XML 20 R9.htm IDEA: XBRL DOCUMENT
v3.19.1

Revenue Recognition (Notes) | 3 Months Ended
--- | ---
Mar. 31, 2019
Revenue Recognition [Abstract] |
Revenue Recognition, Sales of Goods [Policy Text Block] | Note 2. Revenue Recognition The following tables disaggregate the Company’s revenue by major product type and geography (in thousands):
| Three months ended March 31, 2019
| ORV / Snowmobiles |  | Motorcycles |  | Global Adj. Markets |  | Aftermarket |  | Boats |  | Consolidated
Revenue by product type |  |  |  |  |  |  |  |  |  |  |
Wholegoods | $ | 700,862 |  |  | $ | 102,349 |  |  | $ | 84,669 |  |  | — |  |  | $ | 184,810 |  |  | $ | 1,072,690 |
PG&A | 166,585 |  |  | 15,593 |  |  | 20,287 |  |  | $ | 220,535 |  |  | — |  |  | 423,000 |
Total revenue | $ | 867,447 |  |  | $ | 117,942 |  |  | $ | 104,956 |  |  | $ | 220,535 |  |  | $ | 184,810 |  |  | $ | 1,495,690 |
Revenue by geography |  |  |  |  |  |  |  |  |  |  |
United States | $ | 708,870 |  |  | $ | 67,897 |  |  | $ | 51,683 |  |  | $ | 211,616 |  |  | $ | 180,860 |  |  | $ | 1,220,926 |
Canada | 51,631 |  |  | 6,021 |  |  | 1,053 |  |  | 8,919 |  |  | 3,950 |  |  | 71,574 |
EMEA | 78,726 |  |  | 30,716 |  |  | 51,403 |  |  | — |  |  | — |  |  | 160,845 |
APLA | 28,220 |  |  | 13,308 |  |  | 817 |  |  | — |  |  | — |  |  | 42,345 |
Total revenue | $ | 867,447 |  |  | $ | 117,942 |  |  | $ | 104,956 |  |  | $ | 220,535 |  |  | $ | 184,810 |  |  | $ | 1,495,690 |
| Three months ended March 31, 2018
| ORV / Snowmobiles |  | Motorcycles |  | Global Adj. Markets |  | Aftermarket |  | Boats |  | Consolidated
Revenue by product type |  |  |  |  |  |  |  |  |  |  |
Wholegoods | $ | 683,504 |  |  | $ | 114,108 |  |  | $ | 92,012 |  |  | — |  |  | $ | — |  |  | $ | 889,624 |
PG&A | 149,060 |  |  | 17,449 |  |  | 21,315 |  |  | $ | 220,025 |  |  | — |  |  | 407,849 |
Total revenue | $ | 832,564 |  |  | $ | 131,557 |  |  | $ | 113,327 |  |  | $ | 220,025 |  |  | $ | — |  |  | $ | 1,297,473 |
Revenue by geography |  |  |  |  |  |  |  |  |  |  |
United States | $ | 662,595 |  |  | $ | 83,897 |  |  | $ | 50,053 |  |  | $ | 210,994 |  |  | $ | — |  |  | $ | 1,007,539 |
Canada | 57,755 |  |  | 6,940 |  |  | 5,369 |  |  | 9,031 |  |  | — |  |  | 79,095 |
EMEA | 78,929 |  |  | 26,671 |  |  | 56,921 |  |  | — |  |  | — |  |  | 162,521 |
APLA | 33,285 |  |  | 14,049 |  |  | 984 |  |  | — |  |  | — |  |  | 48,318 |
Total revenue | $ | 832,564 |  |  | $ | 131,557 |  |  | $ | 113,327 |  |  | $ | 220,025 |  |  | $ | — |  |  | $ | 1,297,473 |
Revenue is recognized when obligations under the terms of a contract with the Company’s customer are satisfied which generally occurs with the transfer of control of the wholegood vehicles, boats, parts, garments or accessories, and upon completion of the service or over the term of the agreement in proportion to the costs expected to be incurred in satisfying the obligations under the contract, for services. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Sales, value add, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. The expected costs associated with the Company’s limited warranties and field service bulletin actions continue to be recognized as expense when the products are sold. The Company recognizes revenue for vehicle service contracts that extend mechanical and maintenance beyond the Company’s limited warranties over the life of the contract. 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 deferred revenue section. ORV/Snowmobiles, Motorcycles and Global Adjacent Markets segments Wholegood vehicles and parts, garments and accessories. For the majority of wholegood vehicles, 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 (primarily dealers and distributors). The amount of consideration the Company receives and revenue it recognizes varies with changes in marketing incentives and rebates it offers to its dealers and their customers. Sales returns are not material. 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 (e.g., free extended service contracts). 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, parts, garments or accessories has transferred to the customer as an expense in cost of sales. Extended Service Contracts. The Company sells separately-priced service contracts that extend mechanical and maintenance coverages beyond its base limited warranty agreements to vehicle owners. The separately priced service contracts range from 12 months to 84 months. The Company primarily 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. Aftermarket segment The Company’s Aftermarket products are sold through dealer, distributor, retail, and e-commerce channels. The Company transfers control and recognizes a sale when products are shipped or delivered 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 and their customers. When the Company gives its customers the right to return eligible parts and accessories, it estimates the expected returns based on an analysis of historical experience. 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. Service revenue. The Company offers installation services for parts that it sells. Service revenues are recognized upon completion of the service. 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 (e.g., extended service contracts). 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 parts, garments or accessories has transferred to the customer as an expense in cost of sales. Boats segment Boats. For the majority of boats, the Company transfers control and recognizes a sale when it ships the product from its manufacturing facility or distribution center to its customer (primarily dealers). The amount of consideration the Company receives and revenue it recognizes varies with changes in marketing incentives and rebates it offers to its dealers and their customers. Sales returns are not material. 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. The Company has elected to recognize the cost for freight and shipping when control over boats has transferred to the customer as an expense in cost of sales. Deferred revenue In 2016, Polaris began financing its self-insured risks related to extended service contracts (“ESCs”). The premiums for ESCs are primarily recognized in income in proportion to the costs expected to be incurred over the contract period. Warranty costs are recognized as incurred. The Company expects to recognize approximately $27,219,000 of the unearned amount over the next 12 months and $36,281,000 thereafter. The activity in the deferred revenue reserve during the periods presented was as follows (in thousands):
| Three months ended March 31,
| 2019 |  | 2018
Balance at beginning of period | $ | 59,915 |  |  | $ | 45,760 |
New contracts sold | 9,889 |  |  | 8,324 |
Less: reductions for revenue recognized | (6,304 | ) |  | (4,739 | )
Balance at end of period (1) | $ | 63,500 |  |  | $ | 49,345 |
(1) The unamortized ESC premiums (deferred revenue) recorded in other current liabilities totaled $27,219,000 and $20,510,000 at March 31, 2019 and 2018, respectively, while the amount recorded in other long-term liabilities totaled $36,281,000 and $28,835,000 at March 31, 2019 and 2018, respectively.

X
- References No definition available. + Details
Name: | us-gaap_RevenueRecognitionAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of accounting policy for revenue recognition for the sale of goods, which is a transaction between an entity delivering a tangible good to a purchaser. The entity also may disclose its treatment of any unearned or deferred revenue that arises from the transaction. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18780-107790 + Details
Name: | us-gaap_RevenueRecognitionSalesOfGoods
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration