Polaris 2013 Annual Report Download - page 95

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For derivative instruments that are designated and qualify as cash flow hedges, 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 current income
statement.
The table below provides data about the amount of gains and losses, net of tax, related to the effective
portion of derivative instruments designated as cash flow hedges included in accumulated other comprehensive
income for the years ended December 31, 2013 and 2012 (in thousands):
For the Years
Ended
December 31,
Derivatives in Cash
Flow Hedging Relationships 2013 2012
Interest rate contracts ............................................ $ (26) $ (19)
Foreign currency contracts ......................................... 1,636 (3,890)
Total ......................................................... $1,610 $(3,909)
See Note 7 for information about the amount of gains and losses, net of tax, reclassified from accumulated
other comprehensive income into the income statement for derivative instruments designated as hedging
instruments. The ineffective portion of foreign currency contracts was not material for the years ended
December 31, 2013 and 2012.
The Company recognized a loss of $878,000 and $1,471,000 in cost of sales on commodity contracts not
designated as hedging instruments in 2013 and 2012, respectively.
Note 12. Segment Reporting
Polaris has reviewed ASC Topic 280 and determined that the Company meets the aggregation criteria outlined
since the Company’s segments have similar (1) economic characteristics, (2) product and services,
(3) production processes, (4) customers, (5) distribution channels, and (6) regulatory environments. Therefore,
the Company reports as a single reportable business segment.
Sales to external customers based on the location of the customer and property and equipment, net, by
geography are presented in the tables below (in thousands):
For the Years Ended December 31,
2013 2012 2011
United States ............................. $2,721,300 $2,310,943 $1,864,099
Canada ................................. 463,316 438,208 368,487
Other foreign countries ...................... 592,452 460,631 424,363
Consolidated sales .......................... $3,777,068 $3,209,782 $2,656,949
As of December 31,
2013 2012
United States ....................................... $ 349,224 $ 225,474
Mexico ........................................... 52,450 7,448
Other foreign countries ............................... 53,493 20,447
Consolidated property and equipment, net .................. $ 455,167 $ 253,369
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