Harley Davidson 2015 Annual Report Download - page 89

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89
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 2015 $ 755 $ (605)
Accumulated benefit obligation as of December 31, 2015 $ 12,211 $ (10,875)
Future Contributions and Benefit Payments:
In January 2016, the Company voluntarily contributed $25.0 million to further fund its qualified pension plan. No
pension plan contributions are required in 2016. The Company expects it will continue to make on-going contributions related
to current benefit payments for SERPA and postretirement healthcare plans in 2016(1).
The expected benefit payments for the next five years and thereafter were as follows (in thousands):
Pension
Benefits SERPA
Benefits
Postretirement
Healthcare
Benefits
2016 $ 77,310 $ 2,145 $ 33,848
2017 $ 78,884 $ 2,215 $ 33,160
2018 $ 80,877 $ 2,234 $ 31,571
2019 $ 83,377 $ 2,683 $ 29,975
2020 $ 86,533 $ 2,976 $ 28,139
2021-2025 $ 497,276 $ 21,253 $ 129,295
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 $18.0 million, $18.1 million and $14.9 million for Company contributions
during 2015, 2014 and 2013, respectively.
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 $15.0 million, $12.0 million and $12.5
million for 2015, 2014 and 2013, respectively.
Future minimum operating lease payments at December 31, 2015 were as follows (in thousands):
2016 $ 13,727
2017 9,324
2018 7,725
2019 6,883
2020 4,772
Thereafter 13,098
Total operating lease payments $ 55,529
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.