Harman Kardon 2007 Annual Report Download - page 12

The page numbers in this Table of Contents reflect actual page numbers, not EDGAR page tag numbers.
References to “ Harman International, ” “ Harman, ” the “company, ” “ we, ” “us ” and “our ” in this Form 10 - K refer to Harman
International Industries, Incorporated and its subsidiaries unless the context requires otherwise.
Forward–Looking Statements
This report contains forward
- looking statements within the meaning of Section 27A of the Securities Act of 1933 and 21E of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”). You should not place undue reliance on these statements.
Forward
- looking statements include information concerning possible or assumed future results of operations, capital
expenditures, the outcome of pending legal proceedings and claims, including environmental matters, goals and objectives for
future operations, including descriptions of our business strategies and purchase commitments from customers. These statements
are typically identified by words such as “
believe, ” “anticipate,” “ expect, ” “plan,” “intend,” “ estimate ” and similar
expressions. We base these statements on particular assumptions that we have made in light of our industry experience, as well
as our perception of historical trends, current conditions, expected future developments and other factors that we believe are
appropriate under the circumstances. As you read and consider the information in this report, you should understand that these
statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions. In light of these risks
and uncertainties, there can be no assurance that the results and events contemplated by the forward
- looking statements
contained in, or incorporated by reference into, this report will in fact transpire.
You should carefully consider the risks described below and the other information in this report. Our operating results may
fluctuate significantly and may not meet our expectations or those of securities analysts or investors. The price of our stock
would likely decline if this occurs. In addition, the proposed acquisition of our company by KHI Parent Inc. (“Parent”), a
company formed by investment funds affiliated with Kohlberg, Kravis Roberts & Co. L.P. (“KKR”) and GS Capital Partners
VI Fund, L.P. and its related funds, which are sponsored by Goldman, Sachs & Co. (“GSCP”), as reported on our current
report on Form 8
- K filed with the Securities and Exchange Commission on April 26, 2007, may cause the price of our stock to
fluctuate significantly.
INDEX
Page
Forward– Looking Statements
i
Part I
Item
1.
Business
1
Item
1A.
Risk Factors
9
Item
1B.
Unresolved Staff Comments
15
Item
2.
Properties
16
Item
3.
Legal Proceedings
17
Item
4.
Submission of Matters to a Vote of Security Holders
18
Executive Officers of the Registrant
18
Part II
Item
5.
Market for Registrant ’ s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities
19
Item
6.
Selected Financial Data
20
Item
7.
Management ’ s Discussion and Analysis of Financial Condition and Results of Operations
21
Item
7A.
Quantitative and Qualitative Disclosures About Market Risk
35
Item
8.
Financial Statements and Supplementary Data
37
Item
9.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
72
Item
9A.
Controls and Procedures
72
Item
9B.
Other Information
72
Part III
Item
10.
Directors, Executive Officers and Corporate Governance
72
Item
11.
Executive Compensation
74
Item
12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
74
Item
13.
Certain Relationships and Related Transactions, and Director Independence
74
Item
14.
Principal Accounting Fees and Services
74
Part IV
Item
15.
Exhibits and Financial Statement Schedules
75
Signatures
79
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