(Mark one) | |||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||
(Address of principal executive offices) | (Zip Code) | ||||||||||||||||
(Registrant’s telephone number, including area code) | |||||||||||||||||
N/A | |||||||||||||||||
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
x | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | |||||||||||
Item 2 – Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Equity Securities | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade receivables, net | |||||||||||
Inventories, net | |||||||||||
Prepaid expenses and other | |||||||||||
Income taxes receivable | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Investment in finance affiliate | |||||||||||
Deferred tax assets | |||||||||||
Goodwill and other intangible assets, net | |||||||||||
Operating lease assets | |||||||||||
Other long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Equity | |||||||||||
Current liabilities: | |||||||||||
Current financing obligations | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued expenses | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term financing obligations | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | $ | $ | |||||||||
Deferred compensation | $ | $ | |||||||||
Shareholders’ equity: | |||||||||||
Preferred stock $ | |||||||||||
Common stock $ | $ | $ | |||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss, net | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Noncontrolling interest | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling and marketing | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Income from financial services | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Non-operating expense: | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Other (income) expense, net | ( | ( | ( | ( | |||||||||||||||||||
Income from continuing operations before income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income from continuing operations | |||||||||||||||||||||||
Loss from discontinued operations, net of tax | ( | ( | |||||||||||||||||||||
Loss from sale of discontinued operations, net of tax | ( | ( | |||||||||||||||||||||
Net income | |||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interest | ( | ( | |||||||||||||||||||||
Net income attributable to Polaris Inc. | $ | $ | $ | $ | |||||||||||||||||||
Amounts attributable to Polaris Inc. common shareholders: | |||||||||||||||||||||||
Net income from continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Less net income attributable to noncontrolling interest | ( | ( | |||||||||||||||||||||
Net income from continuing operations attributable to Polaris Inc. common shareholders | |||||||||||||||||||||||
Net loss from discontinued operations attributable to Polaris Inc. common shareholders | ( | ( | |||||||||||||||||||||
Net income attributable to Polaris Inc. | $ | $ | $ | $ | |||||||||||||||||||
Net income (loss) per share attributable to Polaris Inc. common shareholders: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Discontinued operations | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | |||||||||||||||||||||||
Continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Discontinued operations | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ||||||||||||||||||||
Unrealized gain on derivative instruments | ( | ||||||||||||||||||||||
Retirement plan and other activity | |||||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interest | ( | ( | |||||||||||||||||||||
Comprehensive income attributable to Polaris Inc. | $ | $ | $ | $ |
Number of Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non Controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Employee stock compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Deferred compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Proceeds from stock issuances under employee plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Cash dividends declared (1) | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchase and retirement of common shares | ( | * | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | ( |
Number of Shares | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Non Controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Employee stock compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Deferred compensation | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Proceeds from stock issuances under employee plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Cash dividends declared (1) | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchase and retirement of common shares | ( | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | ( | ( |
Number of Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non Controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Employee stock compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Deferred compensation | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||
Proceeds from stock issuances under employee plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Cash dividends declared (2) | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchase and retirement of common shares | ( | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | ( |
Number of Shares | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Non Controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Employee stock compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Deferred compensation | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Proceeds from stock issuances under employee plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Cash dividends declared (2) | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchase and retirement of common shares | ( | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | ( | ( |
Nine months ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Operating Activities: | |||||||||||
Net income | $ | $ | |||||||||
Loss from discontinued operations, net of tax | |||||||||||
Loss from sale of discontinued operations, net of tax | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Noncash compensation | |||||||||||
Noncash income from financial services | ( | ( | |||||||||
Deferred income taxes | ( | ||||||||||
Other, net | ( | ( | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade receivables | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Accounts payable | |||||||||||
Accrued expenses | |||||||||||
Income taxes payable/receivable | ( | ( | |||||||||
Prepaid expenses and others, net | |||||||||||
Net cash provided by operating activities of continuing operations | |||||||||||
Net cash used for operating activities of discontinued operations | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Investing Activities: | |||||||||||
Purchase of property and equipment | ( | ( | |||||||||
Investment in finance affiliate, net | ( | ||||||||||
Investments in and distributions from other affiliates | ( | ||||||||||
Acquisitions and disposals of businesses, net of cash acquired | ( | ||||||||||
Net cash used for investing activities of continuing operations | ( | ( | |||||||||
Net cash used for investing activities of discontinued operations | ( | ||||||||||
Net cash used for investing activities | ( | ( | |||||||||
Financing Activities: | |||||||||||
Borrowings under financing obligations | |||||||||||
Repayments under financing obligations | ( | ( | |||||||||
Repurchase and retirement of common shares | ( | ( | |||||||||
Cash dividends to shareholders | ( | ( | |||||||||
Proceeds from stock issuances under employee plans | |||||||||||
Net cash used for financing activities | ( | ( | |||||||||
