Harley Davidson 2014 Annual Report Download - page 61

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New Accounting Standards
Accounting Standards Not Yet Adopted
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)
No.€2014-09 Revenue from Contracts with Customers (ASU No. 2014-09). ASU No.€2014-09 is a comprehensive new revenue
recognition model that requires a company to recognize revenue to depict the transfer of goods or services to customers in an
amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The
Company is required to adopt ASU No. 2014-09 for fiscal years beginning after December 15, 2016 and for interim periods
therein. The Company is currently evaluating the impact of adoption.
Accounting Standards Recently Adopted
In July 2013, the FASB issued 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 adopted ASU No.
2013-11 on January 1, 2014. There were no material presentation changes resulting from the adoption of ASU No. 2013-11.
61
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):€
2014 2013
Components at the lower of FIFO cost or market
Raw materials and work in process $151,254 $140,302
Motorcycle finished goods 230,309 205,416
Parts and accessories and general merchandise 117,210 127,515
Inventory at lower of FIFO cost or market 498,773 473,233
Excess of FIFO over LIFO cost (49,902)(48,726)
Total inventories, net $448,871 $424,507
Inventory obsolescence reserves deducted from FIFO cost were $17.8 million and $17.5 million as of December€31, 2014
and 2013, respectively.
Property, plant and equipment, at cost (in thousands):€
2014 2013
Land and related improvements $55,238 $56,146
Buildings and related improvements 475,268 424,431
Machinery and equipment 1,823,790 1,816,599
Software 440,703 337,210
Construction in progress 200,708 168,598
2,995,707 2,802,984
Accumulated depreciation (2,112,630)(1,960,507)
Total property, plant and equipment, at cost $883,077 $842,477