Polaris 2015 Annual Report Download

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Table of contents

  • Page 1

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  • Page 3
    BOBCAT® IS A REGISTERED TRADEMARK OF CLARK EQUIPMENT COMPANY INC. GRAVELY® IS A REGISTERED TRADEMARK OF ARIENS COMPANY

  • Page 4
    .... Slowing RANGER and RZR demand in Fourth Quarter exposed the limitations of our Max Velocity Program (MVP) tools, underscoring the need to fully implement our Retail Flow Management (RFM) dealer replenishment system in our Off-Road Vehicle (ORV) business. While we cut shipments to meet our year-end...

  • Page 5
    ...he addressed new market segments and optimized pricing. That experience and business acumen will serve Dave (and Polaris) well as he takes on the critically important role of Senior Vice President of Enterprise Cost. We have identified five major projects that could add materially to our 2016 plan...

  • Page 6
    ... and acquisitions, will lead us towards our long-term goal of generating a third of our sales from International markets. Two areas where inorganic growth has, and will have, a substantial impact are our Parts, Garments and Accessories (PG&A) and Global Adjacent Markets businesses. Steve...

  • Page 7
    ... products, services and experiences that enrich their lives. Strategy Polaris will be a highly profitable, customer-centric, $8 billion global enterprise by 2020. We will make the best Off-Road and On-Road vehicles and products for recreation, transportation and work supporting consumer, commercial...

  • Page 8
    ... into high gear under the direction of a new executive of Operations and it's paying off. In just one year, our manufacturing process improvement savings jumped 20 percent, and we are working to increase this again by nearly 60 percent in 2016. >> Our Huntsville, Alabama ORV and Slingshot plant is...

  • Page 9
    ... we have manufacturing agility. Our Huntsville, Alabama plant-set to begin production in Second Quarter 2016- epitomizes our plant Lean strategy. It will provide direct capacity for ORV and Slingshot while freeing up capacity at our Spirit Lake motorcycle facility, to better balance network capacity...

  • Page 10
    ... more to develop a custom engine than it costs us to do it in-house. >> Faster time to market A custom engine from a supplier typically takes four to five years to develop, an unacceptable timeline for a competitive company. We built Indian Motorcycle's iconic Thunder Stroke 111™ engine in just...

  • Page 11
    ...-level, value products, such as youth ATVs, and for products that aren't a big part of our portfolio today, such as diesel. But about 85 percent of our powertrains are now developed in-house. And we've set up the expertise to meet future demands through three key strategies: >> Build the best team...

  • Page 12
    ... While overall Off-Road Vehicle (ORV) sales slowed in 2015, look under the hood of this business and you'll see key successes and opportunities that are indicative of how we'll grow the customer base, such as reaching a higher percentage of multi-acre households: >> Camp RZR East Brimstone...

  • Page 13
    ...-plus-unit North American market category. >> Gain market share against unprecedented competition Despite a significant increase in new competitor products in 2015, we gained market share for the ninth consecutive year. We continue to have the biggest ORV product portfolio, with vehicles targeted...

  • Page 14
    MOTORCYCLES Seventeen years ago, we set out to build a successful new American motorcycle company. We approached Victory Motorcycles the same way we did our Snowmobile and Off-Road Vehicle (ORV) businesses: by understanding the customer and the market, then developing highly competitive products. ...

  • Page 15
    ... share: >> Open the throttle on Indian We're leveraging the beloved brand's popularity with more of everything that drives sales-new models, dealers, accessories, apparel, partnerships and events. >> Improve operations to meet demand We corrected the issue with the paint system at our Spirit Lake...

  • Page 16
    ... to make development, production and distribution more e cient. One example: In 2015, we reduced the time from shipment to retail from 38 days to approximately 10 days, a 70+ percent improvement. That Lean focus helped us significantly beat Slingshot's growth projections. >> The head-turning 2015...

  • Page 17
    2015 >> POLARIS INDUSTRIES INC. ANNUAL REPORT 15 >> Dealers must be 100 percent sales and service trained to be included in the Slingshot network Slingshot SL To build Slingshot into a global moto-roadster business, we're: >> Increasing awareness We were able to beat our revenue projection ...

