Shareholders' Equity

12 Months Ended

Dec. 31, 2021

Disclosure Shareholders Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

Stock repurchase program. The Company has made the following share repurchases (in millions):

	For the Years Ended December 31,
	2021		2020		2019
Total number of shares repurchased and retired	3.8		0.6		0.1
Total investment	$	461.6	$	50.3	$	8.4

As of December 31, 2021, the Polaris Board of Directors has authorized the Company to repurchase up to an additional $838.8 million of the Company’s common stock. The repurchase of any shares will be governed by applicable SEC rules and dependent on management’s assessment of market conditions.

Stock purchase plan. The Company maintains an employee stock purchase plan (“Purchase Plan”). A total of 3.0 million 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, 2021, approximately 1.5 million shares had been purchased under the Purchase Plan.

Dividends. Quarterly and total year cash dividends declared per common share for the years ended December 31, 2021, 2020, and 2019 were as follows: 

	For the Years Ended December 31,
	2021		2020		2019
Quarterly dividend declared and paid per common share	$	0.63	$	0.62	$	0.61
Total dividends declared and paid per common share	$	2.52	$	2.48	$	2.44

On January 27, 2022, the Polaris Board of Directors declared a regular cash dividend of $0.64 per share payable on March 15, 2022 to holders of record of such shares at the close of business on March 1, 2022.

Net income per share. Basic net income per share was 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 net income per share was computed under the treasury stock

method and was calculated to compute the dilutive effect of outstanding stock options and certain share-based awards issued under the Omnibus Plan.

Reconciliations of these amounts are as follows (in millions):

	For the Years Ended December 31,
	2021	2020	2019
Weighted average number of common shares outstanding	61.0	61.5	61.1
Director Plan and deferred stock units	0.2	0.2	0.2
ESOP	0.1	0.2	0.1
Common shares outstanding—basic	61.3	61.9	61.4
Dilutive effect of restricted stock awards	0.7	0.5	0.6
Dilutive effect of stock option awards	0.7	0.2	0.3
Common and potential common shares outstanding—diluted	62.7	62.6	62.3

During 2021, 2020 and 2019, the number of options that were not included in the computation of diluted net income per share because the option exercise price was greater than the market price, and therefore, the effect would have been anti-dilutive, was 0.9 million, 4.4 million and 3.8 million, respectively.

Accumulated other comprehensive loss. Changes in the accumulated other comprehensive loss balance are as follows (in millions):

	Foreign Currency Translation		Cash Flow Hedging Derivatives		Retirement Plan and Other Activity		Accumulated Other Comprehensive Loss
Balance as of December 31, 2020	$	(39.1)	$	(15.5)	$	(3.8)	$	(58.4)
Reclassification to the income statement	—		7.9		0.3		8.2
Change in fair value	(30.4)		3.2		—		(27.2)
Balance as of December 31, 2021	$	(69.5)	$	(4.4)	$	(3.5)	$	(77.4)

The table below provides 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 retirement plan activity for the years ended December 31, 2021 and 2020 (in millions): 

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,
		2021		2020
Foreign currency contracts	Other (income) expense, net	$	(0.3)	$	4.3
Foreign currency contracts	Cost of sales	0.5		(2.4)
Interest rate contracts	Interest expense	(8.1)		(6.1)
Retirement plan activity	Operating expenses	(0.3)		0.5
Total		$	(8.2)	$	(3.7)

The net amount of the existing gains or losses as of December 31, 2021 that are expected to be reclassified into the statements of income within the next 12 months is not expected to be material. See Note 14 for further information regarding the Company’s derivative activities.