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UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 10-K
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
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OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2016
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Commission file number 001-11411
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Minnesota
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41-1790959
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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2100 Highway 55, Medina MN
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55340
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(Address of principal executive offices)
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(Zip Code)
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(763) 542-0500
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
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Title of Class
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Name of Each Exchange on Which Registered
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Common Stock, $.01 par value
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New York Stock Exchange
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Securities registered pursuant to Section 12(g) of the Act:
None
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DOCUMENTS INCORPORATED BY REFERENCE:
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POLARIS INDUSTRIES INC.
2016 FORM 10-K ANNUAL REPORT
TABLE OF CONTENTS
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Page
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PART I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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||
Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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||
Item 11.
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||
Item 12.
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Item 13.
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||
Item 14.
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PART IV
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Item 15.
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Item 16.
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Name
|
|
Age
|
|
Title
|
Scott W. Wine
|
|
49
|
|
Chairman of the Board of Directors and Chief Executive Officer
|
Kenneth J. Pucel
|
|
50
|
|
Executive Vice President—Global Operations, Engineering and Lean
|
Michael T. Speetzen
|
|
47
|
|
Executive Vice President—Finance and Chief Financial Officer
|
Robert P. Mack
|
|
47
|
|
Senior Vice President—Corporate Development and Strategy, and President—Adjacent Markets
|
Stacy L. Bogart
|
|
53
|
|
Senior Vice President—General Counsel, Compliance Officer and Secretary
|
Michael D. Dougherty
|
|
49
|
|
President—International
|
Stephen L. Eastman
|
|
52
|
|
President—Parts, Garments and Accessories
|
Matthew J. Homan
|
|
45
|
|
President—Off-Road Vehicles
|
James P. Williams
|
|
54
|
|
Senior Vice President—Chief Human Resources Officer
|
Location
|
|
Facility Type/Use
|
|
Owned or Leased
|
|
Square
Footage |
Medina, Minnesota
|
|
Headquarters
|
|
Owned
|
|
130,000
|
Plymouth, Minnesota
|
|
Headquarters
|
|
Primarily owned
|
|
175,000
|
Roseau, Minnesota
|
|
Wholegoods manufacturing and R&D
|
|
Owned
|
|
733,000
|
Huntsville, Alabama
|
|
Wholegoods manufacturing
|
|
Owned
|
|
725,000
|
Milford, Iowa
|
|
Wholegoods manufacturing
|
|
Primarily owned
|
|
460,000
|
Monterrey, Mexico
|
|
Wholegoods manufacturing
|
|
Owned
|
|
440,000
|
Opole, Poland
|
|
Wholegoods manufacturing
|
|
Leased
|
|
300,000
|
Osceola, Wisconsin
|
|
Component parts & engine manufacturing
|
|
Owned
|
|
286,000
|
Spirit Lake, Iowa
|
|
Wholegoods manufacturing
|
|
Owned
|
|
273,000
|
Chanas, France
|
|
Wholegoods manufacturing
|
|
Owned
|
|
196,000
|
Shanghai, China
|
|
Wholegoods manufacturing
|
|
Leased
|
|
158,000
|
Anaheim, California
|
|
Wholegoods manufacturing
|
|
Leased
|
|
151,000
|
Bourran, France
|
|
Wholegoods manufacturing and R&D
|
|
Leased
|
|
100,000
|
Aix-les-Bains, France
|
|
Wholegoods manufacturing and R&D
|
|
Owned
|
|
98,000
|
Spearfish, South Dakota
|
|
Component parts manufacturing
|
|
Owned
|
|
51,000
|
Wyoming, Minnesota
|
|
Research and development facility
|
|
Owned
|
|
272,000
|
Burgdorf, Switzerland
|
|
Research and development facility
|
|
Leased
|
|
17,000
|
Wilmington, Ohio
|
|
Distribution center
|
|
Leased
|
|
429,000
|
Vermillion, South Dakota
|
|
Distribution center
|
|
Primarily owned
|
|
643,000
|
Coppell, Texas
|
|
Distribution center
|
|
Leased
|
|
165,000
|
Jacksonville, Florida
|
|
Distribution center
|
|
Leased
|
|
144,000
|
Columbiana, Ohio
|
|
Distribution center
|
|
Owned
|
|
102,000
|
Compton, California
|
|
Distribution center and office facility
|
|
Leased
|
|
254,000
|
Rigby, Idaho
|
|
Distribution center and office facility
|
|
Owned
|
|
55,000
|
Shakopee, Minnesota
|
|
Wholegoods distribution
|
|
Leased
|
|
870,000
|
Altona, Australia
|
|
Wholegoods distribution
|
|
Leased
|
|
215,000
|
Milford, Iowa
|
|
Wholegoods distribution
|
|
Leased
|
|
100,000
|
Winnipeg, Canada
|
|
Office facility
|
|
Leased
|
|
15,000
|
Rolle, Switzerland
|
|
Office facility
|
|
Leased
|
|
8,000
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
||||||||||||
Polaris Industries Inc.
|
$
|
100.00
|
|
|
$
|
153.29
|
|
|
$
|
269.62
|
|
|
$
|
283.83
|
|
|
$
|
163.91
|
|
|
$
|
161.08
|
|
S&P Midcap 400 Index
|
100.00
|
|
|
117.88
|
|
|
157.37
|
|
|
172.74
|
|
|
168.98
|
|
|
204.03
|
|
||||||
Recreational Vehicles Industry Group Index—Morningstar Group
|
100.00
|
|
|
137.54
|
|
|
213.25
|
|
|
210.28
|
|
|
153.46
|
|
|
213.95
|
|
Issuer Purchases of Equity Securities
|
|||||||||||
Period
|
Total Number of
Shares Purchased |
|
Average Price Paid
per Share |
|
Total Number of Shares Purchased as Part of Publicly Announced Program
|
|
Maximum Number of Shares That May Yet Be Purchased Under the Program(1)
|
||||
October 1–31, 2016
|
150,000
|
|
|
$
|
75.51
|
|
|
150,000
|
|
|
8,418,000
|
November 1–30, 2016
|
950,000
|
|
|
83.80
|
|
|
950,000
|
|
|
7,468,000
|
|
December 1–31, 2016
|
5,000
|
|
|
90.72
|
|
|
5,000
|
|
|
7,463,000
|
|
Total
|
1,105,000
|
|
|
$
|
82.71
|
|
|
1,105,000
|
|
|
7,463,000
|
(1)
|
The Board of Directors has authorized the cumulative repurchase of up to an aggregate of
86.5 million
shares of the Company’s common stock (the “Program”). Of that total,
79.0 million
shares have been repurchased cumulatively from 1996 through
December 31, 2016
. This Program does not have an expiration date.
|
|
For the Years Ended December 31,
|
||||||||||||||
(Dollars in millions, except per-share data)
|
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||
Statement of Operations Data
|
|
|
|
|
|
||||||||||
Sales Data:
|
|
|
|
|
|
||||||||||
Total sales
|
$
|
4,516.6
|
|
$
|
4,719.3
|
|
$
|
4,479.6
|
|
$
|
3,777.1
|
|
$
|
3,209.8
|
|
Percent change from prior year
|
(4
|
)%
|
5
|
%
|
19
|
%
|
18
|
%
|
21
|
%
|
|||||
Gross Profit Data:
|
|
|
|
|
|
||||||||||
Total gross profit
|
$
|
1,105.6
|
|
$
|
1,339.0
|
|
$
|
1,319.2
|
|
$
|
1,120.9
|
|
$
|
925.3
|
|
Percent of sales
|
24.5
|
%
|
28.4
|
%
|
29.4
|
%
|
29.7
|
%
|
28.8
|
%
|
|||||
Operating Expense Data:
|
|
|
|
|
|
||||||||||
Total operating expenses
|
$
|
833.8
|
|
$
|
692.2
|
|
$
|
666.2
|
|
$
|
588.9
|
|
$
|
480.8
|
|
Percent of sales
|
18.5
|
%
|
14.7
|
%
|
14.9
|
%
|
15.6
|
%
|
15.0
|
%
|
|||||
Operating Income Data:
|
|
|
|
|
|
||||||||||
Total operating income
|
$
|
350.3
|
|
$
|
716.1
|
|
$
|
714.7
|
|
$
|
577.9
|
|
$
|
478.4
|
|
Percent of sales
|
7.8
|
%
|
15.2
|
%
|
16.0
|
%
|
15.3
|
%
|
14.9
|
%
|
|||||
Net Income Data:
|
|
|
|
|
|
||||||||||
Net income from continuing operations
|
$
|
212.9
|
|
$
|
455.4
|
|
$
|
454.0
|
|
$
|
381.1
|
|
$
|
312.3
|
|
Percent of sales
|
4.7
|
%
|
9.6
|
%
|
10.1
|
%
|
10.1
|
%
|
9.7
|
%
|
|||||
Diluted net income per share from continuing operations
|
$
|
3.27
|
|
$
|
6.75
|
|
$
|
6.65
|
|
$
|
5.40
|
|
$
|
4.40
|
|
Net income
|
$
|
212.9
|
|
$
|
455.4
|
|
$
|
454.0
|
|
