Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 19, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-11411 | |
Entity Registrant Name | POLARIS INC. | |
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 | |
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 Common Stock, Shares Outstanding | 60,681,761 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000931015 | |
Current Fiscal Year End Date | --12-31 | |
NEW YORK STOCK EXCHANGE, INC. [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | PII | |
Security Exchange Name | NYSE |
Consolidated Statements of Equi
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared and paid per common share (in dollars per share) | $ 0.63 | $ 0.62 | $ 1.89 | $ 1.86 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 316.5 | $ 634.7 |
Trade receivables, net | 242.7 | 257.2 |
Inventories, net | 1,773.6 | 1,177.6 |
Prepaid expenses and other | 114.3 | 134.1 |
Income taxes receivable | 0.6 | 3.9 |
Total current assets | 2,447.7 | 2,207.5 |
Property and equipment, net | 931.4 | 888.8 |
Investment in finance affiliate | 31.4 | 59.4 |
Deferred tax assets | 160.3 | 177.7 |
Goodwill and other intangible assets, net | 1,053.2 | 1,083.7 |
Operating lease assets | 165.1 | 125.4 |
Other long-term assets | 81.2 | 90.2 |
Total assets | 4,870.3 | 4,632.7 |
Current liabilities: | ||
Current portion of debt, finance lease obligations and notes payable | 53.3 | 142.1 |
Accounts payable | 928.2 | 782.2 |
Accrued expenses: | ||
Compensation | 241.3 | 215.4 |
Warranties | 137.1 | 140.8 |
Sales promotions and incentives | 76.9 | 138.1 |
Dealer holdback | 79.7 | 121.7 |
Other | 255.3 | 292.4 |
Current operating lease liabilities | 39.4 | 34.7 |
Income taxes payable | 33.6 | 22 |
Total current liabilities | 1,844.8 | 1,889.4 |
Long-term income taxes payable | 16.3 | 14.4 |
Finance lease obligations | 12.7 | 14.7 |
Long-term debt | 1,457.3 | 1,293.9 |
Deferred tax liabilities | 4.2 | 4.4 |
Long-term operating lease liabilities | 128.1 | 92.3 |
Other long-term liabilities | 181.7 | 166.5 |
Total liabilities | 3,645.1 | 3,475.6 |
Deferred compensation | 11.5 | 12.3 |
Shareholders’ equity: | ||
Preferred stock $0.01 par value per share, 20.0 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock $0.01 par value per share, 160.0 shares authorized, 60.7 and 61.9 shares issued and outstanding, respectively | 0.6 | 0.6 |
Additional paid-in capital | 1,134.6 | 983.9 |
Retained earnings | 150.5 | 218.4 |
Accumulated other comprehensive loss, net | (73.9) | (58.4) |
Total shareholders’ equity | 1,211.8 | 1,144.5 |
Noncontrolling interest | 1.9 | 0.3 |
Total equity | 1,213.7 | 1,144.8 |
Total liabilities and equity | $ 4,870.3 | $ 4,632.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 60,700,000 | 61,900,000 |
Common stock, shares outstanding | 60,700,000 | 61,900,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Sales | $ 1,959.5 | $ 1,954.6 | $ 6,027.8 | $ 4,871.6 |
Cost of sales | 1,493.9 | 1,420 | 4,530.3 | 3,711.4 |
Gross profit | 465.6 | 534.6 | 1,497.5 | 1,160.2 |
Operating expenses: | ||||
Selling and marketing | 143.2 | 135.5 | 443.3 | 405.3 |
Research and development | 86.8 | 77.2 | 255.1 | 222.4 |
General and administrative | 91.6 | 100.6 | 286.2 | 267 |
Goodwill and other intangible asset impairments | 0 | 0 | 0 | 379.2 |
Total operating expenses | 321.6 | 313.3 | 984.6 | 1,273.9 |
Operating income (loss) | 155.3 | 239.4 | 554.1 | (50.5) |
Non-operating expense: | ||||
Interest expense | 10.8 | 17.3 | 33 | 51.4 |
Other (income) expense, net | 0.1 | 3.2 | (5.6) | 4.9 |
Income (loss) before income taxes | 144.4 | 218.9 | 526.7 | (106.8) |
Provision for income taxes | 29.6 | 52 | 119.2 | (32.9) |
Net income (loss) | 114.8 | 166.9 | 407.5 | (73.9) |
Net income attributable to noncontrolling interest | (0.2) | (0.1) | (0.4) | (0.1) |
Net income (loss) attributable to Polaris Inc. | $ 114.6 | $ 166.8 | $ 407.1 | $ (74) |
Basic (in dollars per share) | $ 1.88 | $ 2.70 | $ 6.63 | $ (1.20) |
Diluted (in dollars per share) | $ 1.84 | $ 2.66 | $ 6.48 | $ (1.20) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 61 | 61.9 | 61.4 | 61.8 |
Diluted (in shares) | 62.3 | 62.8 | 62.9 | 61.8 |
Income from financial services | ||||
Operating expenses: | ||||
Income from financial services | $ 11.3 | $ 18.1 | $ 41.2 | $ 63.2 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 114,800 | $ 166,900 | $ 407,500 | $ (73,900) |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | (12,900) | 12,800 | (21,400) | (1,800) |
Unrealized gain (loss) on derivative instruments | 2,500 | 1,800 | 5,700 | (10,600) |
Retirement plan and other activity | 0 | 100 | 200 | 200 |
Comprehensive income (loss) | 104,400 | 181,600 | 392,000 | (86,100) |
Comprehensive income attributable to noncontrolling interest | (200) | (100) | (400) | (100) |
Comprehensive income (loss) | $ 104,200 | $ 181,500 | $ 391,600 | $ (86,200) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid- In Capital | Retained Earnings | Accumulated Other Comprehensive Income (loss) | Non Controlling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock | $ 0.6 | |||||
Additional paid-in capital | 892.8 | |||||
Retained earnings | 287.3 | |||||
Accumulated other comprehensive loss, net | (72.7) | |||||
Noncontrolling interest | 0.2 | |||||
Beginning balance (in shares) at Dec. 31, 2019 | 61.4 | |||||
Beginning balance at Dec. 31, 2019 | 1,108.2 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Employee stock compensation (in shares) | 0.4 | |||||
Employee stock compensation | 59.4 | $ 59.4 | ||||
Deferred compensation | (2.6) | (3.8) | $ 1.2 | |||
Proceeds from stock issuances under employee plans (in shares) | 0.5 | |||||
Proceeds from stock issuances under employee plans | 32.6 | 32.6 | ||||
Cash dividends declared | (114.2) | (114.2) | ||||
Repurchase and retirement of common shares (in shares) | (0.6) | |||||
Repurchase and retirement of common shares | (49.5) | (8.2) | (41.3) | |||
Net income (loss) | (73.9) | (74) | $ 0.1 | |||
Other comprehensive income (loss) | (12.2) | $ (12.2) | ||||
Ending balance (in shares) at Sep. 30, 2020 | 61.7 | |||||
Ending balance at Sep. 30, 2020 | 947.8 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock | 0.6 | |||||
Additional paid-in capital | 921.3 | |||||
Retained earnings | (69.3) | |||||
Accumulated other comprehensive loss, net | (99.6) | |||||
Noncontrolling interest | 0.2 | |||||
Beginning balance (in shares) at Jun. 30, 2020 | 61.3 | |||||
Beginning balance at Jun. 30, 2020 | 753.2 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Employee stock compensation | 27.7 | 27.7 | ||||
Deferred compensation | (2) | (1.9) | (0.1) | |||
Proceeds from stock issuances under employee plans (in shares) | 0.4 | |||||
Proceeds from stock issuances under employee plans | 25.7 | 25.7 | ||||
Cash dividends declared | (38.2) | (38.2) | ||||
Repurchase and retirement of common shares | (0.2) | 0 | (0.2) | |||
Net income (loss) | 166.9 | 166.8 | 0.1 | |||
Other comprehensive income (loss) | 14.7 | 14.7 | ||||
Ending balance (in shares) at Sep. 30, 2020 | 61.7 | |||||
Ending balance at Sep. 30, 2020 | 947.8 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock | 0.6 | |||||
Additional paid-in capital | 972.8 | |||||
Retained earnings | 59 | |||||
Accumulated other comprehensive loss, net | (84.9) | |||||
Noncontrolling interest | 0.3 | |||||
Common stock | 0.6 | |||||
Additional paid-in capital | 983.9 | |||||
Retained earnings | 218.4 | |||||
Accumulated other comprehensive loss, net | (58.4) | |||||
Noncontrolling interest | 0.3 | |||||
Beginning balance (in shares) at Dec. 31, 2020 | 61.9 | |||||
Beginning balance at Dec. 31, 2020 | 1,144.8 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Employee stock compensation (in shares) | 0.4 | |||||
Employee stock compensation | 49.7 | 49.7 | ||||
Deferred compensation | 0.8 | 1.9 | (1.1) | |||
Proceeds from stock issuances under employee plans (in shares) | 1.7 | |||||
Proceeds from stock issuances under employee plans | 151.7 | 151.7 | ||||
Cash dividends declared | $ (115.2) | (115.2) | ||||
Repurchase and retirement of common shares (in shares) | (3.3) | (3.3) | ||||
Repurchase and retirement of common shares | $ (411.3) | (52.6) | (358.7) | |||
Net income (loss) | 407.5 | 407.1 | 0.4 | |||
Contributions | 1.2 | 1.2 | ||||
Other comprehensive income (loss) | (15.5) | (15.5) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 60.7 | |||||
Ending balance at Sep. 30, 2021 | 1,213.7 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock | 0.6 | |||||
Additional paid-in capital | 1,110 | |||||
Retained earnings | 73.5 | |||||
Accumulated other comprehensive loss, net | (63.5) | |||||
Noncontrolling interest | 1.7 | |||||
Beginning balance (in shares) at Jun. 30, 2021 | 60.6 | |||||
Beginning balance at Jun. 30, 2021 | 1,122.3 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Employee stock compensation (in shares) | 0.1 | |||||
Employee stock compensation | 20 | 20 | ||||
Deferred compensation | 0.4 | (1) | 1.4 | |||
Proceeds from stock issuances under employee plans (in shares) | 0 | |||||
Proceeds from stock issuances under employee plans | 5.6 | 5.6 | ||||
Cash dividends declared | (38.2) | (38.2) | ||||
Repurchase and retirement of common shares (in shares) | 0 | |||||
Repurchase and retirement of common shares | (0.8) | $ 0 | (0.8) | |||
Net income (loss) | 114.8 | $ 114.6 | $ 0.2 | |||
Other comprehensive income (loss) | (10.4) | $ (10.4) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 60.7 | |||||
Ending balance at Sep. 30, 2021 | 1,213.7 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock | 0.6 | |||||
