10-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
	Washington, D.C. 20549

	FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2014
	Commission file number 001-11411

POLARIS INDUSTRIES INC.

(Exact name of registrant as specified in its charter)

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) Securities registered pursuant to Section 12(b) of the Act:

Title of Class		Name of Each Exchange on Which Registered
Common Stock, $.01 par value		New York Stock Exchange
	Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  x    No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.    Yes  ¨    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No   x

The aggregate market value of the registrant’s common stock held by non-affiliates of the registrant was approximately $8,590,586,000 as of June 30, 2014, based upon the last sales price per share of the registrant’s Common Stock, as reported on the New York Stock Exchange on such date.

As of February 13, 2015, 66,317,127 shares of Common Stock, $.01 par value, of the registrant were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE:

Portions of the registrant’s Annual Report to Shareholders for the year ended December 31, 2014 (the “2014 Annual Report” furnished to the Securities and Exchange Commission are incorporated by reference into Part II of this Form 10-K. Portions of the definitive Proxy Statement for the registrant’s Annual Meeting of Shareholders to be held on April 30, 2015 to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this report (the “2015 Proxy Statement”), are incorporated by reference into Part III of this Form 10-K.

POLARIS INDUSTRIES INC. 2014 FORM 10-K ANNUAL REPORT TABLE OF CONTENTS
		Page
	PART I
Item 1.	Business	3
Item 1A.	Risk Factors	14
Item 1B.	Unresolved Staff Comments	19
Item 2.	Properties	19
Item 3.	Legal Proceedings	20
Item 4.	Mine Safety Disclosures	20
	PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	21
Item 6.	Selected Financial Data	23
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	36
Item 8.	Financial Statements and Supplementary Data	39
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	66
Item 9A.	Controls and Procedures	66
Item 9B.	Other Information	66
	PART III
Item 10.	Directors, Executive Officers and Corporate Governance	66
Item 11.	Executive Compensation	66
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	66
Item 13.	Certain Relationships and Related Transactions, and Director Independence	67
Item 14.	Principal Accounting Fees and Services	67
	PART IV
Item 15.	Exhibits, Financial Statement Schedules	68
	Signatures	69

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PART I

Item 1. Business

Polaris Industries Inc., a Minnesota corporation, was formed in 1994 and is the successor to Polaris Industries Partners LP. The terms “Polaris,” the “Company,” “we,” “us,” and “our” as used herein refer to the business and operations of Polaris Industries Inc., its subsidiaries and its predecessors, which began doing business in the early 1950’s. We design, engineer and manufacture Off-Road Vehicles (ORV), including All-Terrain Vehicles (ATV) and side-by-side vehicles for recreational and utility use, Snowmobiles, Motorcycles and Small Vehicles (SV), together with the related replacement Parts, Garments and Accessories (PG&A). These products are sold through dealers and distributors principally located in the United States, Canada and Europe. Sales of ORVs, Snowmobiles, Motorcycles, SVs and PG&A accounted for the following approximate percentages of our sales for the years ended December 31:

	ORVs	Snowmobiles	Motorcycles	Small Vehicles	PG&A
2014	65%	7%	8%	3%	17%
2013	67%	8%	6%	3%	16%
2012	69%	9%	6%	2%	14%

Industry Background

Off-Road Vehicles. Our ORVs include core ATVs and RANGER^® and RZR^® side-by-side vehicles. ATVs are four-wheel vehicles with balloon style tires designed for off-road use and traversing rough terrain, swamps and marshland. Side-by-side vehicles are multi-passenger off-road, all-terrain vehicles that can carry up to six passengers in addition to cargo. ORVs are used for recreation, in such sports as fishing and hunting and for trail and dune riding, for utility purposes on farms, ranches, construction sites and for certain military applications.

ATVs were introduced to the North American market in 1971 by Honda Motor Co., Ltd. (“Honda”). Other Japanese motorcycle manufacturers, including Yamaha Motor Corporation (“Yamaha”), Kawasaki Motors Corp. (“Kawasaki”), and Suzuki Motor Corporation (“Suzuki”), entered the North American ATV market in the late 1970’s and early 1980’s. We entered the ATV market in 1985, Arctic Cat Inc. (“Arctic Cat”) entered in 1995 and Bombardier Recreational Products Inc. ("BRP") entered in 1998 with their Can-Am product line. In addition, numerous Chinese and Taiwanese manufacturers of youth and small ATVs exist for which limited industry sales data is available. By 1985, the number of three- and four-wheel ATVs sold in North America had grown to approximately 650,000 units per year, then dropped dramatically to a low of 148,000 in 1989. The ATV industry then grew each year in North America from 1990 until 2005, but declined between 2005 and 2011, primarily due to weak overall economic conditions and a move to side-by-side vehicles, until returning to modest low single digit percentage growth in 2012 through 2014. Internationally, ATVs are also sold primarily in Western European countries by similar manufacturers as in North America. We estimate that during 2014 world-wide industry sales increased three percent from 2013 levels with an estimated 419,000 ATVs sold worldwide.

We estimate that the side-by-side vehicle market sales increased approximately seven percent during 2014 over 2013 levels with an estimated 413,000 side-by-side vehicles sold worldwide. The side-by-side market has increased consistently over the past several years primarily due to continued innovation by existing and new manufacturers. The main competitors for our RANGER and RZR side-by-side vehicles are Deere & Company (“Deere”), Kawasaki, Yamaha, Arctic Cat, Kubota Tractor Corporation (“Kubota”), Honda and BRP's Can-Am product line.

We estimate that total off-road vehicle industry sales for 2014, which includes core ATVs and side-by-side vehicles, increased five percent from 2013 levels with an estimated 832,000 units sold worldwide.

Snowmobiles. In the early 1950’s, a predecessor to Polaris produced a “gas powered sled,” which became the forerunner of the Polaris snowmobile. Snowmobiles have been manufactured under the Polaris name since 1954. Originally conceived as a utility vehicle for northern, rural environments, over time the snowmobile gained popularity as a recreational vehicle. From the mid-1950’s through the late 1960’s, over 100 producers entered the snowmobile market and snowmobile sales reached a peak of approximately 495,000 units in 1971. The Polaris product survived the industry decline in which snowmobile sales fell to a low point of approximately 87,000 units in 1983 and the number of snowmobile manufacturers serving the North American market declined to four: Yamaha, BRP's Ski-Doo product line, Arctic Cat and Polaris. These four manufacturers also sell snowmobiles in certain overseas markets where the climate is conducive to snowmobile riding. From 1984 to 1997 the industry grew to approximately 260,000 units before gradually declining through the 2012 season, but grew again in 2013. We estimate that during the season ended March 31, 2014,

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world-wide industry sales of snowmobiles increased four percent from the previous season levels with an estimated 141,000 units sold worldwide.

Motorcycles. Polaris’ Motorcycles division consists of Victory^®, Indian^® motorcycles, and the all-new three-wheel roadster motorcycle, Slingshot^®. Heavyweight motorcycles are utilized as a mode of transportation as well as for recreational purposes. The industry is comprised of four segments: cruisers, touring, sport bikes and standard motorcycles. We entered the heavyweight motorcycle market in 1998 with an initial Victory product in the cruiser segment. We entered the touring segment in 2000. In 2011, we purchased the Indian Motorcycle brand to complement our Victory brand of motorcycles. In 2013, we re-launched the Indian brand by releasing the first three Indian Motorcycle models engineered by Polaris. In 2014, we introduced the Company's first three-wheeled, roadster motorcycle, Slingshot. The North America heavyweight industry retail cruiser and touring sales more than doubled from 1996 to 2006; however, the motorcycle industry declined in 2007 through 2010 due to weak overall economic conditions. The motorcycle industry has rebounded with growth beginning in 2011. We estimate that the combined 1,400cc and above cruiser and touring market segments increased one percent in 2014 compared to 2013 levels with an estimated 186,000 heavyweight cruiser and touring motorcycles sold in the North American market. Other major heavyweight cruiser and touring motorcycle manufacturers include BMW of North America, LLC (“BMW”), Triumph Motorcycles Ltd., Harley-Davidson, Inc., Honda, Yamaha, Kawasaki and Suzuki. We estimate that the worldwide target market for three-wheel motorcycles is approximately $1 billion.

Small Vehicles. We introduced our initial SV product, the Polaris Breeze^®, in 2009, which was an electric powered vehicle primarily used in master planned communities in the Sunbelt region of the United States. In 2011, we ceased production of the Breeze line of products and made two SV acquisitions, Global Electric Motorcars LLC ("GEM") and Goupil Industries S.A. (“Goupil”). We expanded our SV portfolio in 2013 by acquiring A.M. Holding S.A.S., which operates under the name Aixam Mega S.A.S. ("Aixam"). Aixam is based in France and manufactures and sells enclosed on-road quadricycles and light duty commercial vehicles. Through these acquisitions, we now offer products in the light-duty hauling, people mover and urban/suburban commuting sub-sectors of the small vehicles industry. We estimate the worldwide target market for small vehicles at approximately $4.0 billion in 2014, which includes master planned communities and golf courses, light duty hauling, people movers, urban/suburban commuting and related quadricycles. Other major small vehicle manufacturers include Textron Inc.’s “E-Z-GO,” Ingersoll-Rand Plc.’s “Club Car,” Yamaha and DrivePlanet's "Ligier."

Products

Off-Road Vehicles. We entered the ORV market in 1985 with an ATV. We currently produce four-wheel ATVs, which provide more stability for the rider than earlier three-wheel versions. In 2000, we introduced our first youth ATV models. In 1998, we introduced the Polaris RANGER, a six-wheeled off-road side-by-side utility vehicle and in 2000, we introduced a four-wheeled version of the RANGER utility vehicle. In 2004, we introduced a military version ATV and side-by-side vehicles with features specifically designed for ultra-light tactical military applications. In 2007, we introduced our first recreational side-by-side vehicle, the RZR, and our first six-passenger side-by-side vehicle, the RANGER Crew^®. Our standard line of military and government vehicles for model year 2015 consists of 6 models at suggested United States retail prices ranging from approximately $7,000 to $163,000. Our full line of ORVs beyond military vehicles consists of 49 models, including two-, four- and six-wheel drive general purpose, commercial, recreational and side-by-side models, with 2015 model year suggested United States retail prices ranging from approximately $2,100 to $28,000.

Most of our ORVs feature the totally automatic Polaris variable transmission, which requires no manual shifting, and several have a MacPherson^® strut front suspension, which enhances control and stability. Our “on demand” all-wheel drive provides industry leading traction performance and ride quality due to its patented on demand, easy shift-on-the-fly design. Our ORVs have four-cycle engines and both shaft and concentric chain drive. Over the past 11 years, we have introduced the industry's first electronic fuel injected ATV, the first independent rear suspension on a sport ATV and helped create the recreational side-by-side segment through introduction of our RZR vehicles. Our lineup of ORVs has continued to expand over the past years through introduction of electric ORVs and commercial focused ORVs. Our family of ORVs includes utility and recreational Sportsman^® ATVs, sport-styled Scrambler^® ATVs, utility and recreational RANGER side-by-side vehicles, commercial-utility BRUTUS^® side-by-side vehicles and recreational RZR side-by-side vehicles. In many of these segments, we offer youth, value, mid-size, trail and high-performance vehicles, which come in both single passenger and multi-passenger seating arrangements. Our key ORV product introductions in 2014 included the RZRXP 900 trail, RANGER570 with industry-exclusive PRO-FIT™ cab system, and RANGER Diesel

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with hydrostatic transmission, several new value models and two models in a newly defined category of single-seat, ride-in ATVs, the Polaris ACE™.

Snowmobiles. We produce a full line of snowmobiles consisting of approximately 32 models, ranging from youth models to utility and economy models to performance and competition models. The 2015 model year suggested United States retail prices range from approximately $2,800 to $14,000. Polaris snowmobiles are sold principally in the United States, Canada and Europe. We believe our snowmobiles have a long-standing reputation for quality, dependability and performance. We believe that we were the first to develop several features for wide commercial use in snowmobiles, including independent front suspension, long travel rear suspension, hydraulic disc brakes, liquid cooling for brakes and a three cylinder engine. In 2009, we introduced the first true progressive-rate rear suspension snowmobile, the Polaris RUSH^®. In 2014, we introduced the all-new AXYS™ chassis platform for the flatland rider.

Motorcycles. In 1998, we began manufacturing V-twin cruiser motorcycles under the Victory brand name. In 2008, we introduced our first luxury touring model, the Victory Vision^®. In 2009, we expanded our touring product line to include the Victory Cross Roads^® and Cross Country^® models. In 2011, we acquired Indian Motorcycle Company, America’s first motorcycle company, and in 2013 we re-launched the Indian brand by releasing the first three Indian Motorcycle models engineered by Polaris: Indian Chief^® Classic, Indian Chief Vintage and Indian Chieftain™. In 2014, we added two new Indian models, including the Roadmaster^®, a luxury touring motorcycle, and Scout™, Polaris' first mid-sized motorcycle. We also added a new bagger to the Victory motorcycle line in 2014, the Victory Magnum™. The all-new three-wheel motorcycle, Slingshot was introduced in 2014, and is the Company's first roadster motorcycle. Our 2015 model year line of motorcycles for Victory, Indian and Slingshot consists of approximately 16 models with suggested U.S. retail prices ranging from approximately $11,000 to $28,500.

Small Vehicles. In 2009, we introduced our first SV, the Polaris Breeze. In 2011, we ceased production of the Breeze electric vehicles and acquired GEM and Goupil to expand and complement our small vehicle product line. In 2013, we further expanded our SV division by acquiring Aixam. GEM addresses the people mover segment of low emission vehicles, Goupil, a French company, addresses the light duty hauling segment and Aixam, also a French company, addresses both the passenger and light duty hauling segments. GEM has ten SV models, while Goupil and Aixam each have three base platforms that are modular and can be configured to meet numerous custom needs from park and garden maintenance to delivery and other commercial needs. Additionally, Aixam has four base models of passenger-based quadricycles that are sold primarily in Western Europe. Prices for SVs range from $8,000 to $30,000, depending on the model and application.

Parts, Garments and Accessories. We produce or supply a variety of replacement parts and accessories for our product lines. ORV accessories include winches, bumper/brushguards, plows, racks, mowers, tires, pull-behinds, cabs, cargo box accessories, tracks and oil. Snowmobile accessories include covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oil and lubricants. Motorcycle accessories include saddle bags, handlebars, backrests, exhaust, windshields, seats, oil and various chrome accessories. We also market a full line of recreational apparel for our product lines, including helmets, jackets, bibs and pants, leathers and hats. In 2012, we acquired Teton Outfitters, LLC (d/b/a Klim), which specializes in premium technical riding gear for the snowmobile and motorcycle industries. Apparel is designed to our specifications, purchased from independent vendors and sold by us through our dealers and distributors, and online under our brand names. In 2014, we acquired Kolpin Outdoors, Inc. ("Kolpin"), an aftermarket brand delivering purpose-built and universal-fit ORV accessories and lifestyle products. We also acquired certain assets of LSI Products Inc. and Armor Holdings LLC (collectively "Pro Armor"), an aftermarket accessories company that specializes in accessories for performance side-by-side vehicles and all-terrain vehicles. These two 2014 acquisitions added industry leading aftermarket accessory brands to our PG&A activities.

Marine Products Division. We entered the personal watercraft market in 1992. In September 2004, we announced our decision to cease manufacturing marine products effective immediately. As technology and the distribution channel evolved, the marine products division’s lack of commonality with our other product lines created challenges for us and our dealer base. The marine products division continued to experience escalating costs and increasing competitive pressures and was never profitable.

Manufacturing and Distribution Operations

Our products are primarily assembled at our original manufacturing facility in Roseau, Minnesota and at our facilities in Spirit Lake, Iowa, and its surrounding areas, Osceola, Wisconsin, Monterrey, Mexico, Opole, Poland and various locations across France. Since our product lines incorporate similar technology, substantially the same equipment and personnel are employed across production in North America. We are vertically integrated in several key components of

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our manufacturing process, including plastic injection molding, welding, clutch assembly and balancing and painting. Fuel tanks, tracks, tires, seats and instruments, and certain other component parts are purchased from third-party vendors. Raw materials or standard parts are readily available from multiple sources for the components manufactured by us. Our work force is familiar with the use, operation and maintenance of the products since many employees own the products we manufacture. In 2010, we announced plans to realign our manufacturing operations. We have created manufacturing centers of excellence for our products by enhancing the existing Roseau and Spirit Lake production facilities and established a manufacturing facility in Monterrey, Mexico, which became operational in 2011, that assembles ORVs and certain engines. This realignment led to the sale of part of our Osceola, Wisconsin manufacturing operations, moving frame tube bending into Roseau and Monterrey, and outsourcing some operations including seat manufacturing and stamping. Several of the engines used in our vehicles continue to be manufactured in Osceola. Our plant in Opole, Poland facility manufactures ORVs to serve the European market. Goupil has its manufacturing operations in Bourran, France, while Aixam has its manufacturing operations in Aix-les-Bains and Chanas, France. Our Roseau facility primarily manufactures ORVs and snowmobiles and our Monterrey facility primarily manufactures ORVs. Our facilities in Spirit Lake, Iowa and its surrounding areas primarily manufacture ORVs, motorcycles and GEM vehicles. In January 2015, we announced plans to build a new production facility in Huntsville, Alabama to provide additional capacity and flexibility. The 600,000 square-foot facility will focus on off-road vehicle production. We will break ground on the facility in the first quarter of 2015 with completion expected in the first half of 2016.

Pursuant to informal agreements between us and Fuji Heavy Industries Ltd. (“Fuji”), Fuji was the sole manufacturer of our two-cycle snowmobile engines from 1968 to 1995. Fuji has manufactured engines for our ATV products since their introduction in 1985. We had entered into an agreement with Fuji to form Robin Manufacturing, U.S.A. (“Robin”) in 1995. Under the agreement, we made an investment for a 40 percent ownership position in Robin, which built engines in the United States for recreational and industrial products. The Robin facility was closed in 2011 as the production volume of engines made at the facility had declined significantly. Since 2011, our reliance on and use of Fuji manufactured engines in our products has steadily declined as our internal engine manufacturing capabilities have expanded. After decreasing from 2011 to 2014, we expect our use of Fuji engines in our vehicles to stabilize in 2015.

We have been designing and producing our own engines for select models of snowmobiles since 1995, for all Victory motorcycles since 1998, for select ORV models since 2001 and for Indian motorcycles since the re-launch in 2013. During 2014, approximately 80 percent of the total vehicles we produced were powered by engines designed and assembled by us.

In 2000, we entered into an agreement with a Taiwanese manufacturer to co-design, develop and produce youth ATVs. We have since expanded the agreement with the Taiwanese manufacturer in 2004 to include the design, development and production of value-priced smaller adult ATV models and in 2008 to include a youth side-by-side vehicle, the RZR 170.

We do not anticipate any significant difficulties in obtaining substitute supply arrangements for other raw materials or components that we generally obtain from limited sources.

Contract carriers ship our products from our manufacturing and distribution facilities to our customers. We maintain several leased wholegoods distribution centers where final set-up and up-fitting is completed for certain models before shipment to customers.

We maintain sales and administration facilities in Medina and Plymouth, Minnesota; Rigby, Idaho; Winnipeg, Canada; Derrimut, Australia; Shanghai, China; Rolle, Switzerland; Sao Paulo, Brazil; New Delhi, India; Monterrey, Mexico and in most Western European countries. Our primary wholegoods distribution facilities are in St. Paul, Minnesota; Haviland, Ohio; Altona, Australia; Irving, Texas; and Milford, Iowa. Our primary North American dealer PG&A distribution facilities are in Vermillion, South Dakota; Wilmington, Ohio and Rigby, Idaho. We have various other locations around the world that distribute PG&A to our international dealers and distributors.

Production Scheduling

We produce and deliver our products throughout the year based on dealer, distributor and customer orders. Beginning in 2008, we began testing a new dealer ordering process called Maximum Velocity Program (MVP), where ORV orders are placed in approximately two-week intervals for the high volume dealers driven by retail sales trends at the individual dealership. Smaller dealers utilize a similar MVP process, but on a less frequent ordering cycle. Effective in 2010, the MVP process was being utilized by all North American ORV dealers. For MVP dealers, ORV retail sales activity at the dealer level drives orders which are incorporated into each product’s production scheduling. International distributor ORV orders are taken throughout the year. Orders for each year’s production of snowmobiles are placed by the dealers

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and distributors in the spring. Non-refundable deposits made by consumers to dealers in the spring for pre-ordered snowmobiles assist in production planning. In 2012, we began utilizing our Retail Flow Management (RFM) ordering system for Victory motorcycles, and now also use it as the ordering system for Indian motorcycles. In late 2014, we began utilizing RFM for certain ATV dealers. The RFM system allows dealers to order daily, create a segment stocking order, and eventually reduce order fulfillment times to what we expect will be less than 18 days. Prior to RFM, Victory motorcycle dealers would place annual orders in the summer. For non-MVP and RFM dealers and products, units are built to order each year, subject to fluctuations in market conditions and supplier lead times. The anticipated volume of units to be produced is substantially committed to by dealers and distributors prior to production.

Manufacture of snowmobiles commences in late winter of the previous season and continues through late autumn or early winter of the current season. We manufacture ORVs, motorcycles and SV’s year round. We have the ability to mix production of the various products on the existing manufacturing lines as demand dictates.

Sales and Marketing

Our products are sold through a network of approximately 1,750 independent dealers in North America, through 23 subsidiaries and approximately 85 distributors in over 100 countries outside of North America.

We sell our snowmobiles directly to dealers in the snowbelt regions of the United States and Canada. Many dealers and distributors of our snowmobiles also distribute our ORVs. At the end of 2014, approximately 800 Polaris dealers were located in areas of the United States where snowmobiles are not regularly sold. Unlike our primary competitors, which market their ORV products principally through their affiliated motorcycle dealers, we also sell our ORVs through lawn and garden and farm implement dealers.

With the exception of France, the United Kingdom, Sweden, Norway, Australia, New Zealand, Germany, Spain, China, India, Mexico and Brazil, sales of our non-SV products in Europe and other offshore markets are handled through independent distributors. In 2011 through 2014, we acquired GEM, Goupil and Aixam in the SV division and Klim, Kolpin and Pro Armor in PG&A, which each have their own dealer/distributor relationships established.

Victory and Indian motorcycles are distributed directly through independently owned dealers and distributors, except in Australia where we have three Company-owned retail stores. We have a high quality dealer network for our other product lines from which many of the approximately 450 current North American Victory dealers were selected. Indian currently has approximately 175 North American dealers signed up, of which approximately 118 are retailing Indian motorcycles as of the end of 2014. We expect the number of Indian retailing dealerships to continue to increase over the coming years. In 2005, we began selling Victory motorcycles in the United Kingdom. Since 2005, we have been gradually expanding our international sales of motorcycles, primarily in Europe and Australia. We expect to further expand our motorcycle dealer network over the next few years in North America and internationally for Victory, Indian and Slingshot motorcycles.

The SV businesses each have their own distribution networks through which their respective vehicles are distributed. GEM has approximately 250 dealers. Goupil and Aixam sell directly to customers in France, through subsidiaries in certain Western European countries and through several dealers and distributors for markets outside such countries.

Dealers and distributors sell our products under contractual arrangements pursuant to which the dealer or distributor is authorized to market specified products and is required to carry certain replacement parts and perform certain warranty and other services. Changes in dealers and distributors take place from time to time. We believe a sufficient number of qualified dealers and distributors exist in all geographic areas to permit an orderly transition whenever necessary. In addition, we sell Polaris vehicles directly to military and government agencies and other national accounts and we supply a highly differentiated side-by-side vehicle branded Bobcat to their dealerships in North America. In 2013, we entered into a partnership with Ariens Company ("Ariens"), a Brillion, Wisconsin based manufacturer of outdoor power equipment. Through the partnership, we anticipate leveraging each other's dealer networks, sharing certain technologies, research and development and supplying Ariens with a highly differentiated work vehicle to sell through its dealer network. In 2014, we began shipping vehicles to Ariens under the terms of the partnership.

In 1996, a wholly-owned subsidiary of Polaris entered into a partnership agreement with a subsidiary of Transamerica Distribution Finance (TDF) to form Polaris Acceptance. Polaris Acceptance provides floor plan financing to our dealers in the United States. Under the partnership agreement, we have a 50 percent equity interest in Polaris Acceptance. We do not guarantee the outstanding indebtedness of Polaris Acceptance. In 2004, TDF was merged with a subsidiary of General Electric Company (GE) and, as a result of that merger, TDF’s name was changed to GE Commercial Distribution Finance Corporation (GECDF). No significant change in the Polaris Acceptance relationship resulted from

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the change of ownership from TDF. In November 2006, Polaris Acceptance sold a majority of its receivable portfolio to a securitization facility arranged by General Electric Capital Corporation, a GECDF affiliate (“Securitization Facility”), and the partnership agreement was amended to provide that Polaris Acceptance would continue to sell portions of its receivable portfolio to the Securitization Facility from time to time on an ongoing basis. See Notes 4 and 8 of Notes to Consolidated Financial Statements for a discussion of this financial services arrangement.

We have arrangements with Polaris Acceptance (United States) and GE affiliates (Australia, Canada, France, Germany, the United Kingdom, Ireland, China and New Zealand) to provide floor plan financing for our dealers. A majority of our North American sales of snowmobiles, ORVs, motorcycles, SVs and related PG&A are financed under arrangements whereby we are paid within a few days of shipment of our product. We participate in the cost of dealer financing and have agreed to repurchase products from the finance companies under certain circumstances and subject to certain limitations. We have not historically been required to repurchase a significant number of units; however, there can be no assurance that this will continue to be the case. If necessary, we will adjust our sales return allowance at the time of sale should we anticipate material repurchases of units financed through the finance companies. See Note 8 of Notes to Consolidated Financial Statements for a discussion of these financial services arrangements.

In August 2005, a wholly-owned subsidiary of Polaris entered into a multi-year contract with HSBC Bank Nevada, National Association (“HSBC”), formerly known as Household Bank (SB), N.A., under which HSBC managed our private label credit card program under the StarCard label for the purchase of Polaris products. Since then, HSBC’s U.S. Credit Card and Retail Services business has been acquired by Capital One. Our current agreement with Capital One expires in October 2015.

In April 2006, a wholly-owned subsidiary of Polaris entered into a multi-year contract with GE Money Bank (“GE Bank”) under which GE Bank makes available closed-end installment consumer and commercial credit to customers of our dealers for both Polaris and non-Polaris products. In 2014, GE Bank changed its name to Synchrony Bank, as a result of a spin off and is part of the GE Capital Retail Finance business. The current installment credit agreement under which Synchrony Bank provides installment credit lending for motorcycles expires in April 2016.

In January 2009, a wholly-owned subsidiary of Polaris entered into a multi-year contract with Sheffield Financial (“Sheffield”) pursuant to which Sheffield agreed to make available closed-end installment consumer and commercial credit to customers of our dealers for Polaris products. The current installment credit agreement under which Sheffield provides exclusive installment credit lending for ORVs, as well as installment credit lending for snowmobiles, motorcycles and certain other Polaris products expires in February 2016.

In November 2014, a wholly-owned subsidiary of Polaris entered into a multi-year contract with FreedomRoad Financial (“FreedomRoad”) pursuant to which FreedomRoad agreed to make available closed-end installment consumer and commercial credit to customers of our dealers for Polaris products. The current installment credit agreement under which FreedomRoad provides installment credit lending for motorcycles expires in February 2016.

In December 2014, a wholly-owned subsidiary of Polaris entered into a multi-year contract with Chrome Capital LLC (“Chrome”) pursuant to which Chrome agreed to make available leasing to customers of our dealers for Victory and Indian Motorcycles. The current leasing agreement under which Chrome provides exclusive leasing for motorcycles expires in January 2018.

We promote our brands among the riding and non-riding public and provide a wide range of products for enthusiasts by licensing the name Polaris. We currently license the production and sale of a range of items, including die cast toys, ride-on toys and numerous other products.

We sell clothing and accessories through our e-commerce sites polaris.com, indianmotorcycle.com, klim.com, kolpin.com, and proarmor.com.

Our marketing activities are designed primarily to promote and communicate directly with consumers and secondarily to assist the selling and marketing efforts of our dealers and distributors. We make available and advertise discount or rebate programs, retail financing or other incentives for our dealers and distributors to remain price competitive in order to accelerate retail sales to consumers and gain market share. We advertise our products directly to consumers using print advertising in the industry press and in user group publications and on the internet, billboards, television and radio. We also provide media advertising and partially underwrite dealer and distributor media advertising to a degree and on terms which vary by product and from year to year. From time to time, we produce promotional films for our products, which are available to dealers for use in the showroom or at special promotions. We also provide product brochures, leaflets, posters, dealer signs, and miscellaneous other promotional items for use by dealers.

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We expended $314.4 million, $270.3 million and $210.4 million for sales and marketing activities in 2014, 2013 and 2012, respectively.

Engineering, Research and Development, and New Product Introduction

We have approximately 700 employees who are engaged in the development and testing of existing products and research and development of new products and improved production techniques, located primarily in our Roseau and Wyoming, Minnesota facilities and in Burgdorf, Switzerland. Our SV acquisitions of GEM, Goupil and Aixam included research and development resources for their respective product lines. We believe Polaris was the first to develop, for wide commercial use, independent front suspensions for snowmobiles, long travel rear suspensions for snowmobiles, liquid cooled snowmobile brakes, hydraulic brakes for snowmobiles, the three cylinder engine in snowmobiles, the adaptation of the MacPherson strut front suspension, “on demand” all-wheel drive systems and the Concentric Drive System for use in ORVs, the application of a forced air cooled variable power transmission system in ORVs and the use of electronic fuel injection for ORVs.

We utilize internal combustion engine testing facilities to design and optimize engine configurations for our products. We utilize specialized facilities for matching engine, exhaust system and clutch performance parameters in our products to achieve desired fuel consumption, power output, noise level and other objectives. Our engineering department is equipped to make small quantities of new product prototypes for testing and for the planning of manufacturing procedures. In addition, we maintain numerous facilities where each of the products is extensively tested under actual use conditions. We utilize our Wyoming, Minnesota facility for engineering, design and development personnel for our line of engines and powertrains, ORVs, Victory, Indian and Slingshot motorcycles, and SVs. In 2010, we acquired Swissauto Powersports Ltd., an engineering company that develops high performance and high efficiency engines and innovative vehicles.

We expended $148.5 million, $139.2 million, and $127.4 million for research and development activities in 2014, 2013 and 2012, respectively.

Intellectual Property

We rely on a combination of patents, trademarks, copyrights, trade secrets, and nondisclosure and non-competition agreements to establish and protect our intellectual property and proprietary technology. We have filed and obtained numerous patents in the United States and abroad, and regularly file patent applications worldwide in our continuing effort to establish and protect our proprietary technology. Additionally, we have numerous registered trademarks, trade names and logos in the United States, Canada and international locations.

Competition

The off-road vehicle, snowmobile, motorcycle and small vehicle markets in the United States, Canada and other global markets are highly competitive. Competition in such markets is based upon a number of factors, including price, quality, reliability, styling, product features and warranties. At the dealer level, competition is based on a number of factors, including sales and marketing support programs (such as financing and cooperative advertising). Certain of our competitors are more diversified and have financial and marketing resources that are substantially greater than those of Polaris.

We believe that our products are competitively priced and our sales and marketing support programs for dealers are comparable to those provided by our competitors. Our products compete with many other recreational products for the discretionary spending of consumers, and to a lesser extent, with other vehicles designed for utility applications.

Product Safety and Regulation

Safety regulation. The federal government and individual states have promulgated or are considering promulgating laws and regulations relating to the use and safety of certain of our products. The federal government is currently the primary regulator of product safety. The Consumer Product Safety Commission (CPSC) has federal oversight over product safety issues related to snowmobiles and off-road vehicles. The National Highway Transportation Safety Administration (NHTSA) has federal oversight over product safety issues related to motorcycles and small vehicles.

In August 2008, the Consumer Product Safety Improvement Act (“Act”) was passed which, among other things, required ATV manufacturers and distributors to comply with previously voluntary American National Standards Institute (ANSI) safety standards developed by the Specialty Vehicle Institute of America (SVIA). We believe that our products comply with the ANSI/SVIA standards, and we have had an action plan on file with the CPSC since 1998 regarding safety

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related issues. The Act also includes a provision which requires the CPSC to complete an ATV rulemaking process it started in August 2006 regarding the need for safety standards or increased safety standards for ATVs, which has not yet resulted in the issuance of a final rule.

We are a member of the Recreational Off-Highway Vehicle Association (ROHVA), which was established to promote the safe and responsible use of side-by-side vehicles also known as Recreational Off-Highway Vehicles (ROVs), a category that includes our RANGER and RZR side-by-side vehicles. Since early 2008, ROHVA has been engaged in a comprehensive process for developing a voluntary standard for equipment, configuration and performance requirements of ROVs through ANSI. Comments on the draft standard were actively solicited from the CPSC and other stakeholders as part of the ANSI process. The standard, which addresses stability, occupant retention, and other safety performance criteria, was approved and published by ANSI in March 2010, revised in 2011, and revised again in 2014.

In October 2009, the CPSC published an advance notice of proposed rulemaking regarding ROV safety under the Consumer Product Safety Act. In December 2014, the CPSC published a Notice of Proposed Rulemaking that includes proposed mandatory safety standards for ROVs in the areas of lateral stability, steering and handling, and occupant retention. Polaris, by itself and through ROHVA, has expressed concerns about the proposed mandatory standards, whether they would actually reduce ROV incident rates, whether the proposed tests are repeatable and appropriate for ROVs, and the unintended safety consequences that could result from them. We are unable to predict the outcome of the CPSC rule-making process or the ultimate impact of any resulting rules on our business and operating results.

We are a member of the International Snowmobile Manufacturers Association (ISMA), a trade association formed to promote safety in the manufacture and use of snowmobiles, among other things. ISMA members include all of the major snowmobile manufacturers. The ISMA members are also members of the Snowmobile Safety and Certification Committee, which promulgated voluntary sound and safety standards for snowmobiles that have been adopted as regulations in some states of the United States and in Canada. These standards require testing and evaluation by an independent testing laboratory. We believe that our snowmobiles have always complied with safety standards relevant to snowmobiles.

Motorcycle and SVs are subject to federal vehicle safety standards administered by the NHTSA and are also subject to various state vehicle equipment standards. Our Slingshot vehicle is classified as a motorcycle under federal law, but may be classified differently in other jurisdictions. We believe our motorcycles (including Slingshot) and SVs comply with applicable federal and state safety standards.

Our products are also subject to international standards related to safety in places where we sell our products outside the United States. We believe that our motorcycles, SVs, ORVs and snowmobiles have complied with applicable safety standards in the United States and other international locations.

Use regulation. Local, state and federal laws and regulations have been promulgated, and at various times, ordinances or legislation is introduced, relating to the use or manner of use of our products. Some states and municipalities have adopted, or are considering the adoption of, legislation and local ordinances that restrict the use of ORVs and snowmobiles to specified hours and locations. The federal government also has legislative and executive authority to restrict the use of ORVs and snowmobiles in some national parks and federal lands. In several instances, this restriction has been a ban on the recreational use of these vehicles.

Emissions. The federal Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) have adopted emissions regulations applicable to our products.

The EPA's emission standards for off-road recreational engines and vehicles apply to our ORV's and snowmobiles. We have developed engine and emission technologies to meet these requirements, including the chassis-based ORV emission requirements that became effective in model year 2014. Snowmobiles comply using the fleet average provisions of the regulations. In 2008, the EPA announced its intention to issue a future rulemaking on snowmobiles with any new emission standards taking effect after model year 2012. No further EPA rulemaking activity has followed the 2008 announcement. The CARB also has emission regulations for ORVs that we meet. In 2014, CARB finalized additional evaporative emission regulations for ORVs that will take effect beginning in model year 2018.

Our Victory, Indian and Slingshot motorcycles are subject to EPA and CARB emission standards for on-highway motorcycles. We believe that these vehicles comply with the applicable standards. GEM electric vehicles are subject to CARB emissions certification requirements, which they meet.

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Our products are also subject to international emission laws and regulations in places where we sell our products outside the United States. Canada’s emission regulations for motorcycles, ORVs and snowmobiles are similar to those in the United States, and Polaris complies with the applicable Canada requirements. Europe currently regulates emissions from our motorcycles and certain of our ATV-based products for which we obtain whole vehicle type approvals, and these products meet the applicable requirements. In 2014, the European Parliament and Council finalized the details of new regulations that will make these European emission requirements more stringent beginning in 2016. Emissions from other Polaris off-road products in the EU will be covered in the future by the non-road mobile machinery directive, which is currently being revised. Polaris is reviewing the technology requirements and developing compliance solutions for these future EU regulations.

We believe that our products comply with applicable emission standards and related regulations in the United States and internationally. We are unable to predict the ultimate impact of the adopted or proposed new regulations on our business. We are currently developing and obtaining engine and emission technologies to meet the requirements of the future emission standards.

Employees

Due to the seasonality of our business and certain changes in production cycles, total employment levels vary throughout the year. Despite such variations in employment levels, employee turnover has not been high. During 2014, on a worldwide basis, we employed an average of approximately 7,000 full-time persons, a 30 percent increase from 2013. Approximately 2,900 of our employees are salaried. We consider our relations with our employees to be excellent.

Available Information

Our Internet website is http://www.polaris.com. We make available free of charge, on or through our website, our annual, quarterly and current reports, and any amendments to those reports, as soon as reasonably practicable after electronically filing such reports with the Securities and Exchange Commission. We also make available through our website our corporate governance materials, including our Corporate Governance Guidelines, the charters of the Audit Committee, Compensation Committee, Corporate Governance and Nominating Committee and Technology Committee of our Board of Directors and our Code of Business Conduct and Ethics. Any shareholder or other interested party wishing to receive a copy of these corporate governance materials should write to Polaris Industries Inc., 2100 Highway 55, Medina, Minnesota 55340, Attention: Investor Relations. Information contained on our website is not part of this report.

Forward-Looking Statements

This 2014 Annual Report contains not only historical information, but also “forward-looking statements” intended to qualify for the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These “forward-looking statements” can generally be identified as such because the context of the statement will include words such as we or our management “believes,” “anticipates,” “expects,” “estimates” or words of similar import. Similarly, statements that describe our future plans, objectives or goals are also forward-looking. Forward-looking statements may also be made from time to time in oral presentations, including telephone conferences and/or webcasts open to the public. Shareholders, potential investors and others are cautioned that all forward-looking statements involve risks and uncertainties that could cause results in future periods to differ materially from those anticipated by some of the statements made in this report, including the risks and uncertainties described below under the heading entitled “Item 1A—Risk Factors” and elsewhere in this report. The risks and uncertainties discussed in this report are not exclusive and other factors that we may consider immaterial or do not anticipate may emerge as significant risks and uncertainties.

Any forward-looking statements made in this report or otherwise speak only as of the date of such statement, and we undertake no obligation to update such statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements. We advise you, however, to consult any further disclosures made on related subjects in future quarterly reports on Form 10-Q and current reports on Form 8-K that are filed with or furnished to the Securities and Exchange Commission.

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Executive Officers of the Registrant

Set forth below are the names of our executive officers as of February 20, 2015, their ages, titles, the year first appointed as an executive officer, and employment for the past five years:

Name	Age	Title
Scott W. Wine	47	Chairman of the Board of Directors and Chief Executive Officer
Bennett J. Morgan	51	President and Chief Operating Officer
Kenneth J. Pucel	48	Executive Vice President—Global Operations, Engineering and Lean
Michael W. Malone	56	Vice President—Finance and Chief Financial Officer
Todd-Michael Balan	45	Vice President—Corporate Development
Stacy L. Bogart	51	Vice President—General Counsel, Compliance Officer and Secretary
Michael D. Dougherty	47	Vice President—Asia Pacific and Latin America
Stephen L. Eastman	50	Vice President—Parts, Garments and Accessories
Matthew J. Homan	43	President—Global Adjacent Markets
Michael P. Jonikas	54	Vice President—Snowmobiles and Slingshot
Suresh Krishna	46	Vice President—Europe, Middle East and Africa
David C. Longren	56	Vice President—Off-Road Vehicles and Off-Road Vehicles Engineering
James P. Williams	52	Vice President—Human Resources

Executive officers of the Company are elected at the discretion of the Board of Directors with no fixed terms. There are no family relationships between or among any of the executive officers or directors of the Company.

Mr. Wine joined Polaris Industries Inc. as Chief Executive Officer on September 1, 2008, and was named Chairman of the Board of Directors in January 2013. Prior to joining Polaris, Mr. Wine was President of Fire Safety Americas, a division of United Technologies, a provider of high technology products and services to the building systems and aerospace industries, from 2007 to August 2008. Prior to that, Mr. Wine held senior leadership positions at Danaher Corp. in the United States and Europe from 2003 to 2007, including President of its Jacob Vehicle Systems and Veeder-Roots subsidiaries, and Vice President and General Manager, Manufacturing Programs in Europe. From 1996 to 2003, Mr. Wine held a number of operations and executive posts, both international and domestic with Allied Signal Corporation's Aerospace Division.

Mr. Morgan has been President and Chief Operating Officer of the Company since April 2005; prior to that he was Vice President and General Manager of the ATV division of Polaris. Prior to managing the ATV division, Mr. Morgan was General Manager of PG&A for Polaris from 1997 to 2001. He joined Polaris in 1987 and spent his early career in various product development, marketing and operations management positions of increasing responsibility.

Mr. Pucel joined Polaris in December 2014 as Executive Vice President—Global Operations, Engineering and Lean. Prior to joining Polaris, Mr. Pucel was with Boston Scientific Corporation (BSC), a global provider of medical solutions. Most recently, Mr. Pucel held the position of Executive Vice President of Global Operations, Quality and Technology and was a member of BSC’s Executive Committee from 2004 to 2014. Since 2004, he managed BSC’s manufacturing facilities, supply chain and numerous distributions centers; in 2010, he added responsibility for enterprise-wide Lean and research and development activities.

Mr. Malone has been Vice President—Finance and Chief Financial Officer of the Company since January 1997. From January 1997 to January 2010, Mr. Malone also served as Corporate Secretary. Mr. Malone was Vice President and Treasurer of the Company from December 1994 to January 1997 and was Chief Financial Officer and Treasurer of a predecessor company of Polaris from January 1993 to December 1994. Prior thereto and since 1986, he was Assistant Treasurer of a predecessor company of Polaris. Mr. Malone joined Polaris in 1984 after four years with Arthur Andersen LLP.

Mr. Balan joined Polaris in July 2009 as Vice President—Corporate Development. Prior to joining Polaris, Mr. Balan was Director of Marketing and Strategy for United Technologies Corporation's Fire & Security business from 2007 to June 2009. Prior to that, Mr. Balan held various marketing, general management, business development, and strategy roles within Danaher Corp. from 2001 to 2007. Mr. Balan’s work history also includes various strategy, marketing, and sales management roles with Emerson Electric and Colfax Corporation.

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Ms. Bogart has been Vice President—General Counsel and Compliance Officer of Polaris since November 2009 and Corporate Secretary since January 2010. From February 2009 to November 2009, Ms. Bogart was General Counsel of Liberty Diversified International. From October 1999 until February 2009, Ms. Bogart held several positions at The Toro Company, including Assistant General Counsel and Assistant Secretary. Before joining The Toro Company, Ms. Bogart was a Senior Attorney for Honeywell Inc.

Mr. Dougherty has been Vice President—Asia Pacific and Latin America since August 2011. Mr. Dougherty joined the company in 1998 as International Sales Manager, and has held several positions, including Vice President of Global New Market Development and Vice President and General Manager of the ATV division during his tenure. Prior to Polaris, Mr. Dougherty was employed at Trident Medical International, a trading company.

Mr. Eastman has been Vice President—Parts, Garments and Accessories since February 2012. Prior to joining Polaris, Mr. Eastman was President of Target.com for Target Corporation, a general merchandise retailer, from July 2008 to October 2011. Prior to that, Mr. Eastman held several leadership positions at Target Corporation since 1982 in various areas, including General Merchandising, Consumer Electronics, Inventory Management and Merchandise Planning Operations.

Mr. Homan was promoted to President—Global Adjacent Markets in July 2014. Mr. Homan has held several key leadership positions at Polaris. Prior to his current role, most recently he was Vice President—EMEA since August 2011, Vice President—Off-Road Vehicles since August 2008, and General Manager of Side-by-Sides since December 2005. Mr. Homan joined Polaris in 2002 as Director of Marketing for the ATV division. Prior to working at Polaris, Mr. Homan spent nearly seven years at General Mills, Inc. working in various marketing and brand management positions.

Mr. Jonikas is Vice President—Snowmobiles and Slingshot. Mr. Jonikas has been Vice President of Snowmobiles since August 2011. Mr. Jonikas was Vice President of Sales and Marketing beginning in November 2007 until January 2014 when he assumed the role of Vice President of Snowmobiles and Slingshot. Mr. Jonikas was also previously Vice President—On-Road Vehicles from May 2009 to August 2011. Mr. Jonikas joined Polaris in 2000, and has held several key roles including Director of Product and Marketing Management for the ATV division and General Manager of Side-by-Sides. Prior to joining Polaris, Mr. Jonikas spent 12 years at General Mills, Inc. in numerous general management positions.

Mr. Krishna became Vice President—Europe, Middle East and Africa in July 2014. Prior to this, Mr. Krishna was Vice President—Global Operations and Integration since September 2010, and Vice President—Supply Chain and Integration since March 2010. Before Mr. Krishna joined Polaris, he was Vice President Global Operations, Supply Chain and IT for a division of United Technologies Corporation's Fire & Security business where he was responsible for significant operations in China, Mexico, the United States and Europe from August 2007 to March 2010. Prior to United Technologies Corporation, Mr. Krishna worked for Diageo, a global producer of famous drink brands as Vice President Supply Chain for its North American business from February 2002 to July 2007.

Mr. Longren was appointed Vice President—Off-Road Vehicles and Off-Road Vehicles Engineering in August 2011. Prior to this, Mr. Longren was Chief Technical Officer since May 2006. Mr. Longren joined Polaris in January 2003 as the Director of Engineering for the ATV Division. Prior to joining Polaris, Mr. Longren was a Vice President in the Weapons Systems Division of Alliant Techsystems and Vice President, Engineering and Marketing at Blount Sporting Equipment Group.

Mr. Williams joined Polaris as Vice President—Human Resources in April 2011. Prior to joining Polaris, Mr. Williams was Vice President of Human Resources for Cooper Industries, a diversified manufacturing Company, since 2006. Between 2005 and 2006, Mr. Williams was Vice President of Human Resources for Danaher Corp. Previous to that, Mr. Williams held various executive positions of increasing responsibility with Honeywell Inc. from 1995 to 2005. Prior to that, Mr. Williams held a number of posts in Human Resources with Monsanto and General Motors Corporation.

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Item 1A. Risk Factors

The following are significant factors known to us that could materially adversely affect our business, financial condition, or operating results, as well as adversely affect the value of an investment in our common stock.

Our products are subject to extensive United States federal and state and international safety, environmental and other government regulation that may require us to incur expenses or modify product offerings in order to maintain compliance with the actions of regulators and could decrease the demand for our products.

Our products are subject to extensive laws and regulations relating to safety, environmental and other regulations promulgated by the United States federal government and individual states as well as international regulatory authorities. Failure to comply with applicable regulations could result in fines, increased expenses to modify our products and harm to our reputation, all of which could have an adverse effect on our operations. In addition, future regulations could require additional safety standards or emission reductions that would require additional expenses and/or modification of product offerings in order to maintain compliance with applicable regulations. Our products are also subject to laws and regulations that restrict the use or manner of use during certain hours and locations, and these laws and regulations could decrease the popularity and sales of our products. We continue to monitor regulatory activities in conjunction with industry associations and support balanced and appropriate programs that educate the product user on safe use of our products and how to protect the environment.

A significant adverse determination in any material product liability claim against us could adversely affect our operating results or financial condition.

