(Mark one) | ||
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Minnesota | 41-1790959 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
2100 Highway 55, Medina MN | 55340 | |
(Address of principal executive offices) | (Zip Code) | |
(763) 542-0500 (Registrant’s telephone number, including area code) |
Large accelerated filer | x | Accelerated filer | ¨ |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
POLARIS INDUSTRIES INC. FORM 10-Q For Quarterly Period Ended June 30, 2013 | |||
Page | |||
POLARIS INDUSTRIES INC. CONSOLIDATED BALANCE SHEETS (In thousands) | |||||||
June 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 217,674 | $ | 417,015 | |||
Trade receivables, net | 148,725 | 119,769 | |||||
Inventories, net | 428,634 | 344,996 | |||||
Prepaid expenses and other | 47,169 | 34,039 | |||||
Income taxes receivable | 13,520 | 15,730 | |||||
Deferred tax assets | 84,215 | 86,292 | |||||
Total current assets | 939,937 | 1,017,841 | |||||
Property and equipment, net | 342,713 | 253,369 | |||||
Investment in finance affiliate | 55,346 | 56,988 | |||||
Investment in other affiliates | 17,901 | 12,817 | |||||
Deferred tax assets | 4,686 | 22,389 | |||||
Goodwill and other intangible assets, net | 223,537 | 107,216 | |||||
Other long-term assets | 26,282 | 15,872 | |||||
Total assets | $ | 1,610,402 | $ | 1,486,492 | |||
Liabilities and Shareholders' Equity | |||||||
Current liabilities: | |||||||
Current portion of capital lease obligations | $ | 3,297 | $ | 2,887 | |||
Accounts payable | 236,347 | 169,036 | |||||
Accrued expenses: | |||||||
Compensation | 85,206 | 139,140 | |||||
Warranties | 42,717 | 47,723 | |||||
Sales promotions and incentives | 98,006 | 107,008 | |||||
Dealer holdback | 84,570 | 86,733 | |||||
Other | 72,487 | 73,529 | |||||
Income taxes payable | 16,539 | 4,973 | |||||
Total current liabilities | 639,169 | 631,029 | |||||
Long-term income taxes payable | 8,279 | 7,063 | |||||
Capital lease obligations | 4,304 | 4,292 | |||||
Long-term debt | 100,000 | 100,000 | |||||
Other long-term liabilities | 51,187 | 53,578 | |||||
Total liabilities | $ | 802,939 | $ | 795,962 | |||
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, 68,853 and 68,647 shares issued and outstanding, respectively | $ | 689 | $ | 686 | |||
Additional paid-in capital | 321,182 | 268,515 | |||||
Retained earnings | 476,661 | 409,091 | |||||
Accumulated other comprehensive income, net | 8,931 | 12,238 | |||||
Total shareholders’ equity | 807,463 | 690,530 | |||||
Total liabilities and shareholders’ equity | $ | 1,610,402 | $ | 1,486,492 |
POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Sales | $ | 844,800 | $ | 755,446 | $ | 1,590,709 | $ | 1,429,196 | |||||||
Cost of sales | 592,462 | 538,697 | 1,121,723 | 1,017,484 | |||||||||||
Gross profit | 252,338 | 216,749 | 468,986 | 411,712 | |||||||||||
Operating expenses: | |||||||||||||||
Selling and marketing | 62,238 | 50,555 | 116,731 | 95,688 | |||||||||||
Research and development | 34,604 | 31,216 | 66,054 | 61,682 | |||||||||||
General and administrative | 41,444 | 32,759 | 80,254 | 67,759 | |||||||||||
Total operating expenses | 138,286 | 114,530 | 263,039 | 225,129 | |||||||||||
Income from financial services | 11,502 | 8,215 | 21,576 | 15,398 | |||||||||||
Operating income | 125,554 | 110,434 | 227,523 | 201,981 | |||||||||||
Non-operating expense (income): | |||||||||||||||
Interest expense | 1,371 | 1,466 | 2,844 | 2,978 | |||||||||||
Equity in loss of other affiliates | 586 | — | 998 | — | |||||||||||
Other (income) expense, net | (1,230 | ) | 210 | (3,698 | ) | (2,367 | ) | ||||||||
Income before income taxes | 124,827 | 108,758 | 227,379 | 201,370 | |||||||||||
Provision for income taxes | 44,823 | 38,935 | 71,911 | 71,469 | |||||||||||
Net income | $ | 80,004 | $ | 69,823 | $ | 155,468 | $ | 129,901 | |||||||
Basic net income per share | $ | 1.16 | $ | 1.01 | $ | 2.26 | $ | 1.89 | |||||||
Diluted net income per share | $ | 1.13 | $ | 0.98 | $ | 2.20 | $ | 1.83 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 68,867 | 68,954 | 68,830 | 68,795 | |||||||||||
Diluted | 70,755 | 71,161 | 70,759 | 70,993 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $ | 80,004 | $ | 69,823 | $ | 155,468 | $ | 129,901 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Foreign currency translation adjustments, net of tax benefit of $169 and $221 in 2013 and $295 and $130 in 2012 | (4,688 | ) | (5,734 | ) | (6,327 | ) | (2,070 | ) | |||||||
Unrealized gain (loss) on derivative instruments, net of tax (expense) benefit of ($1,137) and ($1,796) in 2013 and ($778) and $1,070 in 2012 | 1,913 | 1,775 | 3,020 | (1,646 | ) | ||||||||||
Comprehensive income | $ | 77,229 | $ | 65,864 | $ | 152,161 | $ | 126,185 |
POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||
Six months ended June 30, | |||||||
2013 | 2012 | ||||||
Operating Activities: | |||||||
Net income | $ | 155,468 | $ | 129,901 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 39,279 | 32,677 | |||||
Noncash compensation | 34,043 | 18,338 | |||||
