Harman Kardon 2010 Annual Report Download - page 99

Download and view the complete annual report

Please find page 99 of the 2010 Harman Kardon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 137

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137

Harman International Industries, Incorporated and Subsidiaries
(Dollars in thousands, except per-share data and unless otherwise indicated)
The following tables provide a summary of the fair value amounts of our derivative instruments as of
June 30, 2010 and 2009:
Fair Values of Derivative Instruments as of June 30, 2010 and 2009:
Fair Value
Balance Sheet Location
June 30,
2010
June 30,
2009
Derivatives Designated as Hedging
Instruments, Gross:
Other assets:
Foreign exchange contracts ........................... Other assets $24,969 $ 1,065
Other liabilities:
Foreign exchange contracts ........................... Other liabilities 3,429 12,328
Interest rate swap................................... Accrued liabilities 709 957
Interest rate swap................................... Other non-current liabilities 1,129 810
Total liabilities ................................ 5,267 14,095
Net asset (liability) for derivatives designated as hedging
instruments ..................................... 19,702 (13,030)
Economic Hedges, Gross:
Other assets:
Foreign exchange contracts ........................... Other assets 6,223 88
Other liabilities:
Foreign exchange contracts ........................... Other liabilities 325 1,696
Net asset (liability) for economic hedges: ................ 5,898 (1,608)
Total net derivative asset (liability) .................... $25,600 $(14,638)
Derivatives Designated as Cash Flow Hedges
The following tables show derivative activity for derivatives designated as cash flow hedges for the years
ended June 30, 2010 and 2009:
Derivatives Designated as Cash Flow Hedging Instruments For the Years Ended June 30, 2010 and 2009:
Derivative
Location of
Derivative
Gain/(Loss)
Recognized in
Income
Gain/(Loss)
Recognized
in OCI
(Effective
Portion)
Gain/(Loss)
Reclassified
from AOCI
into Income
(Effective
Portion)
Gain/(Loss)
Recognized
in Income on
Derivatives
(Ineffective
Portion)
Gain/(Loss)
from Amounts
Excluded from
Effectiveness
Testing
Years Ended June 30, 2010
2010 2009 2010 2009 2010 2009 2010 2009
Foreign exchange contracts ..... Cost of sales $27,967 $(5,355) $(2,028) $4,890 $— $— $ 19 $ —
Foreign exchange contracts ..... SG&A — — 2,203 347 14 — (231) (71)
Foreign exchange contracts ..... Other expense — — — — — — — (1,160)
Interest rate swap ............. Rent expense (983) (2,666) (827) (51) (8) (6) — —
Total cash flow hedges ........ $26,984 $(8,021) $ (652) $5,186 $ 6 $ (6) $(212) $(1,231)
78