Additional Balance Sheet and Cash Flow Information

Marketable Securities

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



	September 30, 2018		December 31, 2017		September 24, 2017
Certificate of deposit	$	10,011	$	—	$	—
Mutual funds	49,832		48,006		45,726
Total marketable securities	$	59,843	$	48,006	$	45,726

The Company's debt securities are carried at fair value with any unrealized gains or losses reported in other comprehensive income. The mutual fund investments are held by the Company to fund certain deferred compensation obligations. These investments are carried at fair value with gains and losses recorded in net income and 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 30, 2018			December 31, 2017			September 24, 2017
Raw materials and work in process	$	174,891		$	161,664		$	155,947
Motorcycle finished goods	251,794			289,530			232,141
Parts & accessories and general merchandise	141,918			139,363			129,270
Inventory at lower of FIFO cost or net realizable value	568,603			590,557			517,358
Excess of FIFO over LIFO cost	(52,356		)	(52,355		)	(48,267		)
Total inventories, net	$	516,247		$	538,202		$	469,091

Operating Cash Flow

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



	Nine months ended
	September 30, 2018			September 24, 2017
Cash flows from operating activities:
Net income	$	530,956		$	513,445
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	196,461			163,974
Amortization of deferred loan origination costs	61,213			62,052
Amortization of financing origination fees	6,207			6,112
Provision for long-term employee benefits	28,162			22,427
Employee benefit plan contributions and payments	(11,035		)	(43,060		)
Stock compensation expense	29,122			25,581
Net change in wholesale finance receivables related to sales	(18,400		)	36,678
Provision for credit losses	72,462			99,059
Deferred income taxes	1,457			(5,151		)
Other, net	29,340			(11,122		)
Changes in current assets and liabilities:
Accounts receivable, net	(14,784		)	(29,167		)
Finance receivables - accrued interest and other	1,374			317
Inventories	8,270			50,016
Accounts payable and accrued liabilities	183,606			88,758
Derivative instruments	1,227			2,752
Other	16,917			(33,596		)
Total adjustments	591,599			435,630
Net cash provided by operating activities	$	1,122,555		$	949,075