Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-11411 | ||
Entity Registrant Name | POLARIS INC. | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-1790959 | ||
Entity Address, Address Line One | 2100 Highway 55, | ||
Entity Address, City or Town | Medina, | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55340 | ||
City Area Code | 763 | ||
Local Phone Number | 542-0500 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | PII | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,911,815,000 | ||
Entity Common Stock, Shares Outstanding | 57,076,372 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE: Portions of the definitive Proxy Statement for the registrant’s Annual Meeting of Shareholders to be held on or about April 27, 2023, to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this report (the “2023 Proxy Statement”), are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000931015 | ||
ICFR Auditor Attestation Flag | true |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Minneapolis, Minnesota |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 324.5 | $ 502.3 |
Trade receivables, net | 343 | 227.9 |
Inventories, net | 1,896.1 | 1,510.7 |
Prepaid expenses and other | 183.7 | 150.9 |
Income taxes receivable | 20.3 | 4 |
Current assets held for sale | 0 | 163.2 |
Total current assets | 2,767.6 | 2,559 |
Property and equipment, net | 1,018.4 | 927.7 |
Investment in finance affiliate | 93.1 | 49.3 |
Deferred tax assets | 210.5 | 162.9 |
Goodwill and other intangible assets, net | 910.6 | 935.2 |
Operating Lease, Right-of-Use Asset | 111 | 90.5 |
Other long-term assets | 106.7 | 97.2 |
Total assets | 5,217.9 | 5,047.8 |
Current liabilities: | ||
Current portion of debt, finance lease obligations and notes payable | 553.6 | 553.3 |
Accounts payable | 847.6 | 776 |
Accrued expenses | 896.8 | 756.5 |
Operating Lease, Liability, Current | 24.1 | 19.4 |
Income taxes payable | 6.5 | 17.1 |
Current liabilities held for sale | 0 | 107.8 |
Total current liabilities | 2,328.6 | 2,230.1 |
Long-term income taxes payable | 11.7 | 13.3 |
Finance lease obligations | 9.9 | 12.1 |
Long-term debt | 1,494.3 | 1,235.3 |
Deferred tax liabilities | 4.6 | 5.5 |
Operating Lease, Liability, Noncurrent | 87 | 71.3 |
Other long-term liabilities | 167.7 | 176.6 |
Long-term liabilities held for sale | 0 | 66.1 |
Total liabilities | 4,103.8 | 3,810.3 |
Deferred compensation | 12.6 | 11.2 |
Shareholders’ equity: | ||
Preferred stock $0.01 par value per share, 20.0 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock $0.01 par value per share, 160.0 shares authorized, 57.0 and 60.4 shares issued and outstanding, respectively | 0.6 | 0.6 |
Additional paid-in capital | 1,152.1 | 1,143.8 |
Retained earnings | 33.8 | 157.3 |
Accumulated other comprehensive loss, net | (87.5) | (77.4) |
Total shareholders’ equity | 1,099 | 1,224.3 |
Stockholders' Equity Attributable to Noncontrolling Interest | 2.5 | 2 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,101.5 | 1,226.3 |
Total liabilities and equity | 5,217.9 | 5,047.8 |
Long-term assets held for sale | $ 0 | $ 226 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
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 | 57,000,000 | 60,400,000 |
Common stock, shares outstanding | 57,000,000 | 60,400,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Sales | $ 8,589 | $ 7,439.2 | $ 6,281.4 |
Cost of sales | 6,629.5 | 5,688.3 | 4,745.7 |
Gross profit | 1,959.5 | 1,750.9 | 1,535.7 |
Operating expenses: | |||
Selling and marketing | 480.8 | 458.2 | 429.8 |
Research and development | 366.7 | 328.7 | 288.1 |
General and administrative | 355.9 | 305.8 | 296.1 |
Goodwill, Impairment Loss | 0 | 0 | 81.1 |
Total operating expenses | 1,203.4 | 1,092.7 | 1,095.1 |
Operating income | 804.5 | 712 | 521 |
Non-operating expense: | |||
Interest expense | 71.7 | 44.2 | 66.8 |
Other (income) expense, net | (28.6) | 2.3 | 3.8 |
Loss on sale of businesses | 0 | 36.8 | 0 |
Income from continuing operations before income taxes | 761.4 | 628.7 | 450.4 |
Provision for income taxes | 158 | 132.1 | 89.9 |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 603.4 | 496.6 | 360.5 |
Loss from discontinued operations, net of tax | (13.2) | (2.3) | (235.6) |
Loss from sale of discontinued operations, net of tax | (142.6) | 0 | 0 |
Net income from continuing operations | 447.6 | 494.3 | 124.9 |
Net income attributable to noncontrolling interest | (0.5) | (0.4) | (0.1) |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 602.9 | 496.2 | 360.4 |
Net income from continuing operations | $ 447.1 | $ 493.9 | $ 124.8 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 10.17 | $ 8.10 | $ 5.83 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | (2.63) | (0.04) | (3.81) |
Net income (loss) per share attributable to Polaris Inc. common shareholders: | |||
Basic (in dollars per share) | 7.54 | 8.06 | 2.02 |
Income (Loss) from Continuing Operations, Per Diluted Share | 10.04 | 7.92 | 5.75 |
Diluted (in dollars per share) | $ 7.44 | $ 7.88 | $ 1.99 |
Weighted average shares outstanding: | |||
Basic (in shares) | 59.3 | 61.3 | 61.9 |
Diluted (in shares) | 60.1 | 62.7 | 62.6 |
Net loss from discontinued operations | $ (155.8) | $ (2.3) | $ (235.6) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | $ (2.60) | $ (0.04) | $ (3.76) |
Financial Service | |||
Operating expenses: | |||
Income from financial services | $ 48.4 | $ 53.8 | $ 80.4 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income from continuing operations | $ 447.6 | $ 494.3 | $ 124.9 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments | (25.3) | (30.4) | 24.2 |
Unrealized gain (loss) on derivative instruments | 14.9 | 11.1 | (9.4) |
Retirement plan and other activity | 0.3 | 0.3 | (0.5) |
Comprehensive income | 437.5 | 475.3 | 139.2 |
Comprehensive income attributable to noncontrolling interest | (0.5) | (0.4) | (0.1) |
Comprehensive income | $ 437 | $ 474.9 | $ 139.1 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated other Comprehensive Income (Loss) | Non Controlling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 0.2 | |||||
Beginning Balance at Dec. 31, 2019 | $ 1,108.2 | $ 0.6 | $ 892.8 | $ 287.3 | $ (72.7) | |
Beginning Balance (in shares) at Dec. 31, 2019 | 61.4 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Employee stock compensation | 65.3 | 65.3 | ||||
Deferred compensation | 1.3 | 0.5 | 0.8 | |||
Employee stock compensation (in shares) | 0.6 | |||||
Proceeds from stock issuances under employee plans | 33.6 | 33.6 | ||||
Proceeds from stock issuances under employee plans (in shares) | 0.5 | |||||
Cash dividends declared ($2.32 per share, $2.20 per share and $2.12 per share in 2017, 2016, and 2015 respectively) | (152.5) | 152.5 | ||||
Repurchase and retirement of common shares | $ (50.3) | (8.3) | (42) | |||
Repurchase and retirement of common shares (in shares) | (0.6) | (0.6) | ||||
Net income | $ 124.8 | 124.8 | ||||
Net income from continuing operations | 124.9 | 0.1 | ||||
Other comprehensive income | 14.3 | 14.3 | ||||
Ending Balance at Dec. 31, 2020 | 1,144.8 | $ 0.6 | 983.9 | 218.4 | (58.4) | |
Ending Balance (in shares) at Dec. 31, 2020 | 61.9 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 0.3 | |||||
Employee stock compensation | 62.7 | 62.7 | ||||
Deferred compensation | 1.1 | 1.3 | (0.2) | |||
Employee stock compensation (in shares) | 0.5 | |||||
Proceeds from stock issuances under employee plans | 156.1 | 156.1 | ||||
Proceeds from stock issuances under employee plans (in shares) | 1.8 | |||||
Cash dividends declared ($2.32 per share, $2.20 per share and $2.12 per share in 2017, 2016, and 2015 respectively) | (153.4) | (153.4) | ||||
Repurchase and retirement of common shares | $ (461.6) | (60.2) | (401.4) | |||
Repurchase and retirement of common shares (in shares) | (3.8) | 3.8 | ||||
Net income | $ 493.9 | 493.9 | ||||
Net income from continuing operations | 494.3 | 0.4 | ||||
Other comprehensive income | (19) | (19) | ||||
Ending Balance at Dec. 31, 2021 | 1,224.3 | |||||
Ending Balance (in shares) at Dec. 31, 2021 | 60.4 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,226.3 | $ 0.6 | 1,143.8 | 157.3 | (77.4) | 2 |
Employee stock compensation | 60 | 60 | ||||
Deferred compensation | (1.4) | (2.5) | 1.1 | |||
Employee stock compensation (in shares) | 0.6 | |||||
Proceeds from stock issuances under employee plans | 34.1 | 34.1 | ||||
Proceeds from stock issuances under employee plans (in shares) | 0.4 | |||||
Cash dividends declared ($2.32 per share, $2.20 per share and $2.12 per share in 2017, 2016, and 2015 respectively) | (150) | (150) | ||||
Repurchase and retirement of common shares | $ (505) | (83.3) | (421.7) | |||
Repurchase and retirement of common shares (in shares) | (4.4) | (4.4) | ||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | $ 1.3 | 1.3 | ||||
Net income | 447.1 | |||||
Net income from continuing operations | 447.6 | 447.1 | 0.5 | |||
Other comprehensive income | (10.1) | (10.1) | ||||
Ending Balance at Dec. 31, 2022 | 1,099 | |||||
Ending Balance (in shares) at Dec. 31, 2022 | 57 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,101.5 | $ 0.6 | $ 1,152.1 | $ 33.8 | $ (87.5) | $ 2.5 |
Consolidated Statements Of Sh_2
Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Quarterly dividend declared and paid per common share | $ 0.64 | $ 0.63 | $ 0.62 | $ 2.56 | $ 2.52 | $ 2.48 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Net income | $ 447.6 | $ 494.3 | $ 124.9 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 232.8 | 216.4 | 235.8 |
Noncash compensation | 62.9 | 60.6 | 65.3 |
Noncash income from financial services | (15.1) | (7.7) | (18.5) |
Deferred income taxes | (48.9) | 15.2 | (83.7) |
Loss on sale of businesses | 0 | 34.8 | 0 |
Other, net | (0.5) | 7.1 | 1.8 |
Changes in operating assets and liabilities: | |||
Trade receivables | (122.6) | 1.8 | (64.6) |
Inventories | (391.1) | (490.1) | (61.3) |
Accounts payable | 71.7 | 31.2 | 324.2 |
Accrued expenses | 131.1 | (62.3) | 42.5 |
Income taxes payable/receivable | 18.4 | (3.8) | 104.4 |
Prepaid expenses and other, net | (7.6) | (13) | (25.7) |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 534.5 | 286.8 | 961.8 |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | (25.9) | 6.9 | 56.8 |
Net cash provided by operating activities of continuing operations | 508.6 | 293.7 | 1,018.6 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Purchase of property and equipment | (306.6) | (282.8) | (204.3) |
Investment in finance affiliate | (59.3) | (42.2) | (30.6) |
Distributions from finance affiliate | 30.6 | 60 | 100.4 |
Investment in other affiliates | (26.2) | (23.4) | (6.6) |
Net cash used for investing activities of continuing operations | (324.6) | (303.9) | (150.7) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Borrowings under debt arrangements | 2,987.5 | 2,424.3 | 1,365.5 |
Repayments under debt arrangements | (2,729.8) | (2,073) | (1,611.7) |
Repurchase and retirement of common shares | (505) | (461.6) | (50.3) |
Cash dividends to shareholders | (150) | (153.4) | (152.5) |
Proceeds from stock issuances under employee plans | 34.1 | 156.1 | 33.6 |
Net cash used for financing activities | (363.2) | (107.6) | (415.4) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | (10.2) | (10.6) | 8.7 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (189.4) | (128.4) | 461.2 |
Cash, cash equivalents and restricted cash at beginning of period | 529.1 | 657.5 | 196.3 |
Cash, cash equivalents and restricted cash at end of period | 339.7 | 529.1 | 657.5 |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid on debt borrowings | 71.2 | 44.8 | 67 |
Income taxes paid | 194.4 | 124.4 | 65.5 |
Cash and cash equivalents | 324.5 | 502.3 | 631.7 |
Cash | 0 | 6.9 | 3 |
Other long-term assets | 15.2 | 19.9 | 22.8 |
Total | 339.7 | 529.1 | 657.5 |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 13.2 | 2.3 | 235.6 |
Loss from sale of discontinued operations, net of tax | 142.6 | 0 | 0 |
Goodwill, Impairment Loss | 0 | 0 | 81.1 |
Proceeds from Divestiture of Businesses, Net of Cash Divested | 42.2 | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (319.3) | (288.4) | (141.1) |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | $ (5.3) | $ (15.5) | $ (9.6) |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Organization and Significant Accounting Policies Polaris Inc. (“Polaris” or the “Company”), a Minnesota corporation, and its subsidiaries are engaged in the design, engineering, manufacturing and marketing of powersports vehicles, which include: off-road vehicles (“ORV”), including all-terrain vehicles (“ATV”) and side-by-side vehicles; military and commercial ORVs; snowmobiles; motorcycles; moto-roadsters; quadricycles; boats; and related Parts, Garments and Accessories (“PG&A”), which includes aftermarket accessories and apparel. Polaris products are sold worldwide online and through a network of independent dealers and distributors. The primary markets for the Company’s 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 intercompany 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. 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. The Company used the guidelines to analyze the Company’s relationships and concluded that there were no variable interest entities requiring consolidation by the Company. Reclassifications. Reclassifications of certain prior year segment results and account balances have been made to conform to the current-year presentation. The reclassifications had no impact on the consolidated balance sheets, statements of income, comprehensive income, equity, or cash flows, as previously reported. Refer to Note 16 for additional information. On July 1, 2022, the Company completed the sale of its Transamerican Auto Parts (“TAP”) business. The operating results of the TAP business are reported in loss from discontinued operations, net of tax in the consolidated statements of income for all periods presented. In addition, the related assets and liabilities are reported as assets and liabilities held for sale in the consolidated balance sheets. All amounts and disclosures included in the notes to consolidated financial statements reflect only the Company's continuing operations, unless otherwise noted. Refer to Note 4 for additional information. 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. Actual 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 foreign currency contracts and interest rate 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 foreign currency and interest rate transactions. Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions): Input Level December 31, 2022 December 31, 2021 Assets Non-qualified deferred compensation assets Level 1 $ 39.8 $ 52.4 Foreign exchange contracts, net Level 2 8.4 2.1 Interest rate contracts, net Level 2 5.9 — Liabilities Non-qualified deferred compensation liabilities Level 1 $ (39.8) $ (52.4) Interest rate contracts, net Level 2 — (7.8) Fair value of other financial instruments. The carrying values of the Company’s short-term financial instruments, including cash and cash equivalents, trade receivables and short-term debt, including current maturities of long-term debt, finance lease obligations and notes payable, approximate their fair values. As of December 31, 2022 and December 31, 2021, the fair value of the Company’s long-term debt, finance lease obligations and notes payable was approximately $2,070.3 million and $1,870.0 million, respectively, and was determined primarily using Level 2 inputs, including quoted market prices or discounted cash flows based on quoted market rates for similar types of debt. The carrying value of long-term debt, finance lease obligations and notes payable including current maturities was $2,057.8 million and $1,800.7 million as of December 31, 2022 and December 31, 2021, respectively. The Company measures certain assets and liabilities at fair value on a nonrecurring basis. The Company 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 12 for additional information. Cash equivalents. The Company 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. Restricted cash. The Company classifies amounts of cash that are restricted in terms of their use and withdrawal separately within other long-term assets in the consolidated balance sheets. The Company’s restricted cash is comprised primarily of cash held in trust accounts not available for general use due to contractual restrictions. Allowance for doubtful accounts. The Company’s exposure to credit losses on accounts receivable is limited due to its agreements with certain finance companies. For receivables not serviced through these finance companies, the Company establishes a reserve for doubtful accounts based on historical credit loss experience, the age of the accounts receivables, credit quality of our customers, current and expected economic conditions, and other factors that may affect our ability to collect from customers. 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 or net realizable value with substantially all inventories recorded using the first-in, first-out method. Finished goods include products that are completed and ready for sale or substantially completed as the product has gone through the primary manufacturing and assembly process. Investment in finance affiliate. The caption investment in finance affiliate in the consolidated balance sheets represents the Company’s fifty percent equity interest in Polaris Acceptance. 