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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 1-11411
POLARIS INC.
(Exact name of registrant as specified in its charter)
Minnesota41-1790959
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
2100 Highway 55,MedinaMN55340
(Address of principal executive offices)(Zip Code)
763542-0500
(Registrant’s telephone number, including area code)
N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $.01 par valuePIINew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerxAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes      No   x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
As of April 19, 2022, 59,497,259 shares of Common Stock, $.01 par value, of the registrant were outstanding. 
1

 
  POLARIS INC.
FORM 10-Q
For Quarterly Period Ended March 31, 2022
Page
2

Part I FINANCIAL INFORMATION
Item 1 – FINANCIAL STATEMENTS
POLARIS INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except per share data)
March 31, 2022December 31, 2021
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $375.4 $509.2 
Trade receivables, net 251.1 240.5 
Inventories, net 1,879.7 1,644.8 
Prepaid expenses and other 146.7 160.5 
Income taxes receivable 2.2 4.0 
Total current assets2,655.1 2,559.0 
Property and equipment, net978.2 975.4 
Investment in finance affiliate 33.3 49.3 
Deferred tax assets 154.5 163.6 
Goodwill and other intangible assets, net 1,029.4 1,037.5 
Operating lease assets187.0 165.2 
Other long-term assets 91.4 97.8 
Total assets $5,128.9 $5,047.8 
Liabilities and Equity
Current liabilities:
Current portion of debt, finance lease obligations and notes payable $553.3 $553.3 
Accounts payable 978.5 797.4 
Accrued expenses:
Compensation 118.9 223.9 
Warranties 128.3 135.1 
Sales promotions and incentives 79.1 96.9 
Dealer holdback 90.6 98.9 
Other 244.3 268.1 
Current operating lease liabilities43.5 39.3 
Income taxes payable 14.4 17.2 
Total current liabilities 2,250.9 2,230.1 
Long-term income taxes payable 13.7 13.3 
Finance lease obligations11.5 12.1 
Long-term debt 1,382.5 1,235.3 
Deferred tax liabilities5.4 5.5 
Long-term operating lease liabilities146.2 128.5 
Other long-term liabilities 186.7 185.5 
Total liabilities $3,996.9 $3,810.3 
Deferred compensation$11.4 $11.2 
Shareholders’ equity:
Preferred stock 0.01 par value per share, 20.0 shares authorized, no shares issued and outstanding
  
Common stock 0.01 par value per share, 160.0 shares authorized, 59.5 and 60.4 shares issued and outstanding, respectively
$0.6 $0.6 
Additional paid-in capital 1,142.8 1,143.8 
Retained earnings45.0 157.3 
Accumulated other comprehensive loss, net (69.8)(77.4)
Total shareholders’ equity 1,118.6 1,224.3 
Noncontrolling interest2.0 2.0 
Total equity 1,120.6 1,226.3 
Total liabilities and equity $5,128.9 $5,047.8 
The accompanying footnotes are an integral part of these consolidated statements.
3

POLARIS INC.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
Three months ended March 31,
20222021
Sales $1,956.8 $1,951.1 
Cost of sales 1,560.5 1,470.6 
Gross profit 396.3 480.5 
Operating expenses:
Selling and marketing 143.2 145.9 
Research and development 82.8 79.5 
General and administrative 86.9 87.1 
Total operating expenses 312.9 312.5 
Income from financial services 11.4 16.2 
Operating income94.8 184.2 
Non-operating expense:
Interest expense 11.8 11.5 
Other (income) expense, net (3.1)(2.5)
Income before income taxes 86.1 175.2 
Provision for income taxes 16.2 41.0 
Net income69.9 134.2 
Net income attributable to noncontrolling interest (0.1)
Net income attributable to Polaris Inc.$69.9 $134.1 
Net income per share attributable to Polaris Inc. common shareholders:
Basic $1.16 $2.16 
Diluted $1.14 $2.11 
Weighted average shares outstanding:
Basic 60.362.0
Diluted 61.263.4
The accompanying footnotes are an integral part of these consolidated statements.
4

POLARIS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
(Unaudited)
 
Three months ended March 31,
20222021
Net income$69.9 $134.2 
Other comprehensive income, net of tax:
Foreign currency translation adjustments(0.8)(15.6)
Unrealized gain on derivative instruments8.3 1.4 
Retirement plan and other activity0.1 0.1 
Comprehensive income77.5 120.1 
Comprehensive income attributable to noncontrolling interest (0.1)
Comprehensive income attributable to Polaris Inc.$77.5 $120.0 
The accompanying footnotes are an integral part of these consolidated statements.
5