$
|
377.3
|
|
$
|
312.3
|
|
Diluted net income per share
|
$
|
3.27
|
|
$
|
6.75
|
|
$
|
6.65
|
|
$
|
5.35
|
|
$
|
4.40
|
|
Cash Flow Data:
|
|
|
|
|
|
||||||||||
Cash flow provided by continuing operations
|
$
|
571.8
|
|
$
|
440.2
|
|
$
|
529.3
|
|
$
|
499.2
|
|
$
|
416.1
|
|
Purchase of property and equipment
|
209.1
|
|
249.5
|
|
205.1
|
|
251.4
|
|
103.1
|
|
|||||
Repurchase and retirement of common stock
|
245.8
|
|
293.6
|
|
81.8
|
|
530.0
|
|
127.5
|
|
|||||
Cash dividends to shareholders
|
140.3
|
|
139.3
|
|
126.9
|
|
113.7
|
|
101.5
|
|
|||||
Cash dividends per share
|
$
|
2.20
|
|
$
|
2.12
|
|
$
|
1.92
|
|
$
|
1.68
|
|
$
|
1.48
|
|
Balance Sheet Data (at end of year):
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
127.3
|
|
$
|
155.3
|
|
$
|
137.6
|
|
$
|
92.2
|
|
$
|
417.0
|
|
Current assets
|
1,191.0
|
|
1,152.9
|
|
1,096.6
|
|
865.7
|
|
1,017.8
|
|
|||||
Total assets
|
3,099.6
|
|
2,385.7
|
|
2,074.9
|
|
1,685.5
|
|
1,488.5
|
|
|||||
Current liabilities
|
959.8
|
|
826.8
|
|
850.8
|
|
748.1
|
|
631.0
|
|
|||||
Long-term debt and capital lease obligations
|
1,138.1
|
|
456.4
|
|
223.6
|
|
284.3
|
|
104.3
|
|
|||||
Shareholders’ equity
|
867.0
|
|
981.5
|
|
861.3
|
|
535.6
|
|
690.5
|
|
|
Percent change in total Company sales compared to the prior year
|
||||
|
2016
|
|
2015
|
||
Volume
|
(5
|
)%
|
|
3
|
%
|
Product mix and price
|
(1
|
)
|
|
6
|
|
Acquisitions
|
3
|
|
|
—
|
|
Currency
|
(1
|
)
|
|
(4
|
)
|
|
(4
|
)%
|
|
5
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||||||||||||||
($ in millions)
|
2016
|
|
Percent of
Sales |
|
2015
|
|
Percent of
Sales |
|
Percent
Change 2016 vs. 2015 |
|
2014
|
|
Percent of
Sales |
|
Percent
Change 2015 vs. 2014 |
|||||||||||
ORV/Snowmobiles
|
$
|
3,357.5
|
|
|
74
|
%
|
|
$
|
3,708.9
|
|
|
78
|
%
|
|
(9
|
)%
|
|
$
|
3,741.2
|
|
|
84
|
%
|
|
(1
|
)%
|
Motorcycles
|
708.5
|
|
|
16
|
%
|
|
698.3
|
|
|
15
|
%
|
|
1
|
%
|
|
418.5
|
|
|
9
|
%
|
|
67
|
%
|
|||
Global Adjacent Markets
|
341.9
|
|
|
8
|
%
|
|
312.1
|
|
|
7
|
%
|
|
10
|
%
|
|
319.9
|
|
|
7
|
%
|
|
(2
|
)%
|
|||
Other
|
108.7
|
|
|
2
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total Sales
|
$
|
4,516.6
|
|
|
100
|
%
|
|
$
|
4,719.3
|
|
|
100
|
%
|
|
(4
|
)%
|
|
$
|
4,479.6
|
|
|
100
|
%
|
|
5
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||||||||||||||
($ in millions)
|
2016
|
|
Percent of Total Sales
|
|
2015
|
|
Percent of Total Sales
|
|
Percent Change 2016 vs. 2015
|
|
2014
|
|
Percent of Total Sales
|
|
Percent Change 2015 vs. 2014
|
|||||||||||
United States
|
$
|
3,557.2
|
|
|
79
|
%
|
|
$
|
3,689.0
|
|
|
78
|
%
|
|
(4)
|
%
|
|
$
|
3,339.9
|
|
|
75
|
%
|
|
10
|
%
|
Canada
|
307.1
|
|
|
7
|
%
|
|
378.7
|
|
|
8
|
%
|
|
(19
|
)%
|
|
454.6
|
|
|
10
|
%
|
|
(17
|
)%
|
|||
Other foreign countries
|
652.3
|
|
|
14
|
%
|
|
651.6
|
|
|
14
|
%
|
|
0
|
%
|
|
685.1
|
|
|
15
|
%
|
|
(5
|
)%
|
|||
Total sales
|
$
|
4,516.6
|
|
|
100
|
%
|
|
$
|
4,719.3
|
|
|
100
|
%
|
|
(4)
|
%
|
|
$
|
4,479.6
|
|
|
100
|
%
|
|
5
|
%
|
|
For the Years Ended December 31,
|
|||||||||||||||||||||||||
($ in millions)
|
2016
|
|
Percent of Total Cost of Sales
|
|
2015
|
|
Percent of Total Cost of Sales
|
|
Change 2016 vs. 2015
|
|
2014
|
|
Percent of
Total Cost of Sales |
|
Change 2015 vs. 2014
|
|||||||||||
Purchased materials and services
|
$
|
2,840.8
|
|
|
83
|
%
|
|
$
|
2,929.9
|
|
|
87
|
%
|
|
(3
|
)%
|
|
$
|
2,757.6
|
|
|
87
|
%
|
|
6
|
%
|
Labor and benefits
|
250.7
|
|
|
7
|
%
|
|
258.7
|
|
|
8
|
%
|
|
(3
|
)%
|
|
244.1
|
|
|
8
|
%
|
|
6
|
%
|
|||
Depreciation and amortization
|
124.5
|
|
|
4
|
%
|
|
117.9
|
|
|
3
|
%
|
|
6
|
%
|
|
96.9
|
|
|
3
|
%
|
|
22
|
%
|
|||
Warranty costs
|
195.0
|
|
|
6
|
%
|
|
73.7
|
|
|
2
|
%
|
|
165
|
%
|
|
61.9
|
|
|
2
|
%
|
|
19
|
%
|
|||
Total cost of sales
|
$
|
3,411.0
|
|
|
100
|
%
|
|
$
|
3,380.2
|
|
|
100
|
%
|
|
1
|
%
|
|
$
|
3,160.5
|
|
|
100
|
%
|
|
7
|
%
|
Percentage of sales
|
75.5
|
%
|
|
|
|
71.6
|
%
|
|
|
|
+389 basis
|
|
|
70.6
|
%
|
|
|
|
+108 basis
|
|
||||||
|
|
|
|
|
|
|
|
|
points
|
|
|
|
|
|
|
points
|
|
|
For the Years Ended December 31,
|
|||||||||||||||||||||||||
($ in millions)
|
2016
|
|
Percent of Sales
|
|
2015
|
|
Percent of Sales
|
|
Change
2016 vs.
2015
|
|
2014
|
|
Percent of Sales
|
|
Change
2015 vs.
2014
|
|||||||||||
ORV/Snowmobiles
|
$
|
930.2
|
|
|
27.7
|
%
|
|
$
|
1,190.6
|
|
|
32.1
|
%
|
|
(22
|
)%
|
|
$
|
1,206.6
|
|
|
32.3
|
%
|
|
(1
|
)%
|
Motorcycles
|
91.4
|
|
|
12.9
|
%
|
|
97.3
|
|
|
13.9
|
%
|
|
(6
|
)%
|
|
54.4
|
|
|
13.0
|
%
|
|
79
|
%
|
|||
Global Adjacent Markets
|
95.1
|
|
|
27.8
|
%
|
|
84.2
|
|
|
27.0
|
%
|
|
13
|
%
|
|
88.8
|
|
|
27.8
|
%
|
|
(5
|
)%
|
|||
Other
|
19.8
|
|
|
18.3
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Corporate
|
(30.9
|
)
|
|
|
|
(33.1
|
)
|
|
|
|
(7
|
)%
|
|
(30.6
|
)
|
|
|
|
8
|
%
|
||||||
Total gross profit dollars
|
$
|
1,105.6
|
|
|
|
|
$
|
1,339.0
|
|
|
|
|
(17
|
)%
|
|
$
|
1,319.2
|
|
|
|
|
2
|
%
|
|||
Percentage of sales
|
24.5
|
%
|
|
|
|
28.4
|
%
|
|
|
|
-389 basis points
|
|
|
29.4
|
%
|
|
|
|
-108 basis points
|
|
|
For the Years Ended December 31,
|
||||||||||||||||
($ in millions)
|
2016
|
|
2015
|
|
Change
2016 vs. 2015 |
|
2014
|
|
Change
2015 vs. 2014 |
||||||||
Selling and marketing
|
$
|
342.2
|
|
|
$
|
316.7
|
|
|
8
|
%
|
|
$
|
314.5
|
|
|
1
|
%
|
Research and development
|
185.1
|
|
|
166.4
|
|
|
11
|
%
|
|
148.5
|
|
|
12
|
%
|
|||
General and administrative
|
306.5
|
|
|
209.1
|
|
|
47
|
%
|
|
203.2
|
|
|
3
|
%
|
|||
Total operating expenses
|
$
|
833.8
|
|
|
$
|
692.2
|
|
|
20
|
%
|
|
$
|
666.2
|
|
|
4
|
%
|
Percentage of sales
|
18.5
|
%
|
|
14.7
|
%
|
|
+379 basis points
|
|
|
14.9
|
%
|
|
-20 basis points
|
|
|
For the Years Ended December 31,
|
||||||||||||||||
($ in millions except per share data)
|
2016
|
|
2015
|
|
Change
2016 vs. 2015 |
|
2014
|
|
Change
2015 vs. 2014 |
||||||||
Interest expense
|
$
|
16.3
|
|
|
$
|
11.5
|
|
|
42
|
%
|
|
$
|
11.2
|
|
|
2
|
%
|
Equity in loss of other affiliates
|
$
|
6.9
|
|
|
$
|
6.8
|
|
|
1
|
%
|
|
$
|
4.1
|
|
|
65
|
%
|
Other expense, net
|
$
|
13.8
|
|
|
$
|
12.1
|
|
|
14
|
%
|
|
$
|
0.0
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
$
|
313.3
|
|
|
$
|
685.7
|
|
|
(54
|
)%
|
|
$
|
699.3
|
|
|
(2
|
)%
|
Provision for income taxes
|
$
|
100.3
|
|
|
$
|
230.4
|
|
|
(56
|
)%
|
|
$
|
245.3
|
|
|
(6
|
)%
|
Percentage of income before income taxes
|
32.0%
|
|
33.6%
|
|
-158 basis points
|
|
|
35.1%
|
|
-148 basis points
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
212.9
|
|
|
$
|
455.4
|
|
|
(53
|
)%
|
|
$
|
454.0
|
|
|
0
|
%
|
Diluted net income per share
|
$
|
3.27
|
|
|
$
|
6.75
|
|
|
(52
|
)%
|
|
$
|
6.65
|
|
|
2
|
%
|
Weighted average diluted shares outstanding
|
65.2
|
|
|
67.5
|
|
|
(3
|
)%
|
|
68.2
|
|
|
(1
|
)%
|
|||
NM = not meaningful
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
For the Years Ended December 31,
|
||||||||||
2016
|
|
2015
|
|
Change
|
|||||||
Total cash provided by (used for):
|
|
|
|
|
|
||||||
Operating activities
|
$
|
571.8
|
|
|
$
|
440.2
|
|
|
$
|
131.6
|
|
Investing activities
|
(909.3
|
)
|
|
(289.1
|
)
|
|
(620.2
|
)
|
|||
Financing activities
|
314.5
|
|
|
(120.1
|
)
|
|
434.6
|
|
|||
Impact of currency exchange rates on cash balances
|
(5.0
|
)
|
|
(13.3
|
)
|
|
8.3
|
|
|||
Increase (decrease) in cash and cash equivalents
|
$
|
(28.0
|
)
|
|
$
|
17.7
|
|
|
$
|
(45.7
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(In millions):
|
Total
|
|
<1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
>5 Years
|
||||||||||
Senior notes
|
$
|
200.0
|
|
|
—
|
|
|
$
|
25.0
|
|
|
$
|
175.0
|
|
|
—
|
|
||
Borrowings under our credit facility
|
172.1
|
|
|
—
|
|
|
—
|
|
|
172.1
|
|
|
—
|
|
|||||
Term loan facility
|
740.0
|
|
|
—
|
|
|
—
|
|
|
740.0
|
|
|
—
|
|
|||||
Notes Payable
|
13.6
|
|
|
$
|
1.2
|
|
|
2.7
|
|
|
2.4
|
|
|
$
|
7.3
|
|
|||
Interest expense
|
102.9
|
|
|
25.0
|
|
|
48.6
|
|
|
29.3
|
|
|
—
|
|
|||||
Capital leases
|
26.0
|
|
|
2.9
|
|
|
4.3
|
|
|
3.9
|
|
|
14.9
|
|
|||||
Operating leases
|
112.6
|
|
|
30.9
|
|
|
43.6
|
|
|
25.0
|
|
|
13.1
|
|
|||||
Total
|
$
|
1,367.2
|
|
|
$
|
60.0
|
|
|
$
|
124.2
|
|
|
$
|
1,147.7
|
|
|
$
|
35.3
|
|
Foreign Currency
|
|
|
|
Foreign currency hedging contracts
