Additional Balance Sheet and Cash Flow Information

9 Months Ended

Sep. 29, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Additional Balance Sheet and Cash Flow Information

Investments in Marketable Securities

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



	September 29, 2019		December 31, 2018		September 30, 2018
Debt securities	$	—	$	10,007	$	10,011
Mutual funds	49,821		44,243		49,832
	$	49,821	$	54,250	$	59,843

Debt securities, which were included in Marketable securities on the Consolidated balance sheets, were carried at fair value with unrealized gains or losses reported in other comprehensive income. Mutual funds, 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. The mutual funds are held to support certain deferred compensation obligations.

Inventories

Substantially all inventories located in the U.S. 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 29, 2019			December 31, 2018			September 30, 2018
Raw materials and work in process	$	189,144		$	177,110		$	174,891
Motorcycle finished goods	206,324			301,630			251,794
Parts & accessories and general merchandise	152,269			136,027			141,918
Inventory at lower of FIFO cost or net realizable value	547,737			614,767			568,603
Excess of FIFO over LIFO cost	(58,639		)	(58,639		)	(52,356		)
	$	489,098		$	556,128		$	516,247

Operating Cash Flow

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



	Nine months ended
	September 29, 2019			September 30, 2018
Cash flows from operating activities:
Net income	$	410,139		$	530,956
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	174,609			196,461
Amortization of deferred loan origination costs	57,303			61,213
Amortization of financing origination fees	7,032			6,207
Provision for long-term employee benefits	10,888			28,162
Employee benefit plan contributions and payments	(11,166		)	(11,035		)
Stock compensation expense	25,323			29,122
Net change in wholesale finance receivables related to sales	683			(18,400		)
Provision for credit losses	94,621			72,462
Deferred income taxes	3,535			1,457
Other, net	7,839			29,340
Changes in current assets and liabilities:
Accounts receivable, net	(7,833		)	(14,784		)
Finance receivables - accrued interest and other	(4,574		)	1,374
Inventories	62,870			8,270
Accounts payable and accrued liabilities	13,138			183,606
Derivative instruments	2,537			1,227
Other	1,705			16,917
	438,510			591,599
Net cash provided by operating activities	$	848,649		$	1,122,555