Harman Kardon 2007 Annual Report Download - page 76

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63
Presented below are the components of net periodic benefit costs:
Years ending June 30,
($000s omitted) 2007
2006
2005
Components of net periodic benefit cost:
Service cost $
3,292 2,679
2,683
Interest cost
6,010 4,354
4,403
Amortization of prior service cost
887 728
17
Amortization of net loss
2,147 2,003
1,884
Net periodic benefit cost $
12,336 9,764
8,987
Adoption of SFAS No. 158
Effective June 30, 2007, we adopted SFAS No. 158, which requires that the consolidated balance sheets
reflect the funded status of the pension plans. The funded status of the plans is measured as the difference
between the plan assets at fair value and the projected benefit obligation. We have recognized the
aggregate of all underfunded plans in either accrued liabilities or other non-current liabilities. The portion
of the amount by which the actuarial present value of benefits included in the projected benefit obligation
exceeds the fair value of plan assets, payable in the next 12 months, is reflected in accrued liabilities.
At June 30, 2007, previously unrecognized differences between actual amounts and estimates based on
actuarial assumptions are included in accumulated other comprehensive loss in our consolidated balance
sheets as required by SFAS No. 158. In future reporting periods, the difference between actual amounts
and estimates based on actuarial assumptions will be recognized in other comprehensive income or loss in
the period in which they occur.
The following table shows the incremental effect of applying SFAS No. 158 on individual line items in
the consolidated balance sheet at June 30, 2007:
($000s omitted)
Before
application
of SFAS
No. 158
Adjustments
After
application
of SFAS
No. 158
Incremental impact of applying SFAS No. 158
Other assets $ 15,432
(3,777)
11,655
Total assets 15,432
(3,777)
11,655
Accrued liabilities 101,589
(92,360)
9,229
Other non-current liabilities 14,993
95,836
110,829
Total liabilities 116,582
3,476
120,058
Accumulated other comprehensive income (loss) (8,525)
(7,253)
(15,778)
Total shareholders’ equity (8,525)
(7,253)
(15,778)