Harman Kardon 2007 Annual Report Download - page 46

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50.0 days, the same as the prior year. Accrued liabilities decreased primarily due to the reclassification of
certain pension liabilities from accrued liabilities to other non-current liabilities upon our adoption of
SFAS No. 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans,
which is discussed further in Note 12, Retirement Benefits.
Investing Activities
Net cash used in investing activities was $180.0 million in fiscal 2007, compared to $146.7 million in
fiscal 2006. This activity primarily reflects investments in our manufacturing facilities. Capital
expenditures were $174.8 million in fiscal 2007 and $130.5 million in fiscal 2006. A substantial portion
of these expenditures were made to complete our new manufacturing facility in Washington, Missouri.
The facility was substantially complete at the end of fiscal 2006. In fiscal 2007, we invested in the
necessary equipment and tooling to begin production of infotainment systems in the facility. We also
made capital expenditures for a new manufacturing facility in China during this past year. In Europe, we
invested in customer tooling and other manufacturing equipment to support infotainment system
programs for automotive customers. Capital expenditures were also used for new product tooling for
consumer and professional products.
Financing Activities
Net cash flows used in financing activities were $222.7 million in fiscal 2007 compared to $260.1 million
used in fiscal 2006. During this past year, we paid $128.8 million to repurchase 1.5 million shares of our
common stock and we made net payments of $107.6 million on our revolving credit facility. Since the
inception of our share repurchase program in June 1998, we have acquired and placed in treasury 18.2
million shares at a cost of $639.6 million through June 30, 2007. Our share repurchase program has been
suspended due to our proposed merger with Parent.
Our total debt was $76.5 million at June 30, 2007 primarily comprised of borrowings of $55.0 million
under our revolving credit facility and $16.5 million in outstanding principal amount of senior notes. The
senior notes had a stated interest rate of 7.32 percent and were due on July 1, 2007. These notes were
paid in upon maturity. We also had capital leases and other long-term borrowings of $3.2 million at June
30, 2007. Short-term borrowings included in debt were $1.8 million.
At June 30, 2006, our total debt was $197.6 million primarily comprised of $159.9 million of borrowings
under our revolving credit facility. Also included in total debt was $13.2 million principal amount of
7.125 percent senior notes due February 15, 2007 and $16.5 million principal amount of 7.32 percent
senior notes due July 1, 2007. We also had capital leases and other long-term borrowings of $6.2 million
at June 30, 2007. Short-term borrowings included in debt are $1.8 million at June 30, 2007.
On June 28, 2005, we entered into a $300 million multi-currency revolving credit facility with a group of
banks, which under certain circumstances could have been increased to $350 million. This facility expires
in June 2010 and replaces the $150 million revolving credit facility that expired on August 14, 2005. On
June 22, 2006, we amended and restated our multi-currency revolving credit facility. The Restated Credit
Agreement, among other things, added Harman Holding GmbH & Co. KG (“Harman Holding”), a limited
partnership organized under the laws of Germany and wholly-owned subsidiary of the company, as an
additional borrower. The maximum principal amount of borrowings permitted under the Restated