Exhibit 99.1

 

PRESS RELEASE

 

Darrin Shewchuk		Yijing Brentano
Senior Director, Corporate Communications		Vice President, Investor Relations
Tel: +1 203-328-3834		Tel: +1 203-328-3500
darrin.shewchuk@harman.com		yijing.brentano@harman.com

JANUARY 28, 2016

HARMAN REPORTS SECOND QUARTER FISCAL 2016 RESULTS

 

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Q2 Net Sales up 12% to $1.8 Billion; Up 19% Excluding Foreign Exchange

 

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Q2 Operational EBITDA up 14% to $225 Million; Up 20% Excluding Foreign Exchange

 

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Q2 Operational EPS up 3% to $1.84; Up 9% Excluding Foreign Exchange

 

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Secured $2 Billion of New Automotive Awards Year-to-Date

 

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Expands IoT Solutions through New Partnerships with Google, Microsoft and Under Armour

 

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TowerSec Acquisition Strengthens Automotive Cyber Security Leadership

STAMFORD, CT – Harman International Industries, Incorporated (NYSE: HAR), the premier connected technologies company for automotive, consumer and enterprise markets, today announced results for the second quarter ended December 31, 2015.

Net sales for the second quarter were $1.8 billion, an increase of 12 percent compared to the prior year or 19 percent excluding the impact of foreign currency translation (ex-FX). Excluding the impact of acquisitions and foreign currency translation, net sales increased 12 percent compared to the prior year. Connected Car net sales increased two percent (nine percent ex-FX) due to higher take rates, stronger automotive production, and platform expansions. Lifestyle Audio net sales increased 20 percent (26 percent ex-FX) due to new product introductions and expanded global distribution channels in consumer audio, the acquisition of Bang & Olufsen Automotive and higher car audio take rates. Net sales in Professional Solutions decreased seven percent (four percent ex-FX) mainly due to weakness in emerging markets. Connected Services net sales were $170 million compared to $74 million in the prior year, primarily due to the expansion of the Company’s services portfolio as a result of the acquisition of Symphony Teleca (STC).

Excluding restructuring, non-recurring charges and acquisition-related items, second quarter operating income increased 15 percent to $186 million compared to $162 million in the prior year, and EBITDA increased 14 percent to $225 million compared to $198 million in the prior year. Earnings per diluted share were $1.84 compared to $1.79 in the prior year.

On a GAAP basis, second quarter operating income increased seven percent to $159 million compared to $149 million in the prior year and EBITDA increased 17 percent to $217 million compared to $186 million in the prior year. Earnings per diluted share decreased six percent to $1.55 compared to $1.65 in the prior year, due to higher acquisition-related items, including interest expense and share count. The Company recorded $26 million of restructuring, non-recurring charges and acquisition-related items compared to $14 million in the prior year. The increase was primarily due to non-cash amortization of acquired intangible assets.

“I am pleased to announce our 11^th consecutive quarter of top and bottom line growth. Our strong first half results were in-line with our expectations. While we are closely monitoring macroeconomic developments, at this time, we are on track to deliver on our full year plan,” said Dinesh C. Paliwal, the Company’s Chairman, President and CEO. “HARMAN continues to innovate and bring industry-first solutions to market. We are also partnering with key technology leaders such as Google, Microsoft and Under Armour to capitalize on the opportunities presented by IoT for automotive, enterprise and consumer electronics. In addition, our acquisition of TowerSec will strengthen our cybersecurity leadership position for automotive.”

