Harman Kardon 2008 Annual Report Download - page 75

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57
The carrying value and fair value of long-term debt were $428.0 million and $350.9 million, respectively,
at June 30, 2008.
Note 10 - Warranty Liabilities
Details of the estimated warranty liability are as follows:
Years ended June 30,
($000s omitted) 2008 2007
Balance at beginning of year $ 48,148 60,768
Expense 131,677 49,148
Payments (cash or in-kind) (52,848) (61,768)
Balance at end of year $ 126,977 48,148
Note 11 - Income Taxes
The tax provisions and analysis of effective income tax rates are comprised of the following items:
Years ended June 30
,
($000s omitted) 2008 2007 2006
Provision for Federal income taxes before credits at
statutory rate $ 43,569 133,772 131,665
State income taxes 260 260 211
Difference between Federal statutory rate and
foreign effective rate (28,001) (1,305) (2,401)
Dividend repatriation --- --- 3,350
IRS settlement --- --- (1,081)
Permanent differences 4,722 (330) (524)
Tax benefit from export sales and U.S. production
activities (1,024) (1,338) (2,186)
Change in valuation allowance 497 --- 61
Change in other tax liabilities (1,497) (1,712) (2,611)
Difference between Federal and financial accounting
for incentive stock option grants 1,164 432 853
Federal income tax credits (2,750) (59,750) (5,168)
Other 179 157 (292)
Total $ 17,119 70,186 121,877
A fiscal 2008 reduction in German statutory tax rates is included in the line item Difference between
Federal statutory rate and foreign effective rate.