XML 120 R14.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Financing Agreement | 12 Months Ended
--- | ---
Dec. 31, 2019
Debt Disclosure [Abstract] |
Financing Agreement | Financing Agreement The carrying value of debt, finance lease obligations, and notes payable and the average related interest rates were as follows (in thousands):
| Average interest rate at December 31, 2019 |  | Maturity |  | December 31, 2019 |  | December 31, 2018
Revolving loan facility | 1.10% |  | July 2023 |  | $ | 75,183 |  |  | $ | 187,631 |
Term loan facility | 3.05% |  | July 2023 |  | 1,000,000 |  |  | 1,150,000 |
Senior notes—fixed rate | 4.60% |  | May 2021 |  | 75,000 |  |  | 75,000 |
Senior notes—fixed rate | 3.13% |  | December 2020 |  | 100,000 |  |  | 100,000 |
Senior notes—fixed rate | 4.23% |  | July 2028 |  | 350,000 |  |  | 350,000 |
Finance lease obligations | 5.18% |  | Various through 2029 |  | 16,073 |  |  | 17,587 |
Notes payable and other | 4.23% |  | Various through 2030 |  | 81,388 |  |  | 87,608 |
Debt issuance costs |  |  |  |  | (4,135 | ) |  | (5,256 | )
Total debt, finance lease obligations, and notes payable |  |  |  |  | $ | 1,693,509 |  |  | $ | 1,962,570 |
Less: current maturities |  |  |  |  | 166,695 |  |  | 66,543 |
Total long-term debt, finance lease obligations, and notes payable |  |  |  |  | $ | 1,526,814 |  |  | $ | 1,896,027 |
Bank financing. In July 2018, Polaris amended its unsecured revolving loan facility to increase the facility to $700,000,000 and increase its term loan facility to $1,180,000,000, of which $1,000,000,000 is outstanding as of December 31, 2019. The expiration date of the facility was extended to July 2023, and interest will continue to be charged at rates based on a LIBOR or “prime” base rate. Under the facility, the Company is required to make principal payments totaling $59,000,000 over the next 12 months, which are classified as current maturities in the consolidated balance sheets. 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. In July 2018, the Company entered into a Master Note Purchase Agreement to issue $350,000,000 of unsecured senior notes due July 2028. The unsecured revolving 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, 2019. 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. As a component of the Boat Holdings merger agreement, Polaris 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 $76,733,000, of which $71,722,000 is outstanding as of December 31, 2019. The outstanding balance is included in long-term debt and current portion of long-term debt in the consolidated balance sheets. 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 $9,666,000 is outstanding as of December 31, 2019. The outstanding balance is included in notes payable and other. 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. The following summarizes activity under Polaris’ credit arrangements (dollars in thousands):
| 2019 |  | 2018 |  | 2017
Total borrowings at December 31 | $ | 1,600,183 |  |  | $ | 1,862,631 |  |  | $ | 883,000 |
Average outstanding borrowings during year | $ | 1,911,982 |  |  | $ | 1,474,485 |  |  | $ | 1,133,641 |
Maximum outstanding borrowings during year | $ | 2,127,940 |  |  | $ | 1,999,731 |  |  | $ | 1,319,105 |
Interest rate at December 31 | 3.29 | % |  | 3.64 | % |  | 2.91 | %
Letters of credit. At December 31, 2019, Polaris had open letters of credit totaling $21,637,000. 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, and TCF Financial Corporation (see Note 10), provide floor plan financing to dealers on the purchase of Polaris products. The amount financed by worldwide dealers under these arrangements at December 31, 2019, was approximately $1,884,131,000. 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 for Polaris Acceptance, and 100 percent of the balances outstanding for TCF Financial Corporation. At December 31, 2019, the potential aggregate repurchase obligation was approximately $180,557,000 and $221,500,000 for Polaris Acceptance and TCF Financial Corporation, respectively. 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.

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

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration