Additional Balance Sheet and Cash Flow Information

The following information represents additional detail for selected line items included in the consolidated balance sheets at December 31, and the statements of cash flows for the years ended December 31.

Balance Sheet Information:

Inventories, net (in thousands):



	2018			2017
Raw materials and work in process	$	177,110		$	161,664
Motorcycle finished goods	301,630			289,530
Parts & accessories and general merchandise	136,027			139,363
Inventory at lower of FIFO cost or net realizable value	614,767			590,557
Excess of FIFO over LIFO cost	(58,639		)	(52,355		)
Total inventories, net	$	556,128		$	538,202

Inventory obsolescence reserves deducted from FIFO cost were $39.0 million and $38.7 million as of December 31, 2018 and 2017, respectively.

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



	2018			2017
Land and related improvements	$	73,025		$	70,256
Buildings and related improvements	483,965			464,454
Machinery and equipment	1,740,405			1,890,126
Software	733,180			660,090
Construction in progress	205,786			200,396
	3,236,361			3,285,322
Accumulated depreciation	(2,332,229		)	(2,317,541		)
Total property, plant and equipment, net	$	904,132		$	967,781

Accrued liabilities (in thousands):



	2018		2017
Payroll, employee benefits and related expenses	$	125,056	$	124,093
Restructuring reserves	28,498		—
Warranty and recalls	103,074		75,089
Sales incentive programs	57,525		48,309
Tax-related accruals	43,083		25,944
Fair value of derivative financial instruments	5,316		21,308
Accrued interest	47,977		40,347
Other	190,601		194,732
Total accrued liabilities	$	601,130	$	529,822

Cash Flow Information:

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



	2018			2017			2016
Cash flows from operating activities:
Net income	$	531,451		$	521,759		$	692,164
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	264,863			222,188			209,555
Amortization of deferred loan origination costs	81,315			82,911			86,681
Amortization of financing origination fees	8,367			8,045			9,252
Provision for long-term employee benefits	36,481			29,900			38,273
Employee benefit plan contributions and payments	(10,544		)	(63,277		)	(55,809		)
Stock compensation expense	35,539			32,491			32,336
Net change in wholesale finance receivables related to sales	(56,538		)	35,172			(3,233		)
Provision for credit losses	106,870			132,444			136,617
Gain on off-balance sheet asset-backed securitization	—			—			(9,269		)
Loss on debt extinguishment	—			—			118
Deferred income taxes	(33,981		)	50,855			(165		)
Other, net	37,554			8,559			(6,907		)
Changes in current assets and liabilities:
Accounts receivable, net	9,143			(18,149		)	(45,934		)
Finance receivables – accrued interest and other	773			(1,313		)	(1,489		)
Inventories	(31,059		)	(20,584		)	85,072
Accounts payable and accrued liabilities	196,192			10,128			38,237
Derivative instruments	473			1,866			(3,413		)
Other	29,022			(27,934		)	(27,747		)
Total adjustments	674,470			483,302			482,175
Net cash provided by operating activities	$	1,205,921		$	1,005,061		$	1,174,339

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



	2018		2017		2016
Interest	$	207,484	$	204,866	$	185,804
Income taxes	$	149,436	$	300,113	$	356,553

Interest paid represents interest payments of HDFS (included in Financial Services interest expense) and interest payments of the Company (included in interest expense).