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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 />
Long-Term Debt and Current Portion of Long-Term-Debt<br />
At June 30, 2009 and 2008, long-term debt consisted of the following:<br />
June 30,<br />
2009 2008<br />
Convertible senior notes due 2012, interest due semi-annually at 1.25% .... $400,000 $400,000<br />
Revolving credit facility .......................................... 227,319 25,000<br />
Obligations under capital leases ....................................<br />
Other unsubordinated variable rate loans due through 2016, bearing interest<br />
1,365 2,085<br />
at an average effective rate of 5.0 percent at June 30, 2009 ............. 775 867<br />
Total long-term debt ............................................. 629,459 427,952<br />
Less: current portion of long-term debt .............................. (605) (639)<br />
Total long-term debt ............................................. $628,854 $427,313<br />
Weighted average borrowings were $521.0 million and $401.0 million and $170.2 million for fiscal years<br />
ended June 30, 2009, 2008 and 2007, respectively. The weighted average interest rate was 2.6 percent, 3.5<br />
percent and 5.6 percent for the fiscal years ended June 30, 2009, 2008 and 2007, respectively. Our average<br />
interest rates fluctuate primarily due to changes in the U.S. Dollar denominated short-term London Interbank<br />
Offered Rate (“LIBOR”) base rates. The majority of our interest expense is associated with the Notes.<br />
Interest expense is reported net of interest income in our Consolidated Statements of Operations. Gross<br />
interest expense was $15.3 million, $17.8 million and $9.6 million for the fiscal years ended June 30, 2009, 2008<br />
and 2007 respectively. Interest income was $8.4 million, $9.2 million and $8.1 million for the fiscal years ended<br />
June 30, 2009, 2008 and 2007, respectively.<br />
Cash paid for interest, net of cash interest received, was $2.3 million, $6.3 million, and $2.5 million in the<br />
fiscal years ended June 30, 2009, 2008 and 2007, respectively.<br />
At June 30, 2009, long-term debt, including obligations under capital leases, maturing in each of the next<br />
five fiscal years and thereafter is as follows:<br />
20<strong>10</strong> ............................................................ $ 605<br />
2011 ............................................................ 524<br />
2012 ............................................................ 227,851<br />
2013 ............................................................ 400,1<strong>10</strong><br />
2014 ............................................................ 115<br />
Thereafter ........................................................ 254<br />
Total ............................................................ $629,459<br />
Borrowings Under Revolving Credit Facility<br />
On March 31, 2009 we and one of our wholly-owned subsidiaries, <strong>Harman</strong> Holding GmbH & Co. KG<br />
(collectively the “Borrowers”) entered into the Second Amended and Restated Multi-Currency, Multi-Option<br />
Credit Agreement (the “Amended Credit Agreement”), amending and restating the Amended and Restated Multi-<br />
Currency, Multi-Option Credit Agreement dated June 22, 2006. The Amended Credit Agreement, among other<br />
things, extended the maturity date from June 28, 20<strong>10</strong> to December 31, 2011 and reduced the maximum amount<br />
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