Polaris 2015 Annual Report Download - page 46

receive market acceptance or otherwise generate any meaningful sales or profits for us relative to our
expectations based on, among other things, existing and anticipated investments in manufacturing capacity and
commitments to fund advertising, marketing, promotional programs, and research and development.
We manufacture our products at, and distribute our products from, several locations in North America and
internationally. Any disruption at any of these facilities, or manufacturing delays could adversely affect our
business and operating results.
We manufacture most of our products at 16 locations, including North American and international facilities.
We also have several locations that serve as wholegoods and PG&A distribution centers, warehouses, and
office facilities. In addition, we have agreements with other third-party manufacturers to manufacture products
on our behalf. These facilities may be affected by natural or man-made disasters and other external events. In
the event that one of our manufacturing facilities was affected by a disaster or other event, we could be forced
to shift production to one of our other manufacturing facilities. Although we maintain insurance for damage
to our property and disruption of our business from casualties, such insurance may not be sufficient to cover
all of our potential losses. Any disruption in our manufacturing capacity could have an adverse impact on our
ability to produce sufficient inventory of our products or may require us to incur additional expenses in order
to produce sufficient inventory, and therefore, may adversely affect our net sales and operating results. Any
disruption or delay at our manufacturing facilities could impair our ability to meet the demands of our
customers, and our customers may cancel orders or purchase products from our competitors, which could
adversely affect our business and operating results.
Our operations are dependent upon attracting and retaining skilled employees, including skilled labor. Our future
success depends on our continuing ability to identify, hire, develop, motivate, retain and promote skilled personnel
for all areas of our organization.
Our success depends on attracting and retaining qualified personnel. Our ability to sustain and grow our
business requires us to hire, retain and develop a highly skilled and diverse management team and workforce.
Failure to ensure that we have the leadership capacity with the necessary skill set and experience could
impede our ability to deliver our growth objectives and 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 disruptions and breaches in data security.
We use many information technology systems and their underlying infrastructure to operate our business. The
size and complexity of our computer systems make them potentially vulnerable to breakdown, malicious
intrusion and random attack. Recent acquisitions have resulted in additional decentralized systems that add to
the complexity of our information technology infrastructure. Likewise, data privacy breaches by employees or
others with permitted access to our systems may pose a risk that sensitive data may be exposed to
unauthorized persons or to the public. While we have invested in layers of data and information technology
protection, and continually monitor cybersecurity threats, there can be no assurance that our efforts will
prevent disruptions or breaches in our systems that could adversely affect our business.
Item 1B. Unresolved Staff Comments
Not Applicable.
22