In February 2011, the Company's unionized employees at its facility in Kansas City, Missouri ratified a new seven-year labor agreement. The new agreement took effect on August 1, 2011. The new contract is similar to the labor agreements ratified at the Company's Wisconsin facilities in September 2010 and its York, Pennsylvania facility in December 2009, and allows for similar flexibility and increased production efficiency. Once the new contract is implemented, the production system in Kansas City, like Wisconsin and York, will include the addition of a flexible workforce component.

After taking actions to implement the new ratified labor agreement (2011 Restructuring Plan), the Company expects to have about 145 fewer full-time hourly unionized employees in its Kansas City facility than would be required under the existing contract. The new contract will be implemented in 2012.

Under the 2011 Restructuring Plan, restructuring expenses consist of employee severance and termination costs and other related costs. The Company expects to incur approximately $15 million in restructuring expenses related to the new contract through 2012, of which approximately 10% are expected to be non-cash. During the first nine months of 2011, the Company recorded a $8.2 million restructuring charge related to the 2011 Restructuring Plan.

The following table summarizes the Company's 2011 Restructuring Plan reserve recorded in accrued liabilities (in thousands):


	September 25, 2011
	Motorcycles & Related Products
	Employee
	Severance and
	Termination Costs			Other			Total
Restructuring expense	$	7,819		$	342		$	8,161
Utilized - cash		(3,948	)		(342	)		(4,290	)
Utilized - noncash		(236	)		—			(236	)

Balance June 26, 2011	$	3,635		$	—		$	3,635

For the nine months ended September 25, 2011, restructuring expense included $0.2 million of noncash curtailment losses related to the Company's pension plan that covers employees of the Kansas City facility.

In September 2010, the Company's unionized employees at its facilities in Milwaukee and Tomahawk, Wisconsin ratified three separate new seven-year labor agreements which take effect in April 2012 when the current contracts expire. The new contracts are similar to the labor agreement ratified at the Company's York, Pennsylvania facility in December 2009 and allow for similar flexibility and increased production efficiency. Once the new contracts are implemented, the production system in Wisconsin, like York, will include the addition of a flexible workforce component.

After taking actions to implement the new ratified labor agreements (2010 Restructuring Plan), the Company expects to have about 250 fewer full-time hourly unionized employees in its Milwaukee facilities when the contracts are implemented in 2012, than would be required under the existing contract. In Tomahawk, the Company expects to have about 75 fewer full-time hourly unionized employees when the contract is implemented, than would be required under the current contract.

Under the 2010 Restructuring Plan, restructuring expenses consist of employee severance and termination costs and other related costs. The Company expects to incur approximately $67 million in restructuring expenses related to the new contracts through 2012, of which approximately 42% are expected to be non-cash. On a cumulative basis, the Company has incurred $53.8 million of restructuring expense under the 2010 Restructuring Plan as of September 25, 2011, of which $9.4 million was incurred during the first nine months of 2011.

The following table summarizes changes in the Company's 2010 Restructuring Plan reserve which was recorded in accrued liabilities (in thousands):


	Nine months ended September 25, 2011									Nine months ended September 26, 2010
	Motorcycles & Related Products									Motorcycles & Related Products
	Employee									Employee
	Severance and									Severance and
	Termination Costs			Other			Total			Termination Costs			Other			Total
Beginning balance	$	8,652		$	—		$	8,652		$	—		$	—		$	—
Restructuring expense		9,432			(1	)		9,431			40,662			5			40,667
Utilized - cash		(828	)		1			(827	)		(2,141	)		(5	)		(2,146	)
Utilized - noncash		—			—			—			(28,171	)					(28,171	)

Ending Balance	$	17,256		$	—		$	17,256		$	10,350		$	—		$	10,350

During 2009, in response to the U.S. economic recession and worldwide slowdown in consumer demand, the Company committed to a volume reduction and a combination of restructuring actions (2009 Restructuring Plan) in the Motorcycles and Financial Services segments which are expected to be completed at various dates between 2009 and 2012. The 2009 Restructuring Plan was designed to reduce administrative costs, eliminate excess capacity and exit non-core business operations. The Company's significant announced actions include the restructuring and transformation of its York, Pennsylvania production facility including the implementation of a new more flexible unionized labor agreement; consolidation of facilities related to engine and transmission production; outsourcing of certain distribution and transportation activities and exiting the Buell product line.

The 2009 Restructuring Plan included a reduction of approximately 2,700 to 2,900 hourly production positions and approximately 720 non-production, primarily salaried positions within the Motorcycles segment and approximately 100 salaried positions in the Financial Services segment.

Under the 2009 Restructuring Plan, restructuring expenses consist of employee severance and termination costs, accelerated depreciation on the long-lived assets that will be exited as part of the 2009 Restructuring Plan and other related costs. The Company expects total costs related to the 2009 Restructuring Plan to result in restructuring and impairment expenses of approximately $401 million to $416 million from 2009 to 2012, of which approximately 30% are expected to be non-cash. On a cumulative basis, the Company has incurred $374.8 million of restructuring and impairment expense under the 2009 Restructuring Plan as of September 25, 2011, of which $31.4 million was incurred during the first nine months of 2011. Approximately 2,500 employees have left the Company under the 2009 Restructuring Plan as of September 25, 2011.

The following tables summarize changes in the Company's 2009 Restructuring Plan reserve which was recorded in accrued liabilities (in thousands):


	Nine months ended September 25, 2011
	Motorcycles & Related Products											Financial Services
	Employee											Employee
	Severance and			Accelerated								Severance and		Consolidated
	Termination Costs			Depreciation		Other			Total			Termination Costs		Total
Balance December 31, 2010	$	23,818		$	—	$	2,764		$	26,582		$	—	$	26,582
Restructuring expense		5,932			—		25,498			31,430			—		31,430
Utilized - cash		(13,000	)		—		(28,079	)		(41,079	)		—		(41,079	)
Utilized - noncash		—			—		—			—			—		—

Balance September 25, 2011	$	16,750		$	—	$	183		$	16,933		$	—	$	16,933


	Nine months ended September 26, 2010
	Motorcycles & Related Products												Financial Services
	Employee												Employee
	Severance and			Accelerated									Severance and			Consolidated
	Termination Costs			Depreciation			Other			Total			Termination Costs			Total
Balance December 31, 2009	$	36,070		$	—		$	31,422		$	67,492		$	219		$	67,711
Restructuring expense		31,948			44,425			28,977			105,170			—			105,170
Utilized - cash		(39,602	)		—			(47,990	)		(87,592	)		(44	)		(87,636	)
Utilized - noncash		1,023			(44,245	)		(2,819	)		(46,041	)		(175	)		(46,216	)

Balance September 26, 2010	$	29,439		$	—		$	9,590		$	39,029		$	—		$	39,029