Additional Balance Sheet and Cash Flow Information

3 Months Ended

Mar. 29, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Additional Balance Sheet and Cash Flow Information

Additional Balance Sheet and Cash Flow Information

Investments in Marketable Securities – The Company’s investments in marketable securities consisted of the following (in thousands):

	March 29, 2020		December 31, 2019		March 31, 2019
Debt securities	$	—	$	—	$	10,003
Mutual funds	44,144		52,575		49,896
	$	44,144	$	52,575	$	59,899

Debt securities, included in Marketable securities on the Consolidated balance sheets, are carried at fair value with unrealized gains or losses reported in other comprehensive income. Mutual funds, included in Other long-term assets on the Consolidated balance sheets, are carried at fair value with gains and losses recorded in net income. Mutual funds are held to support certain deferred compensation obligations.

Inventories, net – 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, net consisted of the following (in thousands):

	March 29, 2020		December 31, 2019		March 31, 2019
Raw materials and work in process	$	245,384	$	235,433	$	204,759
Motorcycle finished goods	272,648		280,306		304,386
Parts & accessories and general merchandise	149,318		144,258		145,300
Inventory at lower of FIFO cost or net realizable value	667,350		659,997		654,445
Excess of FIFO over LIFO cost	(56,426)		(56,426)		(58,639)
	$	610,924	$	603,571	$	595,806

Operating Cash Flow – The reconciliation of Net income to Net cash (used) provided by operating activities was as follows (in thousands):

	Three months ended
	March 29, 2020		March 31, 2019
Cash flows from operating activities:
Net income	$	69,695	$	127,945
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	47,427		64,372
Amortization of deferred loan origination costs	16,739		18,968
Amortization of financing origination fees	2,999		2,194
Provision for long-term employee benefits	7,852		3,156
Employee benefit plan contributions and payments	(1,608)		(2,507)
Stock compensation expense	3,896		6,537
Net change in wholesale finance receivables related to sales	(208,183)		(237,569)
Provision for credit losses	79,419		34,491
Deferred income taxes	(3,803)		5,981
Other, net	3,579		2,731
Changes in current assets and liabilities:
Accounts receivable, net	(47,272)		(49,746)
Finance receivables – accrued interest and other	4,007		92
Inventories, net	(23,943)		(40,600)
Accounts payable and accrued liabilities	10,562		123,975
Derivative financial instruments	2,812		867
Other	27,240		(28,216)
	(78,277)		(95,274)
Net cash (used) provided by operating activities	$	(8,582)	$	32,671