FORM 10-K - Harman

Contractual Obligations
We have obligations and commitments to make future payments under debt agreements and operating
leases. The following table details our financing obligations by due date:
Year Ending June 30,
2010 2011 2012 2013 2014 Thereafter Total
Senior notes(a) .................. $ — $ — $ — $400,000 $ — $ — $ 400,000
Capital leases(a) ................. 546 438 427 — — — 1,411
Other long-term obligations(a) ......
Firm commitments for capital
91 100 227,424 110 115 254 228,094
expenditures .................. 10,685 — — — — — 10,685
Purchase obligations(b) ........... 188,094 160 72 1 1 1 188,329
Non-cancelable operating leases(c) . . 35,106 29,017 28,233 27,826 24,755 60,800 205,737
Uncertain tax positions(d) .......... 10,533 — — — — — 10,533
Total contractual cash obligations . . . $245,055 $29,715 $256,156 $427,937 $24,871 $61,055 $1,044,789
(a) Refer to Note 6 – Debt in the Notes to the Consolidated Financial Statements for more information and for
interest payments associated with our long-term debt.
(b) Includes amounts committed under enforceable agreements for purchase of goods and services with defined
terms as to quantity, price and timing of delivery.
(c) Refer to Note 9 – Leases in the Notes to the Consolidated Financial Statements.
(d) Refer to Note 10 – Income Taxes in the Notes to the Consolidated Financial Statements.
Equity
Total shareholders’ equity at June 30, 2009 was $973.8 million compared with $1.340 billion at June 30,
2008. The decrease is primarily due to the goodwill impairment charges totaling $330.6 million. There were no
shares of our common stock repurchased during the fiscal year ended June 30, 2009.
Business Outlook
With the current turmoil in the global credit and financial markets, investor and consumer confidence have
been negatively affected. We continued to see these effects on our results through most of fiscal year 2009. Our
future outlook may continue to be impacted by the contraction in consumer discretionary spending. Our outlook
could also be affected by changes in foreign currency exchange rates (primarily the Euro compared to the U.S.
dollar), potentially resulting in reduced sales.
To mitigate the potential impacts of the declining economic markets, we have accelerated many of the
strategic initiatives implemented in the prior fiscal year and also approved additional restructuring actions during
fiscal year 2009. We continue to focus on improving our global footprint, cost structure, technology portfolio,
human resources and internal processes. We are continuing to proceed with our 24-month cost improvement and
productivity program called STEP Change. This program is designed to yield $400 million in sustainable savings
by fiscal year 2011. We have accelerated the timing of severance actions in order to help us improve our cost
structure to enable us to remain competitive and mitigate the negative effects of this challenging environment.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
We are required to include information about potential effects of changes in interest rates and currency
exchange rates in our periodic reports filed with the Securities and Exchange Commission.
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