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. Refer to Note 11 for additional information. Investment in other affiliates. The Company’s 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, the Company assesses the level of influence in determining whether to account for the investment under the cost method or equity method. For equity method investments, the Company’s proportionate share of income or losses is recorded in the consolidated statements of income. The Company 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 11 for additional information. Property and equipment. Property and equipment is stated at historical cost. Depreciation is determined 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 finance leases is included within depreciation expense. Fully-depreciated tooling is eliminated from the accounting records annually. The Company recorded $214.0 million, $193.4 million, and $198.2 million of depreciation expense for the years ended December 31, 2022, 2021, and 2020, respectively. Substantially all of the Company’s property and equipment is located in North America. Goodwill and other intangible assets. Goodwill is tested at least annually for impairment and is tested for impairment more frequently when events or changes in circumstances indicate that the asset might be impaired. The Company completes its annual goodwill impairment test as of the first day of the fourth quarter. The Company may first perform a qualitative assessment to determine whether it is more likely than not that the fair value of each reporting unit is less than its carrying amount. A qualitative assessment requires that the Company considers events or circumstances including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting unit’s net assets, and changes in the Company’s stock price. If, after assessing the totality of events or circumstances, it is determined that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, or if the Company elects to bypass the qualitative test and proceed to a quantitative test, then the quantitative goodwill impairment test is performed. A quantitative test includes comparing the fair value of each reporting unit to the carrying amount of the reporting unit, including goodwill. If the estimated fair value is less than the carrying amount of the reporting unit, an impairment is recognized in an amount equal to the difference, limited to the total amount of goodwill allocated to that reporting unit. Under the quantitative goodwill impairment test, the fair value of each reporting unit is determined using a discounted cash flow analysis and market approach. Determining the fair value of the reporting units requires the use of significant judgment, including discount rates, assumptions in the Company’s long-term business plan about future revenues and expenses, capital expenditures, and changes in working capital, which are dependent on internal forecasts, estimation of long-term growth for each reporting unit, and determination of the discount rate. These plans take into consideration numerous factors including historical experience, anticipated future economic conditions, changes in raw material prices, and growth expectations for the industries and end markets in which the Company participates. For its annual test in 2022, the Company completed a qualitative assessment for all reporting units. The Company’s primary identifiable intangible assets include: dealer/customer relationships, brand/trade names, developed technology, and non-compete agreements. Identifiable intangible assets with finite lives are amortized and those identifiable intangibles with indefinite lives are not amortized. Identifiable intangible assets that are subject to amortization are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Identifiable intangible assets with indefinite lives are tested for impairment annually or more frequently when events or changes in circumstances indicate that the asset might be impaired. The Company’s identifiable intangible assets with indefinite lives include brand/trade names. The impairment test consists of a comparison of the fair value of the brand/trade name with its carrying value. The Company completes its annual impairment test as of the first day of the fourth quarter each year for identifiable intangible assets with indefinite lives. Refer to Note 8 for additional information on goodwill and other intangible assets. Revenue recognition. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or service to a customer. Revenue is measured based on the amount of consideration that the Company expects to be entitled to in exchange for the goods or services transferred. Sales, value add, and other taxes that are collected from a customer concurrent with revenue-producing activities are excluded from revenue. Revenue from goods and services transferred to customers at a point-in-time accounts for the majority of the Company’s revenue. Revenue from products or services transferred over time is discussed in the contract liabilities section. For the majority of wholegood vehicles, boats, and PG&A, the Company transfers control and recognizes a sale when it ships the product from its manufacturing facility, distribution center, or vehicle holding center to its customer. The amount of consideration the Company receives and revenue it recognizes varies with changes in marketing incentives and rebates it offers to its dealers and their customers. Payment terms vary by customer and most of the Company’s sales are financed by the customer under floorplan financing arrangements whereby the Company receives payment within a few days of shipment of the product. When the right of return exists, the Company adjusts the consideration for the estimated effect of returns. The Company estimates expected returns based on historical sales levels, the timing and magnitude of historical sales return levels as a percent of sales, type of product, type of customer, and a projection of this experience into the future. The Company adjusts its estimate of revenue at the earlier of when the most likely amount of consideration it expects to receive changes or when the consideration becomes fixed. Depending on the terms of the arrangement, the Company may also defer the recognition of a portion of the consideration received because it has to satisfy a future obligation. The Company uses an observable price to determine the stand-alone selling price for separate performance obligations. The Company has elected to recognize the cost for freight and shipping when control over vehicles, boats, or PG&A has transferred to the customer as an expense in cost of sales. The Company sells separately-priced service contracts (“ESCs”) that extend mechanical coverages beyond the base limited warranty as well as prepaid maintenance agreements to vehicle owners. Each of these separately priced service contracts range from 12 months to 84 months. The Company typically receives payment at the inception of the contract and recognizes revenue over the term of the agreement in proportion to the costs expected to be incurred in satisfying the obligations under the contract. Sales promotions and incentives. The Company accrues for estimated sales promotion and incentive expenses, which are recognized as a component of sales in measuring the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. 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, planned programs, and historical rates for each product line. The Company records these amounts as a liability in the consolidated balance sheet until they are ultimately paid. Adjustments to sales promotions and incentives accruals are made 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. 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 the Company’s dealers or distributors and, therefore, reduce the amount of sales the Company recognizes. The portion of the invoiced sales price estimated as the holdback is recognized as “dealer holdback” liability on the Company’s consolidated 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. The Company records shipping and handling costs as a component of cost of sales when control has transferred to the customer. Research and development expenses. The Company records research and development expenses in the period in which they are incurred as a component of operating expenses. Advertising expenses. The Company 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, 2022, 2021 and 2020, the Company incurred $87.6 million, $90.8 million and $95.8 million of advertising expenses, respectively. Product warranties. The Company typically provides a limited warranty for its vehicles and boats for a period of six months to ten years, depending on the product. The Company provides longer warranties in certain geographical markets as determined by local regulations and customary practice and may also provide longer warranties related to certain promotional programs. The Company’s standard warranties require the Company, generally through its dealer network, to repair or replace defective products during such warranty periods. 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. The Company records these amounts as a liability in the consolidated balance sheet until they are ultimately paid. Adjustments to the warranty reserve are made 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. The warranty reserve includes the estimated costs related to recalls, which are accrued when probable and estimable. Factors that could have an impact on the warranty reserve include the following: changes in manufacturing quality, shifts in product mix, changes in warranty coverage periods, impacts on product usage (including weather), product recalls and changes in sales volume. The activity in the warranty reserve during the periods presented was as follows (in millions): For the Years Ended December 31, 2022 2021 2020 Balance at beginning of year $ 132.9 $ 138.6 $ 134.0 Reductions to reserve related to divestitures — (2.1) — Additions charged to expense 183.5 130.4 123.7 Warranty claims paid, net (143.5) (134.0) (119.1) Balance at end of year $ 172.9 $ 132.9 $ 138.6 Leases. The Company leases certain manufacturing facilities, retail stores, warehouses, distribution centers, office space, land, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. As most of the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one Share-based employee compensation. The Company accounts for share-based compensation awards, including stock options and other equity-based compensation issued to employees, on a fair value basis. Determining the appropriate fair-value model and calculating 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, and the Monte Carlo model to estimate the fair value of employee performance restricted stock units that include a market condition. These pricing models also require the use of input assumptions, including expected volatility, expected life, expected dividend yield, and expected risk-free rate of return. The Company utilizes historical volatility as the Company 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 the Company’s history of dividend payouts. The amount of compensation cost for share-based awards recognized during a period is based on the portion of the awards that are ultimately expected to vest. The Company estimates 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. If forfeiture adjustments are made, they would affect gross margin and operating expenses. All stock options have time-based vesting conditions. The Company estimates the likelihood and the rate of achievement for performance share-based awards, specifically long-term compensation grants of performance-based restricted stock unit 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 gross profit and operating expenses. Fluctuations in the Company’s stock price can have an effect on reported share-based compensation expenses for liability-based awards. The impact from fluctuations in the Company’s stock price is recognized in the period of the change, and is reflected in gross profit and operating expenses. Refer to Note 5 for additional information. 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. The Company does not use any financial contracts for trading purposes. The Company enters into foreign exchange contracts to manage currency exposures from certain of its purchase commitments denominated in foreign currencies and transfers of funds from its foreign subsidiaries. These contracts meet the criteria for cash flow hedges. Gains and losses on the Canadian dollar and Australian dollar contracts at settlement are recorded in non-operating other (income) expense, net in the consolidated income statements, and gains and losses on the Mexican peso contracts at settlement are recorded in cost of sales in the consolidated statements of income. The contracts are recorded in other current assets or other current liabilities in the consolidated balance sheets. Unrealized gains and losses are recorded as a component of accumulated other comprehensive loss, net. The Company enters into interest rate swaps in order to maintain a balanced risk of fixed and floating interest rates associated with the Company’s debt. These contracts meet the criteria for cash flow hedges. The contracts are recorded in other current assets or other current liabilities in the consolidated balance sheets. Unrealized gains and losses are recorded as a component of Accumulated other comprehensive loss, net. The Company enters into commodity hedging contracts in order to manage fluctuating market prices of certain purchased commodities and raw materials that are integrated into the Company’s end products. Refer to Note 15 for additional information regarding derivative instruments and hedging activities. Foreign currency translation. The functional currency for the Company’s foreign subsidiaries is typically their respective local currencies. The assets and liabilities in the Company’s 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 loss, net in the shareholders’ equity section of the consolidated balance sheets. Revenues and expenses in all of the Company’s 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 (income) expense, net in the consolidated statements of income. New accounting pronouncements. Reference Rate Reform. In March 2020, the Financial Accounting Standards Board (the “FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides practical expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The FASB also issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope in January 2021, which adds implementation guidance to clarify which optional expedients in Topic 848 may be applied to derivative instruments that do not reference LIBOR or a reference rate that is expected to be discontinued, but that are being modified as a result of the discounting transition. The FASB also issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 in December 2022, which deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. The Company adopted ASU 2020-04, ASU 2021-01, and ASU 2022-06. The adoption of the ASUs did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows. There are no other new accounting pronouncements that are expected to have a significant impact on the Company’s consolidated financial statements. |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information In millions December 31, 2022 December 31, 2021 Inventories Raw materials and purchased components $ 843.5 $ 720.2 Service parts, garments and accessories 371.1 276.4 Finished goods 768.2 588.2 Less: reserves (86.7) (74.1) Inventories, net $ 1,896.1 $ 1,510.7 Property and equipment Land, buildings and improvements $ 539.1 $ 501.1 Equipment and tooling 1,645.0 1,598.3 2,184.1 2,099.4 Less: accumulated depreciation (1,165.7) (1,171.7) Property and equipment, net $ 1,018.4 $ 927.7 Accrued expenses Compensation $ 212.3 $ 205.9 Warranties 172.9 132.9 Sales promotions and incentives 127.0 96.9 Dealer holdback 129.7 98.9 Other accrued expenses 254.9 221.9 Accrued expenses $ 896.8 $ 756.5 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition The following tables disaggregate the Company’s revenue by major product type and geography (in millions): For the Year Ended December 31, 2022 Off Road On Road Marine Corporate Total Revenue by product type Wholegoods $ 4,999.9 $ 956.5 $ 989.4 $ — $ 6,945.8 PG&A 1,436.3 206.9 — — 1,643.2 Total revenue $ 6,436.2 $ 1,163.4 $ 989.4 $ — $ 8,589.0 Revenue by geography United States $ 5,233.3 $ 614.2 $ 961.7 $ — $ 6,809.2 Canada 536.0 43.5 27.2 — 606.7 EMEA 421.4 423.2 0.1 — 844.7 APLA 245.5 82.5 0.4 — 328.4 Total revenue $ 6,436.2 $ 1,163.4 $ 989.4 $ — $ 8,589.0 For the Year Ended December 31, 2021 Off Road On Road Marine Corporate Total Revenue by product type Wholegoods $ 4,251.7 $ 847.6 $ 760.2 $ 59.8 $ 5,919.3 PG&A 1,322.9 184.2 — 12.8 1,519.9 Total revenue $ 5,574.6 $ 1,031.8 $ 760.2 $ 72.6 $ 7,439.2 Revenue by geography United States $ 4,422.5 $ 514.3 $ 737.4 $ 68.1 $ 5,742.3 Canada 517.6 33.1 22.6 0.4 573.7 EMEA 402.3 400.2 0.2 0.5 803.2 APLA 232.2 84.2 — 3.6 320.0 Total revenue $ 5,574.6 $ 1,031.8 $ 760.2 $ 72.6 $ 7,439.2 For the Year Ended December 31, 2020 Off Road On Road Marine Corporate Total Revenue by product type Wholegoods $ 3,731.4 $ 669.0 $ 603.4 $ 49.5 $ 5,053.3 PG&A 1,078.6 137.7 — 11.8 1,228.1 Total revenue $ 4,810.0 $ 806.7 $ 603.4 $ 61.3 $ 6,281.4 Revenue by geography United States $ 3,995.2 $ 427.1 $ 592.4 $ 58.8 $ 5,073.5 Canada 332.4 23.6 11.0 0.2 367.2 EMEA 324.5 289.2 — 1.1 614.8 APLA 157.9 66.8 — 1.2 225.9 Total revenue $ 4,810.0 $ 806.7 $ 603.4 $ 61.3 $ 6,281.4 Contract Liabilities Contract liabilities relate to deferred revenue recognized for cash consideration received at contract inception in advance of the Company's performance under the respective contract and generally relate to the sale of separately priced ESCs. The Company finances its self-insured risks related to ESCs. The premiums for ESCs are primarily recognized in income in proportion to the costs expected to be incurred over the contract period. Warranty costs are recognized as incurred. The Company expects to recognize approximately $35.5 million of the unearned amount over the next 12 months and $75.6 million thereafter. The activity in the deferred revenue reserve during the periods presented was as follows (in millions): For the Years Ended December 31, 2022 2021 2020 Balance at beginning of year $ 108.3 $ 89.1 $ 63.1 New contracts sold 49.1 55.0 49.0 Revenue recognized on existing contracts (46.3) (35.8) (23.0) Balance at end of year $ 111.1 $ 108.3 $ 89.1 The unamortized ESC premiums recorded in other current liabilities totaled $35.5 million and $34.7 million as of December 31, 2022 and 2021, respectively, while the amount recorded in other long-term liabilities totaled $75.6 million and $73.6 million as of December 31, 2022 and 2021, respectively. |
Divestitures and Discontinued O