Additional paid-in capital | 1,134.6 | |||||
Retained earnings | 150.5 | |||||
Accumulated other comprehensive loss, net | (73.9) | |||||
Noncontrolling interest | $ 1.9 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities: | ||
Net income (loss) | $ 407.5 | $ (73.9) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 178.2 | 190.5 |
Noncash compensation | 45.2 | 59.4 |
Noncash income from financial services | (5.7) | (15) |
Deferred income taxes | 17.1 | (94.1) |
Goodwill and other intangible asset impairments | 0 | 379.2 |
Changes in operating assets and liabilities: | ||
Trade receivables | 8.2 | (48.6) |
Inventories | (604) | (90.4) |
Accounts payable | 150.1 | 338.5 |
Accrued expenses | (95.8) | (19.4) |
Income taxes payable/receivable | 17.6 | 51.6 |
Prepaid expenses and others, net | 35 | (2.1) |
Net cash provided by operating activities | 153.4 | 675.7 |
Investing Activities: | ||
Purchase of property and equipment | (199.3) | (131.8) |
Investment in finance affiliate, net | 33.7 | 80.6 |
Investment in other affiliates, net | 0 | (2.5) |
Net cash used for investing activities | (165.6) | (53.7) |
Financing Activities: | ||
Borrowings under debt arrangements / finance lease obligations | 1,250.1 | 1,299.9 |
Repayments under debt arrangements / finance lease obligations | (1,176.4) | (1,131.6) |
Repurchase and retirement of common shares | (411.3) | (49.5) |
Cash dividends to shareholders | (115.2) | (114.2) |
Proceeds from stock issuances under employee plans | 151.7 | 32.6 |
Net cash provided by (used for) financing activities | (301.1) | 37.2 |
Impact of currency exchange rates on cash balances | (6.9) | 1.4 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (320.2) | 660.6 |
Cash, cash equivalents and restricted cash at beginning of period | 657.5 | 196.3 |
Cash, cash equivalents and restricted cash at end of period | 337.3 | 856.9 |
Noncash Activity: | ||
Interest paid on debt borrowings | 38 | 54.2 |
Income taxes paid | 86.3 | 5.6 |
Leased assets obtained for operating lease liabilities | 69.9 | 21.9 |
Cash and cash equivalents | 316.5 | 820.6 |
Other long-term assets | 20.8 | 36.3 |
Total | $ 337.3 | $ 856.9 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of presentation. The accompanying unaudited consolidated financial statements of Polaris Inc. (“Polaris” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and, therefore, do not include all information and disclosures of results of operations, financial position, and changes in cash flow in conformity with accounting principles generally accepted in the United States for complete financial statements. Accordingly, such statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 previously filed with the Securities and Exchange Commission (“SEC”). In the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, equity, and cash flows for the periods presented. Due to the seasonality trends for certain products and to certain changes in production and shipping cycles, results of such periods are not necessarily indicative of the results to be expected for the complete year. Fair value measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The Company utilizes the market approach to measure fair value for its non-qualified deferred compensation assets and liabilities, and the income approach for foreign currency contracts and 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 September 30, 2021 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 50.6 $ 50.6 $ — $ — Total assets at fair value $ 50.6 $ 50.6 $ — $ — Non-qualified deferred compensation liabilities $ (50.6) $ (50.6) $ — $ — Foreign exchange contracts, net (0.8) — (0.8) — Interest rate contracts, net (12.2) — (12.2) — Total liabilities at fair value $ (63.6) $ (50.6) $ (13.0) $ — 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 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. As of September 30, 2021 and December 31, 2020, the fair value of the Company’s long-term debt, finance lease obligations and notes payable was approximately $1,595.9 million and $1,552.3 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 $1,523.3 million and $1,450.7 million as of September 30, 2021 and December 31, 2020, respectively. Inventories. Inventory costs include material, labor and manufacturing overhead costs, including depreciation expense associated with the manufacture and distribution of the Company’s products. Inventories are stated at the lower of cost or net realizable value with substantially all inventories recorded using the first-in, first-out method. Finished goods include products that are completed and ready for sale or substantially completed as the product has gone through the primary manufacturing and assembly process. The major components of inventories are as follows (in millions): September 30, 2021 December 31, 2020 Raw materials and purchased components $ 759.5 $ 533.5 Service parts, garments and accessories 397.4 330.5 Finished goods 697.4 381.3 Less: reserves (80.7) (67.7) Inventories $ 1,773.6 $ 1,177.6 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): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Balance at beginning of period $ 142.2 $ 134.2 $ 140.8 $ 136.2 Additions charged to expense 26.9 37.2 97.3 91.2 Warranty claims paid, net (32.0) (30.8) (101.0) (86.8) Balance at end of period $ 137.1 $ 140.6 $ 137.1 $ 140.6 New accounting pronouncements. 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 income 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. The Company adopted ASU 2019-12 on January 1, 2021. The adoption of the ASU did not 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 exceptions 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 the Company’s contracts and hedging relationships that reference LIBOR. The Company is still evaluating whether to apply any of the expedients and/or exceptions included in these ASUs. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 2. Revenue Recognition The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or service to a customer. Revenue is measured based on the consideration that the Company expects to be entitled to in exchange for the goods or services transferred. Sales, value add, and other taxes that are collected from a customer concurrent with revenue-producing activities are excluded from revenue. 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. The following tables disaggregate the Company's revenue by major product type and geography (in millions): Three months ended September 30, 2021 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total Revenue by product type Wholegoods $ 924.8 $ 162.7 $ 120.0 $ — $ 183.6 $ 1,391.1 PG&A 283.5 31.7 26.5 226.7 — 568.4 Total revenue $ 1,208.3 $ 194.4 $ 146.5 $ 226.7 $ 183.6 $ 1,959.5 Revenue by geography United States $ 958.8 $ 132.9 $ 84.4 $ 215.9 $ 177.6 $ 1,569.6 Canada 116.9 9.8 0.3 10.8 6.0 143.8 EMEA 80.0 29.2 59.7 — — 168.9 APLA 52.6 22.5 2.1 — — 77.2 Total revenue $ 1,208.3 $ 194.4 $ 146.5 $ 226.7 $ 183.6 $ 1,959.5 Three months ended September 30, 2020 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total Revenue by product type Wholegoods $ 1,022.0 $ 137.7 $ 86.1 $ — $ 155.1 $ 1,400.9 PG&A 266.8 29.2 20.5 237.2 — 553.7 Total revenue $ 1,288.8 $ 166.9 $ 106.6 $ 237.2 $ 155.1 $ 1,954.6 Revenue by geography United States $ 1,090.5 $ 120.2 $ 52.9 $ 224.9 $ 152.9 $ 1,641.4 Canada 89.6 6.1 0.2 12.3 2.2 110.4 EMEA 71.2 21.6 52.9 — — 145.7 APLA 37.5 19.0 0.6 — — 57.1 Total revenue $ 1,288.8 $ 166.9 $ 106.6 $ 237.2 $ 155.1 $ 1,954.6 Nine months ended September 30, 2021 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total Revenue by product type Wholegoods $ 2,920.5 $ 480.8 $ 342.9 $ — $ 579.9 $ 4,324.1 PG&A 834.3 90.9 82.5 696.0 — 1,703.7 Total revenue $ 3,754.8 $ 571.7 $ 425.4 $ 696.0 $ 579.9 $ 6,027.8 Revenue by geography United States $ 2,949.4 $ 361.6 $ 216.6 $ 665.0 $ 562.2 $ 4,754.8 Canada 351.9 25.4 2.0 31.0 17.5 427.8 EMEA 282.6 116.4 200.1 — 0.2 599.3 APLA 170.9 68.3 6.7 — — 245.9 Total revenue $ 3,754.8 $ 571.7 $ 425.4 $ 696.0 $ 579.9 $ 6,027.8 Nine months ended September 30, 2020 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total Revenue by product type Wholegoods $ 2,404.0 $ 365.8 $ 225.9 $ — $ 441.8 $ 3,437.5 PG&A 661.4 69.0 56.9 646.8 — 1,434.1 Total revenue $ 3,065.4 $ 434.8 $ 282.8 $ 646.8 $ 441.8 $ 4,871.6 Revenue by geography United States $ 2,568.8 $ 288.2 $ 140.5 $ 617.7 $ 434.0 $ 4,049.2 Canada 194.4 14.9 1.8 29.1 7.8 248.0 EMEA 196.0 77.5 137.8 — — 411.3 APLA 106.2 54.2 2.7 — — 163.1 Total revenue $ 3,065.4 $ 434.8 $ 282.8 $ 646.8 $ 441.8 $ 4,871.6 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. Payment terms vary by customer and most of the Company’s sales are financed by the customer under floorplan financing arrangements whereby the Company receives payment within a few days of shipment of the product. When the right of return exists, the Company adjusts the consideration for the estimated effect of returns. The Company estimates 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. 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, parts, garments or accessories has transferred to the customer as an expense in cost of sales. Extended Service Contracts. The Company sells separately-priced service contracts that extend mechanical breakdown coverages beyond its base limited warranty agreements to vehicle owners (“ESCs”). 