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FY 2016 Key Figures – Total Company		Three Months Ended December 31																Six Months Ended December 31
										Increase (Decrease)																Increase (Decrease)
$ millions (except per share data)		3M FY16				3M FY15				Including Currency Changes				Excluding Currency Changes1				6M FY16				6M FY15				Including Currency Changes				Excluding Currency Changes1
Net sales			1,772				1,584				12	%			19	%			3,403				3,012				13	%			21	%
Gross profit			545				493				11	%			16	%			1,032				908				14	%			20	%
Percent of net sales			30.8	%			31.1	%											30.3	%			30.1	%
SG&A			386				344				12	%			18	%			742				643				15	%			22	%
Operating income			159				149				7	%			10	%			291				265				10	%			15	%
Percent of net sales			9.0	%			9.4	%											8.5	%			8.8	%
EBITDA			217				186				17	%			21	%			405				339				20	%			25	%
Percent of net sales			12.3	%			11.7	%											11.9	%			11.3	%
Net Income attributable to HARMAN International Industries, Incorporated			113				116				(3	%)			0	%			200				199				0	%			4	%
Diluted earnings per share			1.55				1.65				(6	%)			(3	%)			2.76				2.84				(3	%)			1	%
Restructuring & non-recurring costs			9				12												12				20
Acquisition-related items			17				2												41				6
Non-GAAP - operational1
Gross profit			546				479				14	%			20	%			1,035				896				16	%			22	%
Percent of net sales			30.8	%			30.2	%											30.4	%			29.7	%
SG&A			360				316				14	%			20	%			692				606				14	%			21	%
Operating income			186				162				15	%			21	%			344				290				19	%			25	%
Percent of net sales			10.5	%			10.2	%											10.1	%			9.6	%
EBITDA			225				198				14	%			20	%			422				362				17	%			23	%
Percent of net sales			12.7	%			12.5	%											12.4	%			12.0	%
Net Income attributable to HARMAN International Industries, Incorporated			134				126				6	%			13	%			241				218				11	%			17	%
Diluted earnings per share			1.84				1.79				3	%			9	%			3.33				3.10				7	%			13	%
Shares outstanding – diluted (in millions)			73				70												73				70

 

1	A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.

Summary of Operations – Gross Margin and SG&A (Non-GAAP)

Gross margin for the second quarter of fiscal year 2016 increased 60 basis points to 30.8 percent. The improvement was primarily due to the impact of higher sales volume leveraging a more efficient fixed production cost base, as well as the expansion of the Company’s services portfolio.

In the second quarter of fiscal year 2016, SG&A expense as a percentage of net sales increased 30 basis points to 20.3 percent compared to 20.0 percent in the prior year due to investments in research and development.

Investor Call Today January 28, 2016

At 11:00 a.m. EDT today, HARMAN’s management will host an analyst and investor conference call to discuss the second quarter results. Those who wish to participate via audio in the earnings conference call should dial 1 (800) 908-9207 (U.S.) or +1 (212) 231-2932 (International) ten minutes before the call and reference HARMAN, Access Code: 21801416.

In addition, HARMAN invites you to visit the Investors section of its website at: www.harman.com where visitors can sign-up for email alerts and conveniently download copies of historical earnings releases and supporting slide presentations, among other documents. The fiscal second quarter earnings release and supporting materials were posted on the site at approximately 8:00 a.m. EDT today.

 

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A replay of the call will also be available following its completion at approximately 1:00 p.m. EDT. The replay will be available through Friday, April 29, 2016 at 1:00 p.m. EDT. To listen to the replay, dial 1 (800) 633-8284 (U.S.) or +1 (402) 977-9140 (International), Access Code: 21801416. If you need technical assistance, call the toll-free Global Crossing Customer Care Line at 1 (800) 473-0602 (U.S.) or +1 (303) 446-4604 (International).

General Information

HARMAN (harman.com) designs and engineers connected products and solutions for automakers, consumers, and enterprises worldwide, including connected car systems, audio and visual products, enterprise automation solutions; and connected services. With leading brands including AKG^®, Harman Kardon^®, Infinity^®, JBL^®, Lexicon^®, Mark Levinson^® and Revel^®, HARMAN is admired by audiophiles, musicians and the entertainment venues where they perform around the world. More than 25 million automobiles on the road today are equipped with HARMAN audio and connected car systems. The Company’s software services power billions of mobile devices and systems that are connected, integrated and secure across all platforms, from work and home to car and mobile. HARMAN has a workforce of approximately 28,000 people across the Americas, Europe, and Asia and reported sales of $6.5 billion during the 12 months ended December 31, 2015. The Company’s shares are traded on the New York Stock Exchange under the symbol NYSE:HAR.

A reconciliation of the non-GAAP measures included in this press release to the most comparable GAAP measures is provided in the tables contained at the end of this press release. HARMAN does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP.

