Employee Benefit Plans

The Company has a defined benefit pension plan and postretirement healthcare benefit plans that cover certain employees of the Motorcycles segment. The Company also has unfunded supplemental employee retirement plan agreements (SERPA) with certain employees which were instituted to replace benefits lost under the Tax Revenue Reconciliation Act of 1993. Net periodic benefit costs are allocated between selling, administrative and engineering expense, cost of goods sold and inventory. Amounts capitalized in inventory are not significant. Components of net periodic benefit costs were as follows (in thousands):



	Three months ended						Nine months ended
	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
Pension and SERPA Benefits
Service cost	$	8,997		$	8,420		$	26,990		$	25,260
Interest cost	19,812			20,816			59,436			62,448
Expected return on plan assets	(31,832		)	(29,277		)	(95,496		)	(87,832		)
Amortization of unrecognized:
Prior service cost	437			740			1,310			2,219
Net loss	14,652			10,969			43,956			32,906
Net periodic benefit cost	$	12,066		$	11,668		$	36,196		$	35,001
Postretirement Healthcare Benefits
Service cost	$	1,965		$	1,854		$	5,894		$	5,560
Interest cost	3,900			4,578			11,699			13,733
Expected return on plan assets	(2,384		)	(2,356		)	(7,153		)	(7,068		)
Amortization of unrecognized:
Prior service credit	(963		)	(963		)	(2,890		)	(2,890		)
Net loss	2,137			1,855			6,412			5,566
Net periodic benefit cost	$	4,655		$	4,968		$	13,962		$	14,901

During the first nine months of 2013 and 2012, the Company voluntarily contributed $175 million and $200 million, respectively, in cash to further fund its pension plans. No additional pension contributions are required in 2013. The Company expects it will continue to make on-going contributions related to current benefit payments for SERPA and postretirement healthcare plans.