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Shareholders' Equity
9 Months Ended
Sep. 30, 2020
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
During the nine months ended September 30, 2020, Polaris paid $49.5 million to repurchase approximately 0.6 million shares of its common stock. As of September 30, 2020, the Board of Directors has authorized the Company to repurchase up to an additional 2.6 million 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 and subject to the restrictions on share repurchases set forth in the incremental amendment.
Polaris paid a regular cash dividend of $0.62 per share on September 15, 2020 to holders of record at the close of business on September 1, 2020.
Cash dividends declared and paid per common share for the three and nine months ended September 30, 2020 and 2019, were as follows: 
 Three months ended September 30,Nine months ended September 30,
 2020201920202019
Cash dividends declared and paid per common share$0.62 $0.61 $1.86 $1.83 
Net income (loss) per share
Basic income (loss) 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 (loss) per share is computed under the treasury stock method and is calculated to compute the dilutive effect of outstanding stock options and certain share-based awards issued under the Omnibus Plan. A reconciliation of these amounts is as follows (in millions):
Three months ended September 30,Nine months ended September 30,
2020201920202019
Weighted average number of common shares outstanding 61.5 61.2 61.4 61.1 
Director Plan and deferred stock units 0.2 0.2 0.2 0.2 
ESOP 0.2 0.1 0.2 0.1 
Common shares outstanding—basic 61.9 61.5 61.8 61.4 
Dilutive effect of Omnibus Plan0.9 0.8 — 0.8 
Common and potential common shares outstanding—diluted 62.8 62.3 61.8 62.2 
During the three and nine months ended September 30, 2020, the number of options that were not included in the computation of diluted income (loss) per share because the option exercise price was greater than the market price, and therefore, the effect would have been anti-dilutive, was 2.2 million and 5.0 million, respectively, compared to 4.3 million and 4.2 million for the same periods in 2019. As a result of the Company’s net loss during the nine month period ended September 30, 2020, an additional 0.7 million of outstanding stock options and certain share-based awards under the Omnibus Plan were not included in the computation of diluted income (loss) per share because the effect would have been anti-dilutive.
Accumulated other comprehensive loss
Changes in the accumulated other comprehensive loss balance are as follows (in millions):
Foreign Currency TranslationCash Flow
Hedging Derivatives
Retirement Plan and Other ActivityAccumulated Other
Comprehensive Loss
Balance as of December 31, 2019$(63.3)$(6.1)$(3.3)$(72.7)
Reclassification to the statement of income — 1.0 0.2 1.2 
Change in fair value (1.8)(11.6)— (13.4)
Balance as of September 30, 2020$(65.1)$(16.7)$(3.1)$(84.9)
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 (loss) for cash flow derivatives designated as hedging instruments and retirement plan activity for the three and nine months ended September 30, 2020 and 2019 (in millions): 
Derivatives in Cash Flow Hedging Relationships and Other ActivityLocation of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into IncomeThree months ended September 30,Nine months ended September 30,
2020201920202019
Foreign currency contractsOther expense, net$1.0 $0.5 $4.5 $2.6 
Foreign currency contractsCost of sales(0.7)0.2 (1.4)0.5 
Interest rate contractsInterest expense(2.0)(0.3)(4.1)(0.4)
Retirement plan activityOperating expenses(0.1)(0.1)(0.2)(0.2)
Total$(1.8)$0.3 $(1.2)$2.5 
The net amount of the existing gains or losses at September 30, 2020 that is expected to be reclassified into the statements of income (loss) within the next 12 months is not expected to be material. See Note 9 for further information regarding derivative activities.