Harman Kardon 2008 Annual Report Download - page 19

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1
Part I
Item 1. Business
We believe we are a worldwide leader in the development, manufacture and marketing of high-quality,
high fidelity audio products and electronic systems. We have developed, both internally and through a
series of strategic acquisitions, a broad range of product offerings sold under renowned brand names in
our principal markets. We also believe that we are a leader in digitally integrated infotainment systems for
the automotive industry. Our JBL, Infinity, Harman/Kardon, Mark Levinson and Becker brand names are
well known worldwide for premium quality and performance. We have built these brands by developing
our engineering, manufacturing and marketing competences and have employed these resources to
establish our Company as a worldwide leader in the markets we serve.
We report our business on the basis of three segments: Automotive, Consumer and Professional. For
additional information about these segments, see “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” included in Item 7 of Part II of this report and Note 17, Business
Segment Data, to our consolidated financial statements located in Item 8 of Part II of this report.
Our Automotive segment designs, manufactures and markets audio, electronic and infotainment systems
for vehicle applications primarily to be installed as original equipment by automotive manufacturers. Our
automotive products are marketed worldwide under brand names including JBL, Infinity, Mark Levinson,
Harman/Kardon, Logic 7, Lexicon and Becker. Through engineering and supply arrangements, our
premium audio systems and infotainment product offerings are sold to a number of global automotive
manufacturers including Daimler, the BMW Group, Toyota/Lexus, Audi/VW, Chrysler, Porsche, Land
Rover, Hyundai, and PSA Peugeot Citroën. We also produce a Harman/Kardon branded infotainment
system for Harley-Davidson touring motorcycles. Our infotainment systems are a combination of
information and entertainment components that may include or control GPS navigation, traffic
information, voice-activated telephone and climate control, rear seat entertainment, wireless Internet
access, hard disk recording, MP3 playback and a high-end branded audio system. Our Automotive
segment also produces personal navigation devices (“PNDs”) that are primarily sold in Europe.
Our Consumer segment designs, manufactures and markets audio and electronic systems for home,
mobile and multimedia applications. Our Consumer home products and systems are marketed worldwide
under brand names including JBL, Infinity, Harman/Kardon, Lexicon, Mark Levinson, Revel and AKG.
Our audio and electronic systems are recognized throughout the world for superior sound quality and high
performance. Our home product applications include systems to provide high-quality audio throughout
the home and our mobile products include an array of aftermarket systems to deliver audio entertainment
and navigation in the vehicle. Our home and mobile audio and electronic products are offered primarily
through audio/video specialty stores and retail chain stores such as Best Buy, MediaMarkt and Fnac. Our
branded audio products for multimedia applications are primarily designed to enhance sound for Apple’s
iPods and iPhones, computers and other MP3 players and are sold in retail stores such as the Apple stores,
Best Buy, Target and MediaMarkt.
Our Professional segment designs, manufactures and markets loudspeakers and electronic systems used
by audio professionals in concert halls, stadiums, airports, houses of worship and other public spaces. We
also design products for recording, broadcast, cinema and music reproduction applications, and we