Polaris 2014 Annual Report Download - page 92

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Plan (collectively, the ‘‘Option Plans’’) and certain shares issued under the Omnibus Plan. A reconciliation of
these amounts is as follows (in thousands):
For the Years Ended
December 31,
2014 2013 2012
Weighted average number of common shares outstanding ...... 65,904 68,209 68,409
Director Plan and deferred stock units .................... 196 242 341
ESOP ........................................... 75 84 99
Common shares outstanding—basic ...................... 66,175 68,535 68,849
Dilutive effect of restricted stock awards .................. 359 228 181
Dilutive effect of stock option awards .................... 1,695 1,783 1,975
Common and potential common shares outstanding—diluted . . . 68,229 70,546 71,005
During the 2014, 2013 and 2012 the number of options that could potentially dilute earnings per share on a
fully diluted basis that were not included in the computation of diluted earnings per share because to do so
would have been anti-dilutive were 581,000, 23,000 and 872,000, respectively.
Accumulated other comprehensive income (loss). Changes in the accumulated other comprehensive income
(loss) balance is as follows (in thousands):
Foreign Accumulated Other
Currency Cash Flow Comprehensive
Items Hedging Derivatives Income (loss)
Balance as of December 31, 2013 . . $ 18,582 $ 179 $ 18,761
Reclassification to the income
statement .................. — (5,469) (5,469)
Change in fair value ............ (44,371) 3,838 (40,533)
Balance as of December 31, 2014 . . $(25,789) $(1,452) $(27,241)
The table below provides data about the amount of gains and losses, net of tax, reclassified from accumulated
other comprehensive income (loss) into the income statement for cash flow derivatives designated as hedging
instruments for the year ended December 31, 2014 and 2013 (in thousands):
Location of Gain (Loss) For the Years Ended
Reclassified from December 31,
Derivatives in Cash Accumulated OCI
Flow Hedging Relationships into Income 2014 2013
Foreign currency contracts ................. Other (income), net $(5,641) $(1,671)
Foreign currency contracts ................. Cost of sales 172 977
Total ................................. $(5,469) $ (694)
The net amount of the existing gains or losses at December 31, 2014 that is expected to be reclassified into
the income statement within the next 12 months is expected to not be material. See Note 11 for further
information regarding Polaris’ derivative activities.
Note 8. Financial Services Arrangements
Polaris Acceptance, a joint venture between Polaris and GE Commercial Distribution Finance Corporation, an
indirect subsidiary of General Electric Capital Corporation, which is supported by a partnership agreement
between their respective wholly owned subsidiaries, finances substantially all of Polaris’ United States sales
whereby Polaris receives payment within a few days of shipment of the product. Polaris’ subsidiary has a
50 percent equity interest in Polaris Acceptance. Polaris Acceptance sells a majority of its receivable portfolio
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