Polaris 2015 Annual Report Download - page 97

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The Company recognized a loss of $2,994,000 and $4,820,000 in cost of sales on commodity contracts not
designated as hedging instruments in 2015 and 2014, respectively.
Note 12. Segment Reporting
The Company’s reportable segments are based on the Company’s method of internal reporting, which
generally segregates the operating segments by product line, inclusive of wholegoods and PG&A. The internal
reporting of these operating segments is defined based, in part, on the reporting and review process used by
the Company’s President and Chief Operating Officer. The Company has four operating segments: 1) ORV,
2) Snowmobiles, 3) Motorcycles, and 4) Global Adjacent Markets, and three reportable segments: 1) ORV/
Snowmobiles, 2) Motorcycles, and 3) Global Adjacent Markets. Prior to the third quarter ended
September 30, 2015, we aggregated our four operating segments into one reportable segment. However, the
Company now believes disaggregating one segment into three reportable segments provides more beneficial
information for our financial statement users.
The ORV/Snowmobiles segment includes the aggregated results of our ORV and Snowmobiles operating
segments. The Motorcycles and Global Adjacent Markets segments include the results for those respective
operating segments. The Corporate amounts include costs that are not allocated to individual segments, which
include incentive-based compensation and other unallocated manufacturing costs. Additionally, given the
commonality of customers, manufacturing and asset management, the Company does not maintain separate
balance sheets for each segment. Accordingly, the segment information presented below is limited to sales and
gross profit data.
For the Years Ended December 31,
($ in thousands) 2015 2014 2013
Sales
ORV/Snowmobiles ...................... $3,708,933 $3,741,154 $3,255,033
Motorcycles ........................... 698,257 418,546 263,443
Global Adjacent Markets ................. 312,100 319,948 258,592
Total sales ............................... 4,719,290 4,479,648 3,777,068
Gross profit
ORV/Snowmobiles ...................... 1,190,630 1,206,553 1,049,794
Motorcycles ........................... 97,261 54,427 48,208
Global Adjacent Markets ................. 84,211 88,797 63,934
Corporate ............................ (33,060) (30,599) (41,057)
Total gross profit .......................... $1,339,042 $1,319,178 $1,120,879
Sales to external customers based on the location of the customer and property and equipment, net, by
geography are presented in the tables below (in thousands):
For the Years Ended December 31,
2015 2014 2013
United States ............................. $3,688,980 $3,339,905 $2,721,300
Canada ................................. 378,725 454,608 463,316
Other foreign countries ...................... 651,585 685,135 592,452
Consolidated sales .......................... $4,719,290 $4,479,648 $3,777,068
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