Harley Davidson 2013 Annual Report Download - page 92

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92
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 2013 $ 729 $ (729)
Accumulated benefit obligation as of December 31, 2013 $ 13,318 $ (12,368)
Future Contributions and Benefit Payments:
No pension plan contributions are required in 2014. The Company expects it will continue to make on-going
contributions related to current benefit payments for SERPA and postretirement healthcare plans in 2014(1).
The expected benefit payments and Medicare subsidy receipts for the next five years and thereafter were as follows (in
thousands):
Pension
Benefits SERPA
Benefits
Postretirement
Healthcare
Benefits
Medicare
Subsidy
Receipts
2014 $ 68,418 $ 2,549 $ 30,694 $ 1,507
2015 $ 69,178 $ 1,440 $ 31,047 $ 1,716
2016 $ 70,098 $ 1,895 $ 30,644 $ 1,988
2017 $ 71,508 $ 1,880 $ 29,817 $ 2,224
2018 $ 73,150 $ 2,014 $ 28,785 $ 2,466
2019-2023 $ 430,427 $ 16,506 $ 147,623 $ 16,125
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 $14.9 million, $15.3 million and $12.5 million for Company contributions
during 2013, 2012 and 2011, 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 $12.5 million, $13.5 million and $11.6
million for 2013, 2012 and 2011, respectively.
Future minimum operating lease payments at December 31, 2013 were as follows (in thousands):
2014 $ 10,866
2015 9,943
2016 7,478
2017 5,479
2018 4,998
After 2018 19,790
Total operating lease payments $ 58,554
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
judgments or outcomes, as well as the potential range of possible loss. The required reserves are monitored on an ongoing basis
and are updated based on new developments or new information in each matter.
Environmental Protection Agency Notice
In December 2009, the Company received formal, written requests for information from the United States Environmental
Protection Agency (EPA) regarding: (i) certificates of conformity for motorcycle emissions and related designations and labels,
(ii) aftermarket parts, and (iii) warranty claims on emissions related components. The Company promptly submitted written