Harley Davidson 2012 Annual Report Download - page 93

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93
This healthcare cost trend rate assumption can have a significant effect on the amounts reported. A one-percentage-point
change in the assumed healthcare cost trend rate would have the following effects (in thousands):
One
Percent
Increase
One
Percent
Decrease
Total of service and interest cost components in 2012 $ 814 $ (789)
Accumulated benefit obligation as of December 31, 2012 $ 14,879 $ (13,948)
Future Contributions and Benefit Payments:
In January 2013, the Company voluntarily contributed $175.0 million to further fund its qualified pension plans. No
additional pension plan contributions are required in 2013. The Company expects it will continue to make on-going
contributions related to current benefit payments for SERPA and postretirement healthcare plans in 2013(1).
The expected benefit payments and Medicare subsidy receipts for the next five years and thereafter are as follows (in
thousands):
Pension
Benefits SERPA
Benefits
Postretirement
Healthcare
Benefits
Medicare
Subsidy
Receipts
2013 $ 66,638 $ 2,262 $ 30,054 $ 1,418
2014 $ 67,587 $ 2,725 $ 30,449 $ 1,639
2015 $ 68,536 $ 1,611 $ 30,735 $ 1,851
2016 $ 70,042 $ 1,691 $ 30,247 $ 2,104
2017 $ 72,095 $ 2,113 $ 29,679 $ 2,301
2018-2022 $ 414,800 $ 12,346 $ 146,714 $ 15,240
Defined Contribution Plans:
The Company has various defined contribution benefit plans that in total cover substantially all full-time employees.
Employees can make voluntary contributions in accordance with the provisions of their respective plan, which includes a 401
(k) tax deferral option. The Company expensed $15.3 million, $12.5 million and $12.6 million for Company contributions
during 2012, 2011 and 2010, respectively.
15. Leases
The Company operates certain administrative, manufacturing, warehouse and testing facilities and equipment under lease
arrangements that are accounted for as operating leases. Total rental expense was $13.5 million, $11.6 million and $11.0 million
for 2012, 2011 and 2010, respectively.
Future minimum operating lease payments at December 31, 2011 were as follows (in thousands):
2013 $ 12,556
2014 8,211
2015 7,702
2016 6,423
2017 3,783
After 2017 14,269
Total operating lease payments $ 52,944
16. Commitments and Contingencies
The Company is subject to lawsuits and other claims related to environmental, product and other matters. In determining
required reserves related to these items, the Company carefully analyzes cases and considers the likelihood of adverse