Harman Kardon 2010 Annual Report Download - page 91

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Harman International Industries, Incorporated and Subsidiaries
(Dollars in thousands, except per-share data and unless otherwise indicated)
Goodwill from continuing operations was $105.9 million at June 30, 2010 compared with $42.2 million at
June 30, 2009. The increase in goodwill in the fiscal year ended June 30, 2010 versus the prior fiscal year is
primarily related to the acquisition of Selenium in June 2010 which resulted in an increase in goodwill of $59.1
million and contingent purchase price consideration associated with the acquisition of Innovative Systems GmbH
(“Innovative”) of $6.1 million.
Goodwill was $42.2 million at June 30, 2009 compared with $383.9 million at June 30, 2008. The decrease
was primarily related to non-cash goodwill impairment charges of $317.7 million, unfavorable foreign currency
translation of $35.3 million and contingent purchase price consideration associated with the acquisition of
Innovative of $11.3 million.
The changes in the carrying amount of goodwill for the year ended June 30, 2010 were as follows:
Automotive Consumer Professional Other Total
Balance at June 30, 2009 .............................. $ — $ — $42,200 $— $ 42,200
Acquisition of Selenium (Note 2) ....................... — 30,686 28,389 — 59,075
Contingent purchase price consideration associated with the
acquisition of Innovative Systems GmbH ............... 18,419 — — — 18,419
Impairment charge .................................. (12,292) — — — (12,292)
Other adjustments(1) .................................. — — (1,480) — (1,480)
Balance at June 30, 2010 .............................. $ 6,127 $30,686 $69,109 $— $105,922
(1) The other adjustments to goodwill primarily consist of foreign currency translation adjustments.
The contingent purchase price consideration associated with the acquisition of Innovative continues
indefinitely unless we or the sellers exercise a buyout option within six months from September 2010.
Note 9 – Debt
Short Term Borrowings
At June 30, 2010 and 2009, we had $13.5 million and zero outstanding short-term borrowings, respectively.
For the fiscal year ended June 30, 2010 and 2009, we maintained lines of credit totaling an aggregate of $13.6
million and $14.0 million, respectively, in Germany, Austria and Hungary.
We classify our debt based on the contractual maturity dates of the underlying debt instruments. We defer
costs associated with debt issuance over the applicable term of the debt. These costs are amortized to Interest
expense, net in our Consolidated Statements of Operations.
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