Polaris 2008 Annual Report Download - page 28

materials should write to Polaris Industries Inc., 2100 Highway 55, Medina, Minnesota 55340, Attention: Investor
Relations. Information contained on Polaris’ website is not part of this report.
Forward-Looking Statements
This 2008 Annual Report contains not only historical information, but also “forward-looking statements”
intended to qualify for the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These
“forward-looking statements” can generally be identified as such because the context of the statement will include
words such as the Company or management “believes,” “anticipates,” “expects,” “estimates” or words of similar
import. Similarly, statements that describe the Company’s future plans, objectives or goals are also forward-
looking. Forward-looking statements may also be made from time to time in oral presentations, including telephone
conferences and/or webcasts open to the public. Shareholders, potential investors and others are cautioned that all
forward-looking statements involve risks and uncertainties that could cause results in future periods to differ
materially from those anticipated by some of the statements made in this report, including the risks and uncertainties
described below under the heading entitled “Item 1A — Risk Factors” and elsewhere in this report. The risks and
uncertainties discussed in this report are not exclusive and other factors that the Company may consider immaterial
or do not anticipate may emerge as significant risks and uncertainties.
Any forward-looking statements made in this report or otherwise speak only as of the date of such statement,
and Polaris undertakes no obligation to update such statements to reflect actual results or changes in factors or
assumptions affecting such forward-looking statements. Polaris advises you, however, to consult any further
disclosures made on related subjects in future quarterly reports on Form 10-Q and current reports on Form 8-K that
are filed with or furnished to the Securities and Exchange Commission.
Item 1A. Risk Factors
The following are significant factors known to Polaris that could materially adversely affect the Company’s
business, financial condition, or operating results, as well as adversely affect the value of an investment in Polaris
common stock.
Polaris’ products are subject to extensive U.S. federal and state and international safety, environmental
and other government regulation that may require the Company to incur expenses or modify product
offerings in order to maintain compliance with the actions of regulators.
Polaris products are subject to extensive laws and regulations relating to safety, environmental and other
regulations promulgated by the U.S. federal government and individual states as well as international regulatory
authorities. Although Polaris believes that its snowmobiles, ORVs, and motorcycles have always complied with
applicable vehicle safety and emissions standards and related regulations, there can be no assurance that future
regulations will not require additional safety standards or emission reductions that would require additional
expenses and/or modification of product offerings in order to maintain such compliance. Although Polaris is unable
to predict the ultimate impact of adopted or proposed regulations on its business and operating results, Polaris
believes that its business would be no more adversely affected than those of its competitors by the adoption of any
pending laws or regulations. Polaris products are also subject to laws and regulations that restrict the use or manner
of use during certain hours and locations. Polaris continues to monitor these activities in conjunction with industry
associations and supports balanced and appropriate programs that educate the product user on safe use of its
products and how to protect the environment.
A significant adverse determination in any material product liability claim against Polaris could adversely
affect the operating results or financial condition.
Polaris’ product liability insurance limits and coverage were adversely affected by the general decline in the
availability of liability insurance starting in 1985. As a result of the high cost of premiums, and the historically
insignificant amount of claims paid by Polaris, Polaris was self-insured from June 1985 to June 1996. In June 1996,
Polaris purchased excess insurance coverage for catastrophic product liability claims for incidents occurring
subsequent to the policy date that exceeded its self-insured retention levels. In September 2002, due to insurance
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