|
|
Currency impact compared to the prior year period
|
||||||
|
Currency Position
|
|
Notional amounts (in thousands of U.S. dollars)
|
|
Average exchange rate of open contracts
|
|
2016
|
|
2017
|
|||
Australian Dollar (AUD)
|
|
Long
|
|
$
|
22,498
|
|
|
$0.74 to 1 AUD
|
|
Neutral
|
|
Neutral
|
Canadian Dollar (CAD)
|
|
Long
|
|
65,154
|
|
|
$0.76 to 1 CAD
|
|
Negative
|
|
Negative
|
|
Euro
|
|
Long
|
|
—
|
|
|
—
|
|
Slightly negative
|
|
Negative
|
|
Japanese Yen
|
|
Short
|
|
1,371
|
|
|
107.93 Yen to $1
|
|
Negative
|
|
Slightly positive
|
|
Mexican Peso
|
|
Short
|
|
17,942
|
|
|
19.18 Peso to $1
|
|
Positive
|
|
Positive
|
|
Norwegian Kroner
|
|
Long
|
|
—
|
|
|
—
|
|
Slightly negative
|
|
Slightly negative
|
|
Swedish Krona
|
|
Long
|
|
—
|
|
|
—
|
|
Slightly negative
|
|
Slightly negative
|
|
Swiss Franc
|
|
Short
|
|
—
|
|
|
—
|
|
Slightly positive
|
|
Slightly positive
|
|
Page
|
|
/
S
/ S
COTT
W. W
INE
|
|
Scott W. Wine
|
Chairman and Chief Executive Officer
|
|
/
S
/ M
ICHAEL
T. S
PEETZEN
|
|
Michael T. Speetzen
|
Executive Vice President—Finance and
|
Chief Financial Officer
|
POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
|
|||||||
Assets
|
December 31, 2016
|
|
December 31, 2015
|
||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
127,325
|
|
|
$
|
155,349
|
|
Trade receivables, net
|
174,832
|
|
|
150,778
|
|
||
Inventories, net
|
746,534
|
|
|
710,001
|
|
||
Prepaid expenses and other
|
91,636
|
|
|
90,619
|
|
||
Income taxes receivable
|
50,662
|
|
|
46,175
|
|
||
Total current assets
|
1,190,989
|
|
|
1,152,922
|
|
||
Property and equipment:
|
|
|
|
||||
Land, buildings and improvements
|
386,366
|
|
|
301,874
|
|
||
Equipment and tooling
|
1,080,239
|
|
|
995,449
|
|
||
|
1,466,605
|
|
|
1,297,323
|
|
||
Less: accumulated depreciation
|
(739,009
|
)
|
|
(646,645
|
)
|
||
Property and equipment, net
|
727,596
|
|
|
650,678
|
|
||
Investment in finance affiliate
|
94,009
|
|
|
99,073
|
|
||
Deferred tax assets
|
188,471
|
|
|
166,538
|
|
||
Goodwill and other intangible assets, net
|
792,979
|
|
|
236,117
|
|
||
Other long-term assets
|
105,553
|
|
|
80,331
|
|
||
Total assets
|
$
|
3,099,597
|
|
|
$
|
2,385,659
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Current portion of debt, capital lease obligations, and notes payable
|
$
|
3,847
|
|
|
$
|
5,059
|
|
Accounts payable
|
273,742
|
|
|
299,660
|
|
||
Accrued expenses:
|
|
|
|
||||
Compensation
|
122,214
|
|
|
106,486
|
|
||
Warranties
|
119,274
|
|
|
56,474
|
|
||
Sales promotions and incentives
|
158,562
|
|
|
141,057
|
|
||
Dealer holdback
|
117,574
|
|
|
123,276
|
|
||
Other
|
162,432
|
|
|
88,030
|
|
||
Income taxes payable
|
2,106
|
|
|
6,741
|
|
||
Total current liabilities
|
959,751
|
|
|
826,783
|
|
||
Long-term income taxes payable
|
26,391
|
|
|
23,416
|
|
||
Capital lease obligations
|
17,538
|
|
|
19,660
|
|
||
Long-term debt
|
1,120,525
|
|
|
436,757
|
|
||
Deferred tax liabilities
|
9,127
|
|
|
13,733
|
|
||
Other long-term liabilities
|
90,497
|
|
|
74,188
|
|
||
Total liabilities
|
$
|
2,223,829
|
|
|
$
|
1,394,537
|
|
Deferred compensation
|
8,728
|
|
|
9,645
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Preferred stock $0.01 par value, 20,000 shares authorized, no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock $0.01 par value, 160,000 shares authorized, 63,109 and 65,309 shares issued and outstanding, respectively
|
$
|
631
|
|
|
$
|
653
|
|
Additional paid-in capital
|
650,162
|
|
|
596,143
|
|
||
Retained earnings
|
300,084
|
|
|
447,173
|
|
||
Accumulated other comprehensive loss, net
|
(83,837
|
)
|
|
(62,492
|
)
|
||
Total shareholders’ equity
|
867,040
|
|
|
981,477
|
|
||
Total liabilities and shareholders’ equity
|
$
|
3,099,597
|
|
|
$
|
2,385,659
|
|
POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
|
|||||||||||
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Sales
|
$
|
4,516,629
|
|
|
$
|
4,719,290
|
|
|
$
|
4,479,648
|
|
Cost of sales
|
3,411,006
|
|
|
3,380,248
|
|
|
3,160,470
|
|
|||
Gross profit
|
1,105,623
|
|
|
1,339,042
|
|
|
1,319,178
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Selling and marketing
|
342,235
|
|
|
316,669
|
|
|
314,449
|
|
|||
Research and development
|
185,126
|
|
|
166,460
|
|
|
148,458
|
|
|||
General and administrative
|
306,442
|
|
|
209,077
|
|
|
203,248
|
|
|||
Total operating expenses
|
833,803
|
|
|
692,206
|
|
|
666,155
|
|
|||
Income from financial services
|
78,458
|
|
|
69,303
|
|
|
61,667
|
|
|||
Operating income
|
350,278
|
|
|
716,139
|
|
|
714,690
|
|
|||
Non-operating expense:
|
|
|
|
|
|
||||||
Interest expense
|
16,319
|
|
|
11,456
|
|
|
11,239
|
|
|||
Equity in loss of other affiliates
|
6,873
|
|
|
6,802
|
|
|
4,124
|
|
|||
Other expense, net
|
13,835
|
|
|
12,144
|
|
|
10
|
|
|||
Income before income taxes
|
313,251
|
|
|
685,737
|
|
|
699,317
|
|
|||
Provision for income taxes
|
100,303
|
|
|
230,376
|
|
|
245,288
|
|
|||
Net income
|
$
|
212,948
|
|
|
$
|
455,361
|
|
|
$
|
454,029
|
|
Net income per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
3.31
|
|
|
$
|
6.90
|
|
|
$
|
6.86
|
|
Diluted
|
$
|
3.27
|
|
|
$
|
6.75
|
|
|
$
|
6.65
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
64,296
|
|
|
66,020
|
|
|
66,175
|
|
|||
Diluted
|
65,158
|
|
|
67,484
|
|
|
68,229
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Net income
|
$
|
212,948
|
|
|
$
|
455,361
|
|
|
$
|
454,029
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments, net of tax benefit of $195, $643 and $65
|
(19,773
|
)
|
|
(38,571
|
)
|
|
(44,371
|
)
|
|||
Unrealized gain (loss) on derivative instruments, net of tax benefit (expense) of $936, ($1,975) and $970
|
(1,572
|
)
|
|
3,320
|
|
|
(1,631
|
)
|
|||
Comprehensive income
|
$
|
191,603
|
|
|
$
|
420,110
|
|
|
$
|
408,027
|
|
POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In thousands, except per share data)
|
||||||||||||||||||||||
|
Number
of Shares |
|
Common
Stock |
|
Additional
Paid- In Capital |
|
Retained
Earnings |
|
Accumulated Other
Comprehensive Income (loss) |
|
Total
|
|||||||||||
Balance, December 31, 2013
|
65,623
|
|
|
$
|
656
|
|
|
$
|
360,616
|
|
|
$
|
155,572
|
|
|
$
|
18,761
|
|
|
$
|
535,605
|
|
Employee stock compensation
|
254
|
|
|
3
|
|
|
63,180
|
|
|
—
|
|
|
—
|
|
|
63,183
|
|
|||||
Deferred compensation
|
—
|
|
|
—
|
|
|
(3,020
|
)
|
|
(2,087
|
)
|
|
—
|
|
|
(5,107
|
)
|
|||||
Proceeds from stock issuances under employee plans
|
984
|
|
|
10
|
|
|
31,303
|
|
|
—
|
|
|
—
|
|
|
31,313
|
|
|||||
Tax effect of exercise of stock options
|
—
|
|
|
—
|
|
|
36,966
|
|
|
—
|
|
|
—
|
|
|
36,966
|
|
|||||
Cash dividends declared ($1.92 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(126,908
|
)
|
|
—
|
|
|
(126,908
|
)
|
|||||
Repurchase and retirement of common shares
|
(554
|
)
|
|
(6
|
)
|
|
(3,040
|
)
|
|
(78,766
|
)
|
|
—
|
|
|
(81,812
|
)
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
454,029
|
|
|
—
|
|
|
454,029
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46,002
|
)
|
|
(46,002
|
)
|
|||||
Balance, December 31, 2014
|
66,307
|
|
|
663
|
|
|
486,005
|
|
|
401,840
|
|
|
(27,241
|
)
|
|
861,267
|
|
|||||
Employee stock compensation
|
144
|
|
|
2
|
|
|
61,927
|
|
|
—
|
|
|
—
|
|
|
61,929
|
|
|||||
Deferred compensation
|
—
|
|
|
—
|
|
|
(2,994
|
)
|
|
6,877
|
|
|
—
|
|
|
3,883
|
|
|||||
Proceeds from stock issuances under employee plans
|
1,037
|
|
|
10
|
|
|
32,525
|
|
|
—
|
|
|
—
|
|
|
32,535
|
|
|||||
Tax effect of exercise of stock options
|
—
|
|
|
—
|
|
|
34,654
|
|
|
—
|
|
|
—
|
|
|
34,654
|
|
|||||
Cash dividends declared ($2.12 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(139,285
|
)
|
|
—
|
|
|
(139,285
|
)
|
|||||
Repurchase and retirement of common shares
|
(2,179
|
)
|
|
(22
|
)
|
|
(15,974
|
)
|
|
(277,620
|
)
|
|
—
|
|
|
(293,616
|
)
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
455,361
|
|
|
—
|
|
|
455,361
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35,251
|
)
|
|
(35,251
|
)
|
|||||
Balance, December 31, 2015
|
65,309
|
|
|
653
|
|
|
596,143
|
|
|
447,173
|
|
|
(62,492
|
)
|
|
981,477
|
|
|||||
Employee stock compensation
|
303
|
|
|
3
|
|
|
57,924
|
|
|
—
|
|
|
—
|
|
|
57,927
|
|
|||||
Deferred compensation
