Harman Kardon 2009 Annual Report Download - page 85

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Harman International Industries, Incorporated and Subsidiaries
(Dollars in thousands, except per-share data and unless otherwise indicated)
Long-Term Debt and Current Portion of Long-Term-Debt
At June 30, 2009 and 2008, long-term debt consisted of the following:
June 30,
2009 2008
Convertible senior notes due 2012, interest due semi-annually at 1.25% .... $400,000 $400,000
Revolving credit facility .......................................... 227,319 25,000
Obligations under capital leases .................................... 1,365 2,085
Other unsubordinated variable rate loans due through 2016, bearing interest
at an average effective rate of 5.0 percent at June 30, 2009 ............. 775 867
Total long-term debt ............................................. 629,459 427,952
Less: current portion of long-term debt .............................. (605) (639)
Total long-term debt ............................................. $628,854 $427,313
Weighted average borrowings were $521.0 million and $401.0 million and $170.2 million for fiscal years
ended June 30, 2009, 2008 and 2007, respectively. The weighted average interest rate was 2.6 percent, 3.5
percent and 5.6 percent for the fiscal years ended June 30, 2009, 2008 and 2007, respectively. Our average
interest rates fluctuate primarily due to changes in the U.S. Dollar denominated short-term London Interbank
Offered Rate (“LIBOR”) base rates. The majority of our interest expense is associated with the Notes.
Interest expense is reported net of interest income in our Consolidated Statements of Operations. Gross
interest expense was $15.3 million, $17.8 million and $9.6 million for the fiscal years ended June 30, 2009, 2008
and 2007 respectively. Interest income was $8.4 million, $9.2 million and $8.1 million for the fiscal years ended
June 30, 2009, 2008 and 2007, respectively.
Cash paid for interest, net of cash interest received, was $2.3 million, $6.3 million, and $2.5 million in the
fiscal years ended June 30, 2009, 2008 and 2007, respectively.
At June 30, 2009, long-term debt, including obligations under capital leases, maturing in each of the next
five fiscal years and thereafter is as follows:
2010 ............................................................ $ 605
2011 ............................................................ 524
2012 ............................................................ 227,851
2013 ............................................................ 400,110
2014 ............................................................ 115
Thereafter ........................................................ 254
Total ............................................................ $629,459
Borrowings Under Revolving Credit Facility
On March 31, 2009 we and one of our wholly-owned subsidiaries, Harman Holding GmbH & Co. KG
(collectively the “Borrowers”) entered into the Second Amended and Restated Multi-Currency, Multi-Option
Credit Agreement (the “Amended Credit Agreement”), amending and restating the Amended and Restated Multi-
Currency, Multi-Option Credit Agreement dated June 22, 2006. The Amended Credit Agreement, among other
things, extended the maturity date from June 28, 2010 to December 31, 2011 and reduced the maximum amount
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