FORM 10-K - Harman

Harman International Industries, Incorporated and Subsidiaries
(Dollars in thousands, except per-share data and unless otherwise indicated)
Accrued income taxes payable was $22.1 million and $21.9 million at June 30, 2009 and 2008, respectively.
A net deferred tax asset of $32.2 million and $292.6 million was recorded in other current assets and
deferred taxes, long-term, respectively, in the Consolidated Balance Sheet at June 30, 2009. A net deferred tax
asset of $27.9 million was recorded in other current assets and $193.9 million was recorded within deferred
taxes, long-term and other non-current liabilities in the Consolidated Balance Sheet at June 30, 2008.
We generated (loss)/income before income taxes of $(279.5) million, $143.6 million, and $353.1 million
from our international operations during the fiscal years ended June 30, 2009, 2008 and 2007, respectively.
Note 11 – Shareholders’ Equity and Share-Based Compensation
Preferred Stock
As of June 30, 2009 and 2008, we had no shares of preferred stock outstanding. We are authorized to issue
5 million shares of preferred stock, $0.01 par value.
Common Stock
We have 200 million authorized shares of common stock, $0.01 par value. At June 30, 2009 and 2008, we
had 94,929,595 and 84,117,883 shares issued; 25,599,817 and 25,599,817 shares in treasury stock and
69,329,778 and 58,518,066 shares outstanding (net of treasury stock), respectively.
Issuance of Common Stock
On June 23, 2009, we completed a public offering of 10,667,000 shares of our common stock at the offering
price of $18.75 per share, less a 4.75 percent underwriting discount and received cash proceeds of $189.8
million, net of expenses of $0.7 million. Approximately $0.1 million was recorded as an increase in our common
stock and $189.7 million was recorded as an increase in additional paid-in capital in our Consolidated Balance
Sheet at June 30, 2009.
Accelerated Share Repurchase
On October 30, 2007, we used the proceeds from the issuance and sale of the Notes to repurchase and retire
4,775,549 shares of our common stock for a total purchase price of approximately $400 million from two
financial institutions, under two separate accelerated share repurchase (“ASR”) agreements. These shares
represented approximately seven percent of the then-outstanding shares of our common stock.
Each ASR was accounted for as a purchase of shares and a separate net-settled forward contract indexed to
our stock. The forward contract was settled based on the difference between the volume weighted average price
of our common stock over the financial institutions’ open market purchase period and the valuation at the time of
the shares purchase. The open market purchase period represents the period of time over which the financial
institutions were permitted to purchase shares in the open market to satisfy the borrowings of our common stock
they made to execute the share purchase transactions. Settlement of the forward contracts were paid in shares, at
our option. As a result, we received an additional 2,449,230 shares upon settlement of the ASR agreements. A
total of 7,224,779 shares were purchased and retired as a result of the ASR agreements.
Share-Based Compensation
On June 30, 2009, we had one share-based plan with shares available for future grants, the Amended and
Restated 2002 Stock Option and Incentive Plan (“the 2002 Plan”) which is described below. The compensation
expense for share-based compensation was $9.8 million, $23.1 million and $15.4 million for the years ended
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