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 it offers to its customers and their customers. Payment terms vary by customer but typically range from due upon delivery (or point-of-sale) to 180 days after delivery. When the Company gives its customers the right to return eligible parts and accessories, it estimates the expected returns based on an analysis of historical experience. The Company adjusts its estimate of revenue at the earlier of when the most likely amount of consideration it expects to receive changes or when the consideration becomes fixed. Service revenue. The Company offers installation services for parts that it sells. Service revenues are recognized upon completion of the service. Depending on the terms of the arrangement, the Company may also defer the recognition of a portion of the consideration received because it has to satisfy a future obligation. The Company uses an observable price to determine the stand-alone selling price for separate performance obligations. The Company has elected to recognize the cost for freight and shipping when control over parts, garments or accessories has transferred to the customer as an expense in cost of sales. Contract Liabilities Contract liabilities relate to deferred revenue recognized for cash consideration received at contract inception in advance of the Company's performance under the respective contract and generally relate to the sale of separately priced extended service contracts (“ESCs”). The Company finances its self-insured risks related to 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 $43.7 million of the unearned amount over the next 12 months and $81.8 million thereafter. The activity in the deferred revenue reserve during the periods presented was as follows (in millions): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Balance at beginning of period $ 123.7 $ 89.8 $ 107.1 $ 81.6 New contracts sold 13.5 15.8 52.1 42.6 Less: reductions for revenue recognized (11.7) (7.3) (33.7) (25.9) Balance at end of period (1) $ 125.5 $ 98.3 $ 125.5 $ 98.3 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation 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-based compensation expense for those awards expected to vest. Total share-based compensation expenses were comprised as follows (in millions): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Option awards $ 2.3 $ 6.3 $ 7.6 $ 15.9 Other share-based awards 13.1 17.6 31.2 34.8 Total share-based compensation before tax 15.4 23.9 38.8 50.7 Tax benefit 3.7 5.7 9.3 12.1 Total share-based compensation expense included in net income (loss) $ 11.7 $ 18.2 $ 29.5 $ 38.6 |
Financing Agreement
Financing Agreement | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Financing Agreement | Financing Agreements 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 as of September 30, 2021 Maturity September 30, 2021 December 31, 2020 Revolving loan facility 0.97% June 2026 $ 210.0 $ — Term loan facility 1.08% June 2026 888.0 940.0 Senior notes—fixed rate 4.60% May 2021 — 75.0 Senior notes—fixed rate 4.23% July 2028 350.0 350.0 Finance lease obligations 5.22% Various through 2029 14.1 16.2 Notes payable and other 4.24% Various through 2030 68.3 75.0 Debt issuance costs (7.1) (5.5) Total debt, finance lease obligations, and notes payable $ 1,523.3 $ 1,450.7 Less: current maturities 53.3 142.1 Total long-term debt, finance lease obligations, and notes payable $ 1,470.0 $ 1,308.6 In December 2010, the Company entered an unsecured Master Note Purchase Agreement, which has been amended and supplemented, under which it has issued senior notes. In May 2011, the Company issued $75 million of unsecured senior notes due May 2021. The Senior Notes were were fully repaid in May 2021. In July 2018, the Company issued $350 million of unsecured senior notes due July 2028 which remain outstanding. The Company maintains an unsecured credit facility which consists of a term loan facility (the “Term Loan Facility”) and a revolving loan facility (the “Revolving Loan Facility”). In July 2018, the Company amended its unsecured credit facility to increase its Term Loan Facility to $1,180 million, of which $888 million was outstanding as of September 30, 2021. In June 2021, the Company further amended its unsecured credit facility to increase its Revolving Loan Facility to $1.0 billion and extend the expiration date to June 2026. 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 $45 million over the next 12 months. These payments are classified as current maturities in the consolidated balance sheets. The credit facility and the Master Note Purchase Agreement contain covenants that require the Company to maintain certain financial ratios, including minimum interest coverage and maximum leverage ratios. The agreements also require the Company to maintain an interest coverage ratio of not less than 3.00 to 1.00 and a leverage ratio of not more than 3.50 to 1.00 on a rolling four quarter basis. The Company was in compliance with all such covenants as of September 30, 2021. 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, 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 $61.0 million was outstanding as of September 30, 2021. 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 the Company built the Huntsville, Alabama manufacturing facility in 2016. The original mortgage note payable was for $14.5 million, of which $7.3 million was outstanding as of September 30, 2021. 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. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets In 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. Goodwill and other intangible assets, net of accumulated amortization, as of September 30, 2021 and December 31, 2020 are as follows (in millions): September 30, 2021 December 31, 2020 Goodwill $ 393.2 $ 397.3 Other intangible assets, net 660.0 686.4 Total goodwill and other intangible assets, net $ 1,053.2 $ 1,083.7 The changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2021 and 2020 are as follows (in millions): ORV/Snowmobiles Motorcycles Global Adjacent Markets Aftermarket Boats Total Polaris 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 Currency translation effect on foreign goodwill balances — — (4.1) — — (4.1) Goodwill 72.9 5.2 88.0 270.3 227.1 663.5 Accumulated goodwill impairment losses — — — (270.3) — (270.3) Balance as of September 30, 2021 $ 72.9 $ 5.2 $ 88.0 $ — $ 227.1 $ 393.2 ORV/Snowmobiles Motorcycles Global Adjacent Markets Aftermarket Boats Total Polaris Goodwill 72.0 5.2 85.2 270.4 227.1 $ 659.9 Accumulated goodwill impairment losses — — — — — — 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 0.2 — 3.2 (0.1) — 3.3 Goodwill 72.2 5.2 88.4 270.3 227.1 663.2 Accumulated goodwill impairment losses — — — (270.3) — (270.3) Balance as of September 30, 2020 $ 72.2 $ 5.2 $ 88.4 $ — $ 227.1 $ 392.9 The components of other intangible assets were as follows ($ in millions): Weighted-average useful life (years) September 30, 2021 December 31, 2020 Non-amortizable—indefinite lived: Brand/trade names $ 333.6 $ 334.3 Amortizable: Non-compete agreements 4 2.6 2.6 Dealer/customer related 17 460.3 460.3 Developed technology 5 9.8 9.9 Total amortizable 16 472.7 472.8 Less: Accumulated amortization (146.3) (120.7) Net amortized other intangible assets 326.4 352.1 Total other intangible assets, net $ 660.0 $ 686.4 Amortization expense for intangible assets was $8.5 million and $8.7 million for the three months ended September 30, 2021 and 2020, respectively, and $25.7 million and $27.5 million for the nine months ended September 30, 2021 and 2020, respectively. Estimated amortization expense for the remainder of 2021 through 2026 is as follows: 2021 (remainder), $7.6 million; 2022, $28.3 million; 2023, $25.7 million; 2024, $25.0 million; 2025, $25.0 million; 2026, $23.8 million; and after 2026, $191.0 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. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity During the nine months ended September 30, 2021, the Company paid $411.3 million to repurchase approximately 3.3 million shares of its common stock. As of September 30, 2021, the Board of Directors has authorized the Company to repurchase up to an additional $888.8 million of the Company’s common stock. The repurchase of any or all such shares authorized for repurchase will be governed by applicable SEC rules and dependent on management’s assessment of market conditions and subject to the restrictions on share repurchases set forth in the incremental amendment. The Company paid a regular cash dividend of $0.63 per share on September 15, 2021 to holders of record at the close of business on September 1, 2021. Cash dividends declared and paid per common share for the three and nine months ended September 30, 2021 and 2020, were as follows: Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Cash dividends declared and paid per common share $ 0.63 $ 0.62 $ 1.89 $ 1.86 Net income (loss) per share Basic income (loss) per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period, including shares earned under the Deferred Compensation Plan for Directors (“Director Plan”), the ESOP and deferred stock units under the 2007 Omnibus Incentive Plan (“Omnibus Plan”). Diluted income (loss) 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): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Weighted average number of common shares outstanding 60.6 61.5 61.1 61.4 Director Plan and deferred stock units 0.2 0.2 0.2 0.2 ESOP 0.2 0.2 0.1 0.2 Common shares outstanding—basic 61.0 61.9 61.4 61.8 Dilutive effect of restricted stock units 0.7 0.5 0.7 — Dilutive effect of stock option awards 0.6 0.4 0.8 — Common and potential common shares outstanding—diluted 62.3 62.8 62.9 61.8 During the three and nine months ended