (7.7) May 3, 2019 May 3, 2020 — — 100.0 (0.2) March 3, 2020 February 28, 2023 400.0 (6.6) — — Total $ 575.0 $ (18.1) $ 275.0 $ (8.0) |
Schedule of carrying values of derivative instruments | The table below summarizes the carrying values of derivative instruments as of December 31, 2020 and 2019 (in millions): Carrying Values of Derivative Instruments as of December 31, 2020 Fair Value— Fair Value— Derivative Net Derivatives designated as hedging instruments Foreign exchange contracts $ 1.0 $ (3.3) $ (2.3) Interest rate contracts — (18.1) (18.1) Total derivatives designated as hedging instruments $ 1.0 $ (21.4) $ (20.4) Carrying Values of Derivative Instruments as of December 31, 2019 Fair Value— Fair Value— Derivative Net Derivatives designated as hedging instruments Foreign exchange contracts $ 1.1 $ (1.2) $ (0.1) Interest rate contracts — (8.0) (8.0) Total derivatives designated as hedging instruments $ 1.1 $ (9.2) $ (8.1) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 millions): For the Years Ended December 31, 2020 2019 2018 Sales ORV/Snowmobiles $ 4,533.3 $ 4,209.1 $ 3,919.4 Motorcycles 581.7 584.1 545.6 Global Adjacent Markets 424.6 461.3 444.6 Aftermarket 884.9 906.7 889.2 Boats 603.4 621.3 279.7 Total sales $ 7,027.9 $ 6,782.5 $ 6,078.5 Gross profit ORV/Snowmobiles 1,218.4 1,145.5 1,113.9 Motorcycles 20.0 30.0 63.0 Global Adjacent Markets 116.4 128.8 116.6 Aftermarket 222.8 222.7 234.4 Boats 116.4 124.6 46.3 Corporate 16.2 (2.8) (73.0) Total gross profit $ 1,710.2 $ 1,648.8 $ 1,501.2 |
Organization and Significant _4
Organization and Significant Accounting Policies - Fair Value Measurements (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 48,900 | |
Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 48,300 | |
Foreign Currency Contract, Asset, Fair Value Disclosure | 48,900 | |
Non-qualified deferred compensation liabilities | 48,900 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 2,300 | 100 |
Total liabilities at fair value | (68,700) | (57,000) |
Level 1 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 48,300 | |
Total liabilities at fair value | (48,300) | (48,900) |
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 | 0 |
Total liabilities at fair value | (20,400) | (8,100) |
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 | 48,300 | 48,900 |
Non-qualified deferred compensation liabilities | 48,300 | |
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 | 48,300 | 48,900 |
Non-qualified deferred compensation liabilities | 48,300 | 48,900 |
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 | (18,100) | (8,000) |
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 | (18,100) | |
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 | 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] | ||
Interest rate contracts, net | (2,300) | $ (100) |
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 |
Organization and Significant _5
Organization and Significant Accounting Policies - Major Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Raw materials and purchased components | $ 533,500 | $ 344,600 |
Service parts, garments and accessories | 330,500 | 357,000 |
Finished goods | 381,300 | 476,200 |
Less: reserves | (67,700) | (56,700) |
Inventories | $ 1,177,600 | $ 1,121,100 |
Organization and Significant _6
Organization and Significant Accounting Policies - Activity in Polaris Accrued Warranty Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Activity in Product Warranty Reserve [Roll Forward] | |||
Balance at beginning of year | $ 136,200 | $ 121,800 | $ 123,800 |
Additions to reserve related to acquisitions | 0 | 8,800 | 19,500 |
Additions charged to expense | 123,700 | 122,900 | 105,000 |
Warranty claims paid, net | 119,100 | 117,300 | (126,500) |
Balance at end of year | $ 140,800 | $ 136,200 | $ 121,800 |
Organization and Significant _7
Organization and Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Long-term debt, fair value | $ 1,552,300,000 | $ 1,769,300,000 | |
Long-term debt, carrying value | 1,450,700,000 | 1,693,500,000 | |
Advertising expenses | 95,800,000 | 77,400,000 | $ 65,000,000 |
Operating lease assets | 125,400,000 | $ 110,200,000 | |
Operating lease liability | $ 127,000,000 | ||
ORVs | |||
Property, Plant and Equipment [Line Items] | |||
Period of warranties provided by Polaris | 6 months | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Renewal term | 1 year | ||
Minimum | Building and Building Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful life | 10 years | ||
Minimum | Machinery Equipment And Production Tooling | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful life | 1 year | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Renewal term | 20 years | ||
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% |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Revenue Arrangement [Line Items] | ||||
Deferred Revenue | $ 107,100,000 | $ 81,600,000 | $ 59,900,000 | $ 45,800,000 |
Deferred Revenue, Current | 37,800,000 | 34,300,000 | ||
Deferred Revenue, Noncurrent | $ 69,300,000 | $ 47,300,000 |
Revenue Recognition (Contract R
Revenue Recognition (Contract Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Sales | $ 7,027,900 | $ 6,782,500 | $ 6,078,500 |
ORV/Snowmobiles | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 4,533,300 | 4,209,100 | 3,919,400 |
Motorcycles | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 581,700 | 584,100 | 545,600 |
Global Adjacent Markets | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 424,600 | 461,300 | 444,600 |
Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 884,900 | 906,700 | 889,200 |
Boats | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 603,400 | 621,300 | 279,700 |
Wholegoods | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 5,053,300 | 4,960,500 | 4,348,500 |
Wholegoods | ORV/Snowmobiles | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 3,612,900 | 3,463,200 | 3,237,500 |
Wholegoods | Motorcycles | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 493,400 | 502,100 | 465,200 |
Wholegoods | Global Adjacent Markets | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 343,600 | 373,900 | 366,100 |
Wholegoods | Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
Wholegoods | Boats | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 603,400 | 621,300 | 279,700 |
PG&A | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,974,600 | 1,822,000 | 1,730,000 |
PG&A | ORV/Snowmobiles | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 920,400 | 745,900 | 681,900 |
PG&A | Motorcycles | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 88,300 | 82,000 | 80,400 |
PG&A | Global Adjacent Markets | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 81,000 | 87,400 | 78,500 |
PG&A | Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 884,900 | 906,700 | 889,200 |
PG&A | Boats | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 5,791,100 | 5,551,700 | 4,883,800 |
United States | ORV/Snowmobiles | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 3,749,900 | 3,470,100 | 3,178,100 |
United States | Motorcycles | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 397,000 | 376,000 | 371,400 |
United States | Global Adjacent Markets | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 208,300 | 232,700 | 212,700 |
United States | Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 843,500 | 867,000 | 847,300 |
United States | Boats | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 592,400 | 605,900 | 274,300 |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 396,100 | 394,800 | 390,200 |
Canada | ORV/Snowmobiles | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 319,700 | 304,000 | 293,200 |
Canada | Motorcycles | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 21,200 | 31,100 | 31,200 |
Canada | Global Adjacent Markets | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 2,800 | 4,600 | 18,500 |
Canada | Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 41,400 | 39,700 | 41,900 |
Canada | Boats | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 11,000 | 15,400 | 5,400 |
EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 614,800 | 640,000 | 602,900 |
EMEA | ORV/Snowmobiles | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 307,900 | 302,500 | 306,900 |
EMEA | Motorcycles | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 96,700 | 116,200 | 88,000 |
EMEA | Global Adjacent Markets | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 210,200 | 221,300 | 208,000 |
EMEA | Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
EMEA | Boats | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
APLA | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 225,900 | 196,000 | 201,600 |
APLA | ORV/Snowmobiles | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 155,800 | 132,500 | 141,200 |
APLA | Motorcycles | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 66,800 | 60,800 | 55,000 |
APLA | Global Adjacent Markets | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 3,300 | 2,700 | 5,400 |
APLA | Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
APLA | Boats | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 0 | $ 0 | $ 0 |
Revenue Recognition (Deferred R
Revenue Recognition (Deferred Revenue) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |||
Balance at beginning of period | $ 81,600,000 | $ 59,900,000 | $ 45,800,000 |
New contracts sold | 60,400,000 | 49,600,000 | 35,600,000 |
Balance at end of period | 107,100,000 | 81,600,000 | 59,900,000 |
Deferred Revenue, Revenue Recognized | (34,900,000) | (27,900,000) | $ (21,500,000) |
Deferred Revenue, Current | 37,800,000 | 34,300,000 | |
Deferred Revenue, Noncurrent | $ 69,300,000 | $ 47,300,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Informaton (Detail) - USD ($) | Jul. 02, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Total consideration for acquisition, less cash acquired | $ 0 | $ 1,800,000 | $ 759,800,000 | |
Pro forma net income | 124,900,000 | 323,900,000 | 335,300,000 | |
Sales | 7,027,900,000 | 6,782,500,000 | 6,078,500,000 | |
Gross profit | 1,710,200,000 | 1,648,800,000 | 1,501,200,000 | |
Boats | ||||
Business Acquisition [Line Items] | ||||
Sales | 603,400,000 | 621,300,000 | 279,700,000 | |
Operating Segments [Member] | Boats | ||||
Business Acquisition [Line Items] | ||||
Sales | 603,400,000 | 621,300,000 | 279,700,000 | |
Gross profit | 116,400,000 | 124,600,000 | $ 46,300,000 | |
Boat Holdings, LLC | ||||
Business Acquisition [Line Items] | ||||
Percentage of outstanding voting interest acquired | 100.00% | |||
Weighted average useful life | 19 years | |||
Acquisition-related costs | $ 6,400,000 | $ 9,600,000 | ||
Total consideration for acquisition, less cash acquired | $ 806,700,000 | |||
Aggregate consideration | $ 100,000,000 | |||
Deferred annual payment term | 12 years | |||
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% |
Acquisitions - Summary of Asset
Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 02, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 397,300 | $ 659,900 | $ 647,100 | |
Total consideration for acquisition, less cash acquired | $ 0 | $ 1,800 | $ 759,800 | |
