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<strong>Harman</strong> International Industries, Incorporated and Subsidiaries<br />
(Dollars in thousands, except per-share data and unless otherwise indicated)<br />
fiscal year 2009 include the closure of the Woodbury, New York facility and numerous headcount reductions<br />
across our business units to reduce excess capacity due to decreased sales. The most significant of these<br />
programs were in Germany, Austria, the United Kingdom and various locations in the United States.<br />
In fiscal year 2009, we recorded $90.1 million for our restructuring program, primarily within SG&A, of<br />
which $74.9 million related to employee termination benefits. Cash paid for these initiatives was $46.6 million.<br />
In addition, we have recorded $<strong>10</strong>.3 million of accelerated depreciation primarily in cost of sales in accordance<br />
with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets.<br />
Below is a rollforward of our restructuring accrual, accounted for in accordance with SFAS No. 88,<br />
“Employers’ Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination<br />
Benefits”, SFAS No. 112, “Employers’ Accounting for Postemployment Benefits” and SFAS No. 146,<br />
“Accounting for Costs Associated with Exit or Disposal Activities:”<br />
Year Ended June 30,<br />
2009 2008 2007<br />
Accrued liability, July 1, ................................. $35,601 $ 7,527 $ 8,533<br />
Expense .............................................. 90,140 42,192 7,071<br />
Utilization (1) ........................................... (48,287) (14,118) (8,077)<br />
Accrued liability at June 30, ............................... $77,454 $ 35,601 $ 7,527<br />
(1) Includes amounts representing adjustments to the liability for changes in foreign currency exchange rates.<br />
Restructuring expenses by reporting segment are as follows:<br />
2009<br />
Year Ended June 30,<br />
2008 2007<br />
Automotive ............................................. $ 51,488 $22,214 $5,670<br />
Consumer .............................................. 13,250 5,807 560<br />
Professional ............................................ 16,369 8,884 841<br />
Other .................................................. 9,033 5,287 —<br />
Total expense ........................................... 90,140 42,192 7,071<br />
Accelerated depreciation .................................. <strong>10</strong>,305 4,033 —<br />
Total .................................................. $<strong>10</strong>0,445 $46,225 $7,071<br />
Note 13 – Merger costs<br />
On October 22, 2007, we announced the termination of our merger agreement with KKR and GSCP and<br />
companies formed by investment funds affiliated with KKR and GSCP. During the year ended June 30, 2008, we<br />
incurred $13.8 million of legal and advisory services expenses associated with the termination of the merger,<br />
which is included in selling, general and administrative expenses in our Consolidated Statements of Operations.<br />
Note 14 – Retirement Benefits<br />
Plan Descriptions<br />
Retirement savings plan. We provide a Retirement Savings Plan for certain employees in the United States.<br />
Under the plan, employees may contribute up to 50 percent of their pretax compensation subject to certain<br />
limitations. Each business unit will make a safe harbor non-elective contribution in an amount equal to three<br />
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