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Additional Balance Sheet and Cash Flow Information | 12 Months Ended
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Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Additional Balance Sheet and Cash Flow Information | Additional Balance Sheet and Cash Flow Information The following information represents additional detail for selected line items included in the consolidated balance sheets at December 31, and the statements of cash flows for the years ended December 31. Balance Sheet Information: Inventories, net (in thousands):
|  | 2017 |  | 2016
Raw materials and work in process |  | $ | 161,664 |  |  | $ | 140,639 |
Motorcycle finished goods |  | 289,530 |  |  | 285,281 |
Parts and accessories and general merchandise |  | 139,363 |  |  | 122,264 |
Inventory at lower of FIFO cost or net realizable value |  | 590,557 |  |  | 548,184 |
Excess of FIFO over LIFO cost |  | (52,355 | ) |  | (48,267 | )
Total inventories, net |  | $ | 538,202 |  |  | $ | 499,917 |
Inventory obsolescence reserves deducted from FIFO cost were $38.7 million and $39.9 million as of December 31, 2017 and 2016, respectively. Property, plant and equipment, at cost (in thousands):
|  | 2017 |  | 2016
Land and related improvements |  | $ | 70,256 |  |  | $ | 65,533 |
Buildings and related improvements |  | 464,454 |  |  | 464,200 |
Machinery and equipment |  | 1,890,126 |  |  | 1,887,269 |
Software |  | 660,090 |  |  | 630,114 |
Construction in progress |  | 200,396 |  |  | 214,409 |
|  | 3,285,322 |  |  | 3,261,525 |
Accumulated depreciation |  | (2,317,541 | ) |  | (2,279,932 | )
Total property, plant and equipment, net |  | $ | 967,781 |  |  | $ | 981,593 |
Accrued liabilities (in thousands):
|  | 2017 |  | 2016
Payroll, employee benefits and related expenses |  | $ | 124,093 |  |  | $ | 148,221 |
Warranty and recalls |  | 75,089 |  |  | 57,698 |
Sales incentive programs |  | 48,309 |  |  | 43,218 |
Tax-related accruals |  | 25,944 |  |  | 26,140 |
Fair value of derivative financial instruments |  | 21,308 |  |  | 142 |
Accrued interest |  | 40,347 |  |  | 42,788 |
Other |  | 194,732 |  |  | 168,445 |
Total accrued liabilities |  | $ | 529,822 |  |  | $ | 486,652 |
Cash Flow Information: The reconciliation of net income to net cash provided by operating activities of continuing operations is as follows (in thousands):
|  | 2017 |  | 2016 |  | 2015
Cash flows from operating activities: |  |  |  |  |  |
Net income |  | $ | 521,759 |  |  | $ | 692,164 |  |  | $ | 752,207 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
Depreciation and amortization of intangibles |  | 222,188 |  |  | 209,555 |  |  | 198,074 |
Amortization of deferred loan origination costs |  | 82,911 |  |  | 86,681 |  |  | 93,546 |
Amortization of financing origination fees |  | 8,045 |  |  | 9,252 |  |  | 9,975 |
Provision for long-term employee benefits |  | 29,900 |  |  | 38,273 |  |  | 60,824 |
Employee benefit plan contributions and payments |  | (63,277 | ) |  | (55,809 | ) |  | (28,490 | )
Stock compensation expense |  | 32,491 |  |  | 32,336 |  |  | 29,433 |
Net change in wholesale finance receivables related to sales |  | 35,172 |  |  | (3,233 | ) |  | (113,970 | )
Provision for credit losses |  | 132,444 |  |  | 136,617 |  |  | 101,345 |
Gain on off-balance sheet asset-backed securitization |  | — |  |  | (9,269 | ) |  | — |
Loss on debt extinguishment |  | — |  |  | 118 |  |  | 1,099 |
Deferred income taxes |  | 50,855 |  |  | (165 | ) |  | (16,484 | )
Other, net |  | 8,559 |  |  | (6,907 | ) |  | 20,913 |
Changes in current assets and liabilities: |  |  |  |  |  |
Accounts receivable, net |  | (18,149 | ) |  | (45,934 | ) |  | (13,665 | )
Finance receivables – accrued interest and other |  | (1,313 | ) |  | (1,489 | ) |  | (3,046 | )
Inventories |  | (20,584 | ) |  | 85,072 |  |  | (155,222 | )
Accounts payable and accrued liabilities |  | 10,128 |  |  | 38,237 |  |  | 138,823 |
Derivative instruments |  | 1,866 |  |  | (3,413 | ) |  | (5,615 | )
Other |  | (27,934 | ) |  | (27,747 | ) |  | 30,371 |
Total adjustments |  | 483,302 |  |  | 482,175 |  |  | 347,911 |
Net cash provided by operating activities |  | $ | 1,005,061 |  |  | $ | 1,174,339 |  |  | $ | 1,100,118 |
Cash paid during the period for interest and income taxes (in thousands):
|  | 2017 |  | 2016 |  | 2015
Interest |  | $ | 204,866 |  |  | $ | 185,804 |  |  | $ | 148,654 |
Income taxes |  | $ | 300,113 |  |  | $ | 356,553 |  |  | $ | 371,547 |
Interest paid represents interest payments of HDFS (included in financial services interest expense) and interest payments of the Company (included in interest expense).

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