Forward-Looking Information

Except for historical information contained herein, the matters discussed in this earnings presentation are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. One should not place undue reliance on these statements. The Company bases these statements on particular assumptions that it has made in light of its industry experience, as well as its perception of historical trends, current market conditions, current economic data, expected future developments and other factors that the Company believes are appropriate under the circumstances. These statements involve risks, uncertainties and assumptions that could cause actual results to differ materially from those suggested in the forward-looking statements, including but not limited to: (1) the Company’s ability to maintain profitability if there are delays in its product launches or increased pricing pressure from its customers; (2) the loss of one or more significant customers, the loss of a significant platform with an automotive customer or the in-sourcing of certain services by the Company’s automotive customers; (3) fluctuations in currency exchange rates, particularly with respect to the value of the U.S. Dollar and the Euro; (4) fluctuations in the price and supply of raw materials including, without limitation, petroleum, copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and components; (5) the inability of the Company’s suppliers to deliver products at the scheduled rate and disruptions arising in connection therewith; (6) the Company’s ability to maintain a competitive technological advantage through innovation and leading product designs; (7) the Company’s ability to integrate successfully its recently completed and future acquisitions; (8) the Company’s ability to attract and retain qualified senior management and to prepare and implement an appropriate succession plan for its critical organizational positions; (9) the Company’s failure to maintain the value of its brands and implementing a sufficient brand protection program; and (10) other risks detailed in the Harman International Industries, Incorporated Annual Report on Form 10-K for the fiscal year ended June 30, 2015 and other filings made by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement except as required by law.

This earnings release also makes reference to the Company’s awarded business or “backlog”, which represents the estimated future lifetime net sales for all customers. The Company’s future awarded business does not represent firm customer orders. The Company reports its awarded business primarily based on written award letters. To validate these awards, the Company uses various assumptions including global vehicle production forecasts, customer take rates for the Company’s products, revisions to product life cycle estimates and the impact of annual price reductions and exchange rates, among other factors. These assumptions are updated and reported externally on an annual basis.

 

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APPENDIX

Connected Car

 

FY 2016 Key Figures		Three Months Ended December 31																Six Months Ended December 31
										Increase (Decrease)																Increase (Decrease)
$ millions (except per share data)		3M FY16				3M FY15				Including Currency Changes				Excluding Currency Changes1				6M FY16				6M FY15				Including Currency Changes				Excluding Currency Changes1
Net sales*			737				722				2	%			9	%			1,492				1,423				5	%			14	%
Gross profit			183				175				4	%			11	%			361				339				6	%			14	%
Percent of net sales			24.8	%			24.2	%											24.2	%			23.8	%
SG&A			99				98				0	%			8	%			189				190				0	%			10	%
Operating income			84				77				10	%			14	%			171				149				15	%			19	%
Percent of net sales			11.4	%			10.6	%											11.5	%			10.5	%
EBITDA			103				94				10	%			14	%			209				184				14	%			19	%
Percent of net sales			14.0	%			13.0	%											14.0	%			12.9	%
Restructuring & non-recurring costs			4				3												4				5
Acquisition-related items			0				0												1				0
Non-GAAP - operational1
Gross profit			184				176				4	%			11	%			363				342				6	%			14	%
Percent of net sales			25.0	%			24.4	%											24.3	%			24.0	%
SG&A			96				96				0	%			8	%			187				188				0	%			9	%
Operating income			88				80				10	%			14	%			176				154				14	%			18	%
Percent of net sales			11.9	%			11.1	%											11.8	%			10.8	%
EBITDA			105				96				9	%			14	%			210				186				13	%			18	%
Percent of net sales			14.3	%			13.3	%											14.1	%			13.1	%

 

1	A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.

Net sales in the second quarter of fiscal 2016 were $737 million, an increase of two percent (nine percent ex-FX) compared to the prior year. The increase in net sales was due to higher take rates, stronger automotive production and the expansion of recently launched platforms.

On a non-GAAP basis in the second quarter of fiscal 2016, gross margin increased 60 basis points to 25.0 percent compared to the prior year primarily due to the impact of higher sales volume leveraging a more efficient fixed production cost base and lower warranty costs. SG&A expenses as a percent of sales declined 30 basis points to 13.0 percent compared to the prior year due to improved operating leverage on higher sales.