  • Page 18
    ... in their mission, which is why-despite poor snow-we continued to gain market share in 2015: >> Let riders create a custom snowmobile Our pre-order SnowCheck program is a win for customers, dealers and Polaris. It ensures riders get the vehicles they want, and reduces some of the weather risk for...

  • Page 19
    ... right product innovation We're building on Polaris' legacy of innovation by developing a broader portfolio of accessories that are engineered to work place at the right time. This Lean "pull-based" model leverages sales and inventory data to drive stocking recommendations, and aligns marketing and...

  • Page 20
    ... We continued to make good progress on building up our Global Adjacent Markets business in 2015. We're steadily gaining traction in our key businesses and continue to look for inorganic opportunities that align with our core capabilities. >> The Gravely Atlas JSV we co-developed with Ariens® was...

  • Page 21
    ... vehicles Work & Transportation >> Commercial ORV We've seen increasing appetite for our ORVs the last few years from national accounts, colleges and universities, hotels and resorts, and rental houses. To tap the demand, we doubled our direct sales team in 2015 and, as a result, increased sales...

  • Page 22
    ...-Road Vehicle (ORV) and snowmobile sales in Russia. In 2015, as the ruble collapsed, sales dropped to almost nothing. Today, our International sales account for 14 percent of total Polaris sales. We're committed to grow International business and are focused on four key strategies: >> Indian Scout...

  • Page 23
    ...selling motorcycle internationally-contributing to a 40 percent increase in our International Motorcycle sales in 2015. We're building on Scout's success by adding the Scout® Sixty and expanding our global dealer network. Slingshot dropped jaws around the world when we launched it in North America...

  • Page 24
    ... available on our website at www.polaris.com. >> Building environmentally sensitive facilities Our research and development (R&D) center in Wyoming, Minnesota was LEED-certified in 2005. And now we're making our new Huntsville, Alabama facility a role model for responsible manufacturing. We worked...

  • Page 25
    ... reported on the New York Stock Exchange on such date. As of February 12, 2016, 64,956,308 shares of Common Stock, $.01 par value, of the registrant were outstanding. DOCUMENTS INCORPORATED BY REFERENCE: Portions of the registrant's Annual Report to Shareholders for the year ended December 31, 2015...

  • Page 26
    ... about Market Risk ...Financial Statements and Supplementary Data ...Changes in and Disagreements with Accountants on Accounting and Financial Disclosure . . Controls and Procedures ...Other Information ...PART III Directors, Executive Officers and Corporate Governance ...Executive Compensation...

  • Page 27
    ... the related Parts, Garments and Accessories (PG&A). These products are sold through dealers and distributors principally located in the United States, Canada, Western Europe, Australia and Mexico. Sales of our ORV/Snowmobiles, Motorcycles and Global Adjacent Markets reporting segments accounted for...

  • Page 28
    ... portfolio in 2013 by acquiring A.M. Holding S.A.S., which operates under the name Aixam Mega S.A.S. (''Aixam''). Aixam is based in France and manufactures and sells enclosed on-road quadricycles and light duty commercial vehicles. Through these acquisitions, we now offer products in the light-duty...

  • Page 29
    ... acquisitions added industry leading aftermarket accessory brands to our ORV operating segment. Snowmobiles. We produce a full line of snowmobiles consisting of approximately 39 models, ranging from youth models to utility and economy models to performance and competition models. The 2016 model year...

  • Page 30
    ...three-wheel motorcycle, Slingshot was introduced in 2014, and is the Company's first moto-roadster. In 2015, we acquired the electric motorcycle business of Brammo, Inc., and introduced the Victory Empulse TT, our first electric motorcycle. Our 2016 model year line of motorcycles for Victory, Indian...

  • Page 31
    ... to 2014, our use of Fuji engines in our vehicles stabilized in 2015, and is expected to remain stable in 2016. We have been designing and producing our own engines for select models of snowmobiles since 1995, for all Victory motorcycles since 1998, for select ORV models since 2001 and for Indian...

  • Page 32
    .... We expect to further expand our motorcycle dealer network over the next few years in North America and internationally for Victory, Indian and Slingshot motorcycles. Global Adjacent Markets. Within Global Adjacent Markets, our Work and Transportation vehicles each have their own distribution...