The manufacture, sale and usage of our products expose us to significant risks associated with product liability claims. If our products are defective or used incorrectly by our customers, bodily injury, property damage or other injury, including death, may result and this could give rise to product liability claims against us or adversely affect our brand image or reputation. Any losses that we may suffer from any liability claims, and the effect that any product liability litigation may have upon the reputation and marketability of our products, may have a negative impact on our business and operating results.

Because of the high cost of product liability insurance premiums and the historically insignificant amount of product liability claims paid by us, we were self-insured from 1985 to 1996 and from 2002 to 2012. From 1996 to 2002, and beginning again in 2012, we purchased excess insurance coverage for catastrophic product liability claims for incidents occurring subsequent to the policy date that exceeded our self-insured retention levels. The estimated costs resulting from any losses are charged to expense when it is probable a loss has been incurred and the amount of the loss is reasonably determinable.

We had a product liability reserve accrued on our balance sheet of $17.3 million at December 31, 2014 for the probable payment of pending claims related to product liability litigation associated with our products. We believe such accrual is adequate. We do not believe the outcome of any pending product liability litigation will have a material adverse effect on our operations. However, no assurance can be given that our historical claims record, which did not include ATVs prior to 1985, motorcycles and side-by-side vehicles prior to 1998, and SVs prior to 2011, will not change or that material product liability claims against us will not be made in the future. Adverse determination of material product liability claims made against us would have a material adverse effect on our financial condition.

Significant product repair and/or replacement due to product warranty claims or product recalls could have a material adverse impact on our results of operations.

We provide a limited warranty for ORVs for a period of six months, for a period of one year for our snowmobiles, for a period of one or two years for our motorcycles depending on brand and model year, and for a two year period for SVs. We may provide longer warranties related to certain promotional programs, as well as longer warranties in certain geographical markets as determined by local regulations and market conditions. We also provide a limited emission warranty for certain emission-related parts in our ORVs, snowmobiles, and motorcycles as required by the EPA and CARB. Although we employ quality control procedures, sometimes a product is distributed that needs repair or replacement. Our standard warranties require us or our dealers to repair or replace defective products during such warranty periods at no cost to the consumer. Historically, product recalls have been administered through our dealers and distributors. The repair and replacement costs we could incur in connection with a recall could adversely affect our

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business. In addition, product recalls could harm our reputation and cause us to lose customers, particularly if recalls cause consumers to question the safety or reliability of our products.

Changing weather conditions may reduce demand and negatively impact net sales and production of certain of our products.

Lack of snowfall in any year in any particular geographic region may adversely affect snowmobile retail sales and related PG&A sales in that region. Additionally, to the extent that unfavorable weather conditions are exacerbated by global climate change or otherwise, our sales may be affected to a greater degree than we have previously experienced. There is no assurance that weather conditions or natural disasters could not have a material effect on our sales, production capability or component supply continuity for any of our products.

We face intense competition in all product lines, including from some competitors that have greater financial and marketing resources. Failure to compete effectively against competitors would negatively impact our business and operating results.

The snowmobile, off-road vehicle, motorcycle and small vehicle markets are highly competitive. Competition in such markets is based upon a number of factors, including price, quality, reliability, styling, product features and warranties. At the dealer level, competition is based on a number of factors, including sales and marketing support programs (such as financing and cooperative advertising). Certain of our competitors are more diversified and have financial and marketing resources that are substantially greater than ours, which allow these competitors to invest more heavily in intellectual property, product development and advertising. If we are not able to compete with new products or models of our competitors, our future business performance may be materially and adversely affected. Internationally, our products typically face more competition where certain foreign competitors manufacture and market products in their respective countries. This allows those competitors to sell products at lower prices, which could adversely affect our competitiveness. In addition, our products compete with many other recreational products for the discretionary spending of consumers and, to a lesser extent, with other vehicles designed for utility applications. A failure to effectively compete with these other competitors could have a material adverse effect on our performance.

Termination or interruption of informal supply arrangements could have a material adverse effect on our business or results of operations.

We have informal supply arrangements with many of our suppliers. In the event of a termination of the supply arrangement, there can be no assurance that alternate supply arrangements will be made on satisfactory terms. If we need to enter into supply arrangements on unsatisfactory terms, or if there are any delays to our supply arrangements, it could adversely affect our business and operating results.

Fluctuations in foreign currency exchange rates could result in declines in our reported sales and net earnings.

The changing relationships of primarily the United States dollar to the Canadian dollar, Australian dollar, the Euro, the Swiss Franc, the Mexican peso, the Japanese yen and certain other foreign currencies have from time to time had a negative impact on our results of operations. Fluctuations in the value of the United States dollar relative to these foreign currencies can adversely affect the price of our products in foreign markets, the costs we incur to import certain components for our products, and the translation of our foreign balance sheets. While we actively manage our exposure to fluctuating foreign currency exchange rates by entering into foreign exchange hedging contracts from time to time, these contracts hedge foreign currency denominated transactions and any change in the fair value of the contracts would be offset by changes in the underlying value of the transactions being hedged.

Our business may be sensitive to economic conditions that impact consumer spending.

Our results of operations may be sensitive to changes in overall economic conditions, primarily in North America and Europe, that impact consumer spending, including discretionary spending. Weakening of, and fluctuations in, economic conditions affecting disposable consumer income such as employment levels, business conditions, changes in housing market conditions, capital markets, tax rates, savings rates, interest rates, fuel and energy costs, the impacts of natural disasters and acts of terrorism and other matters, including the availability of consumer credit could reduce consumer spending or reduce consumer spending on powersports products. A general reduction in consumer spending or a reduction in consumer spending on powersports products could adversely affect our sales growth and profitability. In addition, we have a financial services partnership arrangement with a subsidiary of General Electric Company that requires us to repurchase products financed and repossessed by the partnership, subject to certain limitations. For calendar year 2014, our maximum aggregate repurchase obligation was approximately $120.8 million. If adverse

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changes to economic conditions result in increased defaults on the loans made by this financial services partnership, our repurchase obligation under the partnership arrangement could adversely affect our liquidity and harm our business.

Failure to establish and maintain the appropriate level of dealers and distributor relationships or weak economic conditions impacting those relationships may negatively impact our business and operating results.

We distribute our products through numerous dealers and distributors and rely on them to retail our products to the end customers. Our sales growth and profitability could be adversely affected if deterioration of economic or business conditions results in a weakening of the financial condition of a material number of our dealers and distributors. Additionally, weak demand for, or quality issues with, our products may cause dealers and distributors to voluntarily or involuntarily reduce or terminate their relationship with us. Further, if we fail to establish and maintain an appropriate level of dealers and distributors for each of our products, we may not obtain adequate market coverage for the desired level of retail sales of our products.

We depend on suppliers, financing sources and other strategic partners who may be sensitive to economic conditions that could affect their businesses in a manner that adversely affects their relationship with us.

We source component parts and raw materials through numerous suppliers and have relationships with a limited number of sources of product financing for our dealers and consumers. Our sales growth and profitability could be adversely affected if deterioration of economic or business conditions results in a weakening of the financial condition of a material number of our suppliers or financing sources, or if uncertainty about the economy or the demand for our products causes these business partners to voluntarily or involuntarily reduce or terminate their relationship with us.

Increases in the cost of raw material, commodity and transportation costs and shortages of certain raw materials could negatively impact our business.

The primary commodities used in manufacturing our products are aluminum, steel, petroleum-based resins and certain rare earth metals used in our charging systems, as well as diesel fuel to transport the products. Our profitability is affected by significant fluctuations in the prices of the raw materials and commodities we use in our products. We may not be able to pass along any price increases in our raw materials to our customers. As a result, an increase in the cost of raw materials, commodities, labor or other costs associated with the manufacturing of our products could increase our costs of sales and reduce our profitability.

Retail credit market deterioration and volatility may restrict the ability of our retail customers to finance the purchase of our products and adversely affect our income from financial services.

We have arrangements with each of Capital One, Sheffield, Synchrony Bank and FreedomRoad to make retail financing available to consumers who purchase our products in the United States. During 2014, consumers financed approximately 32 percent of the vehicles we sold in the United States through the Capital One revolving retail credit and Sheffield, Synchrony Bank, and FreedomRoad installment retail credit programs. Furthermore, some customers use financing from lenders who do not partner with us, such as local banks and credit unions. There can be no assurance that retail financing will continue to be available in the same amounts and under the same terms that had been previously available to our customers. If retail financing is not available to customers on satisfactory terms, it is possible that our sales and profitability could be adversely affected. Our income from financial services is affected by changes in interest rates.

We intend to grow our business through potential acquisitions, non-consolidating investments, alliances and new joint ventures and partnerships, which could be risky and could harm our business.

One of our growth strategies is to drive growth in our businesses and accelerate opportunities to expand our global presence through targeted acquisitions, non-consolidating investments, alliances, and new joint ventures and partnerships that add value while considering our existing brands and product portfolio. The benefits of an acquisition, non-consolidating investment, new joint venture or partnership may take more time than expected to develop or integrate into our operations, and we cannot guarantee that acquisitions, non-consolidating investments, alliances, joint ventures or partnerships will ultimately produce any benefits. In addition, acquisitions, non-consolidating investments, alliances, joint ventures and partnerships involve a number of risks, including:

• diversion of management’s attention;

• difficulties in integrating and assimilating the operations and products of an acquired business or in realizing projected efficiencies, cost savings, and synergies;

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• potential loss of key employees or customers of the acquired businesses or adverse effects on existing business relationships with suppliers and customers;

• adverse impact on overall profitability if acquired businesses or affiliates do not achieve the financial results projected in our valuation models;

• reallocation of amounts of capital from other operating initiatives and/or an increase in our leverage and debt service requirements to pay the acquisition purchase prices, which could in turn restrict our ability to access additional capital when needed or to pursue other important elements of our business strategy;

• inaccurate assessment of undisclosed, contingent or other liabilities or problems, unanticipated costs associated with an acquisition, and an inability to recover or manage such liabilities and costs;

• incorrect estimates made in the accounting for acquisitions, incurrence of non-recurring charges and impairment of significant amounts of goodwill, investments or other related assets that could adversely affect our operating results;

• dilution to existing shareholders if our securities are issued as part of transaction consideration or to fund transaction consideration; and

• inability to direct the management and policies of a joint venture, alliance, or partnership, where other participants may be able to take action contrary to our instructions or requests and against our policies and objectives.

Our ability to grow through acquisitions will depend, in part, on the availability of suitable acquisition targets at acceptable prices, terms, and conditions, our ability to compete effectively for these acquisition candidates, and the availability of capital and personnel to complete such acquisitions and run the acquired business effectively. These risks could be heightened if we complete a large acquisition or multiple acquisitions within a relatively short period of time. Any potential acquisition could impair our operating results, and any large acquisition could impair our financial condition, among other things.

Our reliance upon patents, trademark laws, and contractual provisions to protect our proprietary rights may not be sufficient to protect our intellectual property from others who may sell similar products and may lead to costly litigation.

We hold patents and trademarks relating to various aspects of our products, such as our patented “on demand” all-wheel drive, and believe that proprietary technical know-how is important to our business. Proprietary rights relating to our products are protected from unauthorized use by third parties only to the extent that they are covered by valid and enforceable patents or trademarks or are maintained in confidence as trade secrets. We cannot be certain that we will be issued any patents from any pending or future patent applications owned by or licensed to us or that the claims allowed under any issued patents will be sufficiently broad to protect our technology. In the absence of enforceable patent or trademark protection, we may be vulnerable to competitors who attempt to copy our products, gain access to our trade secrets and know-how or diminish our brand through unauthorized use of our trademarks, all of which could adversely affect our business. Others may initiate litigation to challenge the validity of our patents, or allege that we infringe their patents, or they may use their resources to design comparable products that do not infringe our patents. We may incur substantial costs if our competitors initiate litigation to challenge the validity of our patents, or allege that we infringe their patents, or if we initiate any proceedings to protect our proprietary rights. If the outcome of any such litigation is unfavorable to us, our business, operating results, and financial condition could be adversely affected. Regardless of whether litigation relating to our intellectual property rights is successful, the litigation could significantly increase our costs and divert management’s attention from operation of our business, which could adversely affect our results of operations and financial condition. We also cannot be certain that our products or technologies have not infringed or will not infringe the proprietary rights of others. Any such infringement could cause third parties, including our competitors, to bring claims against us, resulting in significant costs, possible damages and substantial uncertainty.

Fifteen percent of our total sales are generated outside of North America, and we intend to continue to expand our international operations. Our international operations require significant management attention and financial resources, expose us to difficulties presented by international economic, political, legal, accounting, and business factors, and may not be successful or produce desired levels of sales and profitability.

We currently manufacture our products in the United States, Mexico, Poland and France. We sell our products throughout the world and maintain sales and administration facilities in the United States, Canada, Switzerland and

17

several other Western European countries, Australia, China, Brazil, Mexico and India. Our primary distribution facilities are in Vermillion, South Dakota, Wilmington, Ohio, and Rigby, Idaho, which distribute PG&A products to our North American dealers and we have various other locations around the world that distribute PG&A to our international dealers and distributors. Our total sales outside North America were 15 percent, 16 percent, and 14 percent of our total sales for fiscal 2014, 2013, and 2012, respectively. International markets have, and will continue to be, a focus for sales growth. We believe many opportunities exist in the international markets, and over time we intend for international sales to comprise a larger percentage of our total sales. Several factors, including weakened international economic conditions, could adversely affect such growth. In 2014, we completed construction of a manufacturing facility in Poland. The expansion of our existing international operations and entry into additional international markets require significant management attention and financial resources. Some of the countries in which we manufacture and/or sell our products, or otherwise have an international presence, are to some degree subject to political, economic and/or social instability. Our international operations expose us and our representatives, agents and distributors to risks inherent in operating in foreign jurisdictions. These risks include:

• increased costs of customizing products for foreign countries;

• difficulties in managing and staffing international operations and increases in infrastructure costs including legal, tax, accounting, and information technology;

• the imposition of additional United States and foreign governmental controls or regulations;

• new or enhanced trade restrictions and restrictions on the activities of foreign agents, representatives, and distributors; and the imposition of increases in costly and lengthy import and export licensing and other compliance requirements, customs duties and tariffs, license obligations, and other non-tariff barriers to trade;

• the imposition of United States and/or international sanctions against a country, company, person, or entity with whom we do business that would restrict or prohibit our continued business with the sanctioned country, company, person, or entity;

• international pricing pressures;

• laws and business practices favoring local companies;

• adverse currency exchange rate fluctuations;

• longer payment cycles and difficulties in enforcing agreements and collecting receivables through certain foreign legal systems;

• difficulties in enforcing or defending intellectual property rights; and

• multiple, changing, and often inconsistent enforcement of laws, rules, and regulations, including rules relating to environmental, health, taxes, and safety matters.

Our international operations may not produce desired levels of total sales or one or more of the factors listed above may harm our business and operating results. Any material decrease in our international sales or profitability could also adversely impact our operating results.

Additional tax expense or tax exposure could impact our financial performance.

We are subject to income taxes and other business taxes in various jurisdictions in which we operate. Our tax liabilities are dependent upon the earnings generated in these different jurisdictions. Our provision for income taxes and cash tax liability could be adversely affected by numerous factors, including income before taxes being lower than anticipated in jurisdictions with lower statutory tax rates and higher than anticipated in jurisdictions with higher statutory tax rates, changes in the valuation of deferred tax assets and liabilities, a change in our assertion regarding the permanent reinvestment of the undistributed earnings of international affiliates and changes in tax laws and regulations in various jurisdictions. We are also subject to the continuous examination of our income tax returns by various tax authorities. The results of audits and examinations of previously filed tax returns and continuing assessments of our tax exposures may have an adverse effect on the Company’s provision for income taxes and cash tax liability.

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If we are unable to continue to enhance existing products and develop and market new products that respond to customer needs and preferences and achieve market acceptance, we may experience a decrease in demand for our products and our business could suffer.

One of our growth strategies is to develop innovative, customer-valued products to generate revenue growth. Our sales from new products in the past have represented a significant component of our sales and are expected to continue to represent a significant component of our future sales. We may not be able to compete as effectively with our competitors, and ultimately satisfy the needs and preferences of our customers, unless we can continue to enhance existing products and develop new innovative products in the global markets in which we compete. Product development requires significant financial, technological, and other resources. While we expended $148.5 million, $139.2 million, and $127.4 million for research and development efforts in 2014, 2013 and 2012, respectively, there can be no assurance that this level of investment in research and development will be sufficient to maintain our competitive advantage in product innovation, which could cause our business to suffer. Product improvements and new product introductions also require significant planning, design, development, and testing at the technological, product, and manufacturing process levels and we may not be able to timely develop product improvements or new products. Our competitors’ new products may beat our products to market, be more effective with more features and/or less expensive than our products, obtain better market acceptance, or render our products obsolete. Any new products that we develop may not receive market acceptance or otherwise generate any meaningful sales or profits for us relative to our expectations based on, among other things, existing and anticipated investments in manufacturing capacity and commitments to fund advertising, marketing, promotional programs, and research and development.

Our operations are dependent upon attracting and retaining skilled employees, including skilled labor. Our future success depends on our continuing ability to identify, hire, develop, motivate, retain and promote skilled personnel for all areas of our organization.

Our success depends on attracting and retaining qualified personnel. Our ability to sustain and grow our business requires us to hire, retain and develop a highly skilled and diverse management team and workforce. Failure to ensure that we have the leadership capacity with the necessary skill set and experience could impede our ability to deliver our growth objectives and execute our strategic plan. In addition, any unplanned turnover or inability to attract and retain key employees, including managers, could have a negative effect on our business, financial condition and/or results of operations.

We may be subject to information technology system failures, network disruptions and breaches in data security.

We use many information technology systems and their underlying infrastructure to operate our business. The size and complexity of our computer systems make them potentially vulnerable to breakdown, malicious intrusion and random attack. Recent acquisitions have resulted in additional decentralized systems which add to the complexity of our information technology infrastructure. Likewise, data privacy breaches by employees or others with permitted access to our systems may pose a risk that sensitive data may be exposed to unauthorized persons or to the public. While we have invested in layers of data and information technology protection, and continually monitor cybersecurity threats, there can be no assurance that our efforts will prevent disruptions or breaches in our systems that could adversely affect our business.

Item 1B. Unresolved Staff Comments

Not Applicable.

Item 2. Properties

The following sets forth the Company’s material facilities as of December 31, 2014:

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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	733,200
Monterrey, Mexico	Wholegoods manufacturing	Owned	425,000
Milford, Iowa	Wholegoods manufacturing	Primarily owned	460,400
Opole, Poland	Wholegoods manufacturing	Leased	300,000
Spirit Lake, Iowa	Wholegoods manufacturing	Owned	298,400
Osceola, Wisconsin	Component parts & engine manufacturing	Owned	285,800
Chanas, France	Wholegoods manufacturing	Owned	196,000
Bourran, France	Wholegoods manufacturing and R&D	Leased	100,000
Aix-les-Bains, France	Wholegoods manufacturing and R&D	Owned	97,800
Wyoming, Minnesota	Research and development facility	Owned	272,000
Burgdorf, Switzerland	Research and development facility	Leased	13,600
Wilmington, Ohio	Distribution center	Leased	429,000
Vermillion, South Dakota	Distribution center	Primarily owned	418,000
Rigby, Idaho	Distribution center and office facility	Owned	54,600
Altona, Australia	Wholegoods distribution	Leased	215,000
St. Paul, Minnesota	Wholegoods distribution	Leased	160,000
Irving, Texas	Wholegoods distribution	Leased	157,000
Milford, Iowa	Wholegoods distribution	Leased	100,000
Haviland, Ohio	Wholegoods distribution	Leased	100,000
Winnipeg, Canada	Office facility	Leased	15,000
Rolle, Switzerland	Office facility	Leased	8,000

Including the material properties listed above and those properties not listed, we have over 3.3 million square feet of manufacturing and research and development space located in North America and Europe. We have over 2.3 million square feet of warehouse and distribution center space in the United States and countries occupied by our subsidiaries that is owned or leased. We also have approximately 140,000 square feet of international office facility square footage in Canada, Western Europe, Australia, Brazil, India, China and Mexico. In Australia, we own three retail stores with approximately 25,000 square feet of space.

We own substantially all tooling and machinery (including heavy presses, conventional and computer-controlled welding facilities for steel and aluminum, assembly lines and paint lines) used in the manufacture of our products. We make ongoing capital investments in our facilities. These investments have increased production capacity for our products. We believe our current manufacturing and distribution facilities are adequate in size and suitable for our present manufacturing and distribution needs. However, we expect a significant amount of capital expenditures in 2015, which will expand our current manufacturing facilities in anticipation of the capacity and capability requirements of expected future growth. In January 2015, we announced plans to build a new production facility in Huntsville, Alabama to provide additional capacity and flexibility. The 600,000 square-foot facility will focus on ORV production. We will break ground on the facility in the first quarter of 2015 with completion expected in the first half of 2016.

Item 3. Legal Proceedings

We are involved in a number of other legal proceedings incidental to our business, none of which are expected to have a material effect on the financial results of our business.

Item 4. Mine Safety Disclosures

Not applicable.

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PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

The information under the caption “Other Investor Information” appearing on the inside back cover of the Company’s 2014 Annual Report is incorporated herein by reference. On February 18, 2015, the last reported sale price for shares of our common stock on the New York Stock Exchange was $155.63 per share.

STOCK PERFORMANCE GRAPH

The graph below compares the five-year cumulative total return to shareholders (stock price appreciation plus reinvested dividends) for the Company’s common stock with the comparable cumulative return of two indexes: S&P Midcap 400 Index and Morningstar’s Recreational Vehicles Industry Group Index. The graph assumes the investment of $100 at the close on December 31, 2009 in common stock of the Company and in each of the indexes, and the reinvestment of all dividends. Points on the graph represent the performance as of the last business day of each of the years indicated.

Assumes $100 Invested at the close on December 31, 2009

Assumes Dividend Reinvestment

Fiscal Year Ended December 31, 2014

	2009		2010		2011		2012		2013		2014
Polaris Industries Inc.	$	100.00	$	183.78	$	268.42	$	411.47	$	723.73	$	761.88
S&P Midcap 400 Index	100.00		126.64		124.45		146.70		195.84		214.97
Recreational Vehicles Industry Group Index—Morningstar Group	100.00		136.37		149.24		205.27		318.26		313.83

Comparison of 5-Year Cumulative Total Return Among Polaris Industries Inc., S&P Midcap 400 Index and Recreational Vehicles Index

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The table below sets forth the information with respect to purchases made by or on behalf of Polaris of its own stock during the fourth quarter of the fiscal year ended December 31, 2014.

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, 2014	1,000	$	148.46	1,000	1,573,000
November 1–30, 2014	—	—		—	1,573,000
December 1–31, 2014	523,000	148.64		523,000	1,050,000
Total	524,000	$	148.64	524,000	1,050,000

(1) The Board of Directors previously authorized a share repurchase program to repurchase up to an aggregate of 75.0 million shares of the Company’s common stock (the “Program”). Of that total, 73.9 million shares have been repurchased cumulatively from 1996 through December 31, 2014. This Program does not have an expiration date.

On January 29, 2015, the Board of Directors approved an increase in the Company’s common stock repurchase authorization by 4.0 million shares. The additional share repurchase authorization, together with the 1.1 million shares remaining available for repurchase under the prior authorization, represents approximately eight percent of the shares of Polaris common stock currently outstanding.

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Item 6. Selected Financial Data

The following table presents our selected financial data. The table should be read in conjunction with Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K. All periods presented reflect the classification of the marine products division’s financial results, including the loss from discontinued operations and the loss on disposal of the division, as discontinued operations. Per share data has been adjusted to give effect of all stock splits through 2014.

Selected Financial Data

	For the Years Ended December 31,
(Dollars in millions, except per-share data)	2014			2013			2012			2011			2010
Statement of Operations Data
Sales Data:
Total sales	$	4,479.6		$	3,777.1		$	3,209.8		$	2,656.9		$	1,991.1
Percent change from prior year	19		%	18		%	21		%	33		%	27		%
Sales components:
Off-Road Vehicles	65		%	67		%	69		%	69		%	69		%
Snowmobiles	7		%	8		%	9		%	11		%	10		%
Motorcycles	8		%	6		%	6		%	5		%	4		%
Small Vehicles	3		%	3		%	2		%	—		%	—		%
Parts, Garments and Accessories	17		%	16		%	14		%	15		%	17		%
Gross Profit Data:
Total gross profit	$	1,319.2		$	1,120.9		$	925.3		$	740.6		$	530.2
Percent of sales	29.4		%	29.7		%	28.8		%	27.9		%	26.6		%
Operating Expense Data:
Total operating expenses	$	666.2		$	588.9		$	480.8		$	414.7		$	326.3
Percent of sales	14.9		%	15.6		%	15.0		%	15.6		%	16.4		%
Operating Income Data:
Total operating income	$	714.7		$	577.9		$	478.4		$	349.9		$	220.7
Percent of sales	16.0		%	15.3		%	14.9		%	13.2		%	11.1		%
Net Income Data:
Net income from continuing operations	$	454.0		$	381.1		$	312.3		$	227.6		$	147.1
Percent of sales	10.1		%	10.1		%	9.7		%	8.6		%	7.4		%
Diluted net income per share from continuing operations	$	6.65		$	5.40		$	4.40		$	3.20		$	2.14
Net income	$	454.0		$	377.3		$	312.3		$	227.6		$	147.1
Diluted net income per share	$	6.65		$	5.35		$	4.40		$	3.20		$	2.14
Cash Flow Data:
Cash flow provided by continuing operations	$	529.3		$	499.2		$	416.1		$	302.5		$	297.9
Purchase of property and equipment	205.1			251.4			103.1			84.5			55.7
Repurchase and retirement of common stock	81.8			530.0			127.5			132.4			27.5
Cash dividends to shareholders	126.9			113.7			101.5			61.6			53.0
Cash dividends per share	$	1.92		$	1.68		$	1.48		$	0.90		$	0.80
Balance Sheet Data (at end of year):
Cash and cash equivalents	$	137.6		$	92.2		$	417.0		$	325.3		$	393.9
Current assets	1,096.6			865.7			1,017.8			875.0			808.1
Total assets	2,074.9			1,685.5			1,488.5			1,228.0			1,061.6
Current liabilities	850.8			748.1			631.0			586.3			584.2
Long-term debt and capital lease obligations	223.6			284.3			104.3			104.6			100.0
Shareholders’ equity	861.3			535.6			690.5			500.1			371.0

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion pertains to the results of operations and financial position of the Company for each of the three years in the period ended December 31, 2014, and should be read in conjunction with the Consolidated Financial Statements and the Notes thereto included elsewhere in this report.

Overview

In 2014, we had record sales and net income, with our fifth straight year of double digit growth in both sales and net income. This growth is fueled by award-winning innovative new products leading to continued market share leadership in side-by-side vehicles and ATVs. In 2014, we also experienced growth in our snowmobiles, motorcycles, international and small vehicles businesses. The overall North American powersports industry continued its positive trend with mid-single digit percentage growth in 2014. Our North America retail sales to consumers increased 12 percent in 2014, helping to drive total full year Company sales up 19 percent to a record $4.48 billion. Despite the global economy remaining difficult, our international sales increased 16 percent due to continued market share growth in all product categories and strong results by our recent European acquisitions.

Full year earnings reflect the success of our ongoing product innovation, as 19 percent sales growth, partially offset by a decrease in the gross profit percentage of 23 basis points, drove net income from continuing operations up 19 percent to $454.0 million, with diluted earnings per share from continuing operations increasing 23 percent to a record $6.65 per share. These increases came while we continued to invest in numerous longer-term diversification and growth opportunities.

In 2014, we began to receive benefits from prior investments while continuing to invest in both product development and strategic initiatives. We introduced over twenty new ORV models in 2014, including the all-new RZR^® XP 900 trail and RZR XP4 900 trail, several new value models, and two models in a newly defined category of single-seat, ride-in ATVs, the Polaris ACE™. We also introduced nine new snowmobiles in the all-new AXYS™ chassis platform. In our motorcycles line, we added two new models to the iconic Indian Motorcycle^® brand—the 2015 Roadmaster^®, a luxury touring motorcycle, and the Scout™, Polaris' first mid-sized motorcycle. Additionally, we introduced the revolutionary all-new three-wheel motorcycle, Slingshot^®, our first roadster motorcycle. We also acquired Kolpin and Pro Armor, adding two industry leading accessory companies to Polaris' PG&A activities. Operationally, we expanded production capacity and capabilities at all manufacturing facilities in the U.S. and Mexico, and completed the construction of the manufacturing plant in Opole, Poland, our first manufacturing operation outside of North America, where production began in late 2014.

In January 2015, we announced plans to build a new production facility in Huntsville, Alabama to provide additional capacity and flexibility. The 600,000 square-foot facility will focus on off-road vehicle production. We will break ground on the facility in the first quarter of 2015 with completion expected in the first half of 2016.

On January 29, 2015, we announced that our Board of Directors approved a 10 percent increase in the regular quarterly cash dividend to $0.53 per share for the first quarter of 2015, representing the 20th consecutive year of increased dividends to shareholders. This increase reflects the continued momentum and potential of our business and the strength of our balance sheet.

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Results of Operations

Sales:

Sales were $4,479.6 million in 2014, a 19 percent increase from $3,777.1 million in 2013. The following table is an analysis of the percentage change in total Company sales for 2014 compared to 2013 and 2013 compared to 2012:

	Percent change in total Company sales compared to the prior year
	2014		2013
Volume	14	%	12	%
Product mix and price	6		7
Currency	(1	)	(1	)
	19	%	18	%

The volume increases in 2014 and 2013 are primarily the result of shipping more ORVs, snowmobiles, motorcycles, small vehicles and related PG&A items to dealers given increased consumer retail demand for our products worldwide. Product mix and price contributed six percent and seven percent to the growth for 2014 and 2013, respectively, primarily due to the positive benefit of a greater number of higher priced ORVs sold to dealers relative to our other businesses. The impact from currency rates on our Canadian and other foreign subsidiaries' sales, when translated to U.S. dollars, decreased sales by one percent in both 2014 and 2013 compared to the respective prior years.

Our components of sales were as follows:

	For the Years Ended December 31,
($ in millions)	2014		Percent of Total Sales		2013		Percent of Total Sales		Percent Change 2014 vs. 2013		2012		Percent of Total Sales		Percent Change 2013 vs. 2012
Off-Road Vehicles	$	2,909.0	65	%	$	2,521.5	67	%	15	%	$	2,225.8	69	%	13	%
Snowmobiles	322.4		7	%	301.7		8	%	7	%	283.0		9	%	7	%
Motorcycles	348.7		8	%	219.8		6	%	59	%	195.8		6	%	12	%
Small Vehicles	157.4		3	%	122.8		3	%	28	%	44.4		2	%	177	%
PG&A	742.1		17	%	611.3		16	%	21	%	460.8		14	%	33	%
Total Sales	$	4,479.6	100	%	$	3,777.1	100	%	19	%	$	3,209.8	100	%	18	%

ORV sales of $2,909.0 million in 2014, which include core ATV, RANGER and RZR side-by-side vehicles, and the Company's new ACE category, increased 15 percent from 2013. This increase reflects continued market share gains for both ATVs and side-by-side vehicles driven by strong consumer enthusiasm for our ORV offerings, including an expanded line-up of innovative new models and the introduction of the new ACE category. Polaris’ North American ORV unit retail sales to consumers increased low-double digits percent for 2014 compared to 2013, with ATV unit retail sales growing mid-single digits percent and side-by-side vehicle unit retail sales increasing double-digits percent over the prior year. The Company's new ACE category, introduced early in 2014, accelerated its retail sales sequentially throughout 2014. North American dealer inventories of ORVs increased high-teens percent from 2013, in support of dealer stocking levels for premium and value segments for ATV RFM and new ACE categories. ORV sales outside of North America increased mid-teens percent in 2014 compared to 2013 resulting from market share gains. For 2014, the average ORV per unit sales price increased four percent over 2013's per unit sales price, primarily as a result of the increased sales of higher priced side-by-side vehicle models.

ORV sales of $2,521.5 million in 2013, which include core ATV and RANGER and RZR side-by-side vehicles, increased 13 percent from 2012. This increase reflects continued market share gains for both ATVs and side-by-side vehicles driven by strong consumer enthusiasm for our ORV offerings, including an expanded line-up of innovative new ATVs and side-by-side vehicles introduced in the 2013 third and fourth quarters. Polaris’ North American ORV unit retail sales to consumers increased high-single digits percent for 2013 compared to 2012, with ATV unit retail sales growing mid-single digits percent and side-by-side vehicle unit retail sales increasing more than ten percent over the prior year. North American dealer inventories of ORVs increased mid-teens percent from 2012, in support of continued strong retail demand for side-by-side vehicles and incremental new market segments. ORV sales outside of North America increased

25

nine percent in 2013 compared to 2012 resulting in market share gains. For 2013, the average ORV per unit sales price increased seven percent over 2012's per unit sales price, primarily as a result of the increased sales of higher priced side-by-side vehicle models.

Snowmobile sales increased seven percent to $322.4 million for 2014 compared to 2013. This increase is primarily due to the early snowfall and colder weather in North America and the success of the new AXYS chassis platform models introduced in 2014. Retail sales to consumers for the 2014-2015 season-to-date period through December 31, 2014, increased high-teens percent. Sales of snowmobiles to customers outside of North America, principally within the Scandinavian region and Russia, decreased 28 percent in 2014 as compared to 2013 due primarily to economic weakness in the region. The average unit sales price in 2014 was approximately flat when compared to 2013.

Snowmobile sales increased seven percent to $301.7 million for 2013 compared to 2012. This increase is primarily due to lower dealer inventory coming out of the 2012-2013 snowmobile season and success of the model year 2014 new product introductions. Retail sales to consumers for the 2013-2014 season-to-date period through December 31, 2013, increased nearly ten percent. Sales of snowmobiles to customers outside of North America, principally within the Scandinavian region and Russia, increased 18 percent in 2013 as compared to 2012. The average unit sales price in 2013 decreased two percent when compared to 2012, resulting primarily from increased sales of our value-priced snowmobiles.

Sales of Motorcycles, which is comprised of Victory and Indian motorcycles, and the all-new roadster, Slingshot, increased 59 percent to $348.7 million for 2014 compared to 2013. The increase in 2014 sales is due to the continued high demand for Indian motorcycles including the new 2015 Roadmaster and the Company's first mid-sized motorcycle, Scout, and initial shipments of the Slingshot. North American industry heavyweight cruiser and touring motorcycle retail sales (which excludes Slingshot) increased low-single digits percent in 2014 compared to 2013. Over the same period, Polaris North American unit retail sales to consumers increased almost 40 percent, driven primarily by continued strong retail sales for Indian motorcycles and initial retail sales of Slingshot. North American Polaris motorcycle dealer inventory increased mid-teens digits percent in 2014 versus 2013 levels primarily due to stocking of the Indian motorcycles and Slingshot. Sales of motorcycles to customers outside of North America increased over 70 percent in 2014 compared to 2013. The average per unit sales price for the Motorcycles division in 2014 increased nine percent compared to 2013 due to the increased sales of higher priced Indian motorcycles and initial sales of Slingshot.

Sales of Motorcycles, which was comprised of Victory and Indian motorcycles in 2013, increased 12 percent to $219.8 million for 2013 compared to 2012. The increase in 2013 sales is due to the initial shipments of the new model year 2014 Indian motorcycles. North American industry heavyweight cruiser and touring motorcycle retail sales increased mid-single digits percent in 2013 compared to 2012. Over the same period, Polaris North American unit retail sales to consumers increased over 20 percent, driven by an unprecedented number of new product introductions in 2013, which includes three new Indian Motorcycle models. North American Polaris motorcycle dealer inventory increased high-single digits percent in 2013 versus 2012 levels due to stocking of the new Indian motorcycles. Sales of motorcycles to customers outside of North America increased three percent in 2013 compared to 2012. The average per unit sales price for the Motorcycles division in 2013 increased five percent compared to 2012 due to the increased sales of higher priced Indian motorcycles.

Sales of Small Vehicles, which is comprised of Aixam, GEM and Goupil vehicles, increased 28 percent to $157.4 million for 2014 compared to 2013. The increase in sales over the comparable prior year is due to the inclusion of Aixam in our consolidated financial statements for the full year in 2014, versus eight months in 2013, since it was acquired in April 2013. Also, GEM experienced an increase in sales during 2014 compared to 2013.

Small Vehicles sales of $122.8 million in 2013 represents an increase of 177 percent compared to 2012. The increase in sales over the comparable prior year periods is primarily due to the inclusion of Aixam in our consolidated financial statements since it was acquired in April 2013. Also, both GEM and Goupil experienced an increase in sales during 2013 compared to 2012.

PG&A sales increased 21 percent to $742.1 million for 2014 compared to 2013. The sales increase in 2014 was driven by double digit percent increases in ORV, Motorcycles, and Small Vehicles related PG&A, which was primarily driven by the addition of over 400 new model year 2015 accessories, including additions to the family of Lock & Ride® attachments that add comfort, style and utility to ORVs and motorcycles. PG&A sales also increased due to the inclusion of Kolpin and Pro Armor in our consolidated financial statements, which were both acquired in 2014. Sales of PG&A to customers outside of North America increased 13 percent during 2014 compared to 2013.

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PG&A sales increased 33 percent to $611.3 million for 2013 compared to 2012. The sales increase in 2013 was driven by double digit percent increases in all product lines and categories, which was primarily driven by the addition of over 300 new model year 2014 accessories, including additions to the family of Lock & Ride attachments that add comfort, style and utility to ORVs and motorcycles. Sales of PG&A to customers outside of North America increased 26 percent during 2013 compared to 2012. PG&A sales also increased over the prior year periods due to the inclusion of Klim in our consolidated financial statements since it was acquired in December 2012, and Aixam related PG&A since it was acquired in April 2013.

Sales by geographic region were as follows:

	For the Years Ended December 31,
($ in millions)	2014		Percent of Total Sales		2013		Percent of Total Sales		Percent Change 2014 vs. 2013		2012		Percent of Total Sales		Percent Change 2013 vs. 2012
United States	$	3,339.9	75	%	$	2,721.3	72	%	23	%	$	2,311.0	72	%	18	%
Canada	454.6		10	%	463.3		12	%	(2	)%	438.2		14	%	6	%
Other foreign countries	685.1		15	%	592.5		16	%	16	%	460.6		14	%	29	%
Total sales	$	4,479.6	100	%	$	3,777.1	100	%	19	%	$	3,209.8	100	%	18	%

Significant regional trends were as follows:

United States:

Sales in the United States for 2014 increased 23 percent compared to 2013, primarily resulting from higher shipments in all product lines and related PG&A, improved pricing and more sales of higher priced side-by-side vehicles. The United States represented 75 percent, 72 percent and 72 percent of total company sales in 2014, 2013 and 2012, respectively. Sales in the United States for 2013 increased 18 percent compared to 2012, primarily resulting from higher shipments in all product lines and related PG&A, improved pricing and more sales of higher priced side-by-side vehicles.

Canada:

Canadian sales decreased two percent in 2014 compared to 2013. Negative currency rate movements was the primary contributor for the decrease in 2014, which had an unfavorable seven percent impact on sales for 2014 compared to 2013, partially offset by sales of higher priced side-by-side vehicles and motorcycles. Sales in Canada represented 10 percent, 12 percent and 14 percent of total company sales in 2014, 2013, and 2012, respectively. Canadian sales increased 6 percent in 2013 compared to 2012 due to increased shipments of ORVs and snowmobiles, partially offset by currency rate movements, which had an unfavorable three percent impact on sales for 2013 compared to 2012.

Other Foreign Countries:

Sales in other foreign countries, primarily in Europe, increased 16 percent for 2014 compared to 2013. The increase was primarily driven by increased sales of side-by-side vehicles and motorcycles, as well as the acquisition of Aixam in April 2013. This increase was partially offset by currency rate movements, which had an unfavorable two percent impact on sales for 2014 compared to 2013. Sales in other foreign countries, primarily in Europe, increased 29 percent for 2013 compared to 2012. The increase was primarily driven by the acquisition of Aixam in April 2013, along with increased sales of side-by-side vehicles and PG&A. This increase was partially offset by currency rate movements, which had an unfavorable one percent impact on sales for 2013 compared to 2012.

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Cost of Sales:

The following table reflects our cost of sales in dollars and as a percentage of sales:

	For the Years Ended December 31,
($ in millions)	2014			Percent of Total Cost of Sales		2013			Percent of Total Cost of Sales		Change 2014 vs. 2013		2012			Percent of Total Cost of Sales		Change 2013 vs. 2012
Purchased materials and services	$	2,757.6		87	%	$	2,336.1		88	%	18	%	$	2,008.9		88	%	16	%
Labor and benefits	244.1			8	%	198.7			8	%	23	%	177.7			8	%	12	%
Depreciation and amortization	96.9			3	%	64.5			2	%	50	%	51.8			2	%	25	%
Warranty costs	61.9			2	%	56.9			2	%	9	%	46.1			2	%	23	%
Total cost of sales	$	3,160.5		100	%	$	2,656.2		100	%	19	%	$	2,284.5		100	%	16	%
Percentage of sales	70.6		%			70.3		%			+23 basis		71.2		%			-85 basis
											points							points

For 2014, cost of sales increased 19 percent to $3,160.5 million compared to $2,656.2 million in 2013. The increase in cost of sales in 2014 resulted primarily from the effect of a 14 percent increase in sales volume on purchased materials and services and labor and benefits. Additionally, depreciation and amortization increased due to increased capital expenditures to increase production capacity and capabilities.

For 2013, cost of sales increased 16 percent to $2,656.2 million compared to $2,284.5 million in 2012. The increase in cost of sales in 2013 resulted primarily from the effect of a 12 percent increase in sales volume on purchased materials and services and labor and benefits, and also includes an unfavorable resolution regarding a contract dispute resulting in an approximate $10.0 million charge for additional royalties in 2013.

Gross Profit:

The following table reflects our gross profit in dollars and as a percentage of sales:

	For the Years Ended December 31,
($ in millions)	2014			2013			Change 2014 vs. 2013		2012			Change 2013 vs. 2012
Gross profit dollars	$	1,319.2		$	1,120.9		18	%	$	925.3		21	%
Percentage of sales	29.4		%	29.7		%	-23 basis points		28.8		%	+85 basis points

Gross profit, as a percentage of sales, was 29.4 percent for 2014, a decrease of 23 basis points from 2013. Gross profit dollars increased 18 percent to $1,319.2 million in 2014 compared to 2013. The increase in gross profit dollars resulted from higher selling prices, mix and product cost reduction efforts partially offset by the negative impact of currency movements. The decrease in gross profit percentage resulted primarily from unfavorable foreign currency fluctuations, new plant start-up costs and higher depreciation and amortization, partially offset by product cost reduction and higher selling prices.

Gross profit, as a percentage of sales, was 29.7 percent for 2013, an increase of 85 basis points from 2012. Gross profit dollars increased 21 percent to $1,120.9 million in 2013 compared to 2012. The increases in gross profit dollars and the increase in gross profit margin percentage resulted primarily from continued product cost reduction, production efficiencies on increased volumes and higher selling prices, partially offset by unfavorable foreign currency fluctuations, higher promotional costs and royalty expenses as a result of a contract dispute resolution.

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Operating Expenses:

The following table reflects our operating expenses in dollars and as a percentage of sales:

	For the Years Ended December 31,
($ in millions)	2014			2013			Change 2014 vs. 2013		2012			Change 2013 vs. 2012
Selling and marketing	$	314.5		$	270.3		16	%	$	210.4		28	%
Research and development	148.5			139.2			7	%	127.3			9	%
General and administrative	203.2			179.4			13	%	143.1			25	%
Total operating expenses	$	666.2		$	588.9		13	%	$	480.8		22	%
Percentage of sales	14.9		%	15.6		%	-72 basis points		15.0		%	+61 basis points

Operating expenses for 2014 increased 13 percent to $666.2 million, compared to $588.9 million in 2013. Operating expenses as a percentage of sales decreased 72 basis points in 2014 to 14.9 percent compared to 15.6 percent in 2013. Operating expenses in absolute dollars increased in 2014 primarily due to higher selling, marketing and advertising expenses related to the launch of new model year 2015 products, including Slingshot, and the continued roll-out of Indian motorcycles, as well as increased general and administrative expenses, which includes infrastructure investments being made to support global growth initiatives. Operating expenses as a percent of sales declined primarily due to lower long-term incentive compensation expenses, partially offset by higher marketing and advertising expenses related to the launch of various new model year 2015 products.

Operating expenses for 2013 increased 22 percent to $588.9 million, compared to $480.8 million in 2012. Operating expenses as a percentage of sales increased 61 basis points in 2013 to 15.6 percent compared to 15.0 percent in 2012. Operating expenses in absolute dollars and as a percentage of sales increased in 2013 primarily due to higher selling, marketing and advertising expenses related, in part, to the re-launch of Indian Motorcycle, increased general and administrative expenses, which includes infrastructure investments being made to support global growth initiatives and higher accrued incentive compensation due to a higher stock price. Operating expenses in absolute dollars also increased due to the inclusion of Klim and Aixam operating expenses in our consolidated financial statements since these companies were acquired in December 2012 and April 2013, respectively.

Income from Financial Services:

The following table reflects our income from financial services:

	For the Years Ended December 31,
($ in millions)	2014			2013			Change 2014 vs. 2013		2012			Change 2013 vs. 2012
Income from Polaris Acceptance joint venture	$	30.5		$	20.2		51	%	$	15.7		29	%
Income from retail credit agreements	27.6			22.5			23	%	15.3			47	%
Income from other financial services activities	3.6			3.2			13	%	2.9			10	%
Total income from financial services	$	61.7		$	45.9		34	%	$	33.9		35	%
Percentage of sales	1.4		%	1.2		%	+16 basis points		1.1		%	+16 basis points

Income from financial services increased 34 percent to $61.7 million in 2014 compared to $45.9 million in 2013. The increase in 2014 is primarily due to a 16 percent increase in retail credit contract volume and increased profitability generated from the retail credit portfolios with Sheffield, Synchrony Bank, Capital One and FreedomRoad, and higher income from dealer inventory financing through Polaris Acceptance, due to increased profitability and a 23 percent increase in financed receivables as of December 31, 2014.

Income from financial services increased 35 percent to $45.9 million in 2013 compared to $33.9 million in 2012. The increase in 2013 is primarily due to a nine percent increase in retail credit contract volume and increased profitability generated from the retail credit portfolios with Sheffield, GE and Capital One, and higher income from dealer inventory financing through Polaris Acceptance.

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Remainder of the Income Statement:

	For the Years Ended December 31,
($ in millions except per share data)	2014		2013			Change 2014 vs. 2013		2012			Change 2013 vs. 2012
Interest expense	$	11.2	$	6.2		81	%	$	5.9		5	%
Equity in loss of other affiliates	$	4.1	$	2.4		71	%	$	0.2		NM
Other expense (income), net	$	0.0	$	(5.1	)	NM		$	(7.5	)	(32	)%
Income before income taxes	$	699.3	$	574.4		22	%	$	479.8		20	%
Provision for income taxes	$	245.3	$	193.4		27	%	$	167.5		15	%
Percentage of income before income taxes	35.1%		33.7%			+141 basis points		34.9%			-125 basis points
Net income from continuing operations	$	454.0	$	381.1		19	%	$	312.3		22	%
Net income	$	454.0	$	377.3		20	%	$	312.3		21	%
Diluted net income per share:
Continuing operations	$	6.65	$	5.40		23	%	$	4.40		23	%
Diluted net income	$	6.65	$	5.35		24	%	$	4.40		22	%
Weighted average diluted shares outstanding	68.2		70.5			(3	)%	71.0			(1	)%
NM = not meaningful

Interest Expense.The increase in 2014 compared to 2013 is primarily due to increased debt levels through borrowings on our existing revolving credit facility and the additional borrowing of $100.0 million through our amended Master Note Purchase Agreement in December 2013. The increase in 2013 compared to 2012, is primarily related to the increased debt levels through borrowings in the 2013 fourth quarter on our existing revolving credit facility and additional borrowings of $100.0 million through our amended Master Note Purchases Agreement in November 2013 used to partially fund the $497.5 million buyback of outstanding Polaris shares held by Fuji.