September 30, 2021, the number of options that were not included in the computation of diluted income (loss) per share because the option exercise price was greater than the market price, and therefore, the effect would have been anti-dilutive were 0.8 million and 0.8 million, respectively, compared to 2.2 million and 5.0 million for the same periods in 2020. As a result of the Company’s net loss during the nine month period ended September 30, 2020, an additional 0.7 million of outstanding stock options and certain share-based awards under the Omnibus Plan were not included in the computation of diluted income (loss) per share because the effect would have been anti-dilutive. Accumulated other comprehensive loss Changes in the accumulated other comprehensive loss balance are as follows (in millions): Foreign Currency Translation Cash Flow Retirement Plan and Other Activity Accumulated Other Balance as of December 31, 2020 $ (39.1) $ (15.5) $ (3.8) $ (58.4) Reclassification to the statement of income — 6.8 0.2 7.0 Change in fair value (21.4) (1.1) — (22.5) Balance as of September 30, 2021 $ (60.5) $ (9.8) $ (3.6) $ (73.9) The table below provides the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the statements of income (loss) for cash flow derivatives designated as hedging instruments and retirement plan activity for the three and nine months ended September 30, 2021 and 2020 (in millions): Derivatives in Cash Flow Hedging Relationships and Other Activity Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Foreign currency contracts Other (income) expense, net $ (0.5) $ 1.0 $ (1.7) $ 4.5 Foreign currency contracts Cost of sales 0.2 (0.7) 1.0 (1.4) Interest rate contracts Interest expense (2.0) (2.0) (6.1) (4.1) Retirement plan activity Operating expenses — (0.1) (0.2) (0.2) Total $ (2.3) $ (1.8) $ (7.0) $ (1.2) The net amount of the existing gains or losses as of September 30, 2021 that is expected to be reclassified into the statements of income (loss) within the next 12 months is not expected to be material. See Note 9 for further information regarding derivative activities. |
Financial Services Arrangements
Financial Services Arrangements | 9 Months Ended |
Sep. 30, 2021 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Financial Services Arrangements | Financial Services Arrangements Polaris Acceptance, a joint venture between the Company 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 the Company’s United States sales of snowmobiles, off-road vehicles (“ORV”), motorcycles, and related PG&A, whereby the Company receives payment within a few days of shipment of the product. The Company’s subsidiary has a 50 percent equity interest in Polaris Acceptance. Polaris Acceptance sells a majority of its receivable portfolio to a securitization facility (the “Securitization Facility”) arranged by Wells Fargo. The sale of receivables from Polaris Acceptance to the Securitization Facility is accounted for in Polaris Acceptance’s financial statements as a “true-sale” under Accounting Standards Codification (“ASC”) Topic 860. The Company’s allocable share of the income of Polaris Acceptance has been included as a component of income from financial services in the accompanying consolidated statements of income. The partnership agreement is effective through February 2027. The Company’s total investment in Polaris Acceptance of $31.4 million as of September 30, 2021 is accounted for under the equity method and is recorded in investment in finance affiliate in the accompanying consolidated balance sheets. As of September 30, 2021, the outstanding amount of net receivables financed for dealers under this arrangement was $482.8 million, which included $258.4 million in the Polaris Acceptance portfolio and $224.4 million of receivables within the Securitization Facility (“Securitized Receivables”). The Company 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 2021, the potential 15 percent aggregate repurchase obligation is approximately $138.7 million. A subsidiary of TCF Financial Corporation (“TCF”) finances a portion of the Company’s United States sales of boats whereby the Company receives payment within a few days of shipment of the product. The Company has agreed to repurchase products repossessed by TCF up to a maximum of 100 percent of the aggregate outstanding TCF receivables balance. As of September 30, 2021, the potential aggregate repurchase obligation was approximately $71.8 million. The Company has other financing arrangements related to its foreign subsidiaries in which it has agreed to repurchase repossessed products. For calendar year 2021, the potential aggregate repurchase obligations are approximately $27.8 million. The Company’s financial exposure under these repurchase agreements is limited to the difference between the amounts unpaid by the dealer or distributor 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 these agreements during the periods presented. The Company has agreements with third-party financing companies to provide financing options to end consumers of the Company’s products. The Company has no material contingent liabilities for residual value or credit collection risk under these agreements. The Company’s income generated from these agreements has been included as a component of income from financial services in the accompanying consolidated statements of income. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
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. As of September 30, 2021, the Company had an accrual of $79.1 million for the probable payment of pending claims related to product liability litigation associated with the Company’s 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 September 30, 2021, the Company is party to four putative class actions pending against the Company in the United States. These class actions allege that the Company violated various California consumer protection laws related to rollover protection structure certification in California, Oregon, Nevada, and Texas. 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 of potential outcomes of actual and potential claims, the uncertainty of future rulings, the behavior or incentives of adverse parties, and other factors outside of the control of the Company. Accordingly, the Company’s loss reserve may change from time to time, and actual losses could exceed the amounts accrued by an amount that could be material to the Company’s consolidated financial position, results of operations, or cash flows in any particular reporting period. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2021 | |
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. As of September 30, 2021 and December 31, 2020, the Company had the following open foreign currency contracts (in millions): September 30, 2021 December 31, 2020 Foreign Currency Notional Amounts Net Unrealized Notional Amounts Net Unrealized Australian Dollar $ 16.1 $ 0.5 $ 26.0 $ (0.5) Canadian Dollar 126.4 (0.1) 169.8 (2.8) Mexican Peso 53.6 (1.2) 13.5 1.0 Total $ 196.1 $ (0.8) $ 209.3 $ (2.3) These contracts, with maturities through September 2022, 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. As of September 30, 2021 and December 31, 2020, the Company had the following open interest rate swap contracts (in millions): September 30, 2021 December 31, 2020 Effective Date Termination Date Notional Amounts Net Unrealized Notional Amounts Net Unrealized May 2, 2018 May 4, 2021 $ — $ — $ 25.0 $ (0.2) September 30, 2019 September 30, 2023 150.0 (7.9) 150.0 (11.3) March 3, 2020 February 28, 2023 400.0 (4.3) 400.0 (6.6) Total $ 550.0 $ (12.2) $ 575.0 $ (18.1) 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 September 30, 2021 and December 31, 2020 (in millions): Carrying Values of Derivative Instruments as of September 30, 2021 Fair Value— Fair Value— Derivative Net Derivatives designated as hedging instruments Foreign exchange contracts $ 1.2 $ (2.0) $ (0.8) Interest rate contracts — (12.2) (12.2) Total derivatives designated as hedging instruments $ 1.2 $ (14.2) $ (13.0) 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) 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 statement of income. The amount of gains (losses), net of tax, related to the effective portion of derivative instruments designated as cash flow hedges included in accumulated other comprehensive loss for the three and nine months ended September 30, 2021 were $2.5 million and $5.7 million, respectively, compared to $1.8 million and $(10.6) million for the same respective periods in 2020. See Note 6 for information about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the statements of income for derivative instruments designated as hedging instruments. The ineffective portion of foreign currency contracts was not material for the three and nine month periods ended September 30, 2021. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Reporting The Company’s reportable segments are based on the Company’s method of internal reporting, which generally segregates the operating segments by product line, inclusive of wholegoods and PG&A. 