Polaris 2008 Annual Report Download - page 45

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The following chart summarizes the cash flows from operating, investing and financing activities for the
twelve months ended December 31, 2008 and 2007 ($ in millions):
2008 2007 Change
For the Twelve Months Ended
December 31
Total cash provided by (used for):
Operating activities ........................................... $175.7 $ 210.2 $(34.5)
Investment activities ........................................... $ (69.7) $ 20.4 $(90.1)
Financing activities ........................................... $(142.2) $(186.9) $ 44.7
Increase (decrease) in cash and cash equivalents ........................ $ (36.2) $ 43.7 $(79.9)
For the year-to-date period ended December 31, 2008, Polaris generated net cash from total operating activities
of $175.7 million, including net cash from continuing operating activities of $176.2 million compared to net cash
from continuing operating activities of $213.2 million in the same period of 2007, a decrease of 17 percent. The
$37.0 million decrease in net cash provided by operating activities from continuing operations for the year-to-date
2008 period compared to the same period in 2007 is primarily due to a $5.7 million increase in net income offset by
the following changes in working capital:
• Inventories were a use of cash in 2008 of $4.0 million compared to cash provided of $12.2 million in 2007.
The increase in the net cash used of $16.2 million was due to higher factory inventory levels as additional
inventory was needed to meet the continued sales growth in RANGER
TM
side-by-side vehicles and the
international business.
• Accrued expenses were a use of cash in 2008 totaling $7.5 million compared to cash provided of
$38.6 million in 2007. The increase in the net cash used of $46.1 million resulted from a decrease in
accrued liabilities in 2008 primarily due to lower dealer inventory, lower sales promotions and incentive
payments and lower warranty accruals due the Company’s continued efforts to improve product quality.
• Income taxes payable/receivable was a use of cash in 2008 totaling $9.5 million compared to cash provided
of $9.5 million in 2007. The increase in the net cash used of $19.0 million was primarily due to the timing of
higher estimated income tax payments in 2008 compared to 2007.
• Accounts payable provided cash totaling $25.9 million in 2008 compared to cash used of $10.6 million in
2007. The increase in the net cash provided of $36.5 million was from the timing of payments made for
accounts payable for 2008 compared to 2007.
• Trade receivables was a use of cash totaling $15.7 million in 2008 compared to cash used of $19.1 million in
2007. The reduction in the net cash used of $3.4 million was due to the timing of collections of the trade
receivables.
Investing activities:
Net cash used by investing activities was $69.7 million for 2008 compared to cash provided of $20.4 million
for 2007. The primary use of cash in 2008 was the investment of $76.6 million for capital expenditures. During
2007, the Company received $77.1 million in proceeds from the sale of KTM shares, and used $63.7 million for
capital expenditures.
Financing activities:
Net cash used for financing activities was $142.2 million for 2008 compared to $186.9 million in 2007. In
2008, the Company used cash for financing activities to pay cash dividends of $49.6 million and repurchase shares
of common stock for $107.2 million. In 2007, the Company used cash for financing activities to pay cash dividends
of $47.7 million, reduce borrowings under its credit arrangements of $50.0 million and repurchase shares of
common stock for $103.1 million.
27