Equity in loss of other affiliates. Increased losses at Eicher-Polaris Private Limited (EPPL) were the result of an increase in the joint venture's pre-production activities. We record our proportionate 50 percent share of EPPL gains and losses.

Other expense (income),net. The change primarily relates to foreign currency exchange rate movements and the corresponding effects on foreign currency transactions and balance sheet positions related to our foreign subsidiaries from period to period.

Provision for income taxes. The higher income tax rate for 2014 was primarily due to lower income generated from our international operations which generally have lower income tax rates. For 2014 and 2013, the income tax provision was positively impacted by the United States Congress extending the research and development income tax credit. However, in 2013 the research and development credit extension was retroactive to 2012, resulting in two years of benefit in 2013. In addition, we also had a favorable impact in 2013 from the release of certain income tax reserves due to favorable conclusions of federal income tax audits. The favorable impact from these items totaled $8.2 million and was recorded as a reduction to income tax expense in the first quarter of 2013.

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Net income.The 2013 loss from discontinued operations is a result of a 2013 unfavorable jury verdict in a previously disclosed lawsuit involving a collision between a 2001 Polaris Virage personal watercraft and a boat. The jury awarded approximately $21.0 million in damages of which our liability was $10.0 million. We reported a loss from discontinued operations, net of tax, of $3.8 million in 2013 for an additional provision for our portion of the jury award and legal fees. The liability was fully paid by the end of 2013. There was no income or loss from discontinued operations in 2014 or 2012. In September 2004, we announced our decision to cease manufacturing marine products. Since then, any material financial results of that division have been recorded in discontinued operations. No additional charges are expected from this lawsuit.

Weighted average shares outstanding. The decrease in the weighted average diluted shares outstanding is primarily due to the Company's November 2013 purchase of 3.96 million shares of Polaris stock previously held by FHI Heavy Industries Ltd ("Fuji") under a Share Repurchase Agreement with Fuji. This buyback more than offset the issuance of shares under employee compensation plans and resulted in a decrease to the 2014, and to a lesser extent due to the timing of the transaction, the 2013 weighted average diluted shares outstanding.

Critical Accounting Policies

The significant accounting policies that management believes are the most critical to aid in fully understanding and evaluating our reported financial results include the following: revenue recognition, sales promotions and incentives, dealer holdback programs, share-based employee compensation, product warranties and product liability.

Revenue recognition. Revenues are recognized at the time of shipment to the dealer, distributor or other customers. Historically, product returns, whether in the normal course of business or resulting from repurchases made under the floorplan financing program, have not been material. However, we have agreed to repurchase products repossessed by the finance companies up to certain limits. Our financial exposure is limited to the difference between the amount paid to the finance companies and the amount received on the resale of the repossessed product. No material losses have been incurred under these agreements. We have not historically recorded any significant sales return allowances because we have not been required to repurchase a significant number of units. However, an adverse change in retail sales could cause this situation to change. Polaris sponsors certain sales incentive programs and accrues liabilities for estimated sales promotion expenses and estimated holdback amounts that are recognized as reductions to sales when products are sold to the dealer or distributor customer.

Sales promotions and incentives. We provide for estimated sales promotion and incentive expenses, which are recognized as a reduction to sales at the time of sale to the dealer or distributor. Examples of sales promotion and incentive programs include dealer and consumer rebates, volume incentives, retail financing programs and sales associate incentives. Sales promotion and incentive expenses are estimated based on current programs and historical rates for each product line. We record these amounts as a liability in the consolidated balance sheet until they are ultimately paid. At December 31, 2014 and 2013, accrued sales promotions and incentives were $138.6 million and $123.1 million, respectively, resulting primarily from an increase in the volume of units sold and an increase in the level of dealer inventories in 2014. Actual results may differ from these estimates if market conditions dictate the need to enhance or reduce sales promotion and incentive programs or if the customer usage rate varies from historical trends. Adjustments to sales promotions and incentives accruals are made from time to time as actual usage becomes known in order to properly estimate the amounts necessary to generate consumer demand based on market conditions as of the balance sheet date. Historically, actual sales promotion and incentive expenses have been within our expectations and differences have not been material.

Dealer holdback programs. Dealer holdback represents a portion of the invoiced sales price that is expected to be subsequently returned to the dealer or distributor as a sales incentive upon the ultimate retail sale of the product. Holdback amounts reduce the ultimate net price of the products purchased by our dealers or distributors and, therefore, reduce the amount of sales we recognize at the time of shipment. The portion of the invoiced sales price estimated as the holdback is recognized as “dealer holdback” liability on our balance sheet until paid or forfeited. The minimal holdback adjustments in the estimated holdback liability due to forfeitures are recognized in net sales. Payments are made to dealers or distributors at various times during the year subject to previously established criteria. Polaris recorded accrued liabilities of $120.1 million and $100.6 million for dealer holdback programs in the consolidated balance sheets as of December 31, 2014 and 2013, respectively.

Share-based employee compensation. We recognize in the financial statements the grant-date fair value of stock options and other equity-based compensation issued to employees. Determining the appropriate fair-value model and calculating

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the fair value of share-based awards at the date of grant requires judgment. The Company utilizes the Black-Scholes option pricing model to estimate the fair value of employee stock options. Option pricing models, including the Black-Scholes model, also require the use of input assumptions, including expected volatility, expected life, expected dividend rate, and expected risk-free rate of return. The Company utilizes historical volatility as it believes this is reflective of market conditions. The expected life of the awards is based on historical exercise patterns. The risk-free interest rate assumption is based on observed interest rates appropriate for the terms of awards. The dividend yield assumption is based on our history of dividend payouts. We develop an estimate of the number of share-based awards that will be forfeited due to employee turnover. Changes in the estimated forfeiture rate can have a significant effect on reported share-based compensation, as the effect of adjusting the rate for all expense amortization is recognized in the period the forfeiture estimate is changed. If the actual forfeiture rate is higher or lower than the estimated forfeiture rate, then an adjustment is made to increase or decrease the estimated forfeiture rate, which will result in a decrease or increase to the expense recognized in the financial statements. If forfeiture adjustments are made, they would affect our gross margin and operating expenses. We estimate the likelihood and the rate of achievement for performance share-based awards, specifically long-term compensation grants of performance-based restricted stock awards. Changes in the estimated rate of achievement can have a significant effect on reported share-based compensation expenses as the effect of a change in the estimated achievement level is recognized in the period that the likelihood factor changes. If adjustments in the estimated rate of achievement are made, they would be reflected in our gross margin and operating expenses. At the end of 2014, if all long-term incentive program performance based awards were expected to achieve the maximum payout, we would have recorded an additional $7.5 million of expense in 2014. Fluctuations in our stock price can have a significant effect on reported share-based compensation expenses for liability-based awards. The impact from fluctuations in our stock price is recognized in the period of the change, and is reflected in our gross margin and operating expenses. At December 31, 2014, the accrual for liability-based awards outstanding was $15.2 million, and is included in accrued compensation in the consolidated balance sheets.

Product warranties. We provide a limited warranty for ORVs for a period of six months, for a period of one year for our snowmobiles, for a period of one or two years for our motorcycles depending on brand and model year, and two years for SVs. We provide longer warranties in certain geographical markets as determined by local regulations and market conditions and may provide longer warranties related to certain promotional programs. Our standard warranties require us or our dealers to repair or replace defective products during such warranty periods at no cost to the consumers. The warranty reserve is established at the time of sale to the dealer or distributor based on management’s best estimate using historical rates and trends. We record these amounts as a liability in the consolidated balance sheet until they are ultimately paid. At December 31, 2014 and 2013, the accrued warranty liability was $53.1 million and $52.8 million, respectively. Adjustments to the warranty reserve are made from time to time based on actual claims experience in order to properly estimate the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. While management believes that the warranty reserve is adequate and that the judgment applied is appropriate, such amounts estimated to be due and payable could differ materially from what will ultimately transpire in the future.

Product liability. We are subject to product liability claims in the normal course of business. In late 2012, we purchased excess insurance coverage for catastrophic product liability claims for incidents occurring after the policy date. We self-insure product liability claims up to the purchased catastrophic insurance coverage. The estimated costs resulting from any uninsured losses are charged to operating expenses when it is probable a loss has been incurred and the amount of the loss is reasonably determinable. We utilize historical trends and actuarial analysis tools, along with an analysis of current claims, to assist in determining the appropriate loss reserve levels. At December 31, 2014 and 2013, we had accruals of $17.3 million and $17.1 million, respectively, for the probable payment of pending claims related to continuing operations product liability litigation associated with our products. These accruals are included in other accrued expenses in the consolidated balance sheets. While management believes the product liability reserves are adequate, adverse determination of material product liability claims made against us could have a material adverse effect on our financial condition.

New Accounting Pronouncements

See Item 8 of Part II, “Financial Statements and Supplementary Data—Note 1—Organization and Significant Accounting Policies—New Accounting Pronouncements.”

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Liquidity and Capital Resources

Our primary source of funds has been cash provided by operating activities. Our primary uses of funds have been for acquisitions, repurchase and retirement of common stock, capital investment, new product development and cash dividends to shareholders.

The following table summarizes the cash flows from operating, investing and financing activities for the years ended December 31, 2014 and 2013:

($ in millions)	For the Years Ended December 31,
	2014			2013			Change
Total cash provided by (used for):
Operating activities	$	529.3		$	492.2		$	37.1
Investing activities	(246.8		)	(406.7		)	159.9
Financing activities	(222.6		)	(409.0		)	186.4
Impact of currency exchange rates on cash balances	(14.5		)	(1.3		)	(13.2		)
Increase (decrease) in cash and cash equivalents	$	45.4		$	(324.8	)	$	370.2

Operating Activities:

Net cash provided by operating activities totaled $529.3 million and $492.2 million in 2014 and 2013, respectively. The $37.1 million increase in net cash provided by operating activities in 2014 is primarily the result of higher net income compared to 2013, which includes a $35.4 million increase in depreciation and amortization, partially offset by a $44.5 million increase in deferred income taxes and a $15.8 million increase in net working capital. Changes in working capital (as reflected in our statements of cash flows) for the year ended 2014 was an increase of $15.6 million, compared to an increase of $0.2 million in 2013. This was primarily due to an increase in net cash used of $106.4 million related to higher inventory required to support the growth in the business, offset by an increase in net cash provided related to timing of payments made for accounts payable of $54.3 million and the timing of collections of trade receivables of $29.9 million.

Investing Activities:

Net cash used for investing activities was $246.8 million in 2014 compared to $406.7 million in 2013. The primary uses of cash in 2014 were the acquisitions of Kolpin and Pro Armor and capital expenditures for the purchase of property and equipment. In 2014, we made large capital expenditures related to the expansion of many of our North America locations, including our manufacturing facilities in Spirit Lake, Iowa; Milford, Iowa; Roseau, Minnesota; and Monterrey, Mexico, as well as the construction of our new manufacturing facility in Opole, Poland. We expect that capital expenditures for 2015 will be in excess of $250 million.

Financing Activities:

Net cash used for financing activities was $222.6 million in 2014 compared to $409.0 million in 2013. We paid cash dividends of $126.9 million and $113.7 million in 2014 and 2013, respectively. Total common stock repurchased in 2014 and 2013 totaled $81.8 million and $530.0 million, respectively. In November 2013, Polaris repurchased the 3.96 million Polaris shares held by Fuji for $497.5 million. The repurchase of the Polaris shares held by Fuji was partially funded through additional debt borrowings. In 2014, we had net repayments under our capital lease arrangements and debt arrangements of $82.1 million, compared to net borrowings of $179.2 million in 2013. Proceeds from the issuance of stock under employee plans were $31.3 million and $26.9 million in 2014 and 2013, respectively.

The seasonality of production and shipments cause working capital requirements to fluctuate during the year. We are party to an unsecured $350 million variable interest rate bank lending agreement that expires in January 2018. Interest is charged at rates based on LIBOR or "prime." At December 31, 2014, there were no borrowings under this arrangement.

In December 2010, we entered into a Master Note Purchase Agreement to issue $25.0 million of 3.81 percent unsecured Senior Notes due May 2018 and $75.0 million of 4.60 percent unsecured Senior Notes due May 2021 (collectively, the "Senior Notes"). The Senior Notes were issued in May 2011. In December 2013, the Company entered into a First Supplement to Master Note Purchase Agreement, under which the Company issued $100.0 million of 3.13 percent

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unsecured senior notes due December 2020. At December 31, 2014 and 2013, outstanding borrowings under the amended Master Note Purchase Agreement totaled $200.0 million for both periods.

At December 31, 2014 and 2013, we were in compliance with all debt covenants. Our debt to total capital ratio was 21 percent and 35 percent at December 31, 2014 and 2013, respectively.

The following table summarizes our significant future contractual obligations at December 31, 2014:

(In millions):	Total		<1 Year		1-3 Years		3-5 Years		>5 Years
Senior notes	$	200.0	—		—		$	25.0	$	175.0
Interest expense	44.4		$	7.6	$	15.1	13.6		8.1
Capital leases	38.3		3.9		6.2		4.6		23.6
Operating leases	22.5		9.6		8.4		3.1		1.4
Total	$	305.2	$	21.1	$	29.7	$	46.3	$	208.1

In the table above, we assumed our December 31, 2014, outstanding borrowings under the Senior Notes will be paid at their respective due dates. Additionally, at December 31, 2014, we had letters of credit outstanding of $24.9 million related to purchase obligations for raw materials. Not included in the above table is unrecognized tax benefits of $10.6 million and the estimated future payments of contingent purchase price related to acquisitions which have a fair value of $27.9 million at December 31, 2014, and are expected to be paid at various times in 2015 through 2017.

Our Board of Directors has authorized the cumulative repurchase of up to 75.0 million shares of our common stock through an authorized stock repurchase program. Of that total, approximately 73.9 million shares have been repurchased cumulatively from 1996 through December 31, 2014. In addition to this stock repurchase authorization, in 2013 the Polaris Board of Directors authorized the one-time repurchase of all the shares of Polaris stock owned by Fuji. On November 12, 2013, Polaris entered into and executed a Share Repurchase Agreement with Fuji pursuant to which Polaris purchased 3.96 million shares of Polaris stock held by Fuji. We repurchased a total of 0.6 million shares of our common stock for $81.8 million during 2014, which increased earnings per share by one cent. We have authorization from our Board of Directors to repurchase up to an additional 1.1 million shares of our common stock as of December 31, 2014. On January 29, 2015, the Board of Directors approved an increase in the Company’s common stock repurchase authorization by an additional 4.0 million shares. The repurchase of any or all such shares authorized remaining for repurchase will be governed by applicable SEC rules.

We have arrangements with certain finance companies (including Polaris Acceptance) to provide secured floor plan financing for our dealers. These arrangements provide liquidity by financing dealer purchases of our products without the use of our working capital. A majority of the worldwide sales of snowmobiles, ORVs, motorcycles and related PG&A are financed under similar arrangements whereby we receive payment within a few days of shipment of the product. The amount financed by worldwide dealers under these arrangements at December 31, 2014 and 2013, was approximately $1,337.2 million and $1,163.5 million, respectively. We participate in the cost of dealer financing up to certain limits. We have agreed to repurchase products repossessed by the finance companies up to an annual maximum of no more than 15 percent of the average month-end balances outstanding during the prior calendar year. Our financial exposure under these agreements is limited to the difference between the amounts unpaid by the dealer with respect to the repossessed product plus costs of repossession and the amount received on the resale of the repossessed product. No material losses have been incurred under these agreements. However, an adverse change in retail sales could cause this situation to change and thereby require us to repurchase repossessed units subject to the annual limitation referred to above.

In 1996, a wholly owned subsidiary of Polaris entered into a partnership agreement with an entity that is now a subsidiary of GE Commercial Distribution Finance Corporation (GECDF) to form Polaris Acceptance. Polaris Acceptance provides floor plan financing to our dealers in the United States. Our subsidiary has a 50 percent equity interest in Polaris Acceptance. In November 2006, Polaris Acceptance sold a majority of its receivable portfolio (the “Securitized Receivables”) to a securitization facility (“Securitization Facility”) arranged by General Electric Capital Corporation, a GECDF affiliate, and the partnership agreement was amended to provide that Polaris Acceptance would continue to sell portions of its receivable portfolio to the Securitization Facility from time to time on an ongoing basis. The sale of receivables from Polaris Acceptance to the Securitization Facility is accounted for in Polaris Acceptance’s financial statements as a “true-sale” under ASC Topic 860. Polaris Acceptance is not responsible for any continuing servicing costs or obligations with respect to the Securitized Receivables. The remaining portion of the receivable portfolio is recorded on Polaris Acceptance’s books, and is funded through a loan from an affiliate of GECDF and through equity contributions from both partners.

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We have not guaranteed the outstanding indebtedness of Polaris Acceptance. In addition, the two partners of Polaris Acceptance share equally a variable equity cash investment based on the sum of the portfolio balance in Polaris Acceptance. Our total investment in Polaris Acceptance at December 31, 2014 was $89.1 million. Substantially all of our U.S. sales are financed through Polaris Acceptance whereby Polaris receives payment within a few days of shipment of the product. The partnership agreement provides that all income and losses of Polaris Acceptance are shared 50 percent by our wholly owned subsidiary and 50 percent by GECDF’s subsidiary. Our exposure to losses associated with respect to the Polaris Acceptance is limited to our equity in Polaris Acceptance. We have agreed to repurchase products repossessed by Polaris Acceptance up to an annual maximum of 15 percent of the aggregate average month-end balances outstanding during the prior calendar year with respect to receivables retained by Polaris Acceptance and the Securitized Receivables. For calendar year 2015, the potential 15 percent aggregate repurchase obligation is approximately $146.4 million. Our financial exposure under this arrangement is limited to the difference between the amount paid to the finance company for repurchases and the amount received on the resale of the repossessed product. No material losses have been incurred under this agreement. During 2011, Polaris and GECDF amended the Polaris Acceptance partnership agreement to extend it through February 2017 with similar terms to the previous agreement.

Our investment in Polaris Acceptance is accounted for under the equity method and is recorded as investment in finance affiliate in the accompanying consolidated balance sheets. Our allocable share of the income of Polaris Acceptance has been included as a component of income from financial services in the accompanying consolidated statements of income. At December 31, 2014, Polaris Acceptance’s wholesale portfolio receivables from dealers in the United States (including the Securitized Receivables) was $1,141.1 million, a 23 percent increase from $928.5 million at December 31, 2013. Credit losses in the Polaris Acceptance portfolio have been modest, averaging less than one percent of the portfolio.

We have agreements with Capital One, Sheffield, FreedomRoad, Synchrony Bank, and Chrome under which these financial institutions provide financing to end consumers of our products. The agreements expire in October 2015, February 2016, February 2016, April 2016, and January 2018, respectively. The income generated from these agreements has been included as a component of income from financial services in the accompanying consolidated statements of income.

During 2014, consumers financed 32 percent of our vehicles sold in the United States through the combined Capital One revolving retail credit and Sheffield, Synchrony Bank and FreedomRoad installment retail credit arrangement. The volume of revolving and installment credit contracts written in calendar year 2014 was $903.7 million, a 16 percent increase from 2013.

We administer and provide extended service contracts to consumers and certain insurance contracts to dealers and consumers through various third-party suppliers. We do not retain any warranty, insurance or financial risk under any of these arrangements. The service fee income generated from these arrangements has been included as a component of income from financial services in the accompanying consolidated statements of income.

We believe that existing cash balances, cash flow to be generated from operating activities and available borrowing capacity under the line of credit arrangement will be sufficient to fund operations, new product development, cash dividends, share repurchases, acquisitions and capital requirements for the foreseeable future. At this time, we are not aware of any factors that would have a material adverse impact on cash flow.

35

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

Inflation, Foreign Exchange Rates, Equity Prices and Interest Rates

The changing relationships of the U.S. dollar to the Japanese yen, the Mexican Peso, the Canadian dollar, the Australian dollar, the Euro, the Swiss Franc and other foreign currencies have had a material impact from time to time. We actively manage our exposure to fluctuating foreign currency exchange rates by entering into foreign exchange hedging contracts.

Japanese Yen: During 2014, purchases totaling approximately two percent of our cost of sales were from yen-denominated suppliers. Fluctuations in the yen to U.S. dollar exchange rate primarily impacts cost of sales and net income.

Mexican Peso: With increased production at our Monterrey, Mexico facility, our costs in the Mexican peso have continued to increase. We also market and sell to customers in Mexico through a wholly owned subsidiary. Fluctuations in the peso to U.S. dollar exchange rate primarily impacts sales, cost of sales, and net income.

Canadian Dollar: We operate in Canada through a wholly owned subsidiary. The relationship of the U.S. dollar in relation to the Canadian dollar impacts both sales and net income.

Other currencies: We operate in various countries, principally in Europe and Australia, through wholly owned subsidiaries and also sell to certain distributors in other countries. We also purchase components from certain suppliers directly for our U.S. operations in transactions denominated in Euros and other foreign currencies. The relationship of the U.S. dollar in relation to these other currencies impacts each of sales, cost of sales and net income.

At December 31, 2014, we had the following open foreign currency hedging contracts for 2015, and expect the following currency impact on gross profit when compared to the respective prior year periods:

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	2014	2015
Australian Dollar	Long	$	3,491	$0.91 to 1 AUD	Negative	Negative
Canadian Dollar (CAD)	Long	40,550		$0.85 to 1 CAD	Negative	Negative
Euro	Long	—		—	Negative	Negative
Japanese Yen	Short	22,201		109.37 Yen to $1	Positive	Positive
Mexican Peso	Short	34,060		14.01 Peso to $1	Slightly positive	Positive
Norwegian Kroner	Long	—		—	Negative	Negative
Swedish Krona	Long	—		—	Negative	Negative
Swiss Franc	Short	—		—	Negative	Positive

The assets and liabilities in all our foreign entities are translated at the foreign exchange rate in effect at the balance sheet date. Translation gains and losses are reflected as a component of accumulated other comprehensive income (loss), net in the shareholders’ equity section of the accompanying consolidated balance sheets. Revenues and expenses in all of our foreign entities are translated at the average foreign exchange rate in effect for each month of the quarter. Certain assets and liabilities related to intercompany positions reported on our consolidated balance sheet that are denominated in a currency other than the entity’s functional currency are translated at the foreign exchange rates at the balance sheet date and the associated gains and losses are included in net income.

We are subject to market risk from fluctuating market prices of certain purchased commodities and raw materials including steel, aluminum, petroleum-based resins, certain rare earth metals and diesel fuel. In addition, we are a purchaser of components and parts containing various commodities, including steel, aluminum, rubber and others, which are integrated into the Company’s end products. While such materials are typically available from numerous suppliers, commodity raw materials are subject to price fluctuations. We generally buy these commodities and components based upon market prices that are established with the vendor as part of the purchase process and from time to time will enter into derivative contracts to hedge a portion of the exposure to commodity risk. At December 31, 2014, derivative contracts were in place to hedge approximately 50% of our diesel fuel exposures for 2015. These contracts did not meet the criteria for hedge accounting and the resulting unrealized loss as of December 31, 2014 was $4.8 million pretax,

36

which was included in the consolidated statements of income as a component of cost of sales. Based on our current outlook for commodity prices, the total impact of commodities is expected to have a positive impact on our gross margins for 2015 when compared to 2014.

We are a party to a credit agreement with various lenders consisting of a $350 million revolving loan facility. Interest accrues on the revolving loan at variable rates based on LIBOR or “prime” plus the applicable add-on percentage as defined. At December 31, 2014, there was no outstanding balance on the revolving loan. Assuming no additional borrowings or payments on the debt, a one-percent fluctuation in interest rates would have a $1.6 million impact to interest expense in 2014.

37

INDEX TO FINANCIAL STATEMENTS

	Page
Management’s Report on Internal Control over Financial Reporting	39
Report Of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting	40
Report Of Independent Registered Public Accounting Firm on Consolidated Financial Statements	41
Consolidated Balance Sheets as of December 31, 2014 and 2013	42
Consolidated Statements of Income for the Years Ended December 31, 2014, 2013 and 2012	43
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2014, 2013 and 2012	44
Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 2014, 2013 and 2012	45
Consolidated Statements of Cash Flows for the Years ended December 31, 2014, 2013 and 2012	46
Notes to Consolidated Financial Statements	47

38

Item 8. Financial Statements and Supplementary Data

Management’s Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining an adequate system of internal control over financial reporting of the Company. This system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with United States generally accepted accounting principles.

Our internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management conducted an evaluation of the effectiveness of the system of internal control over financial reporting as of December 31, 2014. In making this evaluation, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—2013 Integrated Framework. Based on management’s evaluation and those criteria, management concluded that the Company’s system of internal control over financial reporting was effective as of December 31, 2014.

Management’s internal control over financial reporting as of December 31, 2014 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report appearing on the following page, in which they expressed an unqualified opinion.

/S/ SCOTT W. WINE

Scott W. Wine

Chairman and Chief Executive Officer

/S/ MICHAEL W. MALONE

Michael W. Malone

Vice President—Finance and

Chief Financial Officer

February 20, 2015

Further discussion of our internal controls and procedures is included in Item 9A of this report, under the caption “Controls and Procedures.”

39

Report Of Independent Registered Public Accounting Firm

on Internal Control over Financial Reporting

The Board of Directors and Shareholders of

Polaris Industries Inc.

We have audited Polaris Industries Inc.’s (the Company) internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). Polaris Industries Inc.’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Polaris Industries Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2014, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Polaris Industries Inc. as of December 31, 2014 and 2013, and the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2014 of Polaris Industries Inc., and our report, dated February 20, 2015, expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Minneapolis, Minnesota

February 20, 2015

40

Report of Independent Registered Public Accounting Firm

on Consolidated Financial Statements

The Board of Directors and Shareholders of

Polaris Industries Inc.

We have audited the accompanying consolidated balance sheets of Polaris Industries Inc. (the Company) as of December 31, 2014 and 2013, and the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2014. Our audits also included the financial statement schedule listed in the Index at Item 15. These financial statements and the schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Polaris Industries Inc. at December 31, 2014 and 2013, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2014, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Polaris Industries Inc.’s internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control-Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission 2013 framework and our report, dated February 20, 2015, expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Minneapolis, Minnesota

February 20, 2015

41

POLARIS INDUSTRIES INC. CONSOLIDATED BALANCE SHEETS (In thousands, except per share data)
Assets	December 31, 2014			December 31, 2013
Current Assets:
Cash and cash equivalents	$	137,600		$	92,248
Trade receivables, net	204,876			186,213
Inventories, net	565,685			417,948
Prepaid expenses and other	71,526			63,716
Income taxes receivable	2,691			12,217
Deferred tax assets	114,177			93,356
Total current assets	1,096,555			865,698
Property and equipment:
Land, buildings and improvements	272,802			228,916
Equipment and tooling	826,997			701,101
	1,099,799			930,017
Less: accumulated depreciation	(544,371		)	(474,850		)
Property and equipment, net	555,428			455,167
Investment in finance affiliate	89,107			69,217
Deferred tax assets	41,201			18,616
Goodwill and other intangible assets, net	223,966			229,708
Other long-term assets	68,678			47,082
Total assets	$	2,074,935		$	1,685,488
Liabilities and Shareholders' Equity
Current liabilities:
Current portion of capital lease obligations	$	2,528		$	3,281
Accounts payable	343,470			238,044
Accrued expenses:
Compensation	102,379			143,504
Warranties	53,104			52,818
Sales promotions and incentives	138,630			123,089
Dealer holdback	120,093			100,600
Other	79,262			77,480
Income taxes payable	11,344			9,254
Total current liabilities	850,810			748,070
Long-term income taxes payable	10,568			14,292
Capital lease obligations	23,620			3,842
Long-term debt	200,000			280,500
Deferred tax liabilities	18,191			25,028
Other long-term liabilities	96,951			69,730
Total liabilities	$	1,200,140		$	1,141,462
Deferred compensation	13,528			8,421
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, 66,307 and 65,623 shares issued and outstanding, respectively	$	663		$	656
Additional paid-in capital	486,005			360,616
Retained earnings	401,840			155,572
Accumulated other comprehensive income (loss), net	(27,241		)	18,761
Total shareholders’ equity	861,267			535,605
Total liabilities and shareholders’ equity	$	2,074,935		$	1,685,488

The accompanying footnotes are an integral part of these consolidated statements.

42

POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data)
	For the Years Ended December 31,
	2014		2013			2012
Sales	$	4,479,648	$	3,777,068		$	3,209,782
Cost of sales	3,160,470		2,656,189			2,284,485
Gross profit	1,319,178		1,120,879			925,297
Operating expenses:
Selling and marketing	314,449		270,266			210,367
Research and development	148,458		139,193			127,361
General and administrative	203,248		179,407			143,064
Total operating expenses	666,155		588,866			480,792
Income from financial services	61,667		45,901			33,920
Operating income	714,690		577,914			478,425
Non-operating expense (income):
Interest expense	11,239		6,210			5,932
Equity in loss of other affiliates	4,124		2,414			179
Other expense (income), net	10		(5,139		)	(7,529		)
Income before income taxes	699,317		574,429			479,843
Provision for income taxes	245,288		193,360			167,533
Net income from continuing operations	454,029		381,069			312,310
Loss from discontinued operations, net of tax	—		(3,777		)	—
Net income	$	454,029	$	377,292		$	312,310
Basic net income per share:
Continuing operations	$	6.86	$	5.56		$	4.54
Loss from discontinued operations	—		(0.05		)	—
Basic net income per share	$	6.86	$	5.51		$	4.54
Diluted net income per share:
Continuing operations	$	6.65	$	5.40		$	4.40
Loss from discontinued operations	—		(0.05		)	—
Diluted net income per share	$	6.65	$	5.35		$	4.40
Weighted average shares outstanding:
Basic	66,175		68,535			68,849
Diluted	68,229		70,546			71,005

The accompanying footnotes are an integral part of these consolidated statements.

43

POLARIS INDUSTRIES INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

	For the Years Ended December 31,
	2014			2013		2012
Net income	$	454,029		$	377,292	$	312,310
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of tax benefit (expense) of $65, $1,841, and ($182)	(44,371		)	4,913		4,124
Unrealized gain (loss) on derivative instruments, net of tax benefit (expense) of $970, ($950), and $2,325	(1,631		)	1,610		(3,909		)
Comprehensive income	$	408,027		$	383,815	$	312,525

The accompanying footnotes are an integral part of these consolidated statements.

44

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, 2011	68,430		$	684		$	165,518		$	321,831		$	12,023		$	500,056
Employee stock compensation	174		2			35,418			—			—			35,420
Proceeds from stock issuances under employee plans	1,692		17			41,679			—			—			41,696
Tax effect of exercise of stock options	—		—			29,892			—			—			29,892
Cash dividends declared ($1.48 per share)	—		—			—			(101,534		)	—			(101,534		)
Repurchase and retirement of common shares	(1,649	)	(17		)	(3,992		)	(123,516		)	—			(127,525		)
Net income	—		—			—			312,310			—			312,310
Other comprehensive income	—		—			—			—			215			215
Balance, December 31, 2012	68,647		686			268,515			409,091			12,238			690,530
Employee stock compensation	264		3			57,890			—			—			57,893
Deferred compensation	—		—			(4,358		)	(4,063		)	—			(8,421		)
Proceeds from stock issuances under employee plans	1,049		10			26,912			—			—			26,922
Tax effect of exercise of stock options	—		—			28,621			—			—			28,621
Cash dividends declared ($1.68 per share)	—		—			—			(113,722		)	—			(113,722		)
Repurchase and retirement of common shares	(4,337	)	(43		)	(16,964		)	(513,026		)	—			(530,033		)
Net income	—		—			—			377,292			—			377,292
Other comprehensive income	—		—			—			—			6,523			6,523
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 (loss)	—		—			—			—			(46,002		)	(46,002		)
Balance, December 31, 2014	66,307		$	663		$	486,005		$	401,840		$	(27,241	)	$	861,267

The accompanying footnotes are an integral part of these consolidated statements.

45

POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
	For the Year Ended December 31,
	2014			2013			2012
Operating Activities:
Net income	$	454,029		$	377,292		$	312,310
Loss from discontinued operations	—			3,777			—
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	127,507			92,100			70,580
Noncash compensation	63,183			57,893			35,420
Noncash income from financial services	(18,645		)	(4,983		)	(3,899		)
Deferred income taxes	(50,388		)	(5,892		)	(28,901		)
Tax effect of share-based compensation exercises	(36,966		)	(28,621		)	(29,892		)
Other, net	6,124			7,414			179
Changes in operating assets and liabilities:
Trade receivables	(24,174		)	(54,055		)	2,413
Inventories	(158,476		)	(52,049		)	(36,029		)
Accounts payable	105,783			51,519			21,371
Accrued expenses	30,664			53,278			39,269
Income taxes payable/receivable	45,324			33,398			51,120
Prepaid expenses and others, net	(14,695		)	(31,919		)	(17,831		)
Cash provided by continuing operations	529,270			499,152			416,110
Cash used for discontinued operations	—			(6,912		)	—
Net cash provided by operating activities	529,270			492,240			416,110
Investing Activities:
Purchase of property and equipment	(205,079		)	(251,401		)	(103,083		)
Investment in finance affiliate	(32,582		)	(19,251		)	(18,400		)
Distributions from finance affiliate	31,337			12,005			7,562
Investment in other affiliates	(12,445		)	(10,934		)	(7,996		)
Acquisition of businesses, net of cash acquired	(28,013		)	(137,104		)	(41,135		)
Net cash used for investing activities	(246,782		)	(406,685		)	(163,052		)
Financing Activities:
Borrowings under debt arrangements / capital lease obligations	2,146,457			776,669			2,437
Repayments under debt arrangements / capital lease obligations	(2,228,587		)	(597,492		)	(7,478		)
Repurchase and retirement of common shares	(81,812		)	(530,033		)	(127,525		)
Cash dividends to shareholders	(126,908		)	(113,722		)	(101,534		)
Proceeds from stock issuances under employee plans	31,313			26,922			41,696
Tax effect of proceeds from share-based compensation exercises	36,966			28,621			29,892
Net cash used for financing activities	(222,571		)	(409,035		)	(162,512		)
Impact of currency exchange rates on cash balances	(14,565		)	(1,287		)	1,133
Net increase (decrease) in cash and cash equivalents	45,352			(324,767		)	91,679
Cash and cash equivalents at beginning of period	92,248			417,015			325,336
Cash and cash equivalents at end of period	$	137,600		$	92,248		$	417,015
Noncash Activity:
Property and equipment obtained through capital leases	$	24,908		$	—		$	—
Supplemental Cash Flow Information:
Interest paid on debt borrowings	$	11,259		$	6,076		$	5,932
Income taxes paid	$	261,550		$	162,647		$	143,510

The accompanying footnotes are an integral part of these consolidated statements.

46

POLARIS INDUSTRIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1.Organization and Significant Accounting Policies

Polaris Industries Inc. (“Polaris” or the “Company”), a Minnesota corporation, and its subsidiaries are engaged in the design, engineering, manufacturing and marketing of innovative, high-quality, high-performance Off-Road Vehicles (ORV), Snowmobiles, Motorcycles and Small Vehicles (SV). Polaris products, together with related parts, garments and accessories are sold worldwide through a network of independent dealers and distributors and its subsidiaries. The primary markets for our products are the United States, Canada, Western Europe, Australia and Mexico.

Basis of presentation. The accompanying consolidated financial statements include the accounts of Polaris and its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Income from financial services is reported as a component of operating income to better reflect income from ongoing operations, of which financial services has a significant impact.

On September 2, 2004, the Company announced its decision to discontinue the manufacture of marine products effective immediately. Material financial results for the marine products division are reported separately as discontinued operations for all periods presented.

The Company evaluates consolidation of entities under Accounting Standards Codification (ASC) Topic 810. This Topic requires management to evaluate whether an entity or interest is a variable interest entity and whether the company is the primary beneficiary. Polaris used the guidelines to analyze the Company’s relationships, including its relationship with Polaris Acceptance, and concluded that there were no variable interest entities requiring consolidation by the Company in 2014, 2013 and 2012.

In April 2014, the Company completed an acquisition of Kolpin Outdoors, Inc. ("Kolpin"), and in November 2014, completed the acquisition of certain assets of LSI Products Inc. and Armor Holdings, LLC. ("Pro Armor"). Kolpin is a leading aftermarket brand delivering purpose-built and universal-fit ORV accessories and lifestyle products. Pro Armor is an industry-leading brand in performance side-by-side accessories, that operates under the Pro Armor brand. The Company has included the financial results of the acquisitions in its consolidated results of operations beginning on the respective acquisition dates; however, the acquisitions did not have a material impact on Polaris’ consolidated financial position or results of operations. Refer to Note 5 for additional information regarding the acquisitions of Kolpin and Pro Armor.

In April 2013, the Company completed an acquisition of A.M. Holding S.A.S., which operates under the name Aixam Mega S.A.S. ("Aixam"). The Company has included the financial results of the acquisition in its consolidated results of operations beginning on the acquisition date; however, the acquisition did not have a material impact on Polaris’ consolidated financial position or results of operations.

Reclassifications. Certain reclassifications of previously reported balance sheet amounts have been made to conform to the current year presentation. The reclassifications had no impact on the consolidated statements of income, current assets or current liabilities in the consolidated balance sheets, as previously reported.

Use of estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate results could differ from those estimates.

Fair value measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date:

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.

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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.

In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. 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, and for the income approach the Company uses significant other observable inputs to value its 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):

	Fair Value Measurements as of December 31, 2014
Asset (Liability)	Total			Level 1			Level 2			Level 3
Non-qualified deferred compensation assets	$	41,797		$	41,797		—			—
Total assets at fair value	$	41,797		$	41,797		—			—
Commodity contracts, net	$	(4,609	)	—			$	(4,609	)
Foreign exchange contracts, net	(2,570		)	—			(2,570		)	—
Non-qualified deferred compensation liabilities	(41,797		)	$	(41,797	)	—			—
Total liabilities at fair value	$	(48,976	)	$	(41,797	)	$	(7,179	)	—
	Fair Value Measurements as of December 31, 2013
Asset (Liability)	Total			Level 1			Level 2			Level 3
Commodity contracts, net	$	30		—			$	30		—
Non-qualified deferred compensation assets	24,711			$	24,711		—			—
Total assets at fair value	$	24,741		$	24,711		$	30		—
Foreign exchange contracts, net	$	(9	)	—			$	(9	)	—
Non-qualified deferred compensation liabilities	(24,711		)	$	(24,711	)	—			—
Total liabilities at fair value	$	(24,720	)	$	(24,711	)	$	(9	)	—

Polaris measures certain assets and liabilities at fair value on a nonrecurring basis. Assets acquired and liabilities assumed as part of acquisitions are measured at fair value. Refer to Note 5 for additional information. Polaris will impair or write off an investment and recognize a loss when events or circumstances indicate there is impairment in the investment that is other-than-temporary. The amount of loss is determined by measuring the investment at fair value. Refer to Note 9 for additional information.

Cash equivalents. Polaris considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. Such investments consist principally of money market mutual funds.

Allowance for doubtful accounts. Polaris’ financial exposure to collection of accounts receivable is limited due to its agreements with certain finance companies. For receivables not serviced through these finance companies, the Company provides a reserve for doubtful accounts based on historical rates and trends. This reserve is adjusted periodically as information about specific accounts becomes available.

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Inventories. Inventory costs include material, labor, and manufacturing overhead costs, including depreciation expense associated with the manufacture and distribution of the Company's products. 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):

	December 31, 2014			December 31, 2013
Raw materials and purchased components	$	165,823		$	107,496
Service parts, garments and accessories	163,455			125,765
Finished goods	262,578			206,290
Less: reserves	(26,171		)	(21,603		)
Inventories	$	565,685		$	417,948

Investment in finance affiliate. The caption investment in finance affiliate in the consolidated balance sheets represents Polaris’ fifty percent equity interest in Polaris Acceptance, a partnership agreement between GE Commercial Distribution Finance Corporation (“GECDF”) and one of Polaris’ wholly-owned subsidiaries. Polaris Acceptance provides floor plan financing to Polaris dealers in the United States. Polaris’ investment in Polaris Acceptance is accounted for under the equity method, and is recorded as investment in finance affiliate in the consolidated balance sheets. Polaris’ allocable share of the income of Polaris Acceptance has been included as a component of income from financial services in the consolidated statements of income. Refer to Note 8 for additional information regarding Polaris’ investment in Polaris Acceptance.

Investment in other affiliates. Polaris' investment in other affiliates is included within other long-term assets in the consolidated balance sheets, and represents the Company’s investment in nonmarketable securities of strategic companies. For each investment, Polaris assesses the level of influence in determining whether to account for the investment under the cost method or equity method. For equity method investments, Polaris’ proportionate share of income or losses is recorded in the consolidated statements of income. Polaris will write down or write off an investment and recognize a loss if and when events or circumstances indicate there is impairment in the investment that is other-than-temporary. Refer to Note 9 for additional information regarding Polaris’ investment in other affiliates.

Property and equipment. Property and equipment is stated at cost. Depreciation is provided using the straight-line method over the estimated useful life of the respective assets, ranging from 10-40 years for buildings and improvements and from 1-7 years for equipment and tooling. Depreciation of assets recorded under capital leases is included with depreciation expense. Fully depreciated tooling is eliminated from the accounting records annually.

Goodwill and other intangible assets. ASC Topic 350 prohibits the amortization of goodwill and intangible assets with indefinite useful lives. Topic 350 requires that these assets be reviewed for impairment at least annually. An impairment charge for goodwill is recognized only when the estimated fair value of a reporting unit, including goodwill, is less than its carrying amount. Refer to Note 5 for additional information regarding goodwill and other intangible assets.

Revenue recognition. Revenues are recognized at the time of shipment to the dealer or distributor or other customers. Product returns, whether in the normal course of business or resulting from repossession under the Company's customer financing program (see Note 8), have not been material. Polaris sponsors certain sales incentive programs and accrues liabilities for estimated sales promotion expenses and estimated holdback amounts that are recognized as reductions to sales when products are sold to the dealer or distributor customer.

Sales promotions and incentives. Polaris provides for estimated sales promotion and incentive expenses, which are recognized as a reduction to sales, at the time of sale to the dealer or distributor. Examples of sales promotion and incentive programs include dealer and consumer rebates, volume incentives, retail financing programs and sales associate incentives. Sales promotion and incentive expenses are estimated based on current programs and historical rates for each product line. Actual results may differ from these estimates if market conditions dictate the need to enhance or reduce sales promotion and incentive programs or if the customer usage rate varies from historical trends. Historically, sales promotion and incentive expenses have been within the Company’s expectations and differences have not been material.

Dealer holdback programs. Dealer holdback represents a portion of the invoiced sales price that is expected to be subsequently returned to the dealer or distributor as a sales incentive upon the ultimate retail sale of the product. Holdback amounts reduce the ultimate net price of the products purchased by Polaris’ dealers or distributors and, therefore, reduce the amount of sales Polaris recognizes at the time of shipment. The portion of the invoiced sales price

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estimated as the holdback is recognized as “dealer holdback” liability on the Company’s balance sheet until paid or forfeited. The minimal holdback adjustments in the estimated holdback liability due to forfeitures are recognized in net sales. Payments are made to dealers or distributors at various times during the year subject to previously established criteria.

Shipping and handling costs. Polaris records shipping and handling costs as a component of cost of sales at the time the product is shipped.

Research and development expenses. Polaris records research and development expenses in the period in which they are incurred as a component of operating expenses.

Advertising expenses. Polaris records advertising expenses as a component of selling and marketing expenses in the period in which they are incurred. In the years ended December 31, 2014, 2013, and 2012, Polaris incurred $82,600,000, $73,945,000, and $58,752,000, respectively.

Product warranties. Polaris provides a limited warranty for its ORVs for a period of six months, for a period of one year for its snowmobiles, for a period of one or two years for its motorcycles depending on brand and model year, and for a two year period for SVs. Polaris provides longer warranties in certain geographical markets as determined by local regulations and market conditions and may also provide longer warranties related to certain promotional programs. Polaris’ standard warranties require the Company or its dealers to repair or replace defective products during such warranty periods at no cost to the consumer. The warranty reserve is established at the time of sale to the dealer or distributor based on management’s best estimate using historical rates and trends. Adjustments to the warranty reserve are made from time to time as actual claims become known in order to properly estimate the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. Factors that could have an impact on the warranty accrual in any given period include the following: improved manufacturing quality, shifts in product mix, changes in warranty coverage periods, snowfall and its impact on snowmobile usage, product recalls and any significant changes in sales volume.

The activity in the warranty reserve during the periods presented was as follows (in thousands):

	For the Years Ended December 31,
	2014			2013			2012
Balance at beginning of year	$	52,818		$	47,723		$	44,355
Additions to warranty reserve through acquisitions	160			1,602			900
Additions charged to expense	61,888			56,857			46,088
Warranty claims paid	(61,762		)	(53,364		)	(43,620		)
Balance at end of year	$	53,104		$	52,818		$	47,723

Share-based employee compensation. For purposes of determining the estimated fair value of share-based payment awards on the date of grant under ASC Topic 718, Polaris uses the Black-Scholes Model. The Black-Scholes Model requires the input of certain assumptions that require judgment. Because employee stock options and restricted stock awards have characteristics significantly different from those of traded options, and because changes in the input assumptions can materially affect the fair value estimate, the existing models may not provide a reliable single measure of the fair value of the employee stock options or restricted stock awards. Management will continue to assess the assumptions and methodologies used to calculate estimated fair value of share-based compensation. Circumstances may change and additional data may become available over time, which could result in changes to these assumptions and methodologies and thereby materially impact the fair value determination. If factors change and the Company employs different assumptions in the application of Topic 718 in future periods, the compensation expense that was recorded under Topic 718 may differ significantly from what was recorded in the current period. Refer to Note 2 for additional information regarding share-based compensation.

The Company estimates the likelihood and the rate of achievement for performance share-based awards. Changes in the estimated rate of achievement and fluctuation in the market based stock price can have a significant effect on reported share-based compensation expenses as the effect of a change in the estimated achievement level and fluctuation in the market based stock price is recognized in the period that the likelihood factor and stock price changes. If adjustments in the estimated rate of achievement and fluctuation in the market based stock price are made, they would be reflected in our gross margin and operating expenses.

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Derivative instruments and hedging activities. Changes in the fair value of a derivative are recognized in earnings unless the derivative qualifies as a hedge. To qualify as a hedge, the Company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting.

Polaris enters into foreign exchange contracts to manage currency exposures from certain of its purchase commitments denominated in foreign currencies and transfers of funds from time to time from its foreign subsidiaries. Polaris does not use any financial contracts for trading purposes. These contracts met the criteria for cash flow hedges. Gains and losses on the Canadian dollar, Norwegian Krone, Swedish Krona and Australian dollar contracts at settlement are recorded in non-operating other expense (income) in the consolidated income statements, and gains and losses on the Japanese yen, Mexican peso and Euro contracts at settlement are recorded in cost of sales in the consolidated income statements. Unrealized gains and losses are recorded as a component of accumulated other comprehensive income (loss).

Polaris is subject to market risk from fluctuating market prices of certain purchased commodity raw materials, including steel, aluminum, diesel fuel, and petroleum-based resins. In addition, the Company purchases components and parts containing various commodities, including steel, aluminum, rubber, rare earth metals and others which are integrated into the Company’s end products. While such materials are typically available from numerous suppliers, commodity raw materials are subject to price fluctuations. The Company generally buys these commodities and components based upon market prices that are established with the vendor as part of the purchase process. From time to time, Polaris utilizes derivative contracts to hedge a portion of the exposure to commodity risks. During 2014 and 2013, the Company entered into derivative contracts to hedge a portion of the exposure for diesel fuel and aluminum. The Company's diesel fuel and aluminum hedging contracts do not meet the criteria for hedge accounting and therefore, the resulting unrealized gains and losses from those contracts are included in the consolidated statements of income in cost of sales. Refer to Note 11 for additional information regarding derivative instruments and hedging activities.

The gross unrealized gains and losses of these contracts are recorded in the accompanying balance sheets as other current assets or other current liabilities.

Foreign currency translation. The functional currency for each of the Polaris foreign subsidiaries is their respective local currencies. The assets and liabilities in all Polaris foreign entities are translated at the foreign exchange rate in effect at the balance sheet date. Translation gains and losses are reflected as a component of accumulated other comprehensive income (loss) in the shareholders’ equity section of the accompanying consolidated balance sheets. Revenues and expenses in all of Polaris’ foreign entities are translated at the average foreign exchange rate in effect for each month of the quarter. Transaction gains and losses including intercompany transactions denominated in a currency other than the functional currency of the entity involved are included in other expense (income), net in our consolidated statements of income.

Comprehensive income. Components of comprehensive income include net income, foreign currency translation adjustments, and unrealized gains or losses on derivative instruments. The Company has chosen to disclose comprehensive income in separate consolidated statements of comprehensive income.

New accounting pronouncements. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue from the transfer of goods or services to customers in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. Polaris is required to adopt the new pronouncement on January 1, 2017 using one of two retrospective application methods. The Company is evaluating the application method and the impact of this new standard on the financial statements.

There are no other new accounting pronouncements that are expected to have a significant impact on Polaris' consolidated financial statements.

Note 2. Share-Based Compensation

Share-based plans. The Company grants long-term equity-based incentives and rewards for the benefit of its employees and directors under the shareholder approved Polaris Industries Inc. 2007 Omnibus Incentive Plan (as amended) (the “Omnibus Plan”), which were previously provided under several separate incentive and compensatory plans. Upon approval by the shareholders of the Omnibus Plan in April 2007, the Polaris Industries Inc. 1995 Stock Option Plan (“Option Plan”), the 1999 Broad Based Stock Option Plan, the Restricted Stock Plan and the 2003 Non-Employee Director Stock Option Plan (“Director Stock Option Plan” and collectively the “Prior Plans”) were frozen and no further grants or awards have since been or will be made under such plans. A maximum of 13,500,000 shares of common stock

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are available for issuance under the Omnibus Plan, together with additional shares canceled or forfeited under the Prior Plans.

Stock option awards granted to date under the Omnibus Plan generally vest two to four years from the award date and expire after ten years. In addition, since 2007, the Company has granted a total of 138,000 deferred stock units to its non-employee directors under the Omnibus Plan (9,000, 12,000 and 12,000 in 2014, 2013 and 2012, respectively) which will be converted into common stock when the director’s board service ends or upon a change in control. Restricted shares awarded under the Omnibus Plan to date generally contain restrictions, which lapse after a two to four year period if Polaris achieves certain performance measures.

The Option Plan, which is frozen, was used to issue incentive and nonqualified stock options to certain employees. Options granted to date generally vest three years from the award date and expire after ten years. The Director Stock Option Plan, which is frozen and contains no unexercised awards as of December 31, 2014, was used to issue nonqualified stock options to non-employee directors.

Under the Polaris Industries Inc. Deferred Compensation Plan for Directors (“Director Plan”), members of the Board of Directors who are not Polaris officers or employees may annually elect to receive common stock equivalents in lieu of director fees, which will be converted into common stock when board service ends. A maximum of 500,000 shares of common stock has been authorized under this plan of which 101,000 equivalents have been earned and an additional 381,000 shares have been issued to retired directors as of December 31, 2014. As of December 31, 2014 and 2013, Polaris’ liability under the plan totaled $15,217,000 and $17,031,000, respectively.

Polaris maintains a long term incentive program under which awards are issued to provide incentives for certain employees to attain and maintain the highest standards of performance and to attract and retain employees of outstanding competence and ability with no cash payments required from the recipient. Awards granted through 2011 were paid in cash and were based on certain Company performance measures that are measured over a period of three consecutive calendar years. At the beginning of the plan cycle, participants had the option to receive a cash value at the time of awards or a cash value tied to Polaris stock price movement over the three year plan cycle. At December 31, 2013, Polaris’ liability under the plan totaled $57,166,000, and the final cash payout was made in 2014. Beginning in 2012, long term incentive program awards are granted in restricted stock units and therefore treated as equity awards. All remaining conditions of the long term incentive program remained the same as prior to 2012.

Share-based compensation expense. The amount of compensation cost for share-based awards to be recognized during a period is based on the portion of the awards that are ultimately expected to vest. The Company estimates stock option forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company analyzes historical data to estimate pre-vesting forfeitures and records share compensation expense for those awards expected to vest.

Total share-based compensation expenses were as follows (in thousands):

	For the Years Ended December 31,
	2014		2013		2012
Option plan	$	24,428	$	22,245	$	16,497
Other share-based awards	26,574		57,640		56,770
Total share-based compensation before tax	51,002		79,885		73,267
Tax benefit	19,039		29,835		27,401
Total share-based compensation expense included in net income	$	31,963	$	50,050	$	45,866

These share-based compensation expenses are reflected in cost of sales and operating expenses in the accompanying consolidated statements of income. For purposes of determining the estimated fair value of option awards on the date of grant under ASC Topic 718, Polaris has used the Black-Scholes option-pricing model. Assumptions utilized in the model are evaluated and revised, as necessary, to reflect market conditions and experience.

At December 31, 2014, there was $82,778,000 of total unrecognized share-based compensation expense related to unvested share-based equity awards. Unrecognized share-based compensation expense is expected to be recognized over a weighted-average period of 1.50 years. Included in unrecognized share-based compensation is approximately $36,746,000 related to stock options and $46,032,000 for restricted stock.

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General stock option and restricted stock information. The following summarizes stock option activity and the weighted average exercise price for the following plans for the each of the three years ended December 31, 2014, 2013 and 2012:

	Omnibus Plan (Active)				Option Plan (Frozen)				Director Stock Option Plan (Frozen)
	Outstanding Shares		Weighted Average Exercise Price		Outstanding Shares		Weighted Average Exercise Price		Outstanding Shares		Weighted Average Exercise Price
Balance as of December 31, 2011	4,682,737		$	29.45	1,098,546		$	25.08	80,000		$	23.52
Granted	570,700		66.19		—		—		—		—
Exercised	(861,397	)	22.54		(744,974	)	25.84		(64,000	)	22.62
Forfeited	(61,630	)	40.95		—		—		—		—
Balance as of December 31, 2012	4,330,410		$	35.50	353,572		$	23.47	16,000		$	27.10
Granted	1,037,729		87.06		—		—		—		—
Exercised	(821,679	)	24.45		(191,141	)	23.23		(16,000	)	27.10
Forfeited	(80,380	)	47.55		—		—		—		—
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	—		—
Vested or expected to vest as of December 31, 2014	4,206,512		$	66.38	63,233		$	23.76	—		—
Options exercisable as of December 31, 2014	1,640,169		$	32.52	63,233		$	23.76	—		—

The weighted average remaining contractual life of options outstanding and of options outstanding and exercisable as of December 31, 2014 was 6.83 years and 5.17 years, respectively.

The following assumptions were used to estimate the weighted average fair value of options of $39.97, $30.43, and $23.40 granted during the years ended December 31, 2014, 2013, and 2012, respectively:

	For the Years Ended December 31,
	2014		2013		2012
Weighted-average volatility	40	%	49	%	50	%
Expected dividend yield	1.5	%	1.9	%	2.2	%
Expected term (in years)	4.5		4.4		4.6
Weighted average risk free interest rate	1.6	%	0.9	%	0.7	%

The total intrinsic value of options exercised during the year ended December 31, 2014 was $108,584,000. The total intrinsic value of options outstanding and of options outstanding and exercisable at December 31, 2014, was $365,160,000 and $202,788,000, respectively. The total intrinsic values are based on the Company’s closing stock price on the last trading day of the applicable year for in-the-money options.

The following table summarizes restricted stock activity for the year ended December 31, 2014:

	Shares Outstanding		Weighted Average Grant Price
Balance as of December 31, 2013	770,967		$	74.47
Granted	407,626		134.34
Vested	(65,020	)	50.29
Canceled/Forfeited	(35,842	)	87.12
Balance as of December 31, 2014	1,077,731		$	98.15
Expected to vest as of December 31, 2014	895,243		$	94.80

The total intrinsic value of restricted stock expected to vest as of December 31, 2014 was $135,396,000. The total intrinsic value is based on the Company’s closing stock price on the last trading day of the year. The weighted average

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fair values at the grant dates of grants awarded under the Omnibus Plan for the years ended December 31, 2014, 2013, and 2012 were $134.34, $88.84, and $70.12, respectively.

Note 3. Employee Savings Plans

Employee Stock Ownership Plan (ESOP). Polaris sponsors a qualified non-leveraged ESOP under which a maximum of 7,200,000 shares of common stock can be awarded. The shares are allocated to eligible participants accounts based on total cash compensation earned during the calendar year. An employee's ESOP account vests equally after two and three years of service and requires no cash payments from the recipient. Participants may instruct Polaris to pay respective dividends directly to the participant in cash or reinvest the dividends into the participants ESOP accounts. Substantially all employees are eligible to participate in the ESOP, with the exception of Company officers. Total expense related to the ESOP was $10,789,000, $9,224,000, and $7,380,000, in 2014, 2013 and 2012, respectively. As of December 31, 2014 there were 3,925,000 shares held in the plan.

Defined contribution plans. Polaris sponsors various defined contribution retirement plans covering substantially all U.S. employees. For the 401(k) defined contribution retirement plan which covers the majority of U.S. employees, the Company matches 100 percent of employee contributions up to a maximum of five percent of eligible compensation. All contributions vest immediately. The cost of these defined contribution retirement plans was $12,486,000, $10,651,000, and $9,318,000, in 2014, 2013 and 2012, respectively.

Supplemental Executive Retirement Plan (SERP). Polaris sponsors a SERP that provides executive officers of the Company an alternative to defer portions of their salary, cash incentive compensation, and Polaris matching contributions. The deferrals and contributions are held in a rabbi trust and are in funds to match the liabilities of the plan. The assets are recorded as trading assets. The assets of the rabbi trust are included in other long-term assets on the consolidated balance sheets and the SERP liability is included in other long-term liabilities on the consolidated balance sheets. The asset and liability balance are both $41,797,000 and $24,711,000 at December 31, 2014, and 2013, respectively.

In November 2013, Polaris amended the SERP to allow executive officers of the Company the opportunity to defer certain restricted stock awards beginning with the annual performance-based award, which is scheduled to vest in February 2015 if certain performance metrics are achieved. After a holding period, the executive officer has the option to diversify the vested award into other funds available under the SERP. The deferrals will be held in a rabbi trust and will be invested in funds to match the liabilities of the SERP. The awards are redeemable in Polaris stock or in cash based upon the occurrence of events not solely within the control of Polaris; therefore, awards probable of vesting, for which the executive has not yet made an election to defer, or awards that have been deferred but have not yet vested and are probable of vesting or have been diversified into other funds are reported as deferred compensation in the temporary equity section of the consolidated balance sheets. The awards recorded in temporary equity are recognized at fair value as though the reporting date is also the redemption date, with any difference from stock-based compensation recorded in retained earnings. At December 31, 2014, 89,444 shares are recorded at a fair value of $13,528,000 in temporary equity, which includes $7,378,000 of compensation cost and $6,150,000 of cumulative fair value adjustment recorded through retained earnings.

Note 4. Financing Agreement

Debt and capital lease obligations and the average related interest rates were as follows (in thousands):

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	Average interest rate at December 31, 2014	Maturity	December 31, 2014		December 31, 2013
Revolving loan facility	—	January 2018	—		$	80,500
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	5.02%	Various through 2029	26,148		7,123
Total debt and capital lease obligations			$	226,148	$	287,623
Less: current maturities			2,528		3,281
Total long-term debt and capital lease obligations			$	223,620	$	284,342

Bank financing. In August 2011, Polaris entered into a $350,000,000 unsecured revolving loan facility. In January 2013, Polaris amended the loan facility to provide more beneficial covenant and interest rate terms and extend the expiration date from August 2016 to January 2018. Interest is charged at rates based on LIBOR or “prime.”

In December 2010, the Company entered into a Master Note Purchase Agreement to issue $25,000,000 of unsecured senior notes due May 2018 and $75,000,000 of unsecured senior notes due May 2021 (collectively, the “Senior Notes”). The Senior Notes were issued in May 2011. In December 2013, the Company entered into a First Supplement to Master Note Purchase Agreement, under which the Company issued $100,000,000 of unsecured senior notes due December 2020.

The unsecured revolving loan facility and the amended Master Note Purchase Agreement contain covenants that require Polaris to maintain certain financial ratios, including minimum interest coverage and maximum leverage ratios. Polaris was in compliance with all such covenants as of December 31, 2014.

The following summarizes activity under Polaris’ credit arrangements (dollars in thousands):

	2014			2013			2012
Total borrowings at December 31	$	200,000		$	280,500		$	100,000
Average outstanding borrowings during year	$	361,715		$	138,400		$	100,000
Maximum outstanding borrowings during year	$	500,000		$	411,000		$	100,000
Interest rate at December 31	3.77		%	2.98		%	4.40		%

The carrying amount of the Company’s long-term debt approximates its fair value as December 31, 2014 and 2013.

Letters of credit. At December 31, 2014, Polaris had open letters of credit totaling $24,894,000. The amounts are primarily related to inventory purchases and are reduced as the purchases are received.

Dealer financing programs. Certain finance companies, including Polaris Acceptance, an affiliate (see Note 8), provide floor plan financing to dealers on the purchase of Polaris products. The amount financed by worldwide dealers under these arrangements at December 31, 2014, was approximately $1,337,214,000. Polaris has agreed to repurchase products repossessed by the finance companies up to an annual maximum of no more than 15 percent of the average month-end balances outstanding during the prior calendar year. Polaris’ financial exposure under these arrangements is limited to the difference between the amount paid to the finance companies for repurchases and the amount received on the resale of the repossessed product. No material losses have been incurred under these agreements during the periods presented. As a part of its marketing program, Polaris contributes to the cost of dealer financing up to certain limits and subject to certain conditions. Such expenditures are included as an offset to sales in the accompanying consolidated statements of income.

Note 5. Goodwill and Other Intangible Assets

ASC Topic 350 prohibits the amortization of goodwill and intangible assets with indefinite useful lives. Topic 350 requires that these assets be reviewed for impairment at least annually. An impairment charge for goodwill is recognized only when the estimated fair value of a reporting unit, including goodwill, is less than its carrying amount. The Company performed the annual impairment test as of December 31, 2014 and 2013. The results of the impairment test indicated

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that no goodwill or intangible impairment existed as of the test date. The Company has had no historical impairments of goodwill. In accordance with Topic 350, the Company will continue to complete an impairment analysis on an annual basis or more frequently if an event or circumstance that would more likely than not reduce the fair value of a reporting unit below its carrying amount occurs. Goodwill and other intangible assets, net, consist of $123,031,000 and $126,697,000 of goodwill and $100,935,000 and $103,011,000 of intangible assets, net of accumulated amortization, for the periods ended December 31, 2014 and 2013, respectively.

Additions to goodwill and other intangible assets in 2014 relate primarily to the acquisition of Kolpin Outdoors, Inc. ("Kolpin") in April 2014, and the acquisition of certain assets of LSI Products Inc. and Armor Holdings, LLC. (collectively, "Pro Armor") in November 2014. Kolpin is a leading aftermarket brand delivering purpose-built and universal-fit ORV accessories and lifestyle products. Pro Armor is an industry-leading brand in performance side-by-side accessories.

For both acquisitions, the respective aggregate purchase price was allocated on a preliminary basis to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Kolpin and Pro Armor's financial results are included in the Company’s consolidated results from the respective dates of acquisition. Pro forma financial results are not presented as the acquisitions are not material to the consolidated financial statements. As of December 31, 2014, the purchase price allocation for Pro Armor remains preliminary.

The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 are as follows (in thousands):

	2014			2013
Balance as of beginning of year	$	126,697		$	56,324
Goodwill acquired during the period	7,456			66,085
Currency translation effect on foreign goodwill balances	(11,122		)	4,288
Balance as of end of year	$	123,031		$	126,697

For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2014 and 2013 are as follows (in thousands):

	2014						2013
	Gross Amount			Accumulated Amortization			Gross Amount		Accumulated Amortization
Other intangible assets, beginning	$	116,279		$	(13,268	)	$	54,907	$	(4,015	)
Intangible assets acquired during the period	16,050			—			57,388		—
Amortization expense	—			(11,599		)	—		(9,178		)
Currency translation effect on foreign balances	(8,236		)	1,709			3,984		(75		)
Other intangible assets, ending	$	124,093		$	(23,158	)	$	116,279	$	(13,268	)

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The components of other intangible assets were as follows (in thousands):

December 31, 2014	Estimated Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net
Non-compete agreements	5	$	540	$	(293	)	$	247
Dealer/customer related	7	62,758		(16,361		)	46,397
Developed technology	5-7	14,571		(6,504		)	8,067
Total amortizable		77,869		(23,158		)	54,711
Non-amortizable—brand/trade names		46,224		—			46,224
Total other intangible assets, net		$	124,093	$	(23,158	)	$	100,935
December 31, 2013	Estimated Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net
Non-compete agreements	5	$	540	$	(185	)	$	355
Dealer/customer related	7	59,244		(8,608		)	50,636
Developed technology	5-7	15,307		(4,475		)	10,832
Total amortizable		75,091		(13,268		)	61,823
Non-amortizable—brand/trade names		41,188		—			41,188
Total other intangible assets, net		$	116,279	$	(13,268	)	$	103,011

Amortization expense for intangible assets for the year ended December 31, 2014 and 2013 was $11,599,000 and $9,178,000. Estimated amortization expense for 2015 through 2019 is as follows: 2015, $11,300,000; 2016, $11,300,000; 2017, $11,000,000; 2018, $9,500,000; 2019, $8,200,000; and after 2019, $3,400,000. The preceding expected amortization expense is an estimate and actual amounts could differ due to additional intangible asset acquisitions, changes in foreign currency rates or impairment of intangible assets.

Note 6. Income Taxes

Polaris’ income from continuing operations before income taxes was generated from its United States and foreign operations as follows (in thousands):

	For the Years Ended December 31,
	2014		2013		2012
United States	$	666,323	$	535,265	$	458,635
Foreign	32,994		39,164		21,208
Income from continuing operations before income taxes	$	699,317	$	574,429	$	479,843

Components of Polaris’ provision for income taxes for continuing operations are as follows (in thousands):

	For the Years Ended December 31,
	2014			2013			2012
Current:
Federal	$	255,299		$	167,690		$	169,833
State	20,438			12,942			15,366
Foreign	21,584			15,457			8,593
Deferred	(52,033		)	(2,729		)	(26,259		)
Total provision for income taxes for continuing operations	$	245,288		$	193,360		$	167,533

Reconciliation of the Federal statutory income tax rate to the effective tax rate is as follows:

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	For the Years Ended December 31,
	2014		2013		2012
Federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	1.5		1.5		1.8
Domestic manufacturing deduction	(1.1	)	(1.0	)	(1.5	)
Research and development tax credit	(1.1	)	(2.2	)	—
Valuation allowance for foreign subsidiaries net operating losses	—		0.3		—
Other permanent differences	0.8		0.1		(0.4	)
Effective income tax rate for continuing operations	35.1	%	33.7	%	34.9	%

In December 2014, the President of the United States signed the Tax Increase Prevention Act, which retroactively reinstated the research and development tax credit for 2014. In January 2013, the President of the United States signed the American Taxpayers Relief Act of 2012, which reinstated the research and development tax credit. As a result, the impact of both the 2012 and 2013 research and development tax credits were recorded in the 2013 tax provision.

Undistributed earnings relating to certain non-U.S. subsidiaries of approximately $105,782,000 and $75,487,000 at December 31, 2014 and 2013, respectively, are considered to be permanently reinvested; accordingly, no provision for U.S. federal income taxes has been provided thereon. If the Company were to distribute these earnings, it would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits reflecting the amounts paid to non-U.S. taxing authorities) and withholding taxes payable to the non-U.S. countries. Determination of the unrecognized deferred U.S. income tax liability related to these undistributed earnings is not practicable due to the complexities associated with this hypothetical calculation.

Polaris utilizes the liability method of accounting for income taxes whereby deferred taxes are determined based on the estimated future tax effects of differences between the financial statement and tax bases of assets and liabilities given the provisions of enacted tax laws. The net deferred income taxes consist of the following (in thousands):

	December 31,
	2014			2013
Current deferred income taxes:
Inventories	$	9,034		$	6,306
Accrued expenses	104,279			87,157
Derivative instruments	864			(107		)
Total current	114,177			93,356
Noncurrent deferred income taxes:
Cost in excess of net assets of business acquired	(13,111		)	(13,594		)
Property and equipment	(28,921		)	(36,069		)
Compensation payable in common stock	58,446			42,528
Net operating loss carryforwards and impairments	12,693			5,782
Valuation allowance	(6,097		)	(5,059		)
Total noncurrent	23,010			(6,412		)
Total net deferred income tax asset	$	137,187		$	86,944

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At December 31, 2014, the Company had available unused international and acquired federal net operating loss carryforwards of $32,640,000. The net operating loss carryforwards will expire at various dates from 2015 to 2033, with certain jurisdictions having indefinite carryforward terms.

Polaris classified liabilities related to unrecognized tax benefits as long-term income taxes payable in the accompanying consolidated balance sheets in accordance with ASC Topic 740. Polaris recognizes potential interest and penalties related to income tax positions as a component of the provision for income taxes on the consolidated statements of income. Reserves related to potential interest are recorded as a component of long-term income taxes payable. The entire balance of unrecognized tax benefits at December 31, 2014, if recognized, would affect the Company’s effective tax rate. The Company does not anticipate that total unrecognized tax benefits will materially change in the next twelve months. Tax years 2010 through 2014 remain open to examination by certain tax jurisdictions to which the Company is subject. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):

	For the Years Ended December 31,
	2014			2013
Balance at January 1,	$	13,199		$	6,704
Increases due to acquisition opening balance sheet positions	—			6,420
Gross increases for tax positions of prior years	55			561
Gross increases for tax positions of current year	1,456			3,755
Decreases due to settlements and other prior year tax positions	(2,346		)	(3,310		)
Decreases for lapse of statute of limitations	(1,586		)	(1,344		)
Currency translation effect on foreign balances	(942		)	413
Balance at December 31,	9,836			13,199
Reserves related to potential interest at December 31,	732			1,093
Unrecognized tax benefits at December 31,	$	10,568		$	14,292

Note 7. Shareholders’ Equity

Stock repurchase program. The Polaris Board of Directors has authorized the cumulative repurchase of up to 75,000,000 shares of the Company’s common stock. In addition, in 2013 the Polaris Board of Directors authorized the one-time repurchase of all the shares of Polaris stock owned by Fuji Heavy Industries Ltd. ("Fuji"). On November 12, 2013, Polaris entered into and executed a Share Repurchase Agreement with Fuji under which Polaris purchased 3,960,000 shares of Polaris stock held by Fuji for an aggregate purchase price of $497,474,000.

As of December 31, 2014, 1,050,000 shares remain available for repurchases under the Board’s authorization. During 2014, Polaris paid $81,812,000 to repurchase and retire approximately 554,000 shares. During 2013, Polaris paid $530,033,000 to repurchase and retire approximately 4,337,000 shares, and in 2012 Polaris paid $127,525,000 to repurchase and retire approximately 1,649,000 shares.

Shareholder rights plan. During 2000, the Polaris Board of Directors adopted a shareholder rights plan. Under the plan, a dividend of preferred stock purchase rights will become exercisable if a person or group should acquire 15 percent or more of the Company’s stock. The dividend will consist of one purchase right for each outstanding share of the Company’s common stock held by shareholders of record on June 1, 2000. The shareholder rights plan was amended and restated in April 2010. The amended and restated rights agreement extended the final expiration date of the rights from May 2010 to April 2020, expanded the definition of “Beneficial Owner” to include certain derivative securities relating to the common stock of the Company and increased the purchase price for the rights from $75 to $125 per share. The Board of Directors may redeem the rights earlier for $0.01 per right.

Stock purchase plan. Polaris maintains an employee stock purchase plan (“Purchase Plan”). A total of 3,000,000 shares of common stock are reserved for this plan. The Purchase Plan permits eligible employees to purchase common stock monthly at 95 percent of the average of the beginning and end of month stock prices. As of December 31, 2014, approximately 1,261,000 shares had been purchased under the Purchase Plan.

Dividends. Quarterly and total year cash dividends declared per common share for the year ended December 31, 2014 and 2013 were as follows:

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	For the Years Ended December 31,
	2014		2013
Quarterly dividend declared and paid per common share	$	0.48	$	0.42
Total dividends declared and paid per common share	$	1.92	$	1.68

On January 29, 2015, the Polaris Board of Directors declared a regular cash dividend of $0.53 per share payable on March 16, 2015 to holders of record of such shares at the close of business on March 2, 2015.

Net income per share. Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period, including shares earned under The Deferred Compensation Plan for Directors (“Director Plan”), the ESOP and deferred stock units under the 2007 Omnibus Incentive Plan (“Omnibus Plan”). Diluted earnings per share is computed under the treasury stock method and is calculated to compute the dilutive effect of outstanding stock options issued under the 1995 Stock Option Plan and the 2003 Non-Employee Director Stock Option Plan (collectively, the “Option Plans”) and certain shares issued under the Omnibus Plan. A reconciliation of these amounts is as follows (in thousands):

	For the Years Ended December 31,
	2014	2013	2012
Weighted average number of common shares outstanding	65,904	68,209	68,409
Director Plan and deferred stock units	196	242	341
ESOP	75	84	99
Common shares outstanding—basic	66,175	68,535	68,849
Dilutive effect of restricted stock awards	359	228	181
Dilutive effect of stock option awards	1,695	1,783	1,975
Common and potential common shares outstanding—diluted	68,229	70,546	71,005

During the 2014, 2013 and 2012 the number of options that could potentially dilute earnings per share on a fully diluted basis that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive were 581,000, 23,000 and 872,000, respectively.

Accumulated other comprehensive income (loss). Changes in the accumulated other comprehensive income (loss) balance is as follows (in thousands):

	Foreign Currency Items			Cash Flow Hedging Derivatives			Accumulated Other Comprehensive Income (loss)
Balance as of December 31, 2013	$	18,582		$	179		$	18,761
Reclassification to the income statement	—			(5,469		)	(5,469		)
Change in fair value	(44,371		)	3,838			(40,533		)
Balance as of December 31, 2014	$	(25,789	)	$	(1,452	)	$	(27,241	)

The table below provides data about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive income (loss) into the income statement for cash flow derivatives designated as hedging instruments for the year ended December 31, 2014 and 2013 (in thousands):

Derivatives in Cash Flow Hedging Relationships	Location of Gain (Loss) Reclassified from Accumulated OCI into Income	For the Years Ended December 31,
		2014			2013
Foreign currency contracts	Other (income), net	$	(5,641	)	$	(1,671	)
Foreign currency contracts	Cost of sales	172			977
Total		$	(5,469	)	$	(694	)

The net amount of the existing gains or losses at December 31, 2014 that is expected to be reclassified into the income statement within the next 12 months is expected to not be material. See Note 11 for further information regarding Polaris' derivative activities.

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Note 8. Financial Services Arrangements

Polaris Acceptance, a joint venture between Polaris and GE Commercial Distribution Finance Corporation, an indirect subsidiary of General Electric Capital Corporation, which is supported by a partnership agreement between their respective wholly owned subsidiaries, finances substantially all of Polaris' United States sales whereby Polaris receives payment within a few days of shipment of the product. Polaris’ subsidiary has a 50 percent equity interest in Polaris Acceptance. Polaris Acceptance sells a majority of its receivable portfolio to a securitization facility (the "Securitization Facility") arranged by General Electric Capital Corporation. The sale of receivables from Polaris Acceptance to the Securitization Facility is accounted for in Polaris Acceptance’s financial statements as a “true-sale” under Accounting Standards Codification Topic 860. Polaris’ allocable share of the income of Polaris Acceptance has been included as a component of income from financial services in the accompanying consolidated statements of income. The partnership agreement is effective through February 2017.

Polaris’ total investment in Polaris Acceptance of $89,107,000 at December 31, 2014 is accounted for under the equity method, and is recorded in investment in finance affiliate in the accompanying consolidated balance sheets. At December 31, 2014, the outstanding amount of net receivables financed for dealers under this arrangement was $1,141,068,000, which included $337,088,000 in the Polaris Acceptance portfolio and $803,980,000 of receivables within the Securitization Facility ("Securitized Receivables").

Polaris has agreed to repurchase products repossessed by Polaris Acceptance up to an annual maximum of 15 percent of the aggregate average month-end outstanding Polaris Acceptance receivables and Securitized Receivables during the prior calendar year. For calendar year 2014, the potential 15 percent aggregate repurchase obligation was approximately $120,815,000. Polaris’ financial exposure under this arrangement is limited to the difference between the amounts unpaid by the dealer with respect to the repossessed product plus costs of repossession and the amount received on the resale of the repossessed product. No material losses have been incurred under this agreement during the periods presented.

Summarized financial information for Polaris Acceptance reflecting the effects of the Securitization Facility is presented as follows (in thousands):

	For the Years Ended December 31,
	2014		2013		2012
Revenues	$	40,968	$	13,010	$	8,811
Interest and operating expenses	3,678		3,044		1,013
Net income	$	37,290	$	9,966	$	7,798

	As of December 31,
	2014		2013
Finance receivables, net	$	337,088	$	226,742
Other assets	122		172
Total Assets	$	337,210	$	226,914
Notes payable	$	155,436	$	85,096
Other liabilities	3,560		3,384
Partners’ capital	178,214		138,434
Total Liabilities and Partners’ Capital	$	337,210	$	226,914

Polaris has agreements with Capital One, Sheffield, Synchrony Bank and FreedomRoad under which these financial institutions provide financing to end consumers of Polaris products. Polaris' income generated from these agreements has been included as a component of income from financial services in the accompanying consolidated statements of income.

Polaris also administers and provides extended service contracts to consumers and certain insurance contracts to dealers and consumers through various third-party suppliers. Polaris does not retain any warranty, insurance or financial risk under any of these arrangements. Polaris’ service fee income generated from these arrangements has been included as a component of income from financial services in the accompanying consolidated statements of income.

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Note 9. Investment in Other Affiliates

The Company has certain investments in nonmarketable securities of strategic companies. As of December 31, 2014 and 2013, these investments are comprised of investments in Eicher-Polaris Private Limited (EPPL) and Brammo, Inc. ("Brammo"), and are recorded as components of other long-term assets in the accompanying consolidated balance sheets.

EPPL is a joint venture established in 2012 with Eicher Motors Limited ("Eicher"). Polaris and Eicher each control 50 percent of the joint venture, which is intended to design, develop and manufacture a full range of new vehicles for India and other emerging markets. The investment in EPPL is accounted for under the equity method, with Polaris’ proportionate share of income or loss recorded within the consolidated financial statements on a one month lag due to financial information not being available timely. The overall investment is expected to be approximately $50,000,000, shared equally with Eicher over a three year period. As of December 31, 2014 and 2013, the carrying value of the Company's investment in EPPL was $14,601,000 and $6,456,000, respectively. Through December 31, 2014, Polaris has invested $21,878,000 in the joint venture. Polaris' share of EPPL loss for the years ended December 31, 2014 and 2013 was $4,124,000 and $2,414,000, respectively, and is included in equity in loss of other affiliates on the consolidated statements of income.

Brammo is a privately held designer and developer of electric vehicles, which Polaris has invested in since 2011. The investment in Brammo is accounted for under the cost method. Brammo is in the early stages of designing, developing, and selling electric vehicle powertrains. As such, a risk exists that Brammo may not be able to secure sufficient financing to reach viability through cash flow from operations. In January 2015, Polaris acquired the electric motorcycle business from Brammo. Brammo will continue to be a designer and developer of electric vehicle powertrains.

Polaris will impair or write off an investment and recognize a loss if and when events or circumstances indicate there is impairment in the investment that is other-than-temporary. When necessary, Polaris evaluates investments in nonmarketable securities for impairment, utilizing level 3 fair value inputs. During 2014 and 2013, Polaris recorded an immaterial impairment expense within other expense (income), net in the consolidated statements of income, and reduced the Brammo investment.

Note 10. Commitments and Contingencies

Product liability. Polaris is subject to product liability claims in the normal course of business. In 2012, Polaris purchased excess insurance coverage for catastrophic product liability claims for incidents occurring after the policy date. Polaris self-insures product liability claims before the policy date and up to the purchased catastrophic insurance coverage after the policy date. The estimated costs resulting from any losses are charged to operating expenses when it is probable a loss has been incurred and the amount of the loss is reasonably determinable. The Company utilizes historical trends and actuarial analysis tools, along with an analysis of current claims, to assist in determining the appropriate loss reserve levels. At December 31, 2014, the Company had an accrual of $17,327,000 for the probable payment of pending claims related to continuing operations product liability litigation associated with Polaris products. This accrual is included as a component of other accrued expenses in the accompanying consolidated balance sheets.

As previously disclosed, the Company was party to a lawsuit in which the plaintiff was seriously injured in a 2008 accident involving a collision between a 2001 Polaris Virage personal watercraft and a boat. On July 23, 2013, a Los Angeles County jury returned an unfavorable verdict against the Company. The jury returned a verdict finding that the accident was caused by multiple actions, the majority of which was attributed to the negligence of the other boat driver, with the balance attributed to the reckless behavior of the driver of the Virage and the design of the Virage. The jury awarded approximately $21,000,000 in damages, of which Polaris' liability was $10,000,000. In the third quarter of 2013, the Company reported a loss from discontinued operations, net of tax, of $3,777,000 for an additional provision to accrue Polaris' portion of the jury award and legal fees. The amount was fully paid in 2013. In September 2004, the Company announced its decision to cease manufacturing marine products. Since then, any material financial results of that division have been recorded in discontinued operations.

Litigation. Polaris is a defendant in lawsuits and subject to other claims arising in the normal course of business. In the opinion of management, it is unlikely that any legal proceedings pending against or involving Polaris will have a material adverse effect on Polaris' financial position or results of operations.

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Contingent purchase price. As a component of certain past acquisition agreements, Polaris has committed to make additional payments to certain sellers contingent upon either the passage of time or certain financial performance criteria. Polaris initially records the fair value of each commitment as of the respective opening balance sheet, and each reporting period the fair value is evaluated, using level 3 inputs, with the change in value reflected in the consolidated statements of income. As of December 31, 2014 and 2013 the fair value of contingent purchase price commitments was $27,908,000 and $18,249,000, respectively, recorded in other long-term liabilities in the consolidated balance sheets.

Leases. Polaris leases buildings and equipment under non-cancelable operating leases. Total rent expense under all operating lease agreements was $13,734,000, $10,656,000, and $10,349,000 for 2014, 2013 and 2012, respectively.

A property lease agreement signed in 2013 for a manufacturing facility which Polaris began occupying in Opole, Poland commenced in February 2014. The Poland property lease is accounted for as a capital lease.

Future minimum annual lease payments under capital and operating leases with noncancelable terms in excess of one year as of December 31, 2014, are as follows (in thousands):

	Capital Leases		Operating Leases
2015	$	3,915	$	9,576
2016	3,281		5,098
2017	2,903		3,326
2018	2,403		1,945
2019	2,203		1,173
Thereafter	23,639		1,403
Total future minimum lease obligation	$	38,344	$	22,521

Note 11. 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 December 31, 2014, Polaris had the following open foreign currency contracts (in thousands):

Foreign Currency	Notional Amounts (in U.S. dollars)		Net Unrealized Gain (Loss)
Australian Dollar	$	3,491	$	391
Canadian Dollar	40,550		38
Japanese Yen	22,201		(1,008		)
Mexican Peso	34,060		(1,991		)
Total	$	100,302	$	(2,570	)

These contracts, with maturities through December 31, 2015, 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 (loss) in shareholders’ equity.

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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 table below summarizes the carrying values of derivative instruments as of December 31, 2014 and 2013 (in thousands):

	Carrying Values of Derivative Instruments as of December 31, 2014
	Fair Value— Assets		Fair Value— (Liabilities)			Derivative Net Carrying Value
Derivatives designated as hedging instruments
Foreign exchange contracts(1)	$	534	$	(3,104	)	$	(2,570	)
Total derivatives designated as hedging instruments	$	534	$	(3,104	)	$	(2,570	)
Commodity contracts(1)	$	—	$	(4,609	)	$	(4,609	)
Total derivatives not designated as hedging instruments	$	—	$	(4,609	)	$	(4,609	)
Total derivatives	$	534	$	(7,713	)	$	(7,179	)

	Carrying Values of Derivative Instruments as of December 31, 2013
	Fair Value— Assets		Fair Value— (Liabilities)			Derivative Net Carrying Value
Derivatives designated as hedging instruments
Foreign exchange contracts(1)	$	1,194	$	(1,203	)	$	(9	)
Total derivatives designated as hedging instruments	$	1,194	$	(1,203	)	$	(9	)
Commodity contracts(1)	$	46	$	(16	)	$	30
Total derivatives not designated as hedging instruments	$	46	$	(16	)	$	30
Total derivatives	$	1,240	$	(1,219	)	$	21

(1) Assets are included in prepaid expenses and other and liabilities are included in other accrued expenses on the accompanying consolidated balance sheets.

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 (loss) 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 the effective portion of derivative instruments designated as cash flow hedges included in accumulated other comprehensive income (loss) for the years ended December 31, 2014 and 2013 (in thousands):

Derivatives in Cash Flow Hedging Relationships	For the Years Ended December 31,
	2014			2013
Interest rate contracts	—			$	(26	)
Foreign currency contracts	$	(1,631	)	1,636
Total	$	(1,631	)	$	1,610

See Note 7 for information about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive income (loss) into the income statement for derivative instruments designated as hedging instruments. The ineffective portion of foreign currency contracts was not material for the years ended December 31, 2014 and 2013.

The Company recognized a loss of $4,820,000 and $878,000 in cost of sales on commodity contracts not designated as hedging instruments in 2014 and 2013, respectively.

64

Note 12. Segment Reporting

Polaris has reviewed ASC Topic 280 and determined that the Company meets the aggregation criteria outlined since the Company’s segments have similar (1) economic characteristics, (2) product and services, (3) production processes, (4) customers, (5) distribution channels, and (6) regulatory environments. Therefore, the Company reports as a single reportable business segment.

Sales to external customers based on the location of the customer and property and equipment, net, by geography are presented in the tables below (in thousands):

	For the Years Ended December 31,
	2014		2013		2012
United States	$	3,339,905	$	2,721,300	$	2,310,943
Canada	454,608		463,316		438,208
Other foreign countries	685,135		592,452		460,631
Consolidated sales	$	4,479,648	$	3,777,068	$	3,209,782

	As of December 31,
	2014		2013
United States	$	432,614	$	349,224
Mexico	49,064		52,450
Other foreign countries	73,750		53,493
Consolidated property and equipment, net	$	555,428	$	455,167

Note 13. Subsequent Events

On January 9, 2015, the Company announced plans to build a new production facility in Huntsville, Alabama to provide additional capacity and flexibility. The 600,000 square-foot facility will focus on off-road vehicle production. The Company will break ground on the facility in the first quarter of 2015 with completion expected in the first half of 2016.

On January 29, 2015, the Board of Directors approved an increase in the Company’s common stock repurchase authorization by 4.0 million shares. The additional share repurchase authorization, together with the 1.1 million shares remaining available for repurchase under the prior authorization, represents approximately eight percent of the shares of Polaris common stock currently outstanding.

The Company has evaluated events subsequent to the balance sheet date through the date the consolidated financial statements have been filed. There were no other subsequent events which required recognition or disclosure in the consolidated financial statements.

Note 14. Quarterly Financial Data (unaudited)

	Sales		Gross profit		Net income from continuing operations		Net income		Diluted net income per share from continuing operations		Diluted net income per share
	(In thousands, except per share data)
2014
First Quarter	$	888,346	$	258,417	$	80,901	$	80,901	$	1.19	$	1.19
Second Quarter	1,013,959		304,914		96,905		96,905		1.42		1.42
Third Quarter	1,302,343		388,274		140,826		140,826		2.06		2.06
Fourth Quarter	1,275,000		367,573		135,397		135,397		1.98		1.98
Totals	$	4,479,648	$	1,319,178	$	454,029	$	454,029	$	6.65	$	6.65
2013
First Quarter	$	745,909	$	216,648	$	75,464	$	75,464	$	1.07	$	1.07
Second Quarter	844,800		252,338		80,004		80,004		1.13		1.13
Third Quarter	1,102,649		334,785		116,921		113,144		1.64		1.59
Fourth Quarter	1,083,710		317,108		108,680		108,680		1.56		1.56
Totals	$	3,777,068	$	1,120,879	$	381,069	$	377,292	$	5.40	$	5.35

65

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Not applicable.

Item 9A. Controls and Procedures

The Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and its Vice President—Finance and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based upon that evaluation, the Company’s Chief Executive Officer along with the Company’s Vice President—Finance and Chief Financial Officer concluded that, as of the end of the period covered by this Annual Report on Form 10-K, the Company’s disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Securities Exchange Act of 1934, as amended, is (1) recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (2) accumulated and communicated to the Company’s management including its Chief Executive Officer and Vice President—Finance and Chief Financial Officer, in a manner that allows timely decisions regarding required disclosure. No changes have occurred during the period covered by this report or since the evaluation date that would have a material effect on the disclosure controls and procedures.

The Company’s internal control report is included in this report after Item 8, under the caption “Management’s Report on Company’s Internal Control over Financial Reporting.”

Item 9B. Other Information

Not applicable.

PART III

Item 10. Directors, Executive Officers and Corporate Governance

The sections entitled "Proposal 1 – Election of Directors—Information Concerning Nominees and Directors," "Corporate Governance—Committees of the Board and Meetings—Audit Committee" and "Section 16(a) Beneficial Ownership Reporting Compliance" in the Polaris definitive Proxy Statement to be filed on or about March 13, 2015 (the "2015 Proxy Statement"), are incorporated herein by reference. See also Item 1 "Executive Officers of the Registrant" on page 12 in Part I hereof.

We have adopted a Code of Business Conduct and Ethics applicable to all employees, including our Principal Executive Officer, Principal Financial Officer, all other executive officers and the Board of Directors. A copy of the Polaris Code of Business Conduct and Ethics is available on our website at www.polaris.com.

Any amendments to, or waivers for executive officers or directors of, these ethics codes will be disclosed on our website promptly following the date of such amendment or waiver.

Item 11. Executive Compensation

The sections entitled "Corporate Governance—Compensation Committee Interlocks and Insider Participation," "Compensation Discussion and Analysis," "Compensation Committee Report," "Executive Compensation" and "Director Compensation" in the Company's 2015 Proxy Statement are incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The sections entitled “Security Ownership of Certain Beneficial Owners and Management” and "Equity Compensation Plan Information" in the Company’s 2015 Proxy Statement are incorporated herein by reference.

66

Item 13. Certain Relationships and Related Transactions, and Director Independence

The sections entitled "Corporate Governance—Corporate Governance Guidelines and Independence" and "Corporate Governance—Certain Relationships and Related Transactions" in the Company’s 2015 Proxy Statement are incorporated herein by reference.

Item 14. Principal Accounting Fees and Services

The section entitled "Fees Paid to Independent Registered Public Accounting Firm" in the Company’s 2015 Proxy Statement is incorporated herein by reference.

67

PART IV

Item 15. Exhibits, Financial Statement Schedules

(a) The following documents are filed as part of this report:

(1) Financial Statements

The financial statements listed in the Index to Financial Statements on page 38 are included in Part II of this Form 10-K.

(2) Financial Statement Schedules

Schedule II—Valuation and Qualifying Accounts is included on page 70 of this report.

All other supplemental financial statement schedules have been omitted because they are not applicable or are not required or the information required to be set forth therein is included in the Consolidated Financial Statements or Notes thereto.

(3) Exhibits

The Exhibits to this report are listed in the Exhibit Index to Annual Report on Form 10-K on pages 71 to 74.

A copy of any of these Exhibits will be furnished at a reasonable cost to any person who was a shareholder of the Company as of February 20, 2015, upon receipt from any such person of a written request for any such exhibit. Such request should be sent to Polaris Industries Inc., 2100 Highway 55, Medina, Minnesota 55340, Attention: Investor Relations.

(b) Exhibits

Included in Item 15(a)(3) above.

(c) Financial Statement Schedules

Included in Item 15(a)(2) above.

68

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Minneapolis, State of Minnesota on February 20, 2015.

POLARIS INDUSTRIES INC.
By:	/S/    SCOTT W. WINE
	Scott W. Wine
	Chairman and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated.

Signature		Title	Date
/S/    SCOTT W. WINE		Chairman and Chief Executive Officer (Principal Executive Officer)	February 20, 2015
Scott W. Wine
/S/    MICHAEL W. MALONE		Vice President — Finance and Chief Financial Officer (Principal Financial and Accounting Officer)	February 20, 2015
Michael W. Malone
*		Director	February 20, 2015
Annette K. Clayton
*		Director	February 20, 2015
Brian C. Cornell
*		Director	February 20, 2015
Kevin M. Farr
*		Director	February 20, 2015
Gary E. Hendrickson
*		Director	February 20, 2015
Bernd F. Kessler
*		Director	February 20, 2015
R. M. Schreck
*		Lead Director	February 20, 2015
John P. Wiehoff
*By:	/s/    SCOTT W. WINE		February 20, 2015
	(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.

69

POLARIS INDUSTRIES INC.

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS

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)
2012: Deducted from asset accounts—Allowance for doubtful accounts receivable	$	4,473	$	375	365		$	(945	)	$	4,268
2013: Deducted from asset accounts—Allowance for doubtful accounts receivable	$	4,268	$	75	$	2,192	$	(640	)	$	5,895
2014: Deducted from asset accounts—Allowance for doubtful accounts receivable	$	5,895	$	2,347	$	265	$	(1,083	)	$	7,424

(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)
2012: Deducted from asset accounts—Allowance for obsolete inventory	$	15,943	$	6,258	$	15	$	(4,859	)	$	17,357
2013: Deducted from asset accounts—Allowance for obsolete inventory	$	17,357	$	9,966	$	2,423	$	(8,143	)	$	21,603
2014: Deducted from asset accounts—Allowance for obsolete inventory	$	21,603	$	12,868	$	600	$	(8,900	)	$	26,171

(2) Inventory disposals, net of recoveries.

70

POLARIS INDUSTRIES INC. EXHIBIT INDEX TO ANNUAL REPORT ON FORM 10-K For Fiscal Year Ended December 31, 2014
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.
.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.
4.a	Specimen Stock Certificate of the Company, incorporated by reference to Exhibit 4 to the Company’s Registration Statement on Form S-4/A, filed November 21, 1994 (No. 033-55769).
.b	Amended and Restated Rights Agreement, dated as of April 29, 2010 by and between the Company and Wells Fargo Bank Minnesota, N.A., as Rights Agent, incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed April 30, 2010.
.c	Master Note Purchase Agreement by and among Polaris Industries Inc. and the purchasers party thereto, dated December 13, 2010, incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed December 15, 2010.
.d	First Amendment to Master Note Purchase Agreement effective as of August 18, 2011, incorporated by reference to Exhibit 4.c to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.
.e	First Supplement to Master Note Purchase Agreement effective as of December 19, 2013, incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K, filed December 20, 2013.
10.a	Amendments to the Polaris Industries Inc. Supplemental Retirement/Savings Plan, as amended and restated effective July 23, 2014, incorporated by reference to Exhibit 10.a to the Company’s Quarterly Report on Form 10-Q filed October 29, 2014.*
.b	Polaris Industries Inc. 1995 Stock Option Plan, as amended and restated, incorporated by reference to Exhibit 99.1 to the Company’s Registration Statement on Form S-8, filed October 31, 2005 (No. 333-129335).*
.c	Form of Nonqualified Stock Option Agreement and Notice of Exercise Form for options granted under the Polaris Industries Inc. 1995 Stock Option Plan, as amended and restated, incorporated by reference to Exhibit 99.2 to the Company’s Registration Statement on Form S-8, filed October 31, 2005 (No. 333-129335).*
.d	Amendment to the Polaris Industries Inc. Deferred Compensation Plan for Directors, as amended and restated, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on May 12, 2009, subsequently amended on July 25, 2012, incorporated by reference to Exhibit 10.a to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012.*
.e	Form of Change of Control Agreement entered into with executive officers of Company, incorporated by reference to Exhibit 10(q) to the Company’s Annual Report on Form 10-K for the year ended December 31, 1996.*
.f	Form of Amendment to the Form of Change in Control Agreement entered into with executive officers of Company, incorporated by reference to Exhibit 10.f to the Company’s Current Report on Form 8-K filed October 31, 2007.*
.g	Polaris Industries Inc. Senior Executive Annual Incentive Compensation Plan, as amended and restated effective April 24, 2014, incorporated by reference to Annex A to the Company’s Proxy Statement for the 2014 Annual Meeting of Shareholders filed on March 7, 2014.*
.h	Polaris Industries Inc. Long Term Incentive Plan, as amended and restated effective January 22, 2009 and as further amended effective January 20, 2011, incorporated by reference to Annex B to the Company’s Proxy Statement for the 2011 Annual Meeting of Shareholders filed March 10, 2011.*

71

POLARIS INDUSTRIES INC. EXHIBIT INDEX TO ANNUAL REPORT ON FORM 10-K For Fiscal Year Ended December 31, 2014 (cont.)
.i	Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 28, 2011), incorporated by reference to Annex A to the Company’s Proxy Statement for the 2011 Annual Meeting of Shareholders filed March 10, 2011.*
.j	Form of Performance Based Restricted Share Award Agreement for performance based restricted shares awarded to named executive officers in 2008 under the Polaris Industries Inc. 2007 Omnibus Incentive Plan, as amended and restated, incorporated by reference to Exhibit 10.a to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009.*
.k	Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 28, 2011) Performance Based Restricted Share Award Agreement form (Single Trigger), incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed on May 3, 2011.*
.l	Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 28, 2011) Performance Based Restricted Share Award Agreement form (Double Trigger), incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K filed on May 3, 2011.*
.m	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.*
.n	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.*
.o	Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 28, 2011) Nonqualified Stock Option Agreement form (Single Trigger), incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on May 3, 2011.*
.p	Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 28, 2011) Nonqualified Stock Option Agreement form (Double Trigger), incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on May 3, 2011.*
.q	Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 28, 2011) Restricted Stock Award Agreement, incorporated by reference to Exhibit 10.6 to the Company’s Current Report on Form 8-K filed on May 3, 2011.*
.r	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.*
.s	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.*
.t	Employment Offer Letter dated April 4, 2005 by and between the Company and Bennett J. Morgan, incorporated by reference to Exhibit 10.y to the Company’s Current Report on Form 8-K, filed April 18, 2005.*
.u	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.*
.v	Employment Offer Letter dated January 12, 2011 by and between the Company and James P. Williams, incorporated by reference to Exhibit 10.cc to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.*
.w	Employment Offer Letter dated September 15, 2014 by and between the Company and Kenneth J. Pucel.*
.x	Form of Severance Agreement entered into with executive officers of the Company, incorporated by reference to Exhibit 10.dd to the Company’s Current Report on Form 8-K filed January 17, 2008.*

72

POLARIS INDUSTRIES INC. EXHIBIT INDEX TO ANNUAL REPORT ON FORM 10-K For Fiscal Year Ended December 31, 2014 (cont.)
.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	Form of Severance Agreement entered into with Bennett J. Morgan, incorporated by reference to Exhibit 10.ee to the Company’s Current Report on Form 8-K filed January 17, 2008.*
.aa	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.
.bb	Credit Agreement, dated as of August 18, 2011, by and among the Company, one or more of its foreign subsidiaries designated thereafter as foreign borrowers, the lenders identified therein, U.S. Bank National Association, as Administrative Agent, Lead Arranger and Lead Book Runner, RBC Capital Markets and Wells Fargo Securities, LLC, as Joint Lead Arrangers and Joint Book Runners, RBC Capital Markets and Wells Fargo Bank National Association, as Syndication Agents, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Documentation Agent, incorporated by reference to Exhibit 10.1 to the Company’s Report on Form 8-K filed on August 22, 2011.
.cc	First Amendment to the Credit Agreement, dated December 20, 2011, by and among the Company, and any designated Foreign Borrower, the lenders from time to time party to the Credit Agreement, and U.S. Bank National Association, as one of the lenders, lead arranger, lead book runner, and administrative agent for the lenders, incorporated by reference to Exhibit 10.nn to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.
.dd	Second Amendment to the Credit Agreement, dated January 31, 2013, by and among the Company, and any designated Foreign Borrower, the lenders from time to time party to the Credit Agreement, and U.S. Bank National Association, as one of the lenders, lead arranger, lead book runner, and administrative agent for the lenders, incorporated by reference to Exhibit 10.nn to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.
.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	Share Repurchase Agreement dated November 12, 2013, by and among the Company and Fuji Heavy Industries Ltd., incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed November 12, 2013.
.gg	Form of Nonqualified Stock Option Agreement entered into with Kenneth J. Pucel.*
.hh	Form of Performance Restricted Stock Unit Award Agreement entered into with Kenneth J. Pucel.*
.ii	Form of Severance Agreement entered into with Kenneth J. Pucel.*
.jj	Form of Incentive Plan Acknowledgement for David C. Longren.*
13	Portions of the Annual Report to Security Holders for the Year Ended December 31, 2014 included pursuant to Note 2 to General Instruction G.
21	Subsidiaries of Registrant.
23	Consent of Ernst & Young LLP.
24	Power of Attorney.
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.

73

POLARIS INDUSTRIES INC. EXHIBIT INDEX TO ANNUAL REPORT ON FORM 10-K For Fiscal Year Ended December 31, 2014 (cont.)
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, 2014, filed with the SEC on February 20, 2015, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets as of December 31, 2014 and 2013, (ii) the Consolidated Statements of Income for the years ended December 31, 2014, 2013 and 2012 (iii) the Consolidated Statements of Comprehensive Income for the years ended December 31, 2014, 2013 and 2012, (iv) the Consolidated Statements of Shareholders’ Equity for the years ended December 31, 2014, 2013 and 2012, (v) the Consolidated Statements of Cash Flows for the years ended December 31, 2014 and 2013, and (vi) Notes to Consolidated Financial Statements

* Management contract or compensatory plan.

74

EX-10.W

Exhibit 10.w

Polaris Industries Inc.

2100 Highway 55

Medina, MN 55340-9770

763-542-0500

763-542-0599 fax

September 15, 2014                            

Mr. Kenneth J. Pucel

2608 Crosby Road

Wayzata, MN 55391

Dear Ken:

On behalf of Polaris Industries Inc., I am pleased to offer you the position of Executive Vice President, Global Operations, Engineering and Lean.

I.     Title and reporting relationship

Your title is Executive Vice President, Global Operations, Engineering and Lean. You will report to the Chairman & CEO.

II. Date of Employment

TBD

III. Base Salary

Your annual base salary will be $570,000 paid bi-weekly. Your salary will be reviewed annually, subject to the approval of the Compensation Committee of the Board of Directors. Your salary review date for 2015 will be April 1.

IV. Cash Incentive Compensation

You will be an “A2” Level (Company officer) under the terms of our Senior Executive Annual Incentive Plan. Your payment under the Senior Executive Annual Incentive Plan will be dependent upon your performance and the performance of the Company. Your target for the Senior Executive Annual Incentive Plan will be 100% of eligible earnings paid during a year, subject to adjustments by the Compensation Committee of the Board of Directors. For the 2014 performance period, paid out in 2015, you will be guaranteed a minimum of $570,000.

The performance threshold matrix is attached as Exhibit A and each year is approved at the January Compensation Committee meeting.

V.     Signing Bonus

You will also receive $250,000 (gross) lump sum bonus to be paid within three

weeks of your start date.

In the event of your voluntary termination of employment within twenty-four (24) months after receiving the above compensation, in signing this letter you agree to immediately reimburse the Company this signing bonus on a prorated basis.

VI. Long Term Incentive PRSU Plan (LTIP)

You will participate in the LTIP for Officers which is a 3 year performance cycle. Your first LTIP will be issued effective on your start date and will cover the performance cycle January 1, 2014 through December 31, 2016. The performance metrics for the LTIP are determined each year by the Compensation Committee of the Board of Directors during the January meeting. The target incentive opportunity will be expressed as a percentage of your total long term incentive. Your 2014 LTIP will be prorated from your start date. The performance threshold is attached as Exhibit B. Your performance based stock unit agreement will be in substantially the form of the agreement attached as Exhibit C.

VII. Stock Options

You will be granted stock options to purchase 45,000 shares of Polaris Industries common stock. The grant date will be your first day of actual employment, and the options will have an exercise price equal to the closing price of Polaris stock on the grant date. 22,500 of the shares will have 2 year vesting; the remaining 22,500 shares will have 4 year vesting. We will provide you with a copy of the stock option agreement as soon as possible after your start date. Your stock option agreement will be in substantially the form of the agreement attached as Exhibit D.

You will be eligible for additional stock grants on a basis consistent with other similarly situated executives, subject to performance.

VIII. Restricted Stock

You will be granted 50,000 shares of Polaris restricted stock. 20,000 of the shares will vest 1 year from the grant date. 10,000 of the shares will vest 2 years from the grant date. The remaining 20,000 shares will vest 3 years from the grant date which will be your start date. This award will be granted as soon as practical after the start of your employment and a draft form is attached as Exhibit E.

IX. Benefits & Perquisites

At Polaris you will participate in Polaris’ benefit programs and receive the perquisites made available by Polaris to its executives. The benefits and perquisites are subject to change by the Compensation Committee and at present include medical, dental, disability and life insurance coverage, financial planning and tax preparation services, 401(k) retirement savings plan and Supplemental Executive Retirement Plan participation, and a country club membership (tax gross-ups are not provided for club initiation and dues, tax, estate and financial planning). Additionally, you will have the use of Polaris’ products in accordance with Polaris’ guidelines. You will also be eligible for an annual physical examination at the Mayo Clinic paid for by Polaris. A summary of the current benefits is enclosed as Exhibit F.

X. Equity Awards and Retirement

Future equity awards granted to you by Polaris will provide for accelerated vesting upon retirement on terms that are comparable to those in equity awards granted to you by your current company, including any limitations on such accelerated vesting during the first year of an award term. Upon your retirement, service based awards will have accelerated vesting and performance awards will vest pro-rata based on length of service during the performance period and achievement of performance metrics. Unexercised options will also have accelerated vesting upon retirement and will be exercisable until the expiration of the term of the option. For these purposes, “retirement” will mean any termination of your employment with Polaris, other than termination for cause, that occurs at or after you reach the age of 55 and have completed at least five years of service with Polaris.

XI. Severance Agreement

When you begin employment with Polaris, Polaris will enter into a Severance Agreement with you substantially in the form enclosed as Exhibit G.

XII. Ownership Guidelines and Section 16 Reporting Obligations

Polaris has established stock ownership guidelines for the Board of Directors, Company Officers and Directors. The guidelines require executive officers to own a designated number of shares of the Company’s Common Stock (7x base salary for the Chief Executive Officer, 4x base salary for the Chief Operating Officer, Chief Financial Officer and this position, and 2x base salary for all other executive officers). A summary of the guidelines is enclosed as Exhibit H.

Remember, all your transactions in Polaris securities are subject to Polaris’ Insider Trading Policy.

As an officer of Polaris you are also subject to Section 16(a) of the Securities Exchange Act of 1934, as amended, and will be required to file reports with the SEC disclosing your holdings and transactions in Polaris’ equity securities. The Company will assist you in preparing and filing these reports with the SEC on a timely basis. Before engaging in any transaction in Polaris securities you must pre-clear the transaction with the Chief Financial Officer. All transactions must be reported within two days.

This offer is contingent on approval of the Polaris Board of Directors. For clarification and the protection of both you and the Company, this letter represents the sole agreement between you and Polaris Industries. It, including any brochures provided to you by the Human Resources Department that may be amended by the Company in the future, constitutes and expresses the entire agreement regarding your employment.

This offer remains contingent upon verification of employment eligibility pursuant to regulations issued under the Immigration Reform and Control Act of 1986 and satisfactory completion of a drug and alcohol test paid by Polaris. We will arrange for this test once you have agreed to the terms of this offer.

Ken we are very excited to have you join the Polaris team. We believe you can make a huge impact in the coming years and develop in several areas that will position you very well for the long term. Please sign and return a copy of this letter indicating that you accept our offer and confirming the terms of your employment. If you agree to this offer, which remains in effect through Friday, September 19, 2014 please sign and return to Jim Williams at 2100 Highway 55, Medina, MN 55340.

Very truly yours,

/s/ Scott W. Wine

Scott Wine                        

Chairman & CEO            

Accepted and Confirmed:

/s/ Kenneth J. Pucel

Kenneth Pucel

EX-10.GG

Exhibit 10.gg

POLARIS INDUSTRIES INC.

NONQUALIFIED STOCK OPTION AGREEMENT

Participant: ______________________

In accordance with the terms of the Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 28, 2011) (the “Plan”), Polaris Industries Inc. (the “Company”) hereby grants to you, the Participant named above, an Option to purchase from the Company up to the number of shares of the Company’s common stock (the “Common Stock”) set forth in the table below at the specified Option Price per share. The terms and conditions of this Option Award are set forth in this Agreement, consisting of this cover page and the Option Terms and Conditions on the following pages, and in the Plan document, a copy of which has been provided to you. Unless the context indicates otherwise, any capitalized term that is not defined in this Agreement shall have the meaning set forth in the Plan as it currently exists or as it is amended in the future.

Number of shares of Common Stock subject to the Option:	___________
Grant Date:	___________, 20__
Option Price per share:	$__________
Vesting and Exercise Schedule:	Date	Portion of Shares as to Which Option Date Becomes Vested and Exercisable
	___________, 20__	50%
	___________, 20__	50%
Expiration Date:	Close of business on _____________, 20__

All terms, provisions and conditions applicable to the Option set forth in the Plan and not set forth in this Agreement are incorporated by reference into this Agreement.

By signing below or otherwise evidencing your acceptance of this Agreement in a manner approved by the Company, you agree to all of the terms and conditions contained in this Agreement and in the Plan. You acknowledge that you have received and reviewed these documents and that they set forth the entire agreement between you and the Company regarding your rights and obligations in connection with this Option Award.

POLARIS INDUSTRIES INC.

Michael W. Malone

Vice President—Finance and Chief Financial Officer

Agreed:

__________________________________

Participant

Attachment: Option Terms and Conditions

Polaris Industries Inc.

2007 Omnibus Incentive Plan

(As Amended and Restated April 28, 2011)

Nonqualified Stock Option Agreement

Option Terms and Conditions

1. Nonqualified Stock Option. This Option is not intended to be an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code and will be interpreted accordingly.

2. Vesting and Exercisability of Option.

(a) Scheduled Vesting. This Option will vest and become exercisable as to the number of shares of Common Stock (“Shares”) and on the dates specified in the Vesting and Exercise Schedule on the cover page to this Agreement, so long as you have continuously provided service to the Company or any of its Affiliates in the capacity of an Employee, Nonemployee Director or Third-Party Service Provider since the Grant Date. For purposes of this Agreement, use of the terms “employment” and “employed” refers to providing service in any of these capacities to the Company and its Affiliates. The Vesting and Exercise Schedule is cumulative, meaning that to the extent the Option has not already been exercised and has not expired or been terminated or cancelled, you or the person otherwise entitled to exercise the Option as provided in this Agreement may at any time purchase all or any portion of the Shares subject to the vested portion of the Option.

(b) Accelerated Vesting. This Option will vest in full and become immediately exercisable upon a Change of Control of the Company that occurs during the term of this Option.Vesting and exercisability of this Option will also be accelerated during the term of the Option under the circumstances described in Section 9 of this Agreement.

3. Expiration. This Option will expire and will no longer be exercisable on the earliest of:

(a) The Expiration Date specified on the cover page of this Agreement;

(b) Termination of your employment with the Company and its Affiliates for Cause;

(c) The expiration of any applicable period specified in Section 9 of this Agreement or specified pursuant to Article 11 of the Plan during which this Option may be exercised after termination of your employment with the Company and its Affiliates; or

(d) The date (if any) fixed for termination or cancellation of this Option pursuant to Article 11 of the Plan.

4. Service Requirement. Except as otherwise provided in Section 9 of this Agreement and Sections 11.1and 11.2 of the Plan, this Option may be exercised only while you continue to be employed by the Company or any Affiliate, and only if you have continuously been so employed since the Grant Date.

5. Exercise of Option. Subject to Sections 6 and 7 of this Agreement, the vested and exercisable portion of this Option may be exercised in whole or in part by delivering a written or electronic notice of exercise to the Company or the Company’s third-party stock plan administrator (as the Company’s agent), which written or electronic notice must be in a form approved by the Company stating the number of Shares to be purchased, the method of payment of the aggregate Option Price and directions for the delivery of the Shares to be acquired, and must be signed or otherwise authenticated by the person exercising this Option. This Option may also be exercised by such other means as the Committee may approve from time to time, including by providing notice of exercise to the third-party administrator by telephone or by using the third-party administrator’s Internet web site. If you are not the person exercising this Option, the person exercising the Option must also submit appropriate proof of his or her right to exercise this Option. For purposes of this Section 5, “third-party stock option administrator” means E*Trade Financial Corporate Services or, as applicable, any successor designated by the Committee.

6. Payment of Option Price. When you submit your notice of exercise, you must include payment of the aggregate Option Price of the Shares being purchased through one or a combination of the following methods:

(a)    Cash or its equivalent (including a check payable to the order of the Company);

(b)    To the extent then permitted by the Committee, a broker-assisted cashless exercise in which you irrevocably instruct a broker to deliver proceeds of a sale of all or a portion of the Shares for which the Option is being exercised (or proceeds of a loan secured by such Shares) to the Company in payment of the purchase price of such Shares;

(c)    To the extent then permitted by the Committee, by delivering (either actual delivery or using attestation procedures approved by the Company) to the Company or its designated agent unencumbered Shares having an aggregate Fair Market Value on the date of exercise equal to the purchase price of the Shares for which the Option is being exercised; or

(d)    To the extent then permitted by the Committee, by directing the Company to withhold a number of Shares otherwise issuable to you upon such exercise having an aggregate Fair Market Value on the date of exercise equal to the purchase price of the Shares for which the Option is being exercised.

7. Withholding Taxes. The Company will notify you of the amount of any federal, state, local or foreign withholding taxes (including social insurance contributions) that must be paid by you in connection with the exercise of the Option. The Company (or any Affiliate employing you) may deduct such amount from your regular salary payments or other compensation otherwise due and owing to you. If the full amount of the withholding taxes cannot be timely recovered in this manner, you must immediately remit the deficiency to the Company upon the receipt of the Company’s notice. If you wish to satisfy some or all of such withholding taxes by delivering Shares you already own or by having the Company retain a portion of the Shares being acquired upon exercise of the Option, you must make such a request in accordance with Section 19.2 of the Plan which shall be subject to approval by the Committee. The Company may withhold the issuance to you of any and all Shares to which you are otherwise entitled under this Agreement until you have satisfied the applicable withholding tax obligations.

8. Delivery of Shares. As soon as practicable after the Company receives the notice of exercise and payment of the exercise price as provided above, and determines that all other conditions to exercise, including satisfaction of withholding tax obligations and compliance with applicable laws as provided in Section 21.6 of the Plan, have been satisfied, it will arrange for the issuance and delivery of the Shares being purchased. Delivery of the Shares shall be effected by the issuance of a stock certificate, by an appropriate entry in the stock register maintained by the Company’s transfer agent with a notice of issuance provided, or by the electronic delivery of the Shares to a designated brokerage account. The Company will pay any original issue or transfer taxes with respect to the issuance and delivery of the Shares to you, and all fees and expenses incurred by it in connection therewith.

9. Termination of Employment or Other Service. If your employment by the Company and its Affiliates terminates before the scheduled Expiration Date and before the Option has been exercised in full, the following rules apply:

(a)    If your employment terminates for any reason other than disability (within the meaning of Section 22(e)(3) of the Code) (“Disability”), death or Retirement (as defined in Section 9(c)), then any unvested portion of the Option shall terminate on the date your employment terminates and be of no further force and effect.

(b)    If your employment terminates for any reason other than Disability, death or Retirement, then any vested portion of the Option that has not yet been exercised on the date of termination shall continue to be exercisable for a period of thirty (30) days after such date, but not after the scheduled Expiration Date.

(c)    If your employment terminates by reason of your Retirement, then any unvested portion of the Option shall vest and become exercisable immediately upon such Retirement, and (ii) the portion of the Option that has not yet been exercised shall remain exercisable until the scheduled Expiration Date. For these purposes, “Retirement” shall mean any termination of your employment with the Company, other than termination for Cause, that occurs (i) at least twelve (12) months after the Grant Date, and (ii) at or after you reach the age of fifty-five (55) and have completed at least ten (10) years of continuous service with the Company, or at or after you reach the age of sixty-five (65).

(d)    If your employment terminates by reason of your death or Disability, then (i) any unvested portion of the Option shall vest immediately and become exercisable; and (ii) the portion of the Option that has not yet been exercised shall remain exercisable for a period of one (1) year following the date of termination of employment, but not after the scheduled Expiration Date.

10. Transfer of Option. During your lifetime, only you (or your guardian or legal representative in the event of legal

incapacity) may exercise this Option. You may not assign or transfer this Option other than a transfer upon your death in accordance with your will, by the laws of descent and distribution or pursuant to a beneficiary designation submitted in accordance with Article 15 of the Plan. Following any such transfer, this Option shall continue to be subject to the same terms and conditions that were applicable to this Option immediately prior to its transfer and may be exercised by such permitted transferee as and to the extent that this Option has become exercisable and has not terminated in accordance with the provisions of the Plan and this Agreement. Whenever you are referred to in any provision of this Agreement under circumstances where the provision should logically be construed to apply to any permitted transferee of the Option, such references will be deemed to include such person or persons.

11. Compensation Recovery. Notwithstanding any other provision of this Agreement, this Award and any Shares or cash received in settlement thereof shall be subject to (i) the Company’s Policy Regarding Executive Incentive Compensation Recoupment as in effect from time to time, including any amendments or revisions thereto adopted by the Board or the Committee in response to the requirements of Section 10D of the Exchange Act and the rules promulgated by the Securities and Exchange Commission and the New York Stock Exchange thereunder; and (ii) forfeiture to or reimbursement of the Company under the circumstances and to the extent provided in Section 304 of the Sarbanes-Oxley Act of 2002 if you are one of the individuals expressly subject to such Section 304 or if you knowingly or grossly negligently engaged in the misconduct, or knowingly or grossly negligently failed to prevent the misconduct which resulted in material noncompliance by the Company with any financial reporting requirement under the securities laws and as a result of which the Company was required to prepare an accounting restatement.

12. Governing Plan Document. This Agreement and Option Award are subject to all the provisions of the Plan, and to all interpretations, rules and regulations which may, from time to time, be adopted and promulgated by the Committee pursuant to the Plan. If there is any conflict between the provisions of this Agreement and the Plan, the provisions of the Plan will govern.

13. Binding Effect. This Agreement will be binding in all respects on your heirs, representatives, successors and assigns, and on the successors and assigns of the Company.

14. Notices. Every notice or other communication relating to this Agreement shall be in writing and shall be mailed to or delivered (including electronically) to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided. Unless and until some other address is so designated, all notices or communications by you to the Company shall be mailed or delivered to the Company [provide a specific contact or department at the Company, along with email address?] at its office at 2100 Highway 55, Medina, Minnesota 55340, and all notices or communications by the Company to you may be given to you personally or may be mailed or delivered to you at the address indicated in the Company's records as your most recent address.

15. Entire Agreement; Amendment; Severability. This Agreement and the Plan embody the entire understanding of the parties with respect to this Option Award, and supersede all other oral or written agreements or understandings between you and the Company regarding the subject matter hereof. Except as otherwise provided in Section 17.4 of the Plan, no change, alteration or modification hereof may adversely affect in any material way your rights under this Agreement without your prior written consent. If any provision of this Agreement or the application of any provision hereof is declared to be illegal, invalid, or otherwise unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall not be affected thereby.

16. Choice of Law. This Agreement will be governed by, and interpreted and enforced in accordance with, the laws of the state of Minnesota (without regard to its conflicts or choice of law principles).

17. Certain References. References to you in any provision of this Agreement under circumstances where the provision should logically be construed to apply to your executors or administrators, or to the person or persons to whom all or any portion of the Option may be transferred by will or the laws of descent and distribution, shall be deemed to include such person or persons.

18. Electronic Delivery and Acceptance. The Company may deliver any documents related to this Option Award by electronic means and request your acceptance of this Agreement by electronic means. You hereby consent to receive all applicable documentation by electronic delivery and to participate in the Plan through an on-line (and/or voice activated) system established and maintained by the Company or the Company’s third-party stock plan administrator.

19. Appendix. This Option Award and the Shares acquired under the Plan upon exercise of the Option shall be subject to any and all special terms and provisions, if any, as set forth in the Appendix for your country of residence, which Appendix

is incorporated into and made a part of this Agreement.

By signing the cover page of this Agreement or otherwise accepting this Award in a manner approved by the Company, you agree to all the terms and conditions contained in this Agreement and in the Plan document.

EX-10.HH

Exhibit 10.hh

POLARIS INDUSTRIES INC.

PERFORMANCE RESTRICTED STOCK UNIT AWARD AGREEMENT

Participant: _______________________

In accordance with the terms of the Polaris Industries Inc. 2007 Omnibus Incentive Plan (As Amended and Restated April 28, 2011) (the "Plan"), Polaris Industries Inc. (the “Company”) hereby grants to you, the Participant named above, an award of Performance Restricted Stock Units involving the number of such Units set forth in the table below. The terms and conditions of this Award are set forth in this Agreement, consisting of this cover page, the Award Terms and Conditions on the following pages and the attached Exhibit A, and in the Plan document, a copy of which has been provided to you. Unless the context indicates otherwise, any capitalized term that is not defined in this Agreement shall have the meaning set forth in the Plan as it currently exists or as it is amended in the future.

Number of Performance Restricted Stock Units Granted:	____________
Grant Date:	____________, 20__
Scheduled Vesting Date:	The date described in Section 4(a) of the Agreement
Performance Period:	____________, 20__ - ___________, 20__
Performance Goals:	See Exhibit A

All terms, provisions and conditions applicable to Performance Restricted Stock Unit Awards set forth in the Plan and not set forth in this Agreement are incorporated by reference into this Agreement.

By signing below or otherwise evidencing your acceptance of this Agreement in a manner approved by the Company, you agree to all of the terms and conditions contained in this Agreement and in the Plan. You acknowledge that you have received and reviewed these documents and that they set forth the entire agreement between you and the Company regarding your rights and obligations in connection with this Performance Restricted Stock Unit Award.

POLARIS INDUSTRIES INC.

Michael W. Malone

Vice President—Finance and Chief Financial Officer

Agreed:

________________________________    

Participant

Attachments:     Award Terms and Conditions

Exhibit A

Polaris Industries Inc.

2007 Omnibus Incentive Plan

(As Amended and Restated April 28, 2011)

Performance Restricted Stock Unit Award Agreement

Award Terms and Conditions

1. Award of Performance Restricted Stock Units. The Company hereby confirms the grant to you, as of the Grant Date and subject to the terms and conditions of this Agreement and the Plan, of the number of Performance Restricted Stock Units identified on the cover page of this Agreement (the "Units"). Each Unit represents the right to receive one Share of the Company’s common stock. The Units granted to you will be credited to an account in your name maintained by the Company. This account shall be unfunded and maintained for book-keeping purposes only, with the Units simply representing an unfunded and unsecured obligation of the Company.

2. Restrictions Applicable to Units. Neither this Award nor the Units subject to this Award may be sold, assigned, transferred, exchanged or encumbered other than by will or the laws of descent and distribution. Any attempted transfer in violation of this Section 2 shall be void and ineffective. The Units and your right to receive Shares in settlement of the Units under this Agreement shall be subject to forfeiture except to extent the Units have vested as provided in Section 4.

3. No Shareholder Rights. The Units subject to this Award do not entitle you to any rights of a shareholder of the Company’s common stock. You will not have any of the rights of a shareholder of the Company in connection with the grant of Units subject to this Agreement unless and until Shares are issued to you upon settlement of the Units as provided in Section 5.

4. Vesting and Forfeiture of Units. The Units shall vest at the earliest of the following times and to the degree specified. For purposes of this Section 4, use of the terms “employment” and “employed” refers to providing services to the Company and its Affiliates in the capacity of an Employee, Nonemployee Director or Third-Party Service Provider.

(a) Scheduled Vesting. The number of Units that have been earned during the Performance Period shall be eligible to vest on the Scheduled Vesting Date, so long as your employment has been continuous since the Grant Date. The actual number of earned Units that will vest on the Scheduled Vesting Date will be determined by the Committee as provided in Exhibit A. For these purposes, the “Scheduled Vesting Date” means the date the Committee certifies (i) the degree to which the applicable performance goals for the Performance Period have been satisfied, (ii) the number of Units that have been earned during the Performance Period as provided in Exhibit A, and (iii) the number of Units that will vest as determined in accordance with Exhibit A, which certification shall occur no later than March 15 of the calendar year immediately following the calendar year during which the Performance Period ended.

(b) Retirement. If your employment terminates by reason of your Retirement prior to the Scheduled Vesting Date, then you will be entitled to have vest on the Scheduled Vesting Date a pro rata portion of the Units that would otherwise have been determined to vest on the Scheduled Vesting Date in accordance with Exhibit A if you had remained continuously employed until the Scheduled Vesting Date. The pro rata portion shall be determined by multiplying the number of Units that would otherwise have been determined to vest by a fraction whose numerator is the number of full calendar months during the Performance Period prior to your employment termination date and whose denominator is thirty-six (36). For these purposes, “Retirement” shall mean any termination of your employment, other than termination for Cause, that occurs (i) at least twelve (12) months after the Grant Date, and (ii) at or after you reach the age of fifty-five (55) and have completed at least ten (10) years of continuous employment, or at or after you reach the age of sixty-five (65).

(c) Severance Agreement. If your employment terminates prior to the Scheduled Vesting Date at a time when you are party to a severance agreement with the Company, and if such termination of employment constitutes a “Non-Change in Control Termination” as defined in the severance agreement, then you will be entitled to have vest on the Scheduled Vesting Date a pro rata portion of the Units that would otherwise have been determined to vest on the Scheduled Vesting Date in accordance with Exhibit A if you had remained continuously employed until the Scheduled Vesting Date. The pro rata portion shall be determined in the same manner as provided in Section 4(b).

(d) Change of Control. If a Change of Control occurs after the Grant Date but before the Scheduled Vesting Date and while you continue to be employed, then the Units shall vest as of the Date of the Change of Control to the extent provided below:

(1) If the Change of Control occurs on or after the last day of the Performance Period, the number of Units determined to have been earned as of the end of the Performance Period in accordance with Exhibit A shall vest.

(2) If the Change of Control occurs before the last day of the Performance Period, one-third of the Units shall vest if the Change of Control occurs during the third year of the Performance Period, one-sixth of the Units shall vest if the Change of Control occurs during the second year of the Performance Period, and no Units shall vest if the Change of Control occurs during the first year of the Performance Period.

(e) Forfeiture of Unvested Units. To the extent any of Sections 4(a) through (d) is applicable to this Award, any Units that do not vest on the applicable vesting date as provided therein shall immediately be forfeited. If your employment terminates prior to the Scheduled Vesting Date under circumstances other than as set forth in Sections 4(b) and (c), all unvested Units shall immediately be forfeited.

5. Settlement of Units. After any Units vest pursuant to Section 4, the Company shall, as soon as practicable (but no later than March 15 of the year following the calendar year in which such Units vest), cause to be issued and delivered to you, or to your designated beneficiary or estate in the event of your death, one Share in payment and settlement of each vested Unit. Delivery of the Shares shall be effected by the issuance of a stock certificate, by an appropriate entry in the stock register maintained by the Company’s transfer agent with a notice of issuance provided, or by the electronic delivery of the Shares to a designated brokerage account, shall be subject to satisfaction of withholding tax obligations as provided in Section 6 and compliance with all applicable legal requirements as provided in Section 21.6 of the Plan, and shall be in complete satisfaction and settlement of such vested Units. The Company will pay any original issue or transfer taxes with respect to the issuance and delivery of the Shares to you, and all fees and expenses incurred by it in connection therewith.

6. Withholding Taxes. The Company will notify you of the amount of any federal, state, local or foreign withholding taxes (including social insurance contributions) that must be paid in connection with the vesting or settlement of the Units. The Company (or any Affiliate employing you) may deduct such amount from your regular salary payments or other compensation otherwise due and owing to you. If the full amount of the withholding taxes cannot be timely recovered in this manner, you must immediately remit the deficiency to the Company upon the receipt of the Company’s notice. If you wish to satisfy some or all of such withholding taxes by delivering Shares you already own or by having the Company retain a portion of the Shares that would otherwise be issued to you in settlement of vested Units, you must make such a request in accordance with Section 19.2 of the Plan which shall be subject to approval by the Committee. The Company may withhold the issuance to you of any and all Shares to which you are otherwise entitled under this Agreement until you have satisfied the applicable tax withholding obligations.

7. Compensation Recovery. Notwithstanding any other provision of this Agreement, this Award and any Shares or cash received in settlement thereof shall be subject to (i) the Company’s Policy Regarding Executive Incentive Compensation Recoupment as in effect from time to time, including any amendments or revisions thereto adopted by the Board or the Committee in response to the requirements of Section 10D of the Exchange Act and the rules promulgated by the Securities and Exchange Commission and the New York Stock Exchange thereunder; and (ii) forfeiture to or reimbursement of the Company under the circumstances and to the extent provided in Section 304 of the Sarbanes-Oxley Act of 2002 if you are one of the individuals expressly subject to such Section 304 or if you knowingly or grossly negligently engaged in the misconduct, or knowingly or grossly negligently failed to prevent the misconduct which resulted in material noncompliance by the Company with any financial reporting requirement under the securities laws and as a result of which the Company was required to prepare an accounting restatement.

8. Governing Plan Document. This Agreement and Award are subject to all the provisions of the Plan, and to all interpretations, rules and regulations which may, from time to time, be adopted and promulgated by the Committee pursuant to the Plan. If there is any conflict between the provisions of this Agreement and the Plan, the provisions of the Plan will govern.

9. Binding Effect. This Agreement will be binding in all respects on your heirs, representatives, successors and assigns, and on the successors and assigns of the Company.

10. Entire Agreement; Amendment; Severability. This Agreement and the Plan embody the entire understanding of the parties regarding the subject matter hereof and shall supersede all prior agreements and understandings, oral or written, between the parties with respect thereto. Except as otherwise provided in Section 17.4 of the Plan, no change, alteration or modification of this Agreement may adversely affect in any material way your rights under this Agreement without your prior written consent. If any provision of this Agreement or the application of any provision hereof is declared to be illegal, invalid, or otherwise unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall not be affected thereby.

11. Certain References. References to you in any provision of this Agreement under circumstances where the provision should logically be construed to apply to your executors or administrators, or to the person or persons to whom all or any portion of the Units may be transferred by will or the laws of descent and distribution, shall be deemed to include such person or persons.

12. Notices. Every notice or other communication relating to this Agreement shall be in writing and shall be mailed to or delivered (including electronically) to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided. Unless and until some other address is so designated, all notices or communications by you to the Company shall be mailed or delivered to the Company (Attention: Vice President - Human Resources) at its office at 2100 Highway 55, Medina, Minnesota 55340, and all notices or communications by the Company to you may be given to you personally or may be mailed or delivered to you at the address indicated in the Company's records as your most recent address.

13. Choice of Law. This Agreement will be governed by, and interpreted and enforced in accordance with, the laws of the state of Minnesota (without regard to its conflicts or choice of law principles).

14. Electronic Delivery and Acceptance. The Company may deliver any documents related to this Award by electronic means and request your acceptance of this Agreement by electronic means. You hereby consent to receive all applicable documentation by electronic delivery and to participate in the Plan through an on-line (and/or voice activated) system established and maintained by the Company or the Company’s third-party stock plan administrator.

15. Appendix. This Award and the Shares acquired under the Plan upon settlement of the Units shall be subject to any and all special terms and provisions, if any, as set forth in the Appendix for your country of residence, which Appendix is incorporated into and made a part of this Agreement.

By signing the cover page of this Agreement or otherwise accepting this Award in a manner approved by the Company, you agree to all the terms and conditions contained in this Agreement and in the Plan document.

EX-10.II

Exhibit 10.ii

POLARIS INDUSTRIES INC.

SEVERANCE AGREEMENT

THIS SEVERANCE AGREEMENT (the “Agreement”), is made and entered into as of ___________, 2014 between POLARIS INDUSTRIES INC., a Minnesota corporation (the "Company"), and ________________ (the "Employee").

RECITALS:

WHEREAS, Employee has been offered employment by the Company; and

WHEREAS, as an inducement to accept such employment and to enhance the loyalty and performance of Employee with the Company, the Company desires to provide the Employee with certain compensation and benefits in the event a termination of employment under the circumstances set forth herein.

NOW, THEREFORE, in consideration of the mutual premises and agreements set forth herein, the parties hereby agree as follows:

1.    Definitions. As used in this Agreement, these terms shall have the following meanings:

(a)    Cause. For purposes of this Agreement only, "Cause" means (i) repeated violations of the Employee's employment obligations (other than as a result of incapacity due to physical or mental illness), which are demonstrably willful and deliberate on Employee's part and which are not remedied in a reasonable period after written notice from the Company specifying such violations; or (ii) conviction for (or plea of nolo contendere to) a felony.

(b)    Change in Control. A "Change in Control" shall be deemed to have occurred if, prior to the Termination Date (as defined below):

(i)    Any election has occurred of persons to the Board that causes at least one-half of the Board to consist of persons other than (x) persons who were members of the Board as of the date of this Agreement and (y) persons who were nominated for election by the Board as members of the Board at a time when more than one-half of the members of the Board consisted of persons who were members of the Board as of the date of this Agreement; provided, however, that any person nominated for election by the Board at a time when at least one-half of the members of the Board were persons described in clauses (x) and/or (y) or by persons who were themselves nominated by such Board shall, for this purpose, be deemed to have been nominated by a Board composed of persons described in clause (x) (persons described or deemed described in clauses (x) and/or (y) are referred to herein as "Incumbent Directors"); or

(ii)    The acquisition in one or more transactions, other than from the Company, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of a number of Company Voting Securities equal to or greater than 35% of the Company Voting Securities unless such acquisition has been designated by the Incumbent Directors as an acquisition not constituting a Change in Control for purposes hereof; or

(iii)    A liquidation or dissolution of the Company; or a reorganization, merger or consolidation of the Company unless, following such reorganization, merger or consolidation, the Company is the surviving entity resulting from such reorganization, merger or consolidation or at least one-half of the Board of Directors of the entity resulting from such reorganization, merger or consolidation consists of Incumbent Directors; or a sale or other disposition of all or substantially all of the assets of the Company unless, following such sale or disposition, at least one-half of the Board of Directors of the transferee consists of Incumbent Directors.

As used herein, "Company Voting Securities" means the combined voting power of all outstanding voting securities of the Company entitled to vote generally in the election of the Board.

(c)    Change in Control Termination. “Change in Control Termination” shall have the meaning set forth in Paragraph 2.

(d)    Code. “Code” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder.

(e)    Good Reason. "Good Reason" means (i) the assignment to Employee of any duties inconsistent in any material respect with Employee's position or any material reduction in the scope of the Employee's authority and responsibility; (ii) there is a material reduction in Employee's base compensation; (iii) there is a material change in the geographic location of the Employee’s principal place of employment; or (iv) the Company otherwise fails to perform any of its material obligations to Employee. The Employee must give the Company notice of the existence of Good Reason during the 90-day period beginning on the date of the initial existence of Good Reason. If the Company remedies the condition giving rise to Good Reason within 30 days thereafter, Good Reason shall not exist and the Employee will not be entitled to terminate employment for Good Reason.

(f)    Non-Change in Control Termination. “Non-Change in Control Termination” shall have the meaning set forth in Paragraph 3.

(g)    Retirement. “Retirement” means termination of the Employee’s employment with the Company, other than a termination by the Company for Cause, in which the Termination Date occurs on or after the date the Employee has reached the age of fifty-five (55) and has completed at least five (5) years of service with the Company.

(h)    Senior Executive Incentive Plan. “Senior Executive Incentive Plan” means the Polaris Industries Inc. Senior Executive Annual Incentive Plan.

(i)    Termination Date. "Termination Date" means the date on which the Employee's employment with the Company is terminated, with termination of employment being deemed to have occurred using the standard under Section 409A of the Code (also referred to as a “separation from service”).

2.    Termination upon Change in Control. If a Change in Control occurs and, upon or within twenty-four (24) months after such Change in Control, the Employee terminates his or her employment for Good Reason or the Employee's employment is terminated by the Company for any reason other than for Cause (a "Change in Control Termination”), then the Employee shall, subject to the conditions set forth in Paragraph5, be entitled to the following severance benefits:

(a)    Termination Payment upon Change in Control. The Company shall pay the Employee a lump sum cash payment, no later than sixty (60) days after the Termination Date, in an amount equal to (i) two (2) times Employee's average annual cash compensation (including base salary and annual cash incentive awards, but excluding the award, exercise, vesting or settlement of stock options or other equity-based awards) for the three completed fiscal years (or lesser number of fiscal years if the Employee's employment has been of shorter duration) of the Company immediately preceding the Change in Control Termination, plus (ii) the amount of the Employee’s earned but unused vacation time.

(b)    Unpaid Annual Bonus Payment for Prior Fiscal Year upon Termination upon Change in Control. If the Termination Date occurs before a cash incentive award under the Senior Executive Incentive Plan has been paid for work performed in the last completed fiscal year immediately preceding the fiscal year in which the Termination Date occurs, the Company shall, in addition to the payment to be made pursuant to Paragraph 2(a), pay to the Employee the amount of the Employee's cash incentive award under the Senior Executive Incentive Plan for such preceding fiscal year as soon as it is determinable (but no later than two and one-half months after the end of such preceding fiscal year). Notwithstanding the foregoing regarding the payment of an unpaid cash incentive award for performance in the preceding fiscal year, no cash incentive award under the Senior Executive Incentive Plan or otherwise shall be paid for performance during any part of the fiscal year in which the Termination Date occurs.

3.    Non-Change in Control Termination. Notwithstanding the foregoing, if the Employee's employment is terminated by the Company for any reason other than for Cause, and such termination does not occur upon or within twenty-four (24) months after a Change in Control such that a Change in Control Termination shall have occurred (a “Non-Change in Control Termination”), then the Employee shall, subject to the conditions set forth in Paragraph5, be entitled to the following severance benefits:

(a)    Non-Change in Control Termination Payment. The Company shall pay the Employee (i) an amount equal to the sum of (A) the Employee’s annual base salary as of the Termination Date plus (B) the amount of the cash incentive award that was paid or payable to the Employee under the Senior Executive Incentive Plan for work performed in the last completed fiscal year immediately preceding the fiscal year in which the Termination Date occurs,

which amount shall be payable over a period of one year beginning on the Termination Date in periodic installments in accordance with the Company’s normal payroll practices; provided, however, that any installments that otherwise would be paid during the first sixty (60) days after the Termination Date will be delayed and included in the first installment paid to the Employee on the first payroll date that is more than sixty (60) days after the Termination Date, and (ii) a lump cash payment, no later than sixty (60) days after the Termination Date, in an amount equal to the Employee’s earned but unused vacation time. If the Employee is a “specified employee” (within the meaning of Section 409A of the Code), and if the amount otherwise payable to the Employee under this Paragraph 3(a)(i) during the six-month period beginning on the Termination Date exceeds two times the limitation applicable as of the Termination Date under Section 401(a)(17) of the Code, then such excess amount shall be paid at the end of such six-month period.

(b)    Unpaid Annual Bonus Payment for Prior Fiscal Year upon Non-Change in Control Termination. If the Termination Date occurs before a cash incentive award under the Senior Executive Incentive Plan has been paid for work performed in the last completed fiscal year immediately preceding the fiscal year in which the Termination Date occurs, the Company shall, in addition to the payments to be made pursuant to Paragraph 3(a), pay to the Employee the amount of the Employee's cash incentive award under the Senior Executive Incentive Plan for such preceding fiscal year as soon as it is determinable (but no later than two and one-half months after the end of such preceding fiscal year). Notwithstanding the foregoing regarding the payment of an unpaid cash incentive award for performance in the preceding fiscal year, no cash incentive award under the Senior Executive Incentive Plan or otherwise shall be paid for performance during any part of the fiscal year in which the Termination Date occurs.

(c)    COBRA Premium. If the Employee elects to receive COBRA benefits upon termination, the Company shall pay the premium for coverage of the Employee and the Employee’s eligible spouse and/or dependents under the Company’s group health plan(s) pursuant to the Consolidated Omnibus Budget Reconciliation Act for the one-year period beginning on the Termination Date.

(d)    Outplacement Counseling. The Company shall provide the Employee with reasonable executive outplacement services, in accordance with Company policies for senior executives as in effect on the Termination Date.

(e)    Lapse of Restrictions on Performance Based Restricted Share and Unit Awards. Notwithstanding the terms of any agreement pursuant to which performance-based restricted share and restricted stock unit awards have been granted to the Employee by the Company, all restrictions applicable to such awards shall lapse immediately upon the Termination Date if the measurement period and performance goals applicable thereto have been achieved on or before the Termination Date.

4.    Retirement. If the Employee’s employment with the Company terminates under circumstances that constitute a Retirement (whether or not such employment termination also constitutes a Change in Control Termination or a Non-Change in Control Termination), then the Employee shall, subject to the conditions set forth in Paragraph 5, be entitled to a severance benefit in an amount equal to three (3) times the Employee’s annual base salary as of the Termination Date. The Company shall pay such amount to the Employee in a lump sum cash payment no later than sixty (60) days after the Termination Date, and shall be provided in addition to any severance benefits that the Employee may otherwise be entitled to pursuant to Paragraph 2 or Paragraph 3 hereof.

5.    Condition to Receipt of Severance Benefits. As a condition to receiving any severance benefits in connection with a Change in Control Termination under Paragraph2, in connection with a Non-Change in Control Termination under Paragraph3 or in connection with a Retirement under Paragraph 4, the Employee shall have executed and not rescinded a general waiver and release (the “Waiver and Release”) in the form provided by the Company at the time of termination of employment, and shall be and remain in compliance with Employee’s continuing obligations to the Company under this Agreement or any other written agreement between the Employee and the Company (including the Non-Competition and Non-Solicitation Agreement referenced in Paragraph 17). The Waiver and Release shall become effective in accordance with the rescission provisions set forth therein.

6.    Benefits in Lieu of Severance Pay. The severance benefits provided for in Paragraphs2, 3and4 are in lieu of any benefits that would otherwise be provided to the Employee under any Company severance pay policy or practice and the Employee shall not be entitled to any benefits under any Company severance pay policy or practice in the event that severance benefits are paid hereunder.

7.    Rights in the Event of Dispute. In the event of a Change of Control Termination, if there is a claim or dispute arising out of or relating to this Agreement or any breach thereof, regardless of the party by whom such claim or dispute

is initiated, the Company shall, in connection with settlement in the Employee's favor of any such matter or upon payment of any judgment entered in the Employee's favor, upon presentation of appropriate vouchers, pay all legal expenses, including reasonable attorneys' fees, court costs, and ordinary and necessary out-of-pocket cost of attorneys, billed to and payable by the Employee or by anyone claiming under or through the Employee.

8.    Other Benefits. The benefits provided under this Agreement shall, except to the extent otherwise specifically provided herein, be in addition to, and not in derogation or diminution of, any benefits that Employee or his or her beneficiary may be entitled to receive under any other contract, plan or program now or hereafter maintained by the Company, or its subsidiaries, including any and all stock options and other equity-based award agreements.

