|
Derivative Instruments and Hedging Activities (Tables)
|
12 Months Ended |
|
Dec. 31, 2012
|
| Open Contracts |
At
December 31, 2012, Polaris had the following open contracts,
which have maturities through December 2013 (in
thousands):
|
|
|
|
|
|
|
|
|
|
Foreign
Currency
|
|
Notional Amounts
(in US Dollars) |
|
|
Net Unrealized Gain (Loss) |
|
|
Australian
Dollar
|
|
$ |
11,210 |
|
|
$ |
(78 |
) |
|
Canadian Dollar
|
|
|
99,001 |
|
|
|
(1,185 |
) |
|
Euro
|
|
|
3,130 |
|
|
|
(70 |
) |
|
Japanese Yen
|
|
|
49,566 |
|
|
|
(1,817 |
) |
|
Mexican Peso
|
|
|
10,647 |
|
|
|
692 |
|
|
Swedish
Krona
|
|
|
6,524 |
|
|
|
(159 |
) |
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
180,078 |
|
|
$ |
(2,617 |
) |
|
|
|
|
|
|
|
|
|
|
| Carrying Values of Derivative Instruments |
The tables
below summarize the carrying values of derivative instruments as of
December 31, 2012 and 2011 (in thousands):
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|
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|
|
|
|
|
|
| |
|
Carrying Values of Derivative Instruments as of December 31,
2012 |
|
| |
|
Fair
Value—Assets |
|
|
Fair
Value—(Liabilities) |
|
|
Derivative Net
Carrying Value |
|
|
Derivatives designated
as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange
contracts(1)
|
|
$ |
1,122 |
|
|
$ |
(3,739 |
) |
|
$ |
(2,617 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivatives
designated as hedging instruments
|
|
$ |
1,122 |
|
|
$ |
(3,739 |
) |
|
$ |
(2,617 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity
contracts(1)
|
|
$ |
114 |
|
|
$ |
(238 |
) |
|
$ |
(124 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivatives not
designated as hedging instruments
|
|
$ |
114 |
|
|
$ |
(238 |
) |
|
$ |
(124 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Derivatives
|
|
$ |
1,236 |
|
|
$ |
(3,977 |
) |
|
$ |
(2,741 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Carrying Values of Derivative Instruments as of December 31,
2011 |
|
| |
|
Fair
Value—Assets |
|
|
Fair
Value—(Liabilities) |
|
|
Derivative Net
Carrying Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives designated
as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange
contracts(1)
|
|
$ |
4,738 |
|
|
$ |
(1,160 |
) |
|
$ |
3,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivatives
designated as hedging instruments
|
|
$ |
4,738 |
|
|
$ |
(1,160 |
) |
|
$ |
3,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity
contracts(1)
|
|
$ |
193 |
|
|
$ |
(1,530 |
) |
|
$ |
(1,337 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivatives not
designated as hedging instruments
|
|
$ |
193 |
|
|
$ |
(1,530 |
) |
|
$ |
(1,337 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Derivatives
|
|
$ |
4,931 |
|
|
$ |
(2,690 |
) |
|
$ |
2,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Assets are included in
Prepaid expenses and other and liabilities are included in Other
accrued expenses on the accompanying consolidated balance
sheet. |
|
| Gains and Losses, Net of Tax, Related to Derivative Instruments Designated as Cash Flow Hedges Included in Accumulated Other Comprehensive Income, Net |
The table below
provides data about the amount of gains and losses, net of tax,
related to derivative instruments designated as cash flow hedges
included as a component of Accumulated other comprehensive income
for the twelve month periods ended December 31 (in
thousands):
|
|
|
|
|
|
|
|
|
| |
|
Amount of Loss
Recognized in Accumulated OCI on
Derivative (Effective Portion) |
|
|
Amount of Gain
Recognized in Accumulated OCI on
Derivative (Effective Portion) |
|
|
Derivatives in Cash
Flow
Hedging
Relationships
|
|
Twelve Months
Ended
December 31,
2012 |
|
|
Twelve Months
Ended
December 31,
2011 |
|
|
Interest rate
contracts
|
|
$ |
(19 |
) |
|
$ |
62 |
|
|
Foreign currency
contracts
|
|
|
(3,890 |
) |
|
|
3,509 |
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
(3,909 |
) |
|
$ |
3,571 |
|
|
|
|
|
|
|
|
|
|
|
| Gains and Losses, Net of Tax, Reclassified from Accumulated Other Comprehensive Income into Income on Derivative Instruments Designated as Hedging Instruments |
The table below
provides data about the amount of gains and losses, net of tax,
reclassified from Accumulated other comprehensive income into
income on derivative instruments designated as hedging instruments
for the twelve months ended December 31 (in
thousands):
|
|
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|
|
|
|
|
|
|
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|
Derivatives in Cash
Flow
Hedging
Relationships
|
|
Location of Gain (Loss)
Reclassified from
Accumulated OCI
Into Income |
|
Amount of Gain (Loss)
Reclassified from
Accumulated OCI
into Income |
|
|
Amount of Gain (Loss)
Reclassified from
Accumulated OCI
into Income |
|
| |
|
Twelve Months
Ended
December 31,
2012 |
|
|
Twelve Months
Ended
December 31,
2011 |
|
|
Interest rate
contracts
|
|
Interest expense |
|
|
— |
|
|
$ |
(152 |
) |
|
Foreign currency
contracts
|
|
Other income, net |
|
|
(5,681 |
) |
|
|
(807 |
) |
|
Foreign currency
contracts
|
|
Cost of sales |
|
|
(404 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
$ |
(6,085 |
) |
|
$ |
(959 |
) |
|
|
|
|
|
|
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|