Divestitures and Discontinued Operations | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Divestitures and Discontinued Operations | Divestitures and Discontinued Operations 2021 Divestitures. In an effort to more strategically allocate the Company’s resources, the Company sold its Global Electric Motorcar (“GEM”) and Taylor-Dunn businesses on December 31, 2021. The sale resulted in a loss of $36.8 million. As a result of this divestiture, the Company eliminated its Global Adjacent Markets segment on January 1, 2022. All segment results were reclassified for comparability. The 2021 and 2020 financial results of these businesses are reflected in Corporate. 2022 Divestitures. On July 1, 2022, the Company completed the sale of its Transamerican Auto Parts (“TAP”) business , an aftermarket parts business, for a sales pr ice, net of post-closing purchase price adjustments, of $42.2 million. TAP is a vertically integrated manufacturer, distributor, retailer, and installer of off-road Jeep and truck parts and accessories . The transaction included TAP’s full portfolio of operations, including all brands, product lines, manufacturing operations, distribution facilities, more than 100 4 Wheel Parts retail locations, and more than 1,700 TAP employees. The results of TAP have been presented as discontinued operations and the related assets and liabilities have been classified as held for sale for all periods presented. For the year ended December 31, 2022, a loss on sale of $187.6 million was recorded which resulted in a $45.0 million income tax benefit. TAP was historically included with in the Company’s Aftermarket segment; however, as a result of the divestiture, the Company began management of its portfolio of businesses under a new basis as of June 30, 2022. The Aftermarket segment was eliminated and the results of the Company’s remaining aftermarket businesses historically included within the Aftermarket segment were reclassified to the Off Road and On Road segments. The comparative 2021 and 2020 segment results were reclassified for comparability. Results of discontinued operations were as follows (in millions): For the Years Ended December 31, 2022 2021 2020 Sales $ 349.3 $ 759.0 $ 746.5 Cost of sales 262.9 567.3 572.1 Other costs and expenses 100.9 194.7 483.4 Loss from discontinued operations before income taxes (14.5) (3.0) (309.0) Income tax benefit (1.3) (0.7) (73.4) Loss from discontinued operations, net of tax (13.2) (2.3) (235.6) Loss from sale of discontinued operations 187.6 — — Provision for income taxes (45.0) — — Loss from sale of discontinued operations, net of tax 142.6 — — Net loss from discontinued operations $ (155.8) $ (2.3) $ (235.6) The carrying amounts of major classes of assets and liabilities of discontinued operations were as follows (in millions): December 31, 2021 Cash $ 6.9 Trade receivables 12.6 Inventories, net 134.1 Other current assets 9.6 Current assets held for sale $ 163.2 Property and equipment, net $ 47.7 Intangible assets, net 102.3 Operating lease assets 74.8 Other long-term assets 1.2 Long-term assets held for sale $ 226.0 Accounts payable $ 21.5 Accrued expenses and other current liabilities 66.5 Current operating lease liabilities 19.8 Current liabilities held for sale $ 107.8 Long-term operating lease liabilities $ 57.2 Other long-term liabilities 8.9 Long-term liabilities held for sale $ 66.1 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Share-based plans. The Company grants long-term equity-based incentives and awards for the benefit of its employees and directors under the shareholder approved Polaris Inc. 2007 Omnibus Incentive Plan (as amended and restated as of April 30, 2020) (the “Omnibus Plan”). A maximum of 27,775,000 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 one Under the Polaris Inc. Deferred Compensation Plan for Directors (“Director Plan”) and the Omnibus 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. Alternatively, these common stock equivalents may be diversified into other investments until board service ends, pursuant to the terms of the Director Plan. A maximum of 500,000 shares of common stock has been authorized under the Director Plan, of which 73,000 common stock equivalents have been earned and 427,000 shares have been issued to retired directors as of December 31, 2022. Authorized shares under the Director Plan were exhausted in 2017. Since 2017, the Company has granted a total of 67,000 common stock equivalents to its non-employee directors under the Omnibus Plan (with grants of 11,000, 8,000 and 13,000 units in 2022, 2021 and 2020, respectively). As of December 31, 2022 and 2021, the Company’s liability under the plans for the common stock equivalents totaled $9.2 million and $8.8 million, respectively. The Company maintains a long-term incentive program under which awards are issued for certain employees. Long-term incentive program awards are granted in restricted stock units and stock options and are accounted for as equity awards. Share-based compensation expense. The amount of compensation cost for share-based awards recognized during a period is based on the portion of the awards that are ultimately expected to vest. Total share-based compensation expenses were as follows (in millions): For the Years Ended December 31, 2022 2021 2020 Option awards $ 11.4 $ 9.8 $ 13.8 Other share-based awards 39.2 40.9 40.9 Total share-based compensation before tax 50.6 50.7 54.7 Tax benefit 12.0 12.1 13.1 Total share-based compensation expense included in net income $ 38.6 $ 38.6 $ 41.6 These share-based compensation expenses are reflected in cost of sales and operating expenses in the consolidated statements of income. As of December 31, 2022, there was $52.4 million 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 1.2 years. Included in unrecognized share-based compensation expense is approximately $5.1 million related to stock options and $47.3 million for restricted stock. In addition to the above share-based compensation expenses, the Company sponsors a qualified non-leveraged employee stock ownership plan (ESOP). Shares allocated to eligible participants’ accounts vest at various percentage rates based on years of service and require no cash payments from the recipient. See Note 6 for additional information. General stock option and restricted stock information. The following summarizes stock option activity and the weighted average exercise price for the Omnibus Plan for the year ended December 31, 2022: Omnibus Plan Options Outstanding Weighted Balance as of December 31, 2021 3,279,701 $ 104.29 Granted 346,535 113.11 Exercised (351,332) 87.36 Forfeited/Expired (151,161) 125.59 Balance as of December 31, 2022 3,123,743 $ 106.16 Options exercisable as of December 31, 2022 2,504,752 $ 104.91 The weighted average remaining contractual life of options outstanding and of options outstanding and exercisable as of December 31, 2022 was 5.2 years and 4.4 years, respectively. Substantially all unvested outstanding options are expected to vest. The following assumptions were used to estimate the weighted average fair value of options granted of $37.41, $36.77 and $21.76 during the years ended December 31, 2022, 2021 and 2020, respectively: For the Years Ended December 31, 2022 2021 2020 Weighted-average volatility 43% 43% 34% Expected dividend yield 2.2% 2.1% 2.6% Expected term (in years) 4.9 4.7 4.5 Weighted average risk free interest rate 1.7% 0.5% 1.4% The total intrinsic value of options exercised during the year ended December 31, 2022 was $9.9 million. The total intrinsic value of options outstanding and of options outstanding and exercisable as of December 31, 2022, was $35.7 million and $33.6 million, 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 grant date fair value for performance awards with a total shareholder return (TSR) market condition were estimated using a Monte Carlo simulation model utilizing the following weighted-average assumptions: For the Years Ended December 31, 2022 2021 2020 Weighted-average volatility 48% 49% 35% Expected dividend yield 2.2% 2.1% 2.6% Expected term (in years) 3.0 3.0 3.0 Weighted average risk free interest rate 1.5% 0.2% 1.4% The Company used its historical stock price as the basis for the Company’s volatility assumption. The assumed risk-free interest rates were based on U.S. Treasury rates in effect at the time of grant. The expected term was based on the vesting period. The weighted-average fair value used to record compensation expense for TSR performance share awards granted during 2022, 2021, and 2020 was $146.08, $165.54, and $98.09 per award, respectively. The following table summarizes restricted stock activity for the year ended December 31, 2022: Shares Weighted Balance as of December 31, 2021 1,063,753 $ 101.72 Granted 347,083 119.42 Vested (443,170) 91.05 Forfeited/Cancelled (101,648) 109.24 Balance as of December 31, 2022 866,018 $ 113.40 Expected to vest as of December 31, 2022 904,410 $ 112.52 The shares granted above include 66,184 performance restricted stock unit awards. These performance grants are the number of shares that would be earned at the target level of performance. The number of shares of Polaris common stock that could actually be delivered at the end of the three-year performance period for performance restricted stock units may be anywhere from 0% to 200% of target for each performance share, depending on the performance of the Company during such performance period. The total intrinsic value of restricted stock expected to vest as of December 31, 2022 was $91.3 million. 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, 2022, 2021 and 2020 were $119.42, $122.08 and $92.23, respectively. |
Employee Savings Plans
Employee Savings Plans | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Employee Savings Plans [Abstract] | |
Employee Savings Plans | Employee Savings Plans Employee Stock Ownership Plan (ESOP). The Company sponsors a qualified non-leveraged ESOP under which a maximum of 7,700,000 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 Defined contribution plans. The Company sponsors a 401(k) defined contribution retirement plan covering substantially all 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 the defined contribution retirement plan was $26.4 million, $24.9 million, and $22.5 million, in 2022, 2021 and 2020, respectively. Supplemental Executive Retirement Plan (SERP). The Company sponsors a SERP that provides executive officers of the Company an alternative to defer portions of their salary, cash incentive compensation, and Company 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 in the consolidated balance sheets and the SERP liability is included in other long-term liabilities in the consolidated balance sheets. The asset and liability balances are both $39.8 million and $52.4 million as of December 31, 2022, and 2021, respectively. Executive officers and directors of the Company have the opportunity to defer certain restricted stock units. These restricted stock units are redeemable in Polaris common stock or in cash. After a holding period, the executive officer has the option to diversify the vested award into other funds available under the SERP. If the award is diversified, it must be redeemed in cash. Awards probable of vesting, for which the executive has not yet made an election to defer, and awards that have been deferred but have not yet vested and are probable of vesting are reported as deferred compensation in the temporary equity section of the consolidated balance sheets, as these awards have redemption features that are not yet solely within the control of the Company. 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. As of December 31, 2022, 124,505 shares are recorded at a fair value of $12.6 million in temporary equity, which includes $12.5 million of compensation cost and $0.1 million of cumulative fair value adjustment recorded through retained earnings. |
Financing Agreement
Financing Agreement | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Financing Agreement | Financing Agreement The carrying value of debt, finance lease obligations, and notes payable and the average related interest rates were as follows (in millions): Average interest rate as of December 31, 2022 Maturity December 31, 2022 December 31, 2021 Revolving loan facility 5.10% June 2026 $ 312.9 $ — Term loan facility 5.67% June 2026 828.0 876.0 Incremental term loan 5.67% December 2023 500.0 500.0 Senior notes—fixed rate 4.23% July 2028 350.0 350.0 Finance lease obligations 5.21% Various through 2029 11.4 13.5 Notes payable and other 4.25% Various through 2030 61.4 68.3 Debt issuance costs (5.9) (7.1) Total debt, finance lease obligations, and notes payable $ 2,057.8 $ 1,800.7 Less: current maturities 553.6 553.3 Total long-term debt, finance lease obligations, and notes payable $ 1,504.2 $ 1,247.4 In December 2010, the Company entered an unsecured Master Note Purchase Agreement, which has been amended and supplemented, under which it has issued senior notes. In July 2018, the Company issued $350 million of unsecured senior notes due July 2028 which remain outstanding. The Company maintains an unsecured credit facility which consists of a term loan facility (the “Term Loan Facility”) and a revolving loan facility (the “Revolving Loan Facility”). In July 2018, the Company amended its unsecured credit facility to increase its Term Loan Facility to $1,180 million, of which $828.0 million was outstanding as of December 31, 2022. In June 2021, the Company further amended its unsecured credit facility to increase its Revolving Loan Facility to $1.0 billion, of which $312.9 million was outstanding as of December 31, 2022, and extend the maturity date to June 2026. In December 2022, the Company further amended its unsecured credit facility to change its benchmark base interest rate. Interest is charged at rates based on adjusted Term SOFR. In December 2021, the Company amended the credit facility to provide an unsecured incremental 364-day term loan (the “Incremental Term Loan”) in the amount of $500 million, which was fully drawn on closing. In December 2022, the Company further amended its unsecured credit facility to extend the maturity date of the Incremental Term Loan to December 15, 2023. There are no required principal payments prior to the maturity date. In addition to the payment of the $500 million Incremental Term Loan, the Company is required to make principal payments under the Term Loan Facility totaling $45 million over the next 12 months. These payments are classified as current maturities in the consolidated balance sheets. The credit agreements governing the facility and the Master Note Purchase Agreement contain covenants that require the Company to maintain certain financial ratios, including minimum interest coverage and maximum leverage ratios. The agreements require the Company to maintain an interest coverage ratio of not less than 3.00 to 1.00 and a leverage ratio of not more than 3.50 to 1.00 on a rolling four quarter basis. The Company was in compliance with all such covenants as of December 31, 2022. Debt issuance costs are recognized as a reduction in the carrying value of the related long-term debt in the consolidated balance sheets and are being amortized to interest expense in the consolidated statements of income over the expected remaining terms of the related debt. On July 2, 2018, pursuant to the Agreement and Plan of Merger dated May 29, 2018, the Company completed the acquisition of Boat Holdings, LLC, a privately held Delaware limited liability company, headquartered in Elkhart, Indiana which manufactures boats (“Boat Holdings”). As a component of the Boat Holdings merger agreement, the Company has committed to make a series of deferred payments to the former owners following the closing date of the merger through July 2030. The original discounted payable was for $76.7 million, of which $55.3 million was outstanding as of December 31, 2022. The outstanding balance is included in long-term debt and current portion of long-term debt in the consolidated balance sheets. The following summarizes activity under the Company’s credit arrangements (in millions): 2022 2021 2020 Total borrowings as of December 31 $ 1,990.9 $ 1,726.0 $ 1,365.0 Average outstanding borrowings during year $ 2,074.9 $ 1,500.4 $ 1,879.7 Maximum outstanding borrowings during year $ 2,300.0 $ 1,903.0 $ 2,370.6 Weighted-average interest rate as of December 31 5.33% 1.77% 2.30% As of December 31, 2022, the Company had open letters of credit totaling $38.5 million. The amounts are primarily related to inventory purchases and are reduced as the purchases are received. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets, net of accumulated amortization, as of December 31, 2022 and 2021 are as follows (in millions): 2022 2021 Goodwill $ 386.2 $ 391.3 Other intangible assets, net 524.4 543.9 Total goodwill and other intangible assets, net $ 910.6 $ 935.2 There were no material additions to goodwill and other intangible assets in 2022 and 2021. The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2022 and 2021 were as follows (in millions): Off Road On Road Marine Total Balance as of December 31, 2020 $ 111.6 $ 58.6 $ 227.1 $ 397.3 Currency translation effect on foreign goodwill balances 0.1 (6.1) — (6.0) Balance as of December 31, 2021 $ 111.7 $ 52.5 $ 227.1 $ 391.3 Currency translation effect on foreign goodwill balances (1.0) (4.1) — (5.1) Balance as of December 31, 2022 $ 110.7 $ 48.4 $ 227.1 $ 386.2 During 2020, the Company recorded impairment charges of $270.3 million related to goodwill of the Company’s Aftermarket reporting segment. As part of the Company’s segment reorganization in the second quarter of 2022, the Aftermarket segment was eliminated and historical goodwill impairments of $60.8 million and $20.3 million were allocated to the Off Road and On Road segments, respectively, on a relative fair value basis. The goodwill amounts above are shown net of these impairment charges. For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2022 and 2021 are as follows (in millions): 2022 2021 Gross Accumulated Gross Accumulated Other intangible assets, beginning $ 618.7 $ (74.8) $ 645.7 $ (72.6) Intangible assets disposed of during the period (13.4) 13.4 (25.8) 20.7 Amortization expense — (18.8) — (22.9) Currency translation effect on foreign balances (0.9) 0.2 (1.2) — Other intangible assets, ending $ 604.4 $ (80.0) $ 618.7 $ (74.8) The components of other intangible assets were as follows (in millions): December 31, 2022 Weighted-average useful life (years) Gross Carrying Accumulated Net Dealer/customer related 19 341.7 (80.0) 261.7 Total amortizable 19 341.7 (80.0) 261.7 Non-amortizable—brand/trade names 262.7 — 262.7 Total other intangible assets, net $ 604.4 $ (80.0) $ 524.4 December 31, 2021 Weighted-average useful life (years) Gross Carrying Accumulated Net Non-compete agreements 4 $ 2.6 $ (2.3) $ 0.3 Dealer/customer related 19 349.7 (69.7) 280.0 Developed technology 7 2.9 (2.8) 0.1 Total amortizable 19 355.2 (74.8) 280.4 Non-amortizable—brand/trade names 263.5 — 263.5 Total other intangible assets, net $ 618.7 $ (74.8) $ 543.9 Amortization expense for intangible assets for the year ended December 31, 2022, 2021, and 2020 was $18.8 million, $22.9 million, and $24.4 million, respectively. Estimated future amortization expense for identifiable intangible assets during the next five years is as follows (in millions): 2023 2024 2025 2026 2027 Estimated amortization expense $ 17.7 $ 17.7 $ 17.7 $ 17.7 $ 17.7 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 impairments of intangible assets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income from continuing operations before income taxes consisted of the following (in millions): For the Years Ended December 31, 2022 2021 2020 United States $ 608.4 $ 495.4 $ 382.0 Foreign 153.0 133.3 68.4 Income from continuing operations before income taxes $ 761.4 $ 628.7 $ 450.4 The provision for income taxes consisted of the following (in millions): For the Years Ended December 31, 2022 2021 2020 Current: Federal $ 145.4 $ 74.1 $ 119.1 State 25.9 17.0 24.3 Foreign 41.5 29.0 26.8 Deferred (54.8) 12.0 (80.3) Total provision for income taxes $ 158.0 $ 132.1 $ 89.9 Reconciliations of the federal statutory income tax rate to the Company’s effective tax rate were as follows: For the Years Ended December 31, 2022 2021 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 1.7 2.0 2.0 Domestic manufacturing deduction — — (0.8) Research and development tax credit (1.8) (3.4) (3.9) Stock based compensation (0.3) (0.5) (0.1) Valuation allowance — — 0.5 Foreign tax rate differential 0.9 0.9 1.8 Foreign-derived intangible income (1.3) — — Other permanent differences 0.5 1.0 (0.5) Effective income tax rate for continuing operations 20.7 % 21.0 % 20.0 % Undistributed earnings relating to certain non-U.S. subsidiaries of approximately $453.4 million and $338.0 million as of December 31, 2022 and 2021, respectively, are considered to be permanently reinvested. While these earnings would no longer be subject to incremental U.S. tax, if the Company were to actually distribute these earnings, they could be subject to additional foreign