Polaris 2013 Annual Report Download - page 94

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At December 31, 2013, Polaris had the following open foreign currency contracts (in thousands):
Notional Amounts
Foreign Currency (in US Dollars) Net Unrealized Gain (Loss)
Canadian Dollar .................. $ 39,744 $ 869
Japanese Yen .................... 17,864 (808)
Mexican Peso .................... 28,422 162
Norwegian Krone ................. 1,885 21
Swedish Krona ................... 15,623 (253)
Total .......................... $103,538 $ (9)
These contracts, with maturities through December 31, 2014, met the criteria for cash flow hedges and the
unrealized gains or losses, after tax, are recorded as a component of accumulated other comprehensive
income in shareholders’ equity.
Polaris enters into derivative contracts to hedge a portion of the exposure related to diesel fuel and aluminum.
These diesel fuel and aluminum derivative contracts have not met the criteria for hedge accounting.
The table below summarizes the carrying values of derivative instruments as of December 31, 2013 and 2012
(in thousands):
Carrying Values of Derivative Instruments
as of December 31, 2013
Derivative Net
Fair Value—Assets Fair Value—(Liabilities) Carrying Value
Derivatives designated as hedging instruments
Foreign exchange contracts(1) ............ $1,194 $(1,203) $(9)
Total derivatives designated as hedging
instruments ........................ $1,194 $(1,203) $ (9)
Commodity contracts(1) ................. $ 46 $ (16) $30
Total derivatives not designated as hedging
instruments ........................ $ 46 $ (16) $30
Total derivatives ...................... $1,240 $(1,219) $21
Carrying Values of Derivative Instruments
as of December 31, 2012
Derivative Net
Fair Value—Assets Fair Value—(Liabilities) 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)
(1) Assets are included in prepaid expenses and other and liabilities are included in other accrued expenses
on the accompanying consolidated balance sheets.
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