Noncash income from financial services | (2,384 | ) | (1,599 | ) | |||
Noncash loss from other affiliates | 998 | — | |||||
Deferred income taxes | (6,356 | ) | (3,228 | ) | |||
Tax effect of share-based compensation exercises | (9,868 | ) | (10,450 | ) | |||
Changes in operating assets and liabilities: | |||||||
Trade receivables | (18,297 | ) | (20,014 | ) | |||
Inventories | (65,761 | ) | (60,668 | ) | |||
Accounts payable | 51,212 | 45,622 | |||||
Accrued expenses | (84,105 | ) | (69,436 | ) | |||
Income taxes payable/receivable | 20,358 | 27,797 | |||||
Prepaid expenses and others, net | (11,073 | ) | (10,567 | ) | |||
Net cash provided by operating activities | 103,514 | 78,373 | |||||
Investing Activities: | |||||||
Purchase of property and equipment | (93,720 | ) | (41,591 | ) | |||
Investment in finance affiliate, net | 4,026 | 2,158 | |||||
Investment in other affiliates | (6,063 | ) | — | ||||
Acquisition of businesses, net of cash acquired | (134,817 | ) | (383 | ) | |||
Net cash used for investing activities | (230,574 | ) | (39,816 | ) | |||
Financing Activities: | |||||||
Borrowings under capital lease obligations | 1,432 | 1,968 | |||||
Repayments under capital lease obligations | (1,873 | ) | (1,422 | ) | |||
Repurchase and retirement of common shares | (31,869 | ) | (48,634 | ) | |||
Cash dividends to shareholders | (57,487 | ) | (50,749 | ) | |||
Tax effect of proceeds from share-based compensation exercises | 9,868 | 10,450 | |||||
Proceeds from stock issuances under employee plans | 10,219 | 14,690 | |||||
Net cash used for financing activities | (69,710 | ) | (73,697 | ) | |||
Impact of currency exchange rates on cash balances | (2,571 | ) | (902 | ) | |||
Net decrease in cash and cash equivalents | (199,341 | ) | (36,042 | ) | |||
Cash and cash equivalents at beginning of period | 417,015 | 325,336 | |||||
Cash and cash equivalents at end of period | $ | 217,674 | $ | 289,294 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Balance at beginning of period | $ | 40,941 | $ | 40,430 | $ | 47,723 | $ | 44,355 | |||||||
Additions to warranty reserve through acquisitions | 1,602 | — | 1,602 | — | |||||||||||
Additions charged to expense | 13,154 | 8,647 | 21,990 | 17,039 | |||||||||||
Warranty claims paid | (12,980 | ) | (10,392 | ) | (28,598 | ) | (22,709 | ) | |||||||
Balance at end of period | $ | 42,717 | $ | 38,685 | $ | 42,717 | $ | 38,685 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Option plan | $ | 5,853 | $ | 4,256 | $ | 10,977 | $ | 8,357 | |||||||
Other share-based awards | 7,973 | 8,370 | 18,105 | 27,296 | |||||||||||
Total share-based compensation before tax | 13,826 | 12,626 | 29,082 | 35,653 | |||||||||||
Tax benefit | 5,168 | 4,746 | 10,866 | 13,353 | |||||||||||
Total share-based compensation expense included in net income | $ | 8,658 | $ | 7,880 | $ | 18,216 | $ | 22,300 |
June 30, 2013 | December 31, 2012 | ||||||
Raw materials and purchased components | $ | 91,417 | $ | 70,552 | |||
Service parts, garments and accessories | 103,231 | 95,110 | |||||
Finished goods | 255,698 | 196,691 | |||||
Less: reserves | (21,712 | ) | (17,357 | ) | |||
Inventories | $ | 428,634 | $ | 344,996 |
June 30, 2013 | December 31, 2012 | ||||||
Investment in Brammo | $ | 14,500 | $ | 12,000 | |||
Investment in EPPL | 3,401 | 817 | |||||
Total investment in other affiliates | $ | 17,901 | $ | 12,817 |
Six months ended June 30, 2013 | |||
Balance as of beginning of period | $ | 56,324 | |
Goodwill acquired during the period | 65,004 | ||
Currency translation effect on foreign goodwill balances | (458 | ) | |
Balance as of end of period | $ | 120,870 |
Six months ended June 30, 2013 | |||||||
Gross Amount | Accumulated Amortization | ||||||
Other intangible assets, beginning | $ | 54,907 | $ | (4,015 | ) | ||
Intangible assets acquired during the period | 55,327 | — | |||||
Amortization expense | — | (3,652 | ) | ||||
Foreign currency translation effect on balances | 48 | 52 | |||||
Other intangible assets, ending | $ | 110,282 | $ | (7,615 | ) |
Total estimated life (years) | June 30, 2013 | December 31, 2012 | |||||
Non-amortizable - indefinite lived: | |||||||
Brand names | 40,357 | 26,691 | |||||
Amortized: | |||||||
Non-compete agreements | 5 | 540 | 540 | ||||
Dealer/customer related | 7 | 56,562 | 14,702 | ||||
Developed technology | 5-7 | 12,823 | 12,974 | ||||
Total amortizable | 69,925 | 28,216 | |||||
Less: Accumulated amortization | (7,615 | ) | (4,015 | ) | |||
Net amortized other intangible assets | 62,310 | 24,201 | |||||
Total other intangible assets, net | 102,667 | 50,892 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cash dividends declared and paid per common share | $ | 0.42 | $ | 0.37 | $ | 0.84 | $ | 0.74 |
Three months ended June 30, | Six months ended June 30, | ||||||||
2013 | 2012 | 2013 | 2012 | ||||||
Weighted average number of common shares outstanding | 68,536 | 68,507 | 68,445 | 68,342 | |||||
Director Plan and deferred stock units | 233 | 338 | 287 | 348 | |||||
ESOP | 98 | 109 | 98 | 105 | |||||