POLARIS INC.
CONSOLIDATED STATEMENTS OF EQUITY
(In millions)
(Unaudited)
 
Number
of Shares
Common
Stock
Additional
Paid-
In Capital
Retained
Earnings
Accumulated Other
Comprehensive
Income (loss)
Non Controlling InterestTotal Equity
Balance, December 31, 2021
60.4 $0.6 $1,143.8 $157.3 $(77.4)$2.0 $1,226.3 
Employee stock compensation
0.4 — 13.3 — — — 13.3 
Deferred compensation
— — (0.7)0.5 — — (0.2)
Proceeds from stock issuances under employee plans
0.2 — 13.9 — — — 13.9 
Cash dividends declared (1)
— — — (37.9)— — (37.9)
Repurchase and retirement of common shares
(1.5)— (27.5)(144.8)— — (172.3)
Net income
— — — 69.9 —  69.9 
Other comprehensive income
— — — — 7.6 — 7.6 
Balance, March 31, 2022
59.5 0.6 1,142.8 45.0 (69.8)2.0 1,120.6 
 
Number
of Shares
Common
Stock
Additional
Paid-
In Capital
Retained
Earnings
Accumulated Other
Comprehensive
Income (loss)
Non Controlling InterestTotal Equity
Balance, December 31, 2020
61.9 $0.6 $983.9 $218.4 $(58.4)$0.3 $1,144.8 
Employee stock compensation
0.3 — 8.9 — — — 8.9 
Deferred compensation
— — (0.5)(5.1)— — (5.6)
Proceeds from stock issuances under employee plans
1.5 — 129.3 — — — 129.3 
Cash dividends declared (1)
— — — (38.6)— — (38.6)
Repurchase and retirement of common shares
(2.5)— (39.1)(260.0)— — (299.1)
Net income
— — — 134.1 — 0.1 134.2 
Contributions— — — — — 1.2 1.2 
Other comprehensive loss
— — — — (14.1)— (14.1)
Balance, March 31, 2021
61.2 0.6 1,082.5 48.8 (72.5)1.6 1,061.0 
(1) Polaris Inc. declared a $0.64 dividend per share for the three month period ended March 31, 2022 and a $0.63 dividend per share for the three month period ended March 31, 2021.

The accompanying footnotes are an integral part of these consolidated statements.

6

POLARIS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three months ended March 31,
20222021
Operating Activities:
Net income$69.9 $134.2 
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation and amortization 61.3 59.6 
Noncash compensation 13.3 8.9 
Noncash income from financial services (2.3)(2.6)
Deferred income taxes 9.4 19.1 
Changes in operating assets and liabilities:
Trade receivables (10.4)14.2 
Inventories (234.9)(169.7)
Accounts payable 181.7 90.7 
Accrued expenses (161.3)(114.0)
Income taxes payable/receivable (0.5)15.6 
Prepaid expenses and others, net 24.7  
Net cash provided by (used for) operating activities (49.1)56.0 
Investing Activities:
Purchase of property and equipment (57.4)(45.4)
Investment in finance affiliate, net 18.2 15.2 
Net cash used for investing activities(39.2)(30.2)
Financing Activities:
Borrowings under debt arrangements568.0 95.4 
Repayments under debt arrangements(420.2)(111.3)
Repurchase and retirement of common shares (172.3)(299.1)
Cash dividends to shareholders (37.9)(38.6)
Proceeds from stock issuances under employee plans 13.9 129.3 
Net cash used for financing activities(48.5)(224.3)
Impact of currency exchange rates on cash balances (0.3)(4.3)
Net decrease in cash, cash equivalents and restricted cash (137.1)(202.8)
Cash, cash equivalents and restricted cash at beginning of period 529.1 657.5 
Cash, cash equivalents and restricted cash at end of period $392.0 $454.7 
Supplemental Cash Flow Information:
Interest paid on debt borrowings$14.8 $13.7 
Income taxes paid$10.1 $6.9 
Leased assets obtained for operating lease liabilities$28.6 $2.7 
The following presents the classification of cash, cash equivalents and restricted cash within the consolidated balance sheets:
Cash and cash equivalents$375.4 $432.4 
Other long-term assets16.6 22.3 
Total$392.0 $454.7 
The accompanying footnotes are an integral part of these consolidated statements.
7

