Shareholders' Equity

23 Months Ended

Mar. 31, 2012

Shareholders' Equity

NOTE 8. Shareholders’ Equity

During the first three months of 2012, Polaris paid $5,871,000 to repurchase and retire approximately 85,000 shares (post-split) of its common stock related to employee stock plan exercises. As of March 31, 2012, the Company has authorization from its Board of Directors to repurchase up to an additional 3,544,000 shares of Polaris stock. The repurchase of any or all such shares authorized for repurchase will be governed by applicable SEC rules and dependent on management’s assessment of market conditions. Polaris paid a regular cash dividend of $0.37 per share on March 15, 2012 to holders of record on March 1, 2012. On April 26, 2012, the Polaris Board of Directors declared a regular cash dividend of $0.37 per share payable on June 15, 2012 to holders of record of such shares at the close of business on June 1, 2012. Cash dividends declared per common share for the first quarter were as follows:

	For the Three Months Ended March 31,
	2012		2011
Cash Dividends Declared And Paid Per Common Share	$	0.37	$	0.225

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 nonqualified deferred compensation plan (“Director Plan”), the ESOP and deferred stock units under the 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 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 Three Months Ended March 31,
	2012		2011
Weighted average number of common shares outstanding		68,177		68,057
Director plan and deferred stock units		359		325
ESOP		101		155
Common shares outstanding — basic		68,637		68,537
Dilutive effect of Option Plans and Omnibus Plan		2,188		2,126
Common and potential common shares outstanding — diluted		70,825		70,663

During the first quarter ending March 31, 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 approximately 1,025,000 compared to 380,000 for the same period in 2011.

Accumulated Other Comprehensive Income

Accumulated other comprehensive income balances were as follows (in thousands):

	Foreign Currency Items		Cash Flow Hedging Derivatives			Accumulated Other Comprehensive Income
Balance at December 31, 2011	$	9,545	$	2,478		$	12,023
Reclassification to the income statement		—		(1,900	)		(1,900	)
Change in fair value		3,664		(1,521	)		2,143
Balance at March 31, 2012	$	13,209	$	(943	)	$	12,266