Polaris 2014 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2014 Polaris annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

the underlying exposure, with the connection between the two being regularly monitored. Polaris does not use
any financial contracts for trading purposes.
At December 31, 2014, Polaris had the following open foreign currency contracts (in thousands):
Notional Amounts
Foreign Currency (in U.S. dollars) Net Unrealized Gain (Loss)
Australian Dollar ................. $ 3,491 $ 391
Canadian Dollar .................. 40,550 38
Japanese Yen .................... 22,201 (1,008)
Mexican Peso .................... 34,060 (1,991)
Total .......................... $100,302 $(2,570)
These contracts, with maturities through December 31, 2015, 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 (loss) 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, 2014 and 2013
(in thousands):
Carrying Values of Derivative Instruments
as of December 31, 2014
Derivative Net
Fair Value—Assets Fair Value—(Liabilities) Carrying Value
Derivatives designated as hedging instruments
Foreign exchange contracts(1) ............ $534 $(3,104) $(2,570)
Total derivatives designated as hedging
instruments ........................ $534 $(3,104) $(2,570)
Commodity contracts(1) ................. $ — $(4,609) $(4,609)
Total derivatives not designated as hedging
instruments ........................ $ — $(4,609) $(4,609)
Total derivatives ...................... $534 $(7,713) $(7,179)
70