Manufacturing Realignment

12 Months Ended

Dec. 31, 2012

Manufacturing Realignment

Note 12. Manufacturing Realignment

In May 2010, the Company announced that it was realigning its manufacturing with the intent to consolidate operations into its existing operations in Roseau, Minnesota and Spirit Lake, Iowa as well as establish a new facility in Monterrey, Mexico. As part of the realignment, the Company sold a portion of the Osceola, Wisconsin facility and outsourced certain components previously manufactured by Polaris at Osceola. The Company has since been recording transition charges, including both exit costs and startup costs, and completed the realignment in the second quarter of 2012. The cumulative exit costs pertaining to the manufacturing realignment totaled $6,937,000. The exit costs are classified within Cost of sales in the consolidated statements of income.

Utilization of components of the accrued exit costs during the year ended December 31, 2012, 2011, and 2010 was as follows (in thousands):

2012	Balance December 31, 2011		Amount provided for During 2012		Amount Paid During 2012			Balance December 31, 2012
Termination benefits	$	2,234	$	125	$	(2,359	)	$	—
Other associated costs		—		—		—			—
Total Exit Costs	$	2,234	$	125	$	(2,359	)	$	—

2011	Balance December 31, 2010		Amount provided for During 2011		Amount Paid During 2011			Balance December 31, 2011
Termination benefits	$	4,843	$	980	$	(3,589	)	$	2,234
Other associated costs		619		368		(987	)		—
Total Exit Costs	$	5,462	$	1,348	$	(4,576	)	$	2,234

2010	Balance December 31, 2009		Amount provided for During 2010		Amount Paid During 2010			Balance December 31, 2010
Termination benefits		—	$	4,843		—		$	4,843
Other associated costs		—		621	$	(2	)		619
Total Exit Costs	$	—	$	5,464	$	(2	)	$	5,462