Polaris 2008 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2008 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.

Page out of 90

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90

21.7%
22.1%
22.9%
06
22.0%
05
23.5%
04
22.9%
03
22.1%
02
21.0%
01
21.2%
00
20.1%
99 07 08
$178
$189
$198
06
$211
05
$202
04
$179
03
$177
02
$151
01
$130
00
$120
99 07 08
$53
$64
$77
06
$90
05
$89
04
$59
03
$52
02
$53
01
$62
00
$61
99 07 08
Purchase of Property and Equipment
for Continuing Operations
Polaris at a Glance
Products
Polaris Industries Inc. (Polaris) designs, manufactures and markets innovative, high-quality, high-
performance motorized products for recreation and utility use. Our product lines consist of all-terrain
recreational and utility off-road vehicles (ORVs); snowmobiles; motorcycles; and related parts,
garments and accessories (PG&A).
Distribution
Polaris products are sold through a network of approximately 1,500 independent dealers in
North America, and seven subsidiaries and 43 distributors in approximately 130 countries outside
of North America.
North American Dealers
•  Off-Road Vehicles – 1,500
•  Snowmobiles – 800
•  Victory – 315
•  PG&A – 1,500
Financial Services
Polaris has a 50/50 joint venture with GE to provide floor plan financing to Polaris dealers in the
United States. Polaris also has arrangements with HSBC, GE and Sheffield to provide revolving and
installment consumer and commercial credit to customers of Polaris dealers for Polaris products.
During 2008, income from the Company’s financial services arrangements totaled $21 million. Polaris
has no credit, interest rate or funding risk under the retail credit contracts with HSBC, GE or Sheffield.
Polaris also provides extended service contracts to consumers, and certain other insurance contracts
to dealers and consumers through various third-party suppliers.
Manufacturing/Research & Development
Polaris designs, tests and assembles its products at its manufacturing and research and development
facilities in the upper Midwest United States. The Company prides itself on being close to the customer,
and extremely flexible and efficient in designing, testing and manufacturing Polaris products.
New-product introductions are the lifeblood of the Company. Polaris has a state-of-the-art Product
Development Center in Wyoming, Minnesota, which will continue to drive new-product introductions
and improve the quality, speed to market and success rate of those new products.
Gross Profit Percentage
from Continuing Operations
Cash Flow Provided
from Continuing Operations(1)
67%
10%
5%
18%
N Off-Road Vehicles
N Snowmobiles
N Victory Motorcycles
N PG&A
Percentage of Sales
by Product Line
■ United States
■ International
■ Canada
70%
16%
14%
Percentage of Sales
by Geographic Area
Scorecard
(dollars in millions)(dollars in millions, before changes in current
operating items and deferred taxes)
(1) A reconciliation of the Company’s calculation of Cash Flow Provided to the most directly comparable cash flow measure, as required by Regulation G,
appears on Page 11 of this Annual Report.