Harley Davidson 2013 Annual Report Download - page 64

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64
Cash Flow Information:
The reconciliation of net income to net cash provided by operating activities of continuing operations is as follows (in
thousands):
2013 2012 2011
Cash flows from operating activities:
Net income $ 733,993 $ 623,925 $ 599,114
Income from discontinued operations — — 51,036
Income from continuing operations 733,993 623,925 548,078
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation 167,072 168,978 180,408
Amortization of deferred loan origination costs 86,181 78,592 78,695
Amortization of financing origination fees 9,376 9,969 10,790
Provision for employee long-term benefits 66,877 71,347 59,441
Contributions to pension and postretirement plans (204,796)(244,416)(219,695)
Stock compensation expense 41,244 40,815 38,192
Net change in wholesale finance receivables related to sales 28,865 2,513 (2,335)
Provision for credit losses 60,008 22,239 17,031
Loss on debt extinguishment 4,947 4,323 9,608
Pension and postretirement healthcare plan curtailment and
settlement expense — 6,242 236
Deferred income taxes 52,580 128,452 87,873
Foreign currency adjustments 16,269 9,773 10,678
Other, net 10,123 (7,216)(15,807)
Changes in current assets and liabilities:
Accounts receivable, net (36,653)(13,690) 43,050
Finance receivables – accrued interest and other (346)(4) 5,027
Inventories (46,474) 21,459 (94,957)
Accounts payable and accrued liabilities (53,623)(10,798) 120,291
Restructuring reserves (25,042)(16,087) 8,072
Derivative instruments (2,189) 2,758 (2,488)
Prepaid and other 68,681 (97,716) 3,103
Total adjustments 243,100 177,533 337,213
Net cash provided by operating activities of continuing operations $ 977,093 $ 801,458 $ 885,291
Cash paid during the period for interest and income taxes (in thousands):
2013 2012 2011
Interest $ 197,161 $ 225,228 $ 251,341
Income taxes $ 236,972 $ 317,812 $ 84,984
Interest paid represents interest payments of HDFS (included in financial services interest expense) and interest payments
of the Company (included in interest expense).
3. Discontinued Operations
In 2009, the Company unveiled a new business strategy to drive growth through a focus of efforts and resources on the
unique strengths of the Harley-Davidson brand and to enhance productivity and profitability through continuous improvement.
The Company’s Board of Directors approved and the Company committed to the divestiture of MV as part of this strategy.
At each subsequent reporting date through the date of sale of MV in August 2010, the Company estimated the fair value
of MV, less selling costs, and recognized the resulting impairment charges and tax benefits.