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Shareholders' Equity
 6 Months Ended
Jun. 30, 2014
Text Block [Abstract]  
Shareholders' Equity
Note 5. Shareholders’ Equity
During the six months ended June 30, 2014, Polaris paid $3,945,000 to repurchase and retire approximately 30,000 shares of its common stock. As of June 30, 2014, the Board of Directors has authorized the Company to repurchase up to an additional 1,574,000 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 $0.48 per share on June 16, 2014 to holders of record at the close of business on June 2, 2014. On July 23, 2014, the Polaris Board of Directors declared a regular cash dividend of $0.48 per share payable on September 15, 2014 to holders of record of such shares at the close of business on September 2, 2014. Cash dividends declared per common share for the three and six months ended June 30, 2014 and 2013, were as follows: 
 
 
Three months ended June 30,
 
Six months ended June 30,
 
 
2014
 
2013
 
2014
 
2013
Cash dividends declared and paid per common share
 
$
0.48

 
$
0.42

 
$
0.96

 
$
0.84


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 June 30,
 
Six months ended June 30,
 
2014
 
2013
 
2014
 
2013
Weighted average number of common shares outstanding
65,769
 
68,536

 
65,663
 
68,445

Director Plan and deferred stock units
209
 
233

 
205
 
287

ESOP
82
 
98

 
78
 
98

Common shares outstanding—basic
66,060
 
68,867

 
65,946
 
68,830

Dilutive effect of Option Plans and Omnibus Plan
2,028
 
1,888

 
2,077
 
1,929

Common and potential common shares outstanding—diluted
68,088
 
70,755

 
68,023
 
70,759


During the three and six months ended June 30, 2014, 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 665,000 and 513,000, respectively, compared to 1,018,000 and 799,000 for the same periods in 2013.
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, 2013
$
18,582

 
$
179

 
$
18,761

Reclassification to the income statement
—

 
(2,037
)
 
(2,037
)
Change in fair value
(152
)
 
1,022

 
870

Balance as of June 30, 2014
$
18,430

 
$
(836
)
 
$
17,594


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 six months ended June 30, 2014 and 2013 (in thousands): 
Derivatives in Cash
Flow Hedging Relationships
Location of (Gain) Loss
Reclassified from
Accumulated OCI
into Income
 
Three months ended June 30,
 
Six months ended June 30,
 
2014
 
2013
 
2014
 
2013
Foreign currency contracts
Other (income), net
 
$
(1,687
)
 
$
(891
)
 
$
(2,097
)
 
$
(1,111
)
Foreign currency contracts
Cost of sales
 
(42
)
 
537

 
60

 
753

Total
 
 
$
(1,729
)
 
$
(354
)
 
$
(2,037
)
 
$
(358
)

The net amount of the existing gains or losses at June 30, 2014 that is expected to be reclassified into the income statement within the next 12 months is expected to not be material. See Note 9 for further information regarding Polaris' derivative activities.