Employee Benefit Plans

9 Months Ended

Sep. 25, 2011

Employee Benefit Plans [Abstract]

Employee Benefit Plans

16. Employee Benefit Plans

The Company has several defined benefit pension plans and several postretirement healthcare benefit plans, which cover substantially all 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. Components of net periodic benefit costs were as follows (in thousands):

	Three months ended						Nine months ended
	September 25, 2011			September 26, 2010			September 25, 2011			September 26, 2010
Pension and SERPA Benefits
Service cost	$	9,274		$	10,345		$	27,819		$	31,131
Interest cost		20,147			19,409			60,441			58,323
Expected return on plan assets		(26,652	)		(24,392	)		(79,959	)		(73,080	)
Amortization of unrecognized:
Prior service cost		746			1,085			2,235			3,351
Net loss		7,550			5,594			22,659			16,878
Curtailment loss		—			15,505			236			15,505
Settlement loss		—			476			—			3,058
Net periodic benefit cost	$	11,065		$	28,022		$	33,431		$	55,166
Postretirement Healthcare Benefits
Service cost	$	1,907		$	2,480		$	5,721		$	7,514
Interest cost		4,911			5,297			14,733			15,891
Expected return on plan assets		(2,346	)		(2,445	)		(7,038	)		(7,335	)
Amortization of unrecognized:
Prior service credit		(969	)		(629	)		(2,907	)		(1,887	)
Net loss		1,798			2,251			5,394			6,753
Curtailment loss		—			12,666			—			11,643
Net periodic benefit cost	$	5,301		$	19,620		$	15,903		$	32,579

The 2011 Restructuring Plan action resulted in a pension plan curtailment loss of $0.2 million, which is included in restructuring expense for the nine months ended September 25, 2011. The curtailment loss also resulted in a pension plan remeasurement during the first quarter of 2011 using a discount rate of 5.76% and a postretirement healthcare plan remeasurement using a discount rate of 5.30%. At December 31, 2010, the discount rates used to measure the pension plans and the postretirement healthcare plans were 5.79% and 5.28%, respectively. All other significant assumptions remain unchanged from the December 31, 2010 measurement date. As a result of the remeasurement, the Company recognized a funded status adjustment consisting of a $0.9 million decrease to its pension and postretirement healthcare liabilities and an increase to other comprehensive income of $0.9 million, or $0.5 million net of tax.

During the first nine months of 2010, the Company recorded a net curtailment loss of $27.1 million which was included in restructuring expense. The net curtailment loss consisted of a $28.2 million curtailment loss related to the 2010 Restructuring Plan and a $1.1 million curtailment gain related to the 2009 Restructuring Plan. Also included in the 2010 restructuring expense was a $3.1 million settlement loss related to its SERPA plans.

The settlement loss was the result of benefit payments made to former executives who departed from the Company during 2009 and 2010.

In January 2011, the Company voluntarily contributed $200.0 million in cash to further fund its pension plans. No additional pension contributions are required in 2011. The Company expects it will continue to make on-going contributions related to current benefit payments for SERPA and postretirement healthcare plans.