FORM 10-K - Harman

Other SG&A expenses increased $16.9 million to $87.9 million in fiscal year 2008 compared to the prior
year primarily due to $13.8 million of merger costs incurred in fiscal year 2008.
Restructuring
We announced a restructuring program in June 2006 designed to increase efficiency in our manufacturing,
engineering and administrative organizations. The implementation of this program has continued through fiscal
year 2009, as we expanded our restructuring actions to improve our global footprint, cost structure, technology
portfolio, human resources and internal processes. These actions will reduce the number of our manufacturing,
engineering and operating locations and are all included in our cost savings and productivity program called
STEP Change.
In fiscal year 2008 we announced plant closings in Northridge, California and Martinsville, Indiana and
closed a plant in South Africa and a small facility in Massachusetts. In fiscal year 2009, we completed the
transition of our corporate headquarters from Washington D.C. to Stamford, Connecticut and have initiated
numerous other actions to reduce cost and improve operating efficiency in our businesses. Programs initiated in
fiscal year 2009 include the closure of the Woodbury, New York facility and numerous headcount reductions
across our business units to reduce excess capacity due to decreased sales. The most significant of these
programs were in Germany, Austria, the United Kingdom and various locations in the United States.
In fiscal year 2009, we recorded $90.1 million for our restructuring program, primarily within SG&A, of
which $74.9 million related to employee termination benefits. Cash paid for these initiatives was $46.6 million.
In addition, we have recorded $10.3 million of accelerated depreciation primarily in cost of sales.
Below is a rollforward of our restructuring accrual for fiscal years 2009, 2008 and 2007:
Year Ended June 30.
($ in thousands) 2009 2008 2007
Beginning accrued liability .......................................... $35,601 $ 7,527 $ 8,533
Expense ......................................................... 90,140 42,192 7,071
Utilization (1) ...................................................... (48,287) (14,118) (8,077)
Ending accrued liability ............................................. $77,454 $ 35,601 $ 7,527
(1) Includes amounts representing adjustment to the liability for changes in foreign currency exchange rates.
Refer to Note 12 – Restructuring in the Notes to the Consolidated Financial Statements for additional
information.
Restructuring expenses by reporting segment are as follows:
Year Ended June 30,
2009 2008 2007
Automotive ........................................................ $ 51,488 $22,214 $5,670
Consumer ......................................................... 13,250 5,807 560
Professional ....................................................... 16,369 8,884 841
Other ............................................................. 9,033 5,287 —
Total expense ...................................................... 90,140 42,192 7,071
Accelerated depreciation ............................................. 10,305 4,033 —
Total ............................................................. $100,445 $46,225 $7,071
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