POLARIS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Significant Accounting Policies
Basis of presentation. The accompanying unaudited consolidated financial statements of Polaris Inc. (“Polaris” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and, therefore, do not include all information and disclosures of results of operations, financial position, and changes in cash flow in conformity with accounting principles generally accepted in the United States for complete financial statements. Accordingly, such statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 previously filed with the Securities and Exchange Commission (“SEC”). In the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, equity, and cash flows for the periods presented. Due to the seasonality trends for certain products and to certain changes in production and shipping cycles, results of such periods are not necessarily indicative of the results to be expected for the complete year.
Reclassifications. Reclassifications of certain prior year segment results and account balances have been made to conform to the current-year presentation. The reclassifications had no impact on the consolidated balance sheets, statements of income (loss), comprehensive income (loss), equity, or cash flows, as previously reported. See further information in Note 10.
Fair value measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date:
Level  1 — Quoted prices in active markets for identical assets or liabilities.
Level  2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The Company utilizes the market approach to measure fair value for its non-qualified deferred compensation assets and liabilities, and the income approach for foreign currency contracts and interest rate contracts. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities, and for the income approach, the Company uses significant other observable inputs to value its derivative instruments used to hedge foreign currency and interest rate transactions.
8

Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions):
 Fair Value Measurements as of March 31, 2022
Asset (Liability)TotalLevel 1Level 2Level 3
Non-qualified deferred compensation assets$49.4 $49.4 $— $— 
Foreign exchange contracts, net4.3 — 4.3 — 
Interest rate contracts, net0.9 — 0.9 — 
Total assets at fair value$54.6 $49.4 $5.2 $— 
Non-qualified deferred compensation liabilities$(49.4)$(49.4)$— $— 
Total liabilities at fair value$(49.4)$(49.4)$ $— 
 Fair Value Measurements as of December 31, 2021
Asset (Liability)TotalLevel 1Level 2Level 3
Non-qualified deferred compensation assets$52.4 $52.4 $— $— 
Foreign exchange contracts, net2.1 — 2.1 — 
Total assets at fair value$54.5 $52.4 $2.1 $— 
Non-qualified deferred compensation liabilities$(52.4)$(52.4)$— $— 
Interest rate contracts, net(7.8)— (7.8)— 
Total liabilities at fair value$(60.2)$(52.4)$(7.8)$— 
Fair value of other financial instruments. The carrying values of the Company’s short-term financial instruments, including cash and cash equivalents, trade receivables and short-term debt, including current maturities of long-term debt, finance lease obligations and notes payable, approximate their fair values. As of March 31, 2022 and December 31, 2021, the fair value of the Company’s long-term debt, finance lease obligations and notes payable was approximately $1,987.6 million and $1,870.0 million, respectively, and was determined primarily using Level 2 inputs, including quoted market prices or discounted cash flows based on quoted market rates for similar types of debt. The carrying value of long-term debt, finance lease obligations and notes payable including current maturities was $1,947.3 million and $1,800.7 million as of March 31, 2022 and December 31, 2021, respectively.
Inventories. Inventory costs include material, labor and manufacturing overhead costs, including depreciation expense associated with the manufacture and distribution of the Company’s products. Inventories are stated at the lower of cost or net realizable value with substantially all inventories recorded using the first-in, first-out method. Finished goods include products that are completed and ready for sale or substantially completed as the product has gone through the primary manufacturing and assembly process. The major components of inventories are as follows (in millions):
March 31, 2022December 31, 2021
Raw materials and purchased components$851.2 $720.2 
Service parts, garments and accessories481.8 417.7 
Finished goods627.9 588.2 
Less: reserves(81.2)(81.3)
Inventories, net$1,879.7 $1,644.8 
Property and equipment. Property and equipment is stated at cost. Depreciation is determined using the straight-line method over the estimated useful life of the respective assets, ranging from 10-40 years for buildings and improvements and from 1-7 years for equipment and tooling. Depreciation of assets recorded under finance leases is included within depreciation expense. Fully-depreciated tooling is eliminated from the accounting records annually. The Company recorded $54.4 million and $49.2 million of depreciation expense for the three months ended March 31, 2022 and 2021, respectively.
9

