Polaris Acceptance, a joint venture between the Company and Wells Fargo Commercial Distribution Finance Corporation, a direct subsidiary of Wells Fargo Bank, N.A. (“Wells Fargo”), which is supported by a partnership agreement between their respective wholly owned subsidiaries, finances substantially all of the Company’s United States sales of snowmobiles, ORVs, motorcycles, and related PG&A, whereby the Company receives payment within a few days of shipment of the product.

The Company’s 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 Wells Fargo. 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. The Company’s 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. The partnership agreement is effective through February 2027.

The Company’s total investment in Polaris Acceptance of $49.3 million as of December 31, 2021 is accounted for under the equity method and is recorded in investment in finance affiliate in the consolidated balance sheets. As of December 31, 2021, the outstanding amount of net receivables financed for dealers under this arrangement was $637.5 million, which included $470.7 million in the Polaris Acceptance portfolio and $166.8 million of receivables within the Securitization Facility (“Securitized Receivables”).

The Company 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 2021, the potential 15 percent aggregate repurchase obligation was approximately $138.7 million.

Summarized financial information for Polaris Acceptance reflecting the effects of the Securitization Facility are as follows (in millions):


	For the Years Ended December 31,
	2021		2020		2019
Revenues	$	21.9	$	44.7	$	79.3
Interest and operating expenses	6.6		7.6		14.4
Net income	$	15.3	$	37.1	$	64.9


	As of December 31,
	2021		2020
Finance receivables, net	$	470.7	$	392.7
Other assets	29.1		13.9
Total assets	$	499.8	$	406.6
Notes payable	$	366.9	$	248.4
Other liabilities	34.4		39.4
Partners’ capital	98.5		118.8
Total liabilities and partners’ capital	$	499.8	$	406.6

A subsidiary of Huntington Bancshares Incorporated (“Huntington”) finances a portion of the Company’s United States sales of boats whereby the Company receives payment within a few days of shipment of the product. The Company has agreed to repurchase products repossessed by Huntington up to a maximum of 100 percent of the aggregate outstanding Huntington receivables balance. As of December 31, 2021, the potential aggregate repurchase obligation was approximately $133.3 million.

The Company has other financing arrangements related to its foreign subsidiaries in which it has agreed to repurchase repossessed products. For calendar year 2021, the potential aggregate repurchase obligations were approximately $21.8 million.

The Company’s financial exposure under these repurchase agreements is limited to the difference between the amounts unpaid by the dealer or distributor 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.

The amount financed worldwide by dealers under arrangements with finance companies as of December 31, 2021 was approximately $946.7 million. The Company has agreed to repurchase products repossessed by the finance companies. As a part of its marketing program, the Company contributes to the cost of dealer financing up to certain limits and subject to certain conditions. Such expenditures are presented as a reduction of sales in the consolidated statements of income.

The Company has agreements with third-party financing companies to provide financing options to end consumers of the Company’s products. The Company has no material contingent liabilities for residual value or credit collection risk under