Impact of currency exchange rates on cash balances | ( | ||||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
Supplemental Cash Flow Information: | |||||||||||
Interest paid on debt borrowings | $ | $ | |||||||||
Income taxes paid | $ | $ | |||||||||
Leased assets obtained for operating lease liabilities | $ | $ | |||||||||
The following presents the classification of cash, cash equivalents and restricted cash within the consolidated balance sheets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Other long-term assets | |||||||||||
Total | $ | $ |
Input Level | September 30, 2023 | December 31, 2022 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Non-qualified deferred compensation assets | Level 1 | $ | $ | |||||||||||||||||
Foreign exchange contracts, net | Level 2 | $ | $ | |||||||||||||||||
Interest rate contracts, net | Level 2 | $ | $ | |||||||||||||||||
Commodity contracts, net | Level 2 | $ | $ | |||||||||||||||||
Liabilities | ||||||||||||||||||||
Non-qualified deferred compensation liabilities | Level 1 | $ | ( | $ | ( | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Additions charged to expense | |||||||||||||||||||||||
Warranty claims paid, net | ( | ( | ( | ( | |||||||||||||||||||
Balance at end of period | $ | $ | $ | $ |
In millions | September 30, 2023 | December 31, 2022 | ||||||||||||
Inventories | ||||||||||||||
Raw materials and purchased components | $ | $ | ||||||||||||
Service parts, garments and accessories | ||||||||||||||
Finished goods | ||||||||||||||
Less: reserves | ( | ( | ||||||||||||
Inventories, net | $ | $ | ||||||||||||
Property and equipment | ||||||||||||||
Land, buildings and improvements | $ | $ | ||||||||||||
Equipment and tooling | ||||||||||||||
Less: accumulated depreciation | ( | ( | ||||||||||||
Property and equipment, net | $ | $ | ||||||||||||
Accrued expenses | ||||||||||||||
Compensation | $ | $ | ||||||||||||
Warranties | ||||||||||||||
Sales promotions and incentives | ||||||||||||||
Dealer holdback | ||||||||||||||
Other accrued expenses | ||||||||||||||
Total accrued expenses | $ | $ | ||||||||||||
Other current liabilities | ||||||||||||||
Current operating lease liabilities | ||||||||||||||
Income taxes payable | ||||||||||||||
Total other current liabilities | $ | $ | ||||||||||||
Other long-term liabilities | ||||||||||||||
Long-term operating lease liabilities | $ | $ | ||||||||||||
Long-term income taxes payable | ||||||||||||||
Deferred tax liabilities | ||||||||||||||
Other long-term liabilities | ||||||||||||||
Total other long-term liabilities | $ | $ |
Three months ended September 30, 2023 | |||||||||||||||||||||||
Off Road | On Road | Marine | Total | ||||||||||||||||||||
Revenue by product type | |||||||||||||||||||||||
Wholegoods | $ | $ | $ | $ | |||||||||||||||||||
PG&A | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | |||||||||||||||||||
Revenue by geography | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Canada | |||||||||||||||||||||||
EMEA | |||||||||||||||||||||||
APLA | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | |||||||||||||||||||
Three months ended September 30, 2022 | |||||||||||||||||||||||
Off Road | On Road | Marine | Total | ||||||||||||||||||||
Revenue by product type | |||||||||||||||||||||||
Wholegoods | $ | $ | $ | $ | |||||||||||||||||||
PG&A | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | |||||||||||||||||||
Revenue by geography | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Canada | |||||||||||||||||||||||
EMEA | |||||||||||||||||||||||
APLA | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
Nine months ended September 30, 2023 | |||||||||||||||||||||||
Off Road | On Road | Marine | Total | ||||||||||||||||||||
Revenue by product type | |||||||||||||||||||||||
Wholegoods | $ | $ | $ | $ | |||||||||||||||||||
PG&A | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | |||||||||||||||||||
Revenue by geography | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Canada | |||||||||||||||||||||||
EMEA | |||||||||||||||||||||||
APLA | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | |||||||||||||||||||
Nine months ended September 30, 2022 | |||||||||||||||||||||||
Off Road | On Road | Marine | Total | ||||||||||||||||||||
Revenue by product type | |||||||||||||||||||||||
Wholegoods | $ | $ | $ | $ | |||||||||||||||||||
PG&A | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | |||||||||||||||||||
Revenue by geography | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Canada | |||||||||||||||||||||||
EMEA | |||||||||||||||||||||||
APLA | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
New contracts sold | |||||||||||||||||||||||
Revenue recognized on existing contracts | ( | ( | ( | ( | |||||||||||||||||||
Balance at end of period | $ | $ | $ | $ |
Three months ended September 30, 2022 | Nine months ended September 30, 2022 | ||||||||||
Sales | $ | $ | |||||||||
Cost of sales | |||||||||||
Other costs and expenses | |||||||||||
Loss from discontinued operations before income taxes | ( | ( | |||||||||
Income tax benefit | ( | ||||||||||
Loss from discontinued operations, net of tax | ( | ( | |||||||||
Impairment of discontinued operations | |||||||||||
Income tax benefit | ( | ||||||||||
Impairment of discontinued operations, net of tax | |||||||||||
Net loss from discontinued operations | $ | ( | $ | ( |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Option awards | $ | $ | $ | $ | |||||||||||||||||||
Other share-based awards | |||||||||||||||||||||||
Total share-based compensation before tax | |||||||||||||||||||||||
Tax benefit | |||||||||||||||||||||||
Total share-based compensation expense included in net income | $ | $ | $ | $ |
Average interest rate as of September 30, 2023 | Maturity | September 30, 2023 | December 31, 2022 | ||||||||||||||||||||
Incremental term loan | December 2023 | $ | $ | ||||||||||||||||||||
Revolving loan facility | June 2026 | ||||||||||||||||||||||
Term loan facility | June 2026 | ||||||||||||||||||||||
Senior notes—fixed rate | July 2028 | ||||||||||||||||||||||
Finance lease obligations | Various through 2029 | ||||||||||||||||||||||
Notes payable and other | Various through 2030 | ||||||||||||||||||||||
Debt issuance costs | ( | ( | |||||||||||||||||||||
Total financing obligations | $ | $ | |||||||||||||||||||||
Less: Current financing obligations | |||||||||||||||||||||||
Long-term financing obligations | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Goodwill | $ | $ | |||||||||
Other intangible assets, net | |||||||||||
Total goodwill and other intangible assets, net | $ | $ |
Off Road | On Road | Marine | Total | ||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | $ | |||||||||||||||||||
Goodwill acquired and related adjustments | — | — | |||||||||||||||||||||
Currency translation effect on foreign goodwill balances | ( | ( | — | ( | |||||||||||||||||||
Balance as of September 30, 2023 | $ | $ | $ | $ |
Off Road | On Road | Marine | Total | ||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | $ | |||||||||||||||||||
Currency translation effect on foreign goodwill balances | ( | ( | — | ( | |||||||||||||||||||
Balance as of September 30, 2022 | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
Weighted-average useful life (years) | Cost | Accumulated amortization | Net | Cost | Accumulated amortization | Net | |||||||||||||||||||||||
Definite-life intangibles | |||||||||||||||||||||||||||||
Dealer/customer related | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||
Indefinite-life intangibles | |||||||||||||||||||||||||||||
Brand/trade names | — | — | |||||||||||||||||||||||||||