|
—
|
|
|
—
|
|
|
1,379
|
|
|
(462
|
)
|
|
—
|
|
|
917
|
|
|||||
Proceeds from stock issuances under employee plans
|
405
|
|
|
4
|
|
|
17,686
|
|
|
—
|
|
|
—
|
|
|
17,690
|
|
|||||
Tax effect of exercise of stock options
|
—
|
|
|
—
|
|
|
3,578
|
|
|
—
|
|
|
—
|
|
|
3,578
|
|
|||||
Cash dividends declared ($2.20 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(140,336
|
)
|
|
—
|
|
|
(140,336
|
)
|
|||||
Repurchase and retirement of common shares
|
(2,908
|
)
|
|
(29
|
)
|
|
(26,548
|
)
|
|
(219,239
|
)
|
|
—
|
|
|
(245,816
|
)
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
212,948
|
|
|
—
|
|
|
212,948
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,345
|
)
|
|
(21,345
|
)
|
|||||
Balance, December 31, 2016
|
63,109
|
|
|
$
|
631
|
|
|
$
|
650,162
|
|
|
$
|
300,084
|
|
|
$
|
(83,837
|
)
|
|
$
|
867,040
|
|
POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
|||||||||||
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
212,948
|
|
|
$
|
455,361
|
|
|
$
|
454,029
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
167,512
|
|
|
152,138
|
|
|
127,507
|
|
|||
Noncash compensation
|
57,927
|
|
|
61,929
|
|
|
63,183
|
|
|||
Noncash income from financial services
|
(30,116
|
)
|
|
(29,405
|
)
|
|
(18,645
|
)
|
|||
Deferred income taxes
|
(26,056
|
)
|
|
(16,343
|
)
|
|
(50,388
|
)
|
|||
Excess tax benefits from share-based compensation
|
(3,578
|
)
|
|
(34,654
|
)
|
|
(36,966
|
)
|
|||
Other, net
|
13,462
|
|
|
6,802
|
|
|
6,124
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Trade receivables
|
2,030
|
|
|
48,798
|
|
|
(24,174
|
)
|
|||
Inventories
|
111,999
|
|
|
(148,725
|
)
|
|
(158,476
|
)
|
|||
Accounts payable
|
(62,693
|
)
|
|
(46,095
|
)
|
|
105,783
|
|
|||
Accrued expenses
|
145,261
|
|
|
9,182
|
|
|
30,664
|
|
|||
Income taxes payable/receivable
|
(1,997
|
)
|
|
(247
|
)
|
|
45,324
|
|
|||
Prepaid expenses and others, net
|
(14,916
|
)
|
|
(18,510
|
)
|
|
(14,695
|
)
|
|||
Net cash provided by operating activities
|
571,783
|
|
|
440,231
|
|
|
529,270
|
|
|||
Investing Activities:
|
|
|
|
|
|
||||||
Purchase of property and equipment
|
(209,137
|
)
|
|
(249,485
|
)
|
|
(205,079
|
)
|
|||
Investment in finance affiliate
|
(8,641
|
)
|
|
(23,087
|
)
|
|
(32,582
|
)
|
|||
Distributions from finance affiliate
|
43,820
|
|
|
42,527
|
|
|
31,337
|
|
|||
Investment in other affiliates
|
(11,595
|
)
|
|
(17,848
|
)
|
|
(12,445
|
)
|
|||
Acquisition of businesses, net of cash acquired
|
(723,705
|
)
|
|
(41,195
|
)
|
|
(28,013
|
)
|
|||
Net cash used for investing activities
|
(909,258
|
)
|
|
(289,088
|
)
|
|
(246,782
|
)
|
|||
Financing Activities:
|
|
|
|
|
|
||||||
Borrowings under debt arrangements / capital lease obligations
|
3,232,137
|
|
|
2,631,067
|
|
|
2,146,457
|
|
|||
Repayments under debt arrangements / capital lease obligations
|
(2,552,760
|
)
|
|
(2,385,480
|
)
|
|
(2,228,587
|
)
|
|||
Repurchase and retirement of common shares
|
(245,816
|
)
|
|
(293,616
|
)
|
|
(81,812
|
)
|
|||
Cash dividends to shareholders
|
(140,336
|
)
|
|
(139,285
|
)
|
|
(126,908
|
)
|
|||
Proceeds from stock issuances under employee plans
|
17,690
|
|
|
32,535
|
|
|
31,313
|
|
|||
Excess tax benefits from share-based compensation
|
3,578
|
|
|
34,654
|
|
|
36,966
|
|
|||
Net cash provided by (used for) financing activities
|
314,493
|
|
|
(120,125
|
)
|
|
(222,571
|
)
|
|||
Impact of currency exchange rates on cash balances
|
(5,042
|
)
|
|
(13,269
|
)
|
|
(14,565
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
(28,024
|
)
|
|
17,749
|
|
|
45,352
|
|
|||
Cash and cash equivalents at beginning of period
|
155,349
|
|
|
137,600
|
|
|
92,248
|
|
|||
Cash and cash equivalents at end of period
|
$
|
127,325
|
|
|
$
|
155,349
|
|
|
$
|
137,600
|
|
|
|
|
|
|
|
||||||
Noncash Activity:
|
|
|
|
|
|
||||||
Property and equipment obtained through capital leases and notes payable
|
—
|
|
|
$
|
14,500
|
|
|
$
|
24,908
|
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
||||||
Interest paid on debt borrowings
|
$
|
15,833
|
|
|
$
|
11,451
|
|
|
$
|
11,259
|
|
Income taxes paid
|
$
|
126,799
|
|
|
$
|
244,328
|
|
|
$
|
261,550
|
|
|
Fair Value Measurements as of December 31, 2016
|
|||||||||||||
Asset (Liability)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||
Non-qualified deferred compensation assets
|
$
|
49,330
|
|
|
$
|
49,330
|
|
|
—
|
|
|
—
|
|
|
Foreign exchange contracts, net
|
298
|
|
|
—
|
|
|
$
|
298
|
|
|
—
|
|
||
Total assets at fair value
|
$
|
49,628
|
|
|
$
|
49,330
|
|
|
$
|
298
|
|
|
—
|
|
Non-qualified deferred compensation liabilities
|
$
|
(49,330
|
)
|
|
$
|
(49,330
|
)
|
|
—
|
|
|
—
|
|
|
Total liabilities at fair value
|
$
|
(49,330
|
)
|
|
$
|
(49,330
|
)
|
|
$
|
—
|
|
|
—
|
|
|
Fair Value Measurements as of December 31, 2015
|
|||||||||||||
Asset (Liability)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||
Non-qualified deferred compensation assets
|
$
|
48,238
|
|
|
$
|
48,238
|
|
|
—
|
|
|
—
|
|
|
Foreign exchange contracts, net
|
2,767
|
|
|
—
|
|
|
$
|
2,767
|
|
|
—
|
|
||
Interest rate swap contracts
|
186
|
|
|
—
|
|
|
186
|
|
|
—
|
|
|||
Total assets at fair value
|
$
|
51,191
|
|
|
$
|
48,238
|
|
|
$
|
2,953
|
|
|
—
|
|
Commodity contracts, net
|
$
|
(354
|
)
|
|
—
|
|
|
$
|
(354
|
)
|
|
—
|
|
|
Non-qualified deferred compensation liabilities
|
(48,238
|
)
|
|
$
|
(48,238
|
)
|
|
—
|
|
|
—
|
|
||
Total liabilities at fair value
|
$
|
(48,592
|
)
|
|
$
|
(48,238
|
)
|
|
$
|
(354
|
)
|
|
—
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||
Raw materials and purchased components
|
$
|
141,566
|
|
|
$
|
167,569
|
|
Service parts, garments and accessories
|
316,383
|
|
|
189,731
|
|
||
Finished goods
|
333,760
|
|
|
388,970
|
|
||
Less: reserves
|
(45,175
|
)
|
|
(36,269
|
)
|
||
Inventories
|
$
|
746,534
|
|
|
$
|
710,001
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Balance at beginning of year
|
$
|
56,474
|
|
|
$
|
53,104
|
|
|
$
|
52,818
|
|
Additions to reserve through acquisitions
|
147
|
|
|
250
|
|
|
160
|
|
|||
Additions charged to expense
|
194,996
|
|
|
73,716
|
|
|
61,888
|
|
|||
Less: warranty claims paid
|
(132,343
|
)
|
|
(70,596
|
)
|
|
(61,762
|
)
|
|||
Balance at end of year
|
$
|
119,274
|
|
|
$
|
56,474
|
|
|
$
|
53,104
|
|
|
For the Years Ended December 31,
|
||||||||
|
2016
|
|
2015
|
|
2014
|
||||
Balance at beginning of year
|
—
|
|
|
—
|
|
|
—
|
|
|
Additions to deferred revenue through acquisitions
|
$
|
7,944
|
|
|
|
|
|
||
New contracts sold
|
20,569
|
|
|
—
|
|
|
—
|
|
|
Less: reductions for revenue recognized
|
(2,356
|
)
|
|
—
|
|
|
—
|
|
|
Balance at end of year
|
$
|
26,157
|
|
|
—
|
|
|
—
|
|
Cash and cash equivalents
|
$
|
3,017
|
|
Trade receivables
|
18,212
|
|
|
Inventory
|
144,912
|
|
|
Property, plant and equipment
|
32,814
|
|
|
Customer relationships
|
87,500
|
|
|
Trademarks / trade names
|
175,500
|
|
|
Goodwill
|
264,333
|
|
|
Other assets
|
18,434
|
|
|
Deferred revenue
|
(7,944
|
)
|
|
Other liabilities assumed
|
(64,913
|
)
|
|
Total fair value of net assets acquired
|
671,865
|
|
|
Less cash acquired
|
(3,017
|
)
|
|
Total consideration for acquisition, less cash acquired
|
$
|
668,848
|
|
|
For the Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
Net sales
|
$
|
5,161,688
|
|
|
$
|
5,389,173
|
|
Net income
|
240,400
|
|
|
431,991
|
|
||
Basic earnings per share
|
$
|
3.74
|
|
|
$
|
6.54
|
|
Diluted earnings per common share
|
$
|
3.69
|
|
|
$
|
6.40
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Option plan
|
$
|
23,876
|
|
|
$
|
26,191
|
|
|
$
|
24,428
|
|
Other share-based awards
|
23,368
|
|
|
23,275
|
|
|
26,574
|
|
|||
Total share-based compensation before tax
|
47,244
|
|
|
49,466
|
|
|
51,002
|
|
|||
Tax benefit
|
17,546
|
|
|
18,451
|
|
|
19,039
|
|
|||
Total share-based compensation expense included in net income
|
$
|
29,698
|
|
|
$
|
31,015
|
|
|
$
|
31,963
|
|
|
Omnibus Plan
(Active) |
|
Option Plan
(Frozen) |
||||||||||
|
Outstanding
Shares |
|
Weighted
Average Exercise Price |
|
Outstanding
Shares |
|
Weighted
Average Exercise Price |
||||||
Balance as of December 31, 2013
|
4,466,080
|
|
|
$
|
49.29
|
|
|
162,431
|
|
|
$
|
23.74
|
|
Granted
|
705,564
|
|
|
130.10
|
|
|
—
|
|
|
—
|
|
||
Exercised
|
(866,917