Connected Car Highlights

HARMAN launched embedded infotainment solutions on a number of new vehicle models, including the new Genesis luxury brand from Hyundai. The system is now available in Korea on-board the Genesis EQ900, and will be available in Europe and North America on additional vehicles by mid-2016. HARMAN also received follow-on business from Subaru. The Company’s first award with Subaru is expected to launch in fiscal year 2017.

Earlier this month at the Consumer Electronics Show HARMAN unveiled a number of new industry-first solutions for the connected car. The Company announced a strategic partnership with Microsoft to bring new mobile and cloud-based services to the automotive market. The first implementation will include the integration of Office 365 productivity features into HARMAN embedded infotainment systems. HARMAN showcased the solution as part of its new Life-Enhancing Intelligent Vehicle Solution (LIVS) compute platform for end-to-end connected car products and services. The HARMAN LIVS compute platform brings intelligent connectivity features together for the connected car, offering integrated safety, telematics, cyber security and cloud services together with HARMAN’s industry-leading embedded infotainment features such as navigation, multimedia and high performance radio and television tuners.

 

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HARMAN also announced an agreement to acquire TowerSec, a global leader in automotive cyber security specializing in network protection for connected vehicles. TowerSec’s technology will be integrated into HARMAN’s 5+1 security architecture aimed at protecting the critical points of vulnerability in the connected and autonomous car, including hardware, network, and over-the-air (OTA) updates. The transaction is expected to close in the third quarter of fiscal 2016.

Lifestyle Audio

 

FY 2016 Key Figures		Three Months Ended December 31																Six Months Ended December 31
										Increase (Decrease)																Increase (Decrease)
$ millions (except per share data)		3M FY16				3M FY15				Including Currency Changes				Excluding Currency Changes1				6M FY16				6M FY15				Including Currency Changes				Excluding Currency Changes1
Net sales			625				519				20	%			26	%			1,087				925				18	%			24	%
Gross profit			204				179				14	%			18	%			355				310				15	%			20	%
Percent of net sales			32.6	%			34.6	%											32.6	%			33.5	%
SG&A			121				125				(3	%)			1	%			224				206				9	%			15	%
Operating income			83				55				52	%			56	%			131				104				26	%			30	%
Percent of net sales			13.3	%			10.6	%											12.0	%			11.2	%
EBITDA			96				64				51	%			56	%			158				122				29	%			34	%
Percent of net sales			15.4	%			12.3	%											14.5	%			13.2	%
Restructuring & non-recurring costs			1				11												2				13
Acquisition-related items			6				1												13				3
Non-GAAP - operational1
Gross profit			204				167				22	%			28	%			355				299				19	%			25	%
Percent of net sales			32.7	%			32.2	%											32.7	%			32.3	%
SG&A			114				100				14	%			16	%			210				179				17	%			22	%
Operating income			91				67				35	%			46	%			146				120				22	%			29	%
Percent of net sales			14.5	%			12.9	%											13.4	%			12.9	%
EBITDA			99				76				30	%			39	%			162				138				18	%			25	%
Percent of net sales			15.8	%			14.7	%											14.9	%			14.9	%

 

1	A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.

Net sales in the second quarter of fiscal 2016 were $625 million, an increase of 20 percent (26 percent ex-FX) compared to the prior year primarily due to new product introductions and the expansion of global distribution channels in consumer audio, the acquisition of the Bang & Olufsen car audio business, and higher take rates in car audio.

On a non-GAAP basis in the second quarter of fiscal 2016, gross margin improved by 50 basis points to 32.7 percent compared to the prior year, primarily due to improved operating leverage as a result of higher sales volume. SG&A expenses as a percentage of sales decreased 110 basis points to 18.2 percent due to improved operating leverage on higher sales.

Lifestyle Audio Highlights

HARMAN won new car audio business with Audi, BMW, Geely, and Volvo, among others. Notably, HARMAN secured its first customer award for Individual Sound Zones technology. New vehicles launched during the quarter included the Harley Davidson Road Glide (Harman Kardon), the Hyundai Equus (Lexicon), the Lexus GS (Mark Levinson) and the Toyota Prius (JBL).