Total other intangible assets, net | $ | $ | ( | $ | $ | $ | ( | $ |
Remainder 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | ||||||||||||||||||||||||||||||
Estimated amortization expense | $ | $ | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Cash dividends declared and paid per common share | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Weighted average number of common shares outstanding | |||||||||||||||||||||||
Director Plan and deferred stock units | |||||||||||||||||||||||
ESOP | |||||||||||||||||||||||
Common shares outstanding—basic | |||||||||||||||||||||||
Dilutive effect of restricted stock units | |||||||||||||||||||||||
Dilutive effect of stock option awards | |||||||||||||||||||||||
Common and potential common shares outstanding—diluted |
Foreign Currency Translation | Cash Flow Hedging Derivatives | Retirement Plan Activity | Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Balance as of December 31, 2022 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Reclassification to the statement of income | — | ( | ( | ||||||||||||||||||||
Change in fair value | — | ||||||||||||||||||||||
Balance as of September 30, 2023 | $ | ( | $ | $ | ( | $ | ( |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Notional Value (in U.S. Dollars) | Fair Value — Assets | Fair Value — Liabilities | Notional Value (in U.S. Dollars) | Fair Value — Assets | Fair Value — Liabilities | ||||||||||||||||||||||||||||||
Foreign currency contracts | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||||||||||||
Commodity contracts | ( | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | $ |
Derivatives Designated as Cash Flow Hedges | Location of Gain (Loss) Reclassified from Accumulated OCI into Income | Gain (Loss) Reclassified from AOCI into Income | Gain (Loss) Recognized in OCI | |||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | Cost of sales | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||
Interest rate contracts | Interest expense | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Other (income) expense, net | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ( | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Sales | |||||||||||||||||||||||
Off Road | $ | $ | $ | $ | |||||||||||||||||||
On Road | |||||||||||||||||||||||
Marine | |||||||||||||||||||||||
Total sales | $ | $ | $ | $ | |||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Off Road | $ | $ | $ | $ | |||||||||||||||||||
On Road | |||||||||||||||||||||||
Marine | |||||||||||||||||||||||
Corporate | ( | ||||||||||||||||||||||
Total gross profit | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
($ in millions except percentages and share data) | 2023 | 2022 | Change 2023 vs. 2022 | 2023 | 2022 | Change 2023 vs. 2022 | |||||||||||||||||||||||||||||
Sales | $ | 2,248.9 | $ | 2,340.6 | (4) | % | $ | 6,645.2 | $ | 6,184.9 | 7 | % | |||||||||||||||||||||||
Cost of sales | $ | 1,740.1 | $ | 1,781.4 | (2) | % | $ | 5,162.2 | $ | 4,798.4 | 8 | % | |||||||||||||||||||||||
Gross profit | $ | 508.8 | $ | 559.2 | (9) | % | $ | 1,483.0 | $ | 1,386.5 | 7 | % | |||||||||||||||||||||||
Percentage of sales | 22.6 | % | 23.9 | % | -127 bps | 22.3 | % | 22.4 | % | -10 bps | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Selling and marketing | $ | 145.1 | $ | 120.7 | 20 | % | $ | 415.3 | $ | 347.8 | 19 | % | |||||||||||||||||||||||
Research and development | $ | 91.8 | $ | 98.5 | (7) | % | $ | 281.5 | $ | 266.1 | 6 | % | |||||||||||||||||||||||
General and administrative | $ | 91.3 | $ | 97.8 | (7) | % | $ | 285.9 | $ | 258.7 | 11 | % | |||||||||||||||||||||||
Total operating expenses | $ | 328.2 | $ | 317.0 | 4 | % | $ | 982.7 | $ | 872.6 | 13 | % | |||||||||||||||||||||||
Percentage of sales | 14.6 | % | 13.5 | % | +105 bps | 14.8 | % | 14.1 | % | +68 bps | |||||||||||||||||||||||||
Income from financial services | $ | 20.5 | $ | 12.1 | 69 | % | $ | 57.9 | $ | 33.7 | 72 | % | |||||||||||||||||||||||
Operating income | $ | 201.1 | $ | 254.3 | (21) | % | $ | 558.2 | $ | 547.6 | 2 | % | |||||||||||||||||||||||
Non-operating expense: | |||||||||||||||||||||||||||||||||||
Interest expense | $ | 32.5 | $ | 20.1 | 62 | % | $ | 92.2 | $ | 46.8 | 97 | % | |||||||||||||||||||||||
Other (income) expense, net | $ | (13.1) | $ | (7.4) | 77 | % | $ | (33.6) | $ | (13.9) | 142 | % | |||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 181.7 | $ | 241.6 | (25) | % | $ | 499.6 | $ | 514.7 | (3) | % | |||||||||||||||||||||||
Provision for income taxes | $ | 30.2 | $ | 50.9 | (41) | % | $ | 100.2 | $ | 107.9 | (7) | % | |||||||||||||||||||||||
Effective income tax rate | 16.6 | % | 21.1 | % | -443 bps | 20.1 | % | 21.0 | % | -89 bps | |||||||||||||||||||||||||
Net income from continuing operations | $ | 151.5 | $ | 190.7 | (21) | % | $ | 399.4 | $ | 406.8 | (2) | % | |||||||||||||||||||||||
Net income attributable to noncontrolling interest | $ | 0.2 | $ | (0.3) | NM | $ | — | $ | (0.5) | NM | |||||||||||||||||||||||||
Net income from continuing operations attributable to Polaris Inc. shareholders | $ | 151.7 | $ | 190.4 | (20) | % | $ | 399.4 | $ | 406.3 | (2) | % | |||||||||||||||||||||||
Percentage of sales | 6.7 | % | 8.1 | % | -139 bps | 6.0 | % | 6.6 | % | -56 bps | |||||||||||||||||||||||||
Adjusted EBITDA | $ | 282.6 | $ | 319.8 | (12) | % | $ | 786.2 | $ | 738.7 | 6 | % | |||||||||||||||||||||||
Adjusted EBITDA Margin | 12.6 | % | 13.7 | % | -110 bps | 11.8 | % | 11.9 | % | -11 bps | |||||||||||||||||||||||||
Diluted net income from continuing operations per share attributable to Polaris Inc. shareholders | $ | 2.62 | $ | 3.17 | (17) | % | $ | 6.90 | $ | 6.71 | 3 | % | |||||||||||||||||||||||
Weighted average diluted shares outstanding | 57.8 | 60.0 | (4) | % | 57.9 | 60.6 | (4) | % | |||||||||||||||||||||||||||
NM = not meaningful |
Percent change in total Company sales compared to corresponding period of the prior year | |||||||||||
Three months ended | Nine months ended | ||||||||||
September 30, 2023 | September 30, 2023 | ||||||||||
Volume | (5) | % | 5 | % | |||||||
Product mix and price | 1 | 2 | |||||||||
Currency | — | — | |||||||||
(4) | % | 7 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | 2023 | Percent of Total Sales | 2022 | Percent of Total Sales | Percent Change 2023 vs. 2022 | 2023 | Percent of Total Sales | 2022 | Percent of Total Sales | Percent Change 2023 vs. 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 1,845.5 | 82 | % | $ | 1,915.1 | 82 | % | (4) | % | $ | 5,285.9 | 80 | % | $ | 4,861.3 | 79 | % | 9 | % | |||||||||||||||||||||||||||||||||||||||
Canada | 140.0 | 6 | % | 153.6 | 6 | % | (9) | % | 425.1 | 6 | % | 446.9 | 7 | % | (5) | % | |||||||||||||||||||||||||||||||||||||||||||
Other countries | 263.4 | 12 | % | 271.9 | 12 | % | (3) | % | 934.2 | 14 | % | 876.7 | 14 | % | 7 | % | |||||||||||||||||||||||||||||||||||||||||||
Total sales | $ | 2,248.9 | 100 | % | $ | 2,340.6 | 100 | % | (4) | % | $ | 6,645.2 | 100 | % | $ | 6,184.9 | 100 | % | 7 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | 2023 | Percent of Total Cost of Sales | 2022 | Percent of Total Cost of Sales | Percent Change 2023 vs. 2022 | 2023 | Percent of Total Cost of Sales | 2022 | Percent of Total Cost of Sales | Percent Change 2023 vs. 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
Purchased materials and services | $ | 1,442.1 | 83 | % | $ | 1,504.6 | 84 | % | (4) | % | $ | 4,299.6 | 83 | % | $ | 4,067.8 | 85 | % | 6 | % | |||||||||||||||||||||||||||||||||||||||
Labor and benefits | 195.7 | 11 | % | 171.1 | 10 | % | 14 | % | 573.5 | 11 | % | 475.4 | 10 | % | 21 | % | |||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 53.0 | 3 | % | 45.2 | 3 | % | 17 | % | 147.4 | 3 | % | 134.0 | 3 | % | 10 | % | |||||||||||||||||||||||||||||||||||||||||||
