Harman Kardon 2008 Annual Report Download - page 23

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5
Manufacturing
We believe that our manufacturing capabilities are essential to maintaining and improving product quality
and performance. Our manufacturing facilities are located in North America, Europe and Asia.
Our Automotive manufacturing facilities in Europe are located in Germany, the United Kingdom,
Sweden, France and Hungary. Our European facilities are primarily used to manufacture infotainment
systems and automotive navigation and audio systems. In North America, we manufacture loudspeakers
in Kentucky and Mexico and manufacture electronics in California, Kentucky and Missouri. In addition,
we are ramping up a new facility in Suzhou, China where we began production of amplifiers and
loudspeakers in June 2008.
Our Consumer manufacturing facilities are located in California, Mexico and China. Our loudspeaker
manufacturing capabilities include the production of high-gloss lacquer and wooden veneer loudspeaker
enclosures, wire milling, voice coil winding and the use of computer controlled lathes and other machine
tools to produce precision components.
In North America, our principal Professional manufacturing facilities for loudspeakers are located in
California and Mexico, and for electronic products, including amplifiers and effects devices, are located in
Utah and Indiana. European Professional electronics manufacturing includes mixing consoles in the United
Kingdom and Switzerland, and microphones and headphones in Austria.
Our facilities have been designed to emphasize worker safety and compliance with environmental and safety
regulations.
Suppliers
We use externally sourced microchips in many of our products. A significant disruption in our microchip
supply chain and an inability to obtain alternative sources would have a material impact on our
consolidated results of operations.
Several independent suppliers manufacture Consumer and Professional loudspeakers and electronic
products and personal navigation devices. We do not believe the loss of any one of these suppliers would
have a material impact on our consolidated results of operations or consolidated financial position.
Trademarks and Patents
We market our products under numerous brand names that are protected by both pending and registered
trademarks around the world. Our brands include JBL, Infinity, Harman/Kardon, Lexicon, Mark
Levinson, Revel, Crown, Becker, Soundcraft, Spirit, DigiTech, AKG, Studer, BSS and dbx. Our
trademark registrations cover use of trademark rights in connection with various products, such as
loudspeakers, speaker systems, speaker system components and other electrical and electronic devices.
We have registered or taken other protective measures for many of these trademarks in substantially all
major industrialized countries.