Boat Holdings, LLC | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 16,500 | |||
Trade receivables | 17,500 | |||
Inventory | 39,900 | |||
Other current assets | 4,500 | |||
Property, plant and equipment | 35,300 | |||
Goodwill | 222,400 | |||
Accounts payable | 30,000 | |||
Other liabilities assumed | (37,300) | |||
Total fair value of net assets acquired | 823,200 | |||
Less cash acquired | (16,500) | |||
Total consideration for acquisition, less cash acquired | 806,700 | |||
Customer Relationships | Boat Holdings, LLC | ||||
Business Acquisition [Line Items] | ||||
Customer relationships | 341,100 | |||
Non-compete agreements | Boat Holdings, LLC | ||||
Business Acquisition [Line Items] | ||||
Customer relationships | 2,600 | |||
Trademarks and Trade Names | Boat Holdings, LLC | ||||
Business Acquisition [Line Items] | ||||
Trademarks / trade names | $ 210,700 |
Acquisitions - Unaudited Profor
Acquisitions - Unaudited Proforma Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Net sales | $ 7,027,900,000 | $ 6,782,500,000 | $ 6,429,700,000 |
Net income | $ 124,800,000 | $ 328,800,000 | $ 360,700,000 |
Basic earnings per share (in dollars per share) | $ 2.02 | $ 5.35 | $ 5.77 |
Diluted earnings per common share (in dollars per share) | $ 1.99 | $ 5.28 | $ 5.64 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 48 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to unvested share-based equity awards | $ 60,100 | $ 60,100 | ||
Weighted average period of recognition of unvested share-based equity awards (in years) | 1 year 14 days | |||
Unrecognized compensation cost related to unvested share-based equity awards, Stock Options | $ 10,200 | 10,200 | ||
Unrecognized compensation cost related to unvested share-based equity awards, Restricted Stock | $ 49,900 | 49,900 | ||
Weighted average remaining contractual life of option outstanding | 5 years 2 months 1 day | |||
Weighted average remaining contractual life of option exercisable | 3 years 10 months 2 days | |||
Estimated weighted average fair value of options granted | $ 21.76 | $ 19.54 | $ 26.50 | |
Total intrinsic value of options exercised | $ 13,400 | |||
Total intrinsic value of options outstanding | 35,600 | 35,600 | ||
Total intrinsic value of options exercisable | $ 25,800 | $ 25,800 | ||
Weighted average fair values at the grant dates of grants awarded | $ 98.09 | $ 96.38 | $ 106.43 | |
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 | 27,775,000 | 27,775,000 | ||
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 | 20,000 | 15,000 | 12,000 | |
Additional shares issued to retired directors | 13,000 | 14,000 | 10,000 | 48,000 |
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 | 216,000 | |||
Stock Option Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock shares granted | 606,060 | |||
Directors Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum shares authorized for issuance | 500,000 | 500,000 | ||
Shares of common stock earned | 73,000 | |||
Additional shares issued to retired directors | 427,000 | |||
Liabilities under share plan | $ 8,000 | $ 11,000 | $ 8,000 | |
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 96,000 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 391,206 | |||
Total intrinsic value of restricted stock expected to vest | $ 108,200 | $ 108,200 | ||
Weighted average fair values at the grant dates of grants awarded | $ 92.23 | $ 89.75 | $ 114.42 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Option awards | $ 13,800 | $ 21,800 | $ 23,400 |
Other share-based awards | 40,900 | 48,000 | 28,500 |
Total share-based compensation before tax | 54,700 | 69,800 | 51,900 |
Tax benefit | 13,100 | 16,600 | 12,300 |
Total share-based compensation expense included in net income | $ 41,600 | $ 53,200 | $ 39,600 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity and Weighted Average Exercise Price (Detail) - Stock Option Plans | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Outstanding Shares | |
Beginning Balance | shares | 5,654,258 |
Granted | shares | 606,060 |
Exercised | shares | (428,617) |
Forfeited | shares | (729,405) |
Ending Balance | shares | 5,102,296 |
Options exercisable at end of period | shares | 3,398,589 |
Weighted-Average Exercise Price | |
Beginning Balance | $ / shares | $ 96.83 |
Granted | $ / shares | 93.88 |
Exercised | $ / shares | 72.49 |
Forfeited | $ / shares | 95.62 |
Ending Balance | $ / shares | 98.70 |
Options exercisable at end of period | $ / shares | $ 102.23 |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions Used to Estimate Weighted Average Fair Value of Options (Detail) - Stock Options | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average volatility | 34.00% | 32.00% | 30.00% |
Expected dividend yield | 2.60% | 2.90% | 2.10% |
Expected term (in years) | 4 years 6 months | 4 years 6 months | 4 years 4 months 24 days |
Weighted average risk free interest rate | 1.40% | 2.50% | 2.60% |
Share-Based Compensation - As_2
Share-Based Compensation - Assumptions Used to Estimate Fair Value of TSR grants (Details) - TSR Performance Share Awards | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average volatility | 35.00% | 34.00% | 33.00% |
Expected dividend yield | 2.60% | 2.70% | 2.10% |
Expected term (in years) | 3 years | 3 years | 3 years |
Weighted average risk free interest rate | 1.40% | 2.40% | 2.30% |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted Average Grant Price | |||
Granted | $ 98.09 | $ 96.38 | $ 106.43 |
Restricted Stock | |||
Shares Outstanding | |||
Beginning Balance | 1,386,009 | ||