income taxes and/or withholding taxes payable to non-U.S. countries. Determination of the unrecognized deferred foreign income tax liability related to these undistributed earnings is not practicable due to the complexities associated with this hypothetical calculation. The Company 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 millions): As of December 31, 2022 2021 Deferred income taxes: Inventories $ 87.2 $ 73.6 Accrued expenses and other 125.5 105.0 Cost in excess of net assets of businesses acquired (44.1) 24.5 Capitalized research expenditures 83.3 — Property and equipment (93.4) (101.2) Operating lease assets (29.2) (40.1) Operating lease liabilities 29.2 40.5 Employee compensation and benefits 42.1 49.3 Net operating loss and other loss carryforwards 21.9 22.8 Valuation allowance (16.6) (17.0) Total net deferred income tax asset $ 205.9 $ 157.4 As of December 31, 2022, the Company had available unused international and acquired federal net operating loss carryforwards of $54.6 million. The net operating loss carryforwards will expire at various dates from 2024 to 2030, with certain jurisdictions having indefinite carryforward terms. The Company classified liabilities related to unrecognized tax benefits as long-term income taxes payable in the consolidated balance sheets. The Company recognizes potential interest and penalties related to income tax positions as a component of the provision for income taxes in the consolidated statements of income. Reserves related to potential interest are recorded as a component of long-term income taxes payable. The federal benefit of state taxes and interest related to the reserves is recorded as a component of deferred taxes. The entire balance of unrecognized tax benefits as of December 31, 2022, 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 2017 through 2022 remain open to examination by certain tax jurisdictions to which the Company is subject. Reconciliations of the beginning and ending unrecognized tax benefits were as follows (in millions): For the Years Ended December 31, 2022 2021 Balance as of January 1, $ 12.4 $ 13.2 Gross increases for tax positions of prior years — 0.4 Gross increases for tax positions of current year 2.4 2.7 Decreases due to settlements and other prior year tax positions (0.6) (1.7) Decreases for lapse of statute of limitations (3.3) (2.2) Balance as of December 31, 10.9 12.4 Reserves related to potential interest and penalties as of December 31, 0.8 0.9 Unrecognized tax benefits as of December 31, $ 11.7 $ 13.3 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Shareholders Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Stock repurchase program. The Company has made the following share repurchases (in millions): For the Years Ended December 31, 2022 2021 2020 Total number of shares repurchased and retired 4.4 3.8 0.6 Total investment $ 505.0 $ 461.6 $ 50.3 As of December 31, 2022, the Polaris Board of Directors has authorized the Company to repurchase up to an additional $349.1 million of the Company’s common stock. The repurchase of any shares will be dependent on management’s assessment of market conditions. Stock purchase plan. The Company maintains an employee stock purchase plan (“Purchase Plan”). A total of 3.0 million 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, 2022, approximately 1.6 million shares had been purchased under the Purchase Plan. Dividends. Quarterly and total year cash dividends declared per common share for the years ended December 31, 2022, 2021, and 2020 were as follows: For the Years Ended December 31, 2022 2021 2020 Quarterly dividend declared and paid per common share $ 0.64 $ 0.63 $ 0.62 Total dividends declared and paid per common share $ 2.56 $ 2.52 $ 2.48 On February 2, 2023, the Polaris Board of Directors declared a regular cash dividend of $0.65 per share payable on March 15, 2023 to holders of record of such shares at the close of business on March 1, 2023. Net income per share. Basic net income per share was 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”) and the ESOP and deferred stock units under the 2007 Omnibus Incentive Plan (“Omnibus Plan”). Diluted net income per share was computed under the treasury stock method and was calculated to compute the dilutive effect of outstanding stock options and certain share-based awards issued under the Omnibus Plan. Reconciliations of these amounts are as follows (in millions): For the Years Ended December 31, 2022 2021 2020 Weighted average number of common shares outstanding 58.9 61.0 61.5 Director Plan and deferred stock units 0.2 0.2 0.2 ESOP 0.2 0.1 0.2 Common shares outstanding—basic 59.3 61.3 61.9 Dilutive effect of restricted stock awards 0.4 0.7 0.5 Dilutive effect of stock option awards 0.4 0.7 0.2 Common and potential common shares outstanding—diluted 60.1 62.7 62.6 During 2022, 2021 and 2020, the number of options that were not included in the computation of diluted net income per share because the option exercise price was greater than the market price, and therefore, the effect would have been anti-dilutive, was 1.6 million, 0.9 million and 4.4 million, respectively. Accumulated other comprehensive loss. Changes in the accumulated other comprehensive loss balance were as follows (in millions): Foreign Currency Translation Cash Flow Hedging Derivatives Retirement Plan Activity Accumulated Other Comprehensive Loss Balance as of December 31, 2021 $ (69.5) $ (4.4) $ (3.5) $ (77.4) Reclassification to the statement of income — (15.0) 0.3 (14.7) Change in fair value (25.3) 29.9 — 4.6 Balance as of December 31, 2022 $ (94.8) $ 10.5 $ (3.2) $ (87.5) The table below provides the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the income statement for cash flow derivatives designated as hedging instruments and retirement plan activity for the years ended December 31, 2022 and 2021 (in millions): Derivatives in Cash Flow Hedging Relationships and Other Activity Location of Gain (Loss) Reclassified from Accumulated OCI into Income For the Years Ended December 31, 2022 2021 Foreign currency contracts Other (income) expense, net $ 12.2 $ (0.3) Foreign currency contracts Cost of sales 2.1 0.5 Interest rate contracts Interest expense 1.0 (8.1) Other activity Cost of sales / operating expenses (0.6) (0.3) Total $ 14.7 $ (8.2) The net amount of the existing gains or losses as of December 31, 2022 that are expected to be reclassified into the statements of income within the next 12 months is not expected to be material. See Note 15 for additional information regarding hedging activities. |
Financial Services Arrangements
Financial Services Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Financial Services Arrangements [Abstract] | |
Financial Services Arrangements | Financial Services Arrangements 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 ORVs, snowmobiles, 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 may sell 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 $93.1 million as of December 31, 2022 is accounted for under the equity method and is recorded in investment in finance affiliate in the consolidated balance sheets. As of December 31, 2022, the outstanding amount of net receivables financed for dealers under this arrangement was $1,314.2 million, all of which was included in the Polaris Acceptance portfolio. 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 2022, the potential 15 percent aggregate repurchase obligation was approximately $69.2 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, 2022 2021 2020 Revenues $ 49.7 $ 21.9 $ 44.7 Interest and operating expenses 19.5 6.6 7.6 Net income $ 30.2 $ 15.3 $ 37.1 As of December 31, 2022 2021 Finance receivables, net $ 1,314.2 $ 470.7 Other assets 20.9 29.1 Total assets $ 1,335.1 $ 499.8 Notes payable $ 1,076.0 $ 366.9 Other liabilities 73.0 34.4 Partners’ capital 186.1 98.5 Total liabilities and partners’ capital $ 1,335.1 $ 499.8 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, 2022, the potential aggregate repurchase obligation was approximately $322.5 million. The Company has other financing arrangements related to its foreign subsidiaries in which it has agreed to repurchase repossessed products. For calendar year 2022, 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, 2022 was approximately $1,893.9 million. 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. |
Investment in Other Affiliates
Investment in Other Affiliates | 12 Months Ended |
Dec. 31, 2022 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investment in Other Affiliates | Investment in Other Affiliates The Company has certain strategic investments in nonmarketable securities of other companies. The Company had $50.3 million and $23.0 million of such investments as of December 31, 2022 and 2021, respectively. These investments are recorded as a component of other long-term assets in the consolidated balance sheets.The Company impairs an investment and recognize a loss if and when events or circumstances indicate there is impairment in the investment that is other-than-temporary. The Company evaluates investments in nonmarketable securities for impairment utilizing level 3 fair value inputs. The Company recorded a $7.7 million impairment associated with a strategic investment during 2021. The impairment was recorded within other (income) expense, net in the consolidated statements of income. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases Information on the Company’s leases is summarized as follows (in millions): As of December 31, Classification 2022 2021 Assets Operating lease assets Operating lease assets $ 111.0 $ 90.5 Finance lease assets Property and equipment, net (1) 7.4 9.3 Total leased assets $ 118.4 $ 99.8 Liabilities Current Operating lease liabilities Current operating lease liabilities $ 24.1 $ 19.4 Finance lease liabilities Current portion of debt, finance lease obligations and notes payable 1.5 1.4 Long-term Operating lease liabilities Long-term operating lease liabilities 87.0 71.3 Finance lease liabilities Finance lease obligations 9.9 12.1 Total lease liabilities $ 122.5 $ 104.2 (1) Finance lease assets are recorded net of accumulated amortization of $10.4 million and $10.0 million as of December 31, 2022 and 2021, respectively. For the Year Ended December 31, Lease Cost Classification 2022 2021 Operating lease cost (1) Operating expenses and cost of sales $ 40.0 $ 33.8 Finance lease cost Amortization of leased assets Operating expenses and cost of sales 1.1 1.3 Interest on lease liabilities Interest expense 0.7 0.7 Sublease income Other (income) expense, net — (0.6) Total lease cost $ 41.8 $ 35.2 (1) Includes short-term leases and variable lease costs, which are immaterial. Maturity of Lease Liabilities Operating Leases (1) Finance Leases Total 2023 $ 26.5 $ 2.0 $ 28.5 2024 21.3 2.0 23.3 2025 17.1 2.0 19.1 2026 14.7 2.0 16.7 2027 10.5 2.1 12.6 Thereafter 30.1 3.4 33.5 Total lease payments $ 120.2 $ 13.5 $ 133.7 Less: interest 9.1 2.1 Present value of lease payments $ 111.1 $ 11.4 (1) Operating lease payments exclude $8.3 million of legally binding minimum lease payments for leases signed but not yet commenced. There were no options to extend lease terms that were reasonably certain of being exercised as of December 31, 2022. As of December 31, Lease Term and Discount Rate 2022 2021 Weighted-average remaining lease term (years) Operating leases 6.26 3.56 Finance leases 6.54 7.49 Weighted-average discount rate Operating leases 2.45 % 1.15 % Finance leases 5.21 % 5.17 % For the Year Ended December 31, Other Information 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 40.4 $ 33.8 Operating cash flows from finance leases 0.6 0.8 Financing cash flows from finance leases 1.4 1.5 Leased assets obtained in exchange for new operating lease liabilities 52.8 82.0 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Product liability. The Company is subject to product liability claims in the normal course of business. In 2012, the Company began purchasing excess insurance coverage for product liability claims. The Company self-insures product liability claims before the policy date and up to the purchased 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 estimable. The Company utilizes historical trends and actuarial analysis, along with an analysis of current claims, to assist in determining the appropriate loss reserve levels. As of December 31, 2022 and 2021, the Company had an accrual of $107.5 million and $70.3 million, respectively, for the probable payment of pending claims related to product liability litigation associated with the Company’s products. This accrual is included as a component of other accrued expenses in the consolidated balance sheets. Litigation. The Company is a defendant in lawsuits and subject to other claims arising in the normal course of business, including matters related to intellectual property, commercial matters, employment, and product liability claims. In addition, as of December 31, 2022, the Company is party to putative class actions pending against the Company in the United States which are described in more detail in Part I, Item 3 – Legal Proceedings. The Company is unable to provide an evaluation of the likelihood that a loss will be incurred or an estimate of the range of possible loss on the putative class actions. In the opinion of management, it is presently unlikely that any legal proceedings pending against or involving the Company will have a material adverse effect on the Company’s financial position, results of operations, or cash flows. However, in many of these matters, it is inherently difficult to determine whether a loss is probable or reasonably possible or to estimate the size or range of the possible loss given the variety and potential outcomes of actual and potential claims, the uncertainty of future rulings, the behavior or incentives of adverse parties, and other factors outside the control of the Company. Accordingly, the Company’s loss reserve may change from time to time, and actual losses could exceed the amounts accrued by an amount that could be material to the Company’s consolidated financial position, results of operations, or cash flows in any particular reporting period. Regulatory. In the normal course of business, the Company’s 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, penalties or other costs. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
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. 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 maintain a balanced risk of fixed and floating interest rates associated with the Company’s debt. 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. The decision of whether and when to execute derivative instruments, along with the duration of the instrument, may 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. The Company does not use any financial contracts for trading purposes. The Company’s open foreign currency contracts, with maturities through December 2023, met the criteria for cash flow hedges. As of December 31, 2022 and 2021, the Company had the following open foreign currency contracts (in millions): December 31, 2022 December 31, 2021 Foreign Currency Notional Amounts Net Unrealized Notional Amounts Net Unrealized Australian Dollar $ 13.7 $ 0.2 $ 20.3 $ 0.4 Canadian Dollar 93.3 2.5 121.1 0.6 Mexican Peso 47.0 5.7 87.9 1.1 Total $ 154.0 $ 8.4 $ 229.3 $ 2.1 The Company enters into interest rate swap transactions to hedge the variable interest rate payments for the Term Loan Facility. In connection with these transactions, the Company pays interest based upon a fixed rate and receives variable rate interest payments based on adjusted Term SOFR. As of December 31, 2022 and 2021, the Company had outstanding interest rate swaps with notional amounts of $550.0 million. These contracts, with maturities through February 2026, met the criteria for cash flow hedges. As of December 31, 2022 and 2021, the net unrealized gain (loss) associated with these swaps was $5.9 million and $(7.8) million, respectively. The table below summarizes the carrying values of derivative instruments as of December 31, 2022 and 2021 (in millions): Carrying Values of Derivative Instruments as of December 31, 2022 Fair Value— Fair Value— Derivative Net Derivatives designated as hedging instruments Foreign exchange contracts $ 8.4 $ — $ 8.4 Interest rate contracts 5.9 — 5.9 Total derivatives designated as hedging instruments $ 14.3 $ — $ 14.3 Carrying Values of Derivative Instruments as of December 31, 2021 Fair Value— Fair Value— Derivative Net Derivatives designated as hedging instruments Foreign exchange contracts $ 2.4 $ (0.3) $ 2.1 Interest rate contracts — (7.8) (7.8) Total derivatives designated as hedging instruments $ 2.4 $ (8.1) $ (5.7) Assets are included in prepaid expenses and other and liabilities are included in accrued expenses in the consolidated balance sheets. Assets and liabilities are offset in the consolidated balance sheet if the right of offset exists. The unrealized gains or losses, after tax, are recorded as a component of accumulated other comprehensive loss in shareholders’ equity. Gains and losses on derivative instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized currently in the consolidated statements of income. The amount of gains (losses), net of tax, related to the effective portion of derivative instruments designated as cash flow hedges included in other comprehensive loss for the years ended December 31, 2022 and 2021 were $14.9 million and $11.1 million, respectively. See Note 10 for additional information about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the statements of income for derivative instruments designated as hedging instruments. The ineffective portion of foreign currency contracts was not material for the years ended December 31, 2022 and 2021. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting On January 1, 2022, the Company began management of its portfolio of businesses under a new basis as a result of the divestiture of the GEM and Taylor-Dunn businesses. As a such, the Global Adjacent Markets segment was eliminated and the results of the Company’s remaining businesses historically included within the Global Adjacent Markets segment were reclassified to the Off Road and On Road segments. All historical segment results were reclassified for comparability, including the divested businesses which are included in Corporate. On June 30, 2022, the Company again began management of its portfolio of businesses under a new basis as a result of the divestiture of TAP. As such, the Aftermarket segment was eliminated and the results of the Company’s remaining aftermarket businesses historically included within the Aftermarket segment were reclassified to the Off Road and On Road segments. All historical segment results were reclassified for comparability. The Company’s reportable segments are based on the Company’s method of internal reporting and are comprised of various product offerings that serve multiple end markets. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. The internal reporting of these operating segments is defined based, in part, on the reporting and review process used by the Company’s Chief Executive Officer. The Company has three operating segments: 1) Off Road, 2) On Road, and 3) Marine which are all reportable segments. The Corporate amounts include revenues and costs of businesses that were divested in 2021, as well as costs that are not allocated to segments, including certain unallocated manufacturing costs. Businesses that are presented as discontinued operations are excluded from the table below. Segment sales and gross profit data is summarized as follows (in millions): For the Years Ended December 31, 2022 2021 2020 Sales Off Road $ 6,436.2 $ 5,574.6 $ 4,810.0 On Road 1,163.4 1,031.8 806.7 Marine 989.4 760.2 603.4 Corporate — 72.6 61.3 Total sales $ 8,589.0 $ 7,439.2 $ 6,281.4 Gross profit Off Road 1,523.4 1,329.8 1,302.0 On Road 206.3 160.7 95.5 Marine 222.5 170.6 116.4 Corporate 7.3 89.8 21.8 Total gross profit $ 1,959.5 $ 1,750.9 $ 1,535.7 |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Reclassifications | Basis of presentation. The accompanying consolidated financial statements include the accounts of Polaris and its wholly-owned subsidiaries. All intercompany 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. 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. The Company used the guidelines to analyze the Company’s relationships and concluded that there were no variable interest entities requiring consolidation by the Company. Reclassifications. Reclassifications of certain prior year segment results and account balances have been made to conform to the current-year presentation. The reclassifications had no impact on the consolidated balance sheets, statements of income, comprehensive income, equity, or cash flows, as previously reported. Refer to Note 16 for additional information. On July 1, 2022, the Company completed the sale of its Transamerican Auto Parts (“TAP”) business. The operating results of the TAP business are reported in loss from discontinued operations, net of tax in the consolidated statements of income for all periods presented. In addition, the related assets and liabilities are reported as assets and liabilities held for sale in the consolidated balance sheets. All amounts and disclosures included in the notes to consolidated financial statements reflect only the Company's continuing operations, unless otherwise noted. Refer to Note 4 for additional information. |
