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Employee Benefit Plans and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Schedule of obligation and funded status
The changes in the benefit obligation, fair value of plan assets and the funded status of the Company’s pension and SERPA plans and the postretirement healthcare plans as of the Company’s measurement dates of December 31, were as follows (in thousands): 
 
Pension and SERPA Benefits
 
Postretirement Healthcare Benefits
 
2019
 
2018
 
2019
 
2018
Change in benefit obligation:
 
 
 
 
 
 
 
Benefit obligation, beginning of period
$
1,984,708

 
$
2,201,021

 
$
286,574

 
$
338,488

Service cost
25,408

 
32,340

 
4,449

 
7,180

Interest cost
85,483

 
82,778

 
11,753

 
11,556

Actuarial losses (gains)
236,719

 
(213,583
)
 
9,590

 
(42,039
)
Plan participant contributions
—

 
—

 
1,999

 
2,492

Plan amendments
8,371

 
(12,926
)
 
—

 
(4,710
)
Special early retirement benefits
1,583

 
—

 
—

 
—

Benefits paid
(126,079
)
 
(106,280
)
 
(20,860
)
 
(23,448
)
Net curtailments and settlements
(4,181
)
 
1,358

 
—

 
(2,945
)
Benefit obligation, end of period
2,212,012

 
1,984,708

 
293,505

 
286,574

 
 
 
 
 
 
 
 
Change in plan assets:
 
 
 
 
 
 
 
Fair value of plan assets, beginning of period
1,874,618

 
2,162,885

 
190,357

 
217,537

Return on plan assets
459,388

 
(185,468
)
 
41,717

 
(13,287
)
Plan participant contributions
—

 
—

 
1,999

 
2,492

Benefits paid
(124,784
)
 
(102,799
)
 
(13,081
)
 
(16,385
)
Fair value of plan assets, end of period
2,209,222

 
1,874,618

 
220,992

 
190,357

Funded status of the plan
$
(2,790
)
 
$
(110,090
)
 
$
(72,513
)
 
$
(96,217
)
 
 
 
 
 
 
 
 
Funded status as recognized on the Consolidated balance sheets:
 
 
 
 
 
 
 
Prepaid pension costs
$
56,014

 
$
—

 
$
—

 
$
—

Accrued liabilities
(2,666
)
 
(2,314
)
 
—

 
(1,764
)
Pension liabilities
(56,138
)
 
(107,776
)
 
—

 
—

Postretirement healthcare liabilities
—

 
—

 
(72,513
)
 
(94,453
)

$
(2,790
)
 
$
(110,090
)
 
$
(72,513
)
 
$
(96,217
)
 
 
 
 
 
 
 
 
Amounts included in Accumulated other comprehensive loss, net of tax:
 
 
 
 
 
 
 
Prior service credits
$
(6,489
)
 
$
(14,371
)
 
$
(7,559
)
 
$
(9,381
)
Actuarial losses (gains)
496,919

 
593,608

 
(1,321
)
 
12,005

 
$
490,430

 
$
579,237

 
$
(8,880
)
 
$
2,624
Schedule of amounts recognized in balance sheet
The changes in the benefit obligation, fair value of plan assets and the funded status of the Company’s pension and SERPA plans and the postretirement healthcare plans as of the Company’s measurement dates of December 31, were as follows (in thousands): 
 
Pension and SERPA Benefits
 
Postretirement Healthcare Benefits
 
2019
 
2018
 
2019
 
2018
Change in benefit obligation:
 
 
 
 
 
 
 
Benefit obligation, beginning of period
$
1,984,708

 
$
2,201,021

 
$
286,574

 
$
338,488

Service cost
25,408

 
32,340

 
4,449

 
7,180

Interest cost
85,483

 
82,778

 
11,753

 
11,556

Actuarial losses (gains)
236,719

 
(213,583
)
 
9,590

 
(42,039
)
Plan participant contributions
—

 
—

 
1,999

 
2,492

Plan amendments
8,371

 
(12,926
)
 