Common shares outstanding—basic | 68,867 | 68,954 | 68,830 | 68,795 | |||||
Dilutive effect of Option Plans and Omnibus Plan | 1,888 | 2,207 | 1,929 | 2,198 | |||||
Common and potential common shares outstanding—diluted | 70,755 | 71,161 | 70,759 | 70,993 |
Foreign Currency Items | Cash Flow Hedging Derivatives | Accumulated Other Comprehensive Income | |||||||||
Balance as of December 31, 2012 | $ | 13,669 | $ | (1,431 | ) | $ | 12,238 | ||||
Reclassification to the income statement | — | (358 | ) | (358 | ) | ||||||
Change in fair value | (6,327 | ) | 3,378 | (2,949 | ) | ||||||
Balance as of June 30, 2013 | $ | 7,342 | $ | 1,589 | $ | 8,931 |
Derivatives in Cash Flow Hedging Relationships | Location of Gain (Loss) Reclassified from Accumulated OCI into Income | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Foreign currency contracts | Other income, net | $ | (891 | ) | $ | (1,609 | ) | $ | (1,111 | ) | $ | (3,616 | ) | ||||
Foreign currency contracts | Cost of sales | 537 | 7 | 753 | 113 | ||||||||||||
Total | $ | (354 | ) | $ | (1,602 | ) | $ | (358 | ) | $ | (3,503 | ) |
Foreign Currency | Notional Amounts (in US Dollars) | Net Unrealized Gain (Loss) | ||||||
Australian Dollar | $ | 7,531 | $ | 809 | ||||
Canadian Dollar | 67,570 | 1,845 | ||||||
Japanese Yen | 26,925 | (1,002 | ) | |||||
Mexican Peso | 8,999 | 120 | ||||||
Norwegian Kroner | 4,848 | 227 | ||||||
Swedish Krona | 8,103 | 220 | ||||||
Total | $ | 123,976 | $ | 2,219 |
Carrying Values of Derivative Instruments as of June 30, 2013 | |||||||||||
Fair Value— Assets | Fair Value— (Liabilities) | Derivative Net Carrying Value | |||||||||
Derivatives designated as hedging instruments | |||||||||||
Foreign exchange contracts(1) | $ | 4,197 | $ | (1,978 | ) | $ | 2,219 | ||||
Total derivatives designated as hedging instruments | $ | 4,197 | $ | (1,978 | ) | $ | 2,219 | ||||
Commodity contracts(1) | $ | 35 | $ | (290 | ) | $ | (255 | ) | |||
Total derivatives not designated as hedging instruments | $ | 35 | $ | (290 | ) | $ | (255 | ) | |||
Total derivatives | $ | 4,232 | $ | (2,268 | ) | $ | 1,964 |
Carrying Values of Derivative Instruments as of December 31, 2012 | |||||||||||
Fair Value— Assets | Fair Value— (Liabilities) | Derivative Net Carrying Value | |||||||||
Derivatives designated as hedging instruments | |||||||||||
Foreign exchange contracts(1) | $ | 1,122 | $ | (3,739 | ) | $ | (2,617 | ) | |||
Total derivatives designated as hedging instruments | $ | 1,122 | $ | (3,739 | ) | $ | (2,617 | ) | |||
Commodity contracts(1) | $ | 114 | $ | (238 | ) | $ | (124 | ) | |||
Total derivatives not designated as hedging instruments | $ | 114 | $ | (238 | ) | $ | (124 | ) | |||
Total derivatives | $ | 1,236 | $ | (3,977 | ) | $ | (2,741 | ) |
(1) | Assets are included in prepaid expenses and other and liabilities are included in other accrued expenses on the accompanying consolidated balance sheets. |
Derivatives in Cash Flow Hedging Relationships | Three months ended June 30, | Six months ended June 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest rate contracts | $ | (6 | ) | $ | (6 | ) | $ | (12 | ) | $ | (12 | ) | |||
Foreign currency contracts | 1,919 | 1,781 | 3,032 | (1,634 | ) | ||||||||||
Total | $ | 1,913 | $ | 1,775 | $ | 3,020 | $ | (1,646 | ) |
Fair Value Measurements as of June 30, 2013 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Foreign exchange contracts, net | $ | 2,219 | — | $ | 2,219 | — | ||||||||
Non-qualified deferred compensation assets | 21,944 | $ | 21,944 | — | — | |||||||||
Total assets at fair value | $ | 24,163 | $ | 21,944 | $ | 2,219 | — | |||||||
Commodity contracts, net | $ | (255 | ) | — | $ | (255 | ) | — | ||||||
Non-qualified deferred compensation liabilities | (21,944 | ) | $ | (21,944 | ) | — | — | |||||||
Total liabilities at fair value | $ | (22,199 | ) | $ | (21,944 | ) | $ | (255 | ) | — | ||||
Fair Value Measurements as of December 31, 2012 | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Non-qualified deferred compensation assets | $ | 15,872 | $ | 15,872 | — | — | ||||||||
Total assets at fair value | $ | 15,872 | $ | 15,872 | — | — | ||||||||
Foreign exchange contracts, net | $ | (2,617 | ) | — | $ | (2,617 | ) | — | ||||||
Commodity contracts, net | (124 | ) | — | (124 | ) | — | ||||||||
Non-qualified deferred compensation liabilities | (15,872 | ) | $ | (15,872 | ) | — | — | |||||||
Total liabilities at fair value | $ | (18,613 | ) | $ | (15,872 | ) | $ | (2,741 | ) | — |
Percent change in total Company sales compared to corresponding period of the prior year | |||||
Three months ended | Six months ended | ||||
June 30, 2013 | June 30, 2013 | ||||
Volume | 6 | % | 6 | % | |
Product mix and price | 6 | 5 | |||
Currency | — | — | |||
12 | % | 11 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||
($ in millions) | 2013 | Percent of Total Sales | 2012 | Percent of Total Sales | Percent Change 2013 vs. 2012 | 2013 | Percent of Total Sales | 2012 | Percent of Total Sales | Percent Change 2013 vs. 2012 | |||||||||||||||||||||||
