Harman Kardon 2007 Annual Report Download - page 47

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34
Agreement remains at $300 million. The Restated Agreement also amends our conditional option to
increase the maximum aggregate revolving commitment amount from $350 million to $550 million. At
June 30, 2007, we had $55.0 million of borrowings under this credit facility and outstanding letters of
credit of $5.6 million. Unused availability under the revolving credit facility was $239.4 million at June
30, 2007. We expect this credit facility will be repaid in full and terminated in connection with the
financing associated with the completion of our proposed merger with Parent.
Our long-term debt agreements contain financial and other covenants that, among other things, limit our
ability to incur additional indebtedness, restrict subsidiary dividends and distributions, limit our ability to
encumber certain assets and restrict our ability to issue capital stock of our subsidiaries. Our long-term
debt agreements permit us to pay dividends or repurchase our capital stock without any dollar limitation
provided that we would be in compliance with the financial covenants in our revolving credit facility after
giving effect to such dividend or repurchase. We were in compliance with the terms of our long-term debt
agreements at June 30, 2007, 2006 and 2005.
Contractual Obligations
We have obligations and commitments to make future payments under debt agreements and operating
leases. The following table details our financing obligations by due date:
Fiscal Year Ending June 30,
($000s) 2008
2009 2010 2011
2012
Thereafter
Total
Short-term
borrowings (a) $ 1,838 ---
---
---
---
---
$ 1,838
Senior notes (b) 16,486 ---
---
---
---
---
16,486
Capital leases (c) 459
477 495 408
412
---
2,251
Other long-term
obligations (b) 84
90 55,095 100
105
479
55,953
Firm commitments
for capital
expenditures 37,643 ---
---
---
---
---
37,643
Purchase
obligations (c) 196,554 533 24 ---
---
860
197,971
Non-cancelable
operating
leases (d) 43,517 40,913 38,511 23,879 19,198 22,698 188,716
Total contractual
cash obligations $296,581 42,013 94,125 24,387 19,715 24,037 $500,858
(a) See note 5 to our consolidated financial statements.
(b) See note 6 to our consolidated financial statements.
(c) Includes amounts committed under enforceable agreements for purchase of goods and services with
defined terms as to quantity, price and timing of delivery.
(d) See note 7 to our consolidated financial statements.
Business Outlook
Automotive has received significant awards to develop infotainment systems for customers including
BMW, Audi, PSA Peugeot Citroën and Chrysler. We anticipate that our infotainment systems will
become increasingly scalable across a full range of luxury, mid-range and entry-level vehicles. In the