HARMAN INTERNATIONAL INDUSTRIES INC /DE/

CIK:0000800459|SEC Filings

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Net sales	$ 1,947,474	$ 1,772,157	$ 3,706,996	$ 3,403,045
Cost of sales	1,339,513	1,227,065	2,557,764	2,370,555
Gross profit	607,961	545,092	1,149,232	1,032,490
Selling, general and administrative expenses	433,947	385,939	824,407	741,870
Operating income	174,014	159,153	324,825	290,620
Other expenses:
Interest expense, net	9,214	7,666	18,538	15,925
Foreign exchange losses (gains), net	2,365	887	1,398	(958)
Miscellaneous, net	1,916	4,363	4,811	8,350
Income before income taxes	160,519	146,237	300,078	267,303
Income tax expense, net	60,865	33,050	98,288	66,600
Equity in loss (income) of unconsolidated subsidiaries	205		(776)
Net income	99,449	113,187	202,566	200,703
Net income attributable to non-controlling interest		289		707
Net income attributable to Harman International Industries, Incorporated	$ 99,449	$ 112,898	$ 202,566	$ 199,996
Earnings per share:
Basic	$ 1.40	$ 1.57	$ 2.86	$ 2.78
Diluted	$ 1.39	$ 1.55	$ 2.83	$ 2.76
Weighted average shares outstanding:
Basic	70,986	72,079	70,938	72,060
Diluted	71,712	72,830	71,510	72,549

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 202,566	$ 200,703
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	103,780	114,837
Deferred income taxes	3,918	30,519
Loss on disposition of assets	1,093	471
Share-based compensation	30,058	20,941
Excess tax benefit from share-based compensation	(27,309)	(1,958)
Non-cash interest expense	1,885	1,396
Non-cash increase in contingent consideration	15,332	913
(Increase) decrease in:
Receivables, net	(99,556)	(32,576)
Inventories	(98,686)	(197,836)
Other current assets	(60,033)	(38,602)
Pre-production and development costs	(11,306)	(33,266)
Increase (decrease) in:
Accounts payable	158,764	(21,130)
Accrued warranties	15,432	4,819
Accrued other liabilities	60,039	39,714
Income taxes payable	17,918	(50,711)
Net change in derivative assets and liabilities	(14,478)	(11,320)
Other operating activities	11,100	(7,143)
Net cash provided by operating activities	310,517	19,771
Cash flows from investing activities:
Acquisitions, net of cash received	(1,385)	(619)
Capital expenditures	(71,071)	(87,352)
Proceeds from asset dispositions	2,703	50
Purchase of convertible debt security	(15,000)
Other items, net	(2,511)	1,042
Net cash used in investing activities	(87,264)	(86,879)
Cash flows from financing activities:
Increase in short-term borrowings	2,788	340
Borrowings of long-term debt	80,000
Repayments of long-term debt	(91,193)	(26,259)
Cash dividends to shareholders	(49,815)	(50,172)
Repurchase of common stock	(55,168)	(50,009)
Exercise of stock options	7,489	5,527
Repurchases related to share-based compensation arrangements	(14,930)	(11,861)
Excess tax benefit from share-based compensation	27,309	1,958
Payment of contingent consideration	(30,170)	(327)
Other items, net	(5,446)	(2,310)
Net cash used in financing activities	(129,136)	(133,113)
Effect of exchange rate changes on cash	(13,066)	(11,756)
Net increase in cash and cash equivalents	81,051	(211,977)
Cash and cash equivalents at beginning of period	602,300	649,513
Cash and cash equivalents at end of period	683,351	437,536
Supplemental disclosure of cash flow information:
Interest paid, net	12,881	10,736
Income taxes paid	$ 78,047	$ 45,851

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Current assets
Cash and cash equivalents	$ 683,351	$ 602,300
Receivables, net	1,195,761	1,122,920
Inventories	787,559	706,084
Other current assets	584,653	487,151
Total current assets	3,251,324	2,918,455
Property, plant and equipment, net	579,039	593,290
Intangible assets, net	435,930	476,284
Goodwill	1,500,499	1,510,279
Deferred tax assets, net	131,681	140,181
Other assets	433,150	409,380
Total assets	6,331,623	6,047,869
Current liabilities
Current portion of long-term debt	55,543	86,641
Short-term debt	2,832	0
Accounts payable	1,001,822	867,279
Accrued liabilities	724,759	670,746
Accrued warranties	185,656	178,367
Income taxes payable	40,762	28,773
Total current liabilities	2,011,374	1,831,806
Borrowings under revolving credit facility	513,000	523,000
Long-term debt	766,601	787,333
Pension liability	210,471	216,016
Other non-current liabilities	253,718	237,241
Total liabilities	3,755,164	3,595,396
Commitments and contingencies
Preferred stock
Common stock	1,017	1,012
Additional paid-in capital	1,460,686	1,410,765
Accumulated other comprehensive income	(100,930)	(77,241)
Retained earnings	2,643,487	2,490,570
Less: Common stock held in treasury	(1,427,801)	(1,372,633)
Total equity	2,576,459	2,452,473
Total liabilities and equity	$ 6,331,623	$ 6,047,869