Polaris 2010 Annual Report Download - page 78

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The tables below summarize the carrying values of derivative instruments as of December 31, 2010 and 2009
(in thousands):
Fair Value —
Assets
Fair Value —
(Liabilities)
Derivative Net
Carrying Value
Carrying Values of Derivative Instruments as of
December 31, 2010
Derivatives designated as hedging instruments
Interest rate contracts(1) ......................... — $ (126) $ (126)
Foreign exchange contracts(2) ..................... $ 39 (2,058) (2,019)
Total derivatives designated as hedging instruments . . . $ 39 $(2,184) $(2,145)
Commodity contracts(2).......................... $889 — $ 889
Total derivatives not designated as hedging
instruments ................................ $889 — $ 889
Total Derivatives .............................. $928 $(2,184) $(1,256)
Fair Value —
Assets
Fair Value —
(Liabilities)
Derivative Net
Carrying Value
Carrying Values of Derivative Instruments as of
December 31, 2009
Derivatives Designated as Hedging Instruments
Interest rate contracts(1) ......................... — $ (699) $ (699)
Foreign exchange contracts(2) ..................... $ 323 (673) (350)
Total derivatives designated as hedging instruments . . . $ 323 $(1,372) $(1,049)
Commodity contracts(2).......................... $3,485 — $ 3,485
Total derivatives not designated as hedging
instruments ................................ $3,485 — $ 3,485
Total Derivatives .............................. $3,808 $(1,372) $ 2,436
(1) Included in Other Current Liabilities on the accompanying consolidated balance sheet.
(2) Assets are included in Prepaid expenses and other and liabilities are included in Other Current Liabilities on the
accompanying consolidated balance sheet.
For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or
loss on the derivative is reported as a component of Accumulated other comprehensive income and reclassified into
the income statement in the same period or periods during which the hedged transaction affects the income statement.
Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the
assessment of effectiveness are recognized in the statement of income. 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):
Derivatives in Cash Flow
Hedging Relationships
Twelve Months Ended
December 31,
2010
Twelve Months Ended
December 31,
2009
Amount of Gain (Loss)
Recognized in Accumulated OCI on
Derivative (Effective Portion)
Amount of Gain (Loss)
Recognized in Accumulated OCI on
Derivative (Effective Portion)
Interest rate contracts .......... $ 609 $492
Foreign currency contracts ...... (1,048) (219)
Total ...................... $ (439) $ 273
63
POLARIS INDUSTRIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)