Additional Balance Sheet and Cash Flow Information

6 Months Ended

Jun. 28, 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):

	June 28, 2020		December 31, 2019		June 30, 2019
Mutual funds	$	48,725	$	52,575	$	51,543

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):

	June 28, 2020		December 31, 2019		June 30, 2019
Raw materials and work in process	$	199,300	$	235,433	$	161,828
Motorcycle finished goods	180,895		280,306		218,069
Parts & accessories and general merchandise	105,570		144,258		149,352
Inventory at lower of FIFO cost or net realizable value	485,765		659,997		529,249
Excess of FIFO over LIFO cost	(56,426)		(56,426)		(58,639)
	$	429,339	$	603,571	$	470,610

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

	Six months ended
	June 28, 2020		June 30, 2019
Cash flows from operating activities:
Net (loss) income	$	(22,522)	$	323,576
Adjustments to reconcile Net (loss) income to Net cash provided by operating activities:
Depreciation and amortization	95,454		125,386
Amortization of deferred loan origination costs	33,796		38,036
Amortization of financing origination fees	6,661		4,522
Provision for long-term employee benefits	15,704		6,936
Employee benefit plan contributions and payments	(3,678)		(3,637)
Stock compensation expense	4,568		17,285
Net change in wholesale finance receivables related to sales	166,049		(167,594)
Provision for credit losses	170,598		60,874
Deferred income taxes	(19,461)		5,368
Other, net	(9,294)		(10,477)
Changes in current assets and liabilities:
Accounts receivable, net	(15,747)		(17,592)
Finance receivables – accrued interest and other	(2,985)		(4,963)
Inventories, net	163,700		88,146
Accounts payable and accrued liabilities	10,664		34,370
Derivative financial instruments	1,538		4,352
Other	15,158		(8,356)
	632,725		172,656
Net cash provided by operating activities	$	610,203	$	496,232