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. The ORV/Snowmobiles 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 segments, including certain unallocated manufacturing costs. Segment sales and gross profit data are summarized as follows (in millions): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Sales ORV/Snowmobiles $ 1,208.3 $ 1,288.8 $ 3,754.8 $ 3,065.4 Motorcycles 194.4 166.9 571.7 434.8 Global Adjacent Markets 146.5 106.6 425.4 282.8 Aftermarket 226.7 237.2 696.0 646.8 Boats 183.6 155.1 579.9 441.8 Total sales $ 1,959.5 $ 1,954.6 $ 6,027.8 $ 4,871.6 Gross profit ORV/Snowmobiles $ 260.3 $ 377.8 $ 952.3 $ 831.2 Motorcycles 17.8 15.5 49.7 18.9 Global Adjacent Markets 40.9 31.5 115.5 75.2 Aftermarket 60.1 63.7 184.2 157.6 Boats 41.2 33.3 135.0 81.6 Corporate 45.3 12.8 60.8 (4.3) Total gross profit $ 465.6 $ 534.6 $ 1,497.5 $ 1,160.2 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On October 26, 2021 the Company announced plans to divest its Global Electric Motorcar (GEM) and Taylor-Dunn businesses in an effort to more strategically allocate the Company’s resources. The Company expects to complete the divestiture by the end of the calendar year. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation. The accompanying unaudited consolidated financial statements of Polaris Inc. (“Polaris” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and, therefore, do not include all information and disclosures of results of operations, financial position, and changes in cash flow in conformity with accounting principles generally accepted in the United States for complete financial statements. Accordingly, such statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 previously filed with the Securities and Exchange Commission (“SEC”). In the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, equity, and cash flows for the periods presented. Due to the seasonality trends for certain products and to certain changes in production and shipping cycles, results of such periods are not necessarily indicative of the results to be expected for the complete year. |
Fair value measurements | Fair value measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The Company utilizes the market approach to measure fair value for its non-qualified deferred compensation assets and liabilities, and the income approach for foreign currency contracts and 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. |
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 or net realizable value with substantially all inventories recorded using the first-in, first-out method. |
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. |
New Accounting Pronouncements | New accounting pronouncements. 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 income 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. The Company adopted ASU 2019-12 on January 1, 2021. The adoption of the ASU did not 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 exceptions 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 the Company’s contracts and hedging relationships that reference LIBOR. The Company is still evaluating whether to apply any of the expedients and/or exceptions included in these ASUs. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions): Fair Value Measurements as of September 30, 2021 Asset (Liability) Total Level 1 Level 2 Level 3 Non-qualified deferred compensation assets $ 50.6 $ 50.6 $ — $ — Total assets at fair value $ 50.6 $ 50.6 $ — $ — Non-qualified deferred compensation liabilities $ (50.6) $ (50.6) $ — $ — Foreign exchange contracts, net (0.8) — (0.8) — Interest rate contracts, net (12.2) — (12.2) — Total liabilities at fair value $ (63.6) $ (50.6) $ (13.0) $ — 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) $ — |
Schedule of major components of inventories | The major components of inventories are as follows (in millions): September 30, 2021 December 31, 2020 Raw materials and purchased components $ 759.5 $ 533.5 Service parts, garments and accessories 397.4 330.5 Finished goods 697.4 381.3 Less: reserves (80.7) (67.7) Inventories $ 1,773.6 $ 1,177.6 |
Schedule of activity in the warranty reserve | The activity in the warranty reserve during the periods presented was as follows (in millions): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Balance at beginning of period $ 142.2 $ 134.2 $ 140.8 $ 136.2 Additions charged to expense 26.9 37.2 97.3 91.2 Warranty claims paid, net (32.0) (30.8) (101.0) (86.8) Balance at end of period $ 137.1 $ 140.6 $ 137.1 $ 140.6 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate the Company's revenue by major product type and geography (in millions): Three months ended September 30, 2021 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total Revenue by product type Wholegoods $ 924.8 $ 162.7 $ 120.0 $ — $ 183.6 $ 1,391.1 PG&A 283.5 31.7 26.5 226.7 — 568.4 Total revenue $ 1,208.3 $ 194.4 $ 146.5 $ 226.7 $ 183.6 $ 1,959.5 Revenue by geography United States $ 958.8 $ 132.9 $ 84.4 $ 215.9 $ 177.6 $ 1,569.6 Canada 116.9 9.8 0.3 10.8 6.0 143.8 EMEA 80.0 29.2 59.7 — — 168.9 APLA 52.6 22.5 2.1 — — 77.2 Total revenue $ 1,208.3 $ 194.4 $ 146.5 $ 226.7 $ 183.6 $ 1,959.5 Three months ended September 30, 2020 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total Revenue by product type Wholegoods $ 1,022.0 $ 137.7 $ 86.1 $ — $ 155.1 $ 1,400.9 PG&A 266.8 29.2 20.5 237.2 — 553.7 Total revenue $ 1,288.8 $ 166.9 $ 106.6 $ 237.2 $ 155.1 $ 1,954.6 Revenue by geography United States $ 1,090.5 $ 120.2 $ 52.9 $ 224.9 $ 152.9 $ 1,641.4 Canada 89.6 6.1 0.2 12.3 2.2 110.4 EMEA 71.2 21.6 52.9 — — 145.7 APLA 37.5 19.0 0.6 — — 57.1 Total revenue $ 1,288.8 $ 166.9 $ 106.6 $ 237.2 $ 155.1 $ 1,954.6 Nine months ended September 30, 2021 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total Revenue by product type Wholegoods $ 2,920.5 $ 480.8 $ 342.9 $ — $ 579.9 $ 4,324.1 PG&A 834.3 90.9 82.5 696.0 — 1,703.7 Total revenue $ 3,754.8 $ 571.7 $ 425.4 $ 696.0 $ 579.9 $ 6,027.8 Revenue by geography United States $ 2,949.4 $ 361.6 $ 216.6 $ 665.0 $ 562.2 $ 4,754.8 Canada 351.9 25.4 2.0 31.0 17.5 427.8 EMEA 282.6 116.4 200.1 — 0.2 599.3 APLA 170.9 68.3 6.7 — — 245.9 Total revenue $ 3,754.8 $ 571.7 $ 425.4 $ 696.0 $ 579.9 $ 6,027.8 Nine months ended September 30, 2020 ORV / Snowmobiles Motorcycles Global Adj. Markets Aftermarket Boats Total Revenue by product type Wholegoods $ 2,404.0 $ 365.8 $ 225.9 $ — $ 441.8 $ 3,437.5 PG&A 661.4 69.0 56.9 646.8 — 1,434.1 Total revenue $ 3,065.4 $ 434.8 $ 282.8 $ 646.8 $ 441.8 $ 4,871.6 Revenue by geography United States $ 2,568.8 $ 288.2 $ 140.5 $ 617.7 $ 434.0 $ 4,049.2 Canada 194.4 14.9 1.8 29.1 7.8 248.0 EMEA 196.0 77.5 137.8 — — 411.3 APLA 106.2 54.2 2.7 — — 163.1 Total revenue $ 3,065.4 $ 434.8 $ 282.8 $ 646.8 $ 441.8 $ 4,871.6 |
Deferred Revenue, by Arrangement, Disclosure | The activity in the deferred revenue reserve during the periods presented was as follows (in millions): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Balance at beginning of period $ 123.7 $ 89.8 $ 107.1 $ 81.6 New contracts sold 13.5 15.8 52.1 42.6 Less: reductions for revenue recognized (11.7) (7.3) (33.7) (25.9) Balance at end of period (1) $ 125.5 $ 98.3 $ 125.5 $ 98.3 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of share-based compensation expenses | Total share-based compensation expenses were comprised as follows (in millions): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Option awards $ 2.3 $ 6.3 $ 7.6 $ 15.9 Other share-based awards 13.1 17.6 31.2 34.8 Total share-based compensation before tax 15.4 23.9 38.8 50.7 Tax benefit 3.7 5.7 9.3 12.1 Total share-based compensation expense included in net income (loss) $ 11.7 $ 18.2 $ 29.5 $ 38.6 |
Financing Agreement (Tables)
Financing Agreement (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Finance Lease Obligations | 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 as of September 30, 2021 Maturity September 30, 2021 December 31, 2020 Revolving loan facility 0.97% June 2026 $ 210.0 $ — Term loan facility 1.08% June 2026 888.0 940.0 Senior notes—fixed rate 4.60% May 2021 — 75.0 Senior notes—fixed rate 4.23% July 2028 350.0 350.0 Finance lease obligations 5.22% Various through 2029 14.1 16.2 Notes payable and other 4.24% Various through 2030 68.3 75.0 Debt issuance costs (7.1) (5.5) Total debt, finance lease obligations, and notes payable $ 1,523.3 $ 1,450.7 Less: current maturities 53.3 142.1 Total long-term debt, finance lease obligations, and notes payable $ 1,470.0 $ 1,308.6 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets and goodwill | Goodwill and other intangible assets, net of accumulated amortization, as of September 30, 2021 and December 31, 2020 are as follows (in millions): September 30, 2021 December 31, 2020 Goodwill $ 393.2 $ 397.3 Other intangible assets, net 660.0 686.4 Total goodwill and other intangible assets, net $ 1,053.2 $ 1,083.7 |
Schedule of changes in carrying amount of goodwill | The changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2021 and 2020 are as follows (in millions): ORV/Snowmobiles Motorcycles Global Adjacent Markets Aftermarket Boats Total Polaris 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 Currency translation effect on foreign goodwill balances — — (4.1) — — (4.1) Goodwill 72.9 5.2 88.0 270.3 227.1 663.5 Accumulated goodwill impairment losses — — — (270.3) — (270.3) Balance as of September 30, 2021 $ 72.9 $ 5.2 $ 88.0 $ — $ 227.1 $ 393.2 ORV/Snowmobiles Motorcycles Global Adjacent Markets Aftermarket Boats Total Polaris Goodwill 72.0 5.2 85.2 270.4 227.1 $ 659.9 Accumulated goodwill impairment losses — — — — — — 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 0.2 — 3.2 (0.1) — 3.3 Goodwill 72.2 5.2 88.4 270.3 227.1 663.2 Accumulated goodwill impairment losses — — — (270.3) — (270.3) Balance as of September 30, 2020 $ 72.2 $ 5.2 $ 88.4 $ — $ 227.1 $ 392.9 |