—

 
(4,710
)
Special early retirement benefits
1,583

 
—

 
—

 
—

Benefits paid
(126,079
)
 
(106,280
)
 
(20,860
)
 
(23,448
)
Net curtailments and settlements
(4,181
)
 
1,358

 
—

 
(2,945
)
Benefit obligation, end of period
2,212,012

 
1,984,708

 
293,505

 
286,574

 
 
 
 
 
 
 
 
Change in plan assets:
 
 
 
 
 
 
 
Fair value of plan assets, beginning of period
1,874,618

 
2,162,885

 
190,357

 
217,537

Return on plan assets
459,388

 
(185,468
)
 
41,717

 
(13,287
)
Plan participant contributions
—

 
—

 
1,999

 
2,492

Benefits paid
(124,784
)
 
(102,799
)
 
(13,081
)
 
(16,385
)
Fair value of plan assets, end of period
2,209,222

 
1,874,618

 
220,992

 
190,357

Funded status of the plan
$
(2,790
)
 
$
(110,090
)
 
$
(72,513
)
 
$
(96,217
)
 
 
 
 
 
 
 
 
Funded status as recognized on the Consolidated balance sheets:
 
 
 
 
 
 
 
Prepaid pension costs
$
56,014

 
$
—

 
$
—

 
$
—

Accrued liabilities
(2,666
)
 
(2,314
)
 
—

 
(1,764
)
Pension liabilities
(56,138
)
 
(107,776
)
 
—

 
—

Postretirement healthcare liabilities
—

 
—

 
(72,513
)
 
(94,453
)

$
(2,790
)
 
$
(110,090
)
 
$
(72,513
)
 
$
(96,217
)
 
 
 
 
 
 
 
 
Amounts included in Accumulated other comprehensive loss, net of tax:
 
 
 
 
 
 
 
Prior service credits
$
(6,489
)
 
$
(14,371
)
 
$
(7,559
)
 
$
(9,381
)
Actuarial losses (gains)
496,919

 
593,608

 
(1,321
)
 
12,005

 
$
490,430

 
$
579,237

 
$
(8,880
)
 
$
2,624
Schedule of PBO in excess of fair value of plan assets
The funded status of the qualified pension plan and the SERPA plans are combined above. Plans with projected benefit obligations (PBO) or accumulated benefit obligations (ABO) in excess of the fair value of plan assets at December 31, is presented below (in thousands):
 
2019
 
2018
Plans with PBO in excess of fair value of plan assets:
 
 
 
PBO
$
58,804

 
$
1,984,708

Fair value of plan assets
$
—

 
$
1,874,618

 
 
 
 
Plans with ABO in excess of fair value of plan assets:
 
 
 
ABO
$
44,232

 
$
40,085

Fair value of plan assets
$
—

 
$
—
Schedule of ABO in excess of fair value of plan assets
The funded status of the qualified pension plan and the SERPA plans are combined above. Plans with projected benefit obligations (PBO) or accumulated benefit obligations (ABO) in excess of the fair value of plan assets at December 31, is presented below (in thousands):
 
2019
 
2018
Plans with PBO in excess of fair value of plan assets:
 
 
 
PBO
$
58,804

 
$
1,984,708

Fair value of plan assets
$
—

 
$
1,874,618

 
 
 
 
Plans with ABO in excess of fair value of plan assets:
 
 
 
ABO
$
44,232

 
$
40,085

Fair value of plan assets
$
—

 
$
—
Components of net periodic benefit costs Components of net periodic benefit costs for the years ended December 31, include the following (in thousands): 
 
Pension and SERPA Benefits
 
Postretirement Healthcare Benefits
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Service cost
$
25,408

 
$
32,340

 
$
31,584

 
$
4,449

 
$
7,180

 
$
7,500

Interest cost
85,483

 
82,778

 
85,076

 
11,753

 
11,556

 
13,648

Expected return on plan assets
(142,323
)
 
(147,671
)
 