Off-Road Vehicles | $ | 619.2 | 73 | % | $ | 581.1 | 77 | % | 7 | % | $ | 1,160.5 | 73 | % | $ | 1,085.7 | 76 | % | 7 | % | |||||||||||||
Snowmobiles | 8.5 | 1 | % | 8.9 | 1 | % | (5 | )% | 23.2 | 1 | % | 13.5 | 1 | % | 71 | % | |||||||||||||||||
Motorcycles | 49.9 | 6 | % | 53.1 | 7 | % | (6 | )% | 101.7 | 6 | % | 108.0 | 8 | % | (6 | )% | |||||||||||||||||
Small Vehicles | 33.7 | 4 | % | 11.6 | 2 | % | 190 | % | 44.8 | 3 | % | 21.4 | 1 | % | 109 | % | |||||||||||||||||
PG&A | 133.5 | 16 | % | 100.7 | 13 | % | 33 | % | 260.5 | 17 | % | 200.6 | 14 | % | 30 | % | |||||||||||||||||
Total Sales | $ | 844.8 | 100 | % | $ | 755.4 | 100 | % | 12 | % | $ | 1,590.7 | 100 | % | $ | 1,429.2 | 100 | % | 11 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||
($ in millions) | 2013 | Percent of Total Sales | 2012 | Percent of Total Sales | Percent Change 2013 vs. 2012 | 2013 | Percent of Total Sales | 2012 | Percent of Total Sales | Percent Change 2013 vs. 2012 | |||||||||||||||||||||||
United States | $ | 599.6 | 71 | % | $ | 530.0 | 70 | % | 13 | % | $ | 1,143.6 | 72 | % | $ | 1,019.0 | 71 | % | 12 | % | |||||||||||||
Canada | 109.7 | 13 | % | 113.9 | 15 | % | (4 | )% | 197.2 | 12 | % | 189.3 | 13 | % | 4 | % | |||||||||||||||||
Other foreign countries | 135.5 | 16 | % | 111.5 | 15 | % | 22 | % | 249.9 | 16 | % | 220.9 | 16 | % | 13 | % | |||||||||||||||||
Total sales | $ | 844.8 | 100 | % | $ | 755.4 | 100 | % | 12 | % | $ | 1,590.7 | 100 | % | $ | 1,429.2 | 100 | % | 11 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||
($ in millions) | 2013 | Percent of Total Cost of Sales | 2012 | Percent of Total Cost of Sales | Change 2013 vs. 2012 | 2013 | Percent of Total Cost of Sales | 2012 | Percent of Total Cost of Sales | Change 2013 vs. 2012 | |||||||||||||||||||||||
Purchased materials and services | $ | 518.6 | 88 | % | $ | 476.9 | 88 | % | 9 | % | $ | 983.3 | 88 | % | $ | 895.9 | 88 | % | 10 | % | |||||||||||||
Labor and benefits | 48.2 | 8 | % | 41.5 | 8 | % | 16 | % | 89.5 | 8 | % | 80.1 | 8 | % | 12 | % | |||||||||||||||||
Depreciation and amortization | 12.5 | 2 | % | 11.7 | 2 | % | 7 | % | 26.9 | 2 | % | 24.5 | 2 | % | 10 | % | |||||||||||||||||
Warranty costs | 13.2 | 2 | % | 8.6 | 2 | % | 53 | % | 22.0 | 2 | % | 17.0 | 2 | % | 29 | % | |||||||||||||||||
Total cost of sales | $ | 592.5 | 100 | % | $ | 538.7 | 100 | % | 10 | % | $ | 1,121.7 | 100 | % | $ | 1,017.5 | 100 | % | 10 | % | |||||||||||||
Percentage of sales | 70.1 | % | 71.3 | % | -120 basis | 70.5 | % | 71.2 | % | -70 basis | |||||||||||||||||||||||
points | points |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
($ in millions) | 2013 | 2012 | Change 2013 vs. 2012 | 2013 | 2012 | Change 2013 vs. 2012 | |||||||||||||||
Gross profit dollars | $ | 252.3 | $ | 216.7 | 16 | % | $ | 469.0 | $ | 411.7 | 14 | % | |||||||||
Percentage of sales | 29.9 | % | 28.7 | % | +120 basis points | 29.5 | % | 28.8 | % | +70 basis points |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
($ in millions) | 2013 | 2012 | Change 2013 vs. 2012 | 2013 | 2012 | Change 2013 vs. 2012 | |||||||||||||||
Selling and marketing | $ | 62.2 | $ | 50.5 | 23 | % | $ | 116.7 | $ | 95.7 | 22 | % | |||||||||
Research and development | 34.6 | 31.2 | 11 | % | 66.1 | 61.7 | 7 | % | |||||||||||||
General and administrative | 41.5 | 32.8 | 27 | % | 80.2 | 67.7 | 18 | % | |||||||||||||
Total operating expenses | $ | 138.3 | $ | 114.5 | 21 | % | $ | 263.0 | $ | 225.1 | 17 | % | |||||||||
Percentage of sales | 16.4 | % | 15.2 | % | +120 basis points | 16.5 | % | 15.8 | % | +70 basis points |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
($ in millions) | 2013 | 2012 | Change 2013 vs. 2012 | 2013 | 2012 | Change 2013 vs. 2012 | |||||||||||||||
Income from financial services | $ | 11.5 | $ | 8.2 | 40 | % | $ | 21.6 | $ | 15.4 | 40 | % | |||||||||
Percentage of sales | 1.4 | % | 1.1 | % | +30 basis points | 1.4 | % | 1.1 | % | +30 basis points |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
($ in millions except per share data) | 2013 | 2012 | Change 2013 vs. 2012 | 2013 | 2012 | Change 2013 vs. 2012 | |||||||||||||||
Net income | $ | 80.0 | $ | 69.8 | 15 | % | $ | 155.5 | $ | 129.9 | 20 | % | |||||||||
Diluted net income per share | $ | 1.13 | $ | 0.98 | 15 | % | $ | 2.20 | $ | 1.83 | 20 | % |
($ in millions) | Six months ended June 30, | ||||||||||
2013 | 2012 | Change | |||||||||
Total cash provided by (used for): | |||||||||||
Operating activities | $ | 103.5 | $ | 78.4 | $ | 25.1 | |||||
Investing activities | (230.6 | ) | (39.8 | ) | (190.8 | ) | |||||
Financing activities | (69.7 | ) | (73.7 | ) | 4.0 | ||||||
Impact of currency exchange rates on cash balances | (2.5 | ) | (0.9 | ) | (1.6 | ) | |||||
Decrease in cash and cash equivalents | $ | (199.3 | ) | $ | (36.0 | ) | $ | (163.3 | ) |
Foreign Currency | Foreign currency hedging contracts | Currency impact compared to the prior year period | |||||||||
Currency Position | Notional amounts (in thousands of US Dollars) | Average exchange rate of open contracts | Second quarter 2013 | Estimated remainder of 2013 | |||||||