|
)
|
|
30.33
|
|
|
(96,398
|
)
|
|
23.77
|
|
||
Forfeited
|
(98,215
|
)
|
|
65.14
|
|
|
(2,800
|
)
|
|
22.43
|
|
||
Balance as of December 31, 2014
|
4,206,512
|
|
|
$
|
66.38
|
|
|
63,233
|
|
|
$
|
23.76
|
|
Granted
|
743,062
|
|
|
150.81
|
|
|
—
|
|
|
—
|
|
||
Exercised
|
(706,750
|
)
|
|
40.21
|
|
|
(44,283
|
)
|
|
23.92
|
|
||
Forfeited
|
(137,285
|
)
|
|
112.95
|
|
|
—
|
|
|
—
|
|
||
Balance as of December 31, 2015
|
4,105,539
|
|
|
$
|
84.61
|
|
|
18,950
|
|
|
$
|
23.37
|
|
Granted
|
1,326,430
|
|
|
78.72
|
|
|
—
|
|
|
—
|
|
||
Exercised
|
(348,206
|
)
|
|
40.51
|
|
|
(18,950
|
)
|
|
23.37
|
|
||
Forfeited
|
(366,702
|
)
|
|
108.90
|
|
|
—
|
|
|
—
|
|
||
Balance as of December 31, 2016
|
4,717,061
|
|
|
$
|
84.32
|
|
|
—
|
|
|
—
|
|
|
Vested or expected to vest as of December 31, 2016
|
4,717,061
|
|
|
$
|
84.32
|
|
|
—
|
|
|
—
|
|
|
Options exercisable as of December 31, 2016
|
2,199,084
|
|
|
$
|
62.60
|
|
|
—
|
|
|
—
|
|
|
For the Years Ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
Weighted-average volatility
|
32
|
%
|
|
32
|
%
|
|
40
|
%
|
Expected dividend yield
|
2.8
|
%
|
|
1.4
|
%
|
|
1.5
|
%
|
Expected term (in years)
|
4.5
|
|
|
4.5
|
|
|
4.5
|
|
Weighted average risk free interest rate
|
1.4
|
%
|
|
1.5
|
%
|
|
1.6
|
%
|
|
Shares
Outstanding |
|
Weighted
Average Grant Price |
|||
Balance as of December 31, 2015
|
1,130,767
|
|
|
$
|
122.08
|
|
Granted
|
909,161
|
|
|
77.53
|
|
|
Vested
|
(233,841
|
)
|
|
89.72
|
|
|
Canceled/Forfeited
|
(284,885
|
)
|
|
108.08
|
|
|
Balance as of December 31, 2016
|
1,521,202
|
|
|
$
|
103.05
|
|
Expected to vest as of December 31, 2016
|
955,106
|
|
|
$
|
101.57
|
|
|
Average interest rate at December 31, 2016
|
|
Maturity
|
|
December 31, 2016
|
|
December 31, 2015
|
||||
Revolving loan facility
|
1.66%
|
|
May 2021
|
|
$
|
172,142
|
|
|
$
|
225,707
|
|
Term loan facility
|
1.98%
|
|
May 2021
|
|
740,000
|
|
|
—
|
|
||
Senior notes—fixed rate
|
3.81%
|
|
May 2018
|
|
25,000
|
|
|
25,000
|
|
||
Senior notes—fixed rate
|
4.60%
|
|
May 2021
|
|
75,000
|
|
|
75,000
|
|
||
Senior notes—fixed rate
|
3.13%
|
|
December 2020
|
|
100,000
|
|
|
100,000
|
|
||
Capital lease obligations
|
5.06%
|
|
Various through 2029
|
|
19,306
|
|
|
21,874
|
|
||
Notes payable and other
|
3.40%
|
|
June 2027
|
|
13,618
|
|
|
15,698
|
|
||
Debt issuance costs
|
|
|
|
|
(3,156
|
)
|
|
(1,803
|
)
|
||
Total debt, capital lease obligations, and notes payable
|
|
|
|
|
$
|
1,141,910
|
|
|
$
|
461,476
|
|
Less: current maturities
|
|
|
|
|
3,847
|
|
|
5,059
|
|
||
Total long-term debt, capital lease obligations, and notes payable
|
|
|
|
|
$
|
1,138,063
|
|
|
$
|
456,417
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Total borrowings at December 31
|
$
|
1,112,142
|
|
|
$
|
425,707
|
|
|
$
|
200,000
|
|
Average outstanding borrowings during year
|
$
|
638,614
|
|
|
$
|
403,097
|
|
|
$
|
361,715
|
|
Maximum outstanding borrowings during year
|
$
|
1,234,337
|
|
|
$
|
523,097
|
|
|
$
|
500,000
|
|
Interest rate at December 31
|
2.25
|
%
|
|
2.33
|
%
|
|
3.77
|
%
|
|
2016
|
|
2015
|
||||
Goodwill
|
$
|
421,563
|
|
|
$
|
131,014
|
|
Other intangible assets, net
|
371,416
|
|
|
105,103
|
|
||
Total goodwill and other intangible assets, net
|
$
|
792,979
|
|
|
$
|
236,117
|
|
|
2016
|
|
2015
|
||||
Balance as of beginning of year
|
$
|
131,014
|
|
|
$
|
123,031
|
|
Goodwill from businesses acquired
|
293,390
|
|
|
17,010
|
|
||
Currency translation effect on foreign goodwill balances
|
(2,841
|
)
|
|
(9,027
|
)
|
||
Balance as of end of year
|
$
|
421,563
|
|
|
$
|
131,014
|
|
|
2016
|
|
2015
|
||||||||||||
|
Gross
Amount |
|
Accumulated
Amortization |
|
Gross
Amount |
|
Accumulated
Amortization |
||||||||
Other intangible assets, beginning
|
$
|
138,831
|
|
|
$
|
(33,728
|
)
|
|
$
|
124,093
|
|
|
$
|
(23,158
|
)
|
Intangible assets acquired during the period
|
284,000
|
|
|
—
|
|
|
20,779
|
|
|
—
|
|
||||
Amortization expense
|
—
|
|
|
(16,549
|
)
|
|
—
|
|
|
(12,136
|
)
|
||||
Currency translation effect on foreign balances
|
(2,285
|
)
|
|
1,147
|
|
|
(6,041
|
)
|
|
1,566
|
|
||||
Other intangible assets, ending
|
$
|
420,546
|
|
|
$
|
(49,130
|
)
|
|
$
|
138,831
|
|
|
$
|
(33,728
|
)
|
December 31, 2016
|
Estimated Life
(Years) |
|
Gross Carrying
Amount |
|
Accumulated
Amortization |
|
Net
|
||||||
Non-compete agreements
|
5
|
|
$
|
540
|
|
|
$
|
(485
|
)
|
|
$
|
55
|
|
Dealer/customer related
|
5-10
|
|
164,837
|
|
|
(35,907
|
)
|
|
128,930
|
|
|||
Developed technology
|
5-7
|
|
26,048
|
|
|
(12,738
|
)
|
|
13,310
|
|
|||
Total amortizable
|
|
|
191,425
|
|
|
(49,130
|
)
|
|
142,295
|
|
|||
Non-amortizable—brand/trade names
|
|
|
229,121
|
|
|
—
|
|
|
229,121
|
|
|||
Total other intangible assets, net
|
|
|
$
|
420,546
|
|
|
$
|
(49,130
|
)
|
|
$
|
371,416
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2015
|
Estimated Life
(Years) |
|
Gross Carrying
Amount |
|
Accumulated
Amortization |
|
Net
|
||||||
Non-compete agreements
|
5
|
|
$
|
540
|
|
|
$
|
(401
|
)
|
|
$
|
139
|
|
Dealer/customer related
|
7
|
|
67,079
|
|
|
(24,069
|
)
|
|
43,010
|
|
|||
Developed technology
|
5-7
|
|
19,261
|
|
|
(9,258
|
)
|
|
10,003
|
|
|||
Total amortizable
|
|
|
86,880
|
|
|
(33,728
|
)
|
|
53,152
|
|
|||
Non-amortizable—brand/trade names
|
|
|
51,951
|
|
|
—
|
|
|
51,951
|
|
|||
Total other intangible assets, net
|
|
|
$
|
138,831
|
|
|
$
|
(33,728
|
)
|
|
$
|
105,103
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
United States
|
$
|
262,403
|
|
|
$
|
640,604
|
|
|
$
|
666,323
|
|
Foreign
|
50,848
|
|
|
45,133
|
|
|
32,994
|
|
|||
Income from continuing operations before income taxes
|
$
|
313,251
|
|
|
$
|
685,737
|
|
|
$
|
699,317
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
103,717
|
|
|
$
|
211,017
|
|
|
$
|
255,299
|
|
State
|
4,780
|
|
|
16,609
|
|
|
20,438
|
|
|||
Foreign
|
17,367
|
|
|
20,733
|
|
|
21,584
|
|
|||
Deferred
|
(25,561
|
)
|
|
(17,983
|
)
|
|
(52,033
|
)
|
|||
Total provision for income taxes for continuing operations
|
$
|
100,303
|
|
|
$
|
230,376
|
|
|
$
|
245,288
|
|
|
For the Years Ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
Federal statutory rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State income taxes, net of federal benefit
|
1.4
|
|
|
1.5
|
|
|
1.5
|
|
Domestic manufacturing deduction
|
(2.1
|
)
|
|
(0.8
|
)
|
|
(1.1
|
)
|
Research and development tax credit
|
(4.3
|
)
|
|
(3.1
|
)
|
|
(1.1
|
)
|
Valuation allowance for foreign subsidiaries net operating losses
|
—
|
|
|
0.2
|
|
|
—
|
|
Non-deductible expenses
|
2.4
|
|
|
0.4
|
|
|
0.3
|
|
Other permanent differences
|
(0.4
|
)
|
|
0.4
|
|
|
0.5
|
|
Effective income tax rate for continuing operations
|
32.0
|
%
|
|
33.6
|
%
|
|
35.1
|
%
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Deferred income taxes:
|
|
|
|
||||
Inventories
|
$
|
13,252
|
|
|
$
|
10,047
|
|
Accrued expenses
|
152,798
|
|
|
107,767
|
|
||
Derivative instruments
|
(175
|
)
|
|
(1,112
|
)
|
||
Cost in excess of net assets of business acquired
|
(10,257
|
)
|
|
(7,956
|
)
|
||
Property and equipment
|
(56,240
|
)
|
|
(28,853
|
)
|
||
Compensation payable in common stock
|
73,297
|
|
|
67,222
|
|
||
Net operating loss carryforwards and impairments
|
13,650
|
|
|
12,374
|
|
||
Valuation allowance
|
(6,981
|
)
|
|
(6,684
|
)
|
||
Total net deferred income tax asset
|
$
|
179,344
|
|
|
$
|
152,805
|
|
|
For the Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
Balance at January 1,
|
$
|
22,509
|
|
|
$
|
9,836
|
|
Gross increases for tax positions of prior years
|
3,065
|
|
|
9,683
|
|
||
Gross increases for tax positions of current year
|
4,672
|
|
|
4,961
|
|
||
Decreases due to settlements and other prior year tax positions
|
(3,424
|
)
|
|
(178
|
)
|
||
Decreases for lapse of statute of limitations
|
(1,782
|
)
|
|
(1,364
|
)
|
||
Currency translation effect on foreign balances
|
(39
|
)
|
|
(429
|
)
|
||
Balance at December 31,
|
25,001
|
|
|
22,509
|
|
||
Reserves related to potential interest at December 31,
|
1,389
|
|
|
907
|
|
||
Unrecognized tax benefits at December 31,
|
$
|
26,390
|
|
|
$
|
23,416
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||||
Total number of shares repurchased and retired
|
|
2,908
|
|
|