HARMAN showcased new car audio technologies at CES, including the Summit Car audio system, which leverages next-generation connectivity capabilities. Addressing the growing demand for personalization and adaptability through flexible software solutions, this scalable platform integrates the best of HARMAN’s sound processing and management technologies, such as Quantum Logic Surround Sound^TM, Individual Sound Zones,

 

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and Clarifi^TM, along with new features like Connected Jukebox and Virtual Venues, to create an unprecedented in-car audio experience for drivers. The Infinity Voyager Drive system was recognized for its ability to seamlessly integrate Lifestyle Audio solutions for the home, the car and on the go, winning a “Best of CES” award. With these two unique solutions, HARMAN can deliver scalable car audio solutions for both the premium and entry markets.

HARMAN also entered into a strategic partnership with Under Armour to deliver connected health and fitness solutions to consumers. Among the first products to market will be the co-branded JBL / Under Armour Bluetooth Headphones, which provide instant heart rate data to keep athletes synced with their fitness goals. These first-of-their-kind headphones were recognized with the CES 2016 Editors’ Choice award.

HARMAN’s automotive and consumer audio products won numerous industry accolades. The Company earned a record 13 CES product design & innovation awards across 11 categories and six brands. In addition, HARMAN´s excellence in car audio engineering and product design was recognized by Autobild, which named the Bang & Olufsen Audi Q7 Car Audio solution as “Best Sound System.”

Professional Solutions

 

FY 2016 Key Figures		Three Months Ended December 31																Six Months Ended December 31
										Increase (Decrease)																Increase (Decrease)
$ millions (except per share data)		3M FY16				3M FY15				Including Currency Changes				Excluding Currency Changes1				6M FY16				6M FY15				Including Currency Changes				Excluding Currency Changes1
Net sales*			249				267				(7	%)			(4	%)			496				522				(5	%)			(1	%)
Gross profit			103				111				(7	%)			(5	%)			206				215				(4	%)			(1	%)
Percent of net sales			41.4	%			41.7	%											41.4	%			41.2	%
SG&A			79				76				5	%			8	%			156				156				0	%			4	%
Operating income			24				36				(33	%)			(31	%)			50				59				(16	%)			(13	%)
Percent of net sales			9.6	%			13.4	%											10.0	%			11.3	%
EBITDA			33				43				(24	%)			(22	%)			67				76				(11	%)			(8	%)
Percent of net sales			13.2	%			16.2	%											13.5	%			14.5	%
Restructuring & non-recurring costs			5				(3	)											7				2
Non-GAAP - operational1
Gross profit			103				108				(5	%)			(2	%)			206				212				(3	%)			1	%
Percent of net sales			41.4	%			40.4	%											41.5	%			40.5	%
SG&A			75				75								3	%			149				150				(1	%)			3	%
Operating income			29				33				(14	%)			(12	%)			56				61				(8	%)			(4	%)
Percent of net sales			11.5	%			12.4	%											11.4	%			11.8	%
EBITDA			37				41				(10	%)			(7	%)			73				78				(7	%)			(3	%)
Percent of net sales			14.8	%			15.2	%											14.6	%			14.9	%

 

1	A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.

Net sales in the second quarter of fiscal 2016 were $249 million, a decrease of seven percent (four percent ex-FX) compared to the prior year. The decrease in net sales is primarily due to weakness in emerging markets, particularly in Brazil and Russia.

On a non-GAAP basis in the second quarter of fiscal 2016, gross margin increased 100 basis points to 41.4 percent, driven by lower manufacturing expenses. SG&A expense as a percentage of sales increased 190 basis points to 29.9 percent compared to 28.0 percent in the prior year, driven by lower sales.

 

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Professional Solutions Highlights

The Company’s entertainment and enterprise solutions were selected by leading system integrators and installers around the world. Notable installations included ESPN Studios in Mexico City, the Naval Station in Newport, Rhode Island, USC Marshall School of Business, and the Dubai Opera House. HARMAN’s solutions also powered a wide range of high-profile special events, music festivals and televised award shows, including the New Year’s Eve event in Times Square and the World AIDS Day Concert at Carnegie Hall.

The division launched 12 major new products during the quarter, several of which were recognized with innovation awards from industry experts.