Warranty costs | 49.3 | 3 | % | 60.5 | 3 | % | (19) | % | 141.7 | 3 | % | 121.2 | 2 | % | 17 | % | |||||||||||||||||||||||||||||||||||||||||||
Total cost of sales | $ | 1,740.1 | 100 | % | $ | 1,781.4 | 100 | % | (2) | % | $ | 5,162.2 | 100 | % | $ | 4,798.4 | 100 | % | 8 | % | |||||||||||||||||||||||||||||||||||||||
Percentage of sales | 77.4 | % | 76.1 | % | +127 bps | 77.7 | % | 77.6 | % | +10 bps |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | 2023 | Percent of Sales | 2022 | Percent of Sales | Percent Change 2023 vs. 2022 | 2023 | Percent of Sales | 2022 | Percent of Sales | Percent Change 2023 vs. 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
Off Road | $ | 1,844.4 | 82 | % | $ | 1,746.4 | 75 | % | 6 | % | $ | 5,067.6 | 76 | % | $ | 4,578.9 | 74 | % | 11 | % | |||||||||||||||||||||||||||||||||||||||
On Road | 270.3 | 12 | % | 334.0 | 14 | % | (19) | % | 955.4 | 15 | % | 861.3 | 14 | % | 11 | % | |||||||||||||||||||||||||||||||||||||||||||
Marine | 134.2 | 6 | % | 260.2 | 11 | % | (48) | % | 622.2 | 9 | % | 744.7 | 12 | % | (16) | % | |||||||||||||||||||||||||||||||||||||||||||
Total sales | $ | 2,248.9 | 100 | % | $ | 2,340.6 | 100 | % | (4) | % | $ | 6,645.2 | 100 | % | $ | 6,184.9 | 100 | % | 7 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | 2023 | Percent of Sales | 2022 | Percent of Sales | Percent Change 2023 vs. 2022 | 2023 | Percent of Sales | 2022 | Percent of Sales | Percent Change 2023 vs. 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
Off Road | $ | 425.5 | 23.1 | % | $ | 449.2 | 25.7 | % | (5) | % | $ | 1,122.6 | 22.2 | % | $ | 1,062.1 | 23.2 | % | 6 | % | |||||||||||||||||||||||||||||||||||||||
On Road | 57.7 | 21.3 | % | 60.1 | 18.0 | % | (4) | % | 208.7 | 21.8 | % | 154.7 | 18.0 | % | 35 | % | |||||||||||||||||||||||||||||||||||||||||||
Marine | 24.3 | 18.1 | % | 55.9 | 21.5 | % | (57) | % | 143.3 | 23.0 | % | 169.0 | 22.7 | % | (15) | % | |||||||||||||||||||||||||||||||||||||||||||
Corporate | 1.3 | (6.0) | 8.4 | 0.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gross profit | $ | 508.8 | $ | 559.2 | (9) | % | $ | 1,483.0 | $ | 1,386.5 | 7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Percentage of sales | 22.6 | % | 23.9 | % | -127 bps | 22.3 | % | 22.4 | % | -10 bps |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
($ in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Sales | $ | 2,248.9 | $ | 2,340.6 | $ | 6,645.2 | $ | 6,184.9 | |||||||||||||||
Net income from continuing operations | 151.5 | 190.7 | 399.4 | 406.8 | |||||||||||||||||||
Provision for income taxes | 30.2 | 50.9 | 100.2 | 107.9 | |||||||||||||||||||
Interest expense | 32.5 | 20.1 | 92.2 | 46.8 | |||||||||||||||||||
Depreciation | 62.0 | 51.7 | 173.6 | 155.6 | |||||||||||||||||||
Intangible amortization | 4.4 | 4.5 | 13.3 | 14.3 | |||||||||||||||||||
Distributions from other affiliates | — | (0.7) | — | (0.7) | |||||||||||||||||||
Acquisition-related costs (1) | 0.7 | — | 0.7 | — | |||||||||||||||||||
Restructuring and realignment expenses (2) | 0.9 | 1.2 | 1.4 | 5.5 | |||||||||||||||||||
Class action litigation expenses (3) | 0.4 | 1.4 | 5.4 | 2.5 | |||||||||||||||||||
Adjusted EBITDA | $ | 282.6 | $ | 319.8 | $ | 786.2 | $ | 738.7 | |||||||||||||||
Adjusted EBITDA Margin | 12.6 | % | 13.7 | % | 11.8 | % | 11.9 | % |
($ in millions) | Nine months ended September 30, | ||||||||||||||||
2023 | 2022 | Change | |||||||||||||||
Total cash provided by (used for): | |||||||||||||||||
Operating activities | $ | 376.0 | $ | 139.4 | $ | 236.6 | |||||||||||
Investing activities | (345.9) | (152.9) | (193.0) | ||||||||||||||
Financing activities | (61.4) | (125.3) | 63.9 |
Foreign Currency | Foreign currency hedging contracts | ||||||||||||||||
Currency Position | Notional amounts (in millions of U.S. Dollars) | Average exchange rate of open contracts | |||||||||||||||
Australian Dollar | Long | $ | 9.4 | $0.68 to 1 AUD | |||||||||||||
Canadian Dollar | Long | 170.4 | $0.75 to 1 CAD | ||||||||||||||
Mexican Peso | Short | 52.1 | 20 Peso to $1 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (1) | |||||||||||||||||||
July 1 — 31, 2023 | 60,000 | $ | 135.40 | 60,000 | $ | 254,113,847 | |||||||||||||||||
August 1 — 31, 2023 | 320,000 | $ | 122.80 | 320,000 | $ | 214,832,173 | |||||||||||||||||
September 1 — 30, 2023 | 100,000 | $ | 108.20 | 100,000 | $ | 204,010,314 | |||||||||||||||||
Total / Average | 480,000 | $ | 121.30 | 480,000 |
Exhibit Number | Description | |||||||
Certificate of Incorporation of Polaris Inc. incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed May 1, 2023. | ||||||||
Bylaws of Polaris Inc. incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed May 1, 2023. | ||||||||
Certification of Chief Executive Officer required by Exchange Act Rule 13a-14(a). | ||||||||
Certification of Chief Financial Officer required by Exchange Act Rule 13a-14(a). | ||||||||
Certification furnished pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification furnished pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
101 | The following financial information from Polaris Inc.’s Quarterly Report on Form 10-Q for the period ended September 30, 2023, filed with the SEC on October 24, 2023, formatted in Inline eXtensible Business Reporting Language (iXBRL): (i) the Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022, (ii) the Consolidated Statements of Income for the three and nine month periods ended September 30, 2023 and 2022, (iii) the Consolidated Statements of Comprehensive Income for the three and nine month periods ended September 30, 2023 and 2022, (iv) the Consolidated Statements of Equity for the three and nine month periods ended September 30, 2023 and 2022, (v) the Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2023 and 2022, and (vi) Notes to Consolidated Financial Statements. | |||||||
104 | The cover page from the Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2023 formatted in iXBRL. |
POLARIS INC. (Registrant) | |||||||||||
Date: | October 24, 2023 | /s/ MICHAEL T. SPEETZEN | |||||||||
Michael T. Speetzen Chief Executive Officer (Principal Executive Officer) | |||||||||||
Date: | October 24, 2023 | /s/ ROBERT P. MACK | |||||||||
Robert P. Mack Chief Financial Officer (Principal Financial and Accounting Officer) |
/s/ MICHAEL T. SPEETZEN | ||
Michael T. Speetzen | ||
Chief Executive Officer |
/s/ ROBERT P. MACK | ||
Robert P. Mack | ||
Chief Financial Officer |
/s/ MICHAEL T. SPEETZEN | ||
Michael T. Speetzen | ||
Chief Executive Officer |
/s/ ROBERT P. MACK | ||
Robert P. Mack | ||
Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000.0 | 20,000,000.0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 160,000,000.0 | 160,000,000.0 |
Common stock, shares issued (in shares) | 56,500,000 | 57,000,000.0 |
Common stock, shares outstanding (in shares) | 56,500,000 | 57,000,000.0 |
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 151.5 | $ 186.6 | $ 399.4 | $ 252.1 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | (16.8) | (33.5) | 3.5 | (64.4) |
Unrealized gain on derivative instruments | (0.4) | 8.2 | 3.5 | 22.6 |
Retirement plan and other activity | 0.0 | 0.0 | 0.2 | 0.2 |
Comprehensive income | 134.3 | 161.3 | 406.6 | 210.5 |
Comprehensive (income) loss attributable to noncontrolling interest | 0.2 | (0.3) | 0.0 | (0.5) |
Comprehensive income attributable to Polaris Inc. | $ 134.5 | $ 161.0 | $ 406.6 | $ 210.0 |
Consolidated Statements of Equity (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared and paid per common share (in dollars per share) | $ 0.65 | $ 0.64 | $ 1.95 | $ 1.92 |
