Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Disclosure Shareholders Equity [Abstract]

Shareholders’ Equity

Stock repurchase program. The Polaris Board of Directors has authorized the cumulative repurchase of up to 90,460,000 shares of the Company’s common stock. As of December 31, 2019, 3,156,000 shares remain available for repurchases under the Board’s authorization. The Company has made the following share repurchases (in thousands):



	For the Years Ended December 31,
	2019		2018		2017
Total number of shares repurchased and retired	95		3,184		1,028
Total investment	$	8,378	$	348,663	$	90,461

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, 2019, approximately 1,427,000 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, 2019, 2018, and 2017 were as follows:



	For the Years Ended December 31,
	2019		2018		2017
Quarterly dividend declared and paid per common share	$	0.61	$	0.60	$	0.58
Total dividends declared and paid per common share	$	2.44	$	2.40	$	2.32

On January 31, 2020, the Polaris Board of Directors declared a regular cash dividend of $0.62 per share payable on March 16, 2020 to holders of record of such shares at the close of business on March 2, 2020.

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 Option Plan and certain shares issued under the Omnibus Plan. A reconciliation of these amounts is as follows (in thousands):



	For the Years Ended December 31,
	2019	2018	2017
Weighted average number of common shares outstanding	61,109	62,236	62,668
Director Plan and deferred stock units	207	177	157
ESOP	121	100	91
Common shares outstanding—basic	61,437	62,513	62,916
Dilutive effect of restricted stock awards	581	679	384
Dilutive effect of stock option awards	274	757	880
Common and potential common shares outstanding—diluted	62,292	63,949	64,180

During 2019, 2018 and 2017, the number of options that were not included in the computation of diluted income per share because the option price was greater than the market price, and therefore, the effect would have been anti-dilutive, was 3,846,000, 1,723,000 and 2,768,000, respectively.

Accumulated other comprehensive loss. Changes in the accumulated other comprehensive loss balance is as follows (in thousands):



	Foreign Currency Translation			Cash Flow Hedging Derivatives			Retirement Plan and Other Activity			Accumulated Other Comprehensive Loss
Balance as of December 31, 2018	$	(60,504	)	$	423		(2,892		)	$	(62,973	)
Reclassification to the income statement	—			(3,219		)	250			(2,969		)
Reclassification to retained earnings	—			—			(668		)	(668		)
Change in fair value	(2,792		)	(3,318		)	—			(6,110		)
Balance as of December 31, 2019	$	(63,296	)	$	(6,114	)	$	(3,310	)	$	(72,720	)

The table below provides data about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the income statement for cash flow derivatives designated as hedging instruments and for actuarial losses related to retirement benefit plans the years ended December 31, 2019 and 2018 (in thousands):



Derivatives in Cash Flow Hedging Relationships and Other Activity	Location of Gain (Loss) Reclassified from Accumulated OCI into Income	For the Years Ended December 31,
		2019			2018
Foreign currency contracts	Other expense, net	$	3,198		$	9,378
Foreign currency contracts	Cost of sales	920			686
Interest rate contracts	Interest expense	(899		)	(158		)
Retirement plan activity	Operating expenses	(250		)	(261		)
Total		$	2,969		$	9,645

The net amount of the existing gains or losses at December 31, 2019 that is expected to be reclassified into the income statement within the next 12 months is expected to not be material. See Note 14 for further information regarding Polaris’ derivative activities.