Additional Balance Sheet and Cash Flow Information

Marketable Securities

The Company’s marketable securities consisted of the following (in thousands):



	March 29, 2015		December 31, 2014		March 30, 2014
Available-for-sale: Corporate bonds	$	57,219	$	57,325	$	92,940
Trading securities: Mutual funds	37,667		33,815		33,182
	$	94,886	$	91,140	$	126,122

The Company’s available-for-sale securities are carried at fair value with any unrealized gains or losses reported in other comprehensive income. During the first three months of 2015 and 2014, the Company recognized gross unrealized losses of approximately $106,000 and $67,000, respectively, or $67,000 and $42,000 net of taxes, respectively, to adjust amortized cost to fair value. The marketable securities have contractual maturities that generally come due over the next 1 to 25 months.

The Company's trading securities relate to investments held by the Company to fund certain deferred compensation obligations. The trading securities are carried at fair value with gains and losses recorded in net income and investments are included in other long-term assets on the consolidated balance sheets.

Inventories

Inventories are valued at the lower of cost or market. Substantially all inventories located in the United States are valued using the last-in, first-out (LIFO) method. Other inventories are valued at the lower of cost or market using the first-in, first-out (FIFO) method. Inventories consist of the following (in thousands):



	March 29, 2015			December 31, 2014			March 30, 2014
Components at the lower of FIFO cost or market
Raw materials and work in process	$	153,734		$	151,254		$	141,381
Motorcycle finished goods	253,922			230,309			222,649
Parts and accessories and general merchandise	123,187			117,210			133,740
Inventory at lower of FIFO cost or market	530,843			498,773			497,770
Excess of FIFO over LIFO cost	(49,902		)	(49,902		)	(48,726		)
	$	480,941		$	448,871		$	449,044

Operating Cash Flow

The reconciliation of net income to net cash provided by operating activities is as follows (in thousands):



	Three months ended
	March 29, 2015			March 30, 2014
Cash flows from operating activities:
Net income	$	269,854		$	265,917
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	46,028			43,398
Amortization of deferred loan origination costs	22,932			22,101
Amortization of financing origination fees	2,215			2,085
Provision for employee long-term benefits	12,318			8,425
Contributions to pension and postretirement plans	(6,627		)	(6,879		)
Stock compensation expense	8,046			9,239
Net change in wholesale finance receivables related to sales	(465,598		)	(439,422		)
Provision for credit losses	26,247			20,331
Deferred income taxes	2,820			(474		)
Foreign currency adjustments	18,154			(4,172		)
Other, net	(2,507		)	3,055
Changes in current assets and liabilities:
Accounts receivable, net	(49,936		)	(61,217		)
Finance receivables—accrued interest and other	2,067			793
Inventories	(51,934		)	(20,317		)
Accounts payable and accrued liabilities	305,102			356,430
Derivative instruments	399			1,222
Other	35,120			3,071
Total adjustments	(95,154		)	(62,331		)
Net cash provided by operating activities	$	174,700		$	203,586