Basis of Presentation and Significant Accounting Policies |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of presentation. The accompanying unaudited consolidated financial statements of Polaris Inc. (“Polaris” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and, therefore, do not include all information and disclosures of results of operations, financial position, and changes in cash flow in conformity with accounting principles generally accepted in the United States for complete financial statements. Accordingly, such statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 previously filed with the Securities and Exchange Commission (“SEC”). In the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, equity, and cash flows for the periods presented. Due to the seasonality trends for certain products and to certain changes in production and shipping cycles, results of such periods are not necessarily indicative of the results to be expected for the complete year. Reclassifications. 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. 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. 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, interest rate contracts, and commodity contracts. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities, and for the income approach, the Company uses significant other observable inputs to value its derivative instruments used to hedge foreign currency, interest rate transactions, and commodity transactions. Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions):
Fair value of other financial instruments. The carrying values of the Company’s short-term financial instruments, including cash and cash equivalents, trade receivables, accounts payable and current financing obligations, approximate their fair values due to their short-term nature. As of September 30, 2023 and December 31, 2022, the fair value of the Company’s current and long-term financing obligations was approximately $2,207.3 million and $2,070.3 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 current and long-term financing obligations was $2,209.5 million and $2,057.8 million as of September 30, 2023 and December 31, 2022, respectively. Property and equipment. Depreciation expense was $62.0 million and $51.7 million for the three months ended September 30, 2023 and 2022, respectively, and $173.6 million and $155.6 million for the nine months ended September 30, 2023 and 2022, respectively. Substantially all of the Company’s property and equipment is located in North America. Product warranties. The activity in the warranty reserve during the periods presented was as follows (in millions):
New accounting pronouncements. There are no new accounting pronouncements that are expected to have a significant impact on the Company’s consolidated financial statements.
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Supplemental Balance Sheet Information |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information
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Revenue Recognition |
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Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue RecognitionThe 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. The following tables disaggregate the Company's revenue by major product type and geography (in millions):
For the majority of wholegood vehicles, boats, and Parts, Garments, and Accessories (“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 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, parts, garments or accessories has transferred to the customer as an expense in cost of sales. Financial Products. The Company sells separately-priced extended 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. 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 activity in the deferred revenue reserve during the periods presented was as follows (in millions):
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Divestitures and Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Divestitures and Discontinued Operations | Divestitures and Discontinued Operations 2022 Divestitures. On July 1, 2022, the Company completed the sale of its TAP business, an aftermarket parts business, for a sales price, net of post-closing purchase price adjustments, of $42.2 million. The results of TAP have been presented as discontinued operations. TAP was historically included within 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 2022 segment results were reclassified for comparability. Results of discontinued operations were as follows (in millions):
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Share-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation Total share-based compensation expenses were comprised as follows (in millions):
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. As of September 30, 2023, there was $60.1 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 1.5 years. Included in unrecognized share-based compensation expense was approximately $7.1 million related to stock options and $53.0 million related to restricted stock.
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Financing Agreements |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Agreements | Financing Agreements The carrying value of financing obligations and the average related interest rates were as follows (in millions):
In December 2010, the Company entered into 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 that 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 $792.0 million was outstanding as of September 30, 2023. In June 2021, the Company further amended its unsecured credit facility to increase its Revolving Loan Facility to $1.0 billion, of which $507.7 million was outstanding as of September 30, 2023, and extend the maturity date to June 2026. 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 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 $45.0 million over the next 12 months. These payments are classified as current maturities in the consolidated balance sheets. The agreements governing the credit 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 September 30, 2023. 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 that 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 $49.4 million was outstanding as of September 30, 2023. The outstanding balance is included in long-term financing obligations and current financing obligations in the consolidated balance sheets.
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Goodwill and Other Intangible Assets |
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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 September 30, 2023 and December 31, 2022 are as follows (in millions):
The changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2023 and 2022 are as follows (in millions):
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 $20.3 million were allocated to the Off Road and On Road segments, respectively, on a relative fair value basis. The goodwill amounts above are shown net of these impairment charges. The components of other intangible assets were as follows ($ in millions):
Amortization expense for intangible assets was $4.4 million and $4.5 million for the three months ended September 30, 2023 and 2022, respectively, and $13.3 million and $14.3 million for the nine months ended September 30, 2023 and 2022, respectively. Estimated future amortization expense for identifiable intangible assets during the next five years is as follows (in millions):
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.