  • Page 33
    ...plan financing for our dealers. A majority of our North American sales of snowmobiles, ORVs, motorcycles, Global Adjacent Markets vehicles and related PG&A are financed under arrangements whereby we are paid within a few days of shipment of our product. We participate in the cost of dealer financing...

  • Page 34
    ...leaflets, posters, dealer signs, and miscellaneous other promotional items for use by dealers. We expended $316.7 million, $314.5 million and $270.3 million for sales and marketing activities in 2015, 2014 and 2013, respectively. Engineering, Research and Development, and New Product Introduction We...

  • Page 35
    ... of the products is extensively tested under actual use conditions. We utilize our Wyoming, Minnesota facility for engineering, design and development personnel for our line of engines and powertrains, ORVs, Victory, Indian and Slingshot motorcycles, and certain Global Adjacent Market vehicles. In...

  • Page 36
    ...international standards related to safety in places where we sell our products outside the United States. We believe that our motorcycles, ORVs, snowmobiles and Global Adjacent Markets vehicles have complied with applicable safety standards in the United States and other international locations. Use...

  • Page 37
    ..., ORVs and snowmobiles are similar to those in the United States, and Polaris complies with the applicable Canada requirements. Europe currently regulates emissions from our motorcycles and certain of our ATV-based products for which we obtain whole vehicle type approvals, and these products meet...

  • Page 38
    ... as Chief Executive Officer on September 1, 2008, and was named Chairman of the Board of Directors in January 2013. Prior to joining Polaris, Mr. Wine was President of Fire Safety Americas, a division of United Technologies, a provider of high technology products and services to the building systems...

  • Page 39
    ... facilities, supply chain and numerous distributions centers; in 2010, he added responsibility for enterprise-wide Lean and research and development activities. Mr. Speetzen has been Executive Vice President-Finance and Chief Financial Officer of the Company since August 2015. Prior to joining...

  • Page 40
    ... our financial condition. Significant product repair and/or replacement due to product warranty claims or product recalls could have a material adverse impact on our results of operations. We provide a limited warranty for ORVs for a period of six months, for a period of one year for our snowmobiles...

  • Page 41
    ... lines, including from some competitors that have greater financial and marketing resources. Failure to compete effectively against competitors would negatively impact our business and operating results. The snowmobile, off-road vehicle, motorcycle and global adjacent markets are highly competitive...

  • Page 42
    ... services. We have arrangements with each of Capital One, Sheffield Financial, Synchrony Bank, Chrome Capital and FreedomRoad to make retail financing available to consumers who purchase our products in the United States. During 2015, consumers financed approximately 31 percent of the vehicles...

  • Page 43
    ... profitability if acquired businesses or affiliates do not achieve the financial results projected in our valuation models; • reallocation of amounts of capital from other operating initiatives and/or an increase in our leverage and debt service requirements to pay the acquisition purchase prices...

  • Page 44
    ... acquired a company with manufacturing operations in China. The expansion of our existing international operations and entry into additional international markets require significant management attention and financial resources. Some of the countries in which we manufacture and/or sell our products...

  • Page 45
    ... and develop new innovative products in the global markets in which we compete. Product development requires significant financial, technological, and other resources. While we expended $166.4 million, $148.5 million and $139.2 million for research and development efforts in 2015, 2014 and 2013...

  • Page 46
    ... execute our strategic plan. In addition, any unplanned turnover or inability to attract and retain key employees, including managers, could have a negative effect on our business, financial condition and/or results of operations. We may be subject to information technology system failures, network...

  • Page 47
    ... not listed, we have over 3.5 million square feet of manufacturing and research and development space located in North America and Europe. We have over 3.2 million square feet of warehouse and distribution center space in the United States and countries occupied by our subsidiaries that is owned or...

  • Page 48
    ...cover of the Company's 2015 Annual Report is incorporated herein by reference. On February 17, 2016, the last reported sale price for shares of our common stock on the New York Stock Exchange was $86.81 per share. STOCK PERFORMANCE GRAPH The graph below compares the five-year cumulative total return...

  • Page 49
    ... the information with respect to purchases made by or on behalf of Polaris of its own stock during the fourth quarter of the fiscal year ended December 31, 2015. Issuer Purchases of Equity Securities Total Number of Shares Purchased as Part of Publicly Announced Program Maximum Number of Shares That...

