Polaris 2011 Annual Report Download - page 49
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represented 70 percent, 71 percent and 69 percent of total company sales in 2011, 2010 and 2009, respectively.
Sales in the United States for 2010 increased 31 percent compared to 2009, primarily resulting from higher
shipments in all product lines due to market share gains driven by innovative products.
Canada:
Canadian sales increased 32 percent in 2011 compared to 2010. Fluctuations in the Canadian currency rate
compared to the United States dollar accounted for a five percent increase in sales for 2011 compared to 2010.
Increased volume was the primary contributor for the remainder of the increase in 2011 due to strong retail sales
demand in Canada for our products. Canadian sales increased 17 percent in 2010 compared to 2009. Fluctuations
in the Canadian currency rate compared to the United States dollar accounted for a nine percent increase in sales
for 2010 compared to 2009. Increased volume was the primary contributor for the remainder of the increase in
2010 due to strong retail sales demand in Canada for our products.
Other Foreign Countries:
Sales in other foreign countries, primarily in Europe, increased 39 percent for 2011 compared to 2010.
Favorable currency rates accounted for six percent of the increase for the 2011 year compared to 2010. The
remainder of the increase was primarily driven by higher volume largely related to market share gains for ORV
and Victory motorcycles. Sales in other foreign countries, primarily in Europe, increased 21 percent for 2010
compared to 2009. Favorable currency rates accounted for two percent of the increase for the 2010 year
compared to 2009. The remainder of the increase was primarily driven by higher volume largely related to
market share gains.
Cost of Sales:
For the Year Ended December 31,
($ in millions) 2011
Percent of
Total
Cost of Sales 2010
Percent of
Total
Cost of Sales
Change
2011 vs.
2010 2009
Percent of
Total Cost of
Sales
Change
2010 vs.
2009
Purchased materials and
services ................ $1,650.8 86% $1,208.4 83% 37% $ 968.6 83% 25%
Labor and benefits .......... 165.5 9% 151.9 10% 9% 108.1 9% 41%
Depreciation and
amortization ............ 53.9 3% 56.9 4% (5)% 55.0 5% 3%
Warranty costs ............ 46.2 2% 43.7 3% 6% 41.0 3% 7%
Total Cost of Sales ......... $1,916.4 100% $1,460.9 100% 31% $1,172.7 100% 25%
Percentage of sales ..... 72.1% 73.4% -130 basis 74.9% -150 basis
points points
For 2011, cost of sales increased 31 percent to $1,916.4 million compared to $1,460.9 million in 2010. The
increase in cost of sales in 2011 resulted primarily from the effect of a 24 percent sales volume increase and a
richer mix of products on purchased materials and services, and labor and benefits offset somewhat by continued
product cost reduction efforts in 2011. For 2010, cost of sales increased 25 percent to $1,460.9 million compared
to $1,172.7 million in 2009. The increase in cost of sales in 2010 resulted primarily from the effect of a
21 percent sales volume increase and a richer mix of products on purchased materials and services, and labor and
benefits offset somewhat by continued product cost reduction efforts in 2010.
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