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Shareholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders’ Equity During the nine months ended September 30, 2023, the Company paid $159.4 million to repurchase approximately 1.4 million shares of its common stock. As of September 30, 2023, the Board of Directors has authorized the Company to repurchase up to an additional $204.0 million of the Company’s common stock. The Company paid a regular cash dividend of $0.65 per share on September 15, 2023 to holders of record at the close of business on September 1, 2023. Cash dividends declared and paid per common share for the three and nine months ended September 30, 2023 and 2022 were as follows:
Net income per share Basic income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period, including shares earned under the Deferred Compensation Plan for Directors (“Director Plan”), the ESOP and deferred stock units under the 2007 Omnibus Incentive Plan (“Omnibus Plan”). Diluted income per share is computed under the treasury stock method and is calculated to compute the dilutive effect of outstanding stock options and certain share-based awards issued under the Omnibus Plan. A reconciliation of these amounts is as follows (in millions):
During the three and nine months ended September 30, 2023, the number of options that were not included in the computation of diluted income per share because the option exercise price was greater than the market price, and therefore the effect would have been anti-dilutive, were 1.0 million and 1.4 million, respectively, compared to 1.4 million and 1.6 million for the comparable periods in 2022. Accumulated other comprehensive loss Changes in the accumulated other comprehensive loss balance were as follows (in millions):
See Note 11 for the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the statements of income for cash flow derivatives designated as hedging instruments.
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Financial Services Arrangements |
9 Months Ended |
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Sep. 30, 2023 | |
Investments in and Advances to Affiliates, Schedule of Investments [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 snowmobiles, off-road vehicles (“ORV”), 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. 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 $109.7 million as of September 30, 2023 is accounted for under the equity method and is recorded in investment in finance affiliate in the consolidated balance sheets. As of September 30, 2023, the outstanding amount of net receivables financed for dealers under this arrangement was $1,705.9 million. 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 2023, the potential 15 percent aggregate repurchase obligation is approximately $110.5 million. 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 September 30, 2023, the potential aggregate repurchase obligation was approximately $288.1 million. The Company has other financing arrangements related to its foreign subsidiaries in which it has agreed to repurchase repossessed products. For calendar year 2023, the potential aggregate repurchase obligations are approximately $24.4 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 these agreements during the periods presented. The Company has agreements with third-party financing companies to provide financing options to end consumers of the Company’s products. The Company has no material contingent liabilities for residual value or credit collection risk under these agreements. The Company’s income generated from these agreements has been included as a component of income from financial services in the consolidated statements of income.
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Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2023 | |
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 September 30, 2023, the Company had an accrual of $98.2 million 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 September 30, 2023, the Company is party to putative class actions pending against the Company in the United States which are described in more detail in Part II, Item 1 – 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 of potential outcomes of actual and potential claims, including legal proceedings seeking punitive damages for which we are not insured, the uncertainty of future rulings, the behavior or incentives of adverse parties, and other factors outside of 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.
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company is exposed to certain risks from fluctuations in foreign currency exchange rates, interest rates, and commodity prices. To reduce its exposure to such risks, the Company selectively uses derivative financial instruments. 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 derivative contracts contain credit risk to the extent that our bank counterparties may be unable to meet the terms of the agreements. The amount of such credit risk is generally limited to the unrealized gains, if any, in such contracts. Such risk is minimized by limiting those counterparties to major financial institutions of high credit quality. The Company conducts business in various locations throughout the world and is subject to market risk associated with certain product sourcing activities and intercompany cash flows due to changes in the value of foreign currencies in relation to its reporting currency, the U.S. dollar. 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 Company utilizes foreign currency exchange contracts to mitigate the effects of foreign currency exchange rate fluctuations related to the Australian dollar, Canadian dollar, and Mexican peso. The Company's foreign currency exchange contracts generally have maturities of less than one year. The Company’s open foreign currency contracts, with maturities through June 2024, met the criteria for cash flow hedges. The Company manages its interest rate risk by balancing its exposure to fixed and variable rates while attempting to optimize its interest costs. The Company enters into interest rate swap transactions to hedge the variable interest rate payments for the Term Loan Facility. In connection with these contracts, the Company pays interest based upon a fixed rate and receives variable rate interest payments based on adjusted Term SOFR. These contracts, with maturities through February 2026, met the criteria for cash flow hedges. 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 commodity contracts generally have maturities of less than one year. The notional and fair values of the Company’s derivative financial instruments designated as cash flow hedges were as follows (in millions):
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 amounts of gains and losses related to the Company’s derivative financial instruments designated as cash flow hedges were as follows (in millions):
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 is recognized currently in the consolidated statements of income and were not material for the periods presented. The net amount of the existing gains or losses as of September 30, 2023 that is expected to be reclassified into the statements of income within the next 12 months is not expected to be material.
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Segment Reporting |
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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 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. 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 costs that are not allocated to segments, including certain unallocated manufacturing costs and the impacts from certain foreign currency transactions. 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):
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 151.7 | $ 186.3 | $ 399.4 | $ 251.6 |
Insider Trading Arrangements |
3 Months Ended | 9 Months Ended |
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Sep. 30, 2023
shares
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Sep. 30, 2023
shares
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Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
James P. Williams [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 4, 2023, James P. Williams, the Company’s Chief Human Resources Officer, entered into a written plan for the sale of an aggregate 159,609 shares of common stock. The plan is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, and is scheduled to terminate no later than August 4, 2025. | |
Name | James P. Williams | |
Title | Chief Human Resources Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 4, 2023 | |
Arrangement Duration | 731 days | |
Aggregate Available | 159,609 | 159,609 |
Basis of Presentation and Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of presentation | Basis of presentation. The accompanying unaudited consolidated financial statements of Polaris Inc. (“Polaris” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and, therefore, do not include all information and disclosures of results of operations, financial position, and changes in cash flow in conformity with accounting principles generally accepted in the United States for complete financial statements. Accordingly, such statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 previously filed with the Securities and Exchange Commission (“SEC”). In the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, equity, and cash flows for the periods presented. Due to the seasonality trends for certain products and to certain changes in production and shipping cycles, results of such periods are not necessarily indicative of the results to be expected for the complete year. Reclassifications. 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. 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.
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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, interest rate contracts, and commodity contracts. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities, and for the income approach, the Company uses significant other observable inputs to value its derivative instruments used to hedge foreign currency, interest rate transactions, and commodity transactions. Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions):
Fair value of other financial instruments. The carrying values of the Company’s short-term financial instruments, including cash and cash equivalents, trade receivables, accounts payable and current financing obligations, approximate their fair values due to their short-term nature. As of September 30, 2023 and December 31, 2022, the fair value of the Company’s current and long-term financing obligations was approximately $2,207.3 million and $2,070.3 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 current and long-term financing obligations was $2,209.5 million and $2,057.8 million as of September 30, 2023 and December 31, 2022, respectively.
