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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)- August 14, 1998
POLARIS INDUSTRIES INC.
(Exact name of registrant as specified in its charter)
Commission File No. 1-11411
MINNESOTA 41-1790959
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1225 Highway 169 North
Minneapolis, Minnesota 55441
(Address of principal executive offices) (Zip Code)
(612) 542-0500
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On August 14, 1998, Polaris Industries Inc. (the "Company") announced that
that the U.S. Court of Appeals for the Federal Circuit has upheld a Colorado
District Court jury verdict on a trade secret misappropriation claim brought by
Injection Research Specialties, Inc. against the Company. Additional information
regarding the litigation is included in the press release filed as an exhibit to
this report.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
EXHIBIT NO. DESCRIPTION OF DOCUMENT
99 Press Release dated August 14, 1998
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf by the
undersigned hereunto duly authorized.
Dated: August 14, 1998 POLARIS INDUSTRIES INC.
By /s/ Michael W. Malone
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Michael W. Malone, Vice President - Finance
Chief Financial Officer and Secretary
Exhibit Index
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EXHIBIT NO. DESCRIPTION
99 Press Release dated August 14, 1998
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FOR IMMEDIATE RELEASE
Contact: Michael Malone Dave Mona
Polaris Industries Inc, Shandwick
612-542-0500 612-832-5000
APPEALS COURT UPHOLDS JURY VERDICT AGAINST POLARIS
COMPANY SAYS PAYMENT OF DAMAGE AND INTEREST AWARD WILL NOT AFFECT ONGOING
OPERATIONS
MINNEAPOLIS (August 14, 1998) ---- The U.S. Court of Appeals for the
Federal Circuit (the "Court") late Thursday upheld a Colorado District Court
jury verdict on a trade secret misappropriation claim brought by Injection
Research Specialties, Inc. against Polaris Industries Inc. (NYSE: PII). The
court affirmed the jury's award of $34 million in damages against Polaris and
remanded the case to the lower court for the calculation of prejudgment
interest.
"We are very disappointed in the court's decision and will weigh our legal
options for further appeal," said W. Hall Wendel, Polaris chairman and chief
executive officer. "Should the verdict stand, our strong financial position,
cash flow from operations and overall liquidity will enable us to pay the
amounts awarded to the plaintiff without affecting our ongoing operations. We
have a strong balance sheet, only $20 million in long-term debt as of June 30,
1998, and generated cash flow from operations of more than $100 million in 1997.
Our debt-to-total capital ratio at June 30, 1998, was just 10 percent. So we
have ample borrowing capacity to make the award payment and continue to fund
ongoing operations."
The company said it will account for the damage and interest award as a
provision for litigation loss as a component of non-operating expenses on its
Statements of Operations in the quarter ending September 30, 1998. As a result,
the company will report a net loss for the third quarter, 1998. Income from
operations is unaffected by the provision for litigation loss.
Wendel added that none of the technology in dispute in this trade secrets
matter is used in any current Polaris products and that the appellate court's
decision will not impede the company's ability to offer any of its current or
planned products, nor its ability to continue to invest in new product
development.
Polaris Industries Inc, designs, engineers, manufactures and markets
snowmobiles, all-terrain vehicles, motorcycles and personal watercraft for
recreational and utility use. Polaris is the world's largest snowmobile
manufacturer and one of the largest U.S. manufacturers of ATV's and personal
watercraft, Polaris Industries Inc. trades on the New York Stock Exchange and
the Pacific Stock Exchange under the symbol "PII" and is included in the S&P
SmallCap 600 stock price index.
