Polaris 2013 Annual Report Download - page 91

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As of December 31,
2013 2012
Finance receivables, net ........................... $226,742 $166,025
Other assets ................................... 172 100
Total Assets ................................ $226,914 $166,125
Notes payable .................................. $ 85,096 $ 44,494
Other liabilities ................................. 3,384 7,655
Partners’ capital ................................. 138,434 113,976
Total Liabilities and Partners’ Capital .............. $226,914 $166,125
Polaris has agreements with Capital One, GE Money Bank and Sheffield Financial under which these financial
institutions provide financing to end consumers of Polaris products. Polaris’ income generated from these
agreements has been included as a component of income from financial services in the accompanying
consolidated statements of income.
Polaris also administers and 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 under 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.
Income from financial services as included in the consolidated statements of income is comprised of the
following (in thousands):
For the Years Ended
December 31,
2013 2012 2011
Equity in earnings of Polaris Acceptance ................ $ 4,983 $ 3,899 $ 4,444
Income from Securitization Facility .................... 15,187 11,862 7,686
Income from HSBC/Capital One, GE Bank and Sheffield
retail credit agreements .......................... 22,481 15,296 9,056
Income from other financial services activities ............ 3,250 2,863 2,906
Total income from financial services ................... $45,901 $33,920 $24,092
Note 9. Investment in Other Affiliates
Investment in other affiliates in the consolidated balance sheets represents the Company’s investment in
nonmarketable securities of strategic companies. Investment in other affiliates as of December 31, 2013 and
2012 is comprised of investments in Brammo, Inc. (‘‘Brammo’’) and Eicher-Polaris Private Limited (EPPL)
with the following balances (in thousands):
As of December 31,
2013 2012
Investment in Brammo ............................. $ 9,500 $12,000
Investment in EPPL ............................... 6,456 817
Total investment in other affiliates ..................... $15,956 $12,817
Brammo is a privately held manufacturer of electric motorcycles. In the first half of 2013, Polaris made an
additional $2,500,000 investment in Brammo. The investment in Brammo is accounted for under the cost
method. Brammo is in the early stages of development and production. As such, a risk exists that Brammo
may not be able to secure sufficient financing to reach viability through cash flow from operations.
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