Harman Kardon 2011 Annual Report Download - page 83

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Long-Term Debt and Current Portion of Long-Term-Debt
At June 30, 2011 and 2010, long-term debt consisted of the following:
Face Value at
June 30, 2011
Book Value at
June 30, 2011
Face Value at
June 30, 2010
Book Value at
June 30, 2010
Convertible senior notes due 2012, interest due semi-
annually at 1.25 percent(1) ..................... $400,000 $378,401 $400,000 $362,693
Obligations under capital leases .................. 442 442 741 741
Other unsubordinated loans ...................... 386 386 931 931
Total long-term debt ........................... 400,828 379,229 401,672 364,365
Less: current portion of long-term debt ............. (828) (828) (463) (463)
Total long-term debt ........................... $400,000 $378,401 $401,209 $363,902
(1) Book values as of June 30, 2011 and 2010 are presented net of unamortized discounts of $21.6 million and
$37.3 million, respectively, resulting from the adoption of new accounting guidance in fiscal year 2010. The
fair value of the Convertible Senior Notes at June 30, 2011 and 2010 was $383.9 million and $351.2
million, respectively.
Interest expense is reported net of interest income in our Consolidated Statements of Operations. Interest
expense, net was $22.6 million, $30.2 million and $20.6 million for the fiscal years ended June 30, 2011, 2010
and 2009, respectively. Gross interest expense was $32.5 million, $33.8 million and $28.7 million for the fiscal
years ended June 30, 2011, 2010 and 2009, respectively, of which $19.3 million, $17.4 million and $14.8 million,
respectively, was non-cash interest expense associated with the amortization of the debt discount on the
Convertible Senior Notes and the amortization of debt issuance costs on the Convertible Senior Notes and our
existing and prior revolving credit facilities, and $13.2 million, $16.4 million and $13.9 million, for the fiscal
years ended June 30, 2011, 2010 and 2009 respectively, was cash interest expense. Interest income was $9.9
million, $3.6 million and $8.1 million for the fiscal years ended June 30, 2011, 2010 and 2009, respectively.
Refer to the heading “New Revolving Credit Facility” below for further information on our revolving credit
facility.
Cash paid for interest, net of cash received was $5.0 million, $15.0 million and $2.3 million in the fiscal
years ended June 30, 2011, 2010 and 2009, respectively.
At June 30, 2011, long-term debt, including obligations under capital leases, maturing in each of the next
five fiscal years and thereafter is as follows:
2012 .................................................................... $ 828
2013 .................................................................... 400,000
2014 .................................................................... 0
2015 .................................................................... 0
2016 .................................................................... 0
Thereafter ................................................................ 0
Total .................................................................... $400,828
New Revolving Credit Facility
On December 1, 2010, we and one of our wholly-owned subsidiaries, Harman KG, entered into a Multi-
Currency Credit Agreement (the “Credit Agreement”) with a group of banks. The Credit Agreement provides for a
five- year secured revolving credit facility which expires on December 1, 2015 (the “Revolving Credit Facility”)
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