Harman Kardon 2011 Annual Report Download - page 102

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activities from the United Kingdom to Hungary, a consolidation and optimization of our manufacturing
capabilities in China and the exit of the personal navigation device (“PND”) distribution channel in Germany. In
fiscal year 2011, we announced the relocation of certain manufacturing activities from Washington, Missouri to
Mexico, the outsourcing of certain manufacturing activities to third party suppliers, and we continued to refine
and expand on activities launched in prior years.
A summary and components of our restructuring initiatives are as follows and include accruals for new
programs as noted above plus revisions to estimates, both increases and decreases, to programs accrued in prior
periods:
Severance
Related
Costs
Third Party
Contractor
Termination Costs
Facility Closure
and Other
Related Costs
Asset
Impairments(1) Total
Liability, July 1, 2008 ............... $33,639 $ 52 $ 1,640 $ 0 $ 35,331
Expense(2) ........................ 75,157 326 13,887 10,305 99,675
Accumulated depreciation offset ....... 0 0 0 (10,305) (10,305)
Payments ......................... (39,106) (65) (6,894) 0 (46,065)
Foreign currency translation .......... (1,760) (5) 0 0 (1,765)
Liability, June 30, 2009 .............. 67,930 308 8,633 0 76,871
Expense(2) ........................ 10,049 410 2,535 4,880 17,874
Accumulated depreciation offset ....... 0 0 0 (4,880) (4,880)
Payments ......................... (41,186) (33) (4,299) 0 (45,518)
Foreign currency translation .......... (3,757) 3 5 0 (3,749)
Liability, June 30, 2010 .............. 33,036 688 6,874 0 40,598
Expense(2) ........................ 10,541 1,024 3,518 5,564 20,647
Accumulated depreciation offset ....... 0 0 0 (5,564) (5,564)
Payments ......................... (15,231) (513) (3,833) 0 (19,577)
Foreign currency translation .......... 3,416 103 (1) 0 3,518
Liability, June 30, 2011 .............. $31,762 $1,302 $ 6,558 $ 0 $ 39,622
(1) Credits related to restructuring charges for accelerated depreciation and inventory provisions are recorded
against the related assets in Property, plant & equipment, net or Inventory in our Consolidated Balance
Sheets and do not impact the restructuring liability.
(2) Restructuring expenses noted above are primarily in SG&A in our Consolidated Statements of Operations.
Asset impairments, which consist of accelerated depreciation and inventory provisions are primarily in Cost
of sales in our Consolidated Statements of Operations.
Restructuring liabilities are recorded in Accrued liabilities and Other non-current liabilities in our
Consolidated Balance Sheets.
Restructuring expenses by reporting business segment are as follows:
Year Ended June 30,
2011 2010 2009
Automotive ............................................. $ 8,138 $ 2,785 $51,488
Consumer .............................................. 4,873 7,574 13,250
Professional ............................................ 1,835 2,191 16,369
Other .................................................. 237 444 8,263
Total expense ........................................... 15,083 12,994 89,370
Asset impairments ....................................... 5,564 4,880 10,305
Total .................................................. $20,647 $17,874 $99,675
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