9.    Effect on Employment. Neither this Agreement nor anything contained herein shall be construed as conferring upon Employee the right to continue in the employment of the Company or any of its affiliates, or as interfering with or limiting the right of the Company to terminate the Employee's employment with or without cause at any time.

10.    Limitation in Action. Prior to the occurrence of a Change in Control, the Board shall have the power and the rights, within its sole discretion, to modify or amend Paragraph 2 of this Agreement, but not in a manner that would be less favorable to the Employee without the consent of Employee. In all other cases, and notwithstanding the authority granted to the Board to exercise any discretion to modify or amend Paragraph 2of this Agreement contained herein, the Board will not, following a Change in Control, have the power or right to exercise such authority or otherwise take any action that is inconsistent with the provisions of this Agreement.

11.    Successors. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business and/or assets of the Company, to expressly assume and agree to perform its obligations under this Agreement in the same manner and to the same extent that the Company would be required to perform them if no succession had taken place unless, in the opinion of legal counsel mutually acceptable to the Company and the Employee, such obligations have been assumed by the successor as a matter of law. The Employee's rights under this Agreement shall inure to the benefit of, and shall be enforceable by, the Employee's legal representative or other successors in interest, but shall not otherwise be assignable or transferable.

12.    Severability. If any provision of this Agreement or the application thereof is held invalid or unenforceable, the invalidity or unenforceability thereof shall not affect any other provisions or applications of this Agreement which can be given effect without the invalid or unenforceable provision or application.

13.    Survival. The rights and obligations of the parties pursuant to this Agreement shall survive the termination of the Employee's employment with the Company to the extent that any performance is required hereunder after such termination.

14.    Governing Law. This Agreement shall be governed by and construed under the laws of the State of Minnesota, without giving effect to the conflicts of law provisions thereof.

15.    Notices. All notices under this Agreement shall be in writing and shall be deemed effective when delivered in person (in the Company's case, to its Secretary) or 48 hours after deposit thereof in the U.S. mails, postage prepaid, addressed, in the case of the Employee, to his last known address as carried on the personnel records of the Company and, in the case of the Company, to the corporate headquarters, attention of the Secretary, or to such other address as the party to be notified may specify by written notice to the other party.

16.    Amendments and Construction. Except as set forth in Paragraph 9, this Agreement may only be amended in a writing signed by the parties hereto. Paragraph headings are for convenience only and shall not be considered a part of the terms and provisions of the Agreement.

17.    Non-Competition and Non-Solicitation Agreement. The Non-Competition and Non-Solicitation Agreement entered into between the Employee and the Company remains in full force and effect and nothing contained herein is intended to amend or modify the provisions of that agreement or any replacements thereof.

18.    Taxes. The Company may withhold from any amounts payable under this Agreement such federal, state and local income and employment taxes as the Company determines are required or authorized to be withheld pursuant to any applicable law or regulation. Except for any tax amounts withheld by the Company from any compensation that Employee may receive in connection with Employee’s employment with the Company and any employer taxes required to be paid by the Company under applicable laws or regulations, Employee is solely responsible for payment of any and all taxes owed in connection

with any compensation, benefits, reimbursement amounts or other payments Employee receives from the Company under this Agreement or otherwise in connection with Employee’s employment with the Company.

19.    Code Section 409A. It is intended that all of the payments satisfy, to the greatest extent possible, the exemptions from the application of Code Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9), and this Agreement will be construed to the greatest extent possible as consistent with those provisions. For purposes of Code Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), the Employee’s right to receive any installment payments under this Agreement (whether severance payments, reimbursements or otherwise) will be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder will at all times be considered a separate and distinct payment. Notwithstanding any provision to the contrary in this Agreement, if the Employee is deemed by the Company at the time of separation from service to be a “specified employee” for purposes of Code Section 409A(a)(2)(B)(i), and if any of the payments set forth herein and/or under any other agreement with the Company are deemed to be “deferred compensation”, then to the extent delayed commencement of any portion of such payments is required in order to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments will not be provided to the Employee prior to the earliest of (i) the expiration of the six-month period measured from the Termination Date, (ii) the date of the Employee’s death or (iii) such earlier date as permitted under Code Section 409A without the imposition of adverse taxation. Upon the first business day following the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all Payments deferred pursuant to this Paragraph 19(c) will be paid in a lump sum to the Employee, and any remaining Payments due will be paid as otherwise provided herein or in the applicable agreement. No interest will be due on any amounts so deferred. Notwithstanding any other provision herein to the contrary, in the event of any ambiguity in the terms of this Agreement, such term(s) will be interpreted and at all times administered in a manner that avoids the inclusion of compensation in income under Code Section 409A, or the payment of increased taxes, excise taxes or other penalties under Code Section 409A. The parties intend all payments and benefits hereunder to be in compliance with Code Section 409A.

IN WITNESS WHEREOF, the parties have duly executed this Severance Agreement as of the day and year first written above.

	POLARIS INDUSTRIES INC.	EMPLOYEE
By:
	Stacy Bogart	Name:
	VP, General Counsel

EX-10.JJ

Exhibit 10.jj

POLARIS INDUSTRIES INC.

DAVID LONGREN INCENTIVE PLAN ACKNOWLEDGEMENT FORM

I understand that this agreement identifies me as critical to achieve a key business objective for Polaris and as such makes me eligible for a supplemental incentive bonus of up to $400,000 gross (upon goal achievement).

This bonus is above and beyond any annual incentive award provided to me under the Sr. Executive Incentive Compensation Plan. Actual payout of this bonus requires 100% achievement of the performance metrics as described on page 2. The bonus payout is not to be pro-rated for performance between the specified levels.

The bonus will be paid out with the normal 2014 profit sharing cycle to be paid February/March of 2015 to the extent the performance metrics have been achieved and I continue to be employed by Polaris.

Metric Calculation

Completion February 2015 for calendar year 2014 operating results

The incentive bonus is based on achievement of the incentive plan metrics.

See the additional terms on page 2 for details. The incentive bonus is paid with normal payroll processing, less applicable taxes and other withholdings (e.g. 401(k) deductions). The bonus payout is not eligible for deferral into the Supplemental Executive Retirement Plan (SERP). If Polaris changes my position but I remain employed by Polaris, I remain eligible for a payout to the extent the performance metrics have been achieved.

Eligibility for the incentive bonus will be forfeited if my employment ends prior to the bonus payout date.

By signing this Acknowledgement Form, I agree to the terms of the supplemental incentive bonus as set forth herein and acknowledge that I am not obligated to remain employed with Polaris nor is Polaris obligated to retain me as an employee and that this Acknowledgement Form does not constitute an employment agreement. I also understand that my employment is subject to the normal terms and conditions for Polaris employment.

Please complete and return to Andie Johnson in Compensation by May 9, 2014.

Employee Name (please print)	Date Signed
Title
Employee Signature
Received by (please print name)	Date Received

DAVID LONGREN INCENTIVE PLAN ACKNOWLEDGEMENT FORM

PERFORMANCE METRICS

Must meet one or more of the metrics outlined below to be eligible to receive any supplemental bonus payment:

1. Incentive bonus of $100,000 if the ORV Division meets or exceeds its Net Operating Profit budget of $___ Million for calendar year 2014

2. Incentive bonus of an additional $150,000 if the Net Operating Profit of the ORV division meets or exceeds $___ Million for calendar year 2014

3. Incentive bonus of an additional $150,000 if the Net Operating Profit of the ORV division meets or exceeds $___ Million for calendar year 2014

Cumulative payouts will be made commensurate with the respective level of performance achievement; $400,000 total bonus payout if all metrics are met.

PROGRAM ADMINISTRATION RULES

Termination of Employment:

1. Participant must be actively employed with Polaris on the bonus payout date and one or more of the performance metrics must have been achieved in order for participant to receive any payout under the Plan.

2. If participant’s employment is terminated prior to the bonus payout date, he will not be eligible for a payout.

Payment Date: Payment of any bonus amount to which the participant is entitled will be made no later than March 15, 2015.

AMENDMENT OR TERMINATION OF PLAN

Polaris reserves and retains the right to modify, rescind or terminate this Plan in whole or in part, at its sole discretion. Nothing in this Plan limits this right in any way or creates any right on the part of the participant to future participation in this Plan or any other Plan, or constitutes any guarantee of compensation or continued employment with Polaris. Further, neither the Board of Directors nor Polaris has any obligation under this Plan or otherwise to adopt this or any other Plan in any future fiscal year.

EX-13

Exhibit 13

STOCK EXCHANGE

Shares of common stock of Polaris Industries Inc. trade on the New York Stock Exchange under the system PII.

INDEPENDENT AUDITORS

Ernst & Young LLP, Minneapolis, MN

TRANSFER AGENT AND REGISTRAR

Communications concerning transfer requirements, address changes, dividends and lost certificates, as well as requests for Dividend Reinvestment Plan enrollment information, should be addressed to:

Wells Fargo Shareowner Services

1110 Centre Point Curve, Suite 101

Mendota Heights, MN 55120

1-800-468-9716

www.shareowneronline.com

ANNUAL SHAREHOLDERS’ MEETING

The meeting will be held at 9:00 a.m. Central Time, April 30, 2015, at The Arrowwood Resort & Conference Center, 1405 U.S. Highway 71, Okoboji, Iowa, 51355. The proxy statement will be available on or about March 13, 2015. The shareholder-of-record date is March 2, 2015.

SUMMARY OF TRADING

For the Years Ended December 31

	2014		2013
Quarter	High	Low	High	Low
First	$146.99	$118.80	$93.89	$80.87
Second	143.98	124.73	97.96	83.20
Third	152.88	130.00	130.40	95.23
Fourth	159.33	138.21	146.41	122.72

CASH DIVIDENDS DECLARED

Cash dividends are declared quarterly and have been paid since 1995. On January 29, 2015, the quarterly dividend was increased 10 percent to $0.53 per share.

Quarter	2014	2013
First	$0.48	$0.42
Second	0.48	0.42
Third	0.48	0.42
Fourth	0.48	0.42
Total	$1.92	$1.68

SHAREHOLDERS OF RECORD

Shareholders of record of the Company’s common stock on February 13, 2015, were 2,151.

SHAREHOLDER COMPOSITION

Institutions 84%

Officers, directors and employees 8%

Individuals and others 8%

DIVIDEND REINVESTMENT PLAN

Shareholders may automatically reinvest their dividends in additional Polaris common stock through the Dividend Reinvestment Plan, which also provides for purchase of common stock with voluntary cash contributions. For additional information, please contact Wells Fargo Shareowner Services at 1-800-468-9716 or visit the Wells Fargo Bank website at www.shareowneronline.com

INTERNET ACCESS

To view the Company’s annual report and financial information, products and specifications, press releases, dealer locations and product brochures, access Polaris on the Internet at: www.polaris.com

INVESTOR RELATIONS

Security analysts and investment professionals should direct their business-related inquiries to:

Richard Edwards

Director of Investor Relations

Polaris Industries Inc.

2100 Highway 55

Medina, MN 55340-9770

763-513-3477

richard.edwards@polaris.com

RESEARCH COVERAGE AS OF FEBRUARY 2015

BMO Capital Markets Corp.

B. Riley & Co.

Citigroup, Inc.

Feltl and Company, Inc.

KeyBanc Capital Markets, Inc.

Longbow Research

Morningstar, Inc.

Raymond James & Associates

RBC Capital Markets

Robert W. Baird & Company, Inc.

Sidoti & Company

Stephens Inc.

SunTrust Robinson

UBS Securities

Wedbush Securities

Wells Fargo Securities

Wunderlich Securities

STOCK-SPLIT HISTORY

August 1993	2 for 1
October 1995	3 for 2
March 2004	2 for 1
September 2011	2 for 1

EX-21

Exhibit 21

Subsidiaries of Polaris Industries Inc. as of December 31, 2014

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
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
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
Polaris Acceptance (50%)	Illinois
Polaris Acceptance Inc.	Minnesota
Polaris Britain Limited	United Kingdom
Polaris Canada Holdco LP	Canada
Polaris Direct Inc.	Minnesota
Polaris Finance Co Sarl	Luxembourg
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 Industries Manufacturing LLC	Minnesota
Polaris Insurance Services LLC	Minnesota
Polaris Limited China	China
Polaris Luxembourg I Sarl	Switzerland
Polaris Luxembourg II Sarl	Switzerland
Polaris Norway AS	Norway
Polaris of Brazil	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

swissauto powersport LLC	Switzerland
Teton Outfitters, LLC	Idaho
Victory Motorcycles Australia Pty Ltd	Australia

EX-23

Exhibit 23

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 333-161919, 333-147799, 33-57503, 33-60157, 333-05463, 333-21007, 333-77765, 333-94451, 333-84478, 333-110541, 333-174159, and 333-129335) pertaining to our reports dated February 20, 2015, with respect to the consolidated financial statements and schedule of Polaris Industries Inc. and the effectiveness of internal control over financial reporting of Polaris Industries Inc., included in this Annual Report (Form 10-K) for the year ended December 31, 2014.

/s/ Ernst & Young LLP

Minneapolis, Minnesota

February 20, 2015

EX-24

Exhibit 24

POWER OF ATTORNEY

(FORM 10-K)

POLARIS INDUSTRIES INC., a Minnesota corporation (the “Company”), and each of the undersigned directors of the Company, hereby constitutes and appoints Scott W. Wine and Michael W. Malone and each of them (with full power to each of them to act alone) its/his/her true and lawful attorney-in-fact and agent, for it/him/her and on its/his/her behalf and in its/his/her name, place and stead, in any and all capacities to sign, execute, affix its/his/her seal thereto and file the Annual Report on Form 10-K for the year ended December 31, 2014 under the Securities Exchange Act of 1934, as amended, with any amendment or amendments thereto, with all exhibits and any and all documents required to be filed with respect thereto with any regulatory authority.

There is hereby granted to said attorneys, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in respect of the foregoing as fully as it/he/she or itself/himself/herself might or could do if personally present, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may lawfully do or cause to be done by virtue hereof.

This Power of Attorney may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same instrument and any of the undersigned directors may execute this Power of Attorney by signing any such counterpart.

POLARIS INDUSTRIES INC. has caused this Power of Attorney to be executed in its name by its Chief Executive Officer on the 29^th day of January, 2015.  

POLARIS INDUSTRIES INC.
By	/s/ Scott W. Wine
	Scott W. Wine Chairman and Chief Executive Officer

The undersigned, directors of POLARIS INDUSTRIES INC., have hereunto set their hands as of the 29^th day of January, 2015.

/s/ Annette K. Clayton	/s/ Bernd F. Kessler
Annette K. Clayton	Bernd F. Kessler
/s/ Brian C. Cornell	/s/ R.M. Schreck
Brian C. Cornell	R. M. Schreck
/s/ Kevin M. Farr	/s/ John P. Wiehoff
Kevin M. Farr	John P. Wiehoff
/s/ Gary E. Hendrickson	/s/ Scott W. Wine
Gary E. Hendrickson	Scott W. Wine

D I R E C T O R S

EX-31.A

EXHIBIT 31.a

I, Scott W. Wine, certify that:

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/  SCOTT W. WINE

Scott W. Wine

Chairman and Chief Executive Officer

Date: February 20, 2015

EX-31.B

EXHIBIT 31.b

I, Michael W. Malone, certify that:

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/  MICHAEL W. MALONE

Michael W. Malone

Vice President — Finance and

Chief Financial Officer

Date: February 20, 2015

EX-32.A

Exhibit 32.a

POLARIS INDUSTRIES INC.

STATEMENT PURSUANT TO 18 U.S.C. §1350

I, Scott W. Wine, Chief Executive Officer of Polaris Industries Inc., a Minnesota corporation (the “Company”), hereby certify as follows:

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, 2014 (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.

Date: February 20, 2015

/S/  SCOTT W. WINE

Scott W. Wine

Chairman and Chief Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Polaris Industries Inc. and will be retained by Polaris Industries Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.B

Exhibit 32.b

POLARIS INDUSTRIES INC.

STATEMENT PURSUANT TO 18 U.S.C. §1350

I, Michael W. Malone, Vice President — Finance and Chief Financial Officer of Polaris Industries Inc., a Minnesota corporation (the “Company”), hereby certify as follows:

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, 2014 (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.

Date: February 20, 2015

/S/  MICHAEL W. MALONE

Michael W. Malone

Vice President — Finance and Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Polaris Industries Inc. and will be retained by Polaris Industries Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Organization and Significant Accounting Policies Activity in Polaris Accrued Warranty Reserve (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Activity in Product Warranty Reserve [Roll Forward]
Balance at beginning of period	$ 52,818	$ 47,723	$ 44,355
Additions to warranty reserve through acquisitions	160	1,602	900
Additions charged to expense	61,888	56,857	46,088
Warranty claims paid	(61,762)	(53,364)	(43,620)
Balance at end of period	$ 53,104	$ 52,818	$ 47,723

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Income Before Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
United States	$ 666,323	$ 535,265	$ 458,635
Foreign	32,994	39,164	21,208
Income before income taxes	$ 699,317	$ 574,429	$ 479,843

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Summary of Activity Under Credit Arrangements, Excluding Acquired Borrowings (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Debt Disclosure [Abstract]
Total borrowings at December 31	$ 200,000	$ 280,500	$ 100,000
Average outstanding borrowings during year	361,715	138,400	100,000
Maximum outstanding borrowings during year	$ 500,000	$ 411,000	$ 100,000
Interest rate at December 31	3.77%	2.98%	4.40%

XML

Commitments and Contingencies - Additional Information (Detail) (USD $)	0 Months Ended	12 Months Ended
	Jul. 23, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Loss Contingencies [Line Items]
Accrual for the probable payment of pending claims		$ 17,327,000
Loss from discontinued operations	3,777,000	0	3,777,000	0
Operating Leases, Rent Expense		13,734,000	10,656,000	10,349,000
Level 3
Loss Contingencies [Line Items]
Fair value of contingent purchase price commitments		27,908,000	18,249,000
Polaris Industries Inc | Damages from Product Defects
Loss Contingencies [Line Items]
Damages awarded to Plaintiff	10,000,000
Polaris Industries Inc Plus Third Parties | Damages from Product Defects
Loss Contingencies [Line Items]
Damages awarded to Plaintiff	$ 21,000,000

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Components of Provision for Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Current:
Federal	$ 255,299	$ 167,690	$ 169,833
State	20,438	12,942	15,366
Foreign	21,584	15,457	8,593
Deferred	(52,033)	(2,729)	(26,259)
Total provision for income taxes for continuing operations	$ 245,288	$ 193,360	$ 167,533

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Valuation and Qualifying Accounts (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Allowance for obsolete inventory
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 21,603	$ 17,357	$ 15,943
Additions Charged to Costs and Expenses	12,868	9,966	6,258
Additions Through Acquisition	600	2,423	15
Other Changes Add (Deduct)	(8,900)	(8,143)	(4,859)
Balance at End of Period	26,171	21,603	17,357
Allowance for doubtful accounts receivable
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	5,895	4,268	4,473
Additions Charged to Costs and Expenses	2,347	75	375
Additions Through Acquisition	265	2,192	365
Other Changes Add (Deduct)	(1,083)	(640)	(945)
Balance at End of Period	$ 7,424	$ 5,895	$ 4,268

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Employee Savings Plans - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expenses related ESOP	$ 10,789	$ 9,224	$ 7,380
Shares vested under ESOP	3,925,000
Matching percentage of employer to employee contributions	100.00%
Matching contributions to 401(k) retirement savings plan	12,486	10,651	9,318
Temporary Equity, Shares Issued	89,444
Deferred compensation	13,528	8,421
Temporary Equity, Other Changes	7,378
Temporary Equity, Accretion to Redemption Value, Adjustment	6,150
Employee Stock Ownership Plan E S O P Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Maximum number of shares of common stock available for issuance	7,200,000
Fair value, measurements, recurring
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Assets, fair value disclosure	41,797	24,741
Fair value, measurements, recurring | Non-qualified deferred compensation assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Assets, fair value disclosure	41,797	24,711
Level 1 | Fair value, measurements, recurring
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Assets, fair value disclosure	41,797	24,711
Level 1 | Fair value, measurements, recurring | Non-qualified deferred compensation assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Assets, fair value disclosure	$ 41,797	$ 24,711

XML

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Annual Lease Payments under Capital and Operating Leases with Non-cancelable Terms in Excess of One Year

Future minimum annual lease payments under capital and operating leases with noncancelable terms in excess of one year as of December 31, 2014, are as follows (in thousands):

	Capital Leases		Operating Leases
2015	$	3,915	$	9,576
2016	3,281		5,098
2017	2,903		3,326
2018	2,403		1,945
2019	2,203		1,173
Thereafter	23,639		1,403
Total future minimum lease obligation	$	38,344	$	22,521

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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	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in accumulated OCI on derivative (effective portion)	$ (1,631)	$ 1,610
Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in accumulated OCI on derivative (effective portion)	0	(26)
Foreign currency contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in accumulated OCI on derivative (effective portion)	$ (1,631)	$ 1,636

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Net Deferred Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Current deferred income taxes:
Inventories	$ 9,034	$ 6,306
Accrued expenses	104,279	87,157
Derivative instruments	864	(107)
Total current	114,177	93,356
Noncurrent deferred income taxes:
Cost in excess of net assets of business acquired	(13,111)	(13,594)
Property and equipment	(28,921)	(36,069)
Compensation payable in common stock	58,446	42,528
Net operating loss carryforwards and impairments	12,693	5,782
Valuation allowance	(6,097)	(5,059)
Total noncurrent	23,010	(6,412)
Total net deferred income tax asset	$ 137,187	$ 86,944

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Subsequent Events (Details)	0 Months Ended
	Jan. 29, 2015	Dec. 31, 2014	Jan. 09, 2015 sqft
Subsequent Event [Line Items]
Remaining authorized repurchase amount		1,050,000
Subsequent Event
Subsequent Event [Line Items]
Increase in authorized amount	4,000,000
Remaining authorized repurchase amount	1,100,000
Authorized shares to outstanding stock	8.00%
Building | Subsequent Event
Subsequent Event [Line Items]
Area of building			600,000

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Quarterly Financial Data (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Quarterly Financial Data [Abstract]
Sales	$ 1,275,000	$ 1,302,343	$ 1,013,959	$ 888,346	$ 1,083,710	$ 1,102,649	$ 844,800	$ 745,909	$ 4,479,648	$ 3,777,068	$ 3,209,782
Gross profit	367,573	388,274	304,914	258,417	317,108	334,785	252,338	216,648	1,319,178	1,120,879	925,297
Net income from continuing operations	135,397	140,826	96,905	80,901	108,680	116,921	80,004	75,464	454,029	381,069	312,310
Net income	$ 135,397	$ 140,826	$ 96,905	$ 80,901	$ 108,680	$ 113,144	$ 80,004	$ 75,464	$ 454,029	$ 377,292	$ 312,310
Diluted net income per share from continuing operations (in dollars per share)	$ 1.98	$ 2.06	$ 1.42	$ 1.19	$ 1.56	$ 1.64	$ 1.13	$ 1.07	$ 6.65	$ 5.40	$ 4.40
Diluted net income per share (in dollars per share)	$ 1.98	$ 2.06	$ 1.42	$ 1.19	$ 1.56	$ 1.59	$ 1.13	$ 1.07	$ 6.65	$ 5.35	$ 4.40

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Derivative Instruments and Hedging Activities Open Foreign Currency Contracts (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Derivative [Line Items]
Derivative, Fair Value, Net	$ (7,179)	$ 21
Cash Flow Hedging | Foreign currency contracts
Derivative [Line Items]
Notional Amounts (in U.S. dollars)	100,302
Derivative, Fair Value, Net	(2,570)
Canadian Dollar | Cash Flow Hedging | Foreign currency contracts
Derivative [Line Items]
Notional Amounts (in U.S. dollars)	40,550
Derivative, Fair Value, Net	38
Japanese Yen | Cash Flow Hedging | Foreign currency contracts
Derivative [Line Items]
Notional Amounts (in U.S. dollars)	22,201
Derivative, Fair Value, Net	(1,008)
Mexican Peso | Cash Flow Hedging | Foreign currency contracts
Derivative [Line Items]
Notional Amounts (in U.S. dollars)	34,060
Derivative, Fair Value, Net	$ (1,991)

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Organization and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Basis of Presentation

Basis of presentation. The accompanying consolidated financial statements include the accounts of Polaris and its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Income from financial services is reported as a component of operating income to better reflect income from ongoing operations, of which financial services has a significant impact.

On September 2, 2004, the Company announced its decision to discontinue the manufacture of marine products effective immediately. Material financial results for the marine products division are reported separately as discontinued operations for all periods presented.

The Company evaluates consolidation of entities under Accounting Standards Codification (ASC) Topic 810. This Topic requires management to evaluate whether an entity or interest is a variable interest entity and whether the company is the primary beneficiary. Polaris used the guidelines to analyze the Company’s relationships, including its relationship with Polaris Acceptance, and concluded that there were no variable interest entities requiring consolidation by the Company in 2014, 2013 and 2012.

In April 2014, the Company completed an acquisition of Kolpin Outdoors, Inc. ("Kolpin"), and in November 2014, completed the acquisition of certain assets of LSI Products Inc. and Armor Holdings, LLC. ("Pro Armor"). Kolpin is a leading aftermarket brand delivering purpose-built and universal-fit ORV accessories and lifestyle products. Pro Armor is an industry-leading brand in performance side-by-side accessories, that operates under the Pro Armor brand. The Company has included the financial results of the acquisitions in its consolidated results of operations beginning on the respective acquisition dates; however, the acquisitions did not have a material impact on Polaris’ consolidated financial position or results of operations. Refer to Note 5 for additional information regarding the acquisitions of Kolpin and Pro Armor.

Reclassifications

Reclassifications. Certain reclassifications of previously reported balance sheet amounts have been made to conform to the current year presentation. The reclassifications had no impact on the consolidated statements of income, current assets or current liabilities in the consolidated balance sheets, as previously reported.

Use of Estimates

Use of estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate results could differ from those estimates.

Fair Value Measurements

Fair value measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date:

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.

In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. 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, and for the income approach the Company uses significant other observable inputs to value its 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):

	Fair Value Measurements as of December 31, 2014
Asset (Liability)	Total			Level 1			Level 2			Level 3
Non-qualified deferred compensation assets	$	41,797		$	41,797		—			—
Total assets at fair value	$	41,797		$	41,797		—			—
Commodity contracts, net	$	(4,609	)	—			$	(4,609	)
Foreign exchange contracts, net	(2,570		)	—			(2,570		)	—
Non-qualified deferred compensation liabilities	(41,797		)	$	(41,797	)	—			—
Total liabilities at fair value	$	(48,976	)	$	(41,797	)	$	(7,179	)	—
	Fair Value Measurements as of December 31, 2013
Asset (Liability)	Total			Level 1			Level 2			Level 3
Commodity contracts, net	$	30		—			$	30		—
Non-qualified deferred compensation assets	24,711			$	24,711		—			—
Total assets at fair value	$	24,741		$	24,711		$	30		—
Foreign exchange contracts, net	$	(9	)	—			$	(9	)	—
Non-qualified deferred compensation liabilities	(24,711		)	$	(24,711	)	—			—
Total liabilities at fair value	$	(24,720	)	$	(24,711	)	$	(9	)	—

Polaris measures certain assets and liabilities at fair value on a nonrecurring basis. Assets acquired and liabilities assumed as part of acquisitions are measured at fair value. Refer to Note 5 for additional information. Polaris will impair or write off an investment and recognize a loss when events or circumstances indicate there is impairment in the investment that is other-than-temporary. The amount of loss is determined by measuring the investment at fair value. Refer to Note 9 for additional information.

Cash Equivalents

Cash equivalents. Polaris considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. Such investments consist principally of money market mutual funds.

Allowance for Doubtful Accounts

Allowance for doubtful accounts. Polaris’ financial exposure to collection of accounts receivable is limited due to its agreements with certain finance companies. For receivables not serviced through these finance companies, the Company provides a reserve for doubtful accounts based on historical rates and trends. This reserve is adjusted periodically as information about specific accounts becomes available.

Inventories

Inventories. Inventory costs include material, labor, and manufacturing overhead costs, including depreciation expense associated with the manufacture and distribution of the Company's products. Inventories are stated at the lower of cost (first-in, first-out method) or market.

Investment in Affiliate

Investment in other affiliates. Polaris' investment in other affiliates is included within other long-term assets in the consolidated balance sheets, and represents the Company’s investment in nonmarketable securities of strategic companies. For each investment, Polaris assesses the level of influence in determining whether to account for the investment under the cost method or equity method. For equity method investments, Polaris’ proportionate share of income or losses is recorded in the consolidated statements of income. Polaris will write down or write off an investment and recognize a loss if and when events or circumstances indicate there is impairment in the investment that is other-than-temporary. Refer to Note 9 for additional information regarding Polaris’ investment in other affiliates.

Investment in finance affiliate. The caption investment in finance affiliate in the consolidated balance sheets represents Polaris’ fifty percent equity interest in Polaris Acceptance, a partnership agreement between GE Commercial Distribution Finance Corporation (“GECDF”) and one of Polaris’ wholly-owned subsidiaries. Polaris Acceptance provides floor plan financing to Polaris dealers in the United States. Polaris’ investment in Polaris Acceptance is accounted for under the equity method, and is recorded as investment in finance affiliate in the consolidated balance sheets. Polaris’ allocable share of the income of Polaris Acceptance has been included as a component of income from financial services in the consolidated statements of income. Refer to Note 8 for additional information regarding Polaris’ investment in Polaris Acceptance.

Property and Equipment

Property and equipment. Property and equipment is stated at cost. Depreciation is provided using the straight-line method over the estimated useful life of the respective assets, ranging from 10-40 years for buildings and improvements and from 1-7 years for equipment and tooling. Depreciation of assets recorded under capital leases is included with depreciation expense. Fully depreciated tooling is eliminated from the accounting records annually.

Goodwill and Other Intangible Assets

Goodwill and other intangible assets. ASC Topic 350 prohibits the amortization of goodwill and intangible assets with indefinite useful lives. Topic 350 requires that these assets be reviewed for impairment at least annually. An impairment charge for goodwill is recognized only when the estimated fair value of a reporting unit, including goodwill, is less than its carrying amount. Refer to Note 5 for additional information regarding goodwill and other intangible assets.

Revenue Recognition

Revenue recognition. Revenues are recognized at the time of shipment to the dealer or distributor or other customers. Product returns, whether in the normal course of business or resulting from repossession under the Company's customer financing program (see Note 8), have not been material. Polaris sponsors certain sales incentive programs and accrues liabilities for estimated sales promotion expenses and estimated holdback amounts that are recognized as reductions to sales when products are sold to the dealer or distributor customer.

Sales Promotions and Incentives

Sales promotions and incentives. Polaris provides for estimated sales promotion and incentive expenses, which are recognized as a reduction to sales, at the time of sale to the dealer or distributor. Examples of sales promotion and incentive programs include dealer and consumer rebates, volume incentives, retail financing programs and sales associate incentives. Sales promotion and incentive expenses are estimated based on current programs and historical rates for each product line. Actual results may differ from these estimates if market conditions dictate the need to enhance or reduce sales promotion and incentive programs or if the customer usage rate varies from historical trends. Historically, sales promotion and incentive expenses have been within the Company’s expectations and differences have not been material.

Dealer Holdback Programs

Dealer holdback programs. Dealer holdback represents a portion of the invoiced sales price that is expected to be subsequently returned to the dealer or distributor as a sales incentive upon the ultimate retail sale of the product. Holdback amounts reduce the ultimate net price of the products purchased by Polaris’ dealers or distributors and, therefore, reduce the amount of sales Polaris recognizes at the time of shipment. The portion of the invoiced sales price estimated as the holdback is recognized as “dealer holdback” liability on the Company’s balance sheet until paid or forfeited. The minimal holdback adjustments in the estimated holdback liability due to forfeitures are recognized in net sales. Payments are made to dealers or distributors at various times during the year subject to previously established criteria.

Shipping and Handling Costs

Shipping and handling costs. Polaris records shipping and handling costs as a component of cost of sales at the time the product is shipped.

Research and Development Expenses

Research and development expenses. Polaris records research and development expenses in the period in which they are incurred as a component of operating expenses.

Advertising Expenses

Advertising expenses. Polaris records advertising expenses as a component of selling and marketing expenses in the period in which they are incurred.

Product Warranties

Product warranties. Polaris provides a limited warranty for its ORVs for a period of six months, for a period of one year for its snowmobiles, for a period of one or two years for its motorcycles depending on brand and model year, and for a two year period for SVs. Polaris provides longer warranties in certain geographical markets as determined by local regulations and market conditions and may also provide longer warranties related to certain promotional programs. Polaris’ standard warranties require the Company or its dealers to repair or replace defective products during such warranty periods at no cost to the consumer. The warranty reserve is established at the time of sale to the dealer or distributor based on management’s best estimate using historical rates and trends. Adjustments to the warranty reserve are made from time to time as actual claims become known in order to properly estimate the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. Factors that could have an impact on the warranty accrual in any given period include the following: improved manufacturing quality, shifts in product mix, changes in warranty coverage periods, snowfall and its impact on snowmobile usage, product recalls and any significant changes in sales volume.

Share-Based Employee Compensation

Share-based employee compensation. For purposes of determining the estimated fair value of share-based payment awards on the date of grant under ASC Topic 718, Polaris uses the Black-Scholes Model. The Black-Scholes Model requires the input of certain assumptions that require judgment. Because employee stock options and restricted stock awards have characteristics significantly different from those of traded options, and because changes in the input assumptions can materially affect the fair value estimate, the existing models may not provide a reliable single measure of the fair value of the employee stock options or restricted stock awards. Management will continue to assess the assumptions and methodologies used to calculate estimated fair value of share-based compensation. Circumstances may change and additional data may become available over time, which could result in changes to these assumptions and methodologies and thereby materially impact the fair value determination. If factors change and the Company employs different assumptions in the application of Topic 718 in future periods, the compensation expense that was recorded under Topic 718 may differ significantly from what was recorded in the current period. Refer to Note 2 for additional information regarding share-based compensation.

The Company estimates the likelihood and the rate of achievement for performance share-based awards. Changes in the estimated rate of achievement and fluctuation in the market based stock price can have a significant effect on reported share-based compensation expenses as the effect of a change in the estimated achievement level and fluctuation in the market based stock price is recognized in the period that the likelihood factor and stock price changes. If adjustments in the estimated rate of achievement and fluctuation in the market based stock price are made, they would be reflected in our gross margin and operating expenses.

Derivative Instruments and Hedging Activities

Derivative instruments and hedging activities. Changes in the fair value of a derivative are recognized in earnings unless the derivative qualifies as a hedge. To qualify as a hedge, the Company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting.

Polaris enters into foreign exchange contracts to manage currency exposures from certain of its purchase commitments denominated in foreign currencies and transfers of funds from time to time from its foreign subsidiaries. Polaris does not use any financial contracts for trading purposes. These contracts met the criteria for cash flow hedges. Gains and losses on the Canadian dollar, Norwegian Krone, Swedish Krona and Australian dollar contracts at settlement are recorded in non-operating other expense (income) in the consolidated income statements, and gains and losses on the Japanese yen, Mexican peso and Euro contracts at settlement are recorded in cost of sales in the consolidated income statements. Unrealized gains and losses are recorded as a component of accumulated other comprehensive income (loss).

Polaris is subject to market risk from fluctuating market prices of certain purchased commodity raw materials, including steel, aluminum, diesel fuel, and petroleum-based resins. In addition, the Company purchases components and parts containing various commodities, including steel, aluminum, rubber, rare earth metals and others which are integrated into the Company’s end products. While such materials are typically available from numerous suppliers, commodity raw materials are subject to price fluctuations. The Company generally buys these commodities and components based upon market prices that are established with the vendor as part of the purchase process. From time to time, Polaris utilizes derivative contracts to hedge a portion of the exposure to commodity risks. During 2014 and 2013, the Company entered into derivative contracts to hedge a portion of the exposure for diesel fuel and aluminum. The Company's diesel fuel and aluminum hedging contracts do not meet the criteria for hedge accounting and therefore, the resulting unrealized gains and losses from those contracts are included in the consolidated statements of income in cost of sales. Refer to Note 11 for additional information regarding derivative instruments and hedging activities.

The gross unrealized gains and losses of these contracts are recorded in the accompanying balance sheets as other current assets or other current liabilities.

Foreign Currency Translation

Foreign currency translation. The functional currency for each of the Polaris foreign subsidiaries is their respective local currencies. The assets and liabilities in all Polaris foreign entities are translated at the foreign exchange rate in effect at the balance sheet date. Translation gains and losses are reflected as a component of accumulated other comprehensive income (loss) in the shareholders’ equity section of the accompanying consolidated balance sheets. Revenues and expenses in all of Polaris’ foreign entities are translated at the average foreign exchange rate in effect for each month of the quarter. Transaction gains and losses including intercompany transactions denominated in a currency other than the functional currency of the entity involved are included in other expense (income), net in our consolidated statements of income.

Comprehensive Income

Comprehensive income. Components of comprehensive income include net income, foreign currency translation adjustments, and unrealized gains or losses on derivative instruments. The Company has chosen to disclose comprehensive income in separate consolidated statements of comprehensive income.

New Accounting Pronouncements

New accounting pronouncements. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue from the transfer of goods or services to customers in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. Polaris is required to adopt the new pronouncement on January 1, 2017 using one of two retrospective application methods. The Company is evaluating the application method and the impact of this new standard on the financial statements.

There are no other new accounting pronouncements that are expected to have a significant impact on Polaris' consolidated financial statements.

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Goodwill and Other Intangible Assets Changes in Carrying Amount of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Goodwill [Roll Forward]
Balance as of beginning of year	$ 126,697	$ 56,324
Goodwill acquired during the period	7,456	66,085
Currency translation effect on foreign goodwill balances	(11,122)	4,288
Balance as of end of year	$ 123,031	$ 126,697

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Share-Based Compensation - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	5 years 2 months 1 day
Unrecognized compensation cost related to unvested share-based equity awards	$ 82,778
Weighted average period of recognition of unvested share-based equity awards (in years)	1 year 6 months
Unrecognized compensation cost related to unvested share-based equity awards, Stock Options	36,746
Unrecognized compensation cost related to unvested share-based equity awards, Restricted Stock	46,032
Weighted average remaining contractual life of option outstanding	6 years 9 months 29 days
Estimated weighted average fair value of options granted	$ 39.97	$ 30.43	$ 23.40
Total intrinsic value of options exercised	108,584
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	365,160
Total intrinsic value of options outstanding and exercisable	202,788
Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares of common stock available for issuance	13,500,000
Omnibus Incentive Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option awards granted, vesting period	2 years
Omnibus Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option awards granted, vesting period	4 years
Omnibus Incentive Plan | Deferred Stock Units | Non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares granted	9,000	12,000	12,000
Omnibus Incentive Plan | Deferred Stock Units | Non-employee directors | Since 2007
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares granted	138,000
Stock Option Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares granted	705,564	1,037,729	570,700
Stock Option Plans | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option awards granted, vesting period	3 years
Stock Option Plans | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option awards granted, expiration period	10 years
Directors Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum shares authorized for issuance	500,000
Shares of common stock earned	101,000
Additional shares issued to retired directors	381,000
Liabilities under share plan	15,217	17,031
Long Term Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Liabilities under share plan		57,166
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of restricted stock expected to vest	$ 135,396
Weighted average fair values at the grant dates of grants awarded	$ 134.34	$ 88.84	$ 70.12

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Polaris' Foreign Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]
Sales	$ 1,275,000	$ 1,302,343	$ 1,013,959	$ 888,346	$ 1,083,710	$ 1,102,649	$ 844,800	$ 745,909	$ 4,479,648	$ 3,777,068	$ 3,209,782
Identifiable assets	555,428				455,167				555,428	455,167
UNITED STATES
Segment Reporting Information [Line Items]
Sales									3,339,905	2,721,300	2,310,943
Identifiable assets	432,614				349,224				432,614	349,224
Canadian subsidiary
Segment Reporting Information [Line Items]
Sales									454,608	463,316	438,208
MEXICO
Segment Reporting Information [Line Items]
Identifiable assets	49,064				52,450				49,064	52,450
Other foreign countries
Segment Reporting Information [Line Items]
Sales									685,135	592,452	460,631
Identifiable assets	$ 73,750				$ 53,493				$ 73,750	$ 53,493

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Fair Value Measurements (Details) (Fair value, measurements, recurring, USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Assets, fair value disclosure	$ 41,797	$ 24,741
Liabilities, fair value disclosure	(48,976)	(24,720)
Non-qualified deferred compensation assets
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Assets, fair value disclosure	41,797	24,711
Commodity contracts
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Assets, fair value disclosure		30
Liabilities, fair value disclosure	(4,609)
Foreign currency contracts
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Liabilities, fair value disclosure	(2,570)	(9)
Non-qualified deferred compensation liabilities
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Liabilities, fair value disclosure	(41,797)	(24,711)
Level 1
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Assets, fair value disclosure	41,797	24,711
Liabilities, fair value disclosure	(41,797)	(24,711)
Level 1 | Non-qualified deferred compensation assets
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Assets, fair value disclosure	41,797	24,711
Level 1 | Non-qualified deferred compensation liabilities
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Liabilities, fair value disclosure	(41,797)	(24,711)
Level 2
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Assets, fair value disclosure	0	30
Liabilities, fair value disclosure	(7,179)	(9)
Level 2 | Non-qualified deferred compensation assets
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Assets, fair value disclosure	0
Level 2 | Commodity contracts
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Assets, fair value disclosure		30
Liabilities, fair value disclosure	(4,609)
Level 2 | Foreign currency contracts
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]
Liabilities, fair value disclosure	$ (2,570)	$ (9)

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Components of Other Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Intangible Assets by Major Class [Line Items]
Amortizable, Gross Carrying Amount	$ 77,869	$ 75,091
Accumulated Amortization	(23,158)	(13,268)	(4,015)
Amortizable, Net	54,711	61,823
Total other intangible assets, Gross Carrying Amount	124,093	116,279	54,907
Total other intangible assets, net	100,935	103,011
Non-compete agreements
Intangible Assets by Major Class [Line Items]
Total Estimated Life (years)	5 years	5 years
Amortizable, Gross Carrying Amount	540	540
Accumulated Amortization	(293)	(185)
Amortizable, Net	247	355
Dealer/customer related
Intangible Assets by Major Class [Line Items]
Total Estimated Life (years)	7 years	7 years
Amortizable, Gross Carrying Amount	62,758	59,244
Accumulated Amortization	(16,361)	(8,608)
Amortizable, Net	46,397	50,636
Developed technology
Intangible Assets by Major Class [Line Items]
Amortizable, Gross Carrying Amount	14,571	15,307
Accumulated Amortization	(6,504)	(4,475)
Amortizable, Net	8,067	10,832
Developed technology | Minimum
Intangible Assets by Major Class [Line Items]
Total Estimated Life (years)	5 years	5 years
Developed technology | Maximum
Intangible Assets by Major Class [Line Items]
Total Estimated Life (years)	7 years	7 years
Non-amortizable—brand/trade names
Intangible Assets by Major Class [Line Items]
Non-amortizable, Gross Carrying Amount	46,224	41,188
Non-amortizable, Net	$ 46,224	$ 41,188

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Financial Services Arrangements Additional Information (Detail) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014
Investments in and Advances to Affiliates [Line Items]
Investment in finance affiliate	$ 89,107,000	$ 69,217,000
Net amount financed for dealers	1,141,068,000
Trade receivables, net	204,876,000	186,213,000
Aggregate repurchase obligation, amount	120,815,000
Maximum
Investments in and Advances to Affiliates [Line Items]
Aggregate repurchase obligation	15.00%
Polaris Acceptance
Investments in and Advances to Affiliates [Line Items]
Equity method investment ownership percentage	50.00%		50.00%
Trade receivables, net	337,088,000
Securitization Facility
Investments in and Advances to Affiliates [Line Items]
Outstanding balance of receivables	$ 803,980,000

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Shareholders' Equity Reconciliation of Weighted Average Number of Shares (Detail) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Weighted Average Number of Shares Outstanding [Line Items]
Weighted average number of common shares outstanding	65,904	68,209	68,409
Director Plan and deferred stock units	196	242	341
ESOP	75	84	99
Common shares outstanding—basic	66,175	68,535	68,849
Common and potential common shares outstanding—diluted	68,229	70,546	71,005
Restricted Stock
Weighted Average Number of Shares Outstanding [Line Items]
Dilutive effect of stock awards	359	228	181
Stock Options [Member]
Weighted Average Number of Shares Outstanding [Line Items]
Dilutive effect of stock awards	1,695	1,783	1,975

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Financing Agreement Debt Instruments (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Long-term debt	$ 200,000	$ 280,500	$ 100,000
Total debt and capital lease obligations	226,148	287,623
Less: current maturities	2,528	3,281
Total long-term debt and capital lease obligations	223,620	284,342
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term debt	0	80,500
Senior Notes | Senior Unsecured Notes, 3.81 Percent, Due May 2018
Debt Instrument [Line Items]
Average interest rate	3.81%
Long-term debt	25,000	25,000
Senior Notes | Senior Unsecured Notes, 4.60 Percent, Due May 2021
Debt Instrument [Line Items]
Average interest rate	4.60%
Long-term debt	75,000	75,000
Senior Notes | Senior Unsecured Notes 3.13 Percent Due December 2020
Debt Instrument [Line Items]
Average interest rate	3.13%
Long-term debt	100,000	100,000
Capital lease obligations
Debt Instrument [Line Items]
Average interest rate	5.02%
Capital lease obligations	$ 26,148	$ 7,123

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Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Operating Activities:
Net income	$ 454,029	$ 377,292	$ 312,310
Loss from discontinued operations	0	3,777	0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	127,507	92,100	70,580
Noncash compensation	63,183	57,893	35,420
Noncash income from financial services	(18,645)	(4,983)	(3,899)
Deferred income taxes	(50,388)	(5,892)	(28,901)
Tax effect of share-based compensation exercises	(36,966)	(28,621)	(29,892)
Other, net	6,124	7,414	179
Changes in operating assets and liabilities:
Trade receivables	(24,174)	(54,055)	2,413
Inventories	(158,476)	(52,049)	(36,029)
Accounts payable	105,783	51,519	21,371
Accrued expenses	30,664	53,278	39,269
Income taxes payable/receivable	45,324	33,398	51,120
Prepaid expenses and others, net	(14,695)	(31,919)	(17,831)
Cash provided by continuing operations	529,270	499,152	416,110
Cash used for discontinued operations	0	(6,912)	0
Net cash provided by operating activities	529,270	492,240	416,110
Investing Activities:
Purchase of property and equipment	(205,079)	(251,401)	(103,083)
Investment in finance affiliate	(32,582)	(19,251)	(18,400)
Distributions from finance affiliate	31,337	12,005	7,562
Investment in other affiliates	(12,445)	(10,934)	(7,996)
Acquisition of businesses, net of cash acquired	(28,013)	(137,104)	(41,135)
Net cash used for investing activities	(246,782)	(406,685)	(163,052)
Financing Activities:
Borrowings under debt arrangements / capital lease obligations	2,146,457	776,669	2,437
Repayments under debt arrangements / capital lease obligations	(2,228,587)	(597,492)	(7,478)
Repurchase and retirement of common shares	(81,812)	(530,033)	(127,525)
Cash dividends to shareholders	(126,908)	(113,722)	(101,534)
Tax effect of proceeds from share-based compensation exercises	36,966	28,621	29,892
Proceeds from stock issuances under employee plans	31,313	26,922	41,696
Net cash used for financing activities	(222,571)	(409,035)	(162,512)
Impact of currency exchange rates on cash balances	(14,565)	(1,287)	1,133
Net increase (decrease) in cash and cash equivalents	45,352	(324,767)	91,679
Cash and cash equivalents at beginning of period	92,248	417,015	325,336
Cash and cash equivalents at end of period	137,600	92,248	417,015
Noncash Activity:
Property and equipment obtained through capital leases	24,908	0	0
Supplemental Cash Flow Information:
Interest paid on debt borrowings	11,259	6,076	5,932
Income taxes paid	$ 261,550	$ 162,647	$ 143,510

