Harley Davidson 2012 Annual Report Download - page 92

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92
The following table presents a reconciliation of the fair value measurements using significant unobservable inputs (Level
3) as of December 31, 2011 (in thousands):
Total Limited Partnership
Interests Other
Balance, beginning of period $ 42,632 $ 40,421 $ 2,211
Actual return on plan assets:
Relating to assets still held at the reporting date (2,888)(3,018) 130
Purchases, sales and settlements 2,383 2,613 (230)
Balance, end of period $ 42,127 $ 40,016 $ 2,111
The fair values of the Company’s postretirement healthcare plan assets, which did not contain any Level 3 assets, as of
December 31, 2011, are as follows (in thousands):
Balance as of
December 31, 2011
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Assets:
Cash and cash equivalents $ 1,858 $ — $ 1,858
Equity holdings:
U.S. companies 79,544 79,091 453
Foreign companies 10,365 10,365 —
Total equity holdings 89,909 89,456 453
Fixed-income holdings:
U.S. Treasuries 7,237 7,237 —
Federal agencies 4,172 — 4,172
Corporate bonds 5,537 — 5,537
Foreign bonds 307 — 307
Municipal bonds 140 — 140
Total fixed-income holdings 17,393 7,237 10,156
Total postretirement healthcare plan assets $ 109,160 $ 96,693 $ 12,467
No plan assets are expected to be returned to the Company during the fiscal year ending December 31, 2013.
For 2013, the Company’s overall expected long-term rate of return on assets is 7.75%. The expected long-term rate of
return is based on the portfolio as a whole and not on the sum of the returns on individual asset categories. The return is based
on historical returns adjusted to reflect the current view of the long-term investment market.
Postretirement Healthcare Cost:
The weighted-average healthcare cost trend rate used in determining the accumulated postretirement benefit obligation of
the healthcare plans was as follows:
2012 2011
Healthcare cost trend rate for next year 7.5% 8.5%
Rate to which the cost trend rate is assumed to decline (the ultimate rate) 5.0% 5.0%
Year that the rate reaches the ultimate trend rate 2019 2019