Harman Kardon 2010 Annual Report Download - page 106

Harman International Industries, Incorporated and Subsidiaries
(Dollars in thousands, except per-share data and unless otherwise indicated)
Accrued income taxes payable was $3.9 million and $21.5 million at June 30, 2010 and 2009, respectively.
A net deferred tax asset of $21.9 million and $247.6 million was recorded in other current assets and
deferred taxes, long-term, respectively, in our Consolidated Balance Sheet at June 30, 2010. A net tax deferred
liability of $4.7 million was recorded in other non-current liabilities in our Consolidated Balance Sheet at
June 30, 2010. A net deferred tax asset of $32.2 million and $275.1 million was recorded in other current assets
and deferred taxes, long-term, respectively, in our Consolidated Balance Sheet at June 30, 2009.
We generated pre-tax income (loss) from continuing operations from our domestic operations of $11.8
million, $(253.7) million and $(28.5) million during the fiscal years ended June 30, 2010, 2009 and 2008,
respectively.
We generated (loss)/income from foreign operations before income taxes of $37.3 million, $(274.9) million,
and $137.7 million from our international operations during the fiscal years ended June 30, 2010, 2009 and 2008,
respectively.
Note 14 – Shareholders’ Equity and Share-Based Compensation
Preferred Stock
As of June 30, 2010 and 2009, we had no shares of preferred stock outstanding. We are authorized to issue
5 million shares of preferred stock, $0.01 par value.
Common Stock
We have 200 million authorized shares of common stock, $0.01 par value. At June 30, 2010 and 2009, we
had 95,129,836 and 94,929,595 shares issued; 25,599,817 and 25,599,817 shares in treasury stock and
69,530,019 and 69,329,778 shares outstanding (net of treasury stock), respectively.
Issuance of Common Stock
On June 23, 2009, we completed a public offering of 10,667,000 shares of our common stock at the offering
price of $18.75 per share, less a 4.75 percent underwriting discount, and received cash proceeds of $189.8
million, net of expenses of $0.7 million. Approximately $0.1 million was recorded as an increase in our common
stock and $189.7 million was recorded as an increase in additional paid-in capital in our Consolidated Balance
Sheet at June 30, 2009.
Accelerated Share Repurchase
On October 30, 2007, we used the proceeds from the issuance and sale of the Convertible Senior Notes to
repurchase and retire 4,775,549 shares of our common stock for a total purchase price of approximately $400
million from two financial institutions, under two separate accelerated share repurchase (“ASR”)
agreements. These shares represented approximately seven percent of the then-outstanding shares of our common
stock.
Each ASR was accounted for as a purchase of shares and a separate net-settled forward contract indexed to
our stock. The forward contract was settled based on the difference between the volume weighted average price
of our common stock over the financial institutions’ open market purchase period and the valuation at the time of
the purchase of the shares. The open market purchase period represents the period of time over which the
financial institutions were permitted to purchase shares in the open market to satisfy the borrowings of our
common stock they made to execute the share purchase transactions. Settlement of the forward contracts was
paid in shares, at our option. As a result, we received an additional 2,449,230 shares upon settlement of the ASR
agreements. A total of 7,224,779 shares were purchased and retired as a result of the ASR agreements.
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