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Shareholders' Equity
9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
During the nine months ended September 30, 2019, Polaris paid $6,997,000 to repurchase approximately 81,000 shares of its common stock. As of September 30, 2019, the Board of Directors has authorized the Company to repurchase up to an additional 3,170,000 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 $0.61 per share on September 16, 2019 to holders of record at the close of business on September 3, 2019.
Cash dividends declared and paid per common share for the three and nine months ended September 30, 2019 and 2018, were as follows: 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2019
 
2018
 
2019
 
2018
Cash dividends declared and paid per common share
 
$
0.61

 
$
0.60

 
$
1.83

 
$
1.80


Net income per share
Basic income 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”) and the ESOP and deferred stock units under the 2007 Omnibus Incentive Plan (“Omnibus Plan”). Diluted income per share is computed under the treasury stock method and is calculated to compute the dilutive effect of outstanding stock options and certain shares issued under the Omnibus Plan. A reconciliation of these amounts is as follows (in thousands):
 
Three months ended September 30,
 
Nine months ended September 30,
 
2019
 
2018
 
2019
 
2018
Weighted average number of common shares outstanding
61,143
 
61,927

 
61,064
 
62,630

Director Plan and deferred stock units
212
 
181

 
205
 
175

ESOP
125
 
99

 
125
 
89

Common shares outstanding—basic
61,480
 
62,207

 
61,394
 
62,894

Dilutive effect of Omnibus Plan
785
 
1,339

 
758
 
1,656

Common and potential common shares outstanding—diluted
62,265
 
63,546

 
62,152
 
64,550


During the three and nine months ended September 30, 2019, the number of options that were not included in the computation of diluted income per share because the option exercise price was greater than the market price, and therefore, the effect would have been anti-dilutive, was 4,333,000 and 4,157,000, respectively, compared to 1,785,000 and 1,713,000 for the same periods in 2018.
Accumulated other comprehensive loss
Changes in the accumulated other comprehensive loss balance are as follows (in thousands):
 
Foreign
Currency Items
 
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 statement of income

 
(2,711
)
 
187

 
(2,524
)
Reclassification to retained earnings

 

 
(668
)
 
(668
)
Change in fair value
(13,189
)
 
(4,237
)
 

 
(17,426
)
Balance as of September 30, 2019
$
(73,693
)
 
$
(6,525
)
 
$
(3,373
)
 
$
(83,591
)

The table below provides data about the amount of gains and losses, net of tax, reclassified from accumulated other comprehensive loss into the statements of income for cash flow derivatives designated as hedging instruments for the three and nine months ended September 30, 2019 and 2018 (in thousands): 
Derivatives in Cash Flow Hedging Relationships and Other Activity
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
 
Three months ended September 30,
 
Nine months ended September 30,
 
2019
 
2018
 
2019
 
2018
Foreign currency contracts
Other expense, net
 
$
458

 
$
4,587

 
$
2,591

 
$
6,681

Foreign currency contracts
Cost of sales
 
266

 
(62
)
 
552

 
460

Interest rate contracts
Interest expense
 
(327
)
 

 
(432
)
 

Retirement plan activity
Operating expenses
 
(61
)
 
(66
)
 
(187
)
 
(196
)
Total
 
 
$
336

 
$
4,459

 
$
2,524

 
$
6,945


The net amount of the existing gains or losses at September 30, 2019 that is expected to be reclassified into the statements of income within the next 12 months is not expected to be material. See Note 12 for further information regarding derivative activities.