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. Actual 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 foreign currency contracts and interest rate 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 foreign currency and interest rate transactions. Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions): Input Level December 31, 2022 December 31, 2021 Assets Non-qualified deferred compensation assets Level 1 $ 39.8 $ 52.4 Foreign exchange contracts, net Level 2 8.4 2.1 Interest rate contracts, net Level 2 5.9 — Liabilities Non-qualified deferred compensation liabilities Level 1 $ (39.8) $ (52.4) Interest rate contracts, net Level 2 — (7.8) Fair value of other financial instruments. The carrying values of the Company’s short-term financial instruments, including cash and cash equivalents, trade receivables and short-term debt, including current maturities of long-term debt, finance lease obligations and notes payable, approximate their fair values. As of December 31, 2022 and December 31, 2021, the fair value of the Company’s long-term debt, finance lease obligations and notes payable was approximately $2,070.3 million and $1,870.0 million, respectively, and was determined primarily using Level 2 inputs, including quoted market prices or discounted cash flows based on quoted market rates for similar types of debt. The carrying value of long-term debt, finance lease obligations and notes payable including current maturities was $2,057.8 million and $1,800.7 million as of December 31, 2022 and December 31, 2021, respectively. The Company measures certain assets and liabilities at fair value on a nonrecurring basis. The Company 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 12 for additional information. |
Cash Equivalents | Cash equivalents. The Company 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. Restricted cash. The Company classifies amounts of cash that are restricted in terms of their use and withdrawal separately within other long-term assets in the consolidated balance sheets. The Company’s restricted cash is comprised primarily of cash held in trust accounts not available for general use due to contractual restrictions. |
Allowance for Doubtful Accounts | Allowance for doubtful accounts. The Company’s exposure to credit losses on accounts receivable is limited due to its agreements with certain finance companies. For receivables not serviced through these finance companies, the Company establishes a reserve for doubtful accounts based on historical credit loss experience, the age of the accounts receivables, credit quality of our customers, current and expected economic conditions, and other factors that may affect our ability to collect from customers. |
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 or net realizable value with substantially all inventories recorded using the first-in, first-out method. Finished goods include products that are completed and ready for sale or substantially completed as the product has gone through the primary manufacturing and assembly process. |
Investment in Affiliate | Investment in finance affiliate. The caption investment in finance affiliate in the consolidated balance sheets represents the Company’s fifty percent equity interest in Polaris Acceptance. 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. Refer to Note 11 for additional information. Investment in other affiliates. The Company’s 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, the Company assesses the level of influence in determining whether to account for the investment under the cost method or equity method. For equity method investments, the Company’s proportionate share of income or losses is recorded in the consolidated statements of income. The Company will write down or write off an |
Property and Equipment | Property and equipment. Property and equipment is stated at historical cost. Depreciation is determined 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 finance leases is included within depreciation expense. Fully-depreciated tooling is eliminated from the accounting records annually. The Company recorded $214.0 million, $193.4 million, and $198.2 million of depreciation expense for the years ended December 31, 2022, 2021, and 2020, respectively. Substantially all of the Company’s property and equipment is located in North America. |
Goodwill and Other Intangible Assets | Goodwill and other intangible assets. Goodwill is tested at least annually for impairment and is tested for impairment more frequently when events or changes in circumstances indicate that the asset might be impaired. The Company completes its annual goodwill impairment test as of the first day of the fourth quarter. The Company may first perform a qualitative assessment to determine whether it is more likely than not that the fair value of each reporting unit is less than its carrying amount. A qualitative assessment requires that the Company considers events or circumstances including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting unit’s net assets, and changes in the Company’s stock price. If, after assessing the totality of events or circumstances, it is determined that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, or if the Company elects to bypass the qualitative test and proceed to a quantitative test, then the quantitative goodwill impairment test is performed. A quantitative test includes comparing the fair value of each reporting unit to the carrying amount of the reporting unit, including goodwill. If the estimated fair value is less than the carrying amount of the reporting unit, an impairment is recognized in an amount equal to the difference, limited to the total amount of goodwill allocated to that reporting unit. Under the quantitative goodwill impairment test, the fair value of each reporting unit is determined using a discounted cash flow analysis and market approach. Determining the fair value of the reporting units requires the use of significant judgment, including discount rates, assumptions in the Company’s long-term business plan about future revenues and expenses, capital expenditures, and changes in working capital, which are dependent on internal forecasts, estimation of long-term growth for each reporting unit, and determination of the discount rate. These plans take into consideration numerous factors including historical experience, anticipated future economic conditions, changes in raw material prices, and growth expectations for the industries and end markets in which the Company participates. For its annual test in 2022, the Company completed a qualitative assessment for all reporting units. The Company’s primary identifiable intangible assets include: dealer/customer relationships, brand/trade names, developed technology, and non-compete agreements. Identifiable intangible assets with finite lives are amortized and those identifiable intangibles with indefinite lives are not amortized. Identifiable intangible assets that are subject to amortization are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Identifiable intangible assets with indefinite lives are tested for impairment annually or more frequently when events or changes in circumstances indicate that the asset might be impaired. The Company’s identifiable intangible assets with indefinite lives include brand/trade names. The impairment test consists of a comparison of the fair value of the brand/trade name with its carrying value. The Company completes its annual impairment test as of the first day of the fourth quarter each year for identifiable intangible assets with indefinite lives. |
Revenue Recognition | Revenue recognition. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or service to a customer. Revenue is measured based on the amount of consideration that the Company expects to be entitled to in exchange for the goods or services transferred. Sales, value add, and other taxes that are collected from a customer concurrent with revenue-producing activities are excluded from revenue. Revenue from goods and services transferred to customers at a point-in-time accounts for the majority of the Company’s revenue. Revenue from products or services transferred over time is discussed in the contract liabilities section. For the majority of wholegood vehicles, boats, and PG&A, the Company transfers control and recognizes a sale when it ships the product from its manufacturing facility, distribution center, or vehicle holding center to its customer. The amount of consideration the Company receives and revenue it recognizes varies with changes in marketing incentives and rebates it offers to its dealers and their customers. Payment terms vary by customer and most of the Company’s sales are financed by the customer under floorplan financing arrangements whereby the Company receives payment within a few days of shipment of the product. When the right of return exists, the Company adjusts the consideration for the estimated effect of returns. The Company estimates expected returns based on historical sales levels, the timing and magnitude of historical sales return levels as a percent of sales, type of product, type of customer, and a projection of this experience into the future. The Company adjusts its estimate of revenue at the earlier of when the most likely amount of consideration it expects to receive changes or when the consideration becomes fixed. Depending on the terms of the arrangement, the Company may also defer the recognition of a portion of the consideration received because it has to satisfy a future obligation. The Company uses an observable price to determine the stand-alone selling price for separate performance obligations. The Company has elected to recognize the cost for freight and shipping when control over vehicles, boats, or PG&A has transferred to the customer as an expense in cost of sales. The Company sells separately-priced service contracts (“ESCs”) that extend mechanical coverages beyond the base limited warranty as well as prepaid maintenance agreements to vehicle owners. Each of these separately priced service contracts range from 12 months to 84 months. The Company typically receives payment at the inception of the contract and recognizes revenue over the term of the agreement in proportion to the costs expected to be incurred in satisfying the obligations under the contract. |
Sales Promotions and Incentives | Sales promotions and incentives. The Company accrues for estimated sales promotion and incentive expenses, which are recognized as a component of sales in measuring the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. 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, planned programs, and historical rates for each product line. The Company records these amounts as a liability in the consolidated balance sheet until they are ultimately paid. Adjustments to sales promotions and incentives accruals are made 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. |
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 the Company’s dealers or distributors and, therefore, reduce the amount of sales the Company recognizes. The portion of the invoiced sales price estimated as the holdback is recognized as “dealer holdback” liability on the Company’s consolidated 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 Cost | Shipping and handling costs. The Company records shipping and handling costs as a component of cost of sales when control has transferred to the customer. |
Research and Development Expenses | Research and development expenses. The Company records research and development expenses in the period in which they are incurred as a component of operating expenses. |
Advertising Expenses | Advertising expenses. The Company 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, 2022, 2021 and 2020, the Company incurred $87.6 million, $90.8 million and $95.8 million of advertising expenses, respectively. |
Product Warranties | Product warranties. The Company typically provides a limited warranty for its vehicles and boats for a period of six months to ten years, depending on the product. The Company provides longer warranties in certain geographical markets as determined by local regulations and customary practice and may also provide longer warranties related to certain promotional programs. The Company’s standard warranties require the Company, generally through its dealer network, to repair or replace defective products during such warranty periods. 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. The Company records these amounts as a liability in the consolidated balance sheet until they are ultimately paid. Adjustments to the warranty reserve are made 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. The warranty reserve includes the estimated costs related to recalls, which are accrued when probable and estimable. Factors that could have an impact on |
Leases | Leases. The Company leases certain manufacturing facilities, retail stores, warehouses, distribution centers, office space, land, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. As most of the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one |
Share-Based Employee Compensation | Share-based employee compensation. The Company accounts for share-based compensation awards, including stock options and other equity-based compensation issued to employees, on a fair value basis. Determining the appropriate fair-value model and calculating 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, and the Monte Carlo model to estimate the fair value of employee performance restricted stock units that include a market condition. These pricing models also require the use of input assumptions, including expected volatility, expected life, expected dividend yield, and expected risk-free rate of return. The Company utilizes historical volatility as the Company 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 the Company’s history of dividend payouts. The amount of compensation cost for share-based awards recognized during a period is based on the portion of the awards that are ultimately expected to vest. The Company estimates 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. If forfeiture adjustments are made, they would affect 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. The Company does not use any financial contracts for trading purposes. The Company enters into foreign exchange contracts to manage currency exposures from certain of its purchase commitments denominated in foreign currencies and transfers of funds from its foreign subsidiaries. These contracts meet the criteria for cash flow hedges. Gains and losses on the Canadian dollar and Australian dollar contracts at settlement are recorded in non-operating other (income) expense, net in the consolidated income statements, and gains and losses on the Mexican peso contracts at settlement are recorded in cost of sales in the consolidated statements of income. The contracts are recorded in other current assets or other current liabilities in the consolidated balance sheets. Unrealized gains and losses are recorded as a component of accumulated other comprehensive loss, net. The Company enters into interest rate swaps in order to maintain a balanced risk of fixed and floating interest rates associated with the Company’s debt. These contracts meet the criteria for cash flow hedges. The contracts are recorded in other current assets or other current liabilities in the consolidated balance sheets. Unrealized gains and losses are recorded as a component of Accumulated other comprehensive loss, net. The Company enters into commodity hedging contracts in order to manage fluctuating market prices of certain purchased commodities and raw materials that are integrated into the Company’s end products. |
Foreign Currency Translation | Foreign currency translation. The functional currency for the Company’s foreign subsidiaries is typically their respective local currencies. The assets and liabilities in the Company’s 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 loss, net in the shareholders’ equity section of the consolidated balance sheets. Revenues and expenses in all of the Company’s 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 (income) expense, net in the consolidated statements of income. |
