Employee Benefit Plans

6 Months Ended

Jun. 28, 2015

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

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 28, 2015			June 29, 2014			June 28, 2015			June 29, 2014
Pension and SERPA Benefits
Service cost	$	10,010		$	7,874		$	20,020		$	15,748
Interest cost	21,836			21,731			43,672			43,462
Expected return on plan assets	(36,232		)	(34,184		)	(72,465		)	(68,368		)
Amortization of unrecognized:
Prior service cost	109			279			218			558
Net loss	13,677			9,141			27,354			18,281
Net periodic benefit cost	$	9,400		$	4,841		$	18,799		$	9,681
Postretirement Healthcare Benefits
Service cost	$	2,065		$	1,754		$	4,130		$	3,508
Interest cost	3,541			4,220			7,082			8,439
Expected return on plan assets	(2,877		)	(2,607		)	(5,754		)	(5,215		)
Amortization of unrecognized:
Prior service credit	(804		)	(963		)	(1,608		)	(1,927		)
Net loss	993			1,182			1,986			2,364
Net periodic benefit cost	$	2,918		$	3,586		$	5,836		$	7,169

No pension contributions to qualified plans are required in 2015. The Company expects it will continue to make on-going contributions related to current benefit payments for SERPA and postretirement healthcare plans.