Australian Dollar (AUD) | Long | $ | 7,531 | $1.02 to 1 AUD | Negative | Negative | |||||
Canadian Dollar (CAD) | Long | 67,570 | $0.98 to 1 CAD | Negative | Negative | ||||||
Euro | Short | — | None | Neutral | Neutral | ||||||
Japanese Yen | Short | 26,925 | $1 to 87.83 Yen | Positive | Positive | ||||||
Mexican Peso | Short | 8,999 | $1 to 13.26 Peso | Slightly negative | Slightly negative | ||||||
Norwegian Kroner | Long | 4,848 | $0.17 to 1 Kroner | Slightly positive | Slightly negative | ||||||
Swedish Krona | Long | 8,103 | $0.15 to 1 Krona | Slightly positive | Slightly negative |
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) | ||||||||
April 1 — 30, 2013 | — | $ | — | — | 1,682,000 | |||||||
May 1 — 31, 2013 | 72,000 | 84.73 | 72,000 | 1,610,000 | ||||||||
June 1 — 30, 2013 | 1,000 | 94.95 | 1,000 | 1,609,000 | ||||||||
Total | 73,000 | $ | 84.87 | 73,000 | 1,609,000 |
Exhibit Number | Description | |
3.a | Restated Articles of Incorporation of Polaris Industries Inc. (the “Company”), effective October 24, 2011, incorporated by reference to Exhibit 3.a to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011. | |
3.b | Bylaws of the Company, as amended and restated on April 29, 2010, incorporated by reference to Exhibit 3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010. | |
31.a | Certification of Chief Executive Officer — Section 302 | |
31.b | Certification of Chief Financial Officer — Section 302 | |
32.a | Certification of Chief Executive Officer — Section 906 | |
32.b | Certification of Chief Financial Officer — Section 906 | |
101 | The following financial information from Polaris Industries Inc.’s Quarterly Report on Form 10-Q for the period ended June 30, 2013, filed with the SEC on July 23, 2013, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets at June 30, 2013 and December 31, 2012, (ii) the Consolidated Statements of Income for the three and six month periods ended June 30, 2013 and 2012, (iii) the Consolidated Statements of Comprehensive Income for the three and six month periods ended June 30, 2013 and 2012, (iv) the Consolidated Statements of Cash Flows for the six month periods ended June 30, 2013 and 2012, and (v) Notes to Consolidated Financial Statements. |
POLARIS INDUSTRIES INC. (Registrant) | |||
Date: | July 23, 2013 | /S/ SCOTT W. WINE | |
Scott W. Wine Chairman and Chief Executive Officer (Principal Executive Officer) | |||
Date: | July 23, 2013 | /S/ MICHAEL W. MALONE | |
Michael W. Malone Vice President — Finance and Chief Financial Officer (Principal Financial and Chief Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q 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/ SCOTT W. WINE |
Scott W. Wine |
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q 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/ MICHAEL W. MALONE |
Michael W. Malone |
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 Quarterly Report on Form 10-Q for the period ended June 30, 2013 (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/ SCOTT W. WINE |
Scott W. Wine |
Chief Executive Officer |
1. | This statement is provided pursuant to 18 U.S.C. § 1350 in connection with the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2013 (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/ MICHAEL W. MALONE |
Michael W. Malone |
Vice President — Finance and Chief Financial Officer |
Derivative Instruments and Hedging Activities
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Derivative Instruments and Hedging Activities | NOTE 10. Derivative Instruments and Hedging Activities The Company is exposed to certain risks relating to its ongoing business operations. From time to time, the primary risks managed by using derivative instruments are foreign currency risk, interest rate risk and commodity price fluctuations. Derivative contracts on various currencies are entered into in order to manage foreign currency exposures associated with certain product sourcing activities and intercompany cash flows. Interest rate swaps are entered into in order to manage interest rate risk associated with the Company’s variable-rate borrowings. Commodity hedging contracts are entered into in order to manage fluctuating market prices of certain purchased commodities and raw materials that are integrated into the Company’s end products. The Company’s foreign currency management objective is to mitigate the potential impact of currency fluctuations on the value of its U.S. dollar cash flows and to reduce the variability of certain cash flows at the subsidiary level. The Company actively manages certain forecasted foreign currency exposures and uses a centralized currency management operation to take advantage of potential opportunities to naturally offset foreign currency exposures against each other. The decision of whether and when to execute derivative instruments, along with the duration of the instrument, can vary from period to period depending on market conditions, the relative costs of the instruments and capacity to hedge. The duration is linked to the timing of the underlying exposure, with the connection between the two being regularly monitored. Polaris does not use any financial contracts for trading purposes. At June 30, 2013, Polaris had the following open foreign currency contracts (in thousands):