New Accounting Pronouncements | New accounting pronouncements. Reference Rate Reform. In March 2020, the Financial Accounting Standards Board (the “FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides practical expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The FASB also issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope in January 2021, which adds implementation guidance to clarify which optional expedients in Topic 848 may be applied to derivative instruments that do not reference LIBOR or a reference rate that is expected to be discontinued, but that are being modified as a result of the discounting transition. The FASB also issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 in December 2022, which deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. The Company adopted ASU 2020-04, ASU 2021-01, and ASU 2022-06. The adoption of the ASUs did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows. There are no other new accounting pronouncements that are expected to have a significant impact on the Company’s consolidated financial statements. |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Activity in the limited warranty reserve | The activity in the warranty reserve during the periods presented was as follows (in millions): For the Years Ended December 31, 2022 2021 2020 Balance at beginning of year $ 132.9 $ 138.6 $ 134.0 Reductions to reserve related to divestitures — (2.1) — Additions charged to expense 183.5 130.4 123.7 Warranty claims paid, net (143.5) (134.0) (119.1) Balance at end of year $ 172.9 $ 132.9 $ 138.6 |
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 millions): Input Level December 31, 2022 December 31, 2021 Assets Non-qualified deferred compensation assets Level 1 $ 39.8 $ 52.4 Foreign exchange contracts, net Level 2 8.4 2.1 Interest rate contracts, net Level 2 5.9 — Liabilities Non-qualified deferred compensation liabilities Level 1 $ (39.8) $ (52.4) Interest rate contracts, net Level 2 — (7.8) |
Schedule of activity in the warranty reserve | The activity in the deferred revenue reserve during the periods presented was as follows (in millions): For the Years Ended December 31, 2022 2021 2020 Balance at beginning of year $ 108.3 $ 89.1 $ 63.1 New contracts sold 49.1 55.0 49.0 Revenue recognized on existing contracts (46.3) (35.8) (23.0) Balance at end of year $ 111.1 $ 108.3 $ 89.1 The unamortized ESC premiums recorded in other current liabilities totaled $35.5 million and $34.7 million as of December 31, 2022 and 2021, respectively, while the amount recorded in other long-term liabilities totaled $75.6 million and $73.6 million as of December 31, 2022 and 2021, respectively. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Amounts Recognized in Balance Sheet | In millions December 31, 2022 December 31, 2021 Inventories Raw materials and purchased components $ 843.5 $ 720.2 Service parts, garments and accessories 371.1 276.4 Finished goods 768.2 588.2 Less: reserves (86.7) (74.1) Inventories, net $ 1,896.1 $ 1,510.7 Property and equipment Land, buildings and improvements $ 539.1 $ 501.1 Equipment and tooling 1,645.0 1,598.3 2,184.1 2,099.4 Less: accumulated depreciation (1,165.7) (1,171.7) Property and equipment, net $ 1,018.4 $ 927.7 Accrued expenses Compensation $ 212.3 $ 205.9 Warranties 172.9 132.9 Sales promotions and incentives 127.0 96.9 Dealer holdback 129.7 98.9 Other accrued expenses 254.9 221.9 Accrued expenses $ 896.8 $ 756.5 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue Recognition [Abstract] | |
Disaggregation of revenue | The following tables disaggregate the Company’s revenue by major product type and geography (in millions): For the Year Ended December 31, 2022 Off Road On Road Marine Corporate Total Revenue by product type Wholegoods $ 4,999.9 $ 956.5 $ 989.4 $ — $ 6,945.8 PG&A 1,436.3 206.9 — — 1,643.2 Total revenue $ 6,436.2 $ 1,163.4 $ 989.4 $ — $ 8,589.0 Revenue by geography United States $ 5,233.3 $ 614.2 $ 961.7 $ — $ 6,809.2 Canada 536.0 43.5 27.2 — 606.7 EMEA 421.4 423.2 0.1 — 844.7 APLA 245.5 82.5 0.4 — 328.4 Total revenue $ 6,436.2 $ 1,163.4 $ 989.4 $ — $ 8,589.0 |
Schedule of activity in the warranty reserve | The activity in the deferred revenue reserve during the periods presented was as follows (in millions): For the Years Ended December 31, 2022 2021 2020 Balance at beginning of year $ 108.3 $ 89.1 $ 63.1 New contracts sold 49.1 55.0 49.0 Revenue recognized on existing contracts (46.3) (35.8) (23.0) Balance at end of year $ 111.1 $ 108.3 $ 89.1 The unamortized ESC premiums recorded in other current liabilities totaled $35.5 million and $34.7 million as of December 31, 2022 and 2021, respectively, while the amount recorded in other long-term liabilities totaled $75.6 million and $73.6 million as of December 31, 2022 and 2021, respectively. |
Divestitures and Discontinued_2
Divestitures and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Disposal Group Activity | Results of discontinued operations were as follows (in millions): For the Years Ended December 31, 2022 2021 2020 Sales $ 349.3 $ 759.0 $ 746.5 Cost of sales 262.9 567.3 572.1 Other costs and expenses 100.9 194.7 483.4 Loss from discontinued operations before income taxes (14.5) (3.0) (309.0) Income tax benefit (1.3) (0.7) (73.4) Loss from discontinued operations, net of tax (13.2) (2.3) (235.6) Loss from sale of discontinued operations 187.6 — — Provision for income taxes (45.0) — — Loss from sale of discontinued operations, net of tax 142.6 — — Net loss from discontinued operations $ (155.8) $ (2.3) $ (235.6) The carrying amounts of major classes of assets and liabilities of discontinued operations were as follows (in millions): December 31, 2021 Cash $ 6.9 Trade receivables 12.6 Inventories, net 134.1 Other current assets 9.6 Current assets held for sale $ 163.2 Property and equipment, net $ 47.7 Intangible assets, net 102.3 Operating lease assets 74.8 Other long-term assets 1.2 Long-term assets held for sale $ 226.0 Accounts payable $ 21.5 Accrued expenses and other current liabilities 66.5 Current operating lease liabilities 19.8 Current liabilities held for sale $ 107.8 Long-term operating lease liabilities $ 57.2 Other long-term liabilities 8.9 Long-term liabilities held for sale $ 66.1 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of share-based compensation expenses | Total share-based compensation expenses were as follows (in millions): For the Years Ended December 31, 2022 2021 2020 Option awards $ 11.4 $ 9.8 $ 13.8 Other share-based awards 39.2 40.9 40.9 Total share-based compensation before tax 50.6 50.7 54.7 Tax benefit 12.0 12.1 13.1 Total share-based compensation expense included in net income $ 38.6 $ 38.6 $ 41.6 |
Schedule of stock option activity | The following summarizes stock option activity and the weighted average exercise price for the Omnibus Plan for the year ended December 31, 2022: Omnibus Plan Options Outstanding Weighted Balance as of December 31, 2021 3,279,701 $ 104.29 Granted 346,535 113.11 Exercised (351,332) 87.36 Forfeited/Expired (151,161) 125.59 Balance as of December 31, 2022 3,123,743 $ 106.16 Options exercisable as of December 31, 2022 2,504,752 $ 104.91 |
Schedule of weighted average fair value | The following assumptions were used to estimate the weighted average fair value of options granted of $37.41, $36.77 and $21.76 during the years ended December 31, 2022, 2021 and 2020, respectively: For the Years Ended December 31, 2022 2021 2020 Weighted-average volatility 43% 43% 34% Expected dividend yield 2.2% 2.1% 2.6% Expected term (in years) 4.9 4.7 4.5 Weighted average risk free interest rate 1.7% 0.5% 1.4% |
Schedule of restricted stock activity | The following table summarizes restricted stock activity for the year ended December 31, 2022: Shares Weighted Balance as of December 31, 2021 1,063,753 $ 101.72 Granted 347,083 119.42 Vested (443,170) 91.05 Forfeited/Cancelled (101,648) 109.24 Balance as of December 31, 2022 866,018 $ 113.40 Expected to vest as of December 31, 2022 904,410 $ 112.52 |
Financing Agreement (Tables)
Financing Agreement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The carrying value of debt, finance lease obligations, and notes payable and the average related interest rates were as follows (in millions): Average interest rate as of December 31, 2022 Maturity December 31, 2022 December 31, 2021 Revolving loan facility 5.10% June 2026 $ 312.9 $ — Term loan facility 5.67% June 2026 828.0 876.0 Incremental term loan 5.67% December 2023 500.0 500.0 Senior notes—fixed rate 4.23% July 2028 350.0 350.0 Finance lease obligations 5.21% Various through 2029 11.4 13.5 Notes payable and other 4.25% Various through 2030 61.4 68.3 Debt issuance costs (5.9) (7.1) Total debt, finance lease obligations, and notes payable $ 2,057.8 $ 1,800.7 Less: current maturities 553.6 553.3 Total long-term debt, finance lease obligations, and notes payable $ 1,504.2 $ 1,247.4 |
Summary of Activity Under Credit Arrangements, Excluding Acquired Borrowings | The following summarizes activity under the Company’s credit arrangements (in millions): 2022 2021 2020 Total borrowings as of December 31 $ 1,990.9 $ 1,726.0 $ 1,365.0 Average outstanding borrowings during year $ 2,074.9 $ 1,500.4 $ 1,879.7 Maximum outstanding borrowings during year $ 2,300.0 $ 1,903.0 $ 2,370.6 Weighted-average interest rate as of December 31 5.33% 1.77% 2.30% |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and other intangible assets | Goodwill and other intangible assets, net of accumulated amortization, as of December 31, 2022 and 2021 are as follows (in millions): 2022 2021 Goodwill $ 386.2 $ 391.3 Other intangible assets, net 524.4 543.9 Total goodwill and other intangible assets, net $ 910.6 $ 935.2 |
Schedule of changes in carrying amount of goodwill | There were no material additions to goodwill and other intangible assets in 2022 and 2021. The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2022 and 2021 were as follows (in millions): Off Road On Road Marine Total Balance as of December 31, 2020 $ 111.6 $ 58.6 $ 227.1 $ 397.3 Currency translation effect on foreign goodwill balances 0.1 (6.1) — (6.0) Balance as of December 31, 2021 $ 111.7 $ 52.5 $ 227.1 $ 391.3 Currency translation effect on foreign goodwill balances (1.0) (4.1) — (5.1) Balance as of December 31, 2022 $ 110.7 $ 48.4 $ 227.1 $ 386.2 |
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, 2022 and 2021 are as follows (in millions): 2022 2021 Gross Accumulated Gross Accumulated Other intangible assets, beginning $ 618.7 $ (74.8) $ 645.7 $ (72.6) Intangible assets disposed of during the period (13.4) 13.4 (25.8) 20.7 Amortization expense — (18.8) — (22.9) Currency translation effect on foreign balances (0.9) 0.2 (1.2) — Other intangible assets, ending $ 604.4 $ (80.0) $ 618.7 $ (74.8) |
Schedule of components of other intangible assets | The components of other intangible assets were as follows (in millions): December 31, 2022 Weighted-average useful life (years) Gross Carrying Accumulated Net Dealer/customer related 19 341.7 (80.0) 261.7 Total amortizable 19 341.7 (80.0) 261.7 Non-amortizable—brand/trade names 262.7 — 262.7 Total other intangible assets, net $ 604.4 $ (80.0) $ 524.4 December 31, 2021 Weighted-average useful life (years) Gross Carrying Accumulated Net Non-compete agreements 4 $ 2.6 $ (2.3) $ 0.3 Dealer/customer related 19 349.7 (69.7) 280.0 Developed technology 7 2.9 (2.8) 0.1 Total amortizable 19 355.2 (74.8) 280.4 Non-amortizable—brand/trade names 263.5 — 263.5 Total other intangible assets, net $ 618.7 $ (74.8) $ 543.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Before Income Taxes | The Company’s income from continuing operations before income taxes consisted of the following (in millions): For the Years Ended December 31, 2022 2021 2020 United States $ 608.4 $ 495.4 $ 382.0 Foreign 153.0 133.3 68.4 Income from continuing operations before income taxes $ 761.4 $ 628.7 $ 450.4 |
Components of Provision for Income Taxes | The provision for income taxes consisted of the following (in millions): For the Years Ended December 31, 2022 2021 2020 Current: Federal $ 145.4 $ 74.1 $ 119.1 State 25.9 17.0 24.3 Foreign 41.5 29.0 26.8 Deferred (54.8) 12.0 (80.3) Total provision for income taxes $ 158.0 $ 132.1 $ 89.9 |
Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate | Reconciliations of the federal statutory income tax rate to the Company’s effective tax rate were as follows: For the Years Ended December 31, 2022 2021 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 1.7 2.0 2.0 Domestic manufacturing deduction — — (0.8) Research and development tax credit (1.8) (3.4) (3.9) Stock based compensation (0.3) (0.5) (0.1) Valuation allowance — — 0.5 Foreign tax rate differential 0.9 0.9 1.8 Foreign-derived intangible income (1.3) — — Other permanent differences 0.5 1.0 (0.5) Effective income tax rate for continuing operations 20.7 % 21.0 % 20.0 % |
Net Deferred Income Taxes | The net deferred income taxes consist of the following (in millions): As of December 31, 2022 2021 Deferred income taxes: Inventories $ 87.2 $ 73.6 Accrued expenses and other 125.5 105.0 Cost in excess of net assets of businesses acquired (44.1) 24.5 Capitalized research expenditures 83.3 — Property and equipment (93.4) (101.2) Operating lease assets (29.2) (40.1) Operating lease liabilities 29.2 40.5 Employee compensation and benefits 42.1 49.3 Net operating loss and other loss carryforwards 21.9 22.8 Valuation allowance (16.6) (17.0) Total net deferred income tax asset $ 205.9 $ 157.4 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | Reconciliations of the beginning and ending unrecognized tax benefits were as follows (in millions): For the Years Ended December 31, 2022 2021 Balance as of January 1, $ 12.4 $ 13.2 Gross increases for tax positions of prior years — 0.4 Gross increases for tax positions of current year 2.4 2.7 Decreases due to settlements and other prior year tax positions (0.6) (1.7) Decreases for lapse of statute of limitations (3.3) (2.2) Balance as of December 31, 10.9 12.4 Reserves related to potential interest and penalties as of December 31, 0.8 0.9 Unrecognized tax benefits as of December 31, $ 11.7 $ 13.3 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Shareholders Equity [Abstract] | |
Schedule of share repurchases | The Company has made the following share repurchases (in millions): For the Years Ended December 31, 2022 2021 2020 Total number of shares repurchased and retired 4.4 3.8 0.6 Total investment $ 505.0 $ 461.6 $ 50.3 |
Schedule of cash dividends declared per common share | Dividends. Quarterly and total year cash dividends declared per common share for the years ended December 31, 2022, 2021, and 2020 were as follows: For the Years Ended December 31, 2022 2021 2020 Quarterly dividend declared and paid per common share $ 0.64 $ 0.63 $ 0.62 Total dividends declared and paid per common share $ 2.56 $ 2.52 $ 2.48 |
Schedule of reconciliation of weighted average number of shares | Reconciliations of these amounts are as follows (in millions): For the Years Ended December 31, 2022 2021 2020 Weighted average number of common shares outstanding 58.9 61.0 61.5 Director Plan and deferred stock units 0.2 0.2 0.2 ESOP 0.2 0.1 0.2 Common shares outstanding—basic 59.3 61.3 61.9 Dilutive effect of restricted stock awards 0.4 0.7 0.5 Dilutive effect of stock option awards 0.4 0.7 0.2 Common and potential common shares outstanding—diluted 60.1 62.7 62.6 |
Schedule of changes in accumulated other comprehensive income (loss) balances | Changes in the accumulated other comprehensive loss balance were as follows (in millions): Foreign Currency Translation Cash Flow Hedging Derivatives Retirement Plan Activity Accumulated Other Comprehensive Loss Balance as of December 31, 2021 $ (69.5) $ (4.4) $ (3.5) $ (77.4) Reclassification to the statement of income — (15.0) 0.3 (14.7) Change in fair value (25.3) 29.9 — 4.6 Balance as of December 31, 2022 $ (94.8) $ 10.5 $ (3.2) $ (87.5) |
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 the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the income statement for cash flow derivatives designated as hedging instruments and retirement plan activity for the years ended December 31, 2022 and 2021 (in millions): Derivatives in Cash Flow Hedging Relationships and Other Activity Location of Gain (Loss) Reclassified from Accumulated OCI into Income For the Years Ended December 31, 2022 2021 Foreign currency contracts Other (income) expense, net $ 12.2 $ (0.3) Foreign currency contracts Cost of sales 2.1 0.5 Interest rate contracts Interest expense 1.0 (8.1) Other activity Cost of sales / operating expenses (0.6) (0.3) Total $ 14.7 $ (8.2) |
Financial Services Arrangemen_2
Financial Services Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 are as follows (in millions): For the Years Ended December 31, 2022 2021 2020 Revenues $ 49.7 $ 21.9 $ 44.7 Interest and operating expenses 19.5 6.6 7.6 Net income $ 30.2 $ 15.3 $ 37.1 As of December 31, 2022 2021 Finance receivables, net $ 1,314.2 $ 470.7 Other assets 20.9 29.1 Total assets $ 1,335.1 $ 499.8 Notes payable $ 1,076.0 $ 366.9 Other liabilities 73.0 34.4 Partners’ capital 186.1 98.5 Total liabilities and partners’ capital $ 1,335.1 $ 499.8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of company lease information | Information on the Company’s leases is summarized as follows (in millions): As of December 31, Classification 2022 2021 Assets Operating lease assets Operating lease assets $ 111.0 $ 90.5 Finance lease assets Property and equipment, net (1) 7.4 9.3 Total leased assets $ 118.4 $ 99.8 Liabilities Current Operating lease liabilities Current operating lease liabilities $ 24.1 $ 19.4 Finance lease liabilities Current portion of debt, finance lease obligations and notes payable 1.5 1.4 Long-term Operating lease liabilities Long-term operating lease liabilities 87.0 71.3 Finance lease liabilities Finance lease obligations 9.9 12.1 Total lease liabilities $ 122.5 $ 104.2 (1) Finance lease assets are recorded net of accumulated amortization of $10.4 million and $10.0 million as of December 31, 2022 and 2021, respectively. |
Schedule of lease cost | For the Year Ended December 31, Lease Cost Classification 2022 2021 Operating lease cost (1) Operating expenses and cost of sales $ 40.0 $ 33.8 Finance lease cost Amortization of leased assets Operating expenses and cost of sales 1.1 1.3 Interest on lease liabilities Interest expense 0.7 0.7 Sublease income Other (income) expense, net — (0.6) Total lease cost $ 41.8 $ 35.2 (1) Includes short-term leases and variable lease costs, which are immaterial. As of December 31, Lease Term and Discount Rate 2022 2021 Weighted-average remaining lease term (years) Operating leases 6.26 3.56 Finance leases 6.54 7.49 Weighted-average discount rate Operating leases 2.45 % 1.15 % Finance leases 5.21 % 5.17 % For the Year Ended December 31, Other Information 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 40.4 $ 33.8 Operating cash flows from finance leases 0.6 0.8 Financing cash flows from finance leases 1.4 1.5 Leased assets obtained in exchange for new operating lease liabilities 52.8 82.0 |
Schedule of finance lease liability | Maturity of Lease Liabilities Operating Leases (1) Finance Leases Total 2023 $ 26.5 $ 2.0 $ 28.5 2024 21.3 2.0 23.3 2025 17.1 2.0 19.1 2026 14.7 2.0 16.7 2027 10.5 2.1 12.6 Thereafter 30.1 3.4 33.5 Total lease payments $ 120.2 $ 13.5 $ 133.7 Less: interest 9.1 2.1 Present value of lease payments $ 111.1 $ 11.4 (1) Operating lease payments exclude $8.3 million of legally binding minimum lease payments for leases signed but not yet commenced. There were no options to extend lease terms that were reasonably certain of being exercised as of December 31, 2022. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of open foreign currency contracts | December 31, 2022 and 2021, the Company had the following open foreign currency contracts (in millions): December 31, 2022 December 31, 2021 Foreign Currency Notional Amounts Net Unrealized Notional Amounts Net Unrealized Australian Dollar $ 13.7 $ 0.2 $ 20.3 $ 0.4 Canadian Dollar 93.3 2.5 121.1 0.6 Mexican Peso 47.0 5.7 87.9 1.1 Total $ 154.0 $ 8.4 $ 229.3 $ 2.1 |
