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Financial Services Arrangements | 6 Months Ended
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Jun. 30, 2021
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. Polaris Acceptance sells a majority of its receivable portfolio to a securitization facility (the “Securitization Facility”) arranged by Wells Fargo. The sale of receivables from Polaris Acceptance to the Securitization Facility is accounted for in Polaris Acceptance’s financial statements as a “true-sale” under Accounting Standards Codification (“ASC”) Topic 860. The Company’s allocable share of the income of Polaris Acceptance has been included as a component of income from financial services in the accompanying consolidated statements of income. The partnership agreement, as amended and extended in August 2019, is effective through February 2027. The Company’s total investment in Polaris Acceptance of $29.3 million as of June 30, 2021 is accounted for under the equity method, and is recorded in investment in finance affiliate in the accompanying consolidated balance sheets. As of June 30, 2021, the outstanding amount of net receivables financed for dealers under this arrangement was $391.4 million, which included $209.6 million in the Polaris Acceptance portfolio and $181.8 million of receivables within the Securitization Facility (“Securitized Receivables”). 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 2021, the potential 15 percent aggregate repurchase obligation is approximately $138.7 million. A subsidiary of TCF Financial Corporation (“TCF”) 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 TCF up to a maximum of 100 percent of the aggregate outstanding TCF receivables balance. As of June 30, 2021, the potential aggregate repurchase obligation was approximately $55.8 million. The Company has other financing arrangements related to its foreign subsidiaries in which it has agreed to repurchase repossessed products. For calendar year 2021, these potential aggregate repurchase obligations are approximately $27.8 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 Performance Finance, Sheffield Financial and Synchrony Bank, under which these financial institutions provide financing to end consumers of the Company’s products. The Company’s income generated from these agreements has been included as a component of income from financial services in the accompanying consolidated statements of income. The Company also administers and provides extended service contracts to consumers and certain insurance contracts to dealers and consumers through various third-party suppliers. The Company finances its self-insured risks related to extended service contracts, but does not retain any insurance or financial risk under any of the third-party arrangements. The Company’s service fee income generated from these third-party arrangements has been included as a component of income from financial services in the accompanying consolidated statements of income (loss).

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- Definition The entire disclosure for the information summarizing investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates. It reflects specified information about ownership, financial results from, and financial position in such entities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 + Details
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