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Shareholders' Equity Changes in Accumulated Other Comprehensive Income (Loss) Balances (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance as of December 31, 2013	$ 18,761
Reclassification to the income statement	(5,469)
Change in fair value	(40,533)
Balance as of December 31, 2014	(27,241)
Foreign currency contracts
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance as of December 31, 2013	18,582
Change in fair value	(44,371)
Balance as of December 31, 2014	(25,789)
Cash Flow Hedging
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance as of December 31, 2013	179
Reclassification to the income statement	(5,469)
Change in fair value	3,838
Balance as of December 31, 2014	$ (1,452)

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Stock Option Activity and Weighted Average Exercise Price (Detail) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Outstanding Shares
Forfeited	(2,800)
Stock Option Plans
Outstanding Shares
Beginning Balance	4,466,080	4,330,410	4,682,737
Granted	705,564	1,037,729	570,700
Exercised	(866,917)	(821,679)	(861,397)
Forfeited	(98,215)	(80,380)	(61,630)
Ending Balance	4,206,512	4,466,080	4,330,410
Vested or expected to vest at end of period	4,206,512
Options exercisable at end of period	1,640,169
Weighted-Average Exercise Price
Beginning Balance	$ 49.29	$ 35.50	$ 29.45
Granted	$ 130.10	$ 87.06	$ 66.19
Exercised	$ 30.33	$ 24.45	$ 22.54
Forfeited	$ 65.14	$ 47.55	$ 40.95
Ending Balance	$ 66.38	$ 49.29	$ 35.50
Vested or expected to vest at end of period	$ 66.38
Options exercisable at end of period	$ 32.52
Omnibus Incentive Plan
Outstanding Shares
Beginning Balance	162,431	353,572	1,098,546
Exercised	(96,398)	(191,141)	(744,974)
Ending Balance	63,233	162,431	353,572
Vested or expected to vest at end of period	63,233
Options exercisable at end of period	63,233
Weighted-Average Exercise Price
Beginning Balance	$ 23.74	$ 23.47	$ 25.08
Exercised	$ 23.77	$ 23.23	$ 25.84
Forfeited	$ 22.43
Ending Balance	$ 23.76	$ 23.74	$ 23.47
Vested or expected to vest at end of period	$ 23.76
Options exercisable at end of period	$ 23.76
Non Employee Directors, Plan
Outstanding Shares
Beginning Balance	0	16,000	80,000
Exercised	0	(16,000)	(64,000)
Forfeited			0
Ending Balance		0	16,000
Weighted-Average Exercise Price
Beginning Balance	$ 0.00	$ 27.10	$ 23.52
Exercised	$ 0.00	$ 27.10	$ 22.62
Forfeited			$ 0.00
Ending Balance		$ 0.00	$ 27.10

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Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of changes in carrying amount of goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 are as follows (in thousands):

	2014			2013
Balance as of beginning of year	$	126,697		$	56,324
Goodwill acquired during the period	7,456			66,085
Currency translation effect on foreign goodwill balances	(11,122		)	4,288
Balance as of end of year	$	123,031		$	126,697

Schedule of other intangible assets, changes in net carrying amount

For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2014 and 2013 are as follows (in thousands):

	2014						2013
	Gross Amount			Accumulated Amortization			Gross Amount		Accumulated Amortization
Other intangible assets, beginning	$	116,279		$	(13,268	)	$	54,907	$	(4,015	)
Intangible assets acquired during the period	16,050			—			57,388		—
Amortization expense	—			(11,599		)	—		(9,178		)
Currency translation effect on foreign balances	(8,236		)	1,709			3,984		(75		)
Other intangible assets, ending	$	124,093		$	(23,158	)	$	116,279	$	(13,268	)

Schedule of components of other intangible assets

The components of other intangible assets were as follows (in thousands):

December 31, 2014	Estimated Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net
Non-compete agreements	5	$	540	$	(293	)	$	247
Dealer/customer related	7	62,758		(16,361		)	46,397
Developed technology	5-7	14,571		(6,504		)	8,067
Total amortizable		77,869		(23,158		)	54,711
Non-amortizable—brand/trade names		46,224		—			46,224
Total other intangible assets, net		$	124,093	$	(23,158	)	$	100,935
December 31, 2013	Estimated Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net
Non-compete agreements	5	$	540	$	(185	)	$	355
Dealer/customer related	7	59,244		(8,608		)	50,636
Developed technology	5-7	15,307		(4,475		)	10,832
Total amortizable		75,091		(13,268		)	61,823
Non-amortizable—brand/trade names		41,188		—			41,188
Total other intangible assets, net		$	116,279	$	(13,268	)	$	103,011

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Financing (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Debt and capital lease obligations and the average related interest rates were as follows (in thousands):

	Average interest rate at December 31, 2014	Maturity	December 31, 2014		December 31, 2013
Revolving loan facility	—	January 2018	—		$	80,500
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	5.02%	Various through 2029	26,148		7,123
Total debt and capital lease obligations			$	226,148	$	287,623
Less: current maturities			2,528		3,281
Total long-term debt and capital lease obligations			$	223,620	$	284,342

Summary of Activity Under Credit Arrangements, Excluding Acquired Borrowings

The following summarizes activity under Polaris’ credit arrangements (dollars in thousands):

	2014			2013			2012
Total borrowings at December 31	$	200,000		$	280,500		$	100,000
Average outstanding borrowings during year	$	361,715		$	138,400		$	100,000
Maximum outstanding borrowings during year	$	500,000		$	411,000		$	100,000
Interest rate at December 31	3.77		%	2.98		%	4.40		%

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Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Federal statutory rate	35.00%	35.00%	35.00%
State income taxes, net of federal benefit	1.50%	1.50%	1.80%
Domestic manufacturing deduction	(1.10%)	(1.00%)	(1.50%)
Research and development tax credit	(1.10%)	(2.20%)	0.00%
Valuation allowance for foreign subsidiaries net operating losses	0.00%	0.30%	0.00%
Other permanent differences	0.80%	0.10%	(0.40%)
Effective income tax rate for continuing operations	35.10%	33.70%	34.90%

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Assumptions Used to Estimate Weighted Average Fair Value of Options (Detail)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted-average volatility	40.00%	49.00%	50.00%
Expected dividend yield	1.50%	1.90%	2.20%
Expected term (in years)	4 years 6 months	4 years 5 months	4 years 7 months 6 days
Weighted average risk free interest rate	1.60%	0.90%	0.70%

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Before Income Taxes

Polaris’ income from continuing operations before income taxes was generated from its United States and foreign operations as follows (in thousands):

	For the Years Ended December 31,
	2014		2013		2012
United States	$	666,323	$	535,265	$	458,635
Foreign	32,994		39,164		21,208
Income from continuing operations before income taxes	$	699,317	$	574,429	$	479,843

Components of Provision for Income Taxes

Components of Polaris’ provision for income taxes for continuing operations are as follows (in thousands):

	For the Years Ended December 31,
	2014			2013			2012
Current:
Federal	$	255,299		$	167,690		$	169,833
State	20,438			12,942			15,366
Foreign	21,584			15,457			8,593
Deferred	(52,033		)	(2,729		)	(26,259		)
Total provision for income taxes for continuing operations	$	245,288		$	193,360		$	167,533

Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate

Reconciliation of the Federal statutory income tax rate to the effective tax rate is as follows:

	For the Years Ended December 31,
	2014		2013		2012
Federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	1.5		1.5		1.8
Domestic manufacturing deduction	(1.1	)	(1.0	)	(1.5	)
Research and development tax credit	(1.1	)	(2.2	)	—
Valuation allowance for foreign subsidiaries net operating losses	—		0.3		—
Other permanent differences	0.8		0.1		(0.4	)
Effective income tax rate for continuing operations	35.1	%	33.7	%	34.9	%

Net Deferred Income Taxes

The net deferred income taxes consist of the following (in thousands):

	December 31,
	2014			2013
Current deferred income taxes:
Inventories	$	9,034		$	6,306
Accrued expenses	104,279			87,157
Derivative instruments	864			(107		)
Total current	114,177			93,356
Noncurrent deferred income taxes:
Cost in excess of net assets of business acquired	(13,111		)	(13,594		)
Property and equipment	(28,921		)	(36,069		)
Compensation payable in common stock	58,446			42,528
Net operating loss carryforwards and impairments	12,693			5,782
Valuation allowance	(6,097		)	(5,059		)
Total noncurrent	23,010			(6,412		)
Total net deferred income tax asset	$	137,187		$	86,944

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):

	For the Years Ended December 31,
	2014			2013
Balance at January 1,	$	13,199		$	6,704
Increases due to acquisition opening balance sheet positions	—			6,420
Gross increases for tax positions of prior years	55			561
Gross increases for tax positions of current year	1,456			3,755
Decreases due to settlements and other prior year tax positions	(2,346		)	(3,310		)
Decreases for lapse of statute of limitations	(1,586		)	(1,344		)
Currency translation effect on foreign balances	(942		)	413
Balance at December 31,	9,836			13,199
Reserves related to potential interest at December 31,	732			1,093
Unrecognized tax benefits at December 31,	$	10,568		$	14,292

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Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure Shareholders Equity [Abstract]

Schedule of cash dividends declared per common share

ash dividends declared per common share for the year ended December 31, 2014 and 2013 were as follows:

	For the Years Ended December 31,
	2014		2013
Quarterly dividend declared and paid per common share	$	0.48	$	0.42
Total dividends declared and paid per common share	$	1.92	$	1.68

Schedule of reconciliation of weighted average number of shares

A reconciliation of these amounts is as follows (in thousands):

	For the Years Ended December 31,
	2014	2013	2012
Weighted average number of common shares outstanding	65,904	68,209	68,409
Director Plan and deferred stock units	196	242	341
ESOP	75	84	99
Common shares outstanding—basic	66,175	68,535	68,849
Dilutive effect of restricted stock awards	359	228	181
Dilutive effect of stock option awards	1,695	1,783	1,975
Common and potential common shares outstanding—diluted	68,229	70,546	71,005

Schedule of changes in accumulated other comprehensive income (loss) balances

Changes in the accumulated other comprehensive income (loss) balance is as follows (in thousands):

	Foreign Currency Items			Cash Flow Hedging Derivatives			Accumulated Other Comprehensive Income (loss)
Balance as of December 31, 2013	$	18,582		$	179		$	18,761
Reclassification to the income statement	—			(5,469		)	(5,469		)
Change in fair value	(44,371		)	3,838			(40,533		)
Balance as of December 31, 2014	$	(25,789	)	$	(1,452	)	$	(27,241	)

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 (loss) into the income statement for cash flow derivatives designated as hedging instruments for the year ended December 31, 2014 and 2013 (in thousands):

Derivatives in Cash Flow Hedging Relationships	Location of Gain (Loss) Reclassified from Accumulated OCI into Income	For the Years Ended December 31,
		2014			2013
Foreign currency contracts	Other (income), net	$	(5,641	)	$	(1,671	)
Foreign currency contracts	Cost of sales	172			977
Total		$	(5,469	)	$	(694	)

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Consolidated Statements Of Shareholders' Equity (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash dividends declared, per share	$ 1.92	$ 1.68	$ 1.48

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Financial Services Arrangements (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure Financial Services Arrangements [Abstract]

Financial Information for Polaris Acceptance Reflecting the Effects of Securitization Facility

Summarized financial information for Polaris Acceptance reflecting the effects of the Securitization Facility is presented as follows (in thousands):

	For the Years Ended December 31,
	2014		2013		2012
Revenues	$	40,968	$	13,010	$	8,811
Interest and operating expenses	3,678		3,044		1,013
Net income	$	37,290	$	9,966	$	7,798

	As of December 31,
	2014		2013
Finance receivables, net	$	337,088	$	226,742
Other assets	122		172
Total Assets	$	337,210	$	226,914
Notes payable	$	155,436	$	85,096
Other liabilities	3,560		3,384
Partners’ capital	178,214		138,434
Total Liabilities and Partners’ Capital	$	337,210	$	226,914

Income from Financial Services

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Organization and Significant Accounting Policies Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2014
Property, Plant and Equipment [Line Items]
Advertising expenses	$ 82,600	$ 73,945	$ 58,752
ORVs
Property, Plant and Equipment [Line Items]
Period of warranties provided by Polaris	6 years
Snowmobiles
Property, Plant and Equipment [Line Items]
Period of warranties provided by Polaris	1 year
SVs
Property, Plant and Equipment [Line Items]
Period of warranties provided by Polaris	2 years
Minimum | Motorcycles
Property, Plant and Equipment [Line Items]
Period of warranties provided by Polaris	1 year
Minimum | Building and Building Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	10 years
Minimum | Machinery Equipment And Production Tooling
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	1 year
Maximum | Motorcycles
Property, Plant and Equipment [Line Items]
Period of warranties provided by Polaris	2 years
Maximum | Building and Building Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	40 years
Maximum | Machinery Equipment And Production Tooling
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	7 years
Polaris Acceptance
Property, Plant and Equipment [Line Items]
Equity method investment ownership percentage	50.00%			50.00%

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Goodwill and Other Intangible Assets Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 123,031	$ 126,697	$ 56,324
Total other intangible assets, net	100,935	103,011
Amortization expense of intangible assets	11,599	9,178
Estimated Future Amortization Expense by Fiscal Year [Abstract]
2015	11,300
2016	11,300
2017	11,000
2018	9,500
2019	8,200
After 2019	$ 3,400

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Derivative Instruments and Hedging Activities Carrying Values of Derivative Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013
Derivative [Line Items]
Derivative Net Carrying Value	$ (7,179)		$ 21
Designated as Hedging Instrument
Derivative [Line Items]
Derivative Net Carrying Value	(2,570)		(9)
Designated as Hedging Instrument | Foreign currency contracts
Derivative [Line Items]
Derivative Net Carrying Value	(2,570)	[1]	(9)	[1]
Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative Net Carrying Value	(4,609)		30
Not Designated as Hedging Instrument | Commodity contracts
Derivative [Line Items]
Derivative Net Carrying Value	(4,609)	[1]	30	[1]
Prepaid Expenses And Other Current Assets
Derivative [Line Items]
Fair Value— Assets	534		1,240
Prepaid Expenses And Other Current Assets | Designated as Hedging Instrument
Derivative [Line Items]
Fair Value— Assets	534		1,194
Prepaid Expenses And Other Current Assets | Designated as Hedging Instrument | Foreign currency contracts
Derivative [Line Items]
Fair Value— Assets	534	[1]	1,194	[1]
Prepaid Expenses And Other Current Assets | Not Designated as Hedging Instrument
Derivative [Line Items]
Fair Value— Assets	0		46
Prepaid Expenses And Other Current Assets | Not Designated as Hedging Instrument | Commodity contracts
Derivative [Line Items]
Fair Value— Assets	0	[1]	46	[1]
Other Current Liabilities
Derivative [Line Items]
Fair Value— (Liabilities)	(7,713)		(1,219)
Other Current Liabilities | Designated as Hedging Instrument
Derivative [Line Items]
Fair Value— (Liabilities)	(3,104)		(1,203)
Other Current Liabilities | Designated as Hedging Instrument | Foreign currency contracts
Derivative [Line Items]
Fair Value— (Liabilities)	(3,104)	[1]	(1,203)	[1]
Other Current Liabilities | Not Designated as Hedging Instrument
Derivative [Line Items]
Fair Value— (Liabilities)	(4,609)		(16)
Other Current Liabilities | Not Designated as Hedging Instrument | Commodity contracts
Derivative [Line Items]
Fair Value— (Liabilities)	$ (4,609)	[1]	$ (16)	[1]

[1] Assets are included in prepaid expenses and other and liabilities are included in other accrued expenses on the accompanying consolidated balance sheets.

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Current Assets:
Cash and cash equivalents	$ 137,600	$ 92,248
Trade receivables, net	204,876	186,213
Inventories, net	565,685	417,948
Prepaid expenses and other	71,526	63,716
Income taxes receivable	2,691	12,217
Deferred tax assets	114,177	93,356
Total current assets	1,096,555	865,698
Land, buildings and improvements	272,802	228,916
Equipment and tooling	826,997	701,101
Property and equipment, gross	1,099,799	930,017
Less: accumulated depreciation	(544,371)	(474,850)
Property and equipment, net	555,428	455,167
Investment in finance affiliate	89,107	69,217
Deferred tax assets	41,201	18,616
Goodwill and other intangible assets, net	223,966	229,708
Other long-term assets	68,678	47,082
Total assets	2,074,935	1,685,488
Current liabilities:
Current portion of capital lease obligations	2,528	3,281
Accounts payable	343,470	238,044
Accrued expenses:
Compensation	102,379	143,504
Warranties	53,104	52,818
Sales promotions and incentives	138,630	123,089
Dealer holdback	120,093	100,600
Other	79,262	77,480
Income taxes payable	11,344	9,254
Total current liabilities	850,810	748,070
Long-term income taxes payable	10,568	14,292
Capital lease obligations	23,620	3,842
Long-term debt	200,000	280,500
Deferred tax liabilities	18,191	25,028
Other long-term liabilities	96,951	69,730
Total liabilities	1,200,140	1,141,462
Deferred compensation	13,528	8,421
Shareholders’ equity:
Preferred stock $0.01 par value, 20,000 shares authorized, no shares issued and outstanding	0	0
Common stock $0.01 par value, 160,000 shares authorized, 66,307 and 65,623 shares issued and outstanding, respectively	663	656
Additional paid-in capital	486,005	360,616
Retained earnings	401,840	155,572
Accumulated other comprehensive income (loss), net	(27,241)	18,761
Total shareholders’ equity	861,267	535,605
Total liabilities and shareholders’ equity	$ 2,074,935	$ 1,685,488

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Summary of Restricted Stock Activity (Detail) (Restricted Stock, USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Restricted Stock
Shares Outstanding
Beginning Balance	770,967
Granted	407,626
Vested	(65,020)
Canceled/Forfeited	(35,842)
Ending Balance	1,077,731	770,967
Expected to vest as of end of period	895,243
Weighted Average Grant Price
Beginning Balance	$ 74.47
Granted	$ 134.34	$ 88.84	$ 70.12
Vested	$ 50.29
Canceled/Forfeited	$ 87.12
Ending Balance	$ 98.15	$ 74.47
Expected to vest as of end of period	$ 94.80

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Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax benefit (expense)	$ 65	$ 1,841	$ (182)
Unrealized (loss) gain on derivative instruments, tax (expense) benefit	$ 970	$ (950)	$ 2,325

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Income Taxes - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Undistributed earnings relating to certain non-U.S. subsidiaries	$ 105,782	$ 75,487
Net operating loss carryforwards	$ 32,640

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Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Polaris' Foreign Operations

Sales to external customers based on the location of the customer and property and equipment, net, by geography are presented in the tables below (in thousands):

	For the Years Ended December 31,
	2014		2013		2012
United States	$	3,339,905	$	2,721,300	$	2,310,943
Canada	454,608		463,316		438,208
Other foreign countries	685,135		592,452		460,631
Consolidated sales	$	4,479,648	$	3,777,068	$	3,209,782

	As of December 31,
	2014		2013
United States	$	432,614	$	349,224
Mexico	49,064		52,450
Other foreign countries	73,750		53,493
Consolidated property and equipment, net	$	555,428	$	455,167

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Financial Information for Polaris Acceptance Reflecting Effects of Securitization Facility (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Polaris Acceptance
Schedule of Investments [Line Items]
Revenues	$ 40,968	$ 13,010	$ 8,811
Interest and operating expenses	3,678	3,044	1,013
Net income	37,290	9,966	7,798
Finance receivables, net	337,088	226,742
Other assets	122	172
Total Assets	337,210	226,914
Notes payable/(receivable)	155,436	85,096
Other liabilities	3,560	3,384
Partners' capital	178,214	138,434
Total Liabilities and Partners' Capital	$ 337,210	$ 226,914
Maximum
Schedule of Investments [Line Items]
Aggregate repurchase obligation	15.00%

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Subsequent Events (Notes)

12 Months Ended

Dec. 31, 2014

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On January 9, 2015, the Company announced plans to build a new production facility in Huntsville, Alabama to provide additional capacity and flexibility. The 600,000 square-foot facility will focus on off-road vehicle production. The Company will break ground on the facility in the first quarter of 2015 with completion expected in the first half of 2016.

On January 29, 2015, the Board of Directors approved an increase in the Company’s common stock repurchase authorization by 4.0 million shares. The additional share repurchase authorization, together with the 1.1 million shares remaining available for repurchase under the prior authorization, represents approximately eight percent of the shares of Polaris common stock currently outstanding.

The Company has evaluated events subsequent to the balance sheet date through the date the consolidated financial statements have been filed. There were no other subsequent events which required recognition or disclosure in the consolidated financial statements.

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Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Data [Abstract]

Quarterly Financial Data

	Sales		Gross profit		Net income from continuing operations		Net income		Diluted net income per share from continuing operations		Diluted net income per share
	(In thousands, except per share data)
2014
First Quarter	$	888,346	$	258,417	$	80,901	$	80,901	$	1.19	$	1.19
Second Quarter	1,013,959		304,914		96,905		96,905		1.42		1.42
Third Quarter	1,302,343		388,274		140,826		140,826		2.06		2.06
Fourth Quarter	1,275,000		367,573		135,397		135,397		1.98		1.98
Totals	$	4,479,648	$	1,319,178	$	454,029	$	454,029	$	6.65	$	6.65
2013
First Quarter	$	745,909	$	216,648	$	75,464	$	75,464	$	1.07	$	1.07
Second Quarter	844,800		252,338		80,004		80,004		1.13		1.13
Third Quarter	1,102,649		334,785		116,921		113,144		1.64		1.59
Fourth Quarter	1,083,710		317,108		108,680		108,680		1.56		1.56
Totals	$	3,777,068	$	1,120,879	$	381,069	$	377,292	$	5.40	$	5.35

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Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2014

Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

POLARIS INDUSTRIES INC.

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS

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)
2012: Deducted from asset accounts—Allowance for doubtful accounts receivable	$	4,473	$	375	365		$	(945	)	$	4,268
2013: Deducted from asset accounts—Allowance for doubtful accounts receivable	$	4,268	$	75	$	2,192	$	(640	)	$	5,895
2014: Deducted from asset accounts—Allowance for doubtful accounts receivable	$	5,895	$	2,347	$	265	$	(1,083	)	$	7,424

(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)
2012: Deducted from asset accounts—Allowance for obsolete inventory	$	15,943	$	6,258	$	15	$	(4,859	)	$	17,357
2013: Deducted from asset accounts—Allowance for obsolete inventory	$	17,357	$	9,966	$	2,423	$	(8,143	)	$	21,603
2014: Deducted from asset accounts—Allowance for obsolete inventory	$	21,603	$	12,868	$	600	$	(8,900	)	$	26,171

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Investment in Other Affiliates (Detail) (USD $)	12 Months Ended			36 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014
Investments in and Advances to Affiliates [Line Items]
Investment in finance affiliate	$ 89,107,000	$ 69,217,000		$ 89,107,000
Payments for (Proceeds from) Investments				21,878,000
Equity in loss of other affiliates	(4,124,000)	(2,414,000)	(179,000)
Eicher -Polaris Private Limited
Investments in and Advances to Affiliates [Line Items]
Equity method investment ownership percentage	50.00%			50.00%
Joint venture investment	50,000,000
Investment maturity period	3 years
Eicher -Polaris Private Limited
Investments in and Advances to Affiliates [Line Items]
Investment in finance affiliate	$ 14,601,000	$ 6,456,000		$ 14,601,000

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Consolidated Statements Of Shareholders' Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated other Comprehensive Income (Loss)
Beginning Balance at Dec. 31, 2011	$ 500,056	$ 684	$ 165,518	$ 321,831	$ 12,023
Beginning Balance (in shares) at Dec. 31, 2011		68,430,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Employee stock compensation	35,420	2	35,418
Employee stock compensation (in shares)		174,000
Proceeds from stock issuances under employee plans	41,696	17	41,679
Proceeds from stock issuances under employee plans (in shares)		1,692,000
Tax effect of exercise of stock options	29,892		29,892
Cash dividends declared ($1.92 per share, $1.68 per share and $1.48 per share in 2014, 2013, and 2012 respectively)	(101,534)			(101,534)
Repurchase and retirement of common shares	(127,525)	(17)	(3,992)	(123,516)
Repurchase and retirement of common shares (in shares)	(1,649,000)	(1,649,000)
Net income	312,310			312,310
Other comprehensive income	215				215
Ending Balance at Dec. 31, 2012	690,530	686	268,515	409,091	12,238
Ending Balance (in shares) at Dec. 31, 2012		68,647,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Employee stock compensation	57,893	3	57,890
Deferred compensation	(8,421)		(4,358)	(4,063)
Employee stock compensation (in shares)		264,000
Proceeds from stock issuances under employee plans	26,922	10	26,912
Proceeds from stock issuances under employee plans (in shares)		1,049,000
Tax effect of exercise of stock options	28,621		28,621
Cash dividends declared ($1.92 per share, $1.68 per share and $1.48 per share in 2014, 2013, and 2012 respectively)	(113,722)			(113,722)
Repurchase and retirement of common shares	(530,033)	(43)	(16,964)	(513,026)
Repurchase and retirement of common shares (in shares)	(4,337,000)	(4,337,000)
Net income	377,292			377,292
Other comprehensive income	6,523				6,523
Ending Balance at Dec. 31, 2013	535,605	656	360,616	155,572	18,761
Ending Balance (in shares) at Dec. 31, 2013		65,623,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Employee stock compensation	63,183	3	63,180
Deferred compensation	(5,107)		(3,020)	(2,087)
Employee stock compensation (in shares)		254,000
Proceeds from stock issuances under employee plans	31,313	10	31,303
Proceeds from stock issuances under employee plans (in shares)		984,000
Tax effect of exercise of stock options	36,966		36,966
Cash dividends declared ($1.92 per share, $1.68 per share and $1.48 per share in 2014, 2013, and 2012 respectively)	(126,908)			(126,908)
Repurchase and retirement of common shares	(81,812)	(6)	(3,040)	(78,766)
Repurchase and retirement of common shares (in shares)	(554,000)	(554,000)
Net income	454,029			454,029
Other comprehensive income	(46,002)				(46,002)
Ending Balance at Dec. 31, 2014	$ 861,267	$ 663	$ 486,005	$ 401,840	$ (27,241)
Ending Balance (in shares) at Dec. 31, 2014		66,307,000

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Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	160,000,000	160,000,000
Common stock, shares issued	66,307,000	65,623,000
Common stock, shares outstanding	66,307,000	65,623,000

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Financial Services Arrangements

12 Months Ended

Dec. 31, 2014

Disclosure Financial Services Arrangements [Abstract]

Financial Services Arrangements

Financial Services Arrangements

Polaris Acceptance, a joint venture between Polaris and GE Commercial Distribution Finance Corporation, an indirect subsidiary of General Electric Capital Corporation, which is supported by a partnership agreement between their respective wholly owned subsidiaries, finances substantially all of Polaris' United States sales whereby Polaris receives payment within a few days of shipment of the product. Polaris’ subsidiary has a 50 percent equity interest in Polaris Acceptance. Polaris Acceptance sells a majority of its receivable portfolio to a securitization facility (the "Securitization Facility") arranged by General Electric Capital Corporation. The sale of receivables from Polaris Acceptance to the Securitization Facility is accounted for in Polaris Acceptance’s financial statements as a “true-sale” under Accounting Standards Codification Topic 860. Polaris’ allocable share of the income of Polaris Acceptance has been included as a component of income from financial services in the accompanying consolidated statements of income. The partnership agreement is effective through February 2017.

Polaris’ total investment in Polaris Acceptance of $89,107,000 at December 31, 2014 is accounted for under the equity method, and is recorded in investment in finance affiliate in the accompanying consolidated balance sheets. At December 31, 2014, the outstanding amount of net receivables financed for dealers under this arrangement was $1,141,068,000, which included $337,088,000 in the Polaris Acceptance portfolio and $803,980,000 of receivables within the Securitization Facility ("Securitized Receivables").

Polaris has agreed to repurchase products repossessed by Polaris Acceptance up to an annual maximum of 15 percent of the aggregate average month-end outstanding Polaris Acceptance receivables and Securitized Receivables during the prior calendar year. For calendar year 2014, the potential 15 percent aggregate repurchase obligation was approximately $120,815,000. Polaris’ financial exposure under this arrangement is limited to the difference between the amounts unpaid by the dealer with respect to the repossessed product plus costs of repossession and the amount received on the resale of the repossessed product. No material losses have been incurred under this agreement during the periods presented.

Summarized financial information for Polaris Acceptance reflecting the effects of the Securitization Facility is presented as follows (in thousands):

	For the Years Ended December 31,
	2014		2013		2012
Revenues	$	40,968	$	13,010	$	8,811
Interest and operating expenses	3,678		3,044		1,013
Net income	$	37,290	$	9,966	$	7,798

	As of December 31,
	2014		2013
Finance receivables, net	$	337,088	$	226,742
Other assets	122		172
Total Assets	$	337,210	$	226,914
Notes payable	$	155,436	$	85,096
Other liabilities	3,560		3,384
Partners’ capital	178,214		138,434
Total Liabilities and Partners’ Capital	$	337,210	$	226,914

Polaris has agreements with Capital One, Sheffield, Synchrony Bank and FreedomRoad under which these financial institutions provide financing to end consumers of Polaris products. Polaris' income generated from these agreements has been included as a component of income from financial services in the accompanying consolidated statements of income.

Polaris also administers and provides extended service contracts to consumers and certain insurance contracts to dealers and consumers through various third-party suppliers. Polaris does not retain any warranty, insurance or financial risk under any of these arrangements. Polaris’ service fee income generated from these arrangements has been included as a component of income from financial services in the accompanying consolidated statements of income.

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Document and Entity Information (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Feb. 13, 2015	Jun. 30, 2014
Document and Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Trading Symbol	PII
Entity Registrant Name	POLARIS INDUSTRIES INC/MN
Entity Central Index Key	0000931015
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		66,317,127
Entity Public Float			$ 8,590,586

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Investment in Other Affiliates

12 Months Ended

Dec. 31, 2014

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Investment in Other Affiliates

Investment in Other Affiliates

The Company has certain investments in nonmarketable securities of strategic companies. As of December 31, 2014 and 2013, these investments are comprised of investments in Eicher-Polaris Private Limited (EPPL) and Brammo, Inc. ("Brammo"), and are recorded as components of other long-term assets in the accompanying consolidated balance sheets.

EPPL is a joint venture established in 2012 with Eicher Motors Limited ("Eicher"). Polaris and Eicher each control 50 percent of the joint venture, which is intended to design, develop and manufacture a full range of new vehicles for India and other emerging markets. The investment in EPPL is accounted for under the equity method, with Polaris’ proportionate share of income or loss recorded within the consolidated financial statements on a one month lag due to financial information not being available timely. The overall investment is expected to be approximately $50,000,000, shared equally with Eicher over a three year period. As of December 31, 2014 and 2013, the carrying value of the Company's investment in EPPL was $14,601,000 and $6,456,000, respectively. Through December 31, 2014, Polaris has invested $21,878,000 in the joint venture. Polaris' share of EPPL loss for the years ended December 31, 2014 and 2013 was $4,124,000 and $2,414,000, respectively, and is included in equity in loss of other affiliates on the consolidated statements of income.

Brammo is a privately held designer and developer of electric vehicles, which Polaris has invested in since 2011. The investment in Brammo is accounted for under the cost method. Brammo is in the early stages of designing, developing, and selling electric vehicle powertrains. As such, a risk exists that Brammo may not be able to secure sufficient financing to reach viability through cash flow from operations. In January 2015, Polaris acquired the electric motorcycle business from Brammo. Brammo will continue to be a designer and developer of electric vehicle powertrains.

Polaris will impair or write off an investment and recognize a loss if and when events or circumstances indicate there is impairment in the investment that is other-than-temporary. When necessary, Polaris evaluates investments in nonmarketable securities for impairment, utilizing level 3 fair value inputs. During 2014 and 2013, Polaris recorded an immaterial impairment expense within other expense (income), net in the consolidated statements of income, and reduced the Brammo investment.

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Consolidated Statements Of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Statement [Abstract]
Sales	$ 4,479,648	$ 3,777,068	$ 3,209,782
Cost of sales	3,160,470	2,656,189	2,284,485
Gross profit	1,319,178	1,120,879	925,297
Operating expenses:
Selling and marketing	314,449	270,266	210,367
Research and development	148,458	139,193	127,361
General and administrative	203,248	179,407	143,064
Total operating expenses	666,155	588,866	480,792
Income from financial services	61,667	45,901	33,920
Operating income	714,690	577,914	478,425
Non-operating expense (income):
Interest expense	11,239	6,210	5,932
Equity in loss of other affiliates	4,124	2,414	179
Other expense (income), net	10	(5,139)	(7,529)
Income before income taxes	699,317	574,429	479,843
Provision for income taxes	245,288	193,360	167,533
Net income from continuing operations	454,029	381,069	312,310
Loss from discontinued operations, net of tax	0	(3,777)	0
Net income	$ 454,029	$ 377,292	$ 312,310
Basic net income per share:
Continuing operations (in dollars per share)	$ 6.86	$ 5.56	$ 4.54
Loss from discontinued operations (in dollars per share)	$ 0.00	$ (0.05)	$ 0.00
Basic net income per share (in dollars per share)	$ 6.86	$ 5.51	$ 4.54
Diluted net income per share:
Continuing operations (in dollars per share)	$ 6.65	$ 5.40	$ 4.40
Loss from discontinued operations (in dollars per share)	$ 0.00	$ (0.05)	$ 0.00
Diluted net income per share (in dollars per share)	$ 6.65	$ 5.35	$ 4.40
Weighted average shares outstanding:
Basic (in shares)	66,175	68,535	68,849
Diluted (in shares)	68,229	70,546	71,005

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Employee Savings Plans

12 Months Ended

Dec. 31, 2014

Disclosure Employee Savings Plans [Abstract]

Employee Savings Plans

Employee Savings Plans

Employee Stock Ownership Plan (ESOP). Polaris sponsors a qualified non-leveraged ESOP under which a maximum of 7,200,000 shares of common stock can be awarded. The shares are allocated to eligible participants accounts based on total cash compensation earned during the calendar year. An employee's ESOP account vests equally after two and three years of service and requires no cash payments from the recipient. Participants may instruct Polaris to pay respective dividends directly to the participant in cash or reinvest the dividends into the participants ESOP accounts. Substantially all employees are eligible to participate in the ESOP, with the exception of Company officers. Total expense related to the ESOP was $10,789,000, $9,224,000, and $7,380,000, in 2014, 2013 and 2012, respectively. As of December 31, 2014 there were 3,925,000 shares held in the plan.

Defined contribution plans. Polaris sponsors various defined contribution retirement plans covering substantially all U.S. employees. For the 401(k) defined contribution retirement plan which covers the majority of U.S. employees, the Company matches 100 percent of employee contributions up to a maximum of five percent of eligible compensation. All contributions vest immediately. The cost of these defined contribution retirement plans was $12,486,000, $10,651,000, and $9,318,000, in 2014, 2013 and 2012, respectively.

Supplemental Executive Retirement Plan (SERP). Polaris sponsors a SERP that provides executive officers of the Company an alternative to defer portions of their salary, cash incentive compensation, and Polaris matching contributions. The deferrals and contributions are held in a rabbi trust and are in funds to match the liabilities of the plan. The assets are recorded as trading assets. The assets of the rabbi trust are included in other long-term assets on the consolidated balance sheets and the SERP liability is included in other long-term liabilities on the consolidated balance sheets. The asset and liability balance are both $41,797,000 and $24,711,000 at December 31, 2014, and 2013, respectively.

In November 2013, Polaris amended the SERP to allow executive officers of the Company the opportunity to defer certain restricted stock awards beginning with the annual performance-based award, which is scheduled to vest in February 2015 if certain performance metrics are achieved. After a holding period, the executive officer has the option to diversify the vested award into other funds available under the SERP. The deferrals will be held in a rabbi trust and will be invested in funds to match the liabilities of the SERP. The awards are redeemable in Polaris stock or in cash based upon the occurrence of events not solely within the control of Polaris; therefore, awards probable of vesting, for which the executive has not yet made an election to defer, or awards that have been deferred but have not yet vested and are probable of vesting or have been diversified into other funds are reported as deferred compensation in the temporary equity section of the consolidated balance sheets. The awards recorded in temporary equity are recognized at fair value as though the reporting date is also the redemption date, with any difference from stock-based compensation recorded in retained earnings. At December 31, 2014, 89,444 shares are recorded at a fair value of $13,528,000 in temporary equity, which includes $7,378,000 of compensation cost and $6,150,000 of cumulative fair value adjustment recorded through retained earnings.

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Share-Based Compensation

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Share-Based Compensation

Share-based plans. The Company grants long-term equity-based incentives and rewards for the benefit of its employees and directors under the shareholder approved Polaris Industries Inc. 2007 Omnibus Incentive Plan (as amended) (the “Omnibus Plan”), which were previously provided under several separate incentive and compensatory plans. Upon approval by the shareholders of the Omnibus Plan in April 2007, the Polaris Industries Inc. 1995 Stock Option Plan (“Option Plan”), the 1999 Broad Based Stock Option Plan, the Restricted Stock Plan and the 2003 Non-Employee Director Stock Option Plan (“Director Stock Option Plan” and collectively the “Prior Plans”) were frozen and no further grants or awards have since been or will be made under such plans. A maximum of 13,500,000 shares of common stock are available for issuance under the Omnibus Plan, together with additional shares canceled or forfeited under the Prior Plans.

Stock option awards granted to date under the Omnibus Plan generally vest two to four years from the award date and expire after ten years. In addition, since 2007, the Company has granted a total of 138,000 deferred stock units to its non-employee directors under the Omnibus Plan (9,000, 12,000 and 12,000 in 2014, 2013 and 2012, respectively) which will be converted into common stock when the director’s board service ends or upon a change in control. Restricted shares awarded under the Omnibus Plan to date generally contain restrictions, which lapse after a two to four year period if Polaris achieves certain performance measures.

The Option Plan, which is frozen, was used to issue incentive and nonqualified stock options to certain employees. Options granted to date generally vest three years from the award date and expire after ten years. The Director Stock Option Plan, which is frozen and contains no unexercised awards as of December 31, 2014, was used to issue nonqualified stock options to non-employee directors.

Under the Polaris Industries Inc. Deferred Compensation Plan for Directors (“Director Plan”), members of the Board of Directors who are not Polaris officers or employees may annually elect to receive common stock equivalents in lieu of director fees, which will be converted into common stock when board service ends. A maximum of 500,000 shares of common stock has been authorized under this plan of which 101,000 equivalents have been earned and an additional 381,000 shares have been issued to retired directors as of December 31, 2014. As of December 31, 2014 and 2013, Polaris’ liability under the plan totaled $15,217,000 and $17,031,000, respectively.

Polaris maintains a long term incentive program under which awards are issued to provide incentives for certain employees to attain and maintain the highest standards of performance and to attract and retain employees of outstanding competence and ability with no cash payments required from the recipient. Awards granted through 2011 were paid in cash and were based on certain Company performance measures that are measured over a period of three consecutive calendar years. At the beginning of the plan cycle, participants had the option to receive a cash value at the time of awards or a cash value tied to Polaris stock price movement over the three year plan cycle. At December 31, 2013, Polaris’ liability under the plan totaled $57,166,000, and the final cash payout was made in 2014. Beginning in 2012, long term incentive program awards are granted in restricted stock units and therefore treated as equity awards. All remaining conditions of the long term incentive program remained the same as prior to 2012.

Share-based compensation expense. The amount of compensation cost for share-based awards to be recognized during a period is based on the portion of the awards that are ultimately expected to vest. The Company estimates stock option forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company analyzes historical data to estimate pre-vesting forfeitures and records share compensation expense for those awards expected to vest.

Total share-based compensation expenses were as follows (in thousands):

	For the Years Ended December 31,
	2014		2013		2012
Option plan	$	24,428	$	22,245	$	16,497
Other share-based awards	26,574		57,640		56,770
Total share-based compensation before tax	51,002		79,885		73,267
Tax benefit	19,039		29,835		27,401
Total share-based compensation expense included in net income	$	31,963	$	50,050	$	45,866

These share-based compensation expenses are reflected in cost of sales and operating expenses in the accompanying consolidated statements of income. For purposes of determining the estimated fair value of option awards on the date of grant under ASC Topic 718, Polaris has used the Black-Scholes option-pricing model. Assumptions utilized in the model are evaluated and revised, as necessary, to reflect market conditions and experience.

At December 31, 2014, there was $82,778,000 of total unrecognized share-based compensation expense related to unvested share-based equity awards. Unrecognized share-based compensation expense is expected to be recognized over a weighted-average period of 1.50 years. Included in unrecognized share-based compensation is approximately $36,746,000 related to stock options and $46,032,000 for restricted stock.

General stock option and restricted stock information. The following summarizes stock option activity and the weighted average exercise price for the following plans for the each of the three years ended December 31, 2014, 2013 and 2012:

	Omnibus Plan (Active)				Option Plan (Frozen)				Director Stock Option Plan (Frozen)
	Outstanding Shares		Weighted Average Exercise Price		Outstanding Shares		Weighted Average Exercise Price		Outstanding Shares		Weighted Average Exercise Price
Balance as of December 31, 2011	4,682,737		$	29.45	1,098,546		$	25.08	80,000		$	23.52
Granted	570,700		66.19		—		—		—		—
Exercised	(861,397	)	22.54		(744,974	)	25.84		(64,000	)	22.62
Forfeited	(61,630	)	40.95		—		—		—		—
Balance as of December 31, 2012	4,330,410		$	35.50	353,572		$	23.47	16,000		$	27.10
Granted	1,037,729		87.06		—		—		—		—
Exercised	(821,679	)	24.45		(191,141	)	23.23		(16,000	)	27.10
Forfeited	(80,380	)	47.55		—		—		—		—
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	—		—
Vested or expected to vest as of December 31, 2014	4,206,512		$	66.38	63,233		$	23.76	—		—
Options exercisable as of December 31, 2014	1,640,169		$	32.52	63,233		$	23.76	—		—

The weighted average remaining contractual life of options outstanding and of options outstanding and exercisable as of December 31, 2014 was 6.83 years and 5.17 years, respectively.

The following assumptions were used to estimate the weighted average fair value of options of $39.97, $30.43, and $23.40 granted during the years ended December 31, 2014, 2013, and 2012, respectively:

	For the Years Ended December 31,
	2014		2013		2012
Weighted-average volatility	40	%	49	%	50	%
Expected dividend yield	1.5	%	1.9	%	2.2	%
Expected term (in years)	4.5		4.4		4.6
Weighted average risk free interest rate	1.6	%	0.9	%	0.7	%

The total intrinsic value of options exercised during the year ended December 31, 2014 was $108,584,000. The total intrinsic value of options outstanding and of options outstanding and exercisable at December 31, 2014, was $365,160,000 and $202,788,000, respectively. The total intrinsic values are based on the Company’s closing stock price on the last trading day of the applicable year for in-the-money options.

The following table summarizes restricted stock activity for the year ended December 31, 2014:

	Shares Outstanding		Weighted Average Grant Price
Balance as of December 31, 2013	770,967		$	74.47
Granted	407,626		134.34
Vested	(65,020	)	50.29
Canceled/Forfeited	(35,842	)	87.12
Balance as of December 31, 2014	1,077,731		$	98.15
Expected to vest as of December 31, 2014	895,243		$	94.80

The total intrinsic value of restricted stock expected to vest as of December 31, 2014 was $135,396,000. The total intrinsic value is based on the Company’s closing stock price on the last trading day of the year. The weighted average fair values at the grant dates of grants awarded under the Omnibus Plan for the years ended December 31, 2014, 2013, and 2012 were $134.34, $88.84, and $70.12, respectively.

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Quarterly Financial Data

12 Months Ended

Dec. 31, 2014

Quarterly Financial Data [Abstract]

Quarterly Financial Data

Quarterly Financial Data (unaudited)

	Sales		Gross profit		Net income from continuing operations		Net income		Diluted net income per share from continuing operations		Diluted net income per share
	(In thousands, except per share data)
2014
First Quarter	$	888,346	$	258,417	$	80,901	$	80,901	$	1.19	$	1.19
Second Quarter	1,013,959		304,914		96,905		96,905		1.42		1.42
Third Quarter	1,302,343		388,274		140,826		140,826		2.06		2.06
Fourth Quarter	1,275,000		367,573		135,397		135,397		1.98		1.98
Totals	$	4,479,648	$	1,319,178	$	454,029	$	454,029	$	6.65	$	6.65
2013
First Quarter	$	745,909	$	216,648	$	75,464	$	75,464	$	1.07	$	1.07
Second Quarter	844,800		252,338		80,004		80,004		1.13		1.13
Third Quarter	1,102,649		334,785		116,921		113,144		1.64		1.59
Fourth Quarter	1,083,710		317,108		108,680		108,680		1.56		1.56
Totals	$	3,777,068	$	1,120,879	$	381,069	$	377,292	$	5.40	$	5.35

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Product liability. Polaris is subject to product liability claims in the normal course of business. In 2012, Polaris purchased excess insurance coverage for catastrophic product liability claims for incidents occurring after the policy date. Polaris self-insures product liability claims before the policy date and up to the purchased catastrophic insurance coverage after the policy date. The estimated costs resulting from any losses are charged to operating expenses when it is probable a loss has been incurred and the amount of the loss is reasonably determinable. The Company utilizes historical trends and actuarial analysis tools, along with an analysis of current claims, to assist in determining the appropriate loss reserve levels. At December 31, 2014, the Company had an accrual of $17,327,000 for the probable payment of pending claims related to continuing operations product liability litigation associated with Polaris products. This accrual is included as a component of other accrued expenses in the accompanying consolidated balance sheets.

As previously disclosed, the Company was party to a lawsuit in which the plaintiff was seriously injured in a 2008 accident involving a collision between a 2001 Polaris Virage personal watercraft and a boat. On July 23, 2013, a Los Angeles County jury returned an unfavorable verdict against the Company. The jury returned a verdict finding that the accident was caused by multiple actions, the majority of which was attributed to the negligence of the other boat driver, with the balance attributed to the reckless behavior of the driver of the Virage and the design of the Virage. The jury awarded approximately $21,000,000 in damages, of which Polaris' liability was $10,000,000. In the third quarter of 2013, the Company reported a loss from discontinued operations, net of tax, of $3,777,000 for an additional provision to accrue Polaris' portion of the jury award and legal fees. The amount was fully paid in 2013. In September 2004, the Company announced its decision to cease manufacturing marine products. Since then, any material financial results of that division have been recorded in discontinued operations.

Litigation. Polaris is a defendant in lawsuits and subject to other claims arising in the normal course of business. In the opinion of management, it is unlikely that any legal proceedings pending against or involving Polaris will have a material adverse effect on Polaris' financial position or results of operations.

Contingent purchase price. As a component of certain past acquisition agreements, Polaris has committed to make additional payments to certain sellers contingent upon either the passage of time or certain financial performance criteria. Polaris initially records the fair value of each commitment as of the respective opening balance sheet, and each reporting period the fair value is evaluated, using level 3 inputs, with the change in value reflected in the consolidated statements of income. As of December 31, 2014 and 2013 the fair value of contingent purchase price commitments was $27,908,000 and $18,249,000, respectively, recorded in other long-term liabilities in the consolidated balance sheets.

Leases. Polaris leases buildings and equipment under non-cancelable operating leases. Total rent expense under all operating lease agreements was $13,734,000, $10,656,000, and $10,349,000 for 2014, 2013 and 2012, respectively.

A property lease agreement signed in 2013 for a manufacturing facility which Polaris began occupying in Opole, Poland commenced in February 2014. The Poland property lease is accounted for as a capital lease.

