Additional Balance Sheet and Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2018

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

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

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):