Harman Kardon 2010 Annual Report Download - page 71

CONSOLIDATED STATEMENTS OF CASH FLOWS
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED AND SUBSIDIARIES
Year Ended June 30,
(in thousands) 2010 2009 2008
Cash flows from operating activities:
Net income (loss) attributable to Harman International Industries, Incorporated ............... $158,769 $(431,504) $ 101,723
Adjustments to reconcile net income (loss) attributable to Harman International Industries,
Incorporated to net cash provided by operating activities:
(Income) loss from discontinued operations, net of income taxes .......................... (9,394) 9,159 (5,757)
Gain on sale of QNX Entities ...................................................... (114,197) — —
Goodwill impairment ............................................................ 12,292 317,743 —
Loss on deconsolidation of variable interest entity ...................................... 13,122 — —
Depreciation and amortization ..................................................... 127,654 145,786 148,542
Deferred income tax expense (benefit) ............................................... 3,954 (107,789) (13,770)
Noncontrolling interest ........................................................... 5,289 752 (421)
(Gain) loss on disposition of assets .................................................. 593 (13,753) 235
Share-based compensation ........................................................ 21,320 9,770 23,148
Non-cash interest expense ......................................................... 12,250 13,871 9,393
Excess tax benefits from share-based payment arrangements ............................. — (126) (5,321)
Changes in operating assets and liabilities:
Decrease (increase) in:
Receivables ................................................................ (144,100) 117,587 (33,034)
Inventories ................................................................. (40,055) 27,775 102,463
Other current assets .......................................................... (10,194) 83,327 (55,779)
Increase (decrease) in:
Accounts payable ........................................................... 180,064 (81,531) (38,154)
Accrued warranties .......................................................... 20,586 (18,324) 77,533
Accrued other liabilities ...................................................... (17,344) 13,056 69,785
Income taxes payable ........................................................ (5,410) (2,781) (65,371)
Other operating activities ..................................................... (23,773) (21,220) (7,032)
Net cash from continuing operations provided by operating activities ........................... 191,426 61,798 308,183
Net cash from discontinued operations (used in) provided by operating activities ................. 49,013 12,653 8,626
Net cash from operations provided by operating activities .................................... 240,439 74,451 316,809
Cash flows from investing activities:
Acquisition of Selenium, net of cash received ......................................... (63,843) — —
Deconsolidation of variable interest entity ............................................ (11,347) — —
Contingent purchase price consideration ............................................. — (7,443) (12,724)
Proceeds from sale of QNX Entities, net of cash paid ................................... 199,560 — —
Proceeds from asset dispositions .................................................... 2,531 22,882 1,476
Capital expenditures ............................................................. (60,033) (79,122) (138,721)
Other items, net ................................................................. — (2,601) 7,697
Net cash from continuing operations used in investing activities ............................... 66,868 (66,284) (142,272)
Net cash from discontinued operations provided by (used in) investing activities .................. (167) (728) (213)
Net cash from operations provided by (used in) investing activities ............................ 66,701 (67,012) (142,485)
Cash flows from financing activities:
Net increase (decrease) in long-term borrowings ....................................... 5,073 936 (1,909)
Net borrowings under revolving credit facility ......................................... (228,890) 197,000 (38,940)
Repayments of long-term debt ..................................................... — — (18,140)
Proceeds from issuance of convertible senior notes ..................................... — — 400,000
Issuance (repurchase) of common stock .............................................. 2,584 189,723 (400,287)
Dividends paid to shareholders ..................................................... — (2,207) (3,056)
Share-based payment arrangements ................................................. (1,027) 142 (3,152)
Debt issuance costs .............................................................. — (9,733) (4,750)
Excess tax benefits from share-based payment arrangements ............................. — 126 5,321
Net cash from continuing operations used in financing activities .......................... (222,260) 375,987 (64,913)
Net cash from discontinued operations (used in) provided by financing activities ............. — (1) 71
Net cash (used in) provided by financing activities ..................................... (222,260) 375,986 (64,842)
Effect of exchange rate changes on cash ............................................. (25,669) (20,175) 7,486
Net increase in cash and cash equivalents ............................................ 59,211 363,250 116,968
Cash and cash equivalents at beginning of period ...................................... 586,359 223,109 106,141
Cash and cash equivalents at end of period ........................................... $645,570 $ 586,359 $ 223,109
See accompanying notes to the consolidated financial statements.
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