Additional Balance Sheet and Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2016

Inventories, net (in thousands):



	2016			2015
Components at the lower of FIFO cost or market
Raw materials and work in process	$	140,639		$	161,704
Motorcycle finished goods	285,281			327,952
Parts and accessories and general merchandise	122,264			145,519
Inventory at lower of FIFO cost or market	548,184			635,175
Excess of FIFO over LIFO cost	(48,267		)	(49,268		)
Total inventories, net	$	499,917		$	585,907

Property, plant and equipment, at cost (in thousands):



	2016			2015
Land and related improvements	$	65,533		$	56,554
Buildings and related improvements	464,200			453,433
Machinery and equipment	1,887,269			1,859,443
Software	630,114			524,076
Construction in progress	214,409			280,147
	3,261,525			3,173,653
Accumulated depreciation	(2,279,932		)	(2,231,235		)
Total property, plant and equipment, net	$	981,593		$	942,418

Accrued liabilities (in thousands):



	2016		2015
Payroll, employee benefits and related expenses	$	148,221	$	160,971
Warranty and recalls	57,698		54,894
Sales incentive programs	43,218		37,568
Tax-related accruals	26,140		18,535
Accrued interest	42,788		33,925
Other	168,587		166,071
Total accrued liabilities	$	486,652	$	471,964

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



	2016			2015			2014
Cash flows from operating activities:
Net income	$	692,164		$	752,207		$	844,611
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	209,555			198,074			179,300
Amortization of deferred loan origination costs	86,681			93,546			94,429
Amortization of financing origination fees	9,252			9,975			8,442
Provision for long-term employee benefits	38,273			60,824			33,709
Employee benefit plan contributions and payments	(55,809		)	(28,490		)	(29,686		)
Stock compensation expense	32,336			29,433			37,929
Net change in wholesale finance receivables related to sales	(3,233		)	(113,970		)	(75,210		)
Provision for credit losses	136,617			101,345			80,946
Gain on off-balance sheet asset-backed securitization	(9,269		)	—			—
Loss on debt extinguishment	118			1,099			3,942
Deferred income taxes	(165		)	(16,484		)	(7,621		)
Other, net	(6,907		)	20,913			20,473
Changes in current assets and liabilities:
Accounts receivable, net	(45,934		)	(13,665		)	(9,809		)
Finance receivables – accrued interest and other	(1,489		)	(3,046		)	(2,515		)
Inventories	85,072			(155,222		)	(50,886		)
Accounts payable and accrued liabilities	38,237			138,823			21,309
Derivative instruments	(3,413		)	(5,615		)	703
Other	(27,747		)	30,371			(3,389		)
Total adjustments	482,175			347,911			302,066
Net cash provided by operating activities	$	1,174,339		$	1,100,118		$	1,146,677

Cash paid during the period for interest and income taxes (in thousands):