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Employee Benefit Plans
 9 Months Ended
Sep. 29, 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, Motorcycles cost of goods sold and Inventories. 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
 
Nine months ended
 
September 29,
2019
 
September 30,
2018
 
September 29,
2019
 
September 30,
2018
Pension and SERPA Benefits:
 
 
 
 
 
 
 
Service cost
$
6,072

 
$
8,063

 
$
19,336

 
$
24,281

Interest cost
21,371

 
20,729

 
64,113

 
62,048

Expected return on plan assets
(35,581
)
 
(36,925
)
 
(106,743
)
 
(110,742
)
Amortization of unrecognized:
 
 
 
 
 
 
 
Prior service credit
(483
)
 
(105
)
 
(1,449
)
 
(316
)
Net loss
11,128

 
16,318

 
33,384

 
48,455

Settlement loss
1,500

 
—

 
1,500

 
—

Curtailment loss
—

 
—

 
—

 
1,018

Net periodic benefit cost
$
4,007

 
$
8,080

 
$
10,141

 
$
24,744

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Three months ended
 
Nine months ended
 
September 29,
2019
 
September 30,
2018
 
September 29,
2019
 
September 30,
2018
Postretirement Healthcare Benefits:
 
 
 
 
 
 
 
Service cost
$
1,040

 
$
1,789

 
$
3,409

 
$
5,390

Interest cost
2,938

 
2,886

 
8,814

 
8,669

Expected return on plan assets
(3,507
)
 
(3,541
)
 
(10,521
)
 
(10,623
)
Amortization of unrecognized:
 
 
 
 
 
 
 
Prior service credit
(595
)
 
(460
)
 
(1,785
)
 
(1,380
)
Net loss
69

 
454

 
207

 
1,362

Special retirement benefit cost
—

 
—

 
1,583

 
—

Curtailment gain
—

 
—

 
(960
)
 
—

Net periodic benefit cost
$
(55
)
 
$
1,128

 
$
747

 
$
3,418


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