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Shareholders' Equity
 9 Months Ended
Sep. 30, 2013
Text Block [Abstract]  
Shareholders' Equity
NOTE 8. Shareholders’ Equity
During the nine months ended September 30, 2013, Polaris paid $31,907,000 to repurchase and retire approximately 373,000 shares of its common stock. As of September 30, 2013, the Board of Directors has authorized the Company to repurchase up to an additional 1,608,000 shares of Polaris 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. Polaris paid a regular cash dividend of $0.42 per share on September 16, 2013 to holders of record at the close of business on September 3, 2013. On October 24, 2013, the Polaris Board of Directors declared a regular cash dividend of $0.42 per share payable on December 16, 2013 to holders of record of such shares at the close of business on December 2, 2013. Cash dividends declared per common share for the three and nine months ended September 30, 2013 and 2012, were as follows: 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2013
 
2012
 
2013
 
2012
Cash dividends declared and paid per common share
 
$
0.42

 
$
0.37

 
$
1.26

 
$
1.11


Net income per share
Basic earnings 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 Compensation Plan for Directors (“Director Plan”), the ESOP and deferred stock units under the 2007 Omnibus Incentive Plan (“Omnibus Plan”). Diluted earnings per share is computed under the treasury stock method and is calculated to compute the dilutive effect of outstanding stock options issued under the 1995 Stock Option Plan and the 2003 Non-Employee Director Stock Option Plan (collectively, the “Option Plans”) and certain shares issued under the Omnibus Plan. A reconciliation of these amounts is as follows (in thousands):
 
Three months ended September 30,
 
Nine months ended September 30,
 
2013
 
2012
 
2013
 
2012
Weighted average number of common shares outstanding
68,910
 
68,261

 
68,600
 
68,315

Director Plan and deferred stock units
196
 
332

 
257
 
343

ESOP
73
 
99

 
89
 
103

Common shares outstanding—basic
69,179
 
68,692

 
68,946
 
68,761

Dilutive effect of Option Plans and Omnibus Plan
2,007
 
2,191

 
1,955
 
2,195

Common and potential common shares outstanding—diluted
71,186
 
70,883

 
70,901
 
70,956


During the third quarter and year-to-date periods ended September 30, 2013, the number of options that could potentially dilute earnings per share on a fully diluted basis that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive were 67,000 and 870,000, respectively, compared to 917,000 and 1,148,000 for the same respective periods in 2012.
Accumulated other comprehensive income
Changes in the accumulated other comprehensive income balance is as follows (in thousands):
 
Foreign
Currency
Items
 
Cash Flow
Hedging Derivatives
 
Accumulated Other
Comprehensive
Income
Balance as of December 31, 2012
$
13,669

 
$
(1,431
)
 
$
12,238

Reclassification to the income statement
—

 
(1,885
)
 
(1,885
)
Change in fair value
2,655

 
3,774

 
6,429

Balance as of September 30, 2013
$
16,324

 
$
458

 
$
16,782


The table below provides data about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive income into the income statement for cash flow derivatives designated as hedging instruments for the three and nine months ended September 30, 2013 and 2012 (in thousands): 
Derivatives in Cash
Flow Hedging Relationships
Location of Gain (Loss)
Reclassified from
Accumulated OCI
into Income
 
Three months ended September 30,
 
Nine months ended September 30,
 
2013
 
2012
 
2013
 
2012
Foreign currency contracts
Other (income), net
 
$
(2,241
)
 
$
(2,028
)
 
$
(3,352
)
 
$
(5,644
)
Foreign currency contracts
Cost of sales
 
714

 
(465
)
 
1,467

 
(352
)
Total
 
 
$
(1,527
)
 
$
(2,493
)
 
$
(1,885
)
 
$
(5,996
)

The net amount of the existing gains or losses at September 30, 2013 that is expected to be reclassified into the income statement within the next 12 months is expected to not be material. See Note 10 for further information regarding Polaris' derivative activities.