Granted | 391,206 | ||
Vested | (423,154) | ||
Canceled/Forfeited | (210,985) | ||
Ending Balance | 1,143,076 | 1,386,009 | |
Expected to vest as of end of period | 1,135,950 | ||
Weighted Average Grant Price | |||
Beginning Balance | $ 96.92 | ||
Granted | 92.23 | $ 89.75 | $ 114.42 |
Vested | 87.93 | ||
Canceled/Forfeited | 99.28 | ||
Ending Balance | 98.20 | $ 96.92 | |
Expected to vest as of end of period | $ 98.12 |
Employee Savings Plans - Additi
Employee Savings Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expenses related ESOP | $ 12,300 | $ 10,300 | $ 10,000 |
Shares vested under ESOP | 3,242,000 | ||
Matching percentage of employer to employee contributions | 100.00% | ||
Matching contributions to 401(k) retirement savings plan | $ 26,900 | 26,200 | $ 24,500 |
Temporary equity, shares issued (in shares) | 129,457 | ||
Deferred compensation | $ 12,300 | 13,600 | |
Temporary equity, other changes | 11,300 | ||
Temporary equity, accretion to redemption value, adjustment | $ 1,000 | ||
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 | 7,700,000 | ||
Fair value, measurements, recurring | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets at fair value | $ 48,300 | ||
Level 1 | Fair value, measurements, recurring | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets at fair value | 48,300 | ||
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 | $ 48,300 | $ 48,900 | |
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) | May 26, 2020 | Jul. 31, 2018USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2020USD ($) | Apr. 09, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 02, 2018 |
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 1,365,000,000 | $ 1,600,100,000 | $ 1,862,600,000 | |||||
Weighted-average interest rate at December 31 | 2.30% | 3.29% | 3.64% | |||||
Debt issuance costs | $ (5,500,000) | $ (4,100,000) | ||||||
Total debt, finance lease obligations, and notes payable | 1,450,700,000 | 1,693,500,000 | ||||||
Less: current maturities | 142,100,000 | 166,700,000 | ||||||
Total long-term debt, finance lease obligations, and notes payable | 1,308,600,000 | 1,526,800,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | $ 75,000,000 | |||||||
Term Loan, 364 Day [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 300,000,000 | |||||||
Master Notes | Senior Unsecured Notes 3.13 Percent Due December 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Issuance of senior notes | $ 100,000,000 | |||||||
Revolving loan facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Average interest rate | 0.00% | |||||||
Long-term debt | $ 0 | 75,100,000 | ||||||
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 | $ 0 | 100,000,000 | ||||||
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] | ||||||||
Weighted-average interest rate at December 31 | 5.20% | |||||||
Finance lease obligations | $ 16,200,000 | 16,100,000 | ||||||
Notes payable and other | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 4.24% | |||||||
Notes payable and other | Notes Payable 3.50 Percent Due June 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 75,000,000 | 81,400,000 | ||||||
Long-term Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate at period end | 1.40% | |||||||
Long-term line of credit | $ 940,000,000 | $ 1,000,000,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | $ 59,000,000 | |||||||
Revolving loan facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Covenant, Interest Coverage Ratio, Minimum | 2.25 | 3 | ||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 4.75 | 3.50 | ||||||
Debt Instrument, Covenant, Interest Coverage Ratio, Minimum | 2.25 | 3 | ||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 4.75 | 3.50 |
Financing Agreement - Summary o
Financing Agreement - Summary of Activity Under Credit Arrangements, Excluding Acquired Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Total borrowings at December 31 | $ 1,365,000 | $ 1,600,100 | $ 1,862,600 |
Average outstanding borrowings during year | 1,879,700 | 1,912,000 | 1,474,500 |
Maximum outstanding borrowings during year | $ 2,370,600 | $ 2,127,900 | $ 1,999,700 |
Weighted-average interest rate at December 31 | 2.30% | 3.29% | 3.64% |
Financing Agreement - Additiona
Financing Agreement - Additional Information (Details) - USD ($) | 1 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2020 | Apr. 09, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 31, 2018 | Jul. 02, 2018 | Sep. 30, 2016 | |
Line of Credit Facility [Line Items] | ||||||||
Letter of credit outstanding | $ 30,700,000 | |||||||
Debt outstanding from dealers | 1,064,000,000 | |||||||
Long-term debt | 1,365,000,000 | $ 1,600,100,000 | $ 1,862,600,000 | |||||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | $ 75,000,000 | |||||||
Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Aggregate repurchase obligation | 15.00% | |||||||
Term Loan, 364 Day [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Face amount | $ 300,000,000 | |||||||
Master Notes | Senior Unsecured Notes 3.13 Percent Due December 2020 | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Issuance of senior notes | $ 100,000,000 | |||||||
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 | 0 | 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 | 8,500,000 | $ 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 | 940,000,000 | $ 1,000,000,000 | ||||||
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 | $ 66,500,000 | $ 76,700,000 | ||||||
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 | $ 198,300,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 397,300 | $ 659,900 | $ 647,100 |
Other intangible assets, net | 686,400 | 830,300 | |
Total goodwill and other intangible assets, net | $ 1,083,700 | $ 1,490,200 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||
Balance as of beginning of year | $ 659,900 | $ 647,100 | |
Goodwill acquired and related adjustments | 0 | 14,100 | |
Currency translation effect on foreign goodwill balances | 7,700 | (1,300) | |
Goodwill, Gross | 667,600 | ||
Goodwill, Impaired, Accumulated Impairment Loss | (270,300) | ||
Balance as of end of year | 397,300 | 659,900 | |
Goodwill, Impairment Loss | $ (270,300) | $ (270,300) | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Changes on the Carrying Amount of Goodwill by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||||
Goodwill | $ 397,300 | $ 659,900 | $ 647,100 | |
Goodwill, Impairment Loss | $ (270,300) | (270,300) | 0 | |
Currency translation effect on foreign goodwill balances | 7,700 | (1,300) | ||
Goodwill, Gross | 667,600 | |||
Goodwill, Impaired, Accumulated Impairment Loss | (270,300) | |||
Goodwill acquired and related adjustments | 0 | 14,100 | ||
ORV/Snowmobiles | ||||
Goodwill [Line Items] | ||||
Goodwill | 72,900 | 72,000 | 71,800 | |
Currency translation effect on foreign goodwill balances | 900 | 200 | ||
Goodwill, Gross | 72,900 | |||
Motorcycles | ||||
Goodwill [Line Items] | ||||
Goodwill | 5,200 | 5,200 | 3,400 | |
Goodwill, Gross | 5,200 | |||
Goodwill acquired and related adjustments | 1,800 | |||
Global Adjacent Markets | ||||
Goodwill [Line Items] | ||||
Goodwill | 92,100 | 85,200 | 86,800 | |
Currency translation effect on foreign goodwill balances | 6,900 | (1,600) | ||
Goodwill, Gross | 92,100 | |||
Aftermarket | ||||
Goodwill [Line Items] | ||||
Goodwill | 0 | 270,400 | 270,300 | |
Goodwill, Impairment Loss | (270,300) | |||
Currency translation effect on foreign goodwill balances | (100) | 100 | ||
Goodwill, Gross | 270,300 | |||
Goodwill, Impaired, Accumulated Impairment Loss | (270,300) | |||
Boats | ||||
Goodwill [Line Items] | ||||
Goodwill | 227,100 | 227,100 | $ 214,800 | |
Goodwill, Gross | $ 227,100 | |||
Goodwill acquired and related adjustments | $ 12,300 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Other Intangible Assets, Changes in Net Carrying Amount (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Gross Amount | |||
Other intangible assets, beginning | $ 956,800 | $ 964,700 | |
Intangible assets acquired, purchase accounting adjustment | 0 | ||
Intangible assets acquired during the period | 1,000 | ||
Currency translation effect on foreign balances | 900 | (1,800) | |
Other intangible assets, ending | 807,100 | 956,800 | |
Finite-Lived Intangible Assets, Disposal of Intangible Assets | (41,700) | (7,100) | |
Amortization of Intangible Assets, Adjustment for Disposal | 41,700 | 7,100 | |
Accumulated Amortization | |||
Other intangible assets, beginning | (126,500) | (94,100) | |
Amortization expense | (36,100) | (40,900) | |
Currency translation effect on foreign balances | 200 | 1,400 | |
Other intangible assets, ending | (120,700) | $ (126,500) | |
Goodwill, Impairment Loss | $ (108,900) | $ 108,900 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 472,800 | $ 514,800 | |
Accumulated Amortization | (120,700) | (126,500) | $ (94,100) |
Net | 352,100 | 388,300 | |
Total other intangible assets, Gross Carrying Amount | 807,100 | 956,800 | $ 964,700 |
Total other intangible assets, net | $ 686,400 | $ 830,300 | |
Non-compete agreements | |||
Intangible Assets by Major Class [Line Items] | |||
Estimated Life (Years) | 4 years | 4 years | |
Gross Carrying Amount | $ 2,600 | $ 2,600 | |
Accumulated Amortization | (1,600) | (1,000) | |
Net | 1,000 | 1,600 | |
Dealer/customer related | |||
Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | 460,300 | 499,500 | |
Accumulated Amortization | (110,800) | (116,100) | |
Net | $ 349,500 | $ 383,400 | |
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 | $ 9,900 | $ 12,700 | |
Accumulated Amortization | (8,300) | (9,400) | |
Net | $ 1,600 | $ 3,300 | |
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 | $ 334,300 | $ 442,000 | |
Non-amortizable, Net | $ 334,300 | $ 442,000 |
Goodwill and Other Intangible_8
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense of intangible assets | $ 36,100,000 | $ 40,900,000 | |
Estimated Future Amortization Expense by Fiscal Year [Abstract] | |||
2018 | 33,300,000 | ||
2019 | 28,300,000 | ||
2020 | 25,700,000 | ||
2021 | 25,000,000 | ||
2022 | 25,000,000 | ||
After 2022 | 214,800,000 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 108,900,000 | (108,900,000) | |
Goodwill, Impairment Loss | 270,300,000 | 270,300,000 | 0 |
Deferred Income Taxes and Tax Credits | $ 90,300,000 | ||
Accumulated amortization | $ 9,500,000 | $ 7,800,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Document Fiscal Year Focus | 2020 | ||
Effective income tax rate for continuing operations | 11.60% | 20.60% | 21.90% |
Undistributed earnings relating to certain non-U.S. subsidiaries | $ 251,000 | $ 188,000 | |
Net operating loss carryforwards | $ 62,300 |
Income Taxes - Income From Cont
Income Taxes - Income From Continuing Operations, Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 72,900 | $ 344,300 | $ 344,700 |
Foreign | 68,500 | 63,500 | 84,500 |
Income before income taxes | $ 141,400 | $ 407,800 | $ 429,200 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 56,500 | $ 46,400 | $ 39,000 |
State | 13,400 | 18,200 | 3,800 |
Foreign | 27,400 | 26,800 | 27,500 |
