Harley Davidson 2014 Annual Report Download - page 84

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Unrecognized gains and losses related to plan obligations and assets are initially recorded in other comprehensive income
and result from actual experience that differs from assumed or expected results, and the impacts of changes in assumptions.
Unrecognized plan asset gains and losses not yet reflected in the market-related value of plan assets are not subject to
amortization. Remaining unrecognized gains and losses that exceed 10% of the greater of the projected benefit obligation or the
market-related value of plan assets are amortized to earnings over the estimated future service period of active plan
participants.€The impacts of plan amendments, if any, are amortized over the estimated future service period of plan
participants at the time of the amendment.
Amounts included in accumulated other comprehensive income, net of tax, at December€31, 2014 which have not yet
been recognized in net periodic benefit cost are as follows (in thousands):€
Pension€and
SERPA€Benefits
Postretirement
Healthcare€Benefits Total
Prior service cost (credit) $1,685 $(11,070) $ (9,385)
Net actuarial loss 488,080 51,108 539,188
Total $489,765 $40,038 $529,803
Amounts expected to be recognized in net periodic benefit cost, net of tax, during the year ended December€31, 2015 are
as follows (in thousands):€
Pension€and
SERPA€Benefits
Postretirement
Healthcare€Benefits Total
Prior service cost (credit) $274 $(2,025) $ (1,751)
Net actuarial loss 34,445 2,501 36,946
Total $34,719 $476 $35,195
Assumptions:
Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost at December€31 were
as follows:€
Pension and
SERPA Benefits
Postretirement
Healthcare Benefits
2014 2013 2012 2014 2013 2012
Assumptions for benefit obligations:
Discount rate 4.21%5.08%4.23%3.99%4.70%3.93%
Rate of compensation 4.00%4.00%4.00%n/a n/a n/a
Assumptions for net periodic benefit
cost:
Discount rate 5.08%4.23%5.30%4.70%3.93%4.90%
Expected return on plan assets 7.75%7.75%7.80%7.70%8.00%8.00%
Rate of compensation increase 4.00%4.00%3.49%n/a n/a n/a
Pension and SERPA Accumulated Benefit Obligation:
The Company’s pension and SERPA plans have a separately determined accumulated benefit obligation (ABO) and plan
asset value. The ABO is the actuarial present value of benefits based on service rendered and current and past compensation
levels. This differs from the projected benefit obligation (PBO) in that it includes no assumption about future compensation
levels. The total ABO for all the Company’s pension and SERPA plans combined was $1.92 billion and $1.60 billion as of
December€31, 2014 and 2013, respectively.
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