Schedule of carrying values of derivative instruments | The table below summarizes the carrying values of derivative instruments as of December 31, 2022 and 2021 (in millions): Carrying Values of Derivative Instruments as of December 31, 2022 Fair Value— Fair Value— Derivative Net Derivatives designated as hedging instruments Foreign exchange contracts $ 8.4 $ — $ 8.4 Interest rate contracts 5.9 — 5.9 Total derivatives designated as hedging instruments $ 14.3 $ — $ 14.3 Carrying Values of Derivative Instruments as of December 31, 2021 Fair Value— Fair Value— Derivative Net Derivatives designated as hedging instruments Foreign exchange contracts $ 2.4 $ (0.3) $ 2.1 Interest rate contracts — (7.8) (7.8) Total derivatives designated as hedging instruments $ 2.4 $ (8.1) $ (5.7) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Segment sales and gross profit data is summarized as follows (in millions): For the Years Ended December 31, 2022 2021 2020 Sales Off Road $ 6,436.2 $ 5,574.6 $ 4,810.0 On Road 1,163.4 1,031.8 806.7 Marine 989.4 760.2 603.4 Corporate — 72.6 61.3 Total sales $ 8,589.0 $ 7,439.2 $ 6,281.4 Gross profit Off Road 1,523.4 1,329.8 1,302.0 On Road 206.3 160.7 95.5 Marine 222.5 170.6 116.4 Corporate 7.3 89.8 21.8 Total gross profit $ 1,959.5 $ 1,750.9 $ 1,535.7 |
Organization and Significant _4
Organization and Significant Accounting Policies - Fair Value Measurements (Detail) - Fair value, measurements, recurring - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Non-qualified deferred compensation assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation assets | $ 39.8 | $ 52.4 |
Deferred Compensation Liability, Current and Noncurrent | 39.8 | 52.4 |
Interest rate contracts, net | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | (5.9) | 0 |
Derivative Liability | 0 | 7.8 |
Foreign exchange contracts, net | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | $ 8.4 | 2.1 |
Designated as Hedging Instrument [Member] | Foreign exchange contracts, net | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | $ (2.4) |
Organization and Significant _5
Organization and Significant Accounting Policies - Activity in Polaris Accrued Warranty Reserve (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Activity in Product Warranty Reserve [Roll Forward] | |||
Balance at beginning of year | $ 132.9 | $ 138.6 | $ 134 |
Reductions to reserve related to divestitures | 0 | (2.1) | 0 |
Additions charged to expense | 183.5 | 130.4 | 123.7 |
Warranty claims paid, net | (143.5) | (134) | (119.1) |
Balance at end of year | $ 172.9 | $ 132.9 | $ 138.6 |
Organization and Significant _6
Organization and Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Long-term debt, fair value | $ 2,070.3 | $ 1,870 | |
Depreciation | 214 | 193.4 | $ 198.2 |
Advertising expenses | 87.6 | 90.8 | $ 95.8 |
Operating lease assets | 111 | 90.5 | |
Operating lease liability | 111.1 | ||
Land, buildings and improvements | 539.1 | 501.1 | |
Equipment and tooling | 1,645 | 1,598.3 | |
Property, Plant and Equipment, Gross | 2,184.1 | 2,099.4 | |
Less: accumulated depreciation | (1,165.7) | (1,171.7) | |
Property and equipment, net | $ 1,018.4 | $ 927.7 | |
Polaris Acceptance | |||
Property, Plant and Equipment [Line Items] | |||
Equity method investment ownership percentage | 50% | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Period of warranties provided by Polaris | 6 months | ||
Renewal term | 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 | |||
Property, Plant and Equipment [Line Items] | |||
Period of warranties provided by Polaris | 10 years | ||
Renewal term | 20 years | ||
Maximum | Huntington Bancshares Incorporated | |||
Property, Plant and Equipment [Line Items] | |||
Aggregate repurchase obligation | 100% | ||
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 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials and purchased components | $ 843.5 | $ 720.2 |
Service parts, garments and accessories | 371.1 | 276.4 |
Finished goods | 768.2 | 588.2 |
Less: reserves | (86.7) | (74.1) |
Inventories | 1,896.1 | 1,510.7 |
Land, buildings and improvements | 539.1 | 501.1 |
Equipment and tooling | 1,645 | 1,598.3 |
Property, Plant and Equipment, Gross | 2,184.1 | 2,099.4 |
Less: accumulated depreciation | (1,165.7) | (1,171.7) |
Property and equipment, net | 1,018.4 | 927.7 |
Compensation | 212.3 | 205.9 |
Warranties | 172.9 | 132.9 |
Sales promotions and incentives | 127 | 96.9 |
Dealer holdback | 129.7 | 98.9 |
Other accrued expenses | 254.9 | 221.9 |
Accrued expenses | $ 896.8 | $ 756.5 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Revenue Arrangement [Line Items] | ||||
Deferred Revenue | $ 111.1 | $ 108.3 | $ 89.1 | $ 63.1 |
Deferred Revenue, Current | 35.5 | 34.7 | ||
Deferred Revenue, Noncurrent | $ 75.6 | $ 73.6 | ||
Minimum | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Standard Product Warranty Time Period | 6 months | |||
Maximum | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Standard Product Warranty Time Period | 10 years |
Revenue Recognition (Contract R
Revenue Recognition (Contract Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Sales | $ 8,589 | $ 7,439.2 | $ 6,281.4 |
Corporate, Non-Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 72.6 | 61.3 |
Boats | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 989.4 | 760.2 | 603.4 |
Off-Road Segment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 6,436.2 | 5,574.6 | 4,810 |
On-Road Segment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,163.4 | 1,031.8 | 806.7 |
Wholegoods | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 6,945.8 | 5,919.3 | 5,053.3 |
Wholegoods | Corporate, Non-Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 59.8 | 49.5 |
Wholegoods | Boats | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 989.4 | 760.2 | 603.4 |
Wholegoods | Off-Road Segment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 4,999.9 | 4,251.7 | 3,731.4 |
Wholegoods | On-Road Segment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 956.5 | 847.6 | 669 |
PG&A | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,643.2 | 1,519.9 | 1,228.1 |
PG&A | Corporate, Non-Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 12.8 | 11.8 |
PG&A | Boats | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
PG&A | Off-Road Segment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,436.3 | 1,322.9 | 1,078.6 |
PG&A | On-Road Segment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 206.9 | 184.2 | 137.7 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 6,809.2 | 5,742.3 | 5,073.5 |
United States | Corporate, Non-Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 68.1 | 58.8 |
United States | Boats | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 961.7 | 737.4 | 592.4 |
United States | Off-Road Segment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 5,233.3 | 4,422.5 | 3,995.2 |
United States | On-Road Segment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 614.2 | 514.3 | 427.1 |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 606.7 | 573.7 | 367.2 |
Canada | Corporate, Non-Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0.4 | 0.2 |
Canada | Boats | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 27.2 | 22.6 | 11 |
Canada | Off-Road Segment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 536 | 517.6 | 332.4 |
Canada | On-Road Segment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 43.5 | 33.1 | 23.6 |
EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 844.7 | 803.2 | 614.8 |
EMEA | Corporate, Non-Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0.5 | 1.1 |
EMEA | Boats | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0.1 | 0.2 | 0 |
EMEA | Off-Road Segment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 421.4 | 402.3 | 324.5 |
EMEA | On-Road Segment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 423.2 | 400.2 | 289.2 |
APLA | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 328.4 | 320 | 225.9 |
APLA | Corporate, Non-Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 3.6 | 1.2 |
APLA | Boats | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0.4 | 0 | 0 |
APLA | Off-Road Segment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 245.5 | 232.2 | 157.9 |
APLA | On-Road Segment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 82.5 | $ 84.2 | $ 66.8 |
Revenue Recognition (Deferred R
Revenue Recognition (Deferred Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |||
Balance at beginning of period | $ 108.3 | $ 89.1 | $ 63.1 |
New contracts sold | 49.1 | 55 | 49 |
Balance at end of period | 111.1 | 108.3 | 89.1 |
Deferred Revenue, Revenue Recognized | (46.3) | (35.8) | $ (23) |
Deferred Revenue, Current | 35.5 | 34.7 | |
Deferred Revenue, Noncurrent | $ 75.6 | $ 73.6 |
Divestitures and Discontinued_3
Divestitures and Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Combinations [Abstract] | |||
Loss on divestiture | $ 0 | $ 36.8 | $ 0 |
Loss from sale of discontinued operations | 187.6 | 0 | 0 |
Proceeds from Divestiture of Businesses | 42.2 | ||
Provision for income taxes | $ 45 | $ 0 | $ 0 |
Divestitures and Discontinued_4
Divestitures and Discontinued Operations - Results of Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Combination and Asset Acquisition [Abstract] | |||
Sales | $ 349.3 | $ 759 | $ 746.5 |
Cost of sales | 262.9 | 567.3 | 572.1 |
Other costs and expenses | 100.9 | 194.7 | 483.4 |
Loss from discontinued operations before income taxes | (14.5) | (3) | (309) |
Income tax benefit | (1.3) | (0.7) | (73.4) |
Loss from discontinued operations, net of tax | (13.2) | (2.3) | (235.6) |
Loss from sale of discontinued operations | 187.6 | 0 | 0 |
Provision for income taxes | (45) | 0 | 0 |
Loss from sale of discontinued operations, net of tax | 142.6 | 0 | 0 |
Net loss from discontinued operations | $ (155.8) | $ (2.3) | $ (235.6) |
Divestitures and Discontinued_5
Divestitures and Discontinued Operations - Summary of Carrying Values (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Combination and Asset Acquisition [Abstract] | |||
Cash | $ 0 | $ 6.9 | $ 3 |
Trade receivables | 12.6 | ||
Inventories, net | 134.1 | ||
Other current assets | 9.6 | ||
Current assets held for sale | 0 | 163.2 | |
Property and equipment, net | 47.7 | ||
Intangible assets, net | 102.3 | ||
Operating lease assets | 74.8 | ||
Other long-term assets | 1.2 | ||
Long-term assets held for sale | 0 | 226 | |
Accounts payable | 21.5 | ||
Accrued expenses and other current liabilities | 66.5 | ||
Current operating lease liabilities | 19.8 | ||
Current liabilities held for sale | 0 | 107.8 | |
Long-term operating lease liabilities | 57.2 | ||
Other long-term liabilities | 8.9 | ||
Long-term liabilities held for sale | $ 0 | $ 66.1 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 72 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to unvested share-based equity awards | $ 52.4 | $ 52.4 | ||
Weighted average period of recognition of unvested share-based equity awards (in years) | 1 year 2 months 12 days | |||
Unrecognized compensation cost related to unvested share-based equity awards, Stock Options | $ 5.1 | 5.1 | ||
Unrecognized compensation cost related to unvested share-based equity awards, Restricted Stock | $ 47.3 | 47.3 | ||
Weighted average remaining contractual life of option outstanding | 5 years 2 months 12 days | |||
Weighted average remaining contractual life of option exercisable | 4 years 4 months 24 days | |||
Estimated weighted average fair value of options granted | $ 37.41 | $ 36.77 | $ 21.76 | |
Total intrinsic value of options exercised | $ 9.9 | |||
Total intrinsic value of options outstanding | 35.7 | 35.7 | ||
Total intrinsic value of options exercisable | $ 33.6 | $ 33.6 | ||
Weighted average fair values at the grant dates of grants awarded | $ 146.08 | $ 165.54 | $ 98.09 | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0% | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200% | |||
Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares of common stock available for issuance | 27,775,000 | 27,775,000 | ||
Omnibus Incentive Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option awards granted, vesting period | 1 year | |||
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 | 17,000 | 10,000 | 20,000 | |
Additional shares issued to retired directors | 11,000 | 8,000 | 13,000 | 67,000 |
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 | 243,000 | |||
Stock Option Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock shares granted | 346,535 | |||
Directors Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum shares authorized for issuance | 500,000 | 500,000 | ||
Shares of common stock earned | 73,000 | |||
Additional shares issued to retired directors | 427,000 | |||
Liabilities under share plan | $ 9.2 | $ 8.8 | $ 9.2 | |
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 66,184 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 347,083 | |||
Total intrinsic value of restricted stock expected to vest | $ 91.3 | $ 91.3 | ||
Weighted average fair values at the grant dates of grants awarded | $ 119.42 | $ 122.08 | $ 92.23 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-based Compensation Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Option awards | $ 11.4 | $ 9.8 | $ 13.8 |
Other share-based awards | 39.2 | 40.9 | 40.9 |
Total share-based compensation before tax | 50.6 | 50.7 | 54.7 |
Tax benefit | 12 | 12.1 | 13.1 |
Total share-based compensation expense included in net income | $ 38.6 | $ 38.6 | $ 41.6 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity and Weighted Average Exercise Price (Detail) - Stock Option Plans | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Outstanding Shares | |
Beginning Balance | shares | 3,279,701 |
Granted | shares | 346,535 |
Exercised | shares | (351,332) |
Forfeited | shares | (151,161) |
Ending Balance | shares | 3,123,743 |
Options exercisable at end of period | shares | 2,504,752 |
Weighted-Average Exercise Price | |
Beginning Balance | $ / shares | $ 104.29 |
Granted | $ / shares | 113.11 |
Exercised | $ / shares | 87.36 |
Forfeited | $ / shares | 125.59 |
Ending Balance | $ / shares | 106.16 |
Options exercisable at end of period | $ / shares | $ 104.91 |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions Used to Estimate Weighted Average Fair Value of Options (Detail) - Stock Options | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average volatility | 43% | 43% | 34% |
Expected dividend yield | 2.20% | 2.10% | 2.60% |
Expected term (in years) | 4 years 10 months 24 days | 4 years 8 months 12 days | 4 years 6 months |
Weighted average risk free interest rate | 1.70% | 0.50% | 1.40% |
Share-Based Compensation - As_2
Share-Based Compensation - Assumptions Used to Estimate Fair Value of TSR grants (Details) - TSR Performance Share Awards | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average volatility | 48% | 49% | 35% |
Expected dividend yield | 2.20% | 2.10% | 2.60% |
Expected term (in years) | 3 years | 3 years | 3 years |
Weighted average risk free interest rate | 1.50% | 0.20% | 1.40% |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted Average Grant Price | |||
Granted | $ 146.08 | $ 165.54 | $ 98.09 |
Restricted Stock | |||
Shares Outstanding | |||
Beginning Balance | 1,063,753 | ||
Granted | 347,083 | ||
Vested | (443,170) | ||
Canceled/Forfeited | (101,648) | ||
Ending Balance | 866,018 | 1,063,753 | |
Expected to vest as of end of period | 904,410 | ||
Weighted Average Grant Price | |||
Beginning Balance | $ 101.72 | ||
Granted | 119.42 | $ 122.08 | $ 92.23 |
Vested | 91.05 | ||
Canceled/Forfeited | 109.24 | ||
Ending Balance | 113.40 | $ 101.72 | |
Expected to vest as of end of period | $ 112.52 |
Employee Savings Plans - Additi
Employee Savings Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expenses related ESOP | $ 14.6 | $ 13.9 | $ 12.3 |
Shares vested under ESOP | 2,949,000 | ||
Matching percentage of employer to employee contributions | 100% | ||
Matching contributions to 401(k) retirement savings plan | $ 26.4 | 24.9 | $ 22.5 |
Temporary equity, shares issued (in shares) | 124,505 | ||
Deferred compensation | $ 12.6 | 11.2 | |
Temporary equity, other changes | 12.5 | ||
Temporary equity, accretion to redemption value, adjustment | $ 0.1 | ||
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 | 7,700,000 | ||
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 | $ 39.8 | $ 52.4 | |
Share-based Compensation Award, Tranche One | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
ESOP vesting period | 2 years | ||
Share-based Compensation Award, Tranche Two | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
ESOP vesting period | 3 years |
Financing Agreement - Debt Inst
Financing Agreement - Debt Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 31, 2018 |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,990.9 | $ 1,726 | $ 1,365 | |
Weighted-average interest rate as of December 31 | 5.33% | 1.77% | 2.30% | |
Debt issuance costs | $ (5.9) | $ (7.1) | ||
Present value of lease payments | 11.4 | |||
Total debt, finance lease obligations, and notes payable | 2,057.8 | 1,800.7 | ||
Less: current maturities | 553.6 | 553.3 | ||
Total long-term debt, finance lease obligations, and notes payable | $ 1,504.2 | 1,247.4 | ||
Term Loan, 364 Day [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate at period end | 5.67% | |||
Line of Credit, Current | $ 500 | 500 | ||
Revolving loan facility | ||||
Debt Instrument [Line Items] | ||||
Average interest rate | 5.10% | |||
Long-term debt | $ 312.9 | 0 | ||
Senior Notes | Senior Unsecured Notes 4.23 Percent, Due July 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 350 | 350 | $ 350 | |
Interest rate, stated percentage | 4.23% | |||
Finance lease obligations | ||||
Debt Instrument [Line Items] | ||||
Weighted-average interest rate as of December 31 | 5.21% | |||
Present value of lease payments | $ 11.4 | 13.5 | ||
Notes payable and other | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 4.25% | |||
Notes payable and other | Notes Payable 3.50 Percent Due June 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 61.4 | 68.3 | ||
Long-term Debt | ||||
Debt Instrument [Line Items] | ||||
Interest rate at period end | 5.67% | |||
Long-term line of credit | $ 828 | $ 876 |
Financing Agreement - Summary o
Financing Agreement - Summary of Activity Under Credit Arrangements, Excluding Acquired Borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Total borrowings as of December 31 | $ 1,990.9 | $ 1,726 | $ 1,365 |
Average outstanding borrowings during year | 2,074.9 | 1,500.4 | 1,879.7 |
Maximum outstanding borrowings during year | $ 2,300 | $ 1,903 | $ 2,370.6 |
Weighted-average interest rate as of December 31 | 5.33% | 1.77% | 2.30% |
Financing Agreement - Additiona