These contracts, with maturities through June 30, 2014, met the criteria for cash flow hedges and the unrealized gains or losses, after tax, are recorded as a component of accumulated other comprehensive income in shareholders’ equity. Polaris enters into derivative contracts to hedge a portion of the exposure related to diesel fuel and aluminum. These diesel fuel and aluminum derivative contracts have not met the criteria for hedge accounting. The Company recognized a gain of $207,000 and loss of $874,000 in cost of sales on commodity contracts not designated as hedging instruments for the three and six months ended June 30, 2013, versus a gain of $291,000 and $835,000 for the three and six months ended June 30, 2012. The table below summarizes the carrying values of derivative instruments as of June 30, 2013 and December 31, 2012 (in thousands):
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income and reclassified into the income statement in the same period or periods during which the hedged transaction affects the income statement. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in the current income statement. The table below provides data about the amount of gains and losses, net of tax, related to derivative instruments designated as cash flow hedges included in accumulated other comprehensive income for the three and six months ended June 30, 2013 and 2012 (in thousands):
See Note 8 for information about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive income into the income statement for derivative instruments designated as hedging instruments. The ineffective portion of foreign currency contracts was not material for the three and six month periods ended June 30, 2013. |
Consolidated Statements Of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Sales | $ 844,800 | $ 755,446 | $ 1,590,709 | $ 1,429,196 |
Cost of sales | 592,462 | 538,697 | 1,121,723 | 1,017,484 |
Gross profit | 252,338 | 216,749 | 468,986 | 411,712 |
Operating expenses: | ||||
Selling and marketing | 62,238 | 50,555 | 116,731 | 95,688 |
Research and development | 34,604 | 31,216 | 66,054 | 61,682 |
General and administrative | 41,444 | 32,759 | 80,254 | 67,759 |
Total operating expenses | 138,286 | 114,530 | 263,039 | 225,129 |
Income from financial services | 11,502 | 8,215 | 21,576 | 15,398 |
Operating income | 125,554 | 110,434 | 227,523 | 201,981 |
Non-operating expense (income): | ||||
Interest expense | 1,371 | 1,466 | 2,844 | 2,978 |
Equity in loss of other affiliates | 586 | 0 | 998 | 0 |
Other (income) expense, net | (1,230) | 210 | (3,698) | (2,367) |
Income before income taxes | 124,827 | 108,758 | 227,379 | 201,370 |
Provision for income taxes | 44,823 | 38,935 | 71,911 | 71,469 |
Net income | $ 80,004 | $ 69,823 | $ 155,468 | $ 129,901 |
Basic net income per share (in dollars per share) | $ 1.16 | $ 1.01 | $ 2.26 | $ 1.89 |
Diluted net income per share ( in dollars per share) | $ 1.13 | $ 0.98 | $ 2.20 | $ 1.83 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 68,867 | 68,954 | 68,830 | 68,795 |
Diluted (in shares) | 70,755 | 71,161 | 70,759 | 70,993 |
Inventories
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Inventories | NOTE 3. Inventories Inventories are stated at the lower of cost (first-in, first-out method) or market. The major components of inventories are as follows (in thousands):
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Goodwill and Other Intangible Assets (Tables)
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Schedule of changes in carrying amount of goodwill | The changes in the carrying amount of goodwill for the six months ended June 30, 2013 were as follows (in thousands):
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Schedule of other intangible assets, changes in net carrying amount | For other intangible assets, the changes in the net carrying amount for the six months ended June 30, 2013 were as follows (in thousands):
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Schedule of components of other intangible assets | The components of other intangible assets were as follows (in thousands):
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Fair Value Measurements
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Fair Value Measurements | NOTE 11. Fair Value Measurements ASC Topic 820 defines fair value as 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 orderly transaction between market participants on the measurement date. This Topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company utilizes the market approach to measure fair value for its non-qualified deferred compensation assets and liabilities, and the income approach for the foreign currency contracts and commodity contracts. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach uses significant other observable inputs to value the Company's derivative instruments used to hedge interest rate volatility, foreign currency and commodity transactions. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):