The major components of property and equipment are as follows (in millions):  
March 31, 2022December 31, 2021
Land, buildings and improvements$535.2 $532.2 
Equipment and tooling1,720.9 1,672.2 
2,256.1 2,204.4 
Less: accumulated depreciation(1,277.9)(1,229.0)
Property and equipment, net$978.2 $975.4 
Substantially all of the Company’s property and equipment is located in North America.  
Product warranties. The Company typically provides a limited warranty for its vehicles and boats for a period of six months to ten years, depending on the product. The Company provides longer warranties in certain geographical markets as determined by local regulations and customary practice and may also provide longer warranties related to certain promotional programs. The Company’s standard warranties require the Company, generally through its dealer network, to repair or replace defective products during such warranty periods. The warranty reserve is established at the time of sale to the dealer or distributor based on management’s best estimate using historical rates and trends. The Company records these amounts as a liability in the consolidated balance sheet until they are ultimately paid. Adjustments to the warranty reserve are made based on actual claims experience in order to properly estimate the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. The warranty reserve includes the estimated costs related to recalls, which are accrued when probable and estimable. Factors that could have an impact on the warranty reserve include the following: changes in manufacturing quality, shifts in product mix, changes in warranty coverage periods, impacts on product usage (including weather), product recalls, and changes in sales volume.
The activity in the warranty reserve during the periods presented was as follows (in millions):
Three months ended March 31,
20222021
Balance at beginning of period $135.1 $140.8 
Additions charged to expense 27.1 34.6 
Warranty claims paid, net (33.9)(35.5)
Balance at end of period $128.3 $139.9 
Divestitures.
On October 26, 2021, the Company announced plans to divest its Global Electric Motorcar (GEM) and Taylor-Dunn businesses in an effort to more strategically allocate the Company’s resources. The Company completed the sale on December 31, 2021. The sale resulted in a loss of $36.8 million. The 2021 financial results of these businesses are reflected in the Corporate segment.
New accounting pronouncements.
Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides practical expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The FASB also issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope in January 2021, which adds implementation guidance to clarify which optional expedients in Topic 848 may be applied to derivative instruments that do not reference LIBOR or a reference rate that is expected to be discontinued, but that are being modified as a result of the discounting transition. The Company adopted ASU 2020-04 and ASU 2021-01 on January 1, 2022. The adoption of the ASUs did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows.
There are no other new accounting pronouncements that are expected to have a significant impact on the Company’s consolidated financial statements.

Note 2. Revenue Recognition
The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or service to a customer (primarily dealers and distributors). Revenue is measured based on the amount of consideration that the Company
10

expects to be entitled to in exchange for the goods or services transferred. Sales, value add, and other taxes that are collected from a customer concurrent with revenue-producing activities are excluded from revenue. 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 contract liabilities section.
The following tables disaggregate the Company's revenue by major product type and geography (in millions):
Three months ended March 31, 2022
Off-RoadOn-RoadMarineAftermarketCorporateTotal
Revenue by product type
Wholegoods$1,000.5

$180.5$211.5

$

$$1,392.5
PG&A308.2

38.6217.5

564.3
Total revenue $1,308.7

$219.1$211.5

$217.5

$$1,956.8

Revenue by geography

United States$1,002.6$96.4$207.1$208.0$$1,514.1
Canada133.74.94.49.5152.5
EMEA122.799.6222.3
APLA49.718.267.9
Total revenue $1,308.7$219.1$211.5$217.5$$1,956.8
Three months ended March 31, 2021
Off-RoadOn-RoadMarineAftermarketCorporateTotal
Revenue by product type
Wholegoods$992.1$196.9$198.7$$11.5$1,399.2
PG&A286.232.4229.83.5551.9
Total revenue $1,278.3$229.3$198.7$229.8$15.0$1,951.1
Revenue by geography
United States$1,002.2$99.2$193.4$219.8$14.3$1,528.9
Canada113.05.85.310.0134.1
EMEA112.6105.80.2218.6
APLA50.518.50.569.5
Total revenue $1,278.3$229.3$198.7$229.8$15.0$1,951.1

Off-Road, On-Road, and Marine segments
Wholegood vehicles, boats, and parts, garments and accessories. For the majority of wholegood vehicles, boats, and 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. 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. Payment terms vary by customer and most of the Company’s sales are financed by the customer under floorplan financing arrangements whereby the Company receives payment within a few days of shipment of the product.
When the right of return exists, the Company adjusts the consideration for the estimated effect of returns. The Company estimates expected returns based on historical sales levels, the timing and magnitude of historical sales return levels as a percent of sales, type of product, type of customer, and a projection of this experience into the future. 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. 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
11

