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Employee Benefit Plans
 9 Months Ended
Sep. 30, 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 cost. Components of net periodic benefit cost were as follows (in thousands):
 
Three months ended
 
Nine months ended
 
September 30,
2018
 
September 24,
2017
 
September 30,
2018
 
September 24,
2017
Pension and SERPA Benefits
 
 
 
 
 
 
 
Service cost
$
8,063

 
$
7,896

 
$
24,281

 
$
23,688

Interest cost
20,729

 
21,269

 
62,048

 
63,807

Expected return on plan assets
(36,925
)
 
(35,345
)
 
(110,742
)
 
(106,035
)
Amortization of unrecognized:
 
 
 
 
 
 
 
Prior service (credit) cost
(105
)
 
256

 
(316
)
 
764

Net loss
16,318

 
10,998

 
48,455

 
32,994

Curtailment loss
—

 
—

 
1,018

 
—

Net periodic benefit cost
$
8,080

 
$
5,074

 
$
24,744

 
$
15,218

Postretirement Healthcare Benefits
 
 
 
 
 
 
 
Service cost
$
1,789

 
$
1,875

 
$
5,390

 
$
5,625

Interest cost
2,886

 
3,412

 
8,669

 
10,236

Expected return on plan assets
(3,541
)
 
(3,156
)
 
(10,623
)
 
(9,468
)
Amortization of unrecognized:
 
 
 
 
 
 
 
Prior service credit
(460
)
 
(543
)
 
(1,380
)
 
(1,629
)
Net loss
454

 
815

 
1,362

 
2,445

Net periodic benefit cost
$
1,128

 
$
2,403

 
$
3,418

 
$
7,209


During the nine months ended September 30, 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 nine months ended September 30, 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.