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Property and equipment | Property and equipment. Depreciation expense was $62.0 million and $51.7 million for the three months ended September 30, 2023 and 2022, respectively, and $173.6 million and $155.6 million for the nine months ended September 30, 2023 and 2022, respectively. Substantially all of the Company’s property and equipment is located in North America. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product warranties | Product warranties. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements | New accounting pronouncements. There are no new accounting pronouncements that are expected to have a significant impact on the Company’s consolidated financial statements.
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Basis of Presentation and Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions):
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Schedule of activity in the warranty reserve | The activity in the warranty reserve during the periods presented was as follows (in millions):
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Supplemental Balance Sheet Information (Tables) |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in Balance Sheet |
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Revenue Recognition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables disaggregate the Company's revenue by major product type and geography (in millions):
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Deferred Revenue, by Arrangement, Disclosure | The activity in the deferred revenue reserve during the periods presented was as follows (in millions):
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Divestitures and Discontinued Operations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Group Activity | Results of discontinued operations were as follows (in millions):
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Share-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of share-based compensation expenses | Total share-based compensation expenses were comprised as follows (in millions):
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Financing Agreements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Finance Lease Obligations | The carrying value of financing obligations and the average related interest rates were as follows (in millions):
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Goodwill and Other Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of intangible assets and goodwill | Goodwill and other intangible assets, net of accumulated amortization, as of September 30, 2023 and December 31, 2022 are as follows (in millions):
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Schedule of changes in carrying amount of goodwill | The changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2023 and 2022 are as follows (in millions):
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Schedule of components of other intangible assets | The components of other intangible assets were as follows ($ in millions):
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future amortization expense for identifiable intangible assets during the next five years is as follows (in millions):
|
Shareholders' Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of cash dividends declared per common share | Cash dividends declared and paid per common share for the three and nine months ended September 30, 2023 and 2022 were as follows:
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Schedule of reconciliation of weighted average number of shares | A reconciliation of these amounts is as follows (in millions):
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Schedule of changes in accumulated other comprehensive income (loss) balances | Changes in the accumulated other comprehensive loss balance were as follows (in millions):
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Derivative Instruments and Hedging Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The notional and fair values of the Company’s derivative financial instruments designated as cash flow hedges were as follows (in millions):
|
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Schedule of gains and losses, net of tax, reclassified from accumulated other comprehensive income into the income statement for cash flow derivatives designated as hedging instruments | The amounts of gains and losses related to the Company’s derivative financial instruments designated as cash flow hedges were as follows (in millions):
|
Segment Reporting (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Segment sales and gross profit data is summarized as follows (in millions):
|
Basis of Presentation and Significant Accounting Policies - Property and Equipment, Net (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Property, Plant and Equipment [Line Items] | |||||
Land, buildings and improvements | $ 622.7 | $ 622.7 | $ 539.1 | ||
Equipment and tooling | 1,857.5 | 1,857.5 | 1,645.0 | ||
Property, Plant and Equipment, Gross | 2,480.2 | 2,480.2 | 2,184.1 | ||
Less: accumulated depreciation | (1,318.7) | (1,318.7) | (1,165.7) | ||
Property and equipment, net | 1,161.5 | 1,161.5 | $ 1,018.4 | ||
Depreciation expense | $ 62.0 | $ 51.7 | $ 173.6 | $ 155.6 |
Basis of Presentation and Significant Accounting Policies - Property and equipment narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Accounting Policies [Abstract] | ||||
Depreciation expense | $ 62.0 | $ 51.7 | $ 173.6 | $ 155.6 |
Basis of Presentation and Significant Accounting Policies - Activity in Polaris Accrued Warranty Reserve (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Activity in Product Warranty Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 154.6 | $ 128.7 | $ 172.9 | $ 132.9 |
Additions charged to expense | 49.3 | 60.5 | 141.7 | 121.2 |
Warranty claims paid, net | (40.9) | (32.1) | (151.6) | (97.0) |
Balance at end of period | $ 163.0 | $ 157.1 | $ 163.0 | $ 157.1 |
Basis of Presentation and Significant Accounting Policies - Deferred Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Deferred Revenue Arrangement [Line Items] | ||||||||
Deferred Revenue | $ 107.2 | $ 112.0 | $ 107.2 | $ 112.0 | $ 108.7 | $ 111.1 | $ 113.6 | $ 108.3 |
New contracts sold | 9.9 | 10.7 | 35.2 | 38.5 | ||||
Revenue recognized on existing contracts | (11.4) | (12.3) | (39.1) | (34.8) | ||||
Deferred revenue, current | 34.3 | 35.8 | 34.3 | 35.8 | ||||
Deferred revenue, noncurrent | $ 72.9 | $ 76.2 | $ 72.9 | $ 76.2 |
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | $ 34.3 | $ 35.8 |
Deferred revenue, noncurrent | $ 72.9 | $ 76.2 |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Extended service warranty period | 12 months | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Extended service warranty period | 84 months |
Revenue Recognition - Deferred Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue Recognition [Abstract] | ||||
Balance at beginning of period | $ 108.7 | $ 113.6 | $ 111.1 | $ 108.3 |
New contracts sold | 9.9 | 10.7 | 35.2 | 38.5 |
Revenue recognized on existing contracts | (11.4) | (12.3) | (39.1) | (34.8) |
Balance at end of period | $ 107.2 | $ 112.0 | $ 107.2 | $ 112.0 |
Divestitures and Discontinued Operations (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
| |
Discontinued Operations and Disposal Groups [Abstract] | |
Proceeds from Divestiture of Businesses | $ 42.2 |
