Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2012

Open Contracts

At December 31, 2012, Polaris had the following open contracts, which have maturities through December 2013 (in thousands):

Foreign Currency	Notional Amounts (in US Dollars)		Net Unrealized Gain (Loss)
Australian Dollar	$	11,210	$	(78	)
Canadian Dollar		99,001		(1,185	)
Euro		3,130		(70	)
Japanese Yen		49,566		(1,817	)
Mexican Peso		10,647		692
Swedish Krona		6,524		(159	)
Total	$	180,078	$	(2,617	)

Carrying Values of Derivative Instruments

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

	Carrying Values of Derivative Instruments as of December 31,  2012
	Fair Value—Assets		Fair Value—(Liabilities)			Derivative Net Carrying Value
Derivatives designated as hedging instruments
Foreign exchange contracts(1)	$	1,122	$	(3,739	)	$	(2,617	)
Total derivatives designated as hedging instruments	$	1,122	$	(3,739	)	$	(2,617	)
Commodity contracts(1)	$	114	$	(238	)	$	(124	)
Total derivatives not designated as hedging instruments	$	114	$	(238	)	$	(124	)
Total Derivatives	$	1,236	$	(3,977	)	$	(2,741	)

	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 sheet.

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 as a component of Accumulated other comprehensive income for the twelve month periods ended December 31 (in thousands):

	Amount of Loss Recognized in Accumulated OCI on Derivative (Effective Portion)			Amount of Gain Recognized in Accumulated OCI on Derivative (Effective Portion)
Derivatives in Cash Flow Hedging Relationships	Twelve Months Ended December 31, 2012			Twelve Months Ended December 31, 2011
Interest rate contracts	$	(19	)	$	62
Foreign currency contracts		(3,890	)		3,509
Total	$	(3,909	)	$	3,571

Gains and Losses, Net of Tax, Reclassified from Accumulated Other Comprehensive Income into Income 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 on derivative instruments designated as hedging instruments for the twelve months ended December 31 (in thousands):

Derivatives in Cash Flow Hedging Relationships	Location of Gain (Loss) Reclassified from Accumulated OCI Into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income			Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
		Twelve Months Ended December 31, 2012			Twelve Months Ended December 31, 2011
Interest rate contracts	Interest expense		—		$	(152	)
Foreign currency contracts	Other income, net		(5,681	)		(807	)
Foreign currency contracts	Cost of sales		(404	)		—
Total		$	(6,085	)	$	(959	)