Polaris 2011 Annual Report Download - page 84

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Summarized financial information for Polaris Acceptance reflecting the effects of the Securitization Facility
is presented as follows (in thousands):
For the Year Ended December 31,
2011 2010 2009
Revenues ...................................... $13,018 $12,459 $12,559
Interest and operating expenses ..................... 4,131 3,311 4,517
Net income ..................................... $ 8,887 $ 9,148 $ 8,042
As of December 31,
2011 2010
Finance receivables, net ........................... $90,788 $174,040
Other assets ..................................... 73 67
Total Assets ................................. $90,861 $174,107
Notes payable/(receivable) ......................... $ (2,435) $ 92,863
Other liabilities .................................. 8,794 6,980
Partners’ capital .................................. 84,502 74,264
Total Liabilities and Partners’ Capital ............ $90,861 $174,107
In August 2005, a wholly-owned subsidiary of Polaris entered into a multi-year contract with HSBC Bank
Nevada, National Association (“HSBC”), formerly known as Household Bank (SB), N.A., under which HSBC is
continuing to manage the Polaris private label credit card program under the StarCard label to provide financing
for Polaris products. During 2010, Polaris and HSBC extended the term of the agreement on similar terms to
October 2013. During 2011 it was announced that HSBC’s U.S. Credit Card and Retail Services business would
be acquired by Capital One, subject to regulatory approval. The transaction is expected to close in the second
quarter of 2012. Polaris’ income generated from the HSBC agreement has been included as a component of
Income from financial services in the accompanying consolidated statements of income.
In April 2006, a wholly-owned subsidiary of Polaris entered into a multi-year contract with GE Money Bank
(“GE Bank”) under which GE Bank makes available closed-end installment consumer and commercial credit to
customers of Polaris dealers for both Polaris and non-Polaris products. In November 2010, the Company
extended its installment credit agreement to March 2016 under which GE Bank will provide exclusive
installment credit lending for Victory motorcycles. Polaris’ income generated from the GE Bank agreement has
been included as a component of Income from financial services in the accompanying consolidated statements of
income.
In January 2009, a wholly-owned subsidiary of Polaris entered into a multi-year contract with Sheffield
Financial (“Sheffield”) pursuant to which Sheffield agreed to make available closed-end installment consumer
and commercial credit to customers of Polaris dealers for Polaris products. In October 2010, Polaris extended its
installment credit agreement to February 2016 under which Sheffield will provide exclusive installment credit
lending for ORV and Snowmobiles. Polaris’ income generated from the Sheffield agreement has been included
as a component of Income from financial services in the accompanying consolidated statements of income.
Polaris also provides extended service contracts to consumers and certain insurance contracts to dealers and
consumers through various third-party suppliers. Polaris does not retain any warranty, insurance or financial risk
in any of these arrangements. Polaris’ service fee income generated from these arrangements has been included
as a component of Income from financial services in the accompanying consolidated statements of income.
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