Harman Kardon 2009 Annual Report Download - page 103

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Harman International Industries, Incorporated and Subsidiaries
(Dollars in thousands, except per-share data and unless otherwise indicated)
percent of a participant’s eligible contribution. Upon approval of the Board of Directors, each business unit may
make a matching contribution of up to three percent (50 percent on the first six percent of an employee’s
tax-deferred contribution) and a profit sharing contribution. Matching and profit sharing contributions vest at a
rate of 25 percent for each year of service with the employer, beginning with the second year of service. Effective
January 1, 2009, we suspended the matching and safe harbor non-elective contributions for these plans. Expenses
related to the Retirement Savings Plan for the years ended June 30, 2008 and 2007 were $13.7 million and $15.1
million, respectively. For the fiscal year ended June 30, 2009 income of $1.8 million was recorded representing
the matching and safe harbor non-elective contributions for these plans through January 1, 2009 offset by the
fiscal year 2008 reversal of profit sharing accrual in September 2008, as the contribution was not approved by the
Board of Directors.
Pension benefits. We provide defined pension benefits to certain eligible employees. The measurement date
used for determining pension benefits is the last day of our fiscal year-end, June 30. We have certain business
units in Europe that maintain defined benefit pension plans for many of our current and former employees. The
coverage provided and the extent to which the retirees’ share in the cost of the program vary by business unit.
Generally, plan benefits are based on age, years of service, and average compensation during the final years of
service. In the United States, we have a SERP that provides retirement, death and termination benefits, as
defined, to certain key executives designated by the Board of Directors. Our expenses related to the SERP for the
years ended June 30, 2009, 2008 and 2007 were $6.2 million, $7.1 million and $6.7 million, respectively.
During fiscal 2010, we expect to contribute amounts to the defined benefit pension plans necessary to cover
required disbursements. The benefits that we expect to pay in each fiscal year from 2010 to 2014 are $7.7
million, $7.4 million, $7.8 million, $8.6 million and $8.9 million, respectively. The aggregate benefits we expect
to pay in the five fiscal years from 2015 to 2019 are $49.7 million.
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