(141,385
)
 
(14,030
)
 
(14,161
)
 
(12,623
)
Amortization of unrecognized:
 
 
 
 
 
 
 
 
 
 
 
Prior service (credit) cost
(1,930
)
 
(420
)
 
1,018

 
(2,381
)
 
(1,842
)
 
(2,171
)
Net loss
44,511

 
64,773

 
43,993

 
277

 
1,817

 
3,261

Special early retirement benefits
1,583

 
—

 
—

 
—

 
—

 
—

Curtailment loss (gain)
—

 
1,017

 
—

 
(960
)
 
(886
)
 
—

Settlement loss
1,503

 
—

 
—

 
—

 
—

 
—

Net periodic benefit cost
$
14,235

 
$
32,817

 
$
20,286

 
$
(892
)
 
$
3,664

 
$
9,615
Schedule of assumptions used to determine net periodic benefit cost
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
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Assumptions for benefit obligations:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.49
%
 
4.38
%
 
3.71
%
 
3.26
%
 
4.23
%
 
3.52
%
Rate of compensation increase
3.39
%
 
3.38
%
 
3.43
%
 
n/a

 
n/a

 
n/a

Assumptions for net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.38
%
 
3.71
%
 
4.30
%
 
4.23
%
 
3.52
%
 
4.03
%
Expected return on plan assets
7.10
%
 
7.25
%
 
7.25
%
 
7.25
%
 
7.25
%
 
7.25
%
Rate of compensation increase
3.38
%
 
3.43
%
 
3.50
%
 
n/a

 
n/a

 
n/a
Schedule of allocation of plan assets
The fair values of the Company’s postretirement healthcare plan assets at December 31, 2018 were as follows (in thousands): 
 
Balance
 
Level 1
 
Level 2
Cash and cash equivalents
$
5,276

 
$
—

 
$
5,276

Equity holdings:
 
 
 
 
 
U.S. companies
86,975

 
86,949

 
26

Foreign companies
16,342

 
16,342

 
—

Pooled equity funds
20,747

 
20,747

 
—

Other
9

 
9

 
—

 
124,073

 
124,047

 
26

Fixed-income holdings:
 
 
 
 
 
U.S. Treasuries
8,707

 
8,707

 
—

Federal agencies
5,445

 
—

 
5,445

Corporate bonds
6,590

 
—

 
6,590

Pooled fixed income funds
33,959

 
33,959

 
—

Foreign bonds
538

 
—

 
538

Municipal bonds
272

 
—

 
272

 
55,511

 
42,666

 
12,845

Plan assets subject to fair value leveling
184,860

 
$
166,713

 
$
18,147

 
 
 
 
 
 
Plan assets measured at net asset value:
 
 
 
 
 
Real estate investment trust
5,497

 
 
 
 
 
$
190,357

 
 
 
 

The fair values of the Company’s postretirement healthcare plan assets at December 31, 2019 were as follows (in thousands): 
 
Balance
 
Level 1
 
Level 2
Cash and cash equivalents
$
2,458

 
$
—

 
$
2,458

Equity holdings:
 
 
 
 
 
U.S. companies
104,399

 
104,399

 
—

Foreign companies
22,422

 
21,744

 
678

Pooled equity funds
25,029

 
25,029

 
—

Other
7

 
7

 
—

 
151,857

 
151,179

 
678

Fixed-income holdings:
 
 
 
 
 
U.S. Treasuries
5,782

 
5,782

 
—

Federal agencies
7,986

 
—

 
7,986

Corporate bonds
8,425

 
—

 
8,425

Pooled fixed income funds
36,720

 
36,720

 
—

Foreign bonds
672

 
—

 
672

Municipal bonds
454

 
—

 
454

 
60,039

 
42,502

 
17,537

Plan assets subject to fair value leveling
214,354

 
$
193,681

 
$
20,673

 
 
 
 
 
 
Plan assets measured at net asset value:
 
 
 
 
 
Real estate investment trusts
6,638

 
 
