Employee Benefit Plans

6 Months Ended

Jun. 26, 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						Six months ended
	June 26, 2016			June 28, 2015			June 26, 2016			June 28, 2015
Pension and SERPA Benefits
Service cost	$	8,359		$	10,010		$	16,718		$	20,020
Interest cost	22,707			21,836			45,414			43,672
Expected return on plan assets	(36,445		)	(36,232		)	(72,890		)	(72,465		)
Amortization of unrecognized:
Prior service cost	255			109			510			218
Net loss	11,588			13,677			23,176			27,354
Settlement loss	300			—			600			—
Net periodic benefit cost	$	6,764		$	9,400		$	13,528		$	18,799
Postretirement Healthcare Benefits
Service cost	$	1,870		$	2,065		$	3,740		$	4,130
Interest cost	3,704			3,541			7,408			7,082
Expected return on plan assets	(3,017		)	(2,877		)	(6,034		)	(5,754		)
Amortization of unrecognized:
Prior service credit	(701		)	(804		)	(1,402		)	(1,608		)
Net loss	884			993			1,768			1,986
Net periodic benefit cost	$	2,740		$	2,918		$	5,480		$	5,836

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