Additional Balance Sheet and Cash Flow Information

Marketable Securities

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



	September 24, 2017		December 31, 2016		September 25, 2016
Available-for-sale securities: corporate bonds	$	—	$	5,519	$	5,038
Trading securities: mutual funds	45,726		38,119		39,063
Total marketable securities	$	45,726	$	43,638	$	44,101

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 nine months of 2017 and 2016, unrealized losses were not material. There were no available-for-sale securities outstanding at September 24, 2017.

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

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 net realizable value using the first-in, first-out (FIFO) method. Inventories consisted of the following (in thousands):



	September 24, 2017			December 31, 2016			September 25, 2016
Raw materials and work in process	$	155,947		$	140,639		$	159,209
Motorcycle finished goods	232,141			285,281			182,019
Parts and accessories and general merchandise	129,270			122,264			134,587
Inventory at lower of FIFO cost or net realizable value	517,358			548,184			475,815
Excess of FIFO over LIFO cost	(48,267		)	(48,267		)	(49,268		)
Total inventories, net	$	469,091		$	499,917		$	426,547

Operating Cash Flow

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



	Nine months ended
	September 24, 2017			September 25, 2016
Cash flows from operating activities:
Net income	$	513,445		$	644,985
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	163,974			154,565
Amortization of deferred loan origination costs	62,052			65,445
Amortization of financing origination fees	6,112			7,212
Provision for long-term employee benefits	22,427			28,508
Employee benefit plan contributions and payments	(43,060		)	(47,658		)
Stock compensation expense	25,581			24,909
Net change in wholesale finance receivables related to sales	36,678			(169,599		)
Provision for credit losses	99,059			97,127
Gain on off-balance sheet asset-backed securitization	—			(9,269		)
Loss on debt extinguishment	—			118
Deferred income taxes	(5,151		)	(11,261		)
Other, net	(11,122		)	(23,270		)
Changes in current assets and liabilities:
Accounts receivable, net	(29,167		)	(86,796		)
Finance receivables - accrued interest and other	317			364
Inventories	50,016			173,975
Accounts payable and accrued liabilities	88,758			97,190
Derivative instruments	2,752			(1,992		)
Other	(33,596		)	(16,744		)
Total adjustments	435,630			282,824
Net cash provided by operating activities	$	949,075		$	927,809