Consolidated Statements of Shareholders' Equity in thousands POLARIS INDUSTRIES INC.
	Preferred Stock	Common Stock	Additional Paid-in Capital	Deferred Compensation	Compensation Payable in Common Stock	Retained Earnings (Accumulated Deficit)	Total
Balance, December 31, 1994	$ –	$181	$103,935	$ –	$12,251	$53,342	$169,709
First Rights conversion to stock	–	1	5,520	–	(5,586)	–	(65)
Employee stock compensation	–	–	–	–	4,753	–	4,753
Dividends and distributions	–	–	–	–	–	(116,639)	(116,639)
Stock split	–	91	(111)	–	–	–	(20)
Net income	–	–	–	–	–	60,776	60,776
Balance, December 31, 1995	–	273	109,344	–	11,418	(2,521)	118,514
First Rights conversion to stock	–	2	5,717	–	(5,769)	–	(50)
Employee stock compensation	–	1	1,466	(978)	4,061	–	4,550
Dividends	–	–	–	–	–	(16,390)	(16,390)
Repurchase and retirement of common shares	–	(6)	(13,581)	–	–	–	(13,587)
Net income	–	–	–	–	–	62,293	62,293
Balance, December 31, 1996	–	270	102,946	(978)	9,710	43,382	155,330
First Rights conversion to stock	–	3	7,164	–	(7,210)	–	(43)
Employee stock compensation	–	2	2,733	(2,155)	4,846	–	5,426
Dividends	–	–	–	–	–	(16,958)	(16,958)
Repurchase and retirement of common shares	–	(15)	(39,888)	–	–	–	(39,903)
Net income	–	–	–	–	–	65,383	65,383
Balance, December 31, 1997	$ –	$260	$ 72,955	$(3,133)	$ 7,346	$ 91,807	$169,235
*The accompanying notes are an integral part of these consolidated statements.