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 among 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						Six months ended
	June 29, 2014			June 30, 2013			June 29, 2014			June 30, 2013
Pension and SERPA Benefits
Service cost	$	7,874		$	8,997		$	15,748		$	17,994
Interest cost	21,731			19,752			43,462			39,564
Expected return on plan assets	(34,184		)	(31,832		)	(68,368		)	(63,664		)
Amortization of unrecognized:
Prior service cost	279			437			558			874
Net loss	9,141			14,652			18,281			29,304
Net periodic benefit cost	$	4,841		$	12,006		$	9,681		$	24,072
Postretirement Healthcare Benefits
Service cost	$	1,754		$	1,965		$	3,508		$	3,930
Interest cost	4,220			3,900			8,439			7,800
Expected return on plan assets	(2,607		)	(2,384		)	(5,215		)	(4,768		)
Amortization of unrecognized:
Prior service credit	(963		)	(963		)	(1,927		)	(1,926		)
Net loss	1,182			2,137			2,364			4,274
Net periodic benefit cost	$	3,586		$	4,655		$	7,169		$	9,310

During the first six months of 2013, the Company voluntarily contributed $175 million in cash to further fund its pension plans. No pension contributions to qualified plans are required in 2014. The Company expects it will continue to make on-going contributions related to current benefit payments for SERPA and postretirement healthcare plans.