Schedule of components of other intangible assets | The components of other intangible assets were as follows ($ in millions): Weighted-average useful life (years) September 30, 2021 December 31, 2020 Non-amortizable—indefinite lived: Brand/trade names $ 333.6 $ 334.3 Amortizable: Non-compete agreements 4 2.6 2.6 Dealer/customer related 17 460.3 460.3 Developed technology 5 9.8 9.9 Total amortizable 16 472.7 472.8 Less: Accumulated amortization (146.3) (120.7) Net amortized other intangible assets 326.4 352.1 Total other intangible assets, net $ 660.0 $ 686.4 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of cash dividends declared per common share | Cash dividends declared and paid per common share for the three and nine months ended September 30, 2021 and 2020, were as follows: Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Cash dividends declared and paid per common share $ 0.63 $ 0.62 $ 1.89 $ 1.86 |
Schedule of reconciliation of weighted average number of shares | A reconciliation of these amounts is as follows (in millions): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Weighted average number of common shares outstanding 60.6 61.5 61.1 61.4 Director Plan and deferred stock units 0.2 0.2 0.2 0.2 ESOP 0.2 0.2 0.1 0.2 Common shares outstanding—basic 61.0 61.9 61.4 61.8 Dilutive effect of restricted stock units 0.7 0.5 0.7 — Dilutive effect of stock option awards 0.6 0.4 0.8 — Common and potential common shares outstanding—diluted 62.3 62.8 62.9 61.8 |
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 Retirement Plan and Other Activity Accumulated Other Balance as of December 31, 2020 $ (39.1) $ (15.5) $ (3.8) $ (58.4) Reclassification to the statement of income — 6.8 0.2 7.0 Change in fair value (21.4) (1.1) — (22.5) Balance as of September 30, 2021 $ (60.5) $ (9.8) $ (3.6) $ (73.9) |
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 statements of income (loss) for cash flow derivatives designated as hedging instruments and retirement plan activity for the three and nine months ended September 30, 2021 and 2020 (in millions): Derivatives in Cash Flow Hedging Relationships and Other Activity Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Foreign currency contracts Other (income) expense, net $ (0.5) $ 1.0 $ (1.7) $ 4.5 Foreign currency contracts Cost of sales 0.2 (0.7) 1.0 (1.4) Interest rate contracts Interest expense (2.0) (2.0) (6.1) (4.1) Retirement plan activity Operating expenses — (0.1) (0.2) (0.2) Total $ (2.3) $ (1.8) $ (7.0) $ (1.2) |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of open foreign currency contracts | September 30, 2021 and December 31, 2020, the Company had the following open foreign currency contracts (in millions): September 30, 2021 December 31, 2020 Foreign Currency Notional Amounts Net Unrealized Notional Amounts Net Unrealized Australian Dollar $ 16.1 $ 0.5 $ 26.0 $ (0.5) Canadian Dollar 126.4 (0.1) 169.8 (2.8) Mexican Peso 53.6 (1.2) 13.5 1.0 Total $ 196.1 $ (0.8) $ 209.3 $ (2.3) |
Schedule of open interest rate swap contracts | September 30, 2021 and December 31, 2020, the Company had the following open interest rate swap contracts (in millions): September 30, 2021 December 31, 2020 Effective Date Termination Date Notional Amounts Net Unrealized Notional Amounts Net Unrealized May 2, 2018 May 4, 2021 $ — $ — $ 25.0 $ (0.2) September 30, 2019 September 30, 2023 150.0 (7.9) 150.0 (11.3) March 3, 2020 February 28, 2023 400.0 (4.3) 400.0 (6.6) Total $ 550.0 $ (12.2) $ 575.0 $ (18.1) |
Schedule of carrying values of derivative instruments | The table below summarizes the carrying values of derivative instruments as of September 30, 2021 and December 31, 2020 (in millions): Carrying Values of Derivative Instruments as of September 30, 2021 Fair Value— Fair Value— Derivative Net Derivatives designated as hedging instruments Foreign exchange contracts $ 1.2 $ (2.0) $ (0.8) Interest rate contracts — (12.2) (12.2) Total derivatives designated as hedging instruments $ 1.2 $ (14.2) $ (13.0) 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) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | egment sales and gross profit data are summarized as follows (in millions): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Sales ORV/Snowmobiles $ 1,208.3 $ 1,288.8 $ 3,754.8 $ 3,065.4 Motorcycles 194.4 166.9 571.7 434.8 Global Adjacent Markets 146.5 106.6 425.4 282.8 Aftermarket 226.7 237.2 696.0 646.8 Boats 183.6 155.1 579.9 441.8 Total sales $ 1,959.5 $ 1,954.6 $ 6,027.8 $ 4,871.6 Gross profit ORV/Snowmobiles $ 260.3 $ 377.8 $ 952.3 $ 831.2 Motorcycles 17.8 15.5 49.7 18.9 Global Adjacent Markets 40.9 31.5 115.5 75.2 Aftermarket 60.1 63.7 184.2 157.6 Boats 41.2 33.3 135.0 81.6 Corporate 45.3 12.8 60.8 (4.3) Total gross profit $ 465.6 $ 534.6 $ 1,497.5 $ 1,160.2 |
Significant Accounting Polici_4
Significant Accounting Policies Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 48.3 | |
Debt and capital lease obligations | $ 1,523.3 | 1,450.7 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 1,595.9 | 1,552.3 |
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt and capital lease obligations | 1,523.3 | 1,450.7 |
Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 50.6 | 48.3 |
Non-qualified deferred compensation liabilities | (48.3) | |
Total liabilities at fair value | (63.6) | (68.7) |
Fair value, measurements, recurring | Supplemental Employee Retirement Plans, Defined Benefit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation assets | 50.6 | 48.3 |
Non-qualified deferred compensation liabilities | (50.6) | |
Fair value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 50.6 | |
Total liabilities at fair value | (50.6) | (48.3) |
Fair value, measurements, recurring | Level 1 | Supplemental Employee Retirement Plans, Defined Benefit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation assets | 50.6 | 48.3 |
Non-qualified deferred compensation liabilities | (50.6) | (48.3) |
Fair value, measurements, recurring | Level 2 | ||
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 | (13) | (20.4) |
Foreign currency contracts | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (0.8) | (2.3) |
Foreign currency contracts | Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (0.8) | (2.3) |
Interest rate swap | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (12.2) | (18.1) |
Interest rate swap | Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ (12.2) | $ (18.1) |
Significant Accounting Polici_5
Significant Accounting Policies Major Components of Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Raw materials and purchased components | $ 759.5 | $ 533.5 |
Service parts, garments and accessories | 397.4 | 330.5 |
Finished goods | 697.4 | 381.3 |
Less: reserves | (80.7) | (67.7) |
Inventories | $ 1,773.6 | $ 1,177.6 |
Significant Accounting Polici_6
Significant Accounting Policies Activity in Polaris Accrued Warranty Reserve (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Activity in Product Warranty Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 142.2 | $ 134.2 | $ 140.8 | $ 136.2 |
Additions charged to expense | 26.9 | 37.2 | 97.3 | 91.2 |
Warranty claims paid, net | (32) | (30.8) | (101) | (86.8) |
Balance at end of period | $ 137.1 | $ 140.6 | $ 137.1 | $ 140.6 |
Significant Accounting Polici_7
Significant Accounting Policies Additional Information (Details) - Transamerican Auto Parts - Vehicles And Boats | 9 Months Ended |
Sep. 30, 2021 | |
Minimum | |
Product Warranty Liability [Line Items] | |
Period of warranties provided by Polaris | 6 months |
Maximum | |
Product Warranty Liability [Line Items] | |
Period of warranties provided by Polaris | 10 years |
Revenue Recognition - Contract
Revenue Recognition - Contract Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,959.5 | $ 1,954.6 | $ 6,027.8 | $ 4,871.6 |
ORV/Snowmobiles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,208.3 | 1,288.8 | 3,754.8 | 3,065.4 |
Motorcycles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 194.4 | 166.9 | 571.7 | 434.8 |
Global Adjacent Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 146.5 | 106.6 | 425.4 | 282.8 |
Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 226.7 | 237.2 | 696 | 646.8 |
Boats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 183.6 | 155.1 | 579.9 | 441.8 |
Wholegoods | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,391.1 | 1,400.9 | 4,324.1 | 3,437.5 |
Wholegoods | ORV/Snowmobiles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 924.8 | 1,022 | 2,920.5 | 2,404 |
Wholegoods | Motorcycles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 162.7 | 137.7 | 480.8 | 365.8 |
Wholegoods | Global Adjacent Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 120 | 86.1 | 342.9 | 225.9 |
Wholegoods | Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Wholegoods | Boats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 183.6 | 155.1 | 579.9 | 441.8 |
PG&A | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 568.4 | 553.7 | 1,703.7 | 1,434.1 |
PG&A | ORV/Snowmobiles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 283.5 | 266.8 | 834.3 | 661.4 |
PG&A | Motorcycles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 31.7 | 29.2 | 90.9 | 69 |
PG&A | Global Adjacent Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 26.5 | 20.5 | 82.5 | 56.9 |
PG&A | Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 226.7 | 237.2 | 696 | 646.8 |
PG&A | Boats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,569.6 | 1,641.4 | 4,754.8 | 4,049.2 |
UNITED STATES | ORV/Snowmobiles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 958.8 | 1,090.5 | 2,949.4 | 2,568.8 |
UNITED STATES | Motorcycles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 132.9 | 120.2 | 361.6 | 288.2 |
UNITED STATES | Global Adjacent Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 84.4 | 52.9 | 216.6 | 140.5 |