  • Page 50
    ... 2015. Selected Financial Data For the Years Ended December 31, (Dollars in millions, except per-share data) 2015 2014 2013 2012 2011 Statement of Operations Data Sales Data: Total sales ...Percent change from prior year ...Gross Profit Data: Total gross profit ...Percent of sales ...Operating...

  • Page 51
    ... new products leading to continued market share leadership in side-by-side vehicles and ATVs. The overall North American powersports industry was approximately flat in 2015. Our North America retail sales to consumers increased five percent in 2015, helping to drive total full year Company sales...

  • Page 52
    ... from 2013, in support of dealer stocking levels for premium and value segments for ATV RFM and new ACE categories. ORV sales outside of North America increased mid-teens percent in 2014 compared to 2013 resulting from market share gains. For 2014, the average ORV per unit sales price increased...

  • Page 53
    ... first three quarters of 2015 at our Spirit Lake, Iowa production facility. North American industry retail sales, 900cc and above (including Slingshot), increased low-single digits percent in 2015 compared to 2014. Over the same period, Polaris North American unit retail sales to consumers increased...

  • Page 54
    ... company sales in 2015, 2014 and 2013, respectively. Sales in the United States for 2014 increased 23 percent compared to 2013, primarily resulting from higher shipments in all product lines and related PG&A, improved pricing and higher sales of higher priced side-by-side vehicles. Canada: Canadian...

  • Page 55
    ... of Sales For the Years Ended December 31, Percent Change of Sales 2015 vs. 2014 2013 Percent of Sales Change 2014 vs. 2013 ($ in millions) 2015 2014 ORV/Snowmobiles ...$1,190.6 32.1% Motorcycles ...97.3 13.9% Global Adjacent Markets 84.2 27.0% Corporate ...(33.1) Total gross profit dollars...

  • Page 56
    ... costs and inefficiencies associated with our efforts to scale-up production and add capacity to the paint system at our Spirit Lake, Iowa motorcycle facility. Gross profit dollars increased 13 percent from 2013 to 2014, primarily due to increased sales volumes of Indian. Global Adjacent Markets...

  • Page 57
    ... dealer inventory financing through Polaris Acceptance, due primarily to a 23 percent increase in financed receivables as of December 31, 2014. Remainder of the Income Statement: For the Years Ended December 31, ($ in millions except per share data) 2015 2014 Change 2015 vs. 2014 2013 Change 2014...

  • Page 58
    ... accounting policies that management believes are the most critical to aid in fully understanding and evaluating our reported financial results include the following: revenue recognition, sales promotions and incentives, dealer holdback programs, share-based employee compensation, product warranties...

  • Page 59
    ...criteria. Polaris recorded accrued liabilities of $123.3 million and $120.1 million for dealer holdback programs in the consolidated balance sheets as of December 31, 2015 and 2014, respectively. Share-based employee compensation. We recognize in the financial statements the grant-date fair value of...

  • Page 60
    ...related to certain promotional programs. Our standard warranties require us or our dealers to repair or replace defective products during such warranty periods at no cost to the consumers. The warranty reserve is established at the time of sale to the dealer or distributor based on management's best...

  • Page 61
    .... In 2015, we made large capital expenditures related to continued capacity and capability expansion at many of our North America locations, including our manufacturing facilities in Spirit Lake, Iowa; Milford, Iowa; Roseau, Minnesota; and Monterrey, Mexico, as well as our manufacturing facility in...

  • Page 62
    ...companies (including Polaris Acceptance) to provide secured floor plan financing for our dealers. These arrangements provide liquidity by financing dealer purchases of our products without the use of our working capital. A majority of the worldwide sales of snowmobiles, ORVs, motorcycles and related...

  • Page 63
    ... from time to time on an ongoing basis. 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 ASC Topic 860. Polaris Acceptance is not responsible for any continuing servicing costs or...

  • Page 64
    ... financial services in the accompanying consolidated statements of income. We believe that existing cash balances, cash flow to be generated from operating activities and available borrowing capacity under the line of credit arrangement will be sufficient to fund operations, new product development...