when control over vehicles, boats, parts, garments or accessories has transferred to the customer as an expense in cost of sales.
Financial Products. The Company sells separately-priced service contracts (“ESCs”) that extend mechanical coverages beyond the base limited warranty as well as prepaid maintenance agreements to vehicle owners. Each of these separately priced service contracts range from 12 months to 84 months. The Company typically 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. Payment terms vary by customer but typically range from due upon delivery (or point-of-sale) to 180 days after delivery.
When the right of return exists, the Company adjusts the consideration for the estimated effect of returns. The Company estimates expected returns based on historical sales levels, the timing and magnitude of historical sales return levels as a percent of sales, type of product, type of customer and a projection of this experience into the future. 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. 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.
Contract Liabilities
Contract liabilities relate to deferred revenue recognized for cash consideration received at contract inception in advance of the Company's performance under the respective contract and generally relate to the sale of separately priced ESCs. The Company finances its self-insured risks related to 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 $46.0 million of the unearned amount over the next 12 months and $86.8 million thereafter. The activity in the deferred revenue reserve during the periods presented was as follows (in millions):
Three months ended March 31,
20222021
Balance at beginning of period$126.4 $107.1 
New contracts sold18.2 20.6 
Less: reductions for revenue recognized(11.8)(11.1)
Balance at end of period (1)
$132.8 $116.6 
(1) The unamortized ESC premiums recorded in other current liabilities totaled $46.0 million and $40.8 million as of March 31, 2022 and 2021, respectively, while the amount recorded in other long-term liabilities totaled $86.8 million and $75.8 million as of March 31, 2022 and 2021, respectively.

Note 3. Share-Based Compensation
The amount of compensation cost for share-based awards recognized during a period is based on the portion of the awards that are ultimately expected to vest. The Company estimates forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company analyzes historical data to estimate pre-vesting forfeitures and records share-based compensation expense for those awards expected to vest.
12

Total share-based compensation expenses were comprised as follows (in millions):
Three months ended March 31,
20222021
Option awards$5.1 $3.0 
Other share-based awards 5.5 6.6 
Total share-based compensation before tax 10.6 9.6 
Tax benefit 2.6 2.3 
Total share-based compensation expense included in net income$8.0 $7.3 
In addition to the above share-based compensation expenses, the Company sponsors a qualified non-leveraged employee stock ownership plan (ESOP). Shares allocated to eligible participants’ accounts vest at various percentage rates based on years of service and require no cash payments from the recipient.
As of March 31, 2022, there was $84.0 million of total unrecognized share-based compensation expense related to unvested share-based equity awards. Unrecognized share-based compensation expense is expected to be recognized over a weighted-average period of 1.8 years. Included in unrecognized share-based compensation expense was approximately $11.1 million related to stock options and $72.9 million related to restricted stock.

Note 4. Financing Agreements
The carrying value of debt, finance lease obligations, and notes payable and the average related interest rates were as follows (in millions):
Average interest rate as of March 31, 2022MaturityMarch 31, 2022December 31, 2021
Revolving loan facility1.46%June 2026$160.0 $ 
Term loan facility1.58%June 2026864.0 876.0 
Incremental term loan1.33%December 2022500.0 500.0 
Senior notes—fixed rate4.23%July 2028350.0 350.0 
Finance lease obligations5.21%Various through 202912.9 13.5 
Notes payable and other4.25%Various through 203067.1 68.3 
Debt issuance costs(6.7)(7.1)
Total debt, finance lease obligations, and notes payable$1,947.3 $1,800.7 
Less: current maturities553.3 553.3 
Total long-term debt, finance lease obligations, and notes payable$1,394.0 $1,247.4 
In December 2010, the Company entered an unsecured Master Note Purchase Agreement, which has been amended and supplemented, under which it has issued senior notes. In July 2018, the Company issued $350 million of unsecured senior notes due July 2028 which remain outstanding.
The Company maintains an unsecured credit facility which consists of a term loan facility (the “Term Loan Facility”) and a revolving loan facility (the “Revolving Loan Facility”). In July 2018, the Company amended its unsecured credit facility to increase its Term Loan Facility to $1,180 million, of which $864 million was outstanding as of March 31, 2022. In June 2021, the Company further amended its unsecured credit facility to increase its Revolving Loan Facility to $1.0 billion and extend the maturity date to June 2026. Interest is charged at rates based on a LIBOR or “prime” base rate.
On December 17, 2021, the Company amended the credit facility to provide an incremental 364-day term loan (the “Incremental Term Loan”) in the amount of $500.0 million. The incremental term loan, which was fully drawn on closing, is unsecured and matures on December 16, 2022. There are no required principal payments prior to the maturity date. In addition to the payment of the $500.0 million Incremental Term Loan, the Company is required to make principal payments under the Term Loan Facility totaling $45 million over the next 12 months. These payments are classified as current maturities in the consolidated balance sheets.
The credit facility and the Master Note Purchase Agreement contain covenants that require the Company to maintain certain financial ratios, including minimum interest coverage and maximum leverage ratios. The agreements also require the Company to maintain an interest coverage ratio of not less than 3.00 to 1.00 and a leverage ratio of not more than 3.50 to 1.00 on a rolling four quarter basis. The Company was in compliance with all such covenants as of March 31, 2022.
13

