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Employee Benefit Plans
 6 Months Ended
Jun. 30, 2019
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. Components of net periodic benefit cost were as follows (in thousands):
 
Three months ended
 
Six months ended
 
June 30,
2019
 
July 1,
2018
 
June 30,
2019
 
July 1,
2018
Pension and SERPA Benefits:
 
 
 
 
 
 
 
Service cost
$
6,632

 
$
8,063

 
$
13,264

 
$
16,218

Interest cost
21,371

 
20,729

 
42,742

 
41,319

Expected return on plan assets
(35,581
)
 
(36,926
)
 
(71,162
)
 
(73,817
)
Amortization of unrecognized:
 
 
 
 
 
 
 
Prior service credit
(483
)
 
(105
)
 
(966
)
 
(211
)
Net loss
11,128

 
16,318

 
22,256

 
32,137

Curtailment loss
—

 
—

 
—

 
1,018

Net periodic benefit cost
$
3,067

 
$
8,079

 
$
6,134

 
$
16,664

Postretirement Healthcare Benefits:
 
 
 
 
 
 
 
Service cost
$
1,185

 
$
1,789

 
$
2,369

 
$
3,601

Interest cost
2,938

 
2,886

 
5,876

 
5,783

Expected return on plan assets
(3,507
)
 
(3,541
)
 
(7,014
)
 
(7,082
)
Amortization of unrecognized:
 
 
 
 
 
 
 
Prior service credit
(595
)
 
(460
)
 
(1,190
)
 
(920
)
Net loss
69

 
454

 
138

 
908

Special retirement benefits
1,583

 
—

 
1,583

 
—

Curtailment gain
(960
)
 
—

 
(960
)
 
—

Net periodic benefit cost
$
713

 
$
1,128

 
$
802

 
$
2,290


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 2019. The Company expects it will continue to make ongoing benefit payments under the SERPA and postretirement healthcare plans.