Harley Davidson 2014 Annual Report Download - page 90

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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
2015 $70,191 $1,148 $30,123 $1,380
2016 $71,110 $4,064 $28,455 $—
2017 $72,624 $1,872 $28,035 $—
2018 $74,515 $1,793 $26,964 $—
2019 $77,117 $2,432 $26,009 $—
2020-2024 $454,102 $16,577 $128,686 $—
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 $18.1 million, $14.9 million and $15.3 million for Company contributions
during 2014, 2013 and 2012, respectively.
90
14.€€€€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 $12.0 million, $12.5 million and $13.5
million for 2014, 2013 and 2012, respectively.
Future minimum operating lease payments at December€31, 2014 were as follows (in thousands):€
2015 $12,309
2016 9,342
2017 6,983
2018 5,535
2019 5,278
After 2019 15,955
Total operating lease payments $55,402
15.€€€€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
responses to the EPA’s inquiry and has engaged in discussions with the EPA. Since that time, the EPA has delivered various
additional requests for information to which the Company has responded. It is probable that a result of the EPA’s investigation
will be some form of enforcement action by the EPA that will seek a fine and/or other relief. The Company has a reserve
associated with this matter which is included in accrued liabilities in the Consolidated Balance Sheet. However, given the
uncertainty that still exists concerning the resolution of this matter, there is a possibility that the actual loss incurred may be
materially different than the Company’s current reserve. At this time, the Company cannot reasonably estimate the impact of
any remedies the EPA might seek beyond the Company's current reserve for this matter, if any.