Employee Benefit Plans

6 Months Ended

Jul. 01, 2012

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						Six months ended
	July 1,			June 26,			July 1,			June 26,
	2012			2011			2012			2011
Pension and SERPA Benefits
Service cost	$	8,420		$	9,273		$	16,840		$	18,545
Interest cost		20,816			20,147			41,632			40,294
Expected return on plan assets		(29,277	)		(26,653	)		(58,555	)		(53,307	)
Amortization of unrecognized:
Prior service cost		740			745			1,479			1,489
Net loss		10,969			7,554			21,937			15,109
Curtailment loss		—			—			—			236
Net periodic benefit cost	$	11,668		$	11,066		$	23,333		$	22,366
Postretirement Healthcare Benefits
Service cost	$	1,853		$	1,907		$	3,706		$	3,814
Interest cost		4,578			4,911			9,155			9,822
Expected return on plan assets		(2,356	)		(2,346	)		(4,712	)		(4,692	)
Amortization of unrecognized:
Prior service credit		(963	)		(969	)		(1,927	)		(1,938	)
Net loss		1,855			1,798			3,711			3,596
Net periodic benefit cost	$	4,967		$	5,301		$	9,933		$	10,602

During the first six months 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 six months of 2011. The Company expects it will continue to make on-going contributions related to current benefit payments for SERPA and postretirement healthcare plans.