UNITED STATES | Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 215.9 | 224.9 | 665 | 617.7 |
UNITED STATES | Boats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 177.6 | 152.9 | 562.2 | 434 |
CANADA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 143.8 | 110.4 | 427.8 | 248 |
CANADA | ORV/Snowmobiles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 116.9 | 89.6 | 351.9 | 194.4 |
CANADA | Motorcycles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 9.8 | 6.1 | 25.4 | 14.9 |
CANADA | Global Adjacent Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0.3 | 0.2 | 2 | 1.8 |
CANADA | Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10.8 | 12.3 | 31 | 29.1 |
CANADA | Boats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6 | 2.2 | 17.5 | 7.8 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 168.9 | 145.7 | 599.3 | 411.3 |
EMEA | ORV/Snowmobiles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 80 | 71.2 | 282.6 | 196 |
EMEA | Motorcycles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 29.2 | 21.6 | 116.4 | 77.5 |
EMEA | Global Adjacent Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 59.7 | 52.9 | 200.1 | 137.8 |
EMEA | Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
EMEA | Boats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0.2 | 0 |
APLA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 77.2 | 57.1 | 245.9 | 163.1 |
APLA | ORV/Snowmobiles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 52.6 | 37.5 | 170.9 | 106.2 |
APLA | Motorcycles | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 22.5 | 19 | 68.3 | 54.2 |
APLA | Global Adjacent Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2.1 | 0.6 | 6.7 | 2.7 |
APLA | Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
APLA | Boats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | $ 43.7 | $ 35.1 |
Deferred revenue, noncurrent | $ 81.8 | $ 63.2 |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Extended service warranty period | 12 months | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Extended service warranty period | 84 months |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue Recognition [Abstract] | ||||
Balance at beginning of period | $ 123.7 | $ 89.8 | $ 107.1 | $ 81.6 |
New contracts sold | 13.5 | 15.8 | 52.1 | 42.6 |
Less: reductions for revenue recognized | (11.7) | (7.3) | (33.7) | (25.9) |
Balance at end of period | $ 125.5 | $ 98.3 | $ 125.5 | $ 98.3 |
Share-Based Compensation Expens
Share-Based Compensation Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Option awards | $ 2.3 | $ 6.3 | $ 7.6 | $ 15.9 |
Other share-based awards | 13.1 | 17.6 | 31.2 | 34.8 |
Total share-based compensation before tax | 15.4 | 23.9 | 38.8 | 50.7 |
Tax benefit | 3.7 | 5.7 | 9.3 | 12.1 |
Total share-based compensation expense included in net income (loss) | $ 11.7 | $ 18.2 | $ 29.5 | $ 38.6 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Share-based Payment Arrangement [Abstract] | |
Unrecognized compensation cost related to unvested share-based equity awards | $ 69.3 |
Weighted average period of recognition of unvested share-based equity awards | 1 year 3 months |
Unrecognized compensation cost related to unvested share-based equity awards, stock options | $ 8 |
Unrecognized compensation cost related to unvested share-based equity awards, restricted stock | $ 61.3 |
Financing Arrangements, Interes
Financing Arrangements, Interest Rates and Maturities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Effective interest rate | 5.22% | |
Finance lease obligations | $ 14.1 | $ 16.2 |
Debt issuance costs | (7.1) | (5.5) |
Total debt, finance lease obligations, and notes payable | 1,523.3 | 1,450.7 |
Less: current maturities | 53.3 | 142.1 |
Total long-term debt, finance lease obligations, and notes payable | $ 1,470 | 1,308.6 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Average interest rate as of September 30, 2021 | 0.97% | |
Senior Notes | Senior Unsecured Notes 4.60% Due May 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.60% | |
Long-term debt | $ 0 | 75 |
Senior Notes | Senior Unsecured Notes 4.23% Due July 2028 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.23% | |
Long-term debt | $ 350 | 350 |
Notes payable and other | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.24% | |
Long-term debt | $ 68.3 | 75 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving loan facility | $ 210 | 0 |
Term loan | ||
Debt Instrument [Line Items] | ||
Average interest rate as of September 30, 2021 | 1.08% | |
Revolving loan facility | $ 888 | $ 940 |
Financing Agreement - Additiona
Financing Agreement - Additional Information (Detail) $ in Millions | Jun. 30, 2021USD ($) | Dec. 31, 2010USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Jul. 31, 2018USD ($) | Jul. 02, 2018USD ($) | Mar. 31, 2016USD ($) |
Term loan | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,180 | ||||||
Revolving loan facility | $ 888 | $ 940 | |||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,000 | ||||||
Revolving loan facility | 210 | 0 | |||||
Repayments of principal in next twelve months | 45 | ||||||
Minimum interest coverage ratio | 3 | ||||||
Maximum leverage ratio | 3.50 | ||||||
Senior Notes | Senior Unsecured Notes 4.60% Due May 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Debt | $ 75 | ||||||
Long-term debt | 0 | 75 | |||||
Senior Notes | Senior Unsecured Notes 4.23% Due July 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 350 | 350 | |||||
Notes payable, other | Boat Holdings, LLC | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 61 | $ 76.7 | |||||
Notes payable to banks | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 68.3 | $ 75 | |||||
Notes payable to banks | Mortgages | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 7.3 | $ 14.5 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 393.2 | $ 397.3 | $ 392.9 | $ 659.9 |
Total other intangible assets, net | 660 | 686.4 | ||
Total goodwill and other intangible assets, net | $ 1,053.2 | $ 1,083.7 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||||
Goodwill, Gross | $ 663,500 | $ 663,200 | $ 667,600 | $ 659,900 | |
Impairments | $ (270,300) | (270,300) | |||
Accumulated goodwill impairment losses | (270,300) | (270,300) | (270,300) | ||
Currency translation effect on foreign goodwill balances | (4,100) | 3,300 | |||
Goodwill | 393,200 | 392,900 | 397,300 | 659,900 | |
ORV/Snowmobiles | |||||
Goodwill [Roll Forward] | |||||
Goodwill, Gross | 72,900 | 72,200 | 72,900 | 72,000 | |
Currency translation effect on foreign goodwill balances | 0 | 200 | |||
Goodwill | 72,900 | 72,200 | 72,900 | 72,000 | |
Motorcycles | |||||
Goodwill [Roll Forward] | |||||
Goodwill, Gross | 5,200 | 5,200 | 5,200 | 5,200 | |
Goodwill | 5,200 | 5,200 | 5,200 | 5,200 | |
Global Adjacent Markets | |||||
Goodwill [Roll Forward] | |||||
Goodwill, Gross | 88,000 | 88,400 | 92,100 | 85,200 | |
Currency translation effect on foreign goodwill balances | (4,100) | 3,200 | |||
Goodwill | 88,000 | 88,400 | 92,100 | 85,200 | |
Aftermarket | |||||
Goodwill [Roll Forward] | |||||
Goodwill, Gross | 270,300 | 270,300 | 270,300 | 270,400 | |
Impairments | (270,300) | ||||
Accumulated goodwill impairment losses | (270,300) | (270,300) | (270,300) | ||
Currency translation effect on foreign goodwill balances | (100) | ||||
Goodwill | 0 | 0 | 0 | 270,400 | |
Boats | |||||
Goodwill [Roll Forward] | |||||
Goodwill, Gross | 227,100 | 227,100 | 227,100 | 227,100 | |
Goodwill | $ 227,100 | $ 227,100 | $ 227,100 | $ 227,100 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Intangible Assets by Major Class [Line Items] | ||
Weighted-average useful life (years) | 16 years | |
Total amortizable | $ 472.7 | $ 472.8 |
Less: Accumulated amortization | (146.3) | (120.7) |
Net amortized other intangible assets | 326.4 | 352.1 |
Total other intangible assets, net | $ 660 | 686.4 |
Non-compete agreements | ||
Intangible Assets by Major Class [Line Items] | ||
Weighted-average useful life (years) | 4 years | |
Total amortizable | $ 2.6 | 2.6 |
Dealer/customer related | ||
Intangible Assets by Major Class [Line Items] | ||
Weighted-average useful life (years) | 17 years | |
Total amortizable | $ 460.3 | 460.3 |
Developed technology | ||
Intangible Assets by Major Class [Line Items] | ||
Weighted-average useful life (years) | 5 years | |
Total amortizable | $ 9.8 | 9.9 |
Brand/trade names | ||
Intangible Assets by Major Class [Line Items] | ||
Non-amortizable—brand/trade names | $ 333.6 | $ 334.3 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Impairments | $ 108,900 | ||||
Impairments | 270,300 | $ 270,300 | |||
Income tax benefit | $ 90,300 | ||||
Amortization of intangible assets | $ 8,500 | $ 8,700 | $ 25,700 | $ 27,500 | |
Estimated Future Amortization Expense by Fiscal Year [Abstract] | |||||
2021 | 7,600 | 7,600 | |||
2022 | 28,300 | 28,300 | |||
2023 | 25,700 | 25,700 | |||
2024 | 25,000 | 25,000 | |||
2025 | 25,000 | 25,000 | |||
2026 | 23,800 | 23,800 | |||
After 2026 | $ 191,000 | $ 191,000 |
Shareholders' Equity Additional
Shareholders' Equity Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Repurchase and retirement of common stock | $ 0.8 | $ 0.2 | $ 411.3 | $ 49.5 |
Repurchase and retirement of common stock (shares) | 3.3 | |||
Number of shares authorized to be repurchased (in shares) | 888.8 | 888.8 | ||
Cash dividend paid during period, per share (in dollars per share) | $ 0.63 | $ 0.62 | $ 1.89 | $ 1.86 |
Common stock excluded from calculation of diluted earnings per share (shares) | 0.8 | 2.2 | 0.8 | 5 |
