Harley Davidson 2012 Annual Report Download - page 64

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64
value adjusted for vested awards. Total share-based award compensation expense recognized by the Company during 2012,
2011 and 2010 was $40.8 million, $38.2 million and $30.4 million, respectively, or $25.7 million, $24.0 million and $19.2
million net of taxes, respectively.
Income Tax Expense – The Company recognizes interest and penalties related to unrecognized tax benefits in the
provision for income taxes.
New Accounting Standards
Accounting Standards Recently Adopted
In May 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.
2011-4. "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS."
ASU No. 2011-04 clarifies the application of the existing guidance within Accounting Standards Codification (ASC) Topic 820,
"Fair Value Measurement", to ensure consistency between U.S. GAAP and International Financial Reporting Standards. ASU
No. 2011-04 also requires new disclosures about purchases, sales, issuances, and settlements related to Level 3 measurements
and also requires new disclosures around transfers into and out of Level 1 and 2 in the fair value hierarchy. The Company
adopted ASU No. 2011-04 on January 1, 2012. The required new disclosures are presented in Note 9.
In June 2011, the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income”. ASU No. 2011-05 amends
the guidance within ASC Topic 220, “Comprehensive Income”, to eliminate the option to present the components of other
comprehensive income as part of the statement of shareholders’ equity. ASU No. 2011-05 requires that all nonowner changes in
shareholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but
consecutive statements. The Company decided to present comprehensive income in two separate but consecutive statements.
The Company adopted ASU No. 2011-05 on January 1, 2012. The adoption of ASU No. 2011-05 and the Company’s decision
to present comprehensive income in two separate but consecutive statements required the presentation of an additional financial
statement, consolidated statements of comprehensive income, for all periods presented.
2. 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):
2012 2011
Components at the lower of FIFO cost or market
Raw materials and work in process $ 111,335 $ 113,932
Motorcycle finished goods 205,660 226,261
Parts and accessories and general merchandise 122,418 121,340
Inventory at lower of FIFO cost or market 439,413 461,533
Excess of FIFO over LIFO cost (45,889)(43,527)
$ 393,524 $ 418,006
Inventory obsolescence reserves deducted from FIFO cost were $22.9 million and $24.8 million as of December 31, 2012
and 2011, respectively.