Polaris 2015 Annual Report Download - page 52

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The volume increases in 2015 are primarily the result of shipping more motorcycles and Global Adjacent
Markets vehicles, given increased consumer retail demand for those products. The volume increase in 2014
was primarily the result of shipping more ORVs, Snowmobiles, Motorcycles, Global Adjacent Markets vehicles
and related PG&A items to dealers given increased consumer retail demand for our products worldwide.
Product mix and price contributed six percent to the growth for 2015 and 2014, respectively, primarily due to
the positive benefit of a greater number of higher priced ORVs sold to dealers relative to our other
businesses. The impact from currency rates on our Canadian and other foreign subsidiaries’ sales, when
translated to U.S. dollars, decreased sales by four percent in 2015 and one percent in 2014 compared to the
respective prior years. Specifically, the U.S. dollar to Canadian dollar exchange rate, and overall strength of
the U.S. dollar compared to other international currencies negatively impacted our 2015 sales by
approximately $160.0 million when compared to the prior year period exchange rates.
Our sales by reporting segment, which includes the respective PG&A, were as follows:
For the Years Ended December 31,
Percent of Percent of Percent Change Percent of Percent Change
($ in millions) 2015 Sales 2014 Sales 2015 vs. 2014 2013 Sales 2014 vs. 2013
ORV/Snowmobiles ...... $3,708.9 78% $3,741.2 84% (1)% $3,255.1 86% 15%
Motorcycles ........... 698.3 15% 418.5 9% 67% 263.4 7% 59%
Global Adjacent Markets . 312.1 7% 319.9 7% (2)% 258.6 7% 24%
Total Sales ............ $4,719.3 100% $4,479.6 100% 5% $3,777.1 100% 19%
ORV/Snowmobiles
Off-Road Vehicles
ORV sales, inclusive of PG&A sales, of $3,304.4 million in 2015, which include core ATV, RANGER and RZR
side-by-side vehicles, decreased one percent from 2014. This decrease reflects external challenges such as
currency pressures, heightened competitive product offerings and slower retail sales, particularly in oil and gas
producing regions of North America. Despite the external challenges, we continued North American market
share gains for both ATVs and side-by-side vehicles driven by strong consumer enthusiasm for our ORV
offerings, including an expanded line-up of innovative new models. Polaris’ North American ORV unit retail
sales to consumers increased low-single digits percent for 2015 compared to 2014, with both ATV and
side-by-side vehicles unit retail sales growing low-single digits percent over the prior year. North American
dealer inventories of ORVs decreased mid-single digits percent from 2014. ORV sales outside of North
America decreased approximately 10 percent in 2015 compared to 2014, primarily due to decreased ATV sales
and negative currencies. For 2015, the average ORV per unit sales price was approximately flat compared to
2014’s per unit sales price.
ORV sales, inclusive of PG&A sales, of $3,322.9 million in 2014, which include core ATV, RANGER and RZR
side-by-side vehicles, and the Company’s new Polaris ACE↧ category, increased 16 percent from 2013. This
increase reflects continued market share gains for both ATVs and side-by-side vehicles driven by strong
consumer enthusiasm for our ORV offerings, including an expanded line-up of innovative new models and the
introduction of the new ACE category. Polaris’ North American ORV unit retail sales to consumers increased
low-double digits percent for 2014 compared to 2013, with ATV unit retail sales growing mid-single digits
percent and side-by-side vehicle unit retail sales increasing double-digits percent over the prior year. The
Company’s ACE category, introduced early in 2014, accelerated its retail sales sequentially throughout 2014.
North American dealer inventories of ORVs increased high-teens percent 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 four percent over 2013’s per unit sales price,
primarily as a result of the increased sales of higher priced side-by-side vehicle models
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