Omnibus Incentive Plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common stock excluded from calculation of diluted earnings per share (shares) | 0.7 |
Shareholders' Equity Cash Divid
Shareholders' Equity Cash Dividends Declared Per Common Share (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity [Abstract] | ||||
Cash dividends declared and paid per common share (in dollars per share) | $ 0.63 | $ 0.62 | $ 1.89 | $ 1.86 |
Shareholders' Equity Reconcilia
Shareholders' Equity Reconciliation of Weighted Average Number of Shares (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average number of common shares outstanding (in shares) | 60.6 | 61.5 | 61.1 | 61.4 |
Director Plan and deferred stock units (in shares) | 0.2 | 0.2 | 0.2 | 0.2 |
ESOP (in shares) | 0.2 | 0.2 | 0.1 | 0.2 |
Common shares outstanding - basic (in shares) | 61 | 61.9 | 61.4 | 61.8 |
Common and potential common shares outstanding - diluted (in shares) | 62.3 | 62.8 | 62.9 | 61.8 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dilutive effect of stock (in shares) | 0.7 | 0.5 | 0.7 | 0 |
Share-based Payment Arrangement, Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dilutive effect of stock (in shares) | 0.6 | 0.4 | 0.8 | 0 |
Shareholders' Equity Changes in
Shareholders' Equity Changes in Accumulated Other Comprehensive Income (Loss) Balances (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance as of December 31, 2020 | $ (63.5) | $ (99.6) | $ (58.4) | $ (72.7) |
Reclassification to the statement of income | 7 | |||
Change in fair value | (12.9) | 12.8 | (21.4) | (1.8) |
Change in fair value | (22.5) | |||
Balance as of September 30, 2021 | (73.9) | $ (84.9) | (73.9) | $ (84.9) |
Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance as of December 31, 2020 | (39.1) | |||
Balance as of September 30, 2021 | (60.5) | (60.5) | ||
Cash Flow Hedging | Foreign currency contracts | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance as of December 31, 2020 | (15.5) | |||
Reclassification to the statement of income | 6.8 | |||
Change in fair value | (1.1) | |||
Balance as of September 30, 2021 | (9.8) | (9.8) | ||
Retirement Plan and Other Activity | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance as of December 31, 2020 | (3.8) | |||
Reclassification to the statement of income | 0.2 | |||
Balance as of September 30, 2021 | $ (3.6) | $ (3.6) |
Shareholders' Equity Gains and
Shareholders' Equity Gains and Losses, Net of Tax Reclassified from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI Into Income | $ (2.3) | $ (1.8) | $ (7) | $ (1.2) |
Foreign currency contracts | Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI Into Income | (0.5) | 1 | (1.7) | 4.5 |
Foreign currency contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI Into Income | 0.2 | (0.7) | 1 | (1.4) |
Interest rate contracts | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI Into Income | 2 | 2 | 6.1 | 4.1 |
Retirement plan activity | Operating expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI Into Income | $ 0 | $ 0.1 | $ 0.2 | $ 0.2 |
Financial Services Arrangemen_2
Financial Services Arrangements - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Investments in and Advances to Affiliates [Line Items] | ||
Investment in affiliates | $ 31.4 | $ 59.4 |
Trade receivables, net | $ 242.7 | $ 257.2 |
Polaris Acceptance | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity method investment ownership percentage | 50.00% | |
Net amount financed for dealers | $ 482.8 | |
Trade receivables, net | 258.4 | |
Aggregate repurchase obligation, amount | 138.7 | |
Securitization Facility | ||
Investments in and Advances to Affiliates [Line Items] | ||
Outstanding balance of receivables | 224.4 | |
TCF | ||
Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation, amount | 71.8 | |
Other | ||
Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation, amount | $ 27.8 | |
Polaris Acceptance | Maximum | ||
Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation, percentage | 15.00% | |
TCF | Maximum | ||
Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation, percentage | 100.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($)class_action | |
Commitments and Contingencies Disclosure [Abstract] | |
Accrual for the probable payment of pending claims | $ | $ 79.1 |
Number of putative class actions | class_action | 4 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities Open Foreign Currency Contracts (Details) - Cash Flow Hedging - Foreign currency contracts - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Notional Amounts (in U.S. Dollars) | $ 196.1 | $ 209.3 |
Net Unrealized Gain (Loss) | (0.8) | (2.3) |
Australian Dollar | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. Dollars) | 16.1 | 26 |
Net Unrealized Gain (Loss) | 0.5 | (0.5) |
Canadian Dollar | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. Dollars) | 126.4 | 169.8 |
Net Unrealized Gain (Loss) | (0.1) | (2.8) |
Mexican Peso | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. Dollars) | 53.6 | 13.5 |
Net Unrealized Gain (Loss) | $ (1.2) | $ 1 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities Open Interest Rate Swap Contracts (Details) - Cash Flow Hedging - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Interest rate swap | ||
Derivative [Line Items] | ||
Notional Amounts | $ 550 | $ 575 |
Net Unrealized Gain (Loss) | (12.2) | (18.1) |
Interest Rate Swap, May 2018 to May 2021 | ||
Derivative [Line Items] | ||
Notional Amounts | 0 | 25 |
Net Unrealized Gain (Loss) | 0 | (0.2) |
Interest Rate Swap, September 2019 to September 2023 | ||
Derivative [Line Items] | ||
Notional Amounts | 150 | 150 |
Net Unrealized Gain (Loss) | (7.9) | (11.3) |
Interest Rate Swap, March 2020 to February 2023 | ||
Derivative [Line Items] | ||
Notional Amounts | 400 | 400 |
Net Unrealized Gain (Loss) | $ (4.3) | $ (6.6) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities Carrying Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Foreign currency contracts | Fair value, measurements, recurring | ||
Derivative [Line Items] | ||
Derivative liabilities | $ (0.8) | $ (2.3) |
Foreign currency contracts | Level 2 | Fair value, measurements, recurring | ||
Derivative [Line Items] | ||
Derivative liabilities | (0.8) | (2.3) |
Interest rate contracts | Fair value, measurements, recurring | ||
Derivative [Line Items] | ||
Derivative liabilities | (12.2) | (18.1) |
Interest rate contracts | Level 2 | Fair value, measurements, recurring | ||
Derivative [Line Items] | ||
Derivative liabilities | (12.2) | (18.1) |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Net Carrying Value | (13) | (20.4) |
Designated as Hedging Instrument | Foreign currency contracts | ||
Derivative [Line Items] | ||
Derivative Net Carrying Value | (0.8) | (2.3) |
Designated as Hedging Instrument | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative Net Carrying Value | (12.2) | (18.1) |
Prepaid Expenses and Other Current Assets | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Fair Value— Assets | 1.2 | 1 |
Prepaid Expenses and Other Current Assets | Designated as Hedging Instrument | Foreign currency contracts | ||
Derivative [Line Items] | ||
Fair Value— Assets | 1.2 | 1 |
Prepaid Expenses and Other Current Assets | Designated as Hedging Instrument | Interest rate contracts | ||
Derivative [Line Items] | ||
Fair Value— Assets | 0 | (18.1) |
Other Current Liabilities | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Fair Value— (Liabilities) | (14.2) | (21.4) |
Other Current Liabilities | Designated as Hedging Instrument | Foreign currency contracts | ||
Derivative [Line Items] | ||
Fair Value— (Liabilities) | $ (2) | $ (3.3) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative [Line Items] | ||||
Unrealized gain (loss) on derivative instruments | $ 2,500 | $ 1,800 | $ 5,700 | $ (10,600) |
Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) on derivative instruments | $ 2,500 | $ 1,800 | $ 5,700 | $ (10,600) |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 6 | |||
Number of reportable segments | segment | 5 | |||
Revenue | $ 1,959.5 | $ 1,954.6 | $ 6,027.8 | $ 4,871.6 |
Gross profit | 465.6 | 534.6 | 1,497.5 | 1,160.2 |
ORV/Snowmobiles | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,208.3 | 1,288.8 | 3,754.8 | 3,065.4 |
Motorcycles | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 194.4 | 166.9 | 571.7 | 434.8 |
Global Adjacent Markets | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 146.5 | 106.6 | 425.4 | 282.8 |
Aftermarket | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 226.7 | 237.2 | 696 | 646.8 |
Boats | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 183.6 | 155.1 | 579.9 | 441.8 |
Operating segments | ORV/Snowmobiles | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,208.3 | 1,288.8 | 3,754.8 | 3,065.4 |
Gross profit | 260.3 | 377.8 | 952.3 | 831.2 |
Operating segments | Motorcycles | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 194.4 | 166.9 | 571.7 | 434.8 |
Gross profit | 17.8 | 15.5 | 49.7 | 18.9 |
Operating segments | Global Adjacent Markets | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 146.5 | 106.6 | 425.4 | 282.8 |
Gross profit | 40.9 | 31.5 | 115.5 | 75.2 |
Operating segments | Aftermarket | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 226.7 | 237.2 | 696 | 646.8 |
Gross profit | 60.1 | 63.7 | 184.2 | 157.6 |
Operating segments | Boats | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 183.6 | 155.1 | 579.9 | 441.8 |
Gross profit | 41.2 | 33.3 | 135 | 81.6 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | $ 45.3 | $ 12.8 | $ 60.8 | $ (4.3) |