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Derivative Instruments and Hedging Activities - Gains and Losses, Net of Tax, Related to Derivative Instruments Designated as Cash Flow Hedges Included in Accumulated Other Comprehensive Income, Net (Detail) (Cash Flow Hedging, USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in accumulated OCI on derivative (effective portion) | $ 1,913 | $ 1,775 | $ 3,020 | $ (1,646) |
Interest rate contracts
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Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in accumulated OCI on derivative (effective portion) | (6) | (6) | (12) | (12) |
Foreign currency contracts
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Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in accumulated OCI on derivative (effective portion) | $ 1,919 | $ 1,781 | $ 3,032 | $ (1,634) |
Goodwill and Other Intangible Assets - Other Intangible Assets, Changes in Net Carrying Amount (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended |
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Jun. 30, 2013
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Jun. 30, 2013
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Disclosure Other Intangible Assets Changes In Net Carrying Amount [Abstract] | ||
Finite-lived Intangible Assets Acquired | $ 55,327 | |
Other Intangible Assets, Gross Amount [Roll Forward] | ||
Other intangible assets, beginning | 54,907 | |
Foreign currency translation effect on balances | 48 | |
Other intangible assets, ending | 110,282 | 110,282 |
Other Intangible Assets, Accumulated Amortization [Roll Forward] | ||
Other intangible assets, beginning | (4,015) | |
Amortization expense | (2,574) | (3,652) |
Foreign currency translation effect on balances | 52 | |
Other intangible assets, ending | $ (7,615) | $ (7,615) |
Fair Value Measurements (Tables)
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Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):
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Derivative Instruments and Hedging Activities (Tables)
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Jun. 30, 2013
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Schedule of open foreign currency contracts | At June 30, 2013, Polaris had the following open foreign currency contracts (in thousands):
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Schedule of carrying values of derivative instruments | The table below summarizes the carrying values of derivative instruments as of June 30, 2013 and December 31, 2012 (in thousands):
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Schedule of gains and losses, net of tax, related to derivative instruments designated as cash flow hedges included in accumulated other comprehensive income, net | The table below provides data about the amount of gains and losses, net of tax, related to derivative instruments designated as cash flow hedges included in accumulated other comprehensive income for the three and six months ended June 30, 2013 and 2012 (in thousands):
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Derivative Instruments and Hedging Activities - Open Foreign Currency Contracts (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Derivative [Line Items] | ||
Derivative, Fair Value, Net | $ 1,964 | $ (2,741) |
Cash Flow Hedging | Foreign exchange contracts
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Derivative [Line Items] | ||
Notional Amounts (in US Dollars) | 123,976 | |
Derivative, Fair Value, Net | 2,219 | |
Cash Flow Hedging | Foreign exchange contracts | Currency, Australian Dollar
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Derivative [Line Items] | ||
Notional Amounts (in US Dollars) | 7,531 | |
Derivative, Fair Value, Net | 809 | |
Cash Flow Hedging | Foreign exchange contracts | Currency, Canadian Dollar
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Derivative [Line Items] | ||
Notional Amounts (in US Dollars) | 67,570 | |
Derivative, Fair Value, Net | 1,845 | |
Cash Flow Hedging | Foreign exchange contracts | Currency, Japanese Yen
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Derivative [Line Items] | ||
Notional Amounts (in US Dollars) | 26,925 | |
Derivative, Fair Value, Net | (1,002) | |
Cash Flow Hedging | Foreign exchange contracts | Currency, Mexican Peso
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Derivative [Line Items] | ||
Notional Amounts (in US Dollars) | 8,999 | |
Derivative, Fair Value, Net | 120 | |
Cash Flow Hedging | Foreign exchange contracts | Norwegian Kroner
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Derivative [Line Items] | ||
Notional Amounts (in US Dollars) | 4,848 | |
Derivative, Fair Value, Net | 227 | |
Cash Flow Hedging | Foreign exchange contracts | Currency, Swedish Krone
