Harley Davidson 2015 Annual Report Download - page 82

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82
authorities. The Company believes that it has appropriate support for the positions taken on its tax returns and that its annual
tax provision includes amounts sufficient to pay any assessments. Nonetheless, the amounts ultimately paid, if any, upon
resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year.
The Company or one of its subsidiaries files income tax returns in the United States federal and Wisconsin state
jurisdictions and various other state and foreign jurisdictions. The Company is no longer subject to income tax examinations for
Wisconsin state income taxes before 2011 or for United States federal income taxes before 2012.
13. Employee Benefit Plans and Other Postretirement Benefits
The Company has a qualified defined benefit pension plan and several postretirement healthcare benefit plans, which
cover 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.
Pension benefits are based primarily on years of service and, for certain plans, levels of compensation. Employees are
eligible to receive postretirement healthcare benefits upon attaining age 55 after rendering at least 10 years of service to the
Company. Some of the plans require employee contributions to partially offset benefit costs.
Obligations and Funded Status:
The following table provides the changes in the benefit obligations, fair value of plan assets and funded status of the
Company’s pension, SERPA and postretirement healthcare plans as of the Company’s December 31, 2015 and 2014
measurement dates (in thousands):
Pension and SERPA Benefits Postretirement
Healthcare Benefits
2015 2014 2015 2014
Change in benefit obligation:
Benefit obligation, beginning of period $ 2,069,980 $ 1,714,650 $ 361,006 $ 366,524
Service cost 40,039 31,498 8,259 7,015
Interest cost 87,345 86,923 14,166 16,878
Actuarial (gains) losses (128,082) 309,542 (6,757)(2,870)
Plan participant contributions — — 2,587 2,368
Plan amendments 6,407 — — —
Special early retirement benefits 10,563 — 622 —
Benefits paid, net of Medicare Part D subsidy (77,252)(72,633)(25,144)(28,909)
Benefit obligation, end of period 2,009,000 2,069,980 354,739 361,006
Change in plan assets:
Fair value of plan assets, beginning of period 1,992,646 1,920,601 156,840 147,875
Actual return on plan assets (77,980) 143,040 (75) 8,965
Company contributions 4,553 1,638 23,937 28,048
Plan participant contributions — — 2,587 2,368
Benefits paid (77,252)(72,633)(26,524)(30,416)
Fair value of plan assets, end of period 1,841,967 1,992,646 156,765 156,840
Funded status of the plans, December 31 $ (167,033) $ (77,334) $ (197,974) $ (204,166)
Amounts recognized in the Consolidated Balance
Sheets, December 31:
Accrued benefit liability (current liabilities) $ (2,145) $ (1,148) $ (4,315) $ (1,160)
Accrued benefit liability (long-term liabilities) (164,888)(76,186)(193,659)(203,006)
Net amount recognized $ (167,033) $ (77,334) $ (197,974) $ (204,166)