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Employee Benefit Plans
 6 Months Ended
Jul. 01, 2018
Retirement Benefits [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. Service cost is allocated among selling, administrative and engineering expense, cost of goods sold and inventory. Amounts capitalized in inventory are not significant. Non-service cost components of net periodic benefit cost are presented in other income (expense), net. Refer to Note 2 regarding the adoption of ASU 2017-07 for further discussion of the impact on net periodic benefit costs. Components of net periodic benefit costs were as follows (in thousands):
 
Three months ended
 
Six months ended
 
July 1,
2018
 
June 25,
2017
 
July 1,
2018
 
June 25,
2017
Pension and SERPA Benefits
 
 
 
 
 
 
 
Service cost
$
8,063

 
$
7,896

 
$
16,218

 
$
15,792

Interest cost
20,729

 
21,269

 
41,319

 
42,538

Expected return on plan assets
(36,926
)
 
(35,345
)
 
(73,817
)
 
(70,690
)
Amortization of unrecognized:
 
 
 
 
 
 
 
Prior service (credit) cost
(105
)
 
254

 
(211
)
 
508

Net loss
16,318

 
10,998

 
32,137

 
21,996

Curtailment loss
—

 
—

 
1,018

 
—

Net periodic benefit cost
$
8,079

 
$
5,072

 
$
16,664

 
$
10,144

Postretirement Healthcare Benefits
 
 
 
 
 
 
 
Service cost
$
1,789

 
$
1,875

 
$
3,601

 
$
3,750

Interest cost
2,886

 
3,412

 
5,783

 
6,824

Expected return on plan assets
(3,541
)
 
(3,156
)
 
(7,082
)
 
(6,312
)
Amortization of unrecognized:
 
 
 
 
 
 
 
Prior service credit
(460
)
 
(543
)
 
(920
)
 
(1,086
)
Net loss
454

 
815

 
908

 
1,630

Net periodic benefit cost
$
1,128

 
$
2,403

 
$
2,290

 
$
4,806


During the six months ended July 1, 2018, the qualified pension plan and certain postretirement healthcare plan assets and obligations were remeasured as a result of a curtailment of benefits related to the planned closure of the Company's motorcycle assembly plant in Kansas City, Missouri, discussed further in Note 4. As a result of the remeasurement, the Company recorded a benefit of $96.4 million before income taxes in other comprehensive income during the six months ended July 1, 2018.
There are no required or planned qualified pension plan contributions for 2018. The Company expects it will continue to make ongoing benefit payments under the SERPA and postretirement healthcare plans.