Derivative Instruments and Hedging Activities (Tables)

23 Months Ended

Mar. 31, 2012

Open Foreign Currency Contracts

At March 31, 2012, Polaris had the following open foreign currency contracts (in thousands):

Foreign Currency	Notional Amounts (in US Dollars)		Net Unrealized Gain (Loss)
Australian Dollar	$	7,899	$	117
Canadian Dollar		123,212		(1,085	)
Swedish Krona		4,591		117
Japanese Yen		32,491		(315	)
Euro		16,914		(515	)
Total	$	185,107	$	(1,681	)

Carrying Values of Derivative Instruments

The table below summarizes the carrying values of derivative instruments as of March 31, 2012 and December 31, 2011 (in thousands):

	Carrying Values of Derivative Instruments as of March 31, 2012
	Fair Value— Assets		Fair Value— (Liabilities)			Derivative Net Carrying Value
Derivatives designated as hedging instruments
Foreign exchange contracts(1)	$	2,109	$	(3,790	)	$	(1,681	)
Total derivatives designated as hedging instruments	$	2,109	$	(3,790	)	$	(1,681	)
Commodity contracts(1)	$	937	$	(1,544	)	$	(607	)
Total derivatives not designated as hedging instruments	$	937		(1,544	)	$	(607	)
Total Derivatives	$	3,046	$	(5,334	)	$	(2,288	)

	Carrying Values of Derivative Instruments as of December 31, 2011
	Fair Value— Assets		Fair Value— (Liabilities)			Derivative Net Carrying Value
Derivatives designated as hedging instruments
Foreign exchange contracts(1)	$	4,738	$	(1,160	)	$	3,578
Total derivatives designated as hedging instruments	$	4,738	$	(1,160	)	$	3,578
Commodity contracts(1)	$	193	$	(1,530	)	$	(1,337	)
Total derivatives not designated as hedging instruments	$	193	$	(1,530	)	$	(1,337	)
Total Derivatives	$	4,931	$	(2,690	)	$	2,241

(1) Assets are included in Prepaid expenses and other and liabilities are included in Other accrued expenses on the accompanying consolidated balance sheets.

Gains and Losses, Net of Tax, Related to Derivative Instruments Designated as Cash Flow Hedges Included in Accumulated Other Comprehensive Income, Net

 The table below provides data about the amount of gains and losses, net of tax, related to derivative instruments designated as cash flow hedges included in Accumulated other comprehensive income for the three months ended March 31 (in thousands):

Derivatives in Cash Flow Hedging Relationships	For the Three Months Ended March 31,
	2012			2011
Interest rate contracts	$	(6	)	$	68
Foreign currency contracts		(3,415	)		(2,218	)
Total	$	(3,421	)	$	(2,150	)

Gains and Losses, Net of Tax, Reclassified from Accumulated Other Comprehensive Income into Income (Loss) on Derivative Instruments Designated as Hedging Instruments

The table below provides data about the amount of gains and losses, net of tax, reclassified from Accumulated other comprehensive income into income (loss) on derivative instruments designated as hedging instruments for the three month periods ended March 31, 2012 and 2011 (in thousands):

Derivatives in Cash Flow Hedging Relationships	Location of Gain (Loss) Reclassified from Accumulated OCI Into Income	For the Three Months Ended March 31,
		2012			2011
Interest rate contracts	Interest expense		—		$	(112	)
Foreign currency contracts	Other expense (income) net	$	(2,006	)		513
Foreign currency contracts	Cost of Sales		106			—
Total		$	(1,900	)	$	401