Harman Kardon 2009 Annual Report Download - page 102

Download and view the complete annual report

Please find page 102 of the 2009 Harman Kardon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 125

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125

Harman International Industries, Incorporated and Subsidiaries
(Dollars in thousands, except per-share data and unless otherwise indicated)
fiscal year 2009 include the closure of the Woodbury, New York facility and numerous headcount reductions
across our business units to reduce excess capacity due to decreased sales. The most significant of these
programs were in Germany, Austria, the United Kingdom and various locations in the United States.
In fiscal year 2009, we recorded $90.1 million for our restructuring program, primarily within SG&A, of
which $74.9 million related to employee termination benefits. Cash paid for these initiatives was $46.6 million.
In addition, we have recorded $10.3 million of accelerated depreciation primarily in cost of sales in accordance
with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets.
Below is a rollforward of our restructuring accrual, accounted for in accordance with SFAS No. 88,
“Employers’ Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination
Benefits”, SFAS No. 112, “Employers’ Accounting for Postemployment Benefits” and SFAS No. 146,
“Accounting for Costs Associated with Exit or Disposal Activities:”
Year Ended June 30,
2009 2008 2007
Accrued liability, July 1, ................................. $35,601 $ 7,527 $ 8,533
Expense .............................................. 90,140 42,192 7,071
Utilization(1) ........................................... (48,287) (14,118) (8,077)
Accrued liability at June 30, ............................... $77,454 $ 35,601 $ 7,527
(1) Includes amounts representing adjustments to the liability for changes in foreign currency exchange rates.
Restructuring expenses by reporting segment are as follows:
Year Ended June 30,
2009 2008 2007
Automotive ............................................. $ 51,488 $22,214 $5,670
Consumer .............................................. 13,250 5,807 560
Professional ............................................ 16,369 8,884 841
Other .................................................. 9,033 5,287 —
Total expense ........................................... 90,140 42,192 7,071
Accelerated depreciation .................................. 10,305 4,033 —
Total .................................................. $100,445 $46,225 $7,071
Note 13 – Merger costs
On October 22, 2007, we announced the termination of our merger agreement with KKR and GSCP and
companies formed by investment funds affiliated with KKR and GSCP. During the year ended June 30, 2008, we
incurred $13.8 million of legal and advisory services expenses associated with the termination of the merger,
which is included in selling, general and administrative expenses in our Consolidated Statements of Operations.
Note 14 – Retirement Benefits
Plan Descriptions
Retirement savings plan. We provide a Retirement Savings Plan for certain employees in the United States.
Under the plan, employees may contribute up to 50 percent of their pretax compensation subject to certain
limitations. Each business unit will make a safe harbor non-elective contribution in an amount equal to three
81