Additional Balance Sheet and Cash Flow Information

Investments in Marketable Securities

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



	March 31, 2019		December 31, 2018		April 1, 2018
Debt securities	$	10,003	$	10,007	$	—
Mutual funds	49,896		44,243		49,402
Total marketable securities	$	59,899	$	54,250	$	49,402

The debt securities, which are included in Marketable securities on the consolidated balance sheets, are carried at fair value with unrealized gains or losses reported in other comprehensive income. The mutual fund investments are held to fund certain deferred compensation obligations. These investments, which are included in Other long-term assets on the consolidated balance sheets, are carried at fair value with gains and losses recorded in net income.

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):



	March 31, 2019			December 31, 2018			April 1, 2018
Raw materials and work in process	$	204,759		$	177,110		$	177,652
Motorcycle finished goods	304,386			301,630			289,046
Parts & accessories and general merchandise	145,300			136,027			150,228
Inventory at lower of FIFO cost or net realizable value	654,445			614,767			616,926
Excess of FIFO over LIFO cost	(58,639		)	(58,639		)	(52,355		)
Total inventories, net	$	595,806		$	556,128		$	564,571

Operating Cash Flow

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



	Three months ended
	March 31, 2019			April 1, 2018
Cash flows from operating activities:
Net income	$	127,945		$	174,763
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	64,372			62,473
Amortization of deferred loan origination costs	18,968			20,116
Amortization of financing origination fees	2,194			2,028
Provision for long-term employee benefits	3,156			9,747
Employee benefit plan contributions and payments	(2,507		)	(5,486		)
Stock compensation expense	6,537			7,962
Net change in wholesale finance receivables related to sales	(237,569		)	(239,902		)
Provision for credit losses	34,491			30,052
Deferred income taxes	5,981			3,188
Other, net	2,731			(1,902		)
Changes in current assets and liabilities:
Accounts receivable, net	(49,746		)	(17,688		)
Finance receivables - accrued interest and other	92			4,758
Inventories	(40,600		)	(21,542		)
Accounts payable and accrued liabilities	123,975			148,923
Derivative instruments	867			702
Other	(28,216		)	13,402
Total adjustments	(95,274		)	16,831
Net cash provided by operating activities	$	32,671		$	191,594