Harley Davidson 2013 Annual Report Download - page 62

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62
New Accounting Standards
Accounting Standards Not Yet Adopted
In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)
No. 2013-11 Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a
Tax Credit Carryforward Exists (ASU No. 2013-11). ASU No. 2013-11 amends the guidance within Accounting Standards
Codification (ASC) Topic 740, "Income Taxes", to require entities to present an unrecognized tax benefit, or a portion of an
unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward,
a similar tax loss, or a tax credit carryforward. The Company is required to adopt ASU No. 2013-11 beginning in the first
quarter of 2014 and is currently evaluating the impact of adoption.
Accounting Standards Recently Adopted
In February 2013, the FASB issued ASU No. 2013-02 Reporting of Amounts Reclassified Out of Accumulated Other
Comprehensive Income (ASU No. 2013-02). ASU No. 2013-02 requires entities to report the effect of significant
reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being
reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required
under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-
reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. The Company
adopted ASU No. 2013-02 effective on January 1, 2013. The required new disclosures are presented in Note 11.
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):
2013 2012
Components at the lower of FIFO cost or market
Raw materials and work in process $ 140,302 $ 111,335
Motorcycle finished goods 205,416 205,660
Parts and accessories and general merchandise 127,515 122,418
Inventory at lower of FIFO cost or market 473,233 439,413
Excess of FIFO over LIFO cost (48,726)(45,889)
$ 424,507 $ 393,524
Inventory obsolescence reserves deducted from FIFO cost were $17.5 million and $22.9 million as of December 31, 2013
and 2012, respectively.
Property, plant and equipment, at cost (in thousands):
2013 2012
Land and related improvements $ 56,146 $ 57,801
Buildings and related improvements 424,485 417,316
Machinery and equipment 2,153,755 2,042,484
Construction in progress 168,598 167,243
2,802,984 2,684,844
Accumulated depreciation (1,960,507)(1,869,380)
$ 842,477 $ 815,464