Employee Benefit Plans

6 Months Ended

Jun. 25, 2017

Compensation and Retirement Disclosure [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. Net periodic benefit costs are allocated among selling, administrative and engineering expense, cost of goods sold and inventory. Amounts capitalized in inventory are not significant. Components of net periodic benefit costs were as follows (in thousands):

	Three months ended						Six months ended
	June 25, 2017			June 26, 2016			June 25, 2017			June 26, 2016
Pension and SERPA Benefits
Service cost	$	7,896		$	8,359		$	15,792		$	16,718
Interest cost	21,269			22,707			42,538			45,414
Expected return on plan assets	(35,345		)	(36,445		)	(70,690		)	(72,890		)
Amortization of unrecognized:
Prior service cost	254			255			508			510
Net loss	10,998			11,588			21,996			23,176
Settlement loss	—			300			—			600
Net periodic benefit cost	$	5,072		$	6,764		$	10,144		$	13,528
Postretirement Healthcare Benefits
Service cost	$	1,875		$	1,870		$	3,750		$	3,740
Interest cost	3,412			3,704			6,824			7,408
Expected return on plan assets	(3,156		)	(3,017		)	(6,312		)	(6,034		)
Amortization of unrecognized:
Prior service credit	(543		)	(701		)	(1,086		)	(1,402		)
Net loss	815			884			1,630			1,768
Net periodic benefit cost	$	2,403		$	2,740		$	4,806		$	5,480

During the first half of 2017, the Company voluntarily contributed $25.0 million in cash to further fund its qualified pension plan. There are no required or planned contributions to the qualified pension plan for the remainder of 2017. The Company expects it will continue to make ongoing benefit payments under the SERPA and postretirement healthcare plans.