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POLARIS INDUSTRIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Organization and Significant Accounting Policies
Polaris Industries Inc. (‘‘Polaris’’ or the ‘‘Company’’), a Minnesota corporation, and its subsidiaries are
engaged in the design, engineering, manufacturing and marketing of innovative, high-quality, high-performance
Off-Road Vehicles (ORV), Snowmobiles, Motorcycles and Small Vehicles (SV). Polaris products, together with
related parts, garments and accessories are sold worldwide through a network of independent dealers and
distributors and its subsidiaries. The primary markets for our products are the United States, Canada, Western
Europe, Australia and Mexico.
Basis of presentation. The accompanying consolidated financial statements include the accounts of Polaris and
its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated in
consolidation. Income from financial services is reported as a component of operating income to better reflect
income from ongoing operations, of which financial services has a significant impact.
On September 2, 2004, the Company announced its decision to discontinue the manufacture of marine
products effective immediately. Material financial results for the marine products division are reported
separately as discontinued operations for all periods presented.
The Company evaluates consolidation of entities under Accounting Standards Codification (ASC) Topic 810.
This Topic requires management to evaluate whether an entity or interest is a variable interest entity and
whether the company is the primary beneficiary. Polaris used the guidelines to analyze the Company’s
relationships, including its relationship with Polaris Acceptance, and concluded that there were no variable
interest entities requiring consolidation by the Company in 2014, 2013 and 2012.
In April 2014, the Company completed an acquisition of Kolpin Outdoors, Inc. (‘‘Kolpin’’), and in November
2014, completed the acquisition of certain assets of LSI Products Inc. and Armor Holdings, LLC. (‘‘Pro
Armor’’). Kolpin is a leading aftermarket brand delivering purpose-built and universal-fit ORV accessories and
lifestyle products. Pro Armor is an industry-leading brand in performance side-by-side accessories, that
operates under the Pro Armor brand. The Company has included the financial results of the acquisitions in its
consolidated results of operations beginning on the respective acquisition dates; however, the acquisitions did
not have a material impact on Polaris’ consolidated financial position or results of operations. Refer to Note 5
for additional information regarding the acquisitions of Kolpin and Pro Armor.
In April 2013, the Company completed an acquisition of A.M. Holding S.A.S., which operates under the name
Aixam Mega S.A.S. (‘‘Aixam’’). The Company has included the financial results of the acquisition in its
consolidated results of operations beginning on the acquisition date; however, the acquisition did not have a
material impact on Polaris’ consolidated financial position or results of operations.
Reclassifications. Certain reclassifications of previously reported balance sheet amounts have been made to
conform to the current year presentation. The reclassifications had no impact on the consolidated statements
of income, current assets or current liabilities in the consolidated balance sheets, as previously reported.
Use of estimates. The preparation of financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate
results could differ from those estimates.
Fair value measurements. Fair value is the exchange price that would be received for an asset or paid to
transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an
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