Divestitures and Discontinued Operations - Results of Discontinued Operations (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Discontinued Operations and Disposal Groups [Abstract] | ||||
Sales | $ 0.0 | $ 349.3 | ||
Cost of sales | 0.0 | 262.9 | ||
Other costs and expenses | 2.0 | 99.5 | ||
Loss from discontinued operations before income taxes | (2.0) | (13.1) | ||
Income tax benefit | 1.5 | (1.2) | ||
Loss from discontinued operations, net of tax | (3.5) | $ 0.0 | (11.9) | |
Impairment of discontinued operations | 0.0 | 187.8 | ||
Income tax benefit | 0.6 | (45.0) | ||
Impairment of discontinued operations, net of tax | 0.6 | 0.0 | 142.8 | |
Net loss from discontinued operations | $ 0.0 | $ (4.1) | $ 0.0 | $ (154.7) |
Share-Based Compensation Expenses (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-Based Payment Arrangement [Abstract] | ||||
Option awards | $ 2.0 | $ 2.5 | $ 9.7 | $ 9.7 |
Other share-based awards | 7.9 | 12.8 | 24.7 | 28.6 |
Total share-based compensation before tax | 9.9 | 15.3 | 34.4 | 38.3 |
Tax benefit | 2.4 | 3.7 | 8.2 | 9.2 |
Total share-based compensation expense included in net income | $ 7.5 | $ 11.6 | $ 26.2 | $ 29.1 |
Share-Based Compensation - Additional Information (Detail) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Share-Based Payment Arrangement [Abstract] | |
Unrecognized compensation cost related to unvested share-based equity awards | $ 60.1 |
Weighted average period of recognition of unvested share-based equity awards | 1 year 6 months |
Unrecognized compensation cost related to unvested share-based equity awards, stock options | $ 7.1 |
Unrecognized compensation cost related to unvested share-based equity awards, restricted stock | $ 53.0 |
Financing Agreements - Additional Information (Detail) $ in Millions |
Jun. 30, 2021
USD ($)
|
Sep. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
Dec. 17, 2021
USD ($)
|
Jul. 31, 2018
USD ($)
|
Jul. 02, 2018
USD ($)
|
---|---|---|---|---|---|---|
Term Loan, 364 Day | ||||||
Debt Instrument [Line Items] | ||||||
Debt face amount | $ 500.0 | |||||
Term loan | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,180.0 | |||||
Revolving loan facility | $ 792.0 | $ 828.0 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,000.0 | |||||
Revolving loan facility | 507.7 | 312.9 | ||||
Repayments of principal in next twelve months | 45.0 | |||||
Minimum interest coverage ratio | 3.00 | |||||
Maximum leverage ratio | 3.50 | |||||
Notes payable, other | Boat Holdings, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 49.4 | $ 76.7 | ||||
Notes payable to banks | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 54.2 | $ 61.4 |
Goodwill and Other Intangible Assets - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 389.4 | $ 386.2 | $ 379.7 | $ 391.3 |
Total other intangible assets, net | 517.7 | 524.4 | ||
Total goodwill and other intangible assets, net | $ 907.1 | $ 910.6 |
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Goodwill [Roll Forward] | ||
Balance as of December 31, 2022 | $ 386.2 | $ 391.3 |
Currency translation effect on foreign goodwill balances | (1.0) | (11.6) |
Balance as of September 30, 2023 | 389.4 | 379.7 |
Goodwill, Acquired During Period | 4.2 | |
Off Road | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2022 | 110.7 | 111.7 |
Currency translation effect on foreign goodwill balances | (0.3) | (1.5) |
Balance as of September 30, 2023 | 114.6 | 110.2 |
Goodwill, Acquired During Period | 4.2 | |
On Road | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2022 | 48.4 | 52.5 |
Currency translation effect on foreign goodwill balances | (0.7) | (10.1) |
Balance as of September 30, 2023 | 47.7 | 42.4 |
Marine | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2022 | 227.1 | 227.1 |
Balance as of September 30, 2023 | $ 227.1 | $ 227.1 |
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Detail) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Intangible Assets by Major Class [Line Items] | ||
Total other intangible assets, net | $ 517.7 | $ 524.4 |
Total other intangible assets, net | $ 610.9 | 604.4 |
Dealer/customer related | ||
Intangible Assets by Major Class [Line Items] | ||
Weighted-average useful life (years) | 19 years | |
Cost | $ 341.6 | 341.7 |
Accumulated amortization | (93.2) | (80.0) |
Net | 248.4 | 261.7 |
Brand/trade names | ||
Intangible Assets by Major Class [Line Items] | ||
Non-amortizable—brand/trade names | $ 269.3 | $ 262.7 |
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2020 |
|
Goodwill [Line Items] | |||||
Goodwill impairment loss | $ 270.3 | ||||
Amortization of intangible assets | $ 4.4 | $ 4.5 | $ 13.3 | $ 14.3 | |
Estimated Future Amortization Expense by Fiscal Year [Abstract] | |||||
Remainder 2023 | 4.4 | 4.4 | |||
2024 | 17.7 | 17.7 | |||
2025 | 17.7 | 17.7 | |||
2026 | 17.7 | 17.7 | |||
2027 | 17.7 | 17.7 | |||
2028 | 17.7 | 17.7 | |||
Off Road | |||||
Goodwill [Line Items] | |||||
Accumulated impairment loss | 60.8 | 60.8 | |||
On Road | |||||
Goodwill [Line Items] | |||||
Accumulated impairment loss | $ 20.3 | $ 20.3 |
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchase and retirement of common stock | $ 58.3 | $ 206.2 | $ 159.4 | $ 378.5 |
Number of shares authorized to be repurchased (in shares) | 204.0 | 204.0 | ||
Cash dividend paid during period, per share (in dollars per share) | $ 0.65 | $ 0.64 | $ 1.95 | $ 1.92 |
Common stock excluded from calculation of diluted earnings per share (shares) | 1.0 | 1.4 | 1.4 | 1.6 |
Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchase and retirement of common stock (shares) | 0.5 | 1.7 | 1.4 | 3.2 |
Shareholders' Equity - Cash Dividends Declared Per Common Share (Details) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Equity [Abstract] | ||||
Cash dividends declared and paid per common share (in dollars per share) | $ 0.65 | $ 0.64 | $ 1.95 | $ 1.92 |
Shareholders' Equity - Reconciliation of Weighted Average Number of Shares (Detail) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average number of common shares outstanding (in shares) | 56.6 | 58.8 | 56.8 | 59.4 |
Director Plan and deferred stock units (in shares) | 0.2 | 0.2 | 0.2 | 0.2 |
ESOP (in shares) | 0.2 | 0.2 | 0.2 | 0.2 |
Common shares outstanding - basic (in shares) | 57.0 | 59.2 | 57.2 | 59.8 |
Common and potential common shares outstanding - diluted (in shares) | 57.8 | 60.0 | 57.9 | 60.6 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dilutive effect of stock (in shares) | 0.4 | 0.4 | 0.4 | 0.4 |
Stock options award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dilutive effect of stock (in shares) | 0.4 | 0.4 | 0.3 | 0.4 |
Commitments and Contingencies - Additional Information (Detail) $ in Millions |
Sep. 30, 2023
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Accrual for the probable payment of pending claims | $ 98.2 |
Derivative Instruments and Hedging Activities - Carrying Values of Derivative Instruments (Detail) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 664.2 | $ 704.0 |
Fair Value — Assets | 19.2 | 14.3 |
Fair Value — Liabilities | (1.2) | 0.0 |
Foreign currency contracts | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 231.9 | 154.0 |
Fair Value — Assets | 10.0 | 8.4 |
Fair Value — Liabilities | (0.7) | 0.0 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 400.0 | 550.0 |
Fair Value — Assets | 7.9 | 5.9 |
Fair Value — Liabilities | 0.0 | 0.0 |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 32.3 | 0.0 |
Fair Value — Assets | 1.3 | 0.0 |
Fair Value — Liabilities | $ (0.5) | $ 0.0 |
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