Polaris 2015 Annual Report Download - page 34

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Please find page 34 of the 2015 Polaris annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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In April 2006, a wholly-owned subsidiary of Polaris entered into a multi-year contract with GE Money Bank
(‘‘GE Bank’’) under which GE Bank makes available closed-end installment consumer and commercial credit
to customers of our dealers for both Polaris and non-Polaris products. In 2014, GE Bank changed its name to
Synchrony Bank, as a result of a spin off and is part of the GE Capital Retail Finance business. The current
installment credit agreement under which Synchrony Bank provides installment credit lending for Polaris
products expires in December 2020.
In January 2009, a wholly-owned subsidiary of Polaris entered into a multi-year contract with Sheffield
Financial (‘‘Sheffield’’) pursuant to which Sheffield agreed to make available closed-end installment consumer
and commercial credit to customers of our dealers for Polaris products. The current installment credit
agreement under which Sheffield provides installment credit lending for ORVs, snowmobiles, motorcycles and
certain other Polaris products expires in December 2020.
In November 2014, a wholly-owned subsidiary of Polaris entered into a multi-year contract with FreedomRoad
Financial (‘‘FreedomRoad’’) pursuant to which FreedomRoad agreed to make available closed-end installment
consumer and commercial credit to customers of our dealers for Polaris products. The current installment
credit agreement under which FreedomRoad provides installment credit lending for motorcycles expires in
December 2016.
In December 2014, a wholly-owned subsidiary of Polaris entered into a multi-year contract with Chrome
Capital LLC (‘‘Chrome’’) pursuant to which Chrome agreed to make available leasing to customers of our
dealers for Victory and Indian Motorcycles. The current leasing agreement under which Chrome provides
exclusive leasing for motorcycles expires in January 2017.
Marketing. We promote our brands among the riding and non-riding public and provide a wide range of
products for enthusiasts by licensing the name Polaris. We currently license the production and sale of a range
of items, including die cast toys, ride-on toys and numerous other products.
We sell clothing and accessories through our e-commerce websites polaris.com, indianmotorcycle.com,
klim.com, kolpin.com, cyclecountry.com, proarmor.com, timbersled.com, hammerheadoffroad.com and
509films.com.
Our marketing activities are designed primarily to promote and communicate directly with consumers to assist
the selling and marketing efforts of our dealers and distributors. We make available and advertise discount or
rebate programs, retail financing or other incentives for our dealers and distributors to remain price
competitive in order to accelerate retail sales to consumers and gain market share. We advertise our products
directly to consumers using print advertising in the industry press and in user group publications and on the
internet, social media, billboards, television and radio. We also provide media advertising and partially
underwrite dealer and distributor media advertising to a degree and on terms which vary by product and from
year to year. From time to time, we produce promotional films for our products, which are available to
dealers for use in the showroom or at special promotions. We also provide product brochures, 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 have approximately 750 employees who are engaged in the development and testing of existing products
and research and development of new products and improved production techniques, located primarily in our
Roseau and Wyoming, Minnesota facilities and in Burgdorf, Switzerland. Our acquisitions of GEM, Goupil
and Aixam included research and development resources for their respective product lines. We believe Polaris
was the first to develop, for wide commercial use, independent front suspensions for snowmobiles, long travel
rear suspensions for snowmobiles, liquid cooled snowmobile brakes, hydraulic brakes for snowmobiles, the
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