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Financing Agreement | 12 Months Ended
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Dec. 31, 2017
Debt Disclosure [Abstract] |
Financing Agreement | Financing Agreement Debt, capital lease obligations, notes payable and the average related interest rates were as follows (in thousands):
| Average interest rate at December 31, 2017 |  | Maturity |  | December 31, 2017 |  | December 31, 2016
Revolving loan facility | 2.56% |  | May 2021 |  | $ | 3,000 |  |  | $ | 172,142 |
Term loan facility | 2.66% |  | May 2021 |  | 680,000 |  |  | 740,000 |
Senior notes—fixed rate | 3.81% |  | May 2018 |  | 25,000 |  |  | 25,000 |
Senior notes—fixed rate | 4.60% |  | May 2021 |  | 75,000 |  |  | 75,000 |
Senior notes—fixed rate | 3.13% |  | December 2020 |  | 100,000 |  |  | 100,000 |
Capital lease obligations | 5.20% |  | Various through 2029 |  | 19,889 |  |  | 19,306 |
Notes payable and other | 3.40% |  | June 2027 |  | 12,384 |  |  | 13,618 |
Debt issuance costs |  |  |  |  | (2,261 | ) |  | (3,156 | )
Total debt, capital lease obligations, and notes payable |  |  |  |  | $ | 913,012 |  |  | $ | 1,141,910 |
Less: current maturities |  |  |  |  | 47,746 |  |  | 3,847 |
Total long-term debt, capital lease obligations, and notes payable |  |  |  |  | $ | 865,266 |  |  | $ | 1,138,063 |
Bank financing. In August 2011, Polaris entered into a $350,000,000 unsecured revolving loan facility. In March 2015, Polaris amended the loan facility to increase the facility to $500,000,000 and to provide more beneficial covenant and interest rate terms. The amended terms also extended the expiration date to March 2020. Interest is charged at rates based on a LIBOR or “prime” base rate. In May 2016, Polaris amended the revolving loan facility to increase the facility to $600,000,000 and extend the expiration date to May 2021. The amended terms also established a $500,000,000 term loan facility. In November 2016, Polaris amended the revolving loan facility to increase the term loan facility to $750,000,000, of which $680,000,000 is outstanding as of December 31, 2017. In December 2010, the Company entered into a Master Note Purchase Agreement to issue $25,000,000 of unsecured senior notes due May 2018 and $75,000,000 of unsecured senior notes due May 2021 (collectively, the “Senior Notes”). The Senior Notes were issued in May 2011. In December 2013, the Company entered into a First Supplement to Master Note Purchase Agreement, under which the Company issued $100,000,000 of unsecured senior notes due December 2020. The unsecured loan facility and the amended Master Note Purchase Agreement contain covenants that require Polaris to maintain certain financial ratios, including minimum interest coverage and maximum leverage ratios. Polaris was in compliance with all such covenants as of December 31, 2017. 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 our consolidated statements of income over the expected remaining terms of the related debt. A property lease agreement for a manufacturing facility which Polaris began occupying in Opole, Poland commenced in February 2014. The Poland property lease is accounted for as a capital lease. The Company has a mortgage note payable agreement for land, on which Polaris built the Huntsville, Alabama manufacturing facility in 2016. The original mortgage note payable was for $14,500,000, of which $12,083,000 is outstanding as of December 31, 2017. The payment of principal and interest for the note payable is forgivable if the Company satisfies certain job commitments over the term of the note. The Company has met the required commitments to date. Forgivable loans related to other Company facilities are also included within notes payable. The following summarizes activity under Polaris’ credit arrangements (dollars in thousands):
| 2017 |  | 2016 |  | 2015
Total borrowings at December 31 | $ | 883,000 |  |  | $ | 1,112,142 |  |  | $ | 425,707 |
Average outstanding borrowings during year | $ | 1,133,641 |  |  | $ | 638,614 |  |  | $ | 403,097 |
Maximum outstanding borrowings during year | $ | 1,319,105 |  |  | $ | 1,234,337 |  |  | $ | 523,097 |
Interest rate at December 31 | 2.91 | % |  | 2.25 | % |  | 2.33 | %
Letters of credit. At December 31, 2017, Polaris had open letters of credit totaling $20,339,000. The amounts are primarily related to inventory purchases and are reduced as the purchases are received. Dealer financing programs. Certain finance companies, including Polaris Acceptance, an affiliate (see Note 9), provide floor plan financing to dealers on the purchase of Polaris products. The amount financed by worldwide dealers under these arrangements at December 31, 2017, was approximately $1,422,244,000. Polaris has agreed to repurchase products repossessed by the finance companies up to an annual maximum of no more than 15 percent of the average month-end balances outstanding during the prior calendar year. Polaris’ financial exposure under these arrangements is limited to the difference between the amount paid to the finance companies for repurchases and the amount received on the resale of the repossessed product. No material losses have been incurred under these agreements during the periods presented. As a part of its marketing program, Polaris contributes to the cost of dealer financing up to certain limits and subject to certain conditions. Such expenditures are included as an offset to sales in the accompanying consolidated statements of income.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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