Polaris 2008 Annual Report Download - page 71

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materially change in the next twelve months. Tax years 2004 through 2007 remain open to examination by certain
tax jurisdictions to which the Company is subject.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
2008 2007
For the Years Ended
December 31,
Balance at January 1, ............................................ $ 8,653 $ 5,378
Gross increases for tax positions of prior years ......................... 03,256
Gross decreases for tax positions of prior years ......................... (788) (390)
Gross increases for tax positions of current year ........................ 1,236 1,554
Decreases due to settlements ...................................... (549) (38)
Decreases for lapse of statute of limitations . . ......................... (3,449) (1,107)
Balance at December 31, ......................................... $ 5,103 $ 8,653
Note 5: Shareholders’ Equity
Stock repurchase program: The Polaris Board of Directors authorized the cumulative repurchase of up to
37,500,000 shares of the Company’s common stock. During 2008 Polaris paid $107,167,000 to repurchase and
retire approximately 2,545,000 shares.
Shareholder rights plan: During 2000, the Polaris Board of Directors adopted a shareholder rights plan.
Under the plan, a dividend of preferred stock purchase rights will become exercisable if a person or group should
acquire 15 percent or more of the Company’s stock. The dividend will consist of one purchase right for each
outstanding share of the Company’s common stock held by shareholders of record on June 1, 2000. Each right will
entitle its holder to purchase one-hundredth of a share of a new series of junior participating preferred stock at an
exercise price of $150, subject to adjustment. The rights expire in 2010 and may be redeemed earlier by the Board of
Directors for $0.01 per right.
Accumulated other comprehensive income (loss): Accumulated other comprehensive income (loss) con-
sisted of $3,746,000 and $22,167,000 of unrealized currency translation gains as of December 31, 2008 and 2007,
respectively, offset by $928,000 (after tax effect of $559,000) and $2,528,000 (after tax effect of $1,523,000) of
unrealized losses, related to derivative instruments as of December 31, 2008 and 2007, respectively, and $6,675,000
of unrealized losses on shares held for sale as of December 31, 2008 and $6,238,000 of unrealized gains on shares
held for sale as of December, 31, 2007.
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 year, including shares
earned under the Director Plan, ESOP and deferred stock units under the Omnibus Plan. Diluted earnings per share
is computed under the treasury stock method and is calculated to compute the dilutive effect of outstanding stock
53
POLARIS INDUSTRIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)