Deferred | (80,800) | (7,500) | 23,600 |
Total provision for income taxes | $ 16,500 | $ 83,900 | $ 93,900 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | 0.40% | 2.30% | 1.90% |
Domestic manufacturing deduction | (2.60%) | (2.10%) | (1.40%) |
Research and development tax credit | (12.60%) | (4.00%) | (3.10%) |
Stock based compensation | (0.30%) | 0.20% | (1.40%) |
Valuation allowance | 1.70% | 0.50% | 0.20% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 5.60% | 1.70% | 1.30% |
Other permanent differences | (1.60%) | 1.00% | 3.40% |
Effective income tax rate for continuing operations | 11.60% | 20.60% | 21.90% |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income taxes: | ||
Inventories | $ 37,200 | $ 18,500 |
Accrued expenses | 116,500 | 126,600 |
Cost in excess of net assets of businesses acquired | 42,500 | (35,200) |
Property and equipment | (92,700) | (88,100) |
Deferred Tax Liabilities, Leasing Arrangements | (30,700) | (26,500) |
Deferred Tax Assets, Leasing Arrangements | 30,900 | 27,100 |
Employee compensation and benefits | 64,300 | 61,400 |
Net operating loss and other loss carryforwards | 21,400 | 20,100 |
Valuation allowance | (16,100) | (14,600) |
Total net deferred income tax asset | $ 173,300 | $ 89,300 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1, | $ 24,400 | $ 25,500 |
Gross increases for tax positions of prior years | 800 | 1,200 |
Gross increases for tax positions of current year | 2,700 | 4,000 |
Decreases due to settlements and other prior year tax positions | (4,200) | (5,600) |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 10,500 | 700 |
Balance at December 31, | 13,200 | 24,400 |
Reserves related to potential interest and penalties at December 31, | 1,200 | 3,700 |
Unrecognized tax benefits at December 31, | $ 14,400 | $ 28,100 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchases (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Shareholders Equity [Abstract] | |||
Total number of shares repurchased and retired | 600 | 100 | 3,200 |
Total investment | $ 50,300 | $ 8,400 | $ 348,700 |
Shareholders' Equity - Cash Div
Shareholders' Equity - Cash Dividends Declared Per Common Share (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Shareholders Equity [Abstract] | ||||||
Quarterly dividend declared and paid per common share | $ 0.62 | $ 0.61 | $ 0.60 | $ 2.48 | $ 2.44 | $ 2.40 |
Shareholders' Equity - Reconcil
Shareholders' Equity - Reconciliation of Weighted Average Number of Shares (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted Average Number of Shares Outstanding [Line Items] | |||
Weighted average number of common shares outstanding | 61,500 | 61,100 | 62,200 |
Director Plan and deferred stock units | 200 | 200 | 200 |
ESOP | 200 | 100 | 100 |
Common shares outstanding—basic | 61,900 | 61,400 | 62,500 |
Common and potential common shares outstanding—diluted | 62,600 | 62,300 | 63,900 |
Restricted Stock | |||
Weighted Average Number of Shares Outstanding [Line Items] | |||
Dilutive effect of stock awards | 500 | 600 | 700 |
Stock Options | |||
Weighted Average Number of Shares Outstanding [Line Items] | |||
Dilutive effect of stock awards | 200 | 300 | 700 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Accumulated Other Comprehensive Income (Loss) Balances (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2019 | $ (72,700) |
Reclassification to the income statement | 3,700 |
Change in fair value | 10,600 |
Balance as of December 31, 2020 | (58,400) |
Foreign Currency Translation | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2019 | (63,300) |
Reclassification to the income statement | 0 |
Change in fair value | 24,200 |
Balance as of December 31, 2020 | (39,100) |
Cash Flow Hedging Derivatives | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2019 | (6,100) |
Reclassification to the income statement | 4,200 |
Change in fair value | (13,600) |
Balance as of December 31, 2020 | (15,500) |
Retirement Plan and Other Activity | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2019 | (3,300) |
Reclassification to the income statement | (500) |
Change in fair value | 0 |
Balance as of December 31, 2020 | $ (3,800) |
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, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | $ (3,700) | $ 3,000 |
Foreign exchange contracts, net | Other (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | 4,300 | 3,200 |
Foreign exchange contracts, net | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | (2,400) | 900 |
Interest rate contracts | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | (6,100) | (900) |
Retirement plan activity | Operating expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | $ 500 | $ (200) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - $ / shares | Jan. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Stockholders Equity Note [Line Items] | ||||
Number of shares authorized to be repurchased (in shares) | 90,500,000 | |||
Remaining authorized repurchase amount (in shares) | 2,600,000 | |||
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) | 1,500,000 | |||
Cash dividends declared, per share | $ 2.48 | $ 2.44 | $ 2.40 | |
Common stock excluded from calculation of diluted earnings per share (in shares) | 4,400,000 | 3,800,000 | 1,700,000 | |
Subsequent Event | ||||
Stockholders Equity Note [Line Items] | ||||
Cash dividends declared, per share | $ 0.63 |
Financial Services Arrangemen_3
Financial Services Arrangements - Financial Information for Polaris Acceptance Reflecting Effects of Securitization Facility (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investments [Line Items] | |||
