Harman Kardon 2007 Annual Report Download - page 22

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9
reinforcement market include Telex, Electro Voice, Mackie, QSC, Meyer Sound Laboratories,
Sennheiser, Peavey, Shure, Audio Technica, and Yamaha. Our Studer, AKG, Soundcraft, JBL
Professional and Lexicon branded products compete in the recording and broadcast markets. Principal
competitors in these markets include Yamaha, Sennheiser, Loud Technologies, Inc., Lawo, Harris
Corporation, DigiDesign/M-Audio, Genelec, KRK, TC Electronics, Stagetec and Sony. In the music
instrument market, competitors for our JBL Professional, DigiTech, dbx, Crown, Soundcraft and AKG
products include Yamaha, Peavey, QSC, Shure, Sennheiser, Line 6, Dunlop, Zoom, Audio Technica and
Roland. We also compete in the industrial and architectural sound market. Competitors within this market
include Siemens, Peavey and Tannoy.
We are subject to various Federal, state, local and international environmental laws and regulations,
including those governing the use, discharge and disposal of hazardous materials. We believe that our
facilities are in substantial compliance with current laws and regulations. The cost of compliance with
current environmental laws and regulations has not been, and is not expected to be, material.
Research and Development
Expenditures for research and development were $356.7 million, $302.0 million and $222.6 million for
the fiscal years ended June 30, 2007, 2006 and 2005, respectively.
Number of Employees
At June 30, 2007, we had 11,688 full-time employees, including 5,611 employees located in North
America and 6,077 located outside of North America.
Website Information
Our corporate website is located at www.harman.com. Through our website we make available, free of
charge, access to our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports
on Form 8-K filed or furnished by the company pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934. Our website also provides access to reports filed by our directors, executive
officers and certain significant stockholders pursuant to Section 16 of the Securities Exchange Act of
1934. In addition, our Corporate Governance Guidelines, Ethics Code and charters for three committees
of our Board of Directors are available on our website. The information on our website is not
incorporated by reference into this report. In addition, the Securities and Exchange Commission (“SEC”)
maintains a website, www.sec.gov, that contains reports, proxy and information statements and other
information that we file electronically with the SEC.
Item 1A. Risk Factors
In addition to the other information included in this report, you should carefully consider the risk factors
described below.