Polaris 2014 Annual Report Download - page 91

Note 7. Shareholders’ Equity
Stock repurchase program. The Polaris Board of Directors has authorized the cumulative repurchase of up to
75,000,000 shares of the Company’s common stock. In addition, in 2013 the Polaris Board of Directors
authorized the one-time repurchase of all the shares of Polaris stock owned by Fuji Heavy Industries Ltd.
(‘‘Fuji’’). On November 12, 2013, Polaris entered into and executed a Share Repurchase Agreement with Fuji
under which Polaris purchased 3,960,000 shares of Polaris stock held by Fuji for an aggregate purchase price
of $497,474,000.
As of December 31, 2014, 1,050,000 shares remain available for repurchases under the Board’s authorization.
During 2014, Polaris paid $81,812,000 to repurchase and retire approximately 554,000 shares. During 2013,
Polaris paid $530,033,000 to repurchase and retire approximately 4,337,000 shares, and in 2012 Polaris paid
$127,525,000 to repurchase and retire approximately 1,649,000 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. The
shareholder rights plan was amended and restated in April 2010. The amended and restated rights agreement
extended the final expiration date of the rights from May 2010 to April 2020, expanded the definition of
‘‘Beneficial Owner’’ to include certain derivative securities relating to the common stock of the Company and
increased the purchase price for the rights from $75 to $125 per share. The Board of Directors may redeem
the rights earlier for $0.01 per right.
Stock purchase plan. Polaris maintains an employee stock purchase plan (‘‘Purchase Plan’’). A total of
3,000,000 shares of common stock are reserved for this plan. The Purchase Plan permits eligible employees to
purchase common stock monthly at 95 percent of the average of the beginning and end of month stock prices.
As of December 31, 2014, approximately 1,261,000 shares had been purchased under the Purchase Plan.
Dividends. Quarterly and total year cash dividends declared per common share for the year ended
December 31, 2014 and 2013 were as follows:
For the Years
Ended
December 31,
2014 2013
Quarterly dividend declared and paid per common share ........ $0.48 $0.42
Total dividends declared and paid per common share ........... $1.92 $1.68
On January 29, 2015, the Polaris Board of Directors declared a regular cash dividend of $0.53 per share
payable on March 16, 2015 to holders of record of such shares at the close of business on March 2, 2015.
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
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