Additional Balance Sheet and Cash Flow Information

9 Months Ended

Sep. 27, 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):

	September 27, 2020		December 31, 2019		September 29, 2019
Mutual funds	$	48,845	$	52,575	$	49,821

Mutual funds, included in Other long-term assets on the Consolidated balance sheets, are carried at fair value with gains and losses recorded in 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):

	September 27, 2020		December 31, 2019		September 29, 2019
Raw materials and work in process	$	152,740	$	235,433	$	189,144
Motorcycle finished goods	125,930		280,306		206,324
Parts & Accessories and General Merchandise	100,131		144,258		152,269
Inventory at lower of FIFO cost or net realizable value	378,801		659,997		547,737
Excess of FIFO over LIFO cost	(56,426)		(56,426)		(58,639)
	$	322,375	$	603,571	$	489,098

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

	Nine months ended
	September 27, 2020		September 29, 2019
Cash flows from operating activities:
Net income	$	97,696	$	410,139
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	140,057		174,609
Amortization of deferred loan origination costs	52,374		57,303
Amortization of financing origination fees	10,628		7,032
Provision for long-term employee benefits	23,557		10,888
Employee benefit plan contributions and payments	(5,456)		(11,166)
Stock compensation expense	12,076		25,323
Net change in wholesale finance receivables related to sales	330,793		683
Provision for credit losses	178,433		94,621
Deferred income taxes	(18,978)		3,535
Other, net	(9,320)		7,839
Changes in current assets and liabilities:
Accounts receivable, net	29,630		(7,833)
Finance receivables – accrued interest and other	5,097		(4,574)
Inventories, net	273,668		62,870
Accounts payable and accrued liabilities	(16,922)		13,138
Derivative financial instruments	(1,543)		2,537
Other	33,278		1,705
	1,037,372		438,510
Net cash provided by operating activities	$	1,135,068	$	848,649