Harman Kardon 2008 Annual Report Download - page 84

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66
Note 16 - Retirement Benefits
Plan Descriptions
Retirement savings plan. We provide a Retirement Savings Plan for certain employees in the United
States. Under the plan, employees may contribute up to 50 percent of their pretax compensation subject to
certain limitations. Each business unit will make a safe harbor non-elective contribution in an amount
equal to three percent of a participant’s eligible contribution. Upon approval of the Board of Directors,
each business unit may make a matching contribution of up to three percent (50 percent on the first six
percent of an employee’s tax-deferred contribution) and a profit sharing contribution. Matching and profit
sharing contributions vest at a rate of 25 percent for each year of service with the employer, beginning
with the second year of service. Expenses related to the Retirement Savings Plan for the years ended June
30, 2008, 2007 and 2006 were $13.7 million, $15.1 million and $13.3 million, respectively.
Pension benefits. We provide defined pension benefits to certain eligible employees. The measurement
date used for determining pension benefits is the last day of our fiscal year-end, June 30. We have certain
business units in Europe that maintain defined benefit pension plans for many of our current and former
employees. The coverage provided and the extent to which the retirees’ share in the cost of the program
vary by business unit. Generally, plan benefits are based on age, years of service, and average
compensation during the final years of service. In the United States, we have a Supplemental Executive
Retirement Plan (“SERP”) that provides retirement, death and termination benefits, as defined, to certain
key executives designated by the Board of Directors. Our expenses related to the SERP for the years
ended June 30, 2008, 2007 and 2006 were $7.1 million, $6.7 million and $6.5 million, respectively.
During fiscal 2009, we expect to contribute amounts to the defined benefit pension plans necessary to
cover required disbursements. The benefits that we expect to pay in each fiscal year from 2009 to 2013
are $9.2 million, $7.5 million, $7.7 million, $8.3 million and $9.3 million, respectively. The aggregate
benefits we expect to pay in the five fiscal years from 2014 to 2018 are $50.0 million.