  • Page 65
    ... in the yen to U.S. dollar exchange rate primarily impacts cost of sales and net income. Mexican Peso: With increased production at our Monterrey, Mexico facility, our costs in the Mexican peso have continued to increase. We also market and sell to customers in Mexico through a wholly owned...

  • Page 66
    ...the Company's end products. While such materials are typically available from numerous suppliers, commodity raw materials are subject to price fluctuations. We generally buy these commodities and components based upon market prices that are established with the vendor as part of the purchase process...

  • Page 67
    ... Firm on Internal Control over Financial Reporting ...Report Of Independent Registered Public Accounting Firm on Consolidated Financial Statements ...Consolidated Balance Sheets as of December 31, 2015 and 2014 ...Consolidated Statements of Income for the Years Ended December 31, 2015, 2014 and 2013...

  • Page 68
    ... over financial reporting of the Company. This system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with United States generally accepted accounting principles. Our internal...

  • Page 69
    ... of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Polaris Industries Inc. as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, shareholders' equity, and cash flows for each of the three years in...

  • Page 70
    ...all material respects the information set forth therein. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Polaris Industries Inc.'s internal control over financial reporting as of December 31, 2015, based on criteria established...

  • Page 71
    ...Shareholders' Equity Current liabilities: Current portion of debt, capital lease obligations, Accounts payable ...Accrued expenses: Compensation ...Warranties ...Sales promotions and incentives ...Dealer holdback ...Other ...Income taxes payable ...Total current liabilities ...Long-term income taxes...

  • Page 72
    ... OF INCOME (In thousands, except per share data) For the Years Ended December 31, 2015 2014 2013 Sales ...Cost of sales ...Gross profit ...Operating expenses: Selling and marketing ...Research and development General and administrative ... $4,719,290 3,380,248 1,339,042 316,669 166,460 209...

  • Page 73
    POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) For the Years Ended December 31, 2015 2014 2013 Net income ...Other comprehensive income (loss), net of tax: Foreign currency translation adjustments, net of tax benefit of $643, $65 and $1,841 ...Unrealized gain...

  • Page 74
    POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In thousands, except per share data) Additional Paid- In Capital Accumulated Other Comprehensive Income (loss) Number of Shares Common Stock Retained Earnings Total Balance, December 31, 2012 ...Employee stock compensation...

  • Page 75
    ... retirement of common shares ...Cash dividends to shareholders ...Proceeds from stock issuances under employee plans ...Tax effect of proceeds from share-based compensation exercises . ... Net cash used for financing activities ...Impact of currency exchange rates on cash balances ...Net increase...

  • Page 76
    ... the design, engineering, manufacturing and marketing of innovative, high-quality, high-performance Off-Road Vehicles (ORV), Snowmobiles, Motorcycles and Global Adjacent Markets vehicles. Polaris products, together with related parts, garments and accessories are sold worldwide through a network of...

  • Page 77
    .... The Company utilizes the market approach to measure fair value for its non-qualified deferred compensation assets and liabilities, and the income approach for the foreign currency contracts and commodity contracts. The market approach uses prices and other relevant information generated by market...

  • Page 78
    ... Company's products. Inventories are stated at the lower of cost (first-in, first-out method) or market. The major components of inventories are as follows (in thousands): December 31, 2015 December 31, 2014 Raw materials and purchased components Service parts, garments and accessories ...Finished...

  • Page 79
    ... conditions and may also provide longer warranties related to certain promotional programs. Polaris' standard warranties require the Company or its dealers to repair or replace defective products during such warranty periods at no cost to the consumer. The warranty reserve is established at the time...

  • Page 80
    ... on snowmobile usage, product recalls and any significant changes in sales volume. The activity in the warranty reserve during the periods presented was as follows (in thousands): For the Years Ended December 31, 2015 2014 2013 Balance at beginning of year Additions to warranty reserve Additions...

  • Page 81
    .... In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue from the transfer of goods or services to...

  • Page 82
    ...in 2015, 2014 and 2013, respectively) which will be converted into common stock when the director's board service ends or upon a change in control. Restricted shares awarded under the Omnibus Plan to date generally contain restrictions, which lapse after a two to four year period if Polaris achieves...