Future minimum annual lease payments under capital and operating leases with noncancelable terms in excess of one year as of December 31, 2014, are as follows (in thousands):

	Capital Leases		Operating Leases
2015	$	3,915	$	9,576
2016	3,281		5,098
2017	2,903		3,326
2018	2,403		1,945
2019	2,203		1,173
Thereafter	23,639		1,403
Total future minimum lease obligation	$	38,344	$	22,521

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Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Polaris’ income from continuing operations before income taxes was generated from its United States and foreign operations as follows (in thousands):

	For the Years Ended December 31,
	2014		2013		2012
United States	$	666,323	$	535,265	$	458,635
Foreign	32,994		39,164		21,208
Income from continuing operations before income taxes	$	699,317	$	574,429	$	479,843

Components of Polaris’ provision for income taxes for continuing operations are as follows (in thousands):

	For the Years Ended December 31,
	2014			2013			2012
Current:
Federal	$	255,299		$	167,690		$	169,833
State	20,438			12,942			15,366
Foreign	21,584			15,457			8,593
Deferred	(52,033		)	(2,729		)	(26,259		)
Total provision for income taxes for continuing operations	$	245,288		$	193,360		$	167,533

Reconciliation of the Federal statutory income tax rate to the effective tax rate is as follows:

	For the Years Ended December 31,
	2014		2013		2012
Federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	1.5		1.5		1.8
Domestic manufacturing deduction	(1.1	)	(1.0	)	(1.5	)
Research and development tax credit	(1.1	)	(2.2	)	—
Valuation allowance for foreign subsidiaries net operating losses	—		0.3		—
Other permanent differences	0.8		0.1		(0.4	)
Effective income tax rate for continuing operations	35.1	%	33.7	%	34.9	%

In December 2014, the President of the United States signed the Tax Increase Prevention Act, which retroactively reinstated the research and development tax credit for 2014. In January 2013, the President of the United States signed the American Taxpayers Relief Act of 2012, which reinstated the research and development tax credit. As a result, the impact of both the 2012 and 2013 research and development tax credits were recorded in the 2013 tax provision.

Undistributed earnings relating to certain non-U.S. subsidiaries of approximately $105,782,000 and $75,487,000 at December 31, 2014 and 2013, respectively, are considered to be permanently reinvested; accordingly, no provision for U.S. federal income taxes has been provided thereon. If the Company were to distribute these earnings, it would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits reflecting the amounts paid to non-U.S. taxing authorities) and withholding taxes payable to the non-U.S. countries. Determination of the unrecognized deferred U.S. income tax liability related to these undistributed earnings is not practicable due to the complexities associated with this hypothetical calculation.

Polaris utilizes the liability method of accounting for income taxes whereby deferred taxes are determined based on the estimated future tax effects of differences between the financial statement and tax bases of assets and liabilities given the provisions of enacted tax laws. The net deferred income taxes consist of the following (in thousands):

	December 31,
	2014			2013
Current deferred income taxes:
Inventories	$	9,034		$	6,306
Accrued expenses	104,279			87,157
Derivative instruments	864			(107		)
Total current	114,177			93,356
Noncurrent deferred income taxes:
Cost in excess of net assets of business acquired	(13,111		)	(13,594		)
Property and equipment	(28,921		)	(36,069		)
Compensation payable in common stock	58,446			42,528
Net operating loss carryforwards and impairments	12,693			5,782
Valuation allowance	(6,097		)	(5,059		)
Total noncurrent	23,010			(6,412		)
Total net deferred income tax asset	$	137,187		$	86,944

At December 31, 2014, the Company had available unused international and acquired federal net operating loss carryforwards of $32,640,000. The net operating loss carryforwards will expire at various dates from 2015 to 2033, with certain jurisdictions having indefinite carryforward terms.

Polaris classified liabilities related to unrecognized tax benefits as long-term income taxes payable in the accompanying consolidated balance sheets in accordance with ASC Topic 740. Polaris recognizes potential interest and penalties related to income tax positions as a component of the provision for income taxes on the consolidated statements of income. Reserves related to potential interest are recorded as a component of long-term income taxes payable. The entire balance of unrecognized tax benefits at December 31, 2014, if recognized, would affect the Company’s effective tax rate. The Company does not anticipate that total unrecognized tax benefits will materially change in the next twelve months. Tax years 2010 through 2014 remain open to examination by certain tax jurisdictions to which the Company is subject. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):

	For the Years Ended December 31,
	2014			2013
Balance at January 1,	$	13,199		$	6,704
Increases due to acquisition opening balance sheet positions	—			6,420
Gross increases for tax positions of prior years	55			561
Gross increases for tax positions of current year	1,456			3,755
Decreases due to settlements and other prior year tax positions	(2,346		)	(3,310		)
Decreases for lapse of statute of limitations	(1,586		)	(1,344		)
Currency translation effect on foreign balances	(942		)	413
Balance at December 31,	9,836			13,199
Reserves related to potential interest at December 31,	732			1,093
Unrecognized tax benefits at December 31,	$	10,568		$	14,292

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Shareholders' Equity Cash Dividends Declared Per Common Share (Details) (USD $)	3 Months Ended		12 Months Ended
	Dec. 31, 2014	Dec. 31, 2012	Dec. 31, 2014	Dec. 31, 2013
Disclosure Shareholders Equity [Abstract]
Quarterly dividend declared and paid per common share	$ 0.48	$ 0.42	$ 1.92	$ 1.68

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Financing Agreement

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Financing Agreement

Financing Agreement

Debt and capital lease obligations and the average related interest rates were as follows (in thousands):

	Average interest rate at December 31, 2014	Maturity	December 31, 2014		December 31, 2013
Revolving loan facility	—	January 2018	—		$	80,500
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	5.02%	Various through 2029	26,148		7,123
Total debt and capital lease obligations			$	226,148	$	287,623
Less: current maturities			2,528		3,281
Total long-term debt and capital lease obligations			$	223,620	$	284,342

Bank financing. In August 2011, Polaris entered into a $350,000,000 unsecured revolving loan facility. In January 2013, Polaris amended the loan facility to provide more beneficial covenant and interest rate terms and extend the expiration date from August 2016 to January 2018. Interest is charged at rates based on LIBOR or “prime.”

In December 2010, the Company entered into a Master Note Purchase Agreement to issue $25,000,000 of unsecured senior notes due May 2018 and $75,000,000 of unsecured senior notes due May 2021 (collectively, the “Senior Notes”). The Senior Notes were issued in May 2011. In December 2013, the Company entered into a First Supplement to Master Note Purchase Agreement, under which the Company issued $100,000,000 of unsecured senior notes due December 2020.

The unsecured revolving loan facility and the amended Master Note Purchase Agreement contain covenants that require Polaris to maintain certain financial ratios, including minimum interest coverage and maximum leverage ratios. Polaris was in compliance with all such covenants as of December 31, 2014.

The following summarizes activity under Polaris’ credit arrangements (dollars in thousands):

	2014			2013			2012
Total borrowings at December 31	$	200,000		$	280,500		$	100,000
Average outstanding borrowings during year	$	361,715		$	138,400		$	100,000
Maximum outstanding borrowings during year	$	500,000		$	411,000		$	100,000
Interest rate at December 31	3.77		%	2.98		%	4.40		%

The carrying amount of the Company’s long-term debt approximates its fair value as December 31, 2014 and 2013.

Letters of credit. At December 31, 2014, Polaris had open letters of credit totaling $24,894,000. The amounts are primarily related to inventory purchases and are reduced as the purchases are received.

Dealer financing programs. Certain finance companies, including Polaris Acceptance, an affiliate (see Note 8), provide floor plan financing to dealers on the purchase of Polaris products. The amount financed by worldwide dealers under these arrangements at December 31, 2014, was approximately $1,337,214,000. Polaris has agreed to repurchase products repossessed by the finance companies up to an annual maximum of no more than 15 percent of the average month-end balances outstanding during the prior calendar year. Polaris’ financial exposure under these arrangements is limited to the difference between the amount paid to the finance companies for repurchases and the amount received on the resale of the repossessed product. No material losses have been incurred under these agreements during the periods presented. As a part of its marketing program, Polaris contributes to the cost of dealer financing up to certain limits and subject to certain conditions. Such expenditures are included as an offset to sales in the accompanying consolidated statements of income.

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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

ASC Topic 350 prohibits the amortization of goodwill and intangible assets with indefinite useful lives. Topic 350 requires that these assets be reviewed for impairment at least annually. An impairment charge for goodwill is recognized only when the estimated fair value of a reporting unit, including goodwill, is less than its carrying amount. The Company performed the annual impairment test as of December 31, 2014 and 2013. The results of the impairment test indicated that no goodwill or intangible impairment existed as of the test date. The Company has had no historical impairments of goodwill. In accordance with Topic 350, the Company will continue to complete an impairment analysis on an annual basis or more frequently if an event or circumstance that would more likely than not reduce the fair value of a reporting unit below its carrying amount occurs. Goodwill and other intangible assets, net, consist of $123,031,000 and $126,697,000 of goodwill and $100,935,000 and $103,011,000 of intangible assets, net of accumulated amortization, for the periods ended December 31, 2014 and 2013, respectively.

Additions to goodwill and other intangible assets in 2014 relate primarily to the acquisition of Kolpin Outdoors, Inc. ("Kolpin") in April 2014, and the acquisition of certain assets of LSI Products Inc. and Armor Holdings, LLC. (collectively, "Pro Armor") in November 2014. Kolpin is a leading aftermarket brand delivering purpose-built and universal-fit ORV accessories and lifestyle products. Pro Armor is an industry-leading brand in performance side-by-side accessories.

For both acquisitions, the respective aggregate purchase price was allocated on a preliminary basis to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Kolpin and Pro Armor's financial results are included in the Company’s consolidated results from the respective dates of acquisition. Pro forma financial results are not presented as the acquisitions are not material to the consolidated financial statements. As of December 31, 2014, the purchase price allocation for Pro Armor remains preliminary.

The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 are as follows (in thousands):

	2014			2013
Balance as of beginning of year	$	126,697		$	56,324
Goodwill acquired during the period	7,456			66,085
Currency translation effect on foreign goodwill balances	(11,122		)	4,288
Balance as of end of year	$	123,031		$	126,697

For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2014 and 2013 are as follows (in thousands):

	2014						2013
	Gross Amount			Accumulated Amortization			Gross Amount		Accumulated Amortization
Other intangible assets, beginning	$	116,279		$	(13,268	)	$	54,907	$	(4,015	)
Intangible assets acquired during the period	16,050			—			57,388		—
Amortization expense	—			(11,599		)	—		(9,178		)
Currency translation effect on foreign balances	(8,236		)	1,709			3,984		(75		)
Other intangible assets, ending	$	124,093		$	(23,158	)	$	116,279	$	(13,268	)

The components of other intangible assets were as follows (in thousands):

December 31, 2014	Estimated Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net
Non-compete agreements	5	$	540	$	(293	)	$	247
Dealer/customer related	7	62,758		(16,361		)	46,397
Developed technology	5-7	14,571		(6,504		)	8,067
Total amortizable		77,869		(23,158		)	54,711
Non-amortizable—brand/trade names		46,224		—			46,224
Total other intangible assets, net		$	124,093	$	(23,158	)	$	100,935
December 31, 2013	Estimated Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net
Non-compete agreements	5	$	540	$	(185	)	$	355
Dealer/customer related	7	59,244		(8,608		)	50,636
Developed technology	5-7	15,307		(4,475		)	10,832
Total amortizable		75,091		(13,268		)	61,823
Non-amortizable—brand/trade names		41,188		—			41,188
Total other intangible assets, net		$	116,279	$	(13,268	)	$	103,011

Amortization expense for intangible assets for the year ended December 31, 2014 and 2013 was $11,599,000 and $9,178,000. Estimated amortization expense for 2015 through 2019 is as follows: 2015, $11,300,000; 2016, $11,300,000; 2017, $11,000,000; 2018, $9,500,000; 2019, $8,200,000; and after 2019, $3,400,000. The preceding expected amortization expense is an estimate and actual amounts could differ due to additional intangible asset acquisitions, changes in foreign currency rates or impairment of intangible assets.

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Shareholders' Equity

12 Months Ended

Dec. 31, 2014

Disclosure Shareholders Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

Stock repurchase program. The Polaris Board of Directors has authorized the cumulative repurchase of up to 75,000,000 shares of the Company’s common stock. In addition, in 2013 the Polaris Board of Directors authorized the one-time repurchase of all the shares of Polaris stock owned by Fuji Heavy Industries Ltd. ("Fuji"). On November 12, 2013, Polaris entered into and executed a Share Repurchase Agreement with Fuji under which Polaris purchased 3,960,000 shares of Polaris stock held by Fuji for an aggregate purchase price of $497,474,000.

As of December 31, 2014, 1,050,000 shares remain available for repurchases under the Board’s authorization. During 2014, Polaris paid $81,812,000 to repurchase and retire approximately 554,000 shares. During 2013, Polaris paid $530,033,000 to repurchase and retire approximately 4,337,000 shares, and in 2012 Polaris paid $127,525,000 to repurchase and retire approximately 1,649,000 shares.

Shareholder rights plan. During 2000, the Polaris Board of Directors adopted a shareholder rights plan. Under the plan, a dividend of preferred stock purchase rights will become exercisable if a person or group should acquire 15 percent or more of the Company’s stock. The dividend will consist of one purchase right for each outstanding share of the Company’s common stock held by shareholders of record on June 1, 2000. The shareholder rights plan was amended and restated in April 2010. The amended and restated rights agreement extended the final expiration date of the rights from May 2010 to April 2020, expanded the definition of “Beneficial Owner” to include certain derivative securities relating to the common stock of the Company and increased the purchase price for the rights from $75 to $125 per share. The Board of Directors may redeem the rights earlier for $0.01 per right.

Stock purchase plan. Polaris maintains an employee stock purchase plan (“Purchase Plan”). A total of 3,000,000 shares of common stock are reserved for this plan. The Purchase Plan permits eligible employees to purchase common stock monthly at 95 percent of the average of the beginning and end of month stock prices. As of December 31, 2014, approximately 1,261,000 shares had been purchased under the Purchase Plan.

Dividends. Quarterly and total year cash dividends declared per common share for the year ended December 31, 2014 and 2013 were as follows:

	For the Years Ended December 31,
	2014		2013
Quarterly dividend declared and paid per common share	$	0.48	$	0.42
Total dividends declared and paid per common share	$	1.92	$	1.68

On January 29, 2015, the Polaris Board of Directors declared a regular cash dividend of $0.53 per share payable on March 16, 2015 to holders of record of such shares at the close of business on March 2, 2015.

Net income per share. Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period, including shares earned under The Deferred Compensation Plan for Directors (“Director Plan”), the ESOP and deferred stock units under the 2007 Omnibus Incentive Plan (“Omnibus Plan”). Diluted earnings per share is computed under the treasury stock method and is calculated to compute the dilutive effect of outstanding stock options issued under the 1995 Stock Option Plan and the 2003 Non-Employee Director Stock Option Plan (collectively, the “Option Plans”) and certain shares issued under the Omnibus Plan. A reconciliation of these amounts is as follows (in thousands):

	For the Years Ended December 31,
	2014	2013	2012
Weighted average number of common shares outstanding	65,904	68,209	68,409
Director Plan and deferred stock units	196	242	341
ESOP	75	84	99
Common shares outstanding—basic	66,175	68,535	68,849
Dilutive effect of restricted stock awards	359	228	181
Dilutive effect of stock option awards	1,695	1,783	1,975
Common and potential common shares outstanding—diluted	68,229	70,546	71,005

During the 2014, 2013 and 2012 the number of options that could potentially dilute earnings per share on a fully diluted basis that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive were 581,000, 23,000 and 872,000, respectively.

Accumulated other comprehensive income (loss). Changes in the accumulated other comprehensive income (loss) balance is as follows (in thousands):

	Foreign Currency Items			Cash Flow Hedging Derivatives			Accumulated Other Comprehensive Income (loss)
Balance as of December 31, 2013	$	18,582		$	179		$	18,761
Reclassification to the income statement	—			(5,469		)	(5,469		)
Change in fair value	(44,371		)	3,838			(40,533		)
Balance as of December 31, 2014	$	(25,789	)	$	(1,452	)	$	(27,241	)

The table below provides data about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive income (loss) into the income statement for cash flow derivatives designated as hedging instruments for the year ended December 31, 2014 and 2013 (in thousands):

Derivatives in Cash Flow Hedging Relationships	Location of Gain (Loss) Reclassified from Accumulated OCI into Income	For the Years Ended December 31,
		2014			2013
Foreign currency contracts	Other (income), net	$	(5,641	)	$	(1,671	)
Foreign currency contracts	Cost of sales	172			977
Total		$	(5,469	)	$	(694	)

The net amount of the existing gains or losses at December 31, 2014 that is expected to be reclassified into the income statement within the next 12 months is expected to not be material. See Note 11 for further information regarding Polaris' derivative activities.

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Shareholders' Equity Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended				1 Months Ended	0 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2000	Apr. 30, 2010	Jan. 29, 2015
Stockholders Equity Note [Line Items]
Cash dividends declared, per share	$ 1.92	$ 1.68	$ 1.48
Repurchase and retirement of common stock, shares	554,000	4,337,000	1,649,000
Repurchase and retirement of common stock	$ 81,812	$ 530,033	$ 127,525
Remaining authorized repurchase amount	1,050,000
Employee Stock Purchase Plan Number Of Shares Available For Issuance	3,000,000
Share Based Compensation Arrangements By Share Based Payment Award Percentage Of Market Price At Eligible Employees Granted Options To Purchase Shares	95.00%
Stock Issued During Period, Shares, Employee Stock Purchase Plans	1,261,000
Common stock excluded from calculation of diluted earnings per share	581,000	23,000	872,000
Maximum
Stockholders Equity Note [Line Items]
Number of shares authorized to be repurchased	75,000,000
Stockholder Rights Plan [Member]
Stockholders Equity Note [Line Items]
Minimum Percentage Of Ownership Acquired Or To Be Acquired Upon Which Purchase Rights Become Exercisable				15.00%
Common Stock Dividends Right Per Share Declared				1
Dividends Payable, Date of Record				Jun. 01, 2000
Incentive Stock Purchase Rights Redemption Price Per Right					$ 0.01
Stockholder Rights Plan [Member] | Maximum
Stockholders Equity Note [Line Items]
Common Stock Price Per Share Under Rights Plan					$ 125
Stockholder Rights Plan [Member] | Minimum
Stockholders Equity Note [Line Items]
Common Stock Price Per Share Under Rights Plan					$ 75
Fuji Heavy Industries Ltd. [Member]
Stockholders Equity Note [Line Items]
Repurchase and retirement of common stock, shares	3,960,000
Repurchase and retirement of common stock	$ 497,474
Subsequent Event
Stockholders Equity Note [Line Items]
Cash dividends declared, per share						$ 0.53
Remaining authorized repurchase amount						1,100,000

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Income from Financial Services (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Income from financial services	$ 61,667	$ 45,901	$ 33,920

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Shareholders' Equity Gains and Losses, Net of Tax Reclassified from Accumulated Other Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Location of Gain (Loss) Reclassified from Accumulated OCI into Income	$ (5,469)	$ (694)
Foreign currency contracts | Other (income), net
Derivative Instruments, Gain (Loss) [Line Items]
Location of Gain (Loss) Reclassified from Accumulated OCI into Income	(5,641)	(1,671)
Foreign currency contracts | Cost of sales
Derivative Instruments, Gain (Loss) [Line Items]
Location of Gain (Loss) Reclassified from Accumulated OCI into Income	$ 172	$ 977

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Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of open foreign currency contracts

At December 31, 2014, Polaris had the following open foreign currency contracts (in thousands):

Foreign Currency	Notional Amounts (in U.S. dollars)		Net Unrealized Gain (Loss)
Australian Dollar	$	3,491	$	391
Canadian Dollar	40,550		38
Japanese Yen	22,201		(1,008		)
Mexican Peso	34,060		(1,991		)
Total	$	100,302	$	(2,570	)

Schedule of carrying values of derivative instruments

The table below summarizes the carrying values of derivative instruments as of December 31, 2014 and 2013 (in thousands):

	Carrying Values of Derivative Instruments as of December 31, 2014
	Fair Value— Assets		Fair Value— (Liabilities)			Derivative Net Carrying Value
Derivatives designated as hedging instruments
Foreign exchange contracts(1)	$	534	$	(3,104	)	$	(2,570	)
Total derivatives designated as hedging instruments	$	534	$	(3,104	)	$	(2,570	)
Commodity contracts(1)	$	—	$	(4,609	)	$	(4,609	)
Total derivatives not designated as hedging instruments	$	—	$	(4,609	)	$	(4,609	)
Total derivatives	$	534	$	(7,713	)	$	(7,179	)

	Carrying Values of Derivative Instruments as of December 31, 2013
	Fair Value— Assets		Fair Value— (Liabilities)			Derivative Net Carrying Value
Derivatives designated as hedging instruments
Foreign exchange contracts(1)	$	1,194	$	(1,203	)	$	(9	)
Total derivatives designated as hedging instruments	$	1,194	$	(1,203	)	$	(9	)
Commodity contracts(1)	$	46	$	(16	)	$	30
Total derivatives not designated as hedging instruments	$	46	$	(16	)	$	30
Total derivatives	$	1,240	$	(1,219	)	$	21

(1) Assets are included in prepaid expenses and other and liabilities are included in other accrued expenses on the accompanying consolidated balance sheets.

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 the effective portion of derivative instruments designated as cash flow hedges included in accumulated other comprehensive income (loss) for the years ended December 31, 2014 and 2013 (in thousands):

Derivatives in Cash Flow Hedging Relationships	For the Years Ended December 31,
	2014			2013
Interest rate contracts	—			$	(26	)
Foreign currency contracts	$	(1,631	)	1,636
Total	$	(1,631	)	$	1,610

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Goodwill and Other Intangible Assets Other Intangible Assets, Changes in Net Carrying Amount (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Other Intangible Assets, Gross Amount [Roll Forward]
Other intangible assets, beginning	$ 116,279	$ 54,907
Intangible assets acquired during the period	16,050	57,388
Currency translation effect on foreign balances	(8,236)	3,984
Other intangible assets, ending	124,093	116,279
Other Intangible Assets, Accumulated Amortization [Roll Forward]
Other intangible assets, beginning	(13,268)	(4,015)
Amortization expense	(11,599)	(9,178)
Currency translation effect on foreign balances	1,709	(75)
Other intangible assets, ending	$ (23,158)	$ (13,268)

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Segment Reporting

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Polaris has reviewed ASC Topic 280 and determined that the Company meets the aggregation criteria outlined since the Company’s segments have similar (1) economic characteristics, (2) product and services, (3) production processes, (4) customers, (5) distribution channels, and (6) regulatory environments. Therefore, the Company reports as a single reportable business segment.

Sales to external customers based on the location of the customer and property and equipment, net, by geography are presented in the tables below (in thousands):

	For the Years Ended December 31,
	2014		2013		2012
United States	$	3,339,905	$	2,721,300	$	2,310,943
Canada	454,608		463,316		438,208
Other foreign countries	685,135		592,452		460,631
Consolidated sales	$	4,479,648	$	3,777,068	$	3,209,782

	As of December 31,
	2014		2013
United States	$	432,614	$	349,224
Mexico	49,064		52,450
Other foreign countries	73,750		53,493
Consolidated property and equipment, net	$	555,428	$	455,167

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Organization and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

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):

	Fair Value Measurements as of December 31, 2014
Asset (Liability)	Total			Level 1			Level 2			Level 3
Non-qualified deferred compensation assets	$	41,797		$	41,797		—			—
Total assets at fair value	$	41,797		$	41,797		—			—
Commodity contracts, net	$	(4,609	)	—			$	(4,609	)
Foreign exchange contracts, net	(2,570		)	—			(2,570		)	—
Non-qualified deferred compensation liabilities	(41,797		)	$	(41,797	)	—			—
Total liabilities at fair value	$	(48,976	)	$	(41,797	)	$	(7,179	)	—
	Fair Value Measurements as of December 31, 2013
Asset (Liability)	Total			Level 1			Level 2			Level 3
Commodity contracts, net	$	30		—			$	30		—
Non-qualified deferred compensation assets	24,711			$	24,711		—			—
Total assets at fair value	$	24,741		$	24,711		$	30		—
Foreign exchange contracts, net	$	(9	)	—			$	(9	)	—
Non-qualified deferred compensation liabilities	(24,711		)	$	(24,711	)	—			—
Total liabilities at fair value	$	(24,720	)	$	(24,711	)	$	(9	)	—

Schedule of major components of 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):

	December 31, 2014			December 31, 2013
Raw materials and purchased components	$	165,823		$	107,496
Service parts, garments and accessories	163,455			125,765
Finished goods	262,578			206,290
Less: reserves	(26,171		)	(21,603		)
Inventories	$	565,685		$	417,948

Schedule of activity in the warranty reserve

The activity in the warranty reserve during the periods presented was as follows (in thousands):

	For the Years Ended December 31,
	2014			2013			2012
Balance at beginning of year	$	52,818		$	47,723		$	44,355
Additions to warranty reserve through acquisitions	160			1,602			900
Additions charged to expense	61,888			56,857			46,088
Warranty claims paid	(61,762		)	(53,364		)	(43,620		)
Balance at end of year	$	53,104		$	52,818		$	47,723

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Financing - Additional Information (Detail) (USD $)	1 Months Ended
	Dec. 31, 2010	Dec. 31, 2013	Dec. 31, 2014	Aug. 31, 2011
Line of Credit Facility [Line Items]
Revolving loan facility, maximum capacity				$ 350,000,000
Letter of credit outstanding			24,894,000
Debt outstanding from dealers			1,337,214,000
Maximum
Line of Credit Facility [Line Items]
Aggregate repurchase obligation			15.00%
Master Notes | Senior Unsecured Notes, 3.81 Percent, Due May 2018
Line of Credit Facility [Line Items]
Issuance of senior notes	25,000,000
Maturity date	5/31/2018
Master Notes | Senior Unsecured Notes, 4.60 Percent, Due May 2021
Line of Credit Facility [Line Items]
Issuance of senior notes	75,000,000
Maturity date	5/31/2021
Master Notes | Senior Unsecured Notes 3.13 Percent Due December 2020
Line of Credit Facility [Line Items]
Issuance of senior notes		$ 100,000,000
Maturity date		12/31/2020

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Share-Based Compensation Expenses (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Option plan	$ 24,428	$ 22,245	$ 16,497
Other share-based awards	26,574	57,640	56,770
Total share-based compensation before tax	51,002	79,885	73,267
Tax benefit	19,039	29,835	27,401
Total share-based compensation expense included in net income	$ 31,963	$ 50,050	$ 45,866

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Consolidated Statements Of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
Net income	$ 454,029	$ 377,292	$ 312,310
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of tax benefit (expense) of $65, $1,841, and ($182)	(44,371)	4,913	4,124
Unrealized gain (loss) on derivative instruments, net of tax benefit (expense) of $970, ($950), and $2,325	(1,631)	1,610	(3,909)
Comprehensive income	$ 408,027	$ 383,815	$ 312,525

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Organization and Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Significant Accounting Policies

Organization and Significant Accounting Policies

Polaris Industries Inc. (“Polaris” or the “Company”), a Minnesota corporation, and its subsidiaries are engaged in the design, engineering, manufacturing and marketing of innovative, high-quality, high-performance Off-Road Vehicles (ORV), Snowmobiles, Motorcycles and Small Vehicles (SV). Polaris products, together with related parts, garments and accessories are sold worldwide through a network of independent dealers and distributors and its subsidiaries. The primary markets for our products are the United States, Canada, Western Europe, Australia and Mexico.

Basis of presentation. The accompanying consolidated financial statements include the accounts of Polaris and its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Income from financial services is reported as a component of operating income to better reflect income from ongoing operations, of which financial services has a significant impact.

On September 2, 2004, the Company announced its decision to discontinue the manufacture of marine products effective immediately. Material financial results for the marine products division are reported separately as discontinued operations for all periods presented.

The Company evaluates consolidation of entities under Accounting Standards Codification (ASC) Topic 810. This Topic requires management to evaluate whether an entity or interest is a variable interest entity and whether the company is the primary beneficiary. Polaris used the guidelines to analyze the Company’s relationships, including its relationship with Polaris Acceptance, and concluded that there were no variable interest entities requiring consolidation by the Company in 2014, 2013 and 2012.

In April 2014, the Company completed an acquisition of Kolpin Outdoors, Inc. ("Kolpin"), and in November 2014, completed the acquisition of certain assets of LSI Products Inc. and Armor Holdings, LLC. ("Pro Armor"). Kolpin is a leading aftermarket brand delivering purpose-built and universal-fit ORV accessories and lifestyle products. Pro Armor is an industry-leading brand in performance side-by-side accessories, that operates under the Pro Armor brand. The Company has included the financial results of the acquisitions in its consolidated results of operations beginning on the respective acquisition dates; however, the acquisitions did not have a material impact on Polaris’ consolidated financial position or results of operations. Refer to Note 5 for additional information regarding the acquisitions of Kolpin and Pro Armor.

In April 2013, the Company completed an acquisition of A.M. Holding S.A.S., which operates under the name Aixam Mega S.A.S. ("Aixam"). The Company has included the financial results of the acquisition in its consolidated results of operations beginning on the acquisition date; however, the acquisition did not have a material impact on Polaris’ consolidated financial position or results of operations.

Reclassifications. Certain reclassifications of previously reported balance sheet amounts have been made to conform to the current year presentation. The reclassifications had no impact on the consolidated statements of income, current assets or current liabilities in the consolidated balance sheets, as previously reported.

Use of estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate results could differ from those estimates.

Fair value measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date:

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.

In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. 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, and for the income approach the Company uses significant other observable inputs to value its 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):

	Fair Value Measurements as of December 31, 2014
Asset (Liability)	Total			Level 1			Level 2			Level 3
Non-qualified deferred compensation assets	$	41,797		$	41,797		—			—
Total assets at fair value	$	41,797		$	41,797		—			—
Commodity contracts, net	$	(4,609	)	—			$	(4,609	)
Foreign exchange contracts, net	(2,570		)	—			(2,570		)	—
Non-qualified deferred compensation liabilities	(41,797		)	$	(41,797	)	—			—
Total liabilities at fair value	$	(48,976	)	$	(41,797	)	$	(7,179	)	—
	Fair Value Measurements as of December 31, 2013
Asset (Liability)	Total			Level 1			Level 2			Level 3
Commodity contracts, net	$	30		—			$	30		—
Non-qualified deferred compensation assets	24,711			$	24,711		—			—
Total assets at fair value	$	24,741		$	24,711		$	30		—
Foreign exchange contracts, net	$	(9	)	—			$	(9	)	—
Non-qualified deferred compensation liabilities	(24,711		)	$	(24,711	)	—			—
Total liabilities at fair value	$	(24,720	)	$	(24,711	)	$	(9	)	—

Polaris measures certain assets and liabilities at fair value on a nonrecurring basis. Assets acquired and liabilities assumed as part of acquisitions are measured at fair value. Refer to Note 5 for additional information. Polaris will impair or write off an investment and recognize a loss when events or circumstances indicate there is impairment in the investment that is other-than-temporary. The amount of loss is determined by measuring the investment at fair value. Refer to Note 9 for additional information.

Cash equivalents. Polaris considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. Such investments consist principally of money market mutual funds.

Allowance for doubtful accounts. Polaris’ financial exposure to collection of accounts receivable is limited due to its agreements with certain finance companies. For receivables not serviced through these finance companies, the Company provides a reserve for doubtful accounts based on historical rates and trends. This reserve is adjusted periodically as information about specific accounts becomes available.

Inventories. Inventory costs include material, labor, and manufacturing overhead costs, including depreciation expense associated with the manufacture and distribution of the Company's products. 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):

	December 31, 2014			December 31, 2013
Raw materials and purchased components	$	165,823		$	107,496
Service parts, garments and accessories	163,455			125,765
Finished goods	262,578			206,290
Less: reserves	(26,171		)	(21,603		)
Inventories	$	565,685		$	417,948

Investment in finance affiliate. The caption investment in finance affiliate in the consolidated balance sheets represents Polaris’ fifty percent equity interest in Polaris Acceptance, a partnership agreement between GE Commercial Distribution Finance Corporation (“GECDF”) and one of Polaris’ wholly-owned subsidiaries. Polaris Acceptance provides floor plan financing to Polaris dealers in the United States. Polaris’ investment in Polaris Acceptance is accounted for under the equity method, and is recorded as investment in finance affiliate in the consolidated balance sheets. Polaris’ allocable share of the income of Polaris Acceptance has been included as a component of income from financial services in the consolidated statements of income. Refer to Note 8 for additional information regarding Polaris’ investment in Polaris Acceptance.

Investment in other affiliates. Polaris' investment in other affiliates is included within other long-term assets in the consolidated balance sheets, and represents the Company’s investment in nonmarketable securities of strategic companies. For each investment, Polaris assesses the level of influence in determining whether to account for the investment under the cost method or equity method. For equity method investments, Polaris’ proportionate share of income or losses is recorded in the consolidated statements of income. Polaris will write down or write off an investment and recognize a loss if and when events or circumstances indicate there is impairment in the investment that is other-than-temporary. Refer to Note 9 for additional information regarding Polaris’ investment in other affiliates.

Property and equipment. Property and equipment is stated at cost. Depreciation is provided using the straight-line method over the estimated useful life of the respective assets, ranging from 10-40 years for buildings and improvements and from 1-7 years for equipment and tooling. Depreciation of assets recorded under capital leases is included with depreciation expense. Fully depreciated tooling is eliminated from the accounting records annually.

Goodwill and other intangible assets. ASC Topic 350 prohibits the amortization of goodwill and intangible assets with indefinite useful lives. Topic 350 requires that these assets be reviewed for impairment at least annually. An impairment charge for goodwill is recognized only when the estimated fair value of a reporting unit, including goodwill, is less than its carrying amount. Refer to Note 5 for additional information regarding goodwill and other intangible assets.

Revenue recognition. Revenues are recognized at the time of shipment to the dealer or distributor or other customers. Product returns, whether in the normal course of business or resulting from repossession under the Company's customer financing program (see Note 8), have not been material. Polaris sponsors certain sales incentive programs and accrues liabilities for estimated sales promotion expenses and estimated holdback amounts that are recognized as reductions to sales when products are sold to the dealer or distributor customer.

Sales promotions and incentives. Polaris provides for estimated sales promotion and incentive expenses, which are recognized as a reduction to sales, at the time of sale to the dealer or distributor. Examples of sales promotion and incentive programs include dealer and consumer rebates, volume incentives, retail financing programs and sales associate incentives. Sales promotion and incentive expenses are estimated based on current programs and historical rates for each product line. Actual results may differ from these estimates if market conditions dictate the need to enhance or reduce sales promotion and incentive programs or if the customer usage rate varies from historical trends. Historically, sales promotion and incentive expenses have been within the Company’s expectations and differences have not been material.

Dealer holdback programs. Dealer holdback represents a portion of the invoiced sales price that is expected to be subsequently returned to the dealer or distributor as a sales incentive upon the ultimate retail sale of the product. Holdback amounts reduce the ultimate net price of the products purchased by Polaris’ dealers or distributors and, therefore, reduce the amount of sales Polaris recognizes at the time of shipment. The portion of the invoiced sales price estimated as the holdback is recognized as “dealer holdback” liability on the Company’s balance sheet until paid or forfeited. The minimal holdback adjustments in the estimated holdback liability due to forfeitures are recognized in net sales. Payments are made to dealers or distributors at various times during the year subject to previously established criteria.

Shipping and handling costs. Polaris records shipping and handling costs as a component of cost of sales at the time the product is shipped.

Research and development expenses. Polaris records research and development expenses in the period in which they are incurred as a component of operating expenses.

Advertising expenses. Polaris records advertising expenses as a component of selling and marketing expenses in the period in which they are incurred. In the years ended December 31, 2014, 2013, and 2012, Polaris incurred $82,600,000, $73,945,000, and $58,752,000, respectively.

Product warranties. Polaris provides a limited warranty for its ORVs for a period of six months, for a period of one year for its snowmobiles, for a period of one or two years for its motorcycles depending on brand and model year, and for a two year period for SVs. Polaris provides longer warranties in certain geographical markets as determined by local regulations and market conditions and may also provide longer warranties related to certain promotional programs. Polaris’ standard warranties require the Company or its dealers to repair or replace defective products during such warranty periods at no cost to the consumer. The warranty reserve is established at the time of sale to the dealer or distributor based on management’s best estimate using historical rates and trends. Adjustments to the warranty reserve are made from time to time as actual claims become known in order to properly estimate the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. Factors that could have an impact on the warranty accrual in any given period include the following: improved manufacturing quality, shifts in product mix, changes in warranty coverage periods, snowfall and its impact on snowmobile usage, product recalls and any significant changes in sales volume.

The activity in the warranty reserve during the periods presented was as follows (in thousands):

	For the Years Ended December 31,
	2014			2013			2012
Balance at beginning of year	$	52,818		$	47,723		$	44,355
Additions to warranty reserve through acquisitions	160			1,602			900
Additions charged to expense	61,888			56,857			46,088
Warranty claims paid	(61,762		)	(53,364		)	(43,620		)
Balance at end of year	$	53,104		$	52,818		$	47,723

Share-based employee compensation. For purposes of determining the estimated fair value of share-based payment awards on the date of grant under ASC Topic 718, Polaris uses the Black-Scholes Model. The Black-Scholes Model requires the input of certain assumptions that require judgment. Because employee stock options and restricted stock awards have characteristics significantly different from those of traded options, and because changes in the input assumptions can materially affect the fair value estimate, the existing models may not provide a reliable single measure of the fair value of the employee stock options or restricted stock awards. Management will continue to assess the assumptions and methodologies used to calculate estimated fair value of share-based compensation. Circumstances may change and additional data may become available over time, which could result in changes to these assumptions and methodologies and thereby materially impact the fair value determination. If factors change and the Company employs different assumptions in the application of Topic 718 in future periods, the compensation expense that was recorded under Topic 718 may differ significantly from what was recorded in the current period. Refer to Note 2 for additional information regarding share-based compensation.

The Company estimates the likelihood and the rate of achievement for performance share-based awards. Changes in the estimated rate of achievement and fluctuation in the market based stock price can have a significant effect on reported share-based compensation expenses as the effect of a change in the estimated achievement level and fluctuation in the market based stock price is recognized in the period that the likelihood factor and stock price changes. If adjustments in the estimated rate of achievement and fluctuation in the market based stock price are made, they would be reflected in our gross margin and operating expenses.

Derivative instruments and hedging activities. Changes in the fair value of a derivative are recognized in earnings unless the derivative qualifies as a hedge. To qualify as a hedge, the Company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting.

Polaris enters into foreign exchange contracts to manage currency exposures from certain of its purchase commitments denominated in foreign currencies and transfers of funds from time to time from its foreign subsidiaries. Polaris does not use any financial contracts for trading purposes. These contracts met the criteria for cash flow hedges. Gains and losses on the Canadian dollar, Norwegian Krone, Swedish Krona and Australian dollar contracts at settlement are recorded in non-operating other expense (income) in the consolidated income statements, and gains and losses on the Japanese yen, Mexican peso and Euro contracts at settlement are recorded in cost of sales in the consolidated income statements. Unrealized gains and losses are recorded as a component of accumulated other comprehensive income (loss).

Polaris is subject to market risk from fluctuating market prices of certain purchased commodity raw materials, including steel, aluminum, diesel fuel, and petroleum-based resins. In addition, the Company purchases components and parts containing various commodities, including steel, aluminum, rubber, rare earth metals and others which are integrated into the Company’s end products. While such materials are typically available from numerous suppliers, commodity raw materials are subject to price fluctuations. The Company generally buys these commodities and components based upon market prices that are established with the vendor as part of the purchase process. From time to time, Polaris utilizes derivative contracts to hedge a portion of the exposure to commodity risks. During 2014 and 2013, the Company entered into derivative contracts to hedge a portion of the exposure for diesel fuel and aluminum. The Company's diesel fuel and aluminum hedging contracts do not meet the criteria for hedge accounting and therefore, the resulting unrealized gains and losses from those contracts are included in the consolidated statements of income in cost of sales. Refer to Note 11 for additional information regarding derivative instruments and hedging activities.

The gross unrealized gains and losses of these contracts are recorded in the accompanying balance sheets as other current assets or other current liabilities.

Foreign currency translation. The functional currency for each of the Polaris foreign subsidiaries is their respective local currencies. The assets and liabilities in all Polaris foreign entities are translated at the foreign exchange rate in effect at the balance sheet date. Translation gains and losses are reflected as a component of accumulated other comprehensive income (loss) in the shareholders’ equity section of the accompanying consolidated balance sheets. Revenues and expenses in all of Polaris’ foreign entities are translated at the average foreign exchange rate in effect for each month of the quarter. Transaction gains and losses including intercompany transactions denominated in a currency other than the functional currency of the entity involved are included in other expense (income), net in our consolidated statements of income.

Comprehensive income. Components of comprehensive income include net income, foreign currency translation adjustments, and unrealized gains or losses on derivative instruments. The Company has chosen to disclose comprehensive income in separate consolidated statements of comprehensive income.

New accounting pronouncements. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue from the transfer of goods or services to customers in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. Polaris is required to adopt the new pronouncement on January 1, 2017 using one of two retrospective application methods. The Company is evaluating the application method and the impact of this new standard on the financial statements.

There are no other new accounting pronouncements that are expected to have a significant impact on Polaris' consolidated financial statements.

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Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at January 1,	$ 13,199	$ 6,704
Increases due to acquisition opening balance sheet positions	0	6,420
Gross increases for tax positions of prior years	55	561
Gross increases for tax positions of current year	1,456	3,755
Decreases due to settlements and other prior year tax positions	(2,346)	(3,310)
Decreases for lapse of statute of limitations	(1,586)	(1,344)
Currency translation effect on foreign balances	(942)	413
Balance at December 31,	9,836	13,199
Reserves related to potential interest at December 31,	732	1,093
Unrecognized tax benefits at December 31,	$ 10,568	$ 14,292

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Future Minimum Annual Lease Payments under Capital and Operating Leases with Non-cancelable Terms in Excess of One Year (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Capital Leases, Lease Obligations
2015	$ 3,915
2016	3,281
2017	2,903
2018	2,403
2019	2,203
Thereafter	23,639
Total future minimum lease obligation	38,344
Operating Leases, Lease Obligations
2015	9,576
2016	5,098
2017	3,326
2018	1,945
2019	1,173
Thereafter	1,403
Total future minimum lease obligation	$ 22,521

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Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of share-based compensation expenses

Total share-based compensation expenses were as follows (in thousands):

	For the Years Ended December 31,
	2014		2013		2012
Option plan	$	24,428	$	22,245	$	16,497
Other share-based awards	26,574		57,640		56,770
Total share-based compensation before tax	51,002		79,885		73,267
Tax benefit	19,039		29,835		27,401
Total share-based compensation expense included in net income	$	31,963	$	50,050	$	45,866

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

The following summarizes stock option activity and the weighted average exercise price for the following plans for the each of the three years ended December 31, 2014, 2013 and 2012:

	Omnibus Plan (Active)				Option Plan (Frozen)				Director Stock Option Plan (Frozen)
	Outstanding Shares		Weighted Average Exercise Price		Outstanding Shares		Weighted Average Exercise Price		Outstanding Shares		Weighted Average Exercise Price
Balance as of December 31, 2011	4,682,737		$	29.45	1,098,546		$	25.08	80,000		$	23.52
Granted	570,700		66.19		—		—		—		—
Exercised	(861,397	)	22.54		(744,974	)	25.84		(64,000	)	22.62
Forfeited	(61,630	)	40.95		—		—		—		—
Balance as of December 31, 2012	4,330,410		$	35.50	353,572		$	23.47	16,000		$	27.10
Granted	1,037,729		87.06		—		—		—		—
Exercised	(821,679	)	24.45		(191,141	)	23.23		(16,000	)	27.10
Forfeited	(80,380	)	47.55		—		—		—		—
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	—		—
Vested or expected to vest as of December 31, 2014	4,206,512		$	66.38	63,233		$	23.76	—		—
Options exercisable as of December 31, 2014	1,640,169		$	32.52	63,233		$	23.76	—		—

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The following assumptions were used to estimate the weighted average fair value of options of $39.97, $30.43, and $23.40 granted during the years ended December 31, 2014, 2013, and 2012, respectively:

	For the Years Ended December 31,
	2014		2013		2012
Weighted-average volatility	40	%	49	%	50	%
Expected dividend yield	1.5	%	1.9	%	2.2	%
Expected term (in years)	4.5		4.4		4.6
Weighted average risk free interest rate	1.6	%	0.9	%	0.7	%

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]

The following table summarizes restricted stock activity for the year ended December 31, 2014:

	Shares Outstanding		Weighted Average Grant Price
Balance as of December 31, 2013	770,967		$	74.47
Granted	407,626		134.34
Vested	(65,020	)	50.29
Canceled/Forfeited	(35,842	)	87.12
Balance as of December 31, 2014	1,077,731		$	98.15
Expected to vest as of December 31, 2014	895,243		$	94.80

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Derivative Instruments and Hedging Activities Additional Information (Details) (Cost of sales, Commodity contracts, USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cost of sales | Commodity contracts
Derivatives, Fair Value [Line Items]
Recognized gain (loss) in cost of sales on commodity contracts not designated as hedging instruments	$ (4,820)	$ (878)

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Major Components of Inventories (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Raw materials and purchased components	$ 165,823	$ 107,496
Service parts, garments and accessories	163,455	125,765
Finished goods	262,578	206,290
Less: reserves	(26,171)	(21,603)
Inventories	$ 565,685	$ 417,948

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Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

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 December 31, 2014, Polaris had the following open foreign currency contracts (in thousands):

Foreign Currency	Notional Amounts (in U.S. dollars)		Net Unrealized Gain (Loss)
Australian Dollar	$	3,491	$	391
Canadian Dollar	40,550		38
Japanese Yen	22,201		(1,008		)
Mexican Peso	34,060		(1,991		)
Total	$	100,302	$	(2,570	)

These contracts, with maturities through December 31, 2015, 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 (loss) 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 table below summarizes the carrying values of derivative instruments as of December 31, 2014 and 2013 (in thousands):

	Carrying Values of Derivative Instruments as of December 31, 2014
	Fair Value— Assets		Fair Value— (Liabilities)			Derivative Net Carrying Value
Derivatives designated as hedging instruments
Foreign exchange contracts(1)	$	534	$	(3,104	)	$	(2,570	)
Total derivatives designated as hedging instruments	$	534	$	(3,104	)	$	(2,570	)
Commodity contracts(1)	$	—	$	(4,609	)	$	(4,609	)
Total derivatives not designated as hedging instruments	$	—	$	(4,609	)	$	(4,609	)
Total derivatives	$	534	$	(7,713	)	$	(7,179	)

	Carrying Values of Derivative Instruments as of December 31, 2013
	Fair Value— Assets		Fair Value— (Liabilities)			Derivative Net Carrying Value
Derivatives designated as hedging instruments
Foreign exchange contracts(1)	$	1,194	$	(1,203	)	$	(9	)
Total derivatives designated as hedging instruments	$	1,194	$	(1,203	)	$	(9	)
Commodity contracts(1)	$	46	$	(16	)	$	30
Total derivatives not designated as hedging instruments	$	46	$	(16	)	$	30
Total derivatives	$	1,240	$	(1,219	)	$	21

(1) Assets are included in prepaid expenses and other and liabilities are included in other accrued expenses on the accompanying consolidated balance sheets.

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 (loss) 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 the effective portion of derivative instruments designated as cash flow hedges included in accumulated other comprehensive income (loss) for the years ended December 31, 2014 and 2013 (in thousands):

Derivatives in Cash Flow Hedging Relationships	For the Years Ended December 31,
	2014			2013
Interest rate contracts	—			$	(26	)
Foreign currency contracts	$	(1,631	)	1,636
Total	$	(1,631	)	$	1,610

See Note 7 for information about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive income (loss) into the income statement for derivative instruments designated as hedging instruments. The ineffective portion of foreign currency contracts was not material for the years ended December 31, 2014 and 2013.

The Company recognized a loss of $4,820,000 and $878,000 in cost of sales on commodity contracts not designated as hedging instruments in 2014 and 2013, respectively.