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Derivative [Line Items] | ||
Notional Amounts (in US Dollars) | 8,103 | |
Derivative, Fair Value, Net | $ 220 |
Financial Services Arrangements - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Investments in and Advances to Affiliates [Line Items] | ||
Net amount financed for dealers | $ 712,801 | |
Trade receivables, net | 148,725 | 119,769 |
Aggregate repurchase obligation, amount | 97,897 | |
Maximum
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Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation, percentage | 15.00% | |
Finance affiliate
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Investments in and Advances to Affiliates [Line Items] | ||
Investment in affiliates | 55,346 | 56,988 |
Polaris Acceptance
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Investments in and Advances to Affiliates [Line Items] | ||
Equity method investment ownership percentage | 50.00% | |
Trade receivables, net | 167,218 | |
Securitization Facility
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Investments in and Advances to Affiliates [Line Items] | ||
Outstanding balance of receivables | $ 545,583 |
Shareholders' Equity - Additional Information (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Stockholders Equity Note [Line Items] | ||||
Repurchase and retirement of common stock | $ 31,869 | |||
Repurchase and retirement of common stock, shares | 372 | |||
Shares remaining available for repurchases | 1,609 | 1,609 | ||
Cash dividend paid during period, per share | $ 0.42 | $ 0.37 | $ 0.84 | $ 0.74 |
Common stock excluded from calculation of diluted earnings per share | 1,018 | 916 | 799 | 1,117 |
Derivative Instruments and Hedging Activities - Additional Information (Details) (Cost of sales, Commodity contracts, USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Cost of sales | Commodity contracts
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Derivatives, Fair Value [Line Items] | ||||
Recognized gain (loss) in cost of sales on commodity contracts not designated as hedging instruments | $ 207 | $ 291 | $ (874) | $ 835 |
Share-Based Compensation - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended |
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Jun. 30, 2013
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Disclosure Share Based Compensation Additional Information [Abstract] | |
Unrecognized compensation cost related to unvested share-based equity awards | $ 74,375 |
Weighted average period of recognition of unvested share-based equity awards | 1 year 9 months 22 days |
Unrecognized compensation cost related to unvested share-based equity awards, stock options | 44,869 |
Unrecognized compensation cost related to unvested share-based equity awards, restricted stock | $ 29,506 |
Shareholders' Equity - Changes in Accumulated Other Comprehensive Income (Loss) Balances (Detail) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
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Jun. 30, 2013
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Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2012 | $ 12,238 |
Reclassification to the income statement | (358) |
Change in fair value | (2,949) |
Balance as of June 30, 2013 | 8,931 |
Foreign Currency Items
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Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2012 | 13,669 |
Reclassification to the income statement | 0 |
Change in fair value | (6,327) |
Balance as of June 30, 2013 | 7,342 |
Cash Flow Hedging
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Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2012 | (1,431) |
Reclassification to the income statement | (358) |
Change in fair value | 3,378 |
Balance as of June 30, 2013 | $ 1,589 |
Shareholders' Equity (Tables)
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Jun. 30, 2013
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Schedule of cash dividends declared per common share | Cash dividends declared per common share for the three and six months ended June 30, 2013 and 2012, were as follows:
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Schedule of reconciliation of weighted average number of shares | A reconciliation of these amounts is as follows (in thousands):
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Schedule of changes in accumulated other comprehensive income (loss) balances | Changes in the accumulated other comprehensive income balance is as follows (in thousands):
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Schedule of gains and losses, net of tax, reclassified from accumulated other comprehensive income into the income statement for cash flow derivatives designated as hedging instruments | The table below provides data about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive income into the income statement for cash flow derivatives designated as hedging instruments for the three and six months ended June 30, 2013 and 2012 (in thousands):
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