Financing Agreement - Additional Information (Details) $ in Millions | 1 Months Ended | ||||||
Jul. 31, 2018 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 17, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jul. 02, 2018 USD ($) | |
Line of Credit Facility [Line Items] | |||||||
Letter of credit outstanding | $ 38.5 | ||||||
Debt outstanding from dealers | 1,893.9 | ||||||
Long-term debt | 1,990.9 | $ 1,726 | $ 1,365 | ||||
Term Loan, 364 Day [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Face amount | $ 500 | ||||||
Senior Notes | Senior Unsecured Notes 4.23 Percent, Due July 2028 | |||||||
Line of Credit Facility [Line Items] | |||||||
Long-term debt | $ 350 | 350 | 350 | ||||
Long-term Debt | |||||||
Line of Credit Facility [Line Items] | |||||||
Revolving loan facility, maximum capacity | $ 1,180 | ||||||
Long-term line of credit | 828 | $ 876 | |||||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | 45 | ||||||
Revolving loan facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Revolving loan facility, maximum capacity | $ 1,000 | ||||||
Debt Instrument, Covenant, Interest Coverage Ratio, Minimum | 3 | ||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 3.50 | ||||||
Boat Holdings, LLC | Notes Payable, Other Payables [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Long-term debt | $ 55.3 | $ 76.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 386.2 | $ 391.3 | $ 397.3 |
Other intangible assets, net | 524.4 | 543.9 | |
Total goodwill and other intangible assets, net | $ 910.6 | $ 935.2 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes on the Carrying Amount of Goodwill by Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 391.3 | $ 397.3 |
Currency translation effect on foreign goodwill balances | (5.1) | (6) |
Goodwill, Ending Balance | 386.2 | 391.3 |
Boats | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 227.1 | 227.1 |
Currency translation effect on foreign goodwill balances | 0 | 0 |
Goodwill, Ending Balance | 227.1 | 227.1 |
Off-Road Segment | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 111.7 | 111.6 |
Currency translation effect on foreign goodwill balances | (1) | 0.1 |
Goodwill, Ending Balance | 110.7 | 111.7 |
On-Road Segment | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 52.5 | 58.6 |
Currency translation effect on foreign goodwill balances | (4.1) | (6.1) |
Goodwill, Ending Balance | $ 48.4 | $ 52.5 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets, Changes in Net Carrying Amount (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Gross Amount | |||
Other intangible assets, beginning | $ 618.7 | $ 645.7 | |
Finite-Lived Intangible Assets, Disposal of Intangible Assets | (13.4) | (25.8) | |
Currency translation effect on foreign balances | (0.9) | (1.2) | |
Other intangible assets, ending | 604.4 | 618.7 | $ 645.7 |
Accumulated Amortization | |||
Other intangible assets, beginning | (74.8) | (72.6) | |
Amortization of Intangible Assets, Adjustment for Disposal | 13.4 | 20.7 | |
Amortization expense | (18.8) | (22.9) | (24.4) |
Currency translation effect on foreign balances | 0.2 | 0 | |
Other intangible assets, ending | $ (80) | $ (74.8) | $ (72.6) |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 341.7 | $ 355.2 | |
Accumulated Amortization | (80) | (74.8) | $ (72.6) |
Net | 261.7 | 280.4 | |
Total other intangible assets, Gross Carrying Amount | 604.4 | 618.7 | $ 645.7 |
Total other intangible assets, net | $ 524.4 | $ 543.9 | |
Weighted-average useful life (years) | 19 years | 19 years | |
Non-compete agreements | |||
Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 2.6 | ||
Accumulated Amortization | (2.3) | ||
Net | $ 0.3 | ||
Weighted-average useful life (years) | 4 years | ||
Dealer/customer related | |||
Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 341.7 | $ 349.7 | |
Accumulated Amortization | (80) | (69.7) | |
Net | $ 261.7 | $ 280 | |
Weighted-average useful life (years) | 19 years | 19 years | |
Developed technology | |||
Intangible Assets by Major Class [Line Items] | |||
Gross Carrying Amount | $ 2.9 | ||
Accumulated Amortization | (2.8) | ||
Net | $ 0.1 | ||
Weighted-average useful life (years) | 7 years | ||
Non-amortizable—brand/trade names | |||
Intangible Assets by Major Class [Line Items] | |||
Non-amortizable—brand/trade names | $ 262.7 | $ 263.5 | |
Non-amortizable, Net | $ 262.7 | $ 263.5 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense of intangible assets | $ 18.8 | $ 22.9 | $ 24.4 |
Estimated Future Amortization Expense by Fiscal Year [Abstract] | |||
2023 | 17.7 | ||
2024 | 17.7 | ||
2025 | 17.7 | ||
2026 | 17.7 | ||
2027 | 17.7 | ||
Goodwill [Line Items] | |||
Goodwill, Impairment Loss | 0 | $ 0 | 81.1 |
Off-Road Segment | |||
Goodwill [Line Items] | |||
Goodwill, Impaired, Accumulated Impairment Loss | 60.8 | ||
On-Road Segment | |||
Goodwill [Line Items] | |||
Goodwill, Impaired, Accumulated Impairment Loss | $ 20.3 | ||
Aftermarket | |||
Goodwill [Line Items] | |||
Goodwill, Impairment Loss | $ 270.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Undistributed earnings relating to certain non-U.S. subsidiaries | $ 453.4 | $ 338 |
Net operating loss carryforwards | $ 54.6 |
Income Taxes - Income From Cont
Income Taxes - Income From Continuing Operations, Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 608.4 | $ 495.4 | $ 382 |
Foreign | 153 | 133.3 | 68.4 |
Income from continuing operations before income taxes | $ 761.4 | $ 628.7 | $ 450.4 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 145.4 | $ 74.1 | $ 119.1 |
State | 25.9 | 17 | 24.3 |
Foreign | 41.5 | 29 | 26.8 |
Deferred | (54.8) | 12 | (80.3) |
Total provision for income taxes | $ 158 | $ 132.1 | $ 89.9 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21% | 21% | 21% |
State income taxes, net of federal benefit | 1.70% | 2% | 2% |
Domestic manufacturing deduction | 0% | 0% | (0.80%) |
Research and development tax credit | (1.80%) | (3.40%) | (3.90%) |
Stock based compensation | (0.30%) | (0.50%) | (0.10%) |
Valuation allowance | 0% | 0% | 0.50% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 0.90% | 0.90% | 1.80% |
Effective Income Tax Rate Reconciliation, FDII, Percent | (1.30%) | 0% | 0% |
Other permanent differences | 0.50% | 1% | (0.50%) |
Effective income tax rate for continuing operations | 20.70% | 21% | 20% |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Taxes (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred income taxes: | ||
Inventories | $ 87.2 | $ 73.6 |
Accrued expenses and other | 125.5 | 105 |
Cost in excess of net assets of businesses acquired | (44.1) | 24.5 |
Deferred Tax Assets, in Process Research and Development | 83.3 | 0 |
Property and equipment | (93.4) | (101.2) |
Deferred Tax Liabilities, Leasing Arrangements | (29.2) | (40.1) |
Deferred Tax Assets, Leasing Arrangements | 29.2 | 40.5 |
Employee compensation and benefits | 42.1 | 49.3 |
Net operating loss and other loss carryforwards | 21.9 | 22.8 |
Valuation allowance | (16.6) | (17) |
Total net deferred income tax asset | $ 205.9 | $ 157.4 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance as of January 1, | $ 12.4 | $ 13.2 |
Gross increases for tax positions of prior years | 0 | 0.4 |
Gross increases for tax positions of current year | 2.4 | 2.7 |
Decreases due to settlements and other prior year tax positions | (0.6) | (1.7) |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 3.3 | 2.2 |
Balance as of December 31, | 10.9 | 12.4 |
Reserves related to potential interest and penalties as of December 31, | 0.8 | 0.9 |
Unrecognized tax benefits as of December 31, | $ 11.7 | $ 13.3 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Shareholders Equity [Abstract] | |||
Total number of shares repurchased and retired | 4.4 | 3.8 | 0.6 |
Total investment | $ 505 | $ 461.6 | $ 50.3 |
Shareholders' Equity - Cash Div
Shareholders' Equity - Cash Dividends Declared Per Common Share (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Shareholders Equity [Abstract] | ||||||
Quarterly dividend declared and paid per common share | $ 0.64 | $ 0.63 | $ 0.62 | $ 2.56 | $ 2.52 | $ 2.48 |
Shareholders' Equity - Reconcil
Shareholders' Equity - Reconciliation of Weighted Average Number of Shares (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted Average Number of Shares Outstanding [Line Items] | |||
Weighted average number of common shares outstanding | 58.9 | 61 | 61.5 |
Director Plan and deferred stock units | 0.2 | 0.2 | 0.2 |
ESOP | 0.2 | 0.1 | 0.2 |
Common shares outstanding—basic | 59.3 | 61.3 | 61.9 |
Common and potential common shares outstanding—diluted | 60.1 | 62.7 | 62.6 |
Restricted Stock | |||
Weighted Average Number of Shares Outstanding [Line Items] | |||
Dilutive effect of stock awards | 0.4 | 0.7 | 0.5 |
Stock Options | |||
Weighted Average Number of Shares Outstanding [Line Items] | |||
Dilutive effect of stock awards | 0.4 | 0.7 | 0.2 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Accumulated Other Comprehensive Income (Loss) Balances (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2021 | $ (77.4) |
Reclassification to the statement of income | (14.7) |
Change in fair value | 4.6 |
Balance as of December 31, 2022 | (87.5) |
Foreign Currency Translation | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2021 | (69.5) |
Reclassification to the statement of income | 0 |
Change in fair value | (25.3) |
Balance as of December 31, 2022 | (94.8) |
Cash Flow Hedging Derivatives | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2021 | (4.4) |
Reclassification to the statement of income | (15) |
Change in fair value | 29.9 |
Balance as of December 31, 2022 | 10.5 |
Retirement Plan Activity | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2021 | (3.5) |
Reclassification to the statement of income | 0.3 |
Change in fair value | 0 |
Balance as of December 31, 2022 | $ (3.2) |
Shareholders' Equity - Gains an
Shareholders' Equity - Gains and Losses, Net of Tax Reclassified from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | $ 14.7 | $ (8.2) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of sales, Interest expense, Operating Expenses, Other Nonoperating Income (Expense) | |
Foreign exchange contracts, net | Other (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | $ 12.2 | (0.3) |
Foreign exchange contracts, net | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | 2.1 | 0.5 |
Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | 1 | (8.1) |
Other activity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income | $ (0.6) | $ (0.3) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stockholders Equity Note [Line Items] | ||||
Number of shares authorized to be repurchased (in shares) | 349,100,000 | |||
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% | |||
Stock issued during period, shares, employee stock purchase plans (in shares) | 1,600,000 | |||
Common stock excluded from calculation of diluted earnings per share (in shares) | 1,600,000 | 900,000 | 4,400,000 | |
Subsequent Event | ||||
Stockholders Equity Note [Line Items] | ||||
Common stock, dividends per share, declared (in dollars per share) | $ 0.65 |
Financial Services Arrangemen_3
Financial Services Arrangements - Financial Information for Polaris Acceptance Reflecting Effects of Securitization Facility (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Investments [Line Items] | |||
Net income | $ 447.1 | $ 493.9 | $ 124.8 |
Total Assets | 5,217.9 | 5,047.8 | |
Total Liabilities and Partners' Capital | 5,217.9 | 5,047.8 | |
Polaris Acceptance | |||
Schedule of Investments [Line Items] | |||
Revenues | 49.7 | 21.9 | 44.7 |
Interest and operating expenses | 19.5 | 6.6 | 7.6 |
Net income | 30.2 | 15.3 | $ 37.1 |
Finance receivables, net | 1,314.2 | 470.7 | |
Other assets | 20.9 | 29.1 | |
Total Assets | 1,335.1 | 499.8 | |
Notes Payable | 1,076 | 366.9 | |
Other liabilities | 73 | 34.4 | |
Partners' capital | 186.1 | 98.5 | |
Total Liabilities and Partners' Capital | $ 1,335.1 | $ 499.8 | |
Polaris Acceptance | Maximum | |||
Schedule of Investments [Line Items] | |||
Aggregate repurchase obligation | 15% |
Financial Services Arrangemen_4
Financial Services Arrangements - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Investments in and Advances to Affiliates [Line Items] | ||
Investment in finance affiliate | $ 93.1 | $ 49.3 |
Net amount financed for dealers | 1,314.2 | |
Trade receivables, net | 343 | $ 227.9 |
Debt outstanding from dealers | 1,893.9 | |
Polaris Acceptance | ||
Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation, amount | 69.2 | |
Huntington Bancshares Incorporated | ||
Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation, amount | 322.5 | |
Other | ||
Investments in and Advances to Affiliates [Line Items] | ||
Aggregate repurchase obligation, amount | $ 21.8 |
Investment in Other Affiliates
Investment in Other Affiliates (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ||
Investments in and Advances to Affiliates, at Fair Value | $ 23 | $ 50.3 |
Impairment | $ 7.7 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease assets | $ 111 | $ 90.5 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Finance lease assets | $ 7.4 | $ 9.3 |
Total leased assets | 118.4 | 99.8 |
Current operating lease liabilities | $ 24.1 | $ 19.4 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Long-Term Debt and Lease Obligation, Current | Long-Term Debt and Lease Obligation, Current |
Current portion of debt, finance lease obligations and notes payable | $ 1.5 | $ 1.4 |
Long-term operating lease liabilities | 87 | 71.3 |
Finance lease obligations | 9.9 | 12.1 |
Total lease liabilities | 122.5 | 104.2 |
Accumulated amortization | 10.4 | 10 |
Operating expenses and cost of sales | 40 | 33.8 |
Operating expenses and cost of sales | 1.1 | 1.3 |
Interest expense | 0.7 | 0.7 |
Other (income) expense, net | 0 | (0.6) |
Total lease cost | 41.8 | $ 35.2 |
2020 | 26.5 | |
2021 | 21.3 | |
2022 | 17.1 | |
2023 | 14.7 | |
2024 | 10.5 | |
Thereafter | 30.1 | |
Total lease payments | 120.2 | |
Less: interest | 9.1 | |
Present value of lease payments | 111.1 | |
2020 | 2 | |
2021 | 2 | |
2022 | 2 | |
2023 | 2 | |
2024 | 2.1 | |
Thereafter | 3.4 | |
Total lease payments | 13.5 | |
Less: interest | 2.1 | |
Present value of lease payments | 11.4 | |
2020 | 28.5 | |
2021 | 23.3 | |
2022 | 19.1 | |
2023 | 16.7 | |
2024 | 12.6 | |
Thereafter | 33.5 | |
Total lease payments | 133.7 | |
Operating lease, not yet commenced, amount | $ 8.3 | |
Operating leases | 6 years 3 months 3 days | 3 years 6 months 21 days |
Finance leases | 6 years 6 months 14 days | 7 years 5 months 26 days |
Operating leases | 2.45% | 1.15% |
Finance leases | 5.21% | 5.17% |
Operating cash flows from operating leases | $ 40.4 | $ 33.8 |
Operating cash flows from finance leases | 0.6 | 0.8 |
Financing cash flows from finance leases | 1.4 | 1.5 |
Leased assets obtained in exchange for new operating lease liabilities | $ 52.8 | $ 82 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrual for the probable payment of pending claims | $ 107.5 | $ 70.3 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Open Foreign Currency Contracts (Detail) - Cash Flow Hedging - Foreign exchange contracts, net - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | $ 154 | $ 229.3 |
Net Unrealized Gain (Loss) | 8.4 | 2.1 |
Australian Dollar | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 13.7 | 20.3 |
Net Unrealized Gain (Loss) | 0.2 | 0.4 |
Canadian Dollar | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 93.3 | 121.1 |
Net Unrealized Gain (Loss) | 2.5 | 0.6 |
Mexican Peso | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | 47 | 87.9 |
Net Unrealized Gain (Loss) | $ 5.7 | $ 1.1 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Carrying Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Foreign exchange contracts, net | Level 2 | Fair value, measurements, recurring | ||
Derivative [Line Items] | ||
Derivative asset | $ (8.4) | $ (2.1) |
Interest Rate Swap | Level 2 | Fair value, measurements, recurring | ||
Derivative [Line Items] | ||
Derivative Liability | 0 | 7.8 |
Derivative asset | 5.9 | 0 |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative Net Carrying Value | 14.3 | (5.7) |
Designated as Hedging Instrument [Member] | Foreign exchange contracts, net | ||
Derivative [Line Items] | ||
Derivative Net Carrying Value | 8.4 | 2.1 |
Designated as Hedging Instrument [Member] | Foreign exchange contracts, net | Level 2 | Fair value, measurements, recurring | ||
Derivative [Line Items] | ||
Derivative asset | 2.4 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative Net Carrying Value | 5.9 | (7.8) |
Prepaid Expenses And Other Current Assets | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Fair Value— Assets | 14.3 | 2.4 |
Prepaid Expenses And Other Current Assets | Designated as Hedging Instrument [Member] | Interest Rate Swap | ||
Derivative [Line Items] | ||
Fair Value— Assets | 5.9 | 0 |
Fair Value— (Liabilities) | 0 | |
Other Current Liabilities | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Fair Value— (Liabilities) | 0 | (8.1) |
Other Current Liabilities | Designated as Hedging Instrument [Member] | Foreign exchange contracts, net | ||
Derivative [Line Items] | ||
Fair Value— Assets | 8.4 | |
Fair Value— (Liabilities) | $ 0 | $ (0.3) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Unrealized gain (loss) on derivative instruments | $ 14.9 | $ 11.1 | $ (9.4) |
Cash Flow Hedging | |||
Derivative [Line Items] | |||
Unrealized gain (loss) on derivative instruments | $ 14.9 | $ 11.1 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Open Interest Rate Swap Contracts (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Cash Flow Hedging | Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional Amounts (in U.S. dollars) | $ 550 | |
Net Unrealized Gain (Loss) | 5.9 | $ (7.8) |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Net Unrealized Gain (Loss) | 14.3 | (5.7) |
Designated as Hedging Instrument [Member] | Interest Rate Swap | ||
Derivative [Line Items] | ||
Net Unrealized Gain (Loss) | $ 5.9 | $ (7.8) |
Segment Reporting (Detail)
Segment Reporting (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 3 | ||
Segment Reporting Information [Line Items] | |||
Sales | $ 8,589 | $ 7,439.2 | $ 6,281.4 |
Gross profit | 1,959.5 | 1,750.9 | 1,535.7 |
Boats | |||
Segment Reporting Information [Line Items] | |||
Sales | 989.4 | 760.2 | 603.4 |
Off-Road Segment | |||
Segment Reporting Information [Line Items] | |||
Sales | 6,436.2 | 5,574.6 | 4,810 |
On-Road Segment | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,163.4 | 1,031.8 | 806.7 |
Operating Segments [Member] | Boats | |||
Segment Reporting Information [Line Items] | |||
Sales | 989.4 | 760.2 | 603.4 |
Gross profit | 222.5 | 170.6 | 116.4 |
Operating Segments [Member] | Off-Road Segment | |||
Segment Reporting Information [Line Items] | |||
Sales | 6,436.2 | 5,574.6 | 4,810 |
Gross profit | 1,523.4 | 1,329.8 | 1,302 |
Operating Segments [Member] | On-Road Segment | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,163.4 | 1,031.8 | 806.7 |
Gross profit | 206.3 | 160.7 | 95.5 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 0 | 72.6 | 61.3 |
Gross profit | $ 7.3 | $ 89.8 | $ 21.8 |