 
 
 
$
220,992

 
 
 
 


The fair values of the Company’s pension plan assets at December 31, 2018 were as follows (in thousands): 
 
Balance
 
Level 1
 
Level 2
Cash and cash equivalents
$
40,984

 
$
—

 
$
40,984

Equity holdings:
 
 
 
 
 
U.S. companies
636,308

 
621,459

 
14,849

Foreign companies
66,143

 
66,143

 
—

Harley-Davidson common stock
43,455

 
43,455

 
—

Pooled equity funds
330,476

 
330,476

 
—

Other
85

 
85

 
—

 
1,076,467

 
1,061,618

 
14,849

Fixed-income holdings:
 
 
 
 
 
U.S. Treasuries
45,102

 
45,102

 
—

Federal agencies
27,811

 
—

 
27,811

Corporate bonds
434,070

 
—

 
434,070

Pooled fixed income funds
140,630

 
42,400

 
98,230

Foreign bonds
83,852

 
266

 
83,586

Municipal bonds
9,276

 
—

 
9,276

 
740,741

 
87,768

 
652,973

Plan assets subject to fair value leveling
1,858,192

 
$
1,149,386

 
$
708,806

 
 
 
 
 
 
Plan assets measured at net asset value:
 
 
 
 
 
Limited partnership interests
5,918

 
 
 
 
Real estate investment trust
10,508

 
 
 
 
 
16,426

 
 
 
 
 
$
1,874,618

 
 
 
 

The fair values of the Company’s pension plan assets at December 31, 2019 were as follows (in thousands): 
 
Balance
 
Level 1
 
Level 2
Cash and cash equivalents
$
35,463

 
$
—

 
$
35,463

Equity holdings:
 
 
 
 
 
U.S. companies
728,892

 
707,276

 
21,616

Foreign companies
79,707

 
77,275

 
2,432

Harley-Davidson common stock
47,365

 
47,365

 
—

Pooled equity funds
377,301

 
377,301

 
—

Other
72

 
72

 
—

 
1,233,337

 
1,209,289

 
24,048

Fixed-income holdings:
 
 
 
 
 
U.S. Treasuries
67,234

 
67,234

 
—

Federal agencies
15,434

 
—

 
15,434

Corporate bonds
583,475

 
—

 
583,475

Pooled fixed income funds
142,134

 
48,674

 
93,460

Foreign bonds
103,439

 
—

 
103,439

Municipal bonds
12,339

 
—

 
12,339

 
924,055

 
115,908

 
808,147

Plan assets subject to fair value leveling
2,192,855

 
$
1,325,197

 
$
867,658

 
 
 
 
 
 
Plan assets measured at net asset value:
 
 
 
 
 
Limited partnership interests
4,118

 
 
 
 
Real estate investment trusts
12,249

 
 
 
 
 
16,367

 
 
 
 
 
$
2,209,222

 
 
 
 
Schedule of weighted average health care cost trend rate
The weighted-average healthcare cost trend rates used in determining the accumulated postretirement benefit obligation of the healthcare plans were as follows: 
 
2019
 
2018
Healthcare cost trend rate for next year
7.25
%
 
6.75
%
Rate to which the cost trend rate is assumed to decline (the ultimate rate)
5.00
%
 
5.00
%
Year that the rate reaches the ultimate trend rate
2029

 
2026
Schedule of expected benefit payments for next five years and thereafter
The Company's future expected benefit payments as of December 31, 2019 were as follows (in thousands): 
 
Pension Benefits
 
SERPA Benefits
 
Postretirement Healthcare Benefits
2020
$
97,227

 
$
2,666

 
$
23,328

2021
$
98,376

 
$
3,000

 
$
23,501

2022
$
101,566

 
$
3,309

 
$
23,625

2023
$
104,864

 
$
4,176

 
$
23,307

2024
$
108,436

 
$
4,401

 
$
22,902

2025-2028
$
590,687

 
$
29,048

 
$
109,195