EXPERIENCEBUSINESS - Harley-Davidson

HARLEY- DAVIDSON, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
8. EMPLOYEE BENEFIT PLANS AND OTHER
POSTRETIREMENT BENEFITS (CONTINUED)
The fair value of pension plan assets was $331,160 at
December 31, 2000. The variation in the fair value of pension
plan assets from September 30, 2000, to December 31, 2000,
is primarily the result of changes in the market value of the
underlying investments.
Amounts applicable to the Company’s pension and
SERP plan(s) with accumulated benefit obligations in excess
of plan assets:
(In thousands)
2000 1998
Projected benefit obligation $148,923 $21,266
Accumulated benefit obligation $133,287 $15,166
Fair value of plan assets $104,177 $ 112
Pension and
Postretirement Health
(In thousands) SERP Benefits Care Benefits
2000 1999 1998 2000 1999 1998
Components of net periodic benefit cost:
Service cost $15,554 $12,215 $ 9,954 $3,480 $2,921 $2,438
Interest cost 23,054 19,763 17,449 5,516 4,774 4,261
Expected return on plan assets (25,102) (19,457) (16,864) — — —
Amortization of unrecognized:
Net transition asset (131) (336) (349) — — —
Prior service cost 2,668 2,668 2,664 (238) (238) (238)
Net (gain) loss 1,862 4,563 421 (94) (362) (624)
Net periodic benefit cost $17,905 $19,416 $13,275 $8,664 $7,095 $5,837
Weighted-average assumptions as of September 30:
Discount rate 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%
Expected return on plan assets 10.5% 10.3% 10.3% n/a n/a n/a
Rate of compensation increase 5.0% 5.0% 5.0% n/a n/a n/a
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