Harman Kardon 2011 Annual Report Download - page 106

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using the appropriate yield curve based on the currency of payment of benefits, to develop a single-point discount
rate matching each plan’s payout structure. Prior to June 30, 2010, a similar approach was followed, using yields
for German federal bonds and Euro denominated bonds provided by Deutsche Bundesbank, and spot yields on
corporate bonds published in the Citigroup Pension Liability Index.
Note 17 – Business Segment Data
We design, manufacture and market high-quality, high fidelity audio products and electronic systems for the
automotive, consumer and professional markets. Our chief operating decision maker evaluates performance and
allocates resources based on net sales, operating income and working capital in each of the reporting segments.
We report our business on the basis of four segments. Our Automotive, Consumer and Professional
segments are based on the end-user markets we serve. Our fourth segment includes the results of Other, which
includes compensation, benefits and occupancy costs for corporate employees, net of reporting segment
allocations, expenses associated with new technology innovation and our corporate brand identity campaign, as
well as the results of operations of Aha, which we acquired in September 2010.
Automotive
Our Automotive segment designs, manufactures and markets audio, electronic and infotainment systems for
vehicle applications to be installed primarily as original equipment by automotive manufacturers. Our
Automotive products are marketed worldwide under brand names including JBL, Infinity, Mark Levinson,
Harman/Kardon, Logic 7, Lexicon and Becker. Our premium branded audio, video, navigation and infotainment
systems are offered to automobile manufacturers through engineering and supply agreements. See Note 21 –
Significant Customers for more information.
Consumer
Our Consumer segment designs, manufactures and markets a wide-range of mid- to high-end audio, video
and digital storage systems for home, multimedia and mobile applications. Our Consumer products feature some
of the world’s most recognized audio brands, including AKG, Harman/Kardon, Infinity, JBL, Selenium and
Mark Levinson. Our loudspeaker and electronic products are offered through audio specialty and retail chain
stores. Our branded products for computer and multimedia applications are focused on retail customers with
products designed to enhance sound for computers, Apple’s iPod®and similar devices.
Professional
Our Professional segment designs, manufactures and markets an extensive range of loudspeakers, power
amplifiers, digital signal processors, microphones, headphones and mixing consoles used by audio professionals
in concert halls, stadiums, airports, houses of worship and other public spaces. We also provide high-quality
products to the sound reinforcement, music instrument support and broadcast and recording segments of the
professional audio market. We offer complete systems solutions for professional installations and users around
the world. Our Professional products are marketed globally under brand names including JBL Professional,
AKG, Crown, Soundcraft, Lexicon, Revel, Mark Levinson DigiTech, dbx, BSS, Selenium and Studer.
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