Harman Kardon 2009 Annual Report Download - page 105

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Harman International Industries, Incorporated and Subsidiaries
(Dollars in thousands, except per-share data and unless otherwise indicated)
The estimated amount that will be amortized from accumulated other comprehensive income into net
periodic benefit cost in fiscal 2010 is as follows:
Amounts expected to be recognized in net periodic benefit cost
Recognized net actuarial loss (gain) ......................................... $ 708
Amortization of prior service cost (credit) ..................................... 1,407
Total .................................................................. $2,115
Amounts for pension plans with accumulated benefit obligations in excess of fair value of plan assets as of
June 30, 2009 and 2008 are as follows:
Year Ended June 30,
2009 2008
Projected benefit obligation ................................... $128,890 $130,674
Accumulated benefit obligation ................................ 118,563 122,101
Presented below are the components of net periodic benefit costs for the years ended June 30, 2009, 2008
and 2007 were as follows:
Year Ended June 30,
2009 2008 2007
Components of net periodic benefit cost:
Service cost ................................................... $ 2,185 $ 2,529 $ 3,292
Interest cost ................................................... 7,449 7,153 6,010
Amortization of prior service cost .................................. 1,625 4,152 887
Amortization of net loss .......................................... (101) 1,349 2,147
Curtailment .................................................... 947 — —
Net periodic benefit cost ......................................... $12,105 $15,183 $12,336
Plan Assumptions
The following table presents the assumptions used to determine our benefit obligations and net periodic
pension and other postretirement benefit costs:
Year Ended June 30,
2009 2008 2007
Assumptions:
Weighted average rates used to determine benefit
obligations at June 30:
Range of discount rates for pension plans .......... 6.00% – 6.25% 5.50% – 6.73% 4.75% – 6.15%
Range of rates of compensation increase for pension
plans ..................................... 2.5% – 4.0% 2.0% – 4.0% 2.0% – 4.0%
Weighted average rates used to determine net periodic
benefit cost at June 30:
Range of discount rates for pension plans .......... 6.00% – 6.25% 5.50% – 6.73% 4.75% – 6.25%
Range of rates of compensation increase for pension
plans ..................................... 2.5% – 4.0% 2.0% – 4.0% 2.0% – 4.0%
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