  • Page 83
    ...718, Polaris has used the Black-Scholes option-pricing model. Assumptions utilized in the model are evaluated and revised, as necessary, to reflect market conditions and experience. At December 31, 2015, there was $90,990,000 of total unrecognized share-based compensation expense related to unvested...

  • Page 84
    ... was $65,775,000. The total intrinsic value is based on the Company's closing stock price on the last trading day of the year. The weighted average fair values at the grant dates of grants awarded under the Omnibus Plan for the years ended December 31, 2015, 2014 and 2013 were $139.50, $134.34 and...

  • Page 85
    ... ... Bank financing. In August 2011, Polaris entered into a $350,000,000 unsecured revolving loan facility. In January 2013, Polaris amended the loan facility to provide more beneficial covenant and interest rate terms and extend the expiration date from August 2016 to January 2018. In March 2015...

  • Page 86
    ...its fair value as December 31, 2015 and 2014. Letters of credit. At December 31, 2015, Polaris had open letters of credit totaling $21,563,000. The amounts are primarily related to inventory purchases and are reduced as the purchases are received. Dealer financing programs. Certain finance companies...

  • Page 87
    ... 2015. For these acquisitions, the respective aggregate purchase price was allocated on a preliminary basis to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Timbersled, Hammerhead and 509's financial results are included in the Company...

  • Page 88
    ... the research and development tax credit permanent. In addition to the 2015 research and development credits, the Company filed amended returns to claim additional credits related to qualified research expenditures incurred in prior years. In January 2013, the President of the United States signed...

  • Page 89
    ... unused international and acquired federal net operating loss carryforwards of $38,039,000. The net operating loss carryforwards will expire at various dates from 2016 to 2034, with certain jurisdictions having indefinite carryforward terms. Polaris classified liabilities related to unrecognized tax...

  • Page 90
    ... and retire approximately 4,337,000 shares. Shareholder rights plan. During 2000, the Polaris Board of Directors adopted a shareholder rights plan. Under the plan, a dividend of preferred stock purchase rights will become exercisable if a person or group should acquire 15 percent or more of the...

  • Page 91
    ... of these amounts is as follows (in thousands): For the Years Ended December 31, 2015 2014 2013 Weighted average number of common shares outstanding ...Director Plan and deferred stock units ...ESOP ...Common shares outstanding-basic ...Dilutive effect of restricted stock awards ...Dilutive effect...

  • Page 92
    ... of General Electric Capital Corporation (GECC), which is supported by a partnership agreement between their respective wholly owned subsidiaries, finances substantially all of Polaris' United States sales whereby Polaris receives payment within a few days of shipment of the product. Polaris...

  • Page 93
    ...intended to design, develop and manufacture a full range of new vehicles for India and other emerging markets. The investment in EPPL is accounted for under the equity method, with Polaris' proportionate share of income or loss recorded within the consolidated financial statements on a one month lag...

  • Page 94
    ... statements of income. As of December 31, 2015 and 2014 the fair value of contingent purchase price commitments was $2,222,000 and $27,908,000, respectively, with the current year decrease related to payments made in 2015. Leases. Polaris leases buildings and equipment under non-cancelable operating...

  • Page 95
    ...signed in 2013 for a manufacturing facility which Polaris began occupying in Opole, Poland commenced in February 2014. The Poland property lease is accounted for as a capital lease. Future minimum annual lease payments under capital and operating leases with noncancelable terms in excess of one year...

  • Page 96
    ... are recognized in the current income statement. The amount of gains (losses), net of tax, related to the effective portion of derivative instruments designated as cash flow hedges included in accumulated other comprehensive loss for the years ended December 31, 2015 and 2014 was $3,320,000 and...

  • Page 97
    ..., the Company does not maintain separate balance sheets for each segment. Accordingly, the segment information presented below is limited to sales and gross profit data. For the Years Ended December 31, ($ in thousands) 2015 2014 2013 Sales ORV/Snowmobiles ...Motorcycles ...Global Adjacent Markets...

  • Page 98
    ...remaining available for repurchase under the prior authorization, represents approximately 16 percent of the shares of Polaris common stock currently outstanding, as of January 28, 2016. The Company has evaluated events subsequent to the balance sheet date through the date the consolidated financial...

