Employee Benefit Plans

9 Months Ended

Sep. 30, 2012

Employee Benefit Plans

Employee Benefit Plans

The Company has defined benefit pension plans and postretirement healthcare benefit plans, that 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 30, 2012			September 25, 2011			September 30, 2012			September 25, 2011
Pension and SERPA Benefits
Service cost	$	8,420		$	9,274		$	25,260		$	27,819
Interest cost	20,816			20,147			62,448			60,441
Expected return on plan assets	(29,277		)	(26,652		)	(87,832		)	(79,959		)
Amortization of unrecognized:
Prior service cost	740			746			2,219			2,235
Net loss	10,969			7,550			32,906			22,659
Curtailment loss	—			—			—			236
Net periodic benefit cost	$	11,668		$	11,065		$	35,001		$	33,431
Postretirement Healthcare Benefits
Service cost	$	1,854		$	1,907		$	5,560		$	5,721
Interest cost	4,578			4,911			13,733			14,733
Expected return on plan assets	(2,356		)	(2,346		)	(7,068		)	(7,038		)
Amortization of unrecognized:
Prior service credit	(963		)	(969		)	(2,890		)	(2,907		)
Net loss	1,855			1,798			5,566			5,394
Net periodic benefit cost	$	4,968		$	5,301		$	14,901		$	15,903

During the first nine months of 2012 and 2011, the Company voluntarily contributed $200 million in cash to further fund its pension plans. No additional pension contributions are required in 2012. The Company expects it will continue to make on-going contributions related to current benefit payments for SERPA and postretirement healthcare plans.