HARLEY DAVIDSON INC | 2013 | FY | 3


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




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