2,179
|
|
|
554
|
|
|||
Total investment
|
|
$
|
245,816
|
|
|
$
|
293,616
|
|
|
$
|
81,812
|
|
|
|
For the Years Ended December 31,
|
||||||
|
|
2016
|
|
2015
|
||||
Quarterly dividend declared and paid per common share
|
|
$
|
0.55
|
|
|
$
|
0.53
|
|
Total dividends declared and paid per common share
|
|
$
|
2.20
|
|
|
$
|
2.12
|
|
|
For the Years Ended December 31,
|
|||||
|
2016
|
|
2015
|
|
2014
|
|
Weighted average number of common shares outstanding
|
64,033
|
|
65,719
|
|
65,904
|
|
Director Plan and deferred stock units
|
162
|
|
210
|
|
196
|
|
ESOP
|
101
|
|
91
|
|
75
|
|
Common shares outstanding—basic
|
64,296
|
|
66,020
|
|
66,175
|
|
Dilutive effect of restricted stock awards
|
150
|
|
255
|
|
359
|
|
Dilutive effect of stock option awards
|
712
|
|
1,209
|
|
1,695
|
|
Common and potential common shares outstanding—diluted
|
65,158
|
|
67,484
|
|
68,229
|
|
|
Foreign
Currency Items |
|
Cash Flow
Hedging Derivatives |
|
Accumulated Other
Comprehensive Loss |
||||||
Balance as of December 31, 2015
|
$
|
(64,360
|
)
|
|
$
|
1,868
|
|
|
$
|
(62,492
|
)
|
Reclassification to the income statement
|
—
|
|
|
4,643
|
|
|
4,643
|
|
|||
Change in fair value
|
(19,773
|
)
|
|
(6,215
|
)
|
|
(25,988
|
)
|
|||
Balance as of December 31, 2016
|
$
|
(84,133
|
)
|
|
$
|
296
|
|
|
$
|
(83,837
|
)
|
Derivatives in Cash
Flow Hedging Relationships
|
Location of Gain (Loss)
Reclassified from
Accumulated OCI
into Income
|
|
For the Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||||
Foreign currency contracts
|
Other expense, net
|
|
$
|
1,325
|
|
|
$
|
(8,399
|
)
|
Foreign currency contracts
|
Cost of sales
|
|
3,318
|
|
|
4,549
|
|
||
Total
|
|
|
$
|
4,643
|
|
|
$
|
(3,850
|
)
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Revenues
|
$
|
66,414
|
|
|
$
|
63,548
|
|
|
$
|
40,968
|
|
Interest and operating expenses
|
6,182
|
|
|
4,738
|
|
|
3,678
|
|
|||
Net income
|
$
|
60,232
|
|
|
$
|
58,810
|
|
|
$
|
37,290
|
|
|
As of December 31,
|
||||||
|
2016
|
|
2015
|
||||
Finance receivables, net
|
$
|
479,944
|
|
|
$
|
472,029
|
|
Other assets
|
200
|
|
|
124
|
|
||
Total Assets
|
$
|
480,144
|
|
|
$
|
472,153
|
|
Notes payable
|
$
|
288,275
|
|
|
$
|
269,881
|
|
Other liabilities
|
3,851
|
|
|
4,126
|
|
||
Partners’ capital
|
188,018
|
|
|
198,146
|
|
||
Total Liabilities and Partners’ Capital
|
$
|
480,144
|
|
|
$
|
472,153
|
|
|
Capital
Leases |
|
Operating
Leases |
||||
2017
|
$
|
2,852
|
|
|
$
|
30,924
|
|
2018
|
2,250
|
|
|
23,437
|
|
||
2019
|
2,080
|
|
|
20,147
|
|
||
2020
|
1,995
|
|
|
14,785
|
|
||
2021
|
1,925
|
|
|
10,225
|
|
||
Thereafter
|
14,938
|
|
|
13,111
|
|
||
Total future minimum lease obligation
|
$
|
26,040
|
|
|
$
|
112,629
|
|
Foreign Currency
|
|
Notional Amounts
(in U.S. dollars)
|
|
Net Unrealized Gain (Loss)
|
||||
Australian Dollar
|
|
$
|
22,498
|
|
|
$
|
771
|
|
Canadian Dollar
|
|
65,154
|
|
|
1,357
|
|
||
Japanese Yen
|
|
1,371
|
|
|
(57
|
)
|
||
Mexican Peso
|
|
17,942
|
|
|
(1,773
|
)
|
||
Total
|
|
$
|
106,965
|
|
|
$
|
298
|
|
|
Carrying Values of Derivative Instruments as of December 31, 2016
|
||||||||||
|
Fair Value—
Assets
|
|
Fair Value—
(Liabilities)
|
|
Derivative Net
Carrying Value
|
||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
||||||
Foreign exchange contracts(1)
|
$
|
2,128
|
|
|
$
|
(1,830
|
)
|
|
$
|
298
|
|
Total derivatives designated as hedging instruments
|
$
|
2,128
|
|
|
$
|
(1,830
|
)
|
|
$
|
298
|
|
Total derivatives
|
$
|
2,128
|
|
|
$
|
(1,830
|
)
|
|
$
|
298
|
|
|
Carrying Values of Derivative Instruments as of December 31, 2015
|
||||||||||
|
Fair Value—
Assets
|
|
Fair Value—
(Liabilities)
|
|
Derivative Net
Carrying Value
|
||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
||||||
Foreign exchange contracts(1)
|
$
|
5,218
|
|
|
$
|
(2,451
|
)
|
|
$
|
2,767
|
|
Interest rate swap contracts(1)
|
186
|
|
|
—
|
|
|
186
|
|
|||
Total derivatives designated as hedging instruments
|
$
|
5,404
|
|
|
$
|
(2,451
|
)
|
|
$
|
2,953
|
|
Commodity contracts(1)
|
—
|
|
|
$
|
(354
|
)
|
|
$
|
(354
|
)
|
|
Total derivatives not designated as hedging instruments
|
—
|
|
|
$
|
(354
|
)
|
|
$
|
(354
|
)
|
|
Total derivatives
|
$
|
5,404
|
|
|
$
|
(2,805
|
)
|
|
$
|
2,599
|
|
(1)
|
Assets are included in prepaid expenses and other and liabilities are included in other accrued expenses on the accompanying consolidated balance sheets.
|
|
For the Years Ended December 31,
|
||||||||||
($ in thousands)
|
2016
|
|
2015
|
|
2014
|
||||||
Sales
|
|
|
|
|
|
||||||
ORV/Snowmobiles
|
$
|
3,357,496
|
|
|
$
|
3,708,933
|
|
|
$
|
3,741,154
|
|
Motorcycles
|
708,497
|
|
|
698,257
|
|
|
418,546
|
|
|||
Global Adjacent Markets
|
341,937
|
|
|
312,100
|
|
|
319,948
|
|
|||
Other
|
108,699
|
|
|
—
|
|
|
—
|
|
|||
Total sales
|
4,516,629
|
|
|
4,719,290
|
|
|
4,479,648
|
|
|||
Gross profit
|
|
|
|
|
|
||||||
ORV/Snowmobiles
|
930,181
|
|
|
1,190,630
|
|
|
1,206,553
|
|
|||
Motorcycles
|
91,401
|
|
|
97,261
|
|
|
54,427
|
|
|||
Global Adjacent Markets
|
95,149
|
|
|
84,211
|
|
|
88,797
|
|
|||
Other
|
19,842
|
|
|
—
|
|
|
—
|
|
|||
Corporate
|
(30,950
|
)
|
|
(33,060
|
)
|
|
(30,599
|
)
|
|||
Total gross profit
|
$
|
1,105,623
|
|
|
$
|
1,339,042
|
|
|
$
|
1,319,178
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
United States
|
$
|
3,557,228
|
|
|
$
|
3,688,980
|
|
|
$
|
3,339,905
|
|
Canada
|
307,094
|
|
|
378,725
|
|
|
454,608
|
|
|||
Other foreign countries
|
652,307
|
|
|
651,585
|
|
|
685,135
|
|
|||
Consolidated sales
|
$
|
4,516,629
|
|
|
$
|
4,719,290
|
|
|
$
|
4,479,648
|
|
|
As of December 31,
|
||||||
|
2016
|
|
2015
|
||||
United States
|
$
|
637,632
|
|
|
$
|
548,410
|
|
Other foreign countries
|
89,964
|
|
|
102,268
|
|
||
Consolidated property and equipment, net
|
$
|
727,596
|
|
|
$
|
650,678
|
|
|
Sales
|
|
Gross profit
|
|
Net income
|
|
Diluted net income per share
|
||||||||
|
(In thousands, except per share data)
|
||||||||||||||
2016
|
|
|
|
|
|
|
|
||||||||
First Quarter
|
$
|
982,996
|
|
|
$
|
247,578
|
|
|
$
|
46,889
|
|
|
$
|
0.71
|
|
Second Quarter
|
1,130,777
|
|
|
284,503
|
|
|
71,166
|
|
|
1.09
|
|
||||
Third Quarter
|
1,185,067
|
|
|
260,770
|
|
|
32,312
|
|
|
0.50
|
|
||||
Fourth Quarter
|
1,217,789
|
|
|
312,772
|
|
|
62,581
|
|
|
0.97
|
|
||||
Totals
|
$
|
4,516,629
|
|
|
$
|
1,105,623
|
|
|
$
|
212,948
|
|
|
$
|
3.27
|
|
2015
|
|
|
|
|
|
|
|
||||||||
First Quarter
|
$
|
1,033,345
|
|
|
$
|
293,731
|
|
|
$
|
88,563
|
|
|
$
|
1.30
|
|
Second Quarter
|
1,124,327
|
|
|
319,414
|
|
|
100,943
|
|
|
1.49
|
|
||||
Third Quarter
|
1,456,000
|
|
|
415,623
|
|
|
155,173
|
|
|
2.30
|
|
||||
Fourth Quarter
|
1,105,618
|
|
|
310,274
|
|
|
110,682
|
|
|
1.66
|
|
||||
Totals
|
$
|
4,719,290
|
|
|
$
|
1,339,042
|
|
|
$
|
455,361
|
|
|
$
|
6.75
|
|
POLARIS INDUSTRIES INC.
|
||
By:
|
|
/
S
/ S
COTT
W. W
INE
|
|
|
Scott W. Wine
|
|
|
Chairman and Chief Executive Officer
|
Signature
|
Title
|
Date
|
|
|
|
|
|
/
S
/ S
COTT
W. W
INE
|
Chairman and Chief Executive Officer
(Principal Executive Officer)
|
February 16, 2017
|
|
Scott W. Wine
|
|
||
|
|
|
|
/
S
/ M
ICHAEL
T. S
PEETZEN
|
Executive Vice President — Finance and Chief Financial Officer (Principal Financial and Accounting Officer)
|
February 16, 2017
|
|
Michael T. Speetzen
|
|
||
|
|
|
|
*
|
Director
|
February 16, 2017
|
|
Annette K. Clayton
|
|
|
|
|
|
|
|
*
|
Director
|
February 16, 2017
|
|
Kevin M. Farr
|
|
|
|
|
|
|
|
*
|
Director
|
February 16, 2017
|
|
Gary E. Hendrickson
|
|
|
|
|
|
|
|
*
|
Director
|
February 16, 2017
|
|
Gwenne A. Henricks
|
|
|
|
|
|
|
|
*
|
Director
|
February 16, 2017
|
|
Bernd F. Kessler
|
|
|
|
|
|
|
|
*
|
Director
|
February 16, 2017
|
|
Lawrence D. Kingsley
|
|
|
|
|
|
|
|
*
|
Lead Director
|
February 16, 2017
|
|
John P. Wiehoff
|
|
|
|
|
|
|
|
*By:
|
/s/ S
COTT
W. W
INE
|
|
February 16, 2017
|
|
(Scott W. Wine Attorney-in-Fact)
|
|
|
*
|
Scott W. Wine, pursuant to Powers of Attorney executed by each of the officers and directors listed above whose name is marked by an “*” and filed as an exhibit hereto, by signing his name hereto does hereby sign and execute this report of Polaris Industries Inc. on behalf of each of such officers and directors in the capacities in which the names of each appear above.
