Additional Balance Sheet and Cash Flow Information

Marketable Securities

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



	June 25, 2017		December 31, 2016		June 26, 2016
Available-for-sale securities: corporate bonds	$	—	$	5,519	$	5,070
Trading securities: mutual funds	44,156		38,119		37,651
Total marketable securities	$	44,156	$	43,638	$	42,721

The Company’s available-for-sale securities are carried at fair value with any unrealized gains or losses reported in other comprehensive income. During the first half of 2017 and 2016, unrealized losses were not material. There were no available-for-sale securities outstanding at June 25, 2017.

The Company's trading securities relate to investments held by the Company to fund certain deferred compensation obligations. The trading securities are carried at fair value with gains and losses recorded in net income, and investments are included in other long-term assets on the consolidated balance sheets.

Inventories

Inventories are valued at the lower of cost or net realizable value. Substantially all inventories located in the United States 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):



	June 25, 2017			December 31, 2016			June 26, 2016
Components at the lower of FIFO cost or net realizable value
Raw materials and work in process	$	117,199		$	140,639		$	134,702
Motorcycle finished goods	186,244			285,281			152,035
Parts and accessories and general merchandise	116,836			122,264			133,727
Inventory at lower of FIFO cost or net realizable value	420,279			548,184			420,464
Excess of FIFO over LIFO cost	(48,267		)	(48,267		)	(49,268		)
Total inventories, net	$	372,012		$	499,917		$	371,196

Operating Cash Flow

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



	Six months ended
	June 25, 2017			June 26, 2016
Cash flows from operating activities:
Net income	$	445,236		$	530,920
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	107,578			100,956
Amortization of deferred loan origination costs	40,771			43,555
Amortization of financing origination fees	4,079			5,146
Provision for long-term employee benefits	14,950			19,005
Employee benefit plan contributions and payments	(37,307		)	(35,189		)
Stock compensation expense	17,497			15,797
Net change in wholesale finance receivables related to sales	(271,927		)	(442,254		)
Provision for credit losses	69,806			60,584
Gain on off-balance sheet asset-backed securitization	—			(9,269		)
Deferred income taxes	178			(3,548		)
Other, net	(4,163		)	(20,508		)
Changes in current assets and liabilities:
Accounts receivable, net	(28,239		)	(55,109		)
Finance receivables - accrued interest and other	2,067			(125		)
Inventories	138,942			225,586
Accounts payable and accrued liabilities	133,120			53,790
Derivative instruments	3,114			(1,474		)
Other	(8,634		)	(31,573		)
Total adjustments	181,832			(74,630		)
Net cash provided by operating activities	$	627,068		$	456,290