Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions):


	Fair Value Measurements as of September 30, 2020
Asset (Liability)	Total		Level 1		Level 2		Level 3
Non-qualified deferred compensation assets	$	49.5	$	49.5	$	—	$	—


Total assets at fair value	$	49.5	$	49.5	$	—	$	—
Non-qualified deferred compensation liabilities	$	(49.5)	$	(49.5)	$	—	$	—
Foreign exchange contracts, net	(2.0)		—		(2.0)		—
Interest rate contracts, net	(20.0)		—		(20.0)		—
Total liabilities at fair value	$	(71.5)	$	(49.5)	$	(22.0)	$	—

	Fair Value Measurements as of December 31, 2019
Asset (Liability)	Total		Level 1		Level 2		Level 3
Non-qualified deferred compensation assets	$	48.9	$	48.9	$	—	$	—

Total assets at fair value	$	48.9	$	48.9	$	—	$	—
Non-qualified deferred compensation liabilities	$	(48.9)	$	(48.9)	$	—	$	—
Foreign exchange contracts, net	(0.1)		—		(0.1)		—
Interest rate contracts, net	(8.0)		—		(8.0)		—
Total liabilities at fair value	$	(57.0)	$	(48.9)	$	(8.1)	$	—

The major components of inventories are as follows (in millions):


	September 30, 2020		December 31, 2019
Raw materials and purchased components	$	536.6	$	344.6
Service parts, garments and accessories	320.6		357.0
Finished goods	420.8		476.2
Less: reserves	(64.5)		(56.7)
Inventories	$	1,213.5	$	1,121.1

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


	Three months ended September 30,						Nine months ended September 30,
	2020		2019		2020		2019
Balance at beginning of period	$	134.2	$	132.8	$	136.2	$	121.8
Additions to reserve related to acquisitions	—		—		—		8.8
Additions charged to expense	37.2		31.4		91.2		94.3
Warranty claims paid, net	(30.8)		(27.1)		(86.8)		(87.8)
Balance at end of period	$	140.6	$	137.1	$	140.6	$	137.1

The following tables disaggregate the Company’s revenue by major product type and geography (in millions):


	Three months ended September 30, 2020
	ORV / Snowmobiles		Motorcycles		Global Adj. Markets		Aftermarket		Boats		Total
Revenue by product type
Wholegoods	$	1,022.0	$	137.7	$	86.1	—		$	155.1	$	1,400.9
PG&A	266.8		29.2		20.5		$	237.2	—		553.7
Total revenue	$	1,288.8	$	166.9	$	106.6	$	237.2	$	155.1	$	1,954.6

Revenue by geography
United States	$	1,090.5	$	120.2	$	52.9	$	224.9	$	152.9	$	1,641.4
Canada	89.6		6.1		0.2		12.3		2.2		110.4
EMEA	71.2		21.6		52.9		—		—		145.7
APLA	37.5		19.0		0.6		—		—		57.1
Total revenue	$	1,288.8	$	166.9	$	106.6	$	237.2	$	155.1	$	1,954.6

	Three months ended September 30, 2019
	ORV / Snowmobiles		Motorcycles		Global Adj. Markets		Aftermarket		Boats		Total
Revenue by product type
Wholegoods	$	950.0	$	127.4	$	92.3	—		$	119.1	$	1,288.8
PG&A	202.4		22.5		21.7		$	236.2	—		482.8
Total revenue	$	1,152.4	$	149.9	$	114.0	$	236.2	$	119.1	$	1,771.6

Revenue by geography
United States	$	964.1	$	105.5	$	60.9	$	224.1	$	117.2	$	1,471.8
Canada	91.1		7.9		0.4		12.1		1.9		113.4
EMEA	63.4		21.7		52.3		—		—		137.4
APLA	33.8		14.8		0.4		—		—		49.0
Total revenue	$	1,152.4	$	149.9	$	114.0	$	236.2	$	119.1	$	1,771.6