Net income | $ 124,800 | $ 324,000 | $ 335,300 |
Total Assets | 4,632,700 | 4,430,500 | |
Total Liabilities and Partners' Capital | 4,632,700 | 4,430,500 | |
Polaris Acceptance | |||
Schedule of Investments [Line Items] | |||
Revenues | 44,700 | 79,300 | 72,100 |
Interest and operating expenses | 7,600 | 14,400 | 11,800 |
Net income | 37,100 | 64,900 | $ 60,300 |
Finance receivables, net | 392,700 | 687,700 | |
Other assets | 13,900 | 100 | |
Total Assets | 406,600 | 687,800 | |
Notes Payable | 248,400 | 463,100 | |
Other liabilities | 39,400 | 3,400 | |
Partners' capital | 118,800 | 221,300 | |
Total Liabilities and Partners' Capital | $ 406,600 | $ 687,800 | |
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_4
Financial Services Arrangements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investments in and Advances to Affiliates [Line Items] | ||
Investment in finance affiliate | $ 59,400 | $ 110,600 |
Net amount financed for dealers | 771,500 | |
Trade receivables, net | $ 257,200 | $ 190,400 |
Maximum | ||
Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation | 15.00% | |
Polaris Acceptance | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity method investment ownership percentage | 50.00% | |
Trade receivables, net | $ 392,700 | |
Aggregate repurchase obligation, amount | 198,300 | |
Securitization Facility | ||
Investments in and Advances to Affiliates [Line Items] | ||
Outstanding balance of receivables | 378,800 | |
TCF [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation, amount | $ 135,700 |
Investment in Other Affiliates
Investment in Other Affiliates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments in and Advances to Affiliates [Line Items] | ||||
Investments in and Advances to Affiliates, at Fair Value | $ 7,500 | |||
Investment in finance affiliate | 59,400 | $ 110,600 | ||
Equity in loss of other affiliates | $ 0 | $ (5,100) | $ (29,300) | |
Cost-method Investments, Realized Gains | $ 13,500 | |||
Eicher -Polaris Private Limited | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Interest and operating expenses | $ 27,000 |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | $ 125,400,000 | $ 110,200,000 |
Finance lease assets | 11,600,000 | 12,700,000 |
Total leased assets | 137,000,000 | 122,900,000 |
Current operating lease liabilities | 34,700,000 | 34,900,000 |
Current portion of debt, finance lease obligations and notes payable | 1,500,000 | 1,300,000 |
Long-term operating lease liabilities | 92,300,000 | 77,900,000 |
Finance lease obligations | 14,700,000 | 14,800,000 |
Total lease liabilities | 143,200,000 | 128,900,000 |
Accumulated amortization | 9,500,000 | 7,800,000 |
Operating expenses and cost of sales | 45,400,000 | 42,500,000 |
Operating expenses and cost of sales | 1,500,000 | 1,500,000 |
Interest expense | 900,000 | 900,000 |
Other (income) expense, net | (2,600,000) | (2,400,000) |
Total lease cost | 45,200,000 | $ 42,500,000 |
2020 | 38,100,000 | |
2021 | 29,500,000 | |
2022 | 23,300,000 | |
2023 | 16,200,000 | |
2024 | 11,900,000 | |
Thereafter | 16,200,000 | |
Total lease payments | 135,200,000 | |
Less: interest | 8,200,000 | |
Present value of lease payments | 127,000,000 | |
2020 | 2,300,000 | |
2021 | 2,300,000 | |
2022 | 2,300,000 | |
2023 | 2,300,000 | |
2024 | 2,300,000 | |
Thereafter | 8,600,000 | |
Total lease payments | 20,100,000 | |
Less: interest | 3,900,000 | |
Present value of lease payments | 16,200,000 | |
2020 | 40,400,000 | |
2021 | 31,800,000 | |
2022 | 25,600,000 | |
2023 | 18,500,000 | |
2024 | 14,200,000 | |
Thereafter | 24,800,000 | |
Total lease payments | 155,300,000 | |
Option to extend | $ 14,700,000 | |
Operating leases | 4 years 10 months 17 days | 4 years 5 months 19 days |
Finance leases | 8 years 6 months 7 days | 9 years 5 months 23 days |
Operating leases | 2.71% | 3.29% |
Finance leases | 5.20% | 5.18% |
Operating cash flows from operating leases | $ 45,300,000 | $ 42,700,000 |
Operating cash flows from finance leases | 800,000 | 900,000 |
Financing cash flows from finance leases | 1,400,000 | 1,300,000 |
Leased assets obtained in exchange for new operating lease liabilities | $ 47,700,000 | $ 28,800,000 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Accrual for the probable payment of pending claims | $ 70,700 | $ 57,000 | |
Rent expense | $ 45,400 | $ 42,500 | $ 38,200 |
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, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | $ 209,300 | $ 134,400 |
Net Unrealized Gain (Loss) | (2,300) | (100) |
Australian Dollar | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 26,000 | 16,000 |
Net Unrealized Gain (Loss) | (500) | (100) |
Canadian Dollar | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 169,800 | 101,400 |
Net Unrealized Gain (Loss) | (2,800) | (1,100) |
Mexican Peso | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 13,500 | 17,000 |
Net Unrealized Gain (Loss) | $ 1,000 | $ 1,100 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Carrying Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | ||
Foreign exchange contracts, net | Level 2 | Fair value, measurements, recurring | ||||
Derivative [Line Items] | ||||
Derivative Liability | $ 2,300 | $ 100 | ||
Derivative asset | 1,100 | |||
Interest Rate Swap | Fair value, measurements, recurring | ||||
Derivative [Line Items] | ||||
Derivative Liability | 18,100 | 8,000 | ||
Interest Rate Swap | Level 2 | Fair value, measurements, recurring | ||||
Derivative [Line Items] | ||||
Derivative Liability | 18,100 | |||
Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Derivative Net Carrying Value | (20,400) | (8,100) | ||
Designated as Hedging Instrument [Member] | Foreign exchange contracts, net | ||||
Derivative [Line Items] | ||||
Derivative Net Carrying Value | [1] | (2,300) | (100) | |
Designated as Hedging Instrument [Member] | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative Net Carrying Value | [1] | (18,100) | (8,000) | |
Prepaid Expenses And Other Current Assets | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Fair Value— Assets | 1,000 | 1,100 | ||
Prepaid Expenses And Other Current Assets | Designated as Hedging Instrument [Member] | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Fair Value— Assets | 0 | 0 | [1] | |
Fair Value— (Liabilities) | (18,100) | |||
Other Current Liabilities | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Fair Value— (Liabilities) | (21,400) | (9,200) | ||
Other Current Liabilities | Designated as Hedging Instrument [Member] | Foreign exchange contracts, net | ||||
Derivative [Line Items] | ||||
Fair Value— Assets | [1] | 1,000 | ||
Fair Value— (Liabilities) | [1] | $ (3,300) | (1,200) | |
Other Current Liabilities | Designated as Hedging Instrument [Member] | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative Liability | $ 8,000 | |||
[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, 2020 | Dec. 31, 2019 | |
Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Gain (loss) recognized in OCI, effective portion | $ (9,400) | $ (6,500) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Open Interest Rate Swap Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
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) | (200) | (100) | |
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) | (11,300) | (7,700) | |
Cash Flow Hedging | Interest Rate Swap, May 2019 To May 2020 [Member] [Member] | |||
Derivative [Line Items] | |||
Net Unrealized Gain (Loss) | (200) | ||
Derivative, Notional Amount1 | 100,000 | ||
Cash Flow Hedging | Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional Amounts (in U.S. dollars) | 575,000 | 275,000 | |
Net Unrealized Gain (Loss) | (18,100) | (8,000) | |
Cash Flow Hedging | Interest Rate Swap, March 2020 To February 2023 [Member] | |||
Derivative [Line Items] | |||
Net Unrealized Gain (Loss) | (6,600) | ||
Derivative, Notional Amount1 | 400,000 | ||
Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Net Unrealized Gain (Loss) | (20,400) | (8,100) | |
Designated as Hedging Instrument [Member] | Interest Rate Swap | |||
Derivative [Line Items] | |||
Net Unrealized Gain (Loss) | [1] | $ (18,100) | $ (8,000) |
[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 | 12 Months Ended | ||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 6 | ||
Number of reportable segments | segment | 5 | ||
Segment Reporting Information [Line Items] | |||
Sales | $ 7,027,900 | $ 6,782,500 | $ 6,078,500 |
Gross profit | 1,710,200 | 1,648,800 | 1,501,200 |
ORV/Snowmobiles | |||
Segment Reporting Information [Line Items] | |||
Sales | 4,533,300 | 4,209,100 | 3,919,400 |
Motorcycles | |||
Segment Reporting Information [Line Items] | |||
Sales | 581,700 | 584,100 | 545,600 |
Global Adjacent Markets | |||
Segment Reporting Information [Line Items] | |||
Sales | 424,600 | 461,300 | 444,600 |
Aftermarket | |||
Segment Reporting Information [Line Items] | |||
Sales | 884,900 | 906,700 | 889,200 |
Boats | |||
Segment Reporting Information [Line Items] | |||
Sales | 603,400 | 621,300 | 279,700 |
Operating Segments [Member] | ORV/Snowmobiles | |||
Segment Reporting Information [Line Items] | |||
Sales | 4,533,300 | 4,209,100 | 3,919,400 |
Gross profit | 1,218,400 | 1,145,500 | 1,113,900 |
Operating Segments [Member] | Motorcycles | |||
Segment Reporting Information [Line Items] | |||
Sales | 581,700 | 584,100 | 545,600 |
Gross profit | 20,000 | 30,000 | 63,000 |
Operating Segments [Member] | Global Adjacent Markets | |||
Segment Reporting Information [Line Items] | |||
Sales | 424,600 | 461,300 | 444,600 |
Gross profit | 116,400 | 128,800 | 116,600 |
Operating Segments [Member] | Aftermarket | |||
Segment Reporting Information [Line Items] | |||
Sales | 884,900 | 906,700 | 889,200 |
Gross profit | 222,800 | 222,700 | 234,400 |
Operating Segments [Member] | Boats | |||
Segment Reporting Information [Line Items] | |||
Sales | 603,400 | 621,300 | 279,700 |
Gross profit | 116,400 | 124,600 | 46,300 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross profit | $ 16,200 | $ (2,800) | $ (73,000) |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for obsolete inventory | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 56,700 | $ 48,300 | $ 47,100 |
Additions Charged to Costs and Expenses | 27,500 | 21,900 | 11,600 |
Additions Through Acquisition | 0 | 500 | 1,900 |
Other Changes Add (Deduct) | (16,500) | (14,000) | (12,300) |
Balance at End of Period | 67,700 | 56,700 | 48,300 |
Allowance for doubtful accounts receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 9,300 | 9,500 | 10,900 |
Additions Charged to Costs and Expenses | 1,300 | 700 | 1,100 |
Additions Through Acquisition | 0 | 0 | 100 |
Other Changes Add (Deduct) | (5,300) | (900) | (2,600) |
Balance at End of Period | $ 5,300 | $ 9,300 | $ 9,500 |
Uncategorized Items - pii-20201
Label | Element | Value |
Stockholders' Equity, Other | us-gaap_StockholdersEquityOther | $ (1,100,000) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | 161,600,000 |
Retained Earnings [Member] | ||
Stockholders' Equity, Other | us-gaap_StockholdersEquityOther | $ (1,100,000) |