Harman Kardon 2008 Annual Report Download - page 88

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70
Note 17 - Business Segment Data
We design, manufacture and market high-quality, high fidelity audio products and electronic systems for
the automotive, consumer and professional markets. We organize our businesses into reporting segments
by the end-user markets served. Our chief operating decision maker evaluates performance and allocates
resources based on net sales, operating income and working capital in each of the reporting segments.
We report on the basis of three segments: Automotive, Consumer and Professional.
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 and systems are marketed worldwide under brand names including JBL,
Infinity, Harman/Kardon, Becker, Logic 7 and Mark Levinson. Our premium branded audio, video,
navigation and infotainment systems are offered to automobile manufacturers through engineering and
supply arrangements.
Daimler and Audi/VW are significant Automotive segment customers. Net sales to Daimler accounted
for approximately 18 percent, 23 percent, and 23 percent of consolidated net sales for the years ended
June 30, 2008, 2007 and 2006, respectively. Net sales to Audi/VW accounted for approximately 11
percent, 10 percent and 9 percent of consolidated net sales for the years ended June 30, 2008, 2007 and
2006, respectively. Accounts receivable due from Daimler accounted for 8 percent and 15 percent of total
consolidated accounts receivable at June 30, 2008 and 2007, respectively. Accounts receivable due from
Audi/VW accounted for approximately 11 percent and 4 percent of total consolidated accounts receivable
at June 30, 2008 and 2007, respectively.
Our Consumer segment designs, manufactures and markets audio and electronic systems for home,
computer 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 products are offered through audio specialty and retail chain stores.
Our branded audio products for computer and multimedia applications are focused on retail customers
with products designed to enhance sound for computers, Apple’s iPod and other music control players.
Our Professional segment designs, manufactures and markets loudspeakers and electronic systems used
by audio professionals in concert halls, stadiums, airports and other buildings and for recording,
broadcast, cinema and music reproduction applications. Our Professional products are marketed
worldwide under brand names including JBL Professional, AKG, Crown, Soundcraft, Lexicon, DigiTech,
dbx and Studer. We provide high-quality products to the sound reinforcement, music instrument support
and broadcast and recording segments of the professional audio market. We offer complete systems
solutions for professional installations and users around the world.
Our Other segment primarily includes compensation, benefit and occupancy costs for corporate
employees.