Employee Benefit Plans

3 Months Ended

Apr. 01, 2012

Employee Benefit Plans [Abstract]

Employee Benefit Plans

14. Employee Benefit Plans

The Company has defined benefit pension plans and 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
	April 1, 2012			March 27, 2011
Pension and SERPA Benefits
Service cost	$	8,420		$	9,273
Interest cost		20,816			20,147
Expected return on plan assets		(29,277	)		(26,653	)
Amortization of unrecognized:
Prior service cost		740			745
Net loss		10,969			7,554
Curtailment loss		—			236
Net periodic benefit cost	$	11,668		$	11,302
Postretirement Healthcare Benefits
Service cost	$	1,853		$	1,907
Interest cost		4,578			4,911
Expected return on plan assets		(2,356	)		(2,346	)
Amortization of unrecognized:
Prior service credit		(963	)		(969	)
Net loss		1,855			1,798
Net periodic benefit cost	$	4,967		$	5,301

The 2011 Restructuring Plan action resulted in a pension plan curtailment loss of $0.2 million, which is included in restructuring expense for the three months ended March 27, 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. As a result of the remeasurements, 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 quarter of 2012, the Company voluntarily contributed $200.0 million in cash to further fund its pension plans. No additional pension contributions are required in 2012. The Company also voluntarily contributed $200.0 million in cash to further fund its pension plans during the first quarter of 2011. The Company expects it will continue to make on-going contributions related to current benefit payments for SERPA and postretirement healthcare plans.