10 - YEAR SELECTED FINANCIAL DATA (in thousands, except per share and per unit data)

For the Years Ended December 31,		2003				2002				2001				2000				1999				1998				1997				1996				1995				1994
Statement of Operations Data from continuing operations
Sales data:
Total sales from continuing operations			1,552,351				1,468,170				1,427,400				1,327,030				1,244,782				1,105,685				947,775				985,472				908,988				692,526
% change from prior year			6	%			3	%			8	%			7	%			13	%			17	%			(4	)%			8	%			31	%			49	%
Sales mix by product:
All-terrain vehicles			67	%			64	%			58	%			62	%			59	%			58	%			48	%			44	%			39	%			35	%
Snowmobiles			15	%			20	%			26	%			23	%			25	%			28	%			37	%			42	%			47	%			50	%
Motorcycles			4	%			2	%			1	%			1	%			3	%			1	%			0	%			0	%			0	%			0	%
PG&A			14	%			14	%			15	%			14	%			13	%			13	%			15	%			14	%			14	%			15	%
Gross profit data:
Total gross profit from continuing operations		$	362,876			$	332,432			$	306,307			$	287,969			$	256,611			$	213,381			$	195,027			$	192,131			$	180,913			$	150,582
% of sales			23	%			23	%			21	%			22	%			21	%			19	%			21	%			19	%			20	%			22	%
Operating expenses data from continuing operations:
Amortization of intangibles and noncash compensation		$	14,472			$	16,437			$	16,482			$	12,702			$	10,472			$	8,703			$	5,887			$	5,325			$	5,616			$	14,321
Conversion costs			—				—				—				—				—				—				—				—				—				12,315
Other operating expenses			192,093				166,188				150,386				143,152				119,600				153,903				79,505				76,240				67,163				48,056
% of sales			12	%			11	%			11	%			11	%			10	%			14	%(1)			8	%			8	%			7	%			9	%
Actual and pro forma data:(2)
Net income from continuing operations		$	119,823			$	111,330			$	97,716			$	89,466			$	84,642			$	38,761	(1)		$	75,964			$	70,708			$	64,759			$	54,895
Diluted net income per share from continuing operations		$	2.66			$	2.36			$	2.07			$	1.89			$	1.70			$	0.75	(1)		$	1.42			$	1.27			$	1.17			$	0.99
Net income		$	110,929			$	103,592			$	91,414			$	82,809			$	76,326			$	31,015	(1)		$	65,383			$	62,293			$	60,776			$	54,703
Diluted net income per share		$	2.46			$	2.19			$	1.94			$	1.75			$	1.53			$	0.60	(1)		$	1.22			$	1.12			$	1.09			$	0.99
Cash Flow Data:
Cash flow from continuing operating activities		$	167,793			$	200,601			$	192,034			$	105,055			$	134,469			$	124,701			$	97,655			$	88,872			$	81,215			$	115,773
Purchase of property and equipment from continuing operations			59,209				52,313				52,856				61,590				60,659				56,796				32,389				37,128				38,964				29,482
Repurchase and retirement of common stock			73,125				76,389				49,207				39,622				52,412				37,728				39,903				13,587				—				—
Cash dividends to shareholders			26,657				25,273				22,846				20,648				19,732				18,582				16,958				16,390				116,639				—
Cash dividends per share		$	0.62			$	0.56			$	0.50			$	0.44			$	0.40			$	0.36			$	0.32			$	0.30			$	2.13				—
Cash distributions declared to partners			—				—				—				—				—				—				—				—				—				50,942
Cash distributions declared per unit			—				—				—				—				—				—				—				—				—			$	0.84
Balance Sheet Data (at end of year):
Cash and cash equivalents		$	82,761			$	81,193			$	40,530			$	2,369			$	6,184			$	1,466			$	1,233			$	5,812			$	3,501			$	62,881
Current assets from continuing operations			370,509				330,683				288,617				225,638				196,684				172,745				206,559				167,030				145,493				179,879
Total assets			671,352				608,646				565,163				490,186				442,027				378,697				384,746				351,717				314,436				331,166
Current liabilities from continuing operations			320,909				302,918				292,157				223,142				220,350				192,186				177,310				139,960				132,625				141,045
Borrowings under credit agreement			18,008				18,027				18,043				47,068				40,000				20,500				24,400				35,000				40,200				—
Shareholders’ equity / partners’ capital			319,378				277,106				238,783				204,734				168,227				153,233				169,235				155,330				118,514				169,709

⁽¹⁾ In 1998, Polaris entered into a settlement agreement related to a trade secret infringement claim brought by Injection Research Specialists, Inc. The one-time provision for litigation loss amounted to $61.4 million, or $0.77 per diluted share in 1998. The settlement had no effect on the future operations of the Company. Excluding this charge, other operating expenses, net income and diluted net income per share from continuing operations for 1998 would have been $101.2 million, $78.4 million and $1.52 per share, respectively.

⁽²⁾ The comparability of the information reflected in the Selected Financial data is materially affected by the conversion from a master limited partnership to a corporation on December 22, 1994, which resulted in the Company recording a net deferred tax asset of $65.0 million, conversion expenses of $12.3 million and a corresponding net increase in 1994 net income. Pro forma data is presented to assist in comparing the continuing results of operations of the Company exclusive of the conversion costs and as if the Company was a taxable corporation for each period presented.