Harman Kardon 2008 Annual Report Download - page 71

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53
Note 3 - Property, Plant and Equipment
Property, plant and equipment are composed of the following:
June 30,
($000s omitted) 2008 2007
Land $ 14,659 14,738
Buildings and improvements 311,336 269,968
Machinery and equipment 1,082,359 905,293
Furniture and fixtures 46,749 41,386
1,455,103 1,231,385
Less accumulated depreciation and amortization (815,061) (639,409)
Property, plant and equipment, net $ 640,042 591,976
Note 4 - Goodwill
Goodwill was $436.4 million at June 30, 2008 compared with $403.7 million at June 30, 2007. The
increase is primarily due to foreign currency translation and contingent purchase price consideration
associated with the acquisition of Innovative Systems GmbH. Our SFAS 142 annual impairment test
concluded that goodwill was not impaired as of the test date, April 30, 2008. In fiscal 2007, goodwill
increased $22.5 million also due to purchase price payments and foreign currency translation.
Note 5 - Short-Term Borrowings
At June 30, 2008, we had no outstanding short-term borrowings. We maintain unsecured lines of credit
totaling $16.7 million in Japan, China and the United Kingdom. We had $1.8 million of outstanding
short-term borrowings with a weighted average interest rate of 5.5 percent at June 30, 2007.
Note 6 - Long-Term Debt and Current Portion of Long Term-Debt
Long-term debt is comprised of the following:
June 30,
($
000s omitted
)
2008 2007
Convertible senior notes due 2012, interest due
semi-annually at 1.25% (note 7) $ 400,000 ---
Senior notes, unsecured, due July 1, 2007 interest due
semi-annually at 7.32% --- 16,486
Revolving credit facility 25,000 55,000
Obligations under capital leases (note 8) 2,085 2,251
Other unsubordinated variable rate loans due through 2016, bearing
interest at an average effective rate of 5.00% at June 30, 2008 867 953
Total 427,952 74,690
Less current installments (639) (17,029)
Long-term debt $ 427,313 57,661
Our long-term debt at June 30, 2008, consisted of $400 million convertible senior notes, $25.0 million in
borrowings under the revolving credit facility and $2.3 million of other obligations. Our current portion
of long-term debt consisted of $0.6 million of other obligations.