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, the Company 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 $76.7 million, of which $61.0 million was outstanding as of March 31, 2022. The outstanding balance is included in long-term debt and current portion of long-term debt in the consolidated balance sheets.

Note 5. Goodwill and Other Intangible Assets
Goodwill and other intangible assets, net of accumulated amortization, as of March 31, 2022 and December 31, 2021 are as follows (in millions):
March 31, 2022December 31, 2021
Goodwill$390.3 $391.3 
Other intangible assets, net639.1 646.2 
Total goodwill and other intangible assets, net$1,029.4 $1,037.5 
The changes in the carrying amount of goodwill by reportable segment for the three months ended March 31, 2022 and 2021 are as follows (in millions):
Off-RoadOn-RoadMarineAftermarketTotal
Goodwill111.7 52.5 227.1 270.3 $661.6 
Accumulated goodwill impairment losses— — — (270.3)(270.3)
Balance as of December 31, 2021$111.7 $52.5 $227.1 $ $391.3 
Currency translation effect on foreign goodwill balances0.2 (1.2)— — (1.0)
Goodwill111.9 51.3 227.1 270.3 660.6 
Accumulated goodwill impairment losses— — — (270.3)(270.3)
Balance as of March 31, 2022$111.9 $51.3 $227.1 $ $390.3 

Off-RoadOn-RoadMarineAftermarketTotal
Goodwill111.6 58.6 227.1 270.3 $667.6 
Accumulated goodwill impairment losses— — — (270.3)(270.3)
Balance as of December 31, 2020$111.6 $58.6 $227.1 $ $397.3 
Currency translation effect on foreign goodwill balances(0.1)(3.5)— — (3.6)
Goodwill111.5 55.1 227.1 270.3 664.0 
Accumulated goodwill impairment losses— — — (270.3)(270.3)
Balance as of March 31, 2021$111.5 $55.1 $227.1 $ $393.7 
14

The components of other intangible assets were as follows ($ in millions):
Weighted-average useful life (years)March 31, 2022December 31, 2021
Non-amortizable—indefinite lived:
Brand/trade names$329.8 $330.1 
Amortizable:
Non-compete agreements42.6 2.6 
Dealer/customer related18424.1 437.6 
Developed technology72.9 9.9 
Total amortizable17429.6 450.1 
Less: Accumulated amortization(120.3)(134.0)
Net amortized other intangible assets309.3 316.1 
Total other intangible assets, net$639.1 $646.2 
Amortization expense for intangible assets was $6.9 million and $8.7 million for the three months ended March 31, 2022 and 2021, respectively. Estimated amortization expense for the remainder of 2022 through 2027 is as follows: 2022 (remainder), $19.4 million; 2023, $25.1 million; 2024, $25.0 million; 2025, $25.0 million; 2026, $23.8 million; 2027, $17.7 million; and after 2027, $173.3 million. The preceding expected amortization expense is an estimate and actual amounts could differ due to additional intangible asset acquisitions, changes in foreign currency rates or impairments of intangible assets.

Note 6. Shareholders’ Equity
During the three months ended March 31, 2022, the Company paid $172.3 million to repurchase approximately 1.5 million shares of its common stock. As of March 31, 2022, the Board of Directors has authorized the Company to repurchase up to an additional $681.7 million of the Company’s common stock. The repurchase of any or all such shares authorized for repurchase will be governed by applicable SEC rules and dependent on management’s assessment of market conditions and subject to the restrictions on share repurchases set forth in the incremental amendment.
The Company paid a regular cash dividend of $0.64 per share on March 15, 2022 to holders of record at the close of business on March 1, 2022. Cash dividends declared and paid per common share for the three months ended March 31, 2022 and 2021, were as follows: 
 Three months ended March 31,
 20222021
Cash dividends declared and paid per common share$0.64 $0.63 
Net income per share
Basic income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period, including shares earned under the Deferred