Harley Davidson 2013 Annual Report Download - page 91

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91
The following table presents a reconciliation of the fair value measurements using significant unobservable inputs (Level
3) as of December 31, 2012 (in thousands):
Total Limited Partnership
Interests Other
Balance, beginning of period $ 42,127 $ 40,016 $ 2,111
Actual return on plan assets:
Relating to assets still held at the reporting date (820)(930) 110
Purchases, sales and settlements (4,725)(3,132)(1,593)
Balance, end of period $ 36,582 $ 35,954 $ 628
The fair values of the Company’s postretirement healthcare plan assets, which did not contain any Level 3 assets, as of
December 31, 2012, were as follows (in thousands):
Balance as of
December 31, 2012
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Assets:
Cash and cash equivalents $ 5,522 $ — $ 5,522
Equity holdings:
U.S. companies 60,658 60,658 —
Foreign companies 13,625 13,625 —
Pooled equity funds 27,617 27,617 —
Total equity holdings 101,900 101,900 —
Fixed-income holdings:
U.S. Treasuries 5,370 5,370 —
Federal agencies 3,489 — 3,489
Corporate bonds 6,033 — 6,033
Foreign bonds 659 — 659
Municipal bonds 133 — 133
Total fixed-income holdings 15,684 5,370 10,314
Total postretirement healthcare plan assets $ 123,106 $ 107,270 $ 15,836
No plan assets are expected to be returned to the Company during the fiscal year ending December 31, 2014.
For 2014, the Company’s overall expected long-term rate of return is 7.75% for pension assets and 7.70% for
postretirement healthcare plan assets. 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:
2013 2012
Healthcare cost trend rate for next year 8.0% 7.5%
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 2021 2019