FORM 10-K - Harman

Harman International Industries, Incorporated and Subsidiaries
(Dollars in thousands, except per-share data and unless otherwise indicated)
We rely on historical long-term rates of return by asset class, the current long-term U.S. Treasury bond rate,
and the current and expected asset allocation strategy to determine the expected long-term rate of return
assumptions. The discount rate used for our European pension benefits are primarily based on yields for German
federal bonds and Euro denominated bonds provided by Deutsche Bundesbank. The discount rate was also
derived based on the anticipated cash flow of the plan and the spot yields on corporate bonds published in the
Citigroup Pension Liability Index as of June 30, 2009 . The rates used represent the single discount rate equal to
the yield on a bond portfolio constructed to settle the plan’s cash flows, or to use a method that approximates the
yield on such a portfolio and that does not yield a materially different result.
Note 15 – 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, Other, includes our QNX business,
which was previously reported in our Automotive segment. This realignment reflects our focus on growing the
QNX business in other non-automotive industries. Our Professional segment now includes our Harman Specialty
business which was previously reported in our Consumer segment. Our Harman Specialty business includes
Mark Levinson, Revel and Lexicon branded products. This realignment reflects our focus on growing our
Harman Specialty business in the Professional segment.
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 19 –
Significant Customers.
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 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 iPodTM 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 and Studer.
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