Harman Kardon 2010 Annual Report Download - page 81

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Harman International Industries, Incorporated and Subsidiaries
(Dollars in thousands, except per-share data and unless otherwise indicated)
The following illustrates the impact of adopting this new accounting guidance in our Consolidated
Statements of Operations for the years ended June 30, 2010, 2009 and 2008:
Year Ended
June 30, 2010 June 30, 2009 June 30, 2008
Excluding
the
Adoption
of New
Guidance
Additional
Non-cash
Interest
Expense
As
Adjusted
As
Previously
Reported
Additional
Non-cash
Interest
Expense
As
Adjusted
As
Previously
Reported
Additional
Non-cash
Interest
Expense
As
Adjusted
Operating income (loss) ........ $ 85,555 $ — $ 85,555 $(503,813) $ — $(503,813) $132,167 $ — $132,167
Interest expense, net ........... 15,403 14,812 30,215 6,701 13,872 20,573 8,333 9,392 17,725
Miscellaneous, net ............ 6,263 — 6,263 4,224 — 4,224 5,233 — 5,233
Income (loss) from continuing
operations, before income
taxes ..................... 63,889 (14,812) 49,077 (514,738) (13,872) (528,610) 118,601 (9,392) 109,209
Income tax expense (benefit),
net....................... 13,809 (5,199) 8,610 (102,099) (4,918) (107,017) 16,993 (3,329) 13,664
Income (loss) from continuing
operations, net of income
taxes ..................... 50,080 (9,613) 40,467 (412,639) (8,954) (421,593) 101,608 (6,063) 95,545
Income (loss) from discontinued
operations, net of income
taxes ..................... 123,591 — 123,591 (9,159) — (9,159) 5,757 — 5,757
Net income (loss) ............. 173,671 (9,613) 164,058 (421,798) (8,954) (430,752) 107,365 (6,063) 101,302
Less: Net income (loss)
attributable to noncontrolling
interest ................... 5,289 — 5,289 752 — 752 (421) — (421)
Net income (loss) attributable to
Harman International
Industries, Incorporated .... $168,382 $ (9,613) $158,769 $(422,550) $ (8,954) $(431,504) $107,786 $(6,063) $101,723
Earnings (loss) per share:
Basic ................... $ 2.39 $ 0.14 $ 2.26 $ (7.19) $ 0.15 $ (7.34) $ 1.75 $ 0.10 $ 1.65
Diluted ................. $ 2.39 $ 0.14 $ 2.25 $ (7.19) $ 0.15 $ (7.34) $ 1.73 $ 0.10 $ 1.64
The following illustrates the impact of adopting this new accounting guidance in our Consolidated Balance
Sheets as of June 30, 2010 and June 30, 2009:
June 30, 2010 June 30, 2009
Excluding
the
Adoption
of New
Guidance
Effect of
New
Guidance
As
Adjusted
As
Previously
Reported
Effect of
New
Guidance
As
Adjusted
Noncurrent assets:
Deferred tax assets, long-term(1) ............ $ 260,659 $(13,057) $ 247,602 $ 292,575 $(18,263) $ 274,312
Other assets(2) ........................... 107,318 (555) 106,763 91,715 (600) 91,115
Noncurrent liabilities:
Convertible senior notes(3) ................. 400,000 (37,307) 362,693 400,000 (52,163) 347,837
Shareholders’ equity:
Additional paid-in capital(4) ................ 940,452 48,323 892,129 821,286 48,323 869,609
Retained earnings(5) ...................... 1,310,344 (24,629) 1,285,715 1,141,962 (15,016) 1,126,946
(1) Effect of new guidance reflects a deferred tax liability established in connection with the debt discount.
(2) Effect of new guidance reflects a reduction in debt issuance costs allocated to the equity component.
(3) Effect of new guidance reflects the unamortized debt discount.
(4) Effect of new guidance reflects the recognition of the equity component, net of tax.
(5) Effect of new guidance reflects the amortization of the debt discount, net of tax and the reduction in the amortization of debt
issuance costs which were allocated to the equity component.
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