  • Page 99
    ...the Company's management including its Chief Executive Officer and Executive Vice President-Finance and Chief Financial Officer, in a manner that allows timely decisions regarding required disclosure. No changes have occurred during the period covered by this report or since the evaluation date that...

  • Page 100
    ... Beneficial Owners and Management'' and ''Equity Compensation Plan Information'' in the Company's 2016 Proxy Statement are incorporated herein by reference. Item 13. Certain Relationships and Related Transactions, and Director Independence The sections entitled ''Corporate Governance-Corporate...

  • Page 101
    ... a reasonable cost to any person who was a shareholder of the Company as of February 19, 2016, upon receipt from any such person of a written request for any such exhibit. Such request should be sent to Polaris Industries Inc., 2100 Highway 55, Medina, Minnesota 55340, Attention: Investor Relations...

  • Page 102
    ... of Minneapolis, State of Minnesota on February 19, 2016. POLARIS INDUSTRIES INC. By: /s/ SCOTT W. WINE Scott W. Wine Chairman and Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the...

  • Page 103
    ...Charged to Costs and Expenses Additions Through Acquisition Inventory Reserve Other Changes Add (Deduct)(2) Balance at End of Period (In thousands) 2013: Deducted from asset accounts- Allowance for obsolete inventory ...2014: Deducted from asset accounts- Allowance for obsolete inventory ...2015...

  • Page 104
    ... quarter ended September 30, 2012.* Polaris Industries Inc. Senior Executive Annual Incentive Compensation Plan, as amended and restated effective April 24, 2014, incorporated by reference to Annex A to the Company's Proxy Statement for the 2014 Annual Meeting of Shareholders filed on March 7, 2014...

  • Page 105
    ...'s Annual Report on Form 10-K for the year ended December 31, 2014.* Form of Restricted Stock Unit Award Agreement made under the Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 30, 2015), incorporated by reference to Exhibit 10.1 to the Company's Current Report on...

  • Page 106
    ... to the Company's Current Report on Form 8-K as filed July 13, 2015.* Form of Incentive Plan Acknowledgment for David C. Longren, incorporated by reference to Exhibit 10.jj to the Company's Annual Report on Form 10-K for the year ended December 31, 2014.* Employment Offer Letter dated April 4, 2005...

  • Page 107
    ....1 to the Company's Current Report on Form 8-K filed November 12, 2013. Amendment Agreement dated March 6, 2015, by and among Polaris Industries Inc., Polaris Sales Europe Sa` ırl, the lenders identified therein, and U.S. Bank National Association, as LC Issuer, Swing Line Leader and Administrative...

  • Page 108
    Exhibit Number Description 101 The following financial information from Polaris Industries Inc.'s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 19, 2016, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Balance ...

  • Page 109
    ...report financial information; and b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. /s/ SCOTT W. WINE Scott W. Wine Chairman and Chief Executive Officer Date: February 19, 2016

  • Page 110
    ...information; and b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. /s/ MICHAEL T. SPEETZEN Michael T. Speetzen Executive Vice President-Finance and Chief Financial Officer Date...

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    ...Scott W. Wine, Chief Executive Officer of Polaris Industries Inc., a Minnesota corporation (the ''Company''), hereby certify as follows: 1. This statement is provided pursuant to 18 U.S.C. § 1350 in connection with the Company's Annual Report on Form 10-K for the period ended December 31, 2015 (the...

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    ...I, Michael T. Speetzen, Executive Vice President-Finance and Chief Financial Officer of Polaris Industries Inc., a Minnesota corporation (the ''Company''), hereby certify as follows: 1. This statement is provided pursuant to 18 U.S.C. § 1350 in connection with the Company's Annual Report on Form 10...

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    ... Wells Fargo Bank website at www.shareowneronline.com. Internet Access To view the Company's annual report and financial information, products and specifications, press releases, dealer locations and product brochures, access Polaris on the Internet at: www.polaris.com Investor Relations Security...

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    Polaris Industries Inc. 2100 Highway 55 Medina, MN 55340 763-542-0500 763-542-0599 fax www.polaris.com ©2016 Polaris Industries Inc. All rights reserved. Printed in the USA on recycled paper containing 10 percent post-consumer fiber. E