Employee Benefit Plans

3 Months Ended

Mar. 27, 2016

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

Employee Benefit Plans

The Company has a defined benefit qualified 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
	March 27, 2016			March 29, 2015
Pension and SERPA Benefits
Service cost	$	8,359		$	10,010
Interest cost	22,707			21,836
Expected return on plan assets	(36,445		)	(36,232		)
Amortization of unrecognized:
Prior service cost	255			109
Net loss	11,587			13,677
Settlement loss	300			—
Net periodic benefit cost	$	6,763		$	9,400
Postretirement Healthcare Benefits
Service cost	$	1,870		$	2,065
Interest cost	3,704			3,541
Expected return on plan assets	(3,017		)	(2,877		)
Amortization of unrecognized:
Prior service credit	(701		)	(804		)
Net loss	884			993
Net periodic benefit cost	$	2,740		$	2,918

During the first three months of 2016, the Company voluntarily contributed $25.0 million in cash to further fund its pension plan. There are no required pension plan contributions to qualified plans in 2016. The Company expects it will continue to make ongoing benefit payments under the SERPA and postretirement healthcare plans.