|
Allowance for Doubtful Accounts
|
Balance at
Beginning of Period |
|
Additions
Charged to Costs and Expenses |
|
Additions
Through Acquisition |
|
Other Changes
Add (Deduct)(1) |
|
Balance at
End of Period |
||||||||||
(In thousands)
|
|
|
|
||||||||||||||||
2014: Deducted from asset accounts—Allowance for doubtful accounts receivable
|
$
|
5,895
|
|
|
$
|
2,347
|
|
|
$
|
265
|
|
|
$
|
(1,083
|
)
|
|
$
|
7,424
|
|
2015: Deducted from asset accounts—Allowance for doubtful accounts receivable
|
$
|
7,424
|
|
|
$
|
2,169
|
|
|
$
|
59
|
|
|
$
|
(1,008
|
)
|
|
$
|
8,644
|
|
2016: Deducted from asset accounts—Allowance for doubtful accounts receivable
|
$
|
8,644
|
|
|
$
|
7,085
|
|
|
$
|
4,644
|
|
|
$
|
(934
|
)
|
|
$
|
19,439
|
|
(1)
|
Uncollectible accounts receivable written off, net of recoveries.
|
Inventory Reserve
|
Balance at
Beginning of Period |
|
Additions
Charged to Costs and Expenses |
|
Additions
Through Acquisition |
|
Other Changes
Add (Deduct)(2) |
|
Balance at
End of Period |
||||||||||
(In thousands)
|
|
|
|
||||||||||||||||
2014: Deducted from asset accounts—Allowance for obsolete inventory
|
$
|
21,603
|
|
|
$
|
12,868
|
|
|
$
|
600
|
|
|
$
|
(8,900
|
)
|
|
$
|
26,171
|
|
2015: Deducted from asset accounts—Allowance for obsolete inventory
|
$
|
26,171
|
|
|
$
|
21,648
|
|
|
$
|
1,942
|
|
|
$
|
(13,492
|
)
|
|
$
|
36,269
|
|
2016: Deducted from asset accounts—Allowance for obsolete inventory
|
$
|
36,269
|
|
|
$
|
19,770
|
|
|
$
|
5,165
|
|
|
$
|
(16,029
|
)
|
|
$
|
45,175
|
|
(2)
|
Inventory disposals, net of recoveries.
|
POLARIS INDUSTRIES INC.
EXHIBIT INDEX TO ANNUAL REPORT ON
FORM 10-K
For Fiscal Year Ended December 31, 2016 (cont.)
|
|
.g
|
Form of Stock Option Agreement and Notice of Exercise Form for options (cliff vesting) granted to executive officers under the Polaris Industries Inc. 2007 Omnibus Incentive Plan, incorporated by reference to Exhibit 10.ff to the Company’s Current Report on Form 8-K filed February 4, 2008.*
|
|
|
.h
|
Form of Stock Option Agreement and Notice of Exercise Form for options (installment vesting) granted to executive officers under the Polaris Industries Inc. 2007 Omnibus Incentive Plan, incorporated by reference to Exhibit 10.t to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008.*
|
|
|
.i
|
Form of Nonqualified Stock Option Agreement (Single Trigger) made under the Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 28, 2011) , incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on May 3, 2011.*
|
|
|
.j
|
Form of Nonqualified Stock Option Agreement (Double Trigger) made under the Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 28, 2011) , incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on May 3, 2011.*
|
|
|
.k
|
Form of Restricted Stock Award Agreement made under the Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 28, 2011), incorporated by reference to Exhibit 10.6 to the Company’s Current Report on Form 8-K filed on May 3, 2011.*
|
|
|
.l
|
Form of Deferred Stock Award Agreement for shares of deferred stock granted to non-employee directors in 2007 under the Polaris Industries Inc. 2007 Omnibus Incentive Plan, incorporated by reference to Exhibit 10.t to the Company’s Annual Report on Form 10-K for the year ended December 31, 2007.*
|
|
|
.m
|
Form of the Deferred Stock Unit Award Agreement for units of deferred stock granted to non-employee directors under the Company’s Amended and Restated 2007 Omnibus Incentive Plan, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 3, 2016.*
|
|
|
.n
|
Form of Performance Restricted Stock Unit Award Agreement under the Polaris Industries Inc. 2007 Omnibus Incentive Plan, incorporated by reference to Exhibit 10.y to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.*
|
|
|
.o
|
Form of Nonqualified Stock Option Agreement entered into with Kenneth J. Pucel, incorporated by reference to Exhibit 10.gg to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 .*
|
|
|
.p
|
Form of Performance Restricted Stock Unit Award Agreement entered into with Kenneth J. Pucel, incorporated by reference to Exhibit 10.hh to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.*
|
|
|
.q
|
Form of Restricted Stock Unit Award Agreement made under the Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 30, 2015), incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K as filed July 13, 2015.*
|
|
|
.r
|
Form of Performance Restricted Stock Unit Award Agreement made under the Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 30, 2015) , incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K as filed July 13, 2015.*
|
|
|
.s
|
Form of Nonqualified Stock Option Award Agreement made under the Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 30, 2015) , incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K as filed July 13, 2015.*
|
|
|
.t
|
Employment Offer Letter dated July 28, 2008 by and between the Company and Scott W. Wine, incorporated by reference to Exhibit 10.a to the Company’s Current Report on Form 8-K filed August 4, 2008.*
|
|
|
.u
|
Employment Offer Letter dated April 27, 2016 by and between Steve Eastman and Polaris Industries Inc., incorporated by reference to Exhibit 10.b to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016.*
|
|
|
.v
|
Employment Offer Letter dated February 9, 2016 by and between the Company and Robert Mack.*
|
|
|
POLARIS INDUSTRIES INC.
EXHIBIT INDEX TO ANNUAL REPORT ON
FORM 10-K
For Fiscal Year Ended December 31, 2016 (cont.)
|
|
.w
|
Employment Offer Letter dated September 15, 2014 by and between the Company and Kenneth J. Pucel, incorporated by reference to Exhibit 10.w to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014..*
|
|
|
.x
|
Employment Offer Letter dated July 10, 2015 by and between the Company and Michael T. Speetzen, incorporated by reference to Exhibit 10.d to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015.*
|
|
|
.y
|
Severance, Proprietary Information and Noncompetition Agreement entered into with Scott W. Wine, incorporated by reference to Exhibit 10.b to the Company’s Current Report on Form 8-K filed August 4, 2008.*
|
|
|
.z
|
Severance Agreement dated February 6, 2012 entered into with Stephen L. Eastman incorporated by reference to Exhibit 10.dd to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.*
|
|
|
.aa
|
Severance Agreement entered into with Robert Mack.*
|
|
|
.bb
|
Severance Agreement entered into with Kenneth J. Pucel, incorporated by reference to Exhibit 10.ii to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.*
|
|
|
.cc
|
Severance Agreement dated July 31, 2015 entered into with Michael T. Speetzen, incorporated by reference to Exhibit 10.ff to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.*
|
|
|
.dd
|
Amended and Restated Joint Venture Agreement dated as of February 28, 2011, by and between the Company and GE Commercial Distribution Finance Corporation, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed March 1, 2011.
|
|
|
.ee
|
Amended and Restated Manufacturer’s Repurchase Agreement dated as of February 28, 2011, by and among the Company, Polaris Industries Inc., a Delaware Corporation, Polaris Sales Inc., and Polaris Acceptance, incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed March 1, 2011.
|
|
|
.ff
|
Third Amended and Restated Credit Agreement dated November 9, 2016 by and among Polaris Industries Inc., Polaris Sales Inc., any other Domestic Borrower (as defined therein) that thereafter becomes a party thereto, Polaris Sales Europe Sárl, any other Foreign Borrower (as defined therein) that hereafter becomes a party thereto, the Lenders named therein, U.S. Bank National Association, as Administrative Agent, Left Lead Arranger and Lead Book Runner, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Joint Lead Arrangers, Joint Book Runners and Syndication Agents, and Bank of the West, Fifth Third Bank, JP Morgan Chase Bank, N.A., PNC Bank, National Association and BMO Harris Bank N.A., as Documentation Agents, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed November 10, 2016.
|
|
|
.gg
|
First Amendment dated December 7, 2015 to the Amended and Restated Joint Venture Agreement dated as of February 28, 2011, by and between the Company and GE Commercial Distribution Finance LLC f/k/a GE Commercial Distribution Corporation, incorporated by reference to Exhibit 10.nn to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.
|
|
|
.hh
|
Second Amendment dated December 7, 2015 to the Second Amended and Restated Partnership Agreement, by and between Polaris Acceptance Inc. and CDF Joint Ventures, Inc. dated as of June 1, 2014, incorporated by reference to Exhibit 10.oo to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.
|
|
|
13
|
Portions of the Annual Report to Security Holders for the Year Ended December 31, 2016 included pursuant to Note 2 to General Instruction G.
|
|
|
21
|
Subsidiaries of Registrant.
|
|
|
23
|
Consent of Ernst & Young LLP.
|
|
|
24
|
Power of Attorney.
|
POLARIS INDUSTRIES INC.
EXHIBIT INDEX TO ANNUAL REPORT ON
FORM 10-K
For Fiscal Year Ended December 31, 2016 (cont.)
|
|
|
|
31.a
|
Certification of Chief Executive Officer required by Exchange Act Rule 13a-14(a).
|
|
|
31.b
|
Certification of Chief Financial Officer required by Exchange Act Rule 13a-14(a).
|
|
|
32.a
|
Certification furnished pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
32.b
|
Certification furnished pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
101
|
The following financial information from Polaris Industries Inc.’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on February 17, 2016, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets as of December 31, 2016 and 2015, (ii) the Consolidated Statements of Income for the years ended December 31, 2016, 2015 and 2014 (iii) the Consolidated Statements of Comprehensive Income for the years ended December 31, 2016, 2015 and 2014, (iv) the Consolidated Statements of Shareholders’ Equity for the years ended December 31, 2016, 2015 and 2014, (v) the Consolidated Statements of Cash Flows for the years ended December 31, 2016 and 2015, and (vi) Notes to Consolidated Financial Statements
|
|
|
1.
|
AMENDMENT TO NOTE AGREEMENT
|
2.
|
CONSENT TO TERMINATION OF PLEDGE AGREEMENTS; RELEASE OF PLEDGED COLLATERAL.
|
3.
|
COVENANT TO DELIVER EVIDENCE OF TERMINATION OF PLEDGE AGREEMENT AND INTERCREDITOR AGREEMENT AND RELEASE OF COLLATERAL
|
4.
|
REAFFIRMATION; AUTHORIZATION
|
Title:
|
Executive Vice President-Finance and Chief Financial Officer
|
Holder
|
Note
|
Amount
|
Metropolitan Life Insurance Company
|
AR-1
|
$2,000,000
|
Missouri Reinsurance (Barbados), Inc.
|
AR-2
|
$3,000,000
|
MetLife Reinsurance Company of Vermont
|
AR-3
|
$5,000,000
|
Voya Insurance and Annuity Company (f/k/a ING USA Annuity and Life Insurance Company)
|
AR-4
|
$5,100,000
|
Voya Retirement Insurance and Annuity Company (f/k/a ING Life Insurance and Annuity Company)
|
AR-5
|
$2,000,000
|
Reliastar Life Insurance Company
|
AR-6
|
$2,800,000
|
Reliastar Life Insurance Company of New York
|
AR-7
|
$100,000
|
The Travelers Indemnity Company
|
AR-8
|
$5,000,000
|
Total
|
|
$25,000,000
|
Holder
|
Note
|
Amount
|
Metropolitan Life Insurance Company
|
BR-1
|
$12,000,000
|
MetLife Investors USA Insurance Company
|
BR-2
|
$4,000,000
|
Voya Insurance and Annuity Company (f/k/a ING USA Annuity and Life Insurance Company)
|
BR-3
|
$8,200,000
|
Voya Retirement Insurance and Annuity Company (f/k/a ING Life Insurance and Annuity Company)
|
BR-4
|
$3,200,000
|
Reliastar Life Insurance Company
|
BR-5
|
$4,500,000
|
Reliastar Life Insurance Company of New York
|
BR-6
|
$100,000
|
The Prudential Insurance Company of America
|
BR-7
|
$2,300,000
|
Gibraltar Life Insurance Co., Ltd.
|
BR-8
|
$11,200,000
|
Pruco Life Insurance Company of New Jersey
|
BR-16
|
$5,000,000
|
MTL Insurance Company
|
BR-10
|
$3,000,000
|
BCBSM, Inc. dba Blue Cross and Blue Shield of Minnesota
|
BR-11
|
$1,500,000
|
Massachusetts Mutual Life Insurance Company
|
BR-12
|
$20,000,000
|
Total
|
|
$75,000,000
|
Holder
|
Note
|
Amount
|
Reliastar Life Insurance Company
|
AR-1
|
$4,400,000
|
Voya Insurance and Annuity Company (f/k/a ING USA Annuity and Life Insurance Company)
|
AR-2
|
$5,900,000
|
Voya Retirement Insurance and Annuity Company (f/k/a ING Life Insurance and Annuity Company)
|
AR-3
|
$9,600,000
|
Security Life of Denver Insurance Company
|
AR-4
|
$7,100,000
|
Voya Insurance and Annuity Company (f/k/a ING USA Annuity and Life Insurance Company)
|
AR-5
|
$500,000
|
Reliastar Life Insurance Company of New York
|
AR-6
|
$200,000
|
Security Life of Denver Insurance Company
|
AR-7
|
$200,000
|
Reliastar Life Insurance Company
|
AR-8
|
$100,000
|
The Northwestern Mutual Life Insurance Company
|
AR-9
|
$28,000,000
|
MetLife Alico Life Insurance K.K.
|
AR-10
|
$10,000,000
|
MetLife Alico Life Insurance K.K.
|
AR-11
|
$10,000,000
|
Allianz Global Risks US Insurance Company
|
AR-12
|
$5,000,000
|
Fireman’s Fund Insurance Company
|
AR-13
|
$5,000,000
|
American United Life Insurance Company
|
AR-14
|
$9,000,000
|
The Phoenix Insurance Company
|
AR-15
|
$5,000,000
|
Total
|
|
$100,000,000
|
|
POLARIS INDUSTRIES INC.
|
|
EMPLOYEE
|
By:
|
/s/ Stacy Bogart
|
|
/s/ Robert Mack
|
|
Stacy Bogart
|
|
Name: Robert Mack
|
|
VP, General Counsel
|
|
|
I.
|
Title and reporting relationship
|
II.
|
Date of Employment
|
III.
|
Base Salary
|
IV.
|
Cash Incentive Compensation
|
V.
|
Sign-on Bonus
|
VI.
|
Long Term Incentive Plan (LTIP)
|
VII.
|
Stock Options
|
VIII.
|
Restricted Stock Units
|
IX.
|
Special Grant of Restricted Stock Units
|
X.
|
Defined Benefit Replacement
|
XI.
|
Benefits & Perquisites
|
XII.
|
Severance Agreement
|
XIII.
|
Ownership Guidelines and Section 16 Reporting Obligations
|
Very truly yours,
|
/s/ Scott W. Wine
|
Scott Wine
|
Chairman & CEO
|
Accepted and Confirmed:
|
Date: 2/12/2016
|
/s/ Bob Mack
|
Bob Mack
|
|
2016
|
2015
|
||||||||||
Quarter
|
High
|
Low
|
High
|
Low
|
||||||||
First
|
|
$100.95
|
|
|
$67.80
|
|
|
$158.24
|
|
|
$134.54
|
|
Second
|
104.25
|
|
77.58
|
|
152.50
|
|
136.16
|
|
||||
Third
|
99.00
|
|
70.14
|
|
156.35
|
|
117.01
|
|
||||
Fourth
|
92.50
|
|
73.07
|
|
124.39
|
|
81.42
|
|
Quarter
|
2016
|
|
2015
|
|
||
First
|
|
$0.55
|
|
|
$0.53
|
|
Second
|
0.55
|
|
0.53
|
|
||
Third
|
0.55
|
|
0.53
|
|
||
Fourth
|
0.55
|
|
0.53
|
|
||
Total
|
|
$2.20
|
|
|
$2.12
|
|
August 1993
|
2 for 1
|
October 1995
|
3 for 2
|
March 2004
|
2 for 1
|
September 2011
|
2 for 1
|
Name of Subsidiary
|
|
State or Other Jurisdiction of Incorporation or Organization
|
A.M. Holding S.A.S.
|
|
France
|
Aixam Immobilier S.A.S.
|
|
France
|
Aixam Lusitana Sociedad De Comercializacae de Automoveis, S.A.
|
|
Portugal
|
Aixam Mega S.A.S.
|
|
France
|
Aixam Production S.A.S.
|
|
France
|
Aixam Mega Engineering S.A.S.
|
|
France
|
AIXAM Mega GmbH
|
|
Austria
|
Aixam Mega Italia S.R.L.
|
|
Italy
|
Aixam Mega Ltd.
|
|
United Kingdom
|
Aixam Mega Nederland BV
|
|
Netherlands
|
Aixam-Mega Iberica, S.L.
|
|
Spain
|
BAIC TAP Off-Road Vehicle Technology Company Limited (25%)
|
|
China
|
Carmax SAS
|
|
France
|
Carmetal SAS
|
|
France
|
Compagnie Industrielle du Vencors SAS
|
|
France
|
Eicher Polaris Private Ltd. (50%)
|
|
India
|
FAM SAS
|
|
France
|
Goupil Industrie S.A.
|
|
France
|
HH Investment Limited
|
|
Hong Kong
|
Indian Motorcycle Company
|
|
Delaware
|
Indian Motorcycle International, LLC
|
|
Delaware
|
Indian Motorcycle USA, LLC
|
|
Delaware
|
KLIM Europe ApS
|
|
Denmark
|
KLIM Europe Sarl
|
|
Switzerland
|
Kolpin Outdoors, Inc.
|
|
Wisconsin
|
Mega Production S.A.
|
|
France
|
North Pole Star, LLC
|
|
Mexico
|
North 54 Insurance Company
|
|
Hawaii
|
Polaris Acceptance (50%)
|
|
Illinois
|
Polaris Acceptance Inc.
|
|
Minnesota
|
Polaris Britain Limited
|
|
United Kingdom
|
Polaris Canada Holdco LP
|
|
Canada
|
Polaris Direct Inc.
|
|
Minnesota
|
Polaris EMEA Support Center Sp. z.o.o.
|
|
Poland
|
Polaris Experience, LLC
|
|
Minnesota
|
Polaris Finance Co Sarl
|
|
Luxembourg
|
Polaris France Holdco SNC
|
|
France
|
Polaris France S.A.S.
|
|
France
|
Polaris Germany GmbH
|
|
Germany
|
Polaris India Private Ltd.
|
|
India
|
Polaris Industries Holdco LP
|
|
Cayman Islands
|
Polaris Industries Inc.
|
|
Delaware
|
Polaris Industries LLC
|
|
Delaware
|
Polaris Industries Ltd.
|
|
Manitoba, Canada
|
Polaris Limited China
|
|
China
|
Polaris Luxembourg I Sarl
|
|
Luxembourg
|
Polaris Luxembourg II Sarl
|
|
Luxembourg
|
Polaris Norway AS
|
|
Norway
|
Polaris of Brazil Import and Trade of Vehicles and Motorcycles LLC
|
|
Brazil
|
Polaris Poland Sp. z o.o
|
|
Poland
|
Polaris Sales Australia Pty Ltd.
|
|
Australia
|
Polaris Sales Europe Inc.
|
|
Minnesota
|
Polaris Sales Europe Sarl
|
|
Switzerland
|
Polaris Sales Inc.
|
|
Minnesota
|
Polaris Sales Mexico, S. de R.L. de C.V.
|
|
Mexico
|
Polaris Sales Spain, S.L.
|
|
Spain
|
Polaris Scandinavia AB
|
|
Sweden
|
Primordial, Inc.
|
|
Delaware
|
Resilient Technologies LLC
|
|
Wisconsin
|
SCI GEB
|
|
France
|
Shanghai Yi Zing Power Technology Co. Ltd.
|
|
China
|
swissauto powersport LLC
|
|
Switzerland
|
TAP Automotive Holdings, LLC
|
|
Delaware
|
TAP Automotive Holdings Canada, Inc.
|
|
Canada
|
TAP Manufacturing, LLC
|
|
Delaware
|
TAP Off Road Investment Company, Ltd.
|
|
Hong Kong
|
TAP Worldwide, LLC
|
|
Delaware
|
Taylor-Dunn Manufacturing Company
|
|
California
|
Teton Outfitters, LLC
|
|
Idaho
|
Trail Tech, Inc.
|
|
Washington
|
Transamerican (NINGBO) Automotive Technology Co. Ltd.
|
|
China
|
Victory Motorcycles Australia Pty Ltd
|
|
Australia
|
|
|
|
|
|
|
POLARIS INDUSTRIES INC.
|
|
|
|
By
|
/s/ Scott W. Wine
|
|
Scott W. Wine
Chairman and Chief Executive Officer
|
|
|
|
/s/ Annette K. Clayton
|
|
/s/ Bernd F. Kessler
|
Annette K. Clayton
|
|
Bernd F. Kessler
|
|
|
|
/s/ Kevin M. Farr
|
|
/s/ Lawrence D. Kingsley
|
Kevin M. Farr
|
|
Lawrence D. Kingsley
|
|
|
|
/s/ Gary E. Hendrickson
|
|
/s/ John P. Wiehoff
|
Gary E. Hendrickson
|
|
John P. Wiehoff
|
|
|
|
/s/ Gwenne A. Henricks
|
|
/s/ Scott W. Wine
|
Gwenne A. Henricks
|
|
Scott W. Wine
|
|
|
|
1.
|
I have reviewed this annual report on Form 10-K of Polaris Industries Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/
S
/ S
COTT
W. W
INE
|
Scott W. Wine
|
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of Polaris Industries Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud
,
whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/
S
/ M
ICHAEL
T. S
PEETZEN
|
Michael T. Speetzen
|
Executive Vice President — Finance and
|
Chief Financial Officer
|
1.
|
This statement is provided pursuant to 18 U.S.C. § 1350 in connection with the Company’s Annual Report on Form 10-K for the period ended
December 31, 2016
(the “Periodic Report”);
|
2.
|
The Periodic Report fully complies with the requirements of Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended; and
|
3.
|
The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods indicated therein.
|
/
S
/ S
COTT
W. W
INE
|
Scott W. Wine
|
Chairman and Chief Executive Officer
|
1.
|
This statement is provided pursuant to 18 U.S.C. § 1350 in connection with the Company’s Annual Report on Form 10-K for the period ended
December 31, 2016
(the “Periodic Report”);
|
2.
|
The Periodic Report fully complies with the requirements of Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended; and
|
3.
|
The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods indicated therein.
|
/
S
/ M
ICHAEL
T. S
PEETZEN
|
Michael T. Speetzen
|
Executive Vice President — Finance and Chief Financial Officer
|