Connected Services

 

FY 2016 Key Figures		Three Months Ended December 31																Six Months Ended December 31
										Increase (Decrease)																Increase (Decrease)
$ millions (except per share data)		3M FY16				3M FY15				Including Currency Changes				Excluding Currency Changes1				6M FY16				6M FY15				Including Currency Changes				Excluding Currency Changes1
Net sales*			170				74				131	%			167	%			343				141				143	%			186	%
Gross profit			56				26				118	%			147	%			114				43				167	%			206	%
Percent of net sales			33.2	%			35.2	%											33.2	%			30.3	%
SG&A			52				11				375	%			603	%			104				22				369	%			500	%
Operating income			5				15				(68	%)			(69	%)			10				21				(51	%)			(49	%)
Percent of net sales			2.9	%			20.4	%											2.9	%			14.6	%
EBITDA			20				16				27	%			24	%			39				22				80	%			88	%
Percent of net sales			11.6	%			21.1	%											11.3	%			15.3	%
Restructuring & non-recurring costs			1				0												1				0
Acquisition-related items			13				0												28				0
Non-GAAP - operational1
Gross profit			56				26				118	%			147	%			114				43				167	%			206	%
Percent of net sales			33.2	%			35.2	%											33.2	%			30.3	%
SG&A			38				11				248	%			414	%			76				22				241	%			336	%
Operating income			19				15				25	%			21	%			38				21				86	%			93	%
Percent of net sales			11.0	%			20.4	%											11.2	%			14.6	%
EBITDA			22				16				43	%			39	%			45				22				108	%			118	%
Percent of net sales			13.0	%			21.1	%											13.1	%			15.3	%

 

1	A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.

Net sales in the second quarter of fiscal 2016 were $170 million compared to $74 million in the prior year, driven primarily by the expansion of the Company’s services portfolio. On a non-GAAP basis, gross margin was 33.2 percent and SG&A expenses as a percentage of sales were 22.2 percent.

Connected Services Highlights

During the quarter, HARMAN secured new awards to provide product development services to new customers, including InterDigital and Reliance Jio. Connected Services also secured follow-on business from Dealertrack, Nielsen, Polycom and Renault, among others. In addition, HARMAN capitalized on its industry-leading OTA software update technology, winning awards with both Honda and Jaguar Land Rover.

Google selected HARMAN as the first systems integration partner for Brillo, Google’s Android-based Internet of Things (IoT) developer platform. Google also selected HARMAN as its first partner for Weave, Google’s communications protocol for IoT devices that enables device setup, phone-to-device-to-cloud communication, and user interaction from mobile devices and the web. Through this collaboration, HARMAN will support device manufacturers to design and develop Brillo and Weave-based devices for a range of IoT applications, including the smart home, consumer, automotive and enterprise segments.

 

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HARMAN showcased its new end-to-end Service Delivery Platform, which allows automakers and service providers to seamlessly introduce and deploy new enterprise cloud and software services to connected vehicles. With our Service Delivery Platform, OEMs will be able to add new software features after vehicle sale, collect vehicle data to predict part failures, forecast for preventative maintenance, and enable OEMs and dealers to address software issues in the field more efficiently.

HARMAN received a number of industry accolades for its products and services. During the quarter, respected advisory firm Zinnov recognized HARMAN as a top global R&D services provider. HARMAN Connected Services was rated in the “Leadership Zone,” the highest category across multiple industry verticals. In addition, several of HARMAN’s aftermarket products won CES Innovation Awards, including the JBL Legend, the Infinity K5, the JBL Smartbase and the JBL Trip.

Other (Corporate)

 

FY 2016 Key Figures – Other		Three Months Ended December 31																Six Months Ended December 31
										Increase (Decrease)																Increase (Decrease)
$ millions (except per share data)		3M FY16				3M FY15				Including Currency Changes				Excluding Currency Changes1				6M FY16				6M FY15				Including Currency Changes				Excluding Currency Changes1
SG&A			37				35				6	%			7	%			71				70				2	%			3	%
Restructuring & non-recurring costs			(1	)			0												(1	)			0
Acquisition-related items			(2	)			1												(1	)			3
Non-GAAP - operational1
SG&A			40				34				16	%			17	%			73				67				9	%			9	%

 

1	A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.

Other (Corporate) SG&A expenses include compensation, benefit and occupancy costs for corporate employees, new technology innovation and expenses associated with the Company’s brand identity campaign. On a non-GAAP basis, Corporate SG&A as a percentage of total Company sales increased 10 basis points to 2.3 percent.

 

8

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HARMAN International Industries, Incorporated

Consolidated Statements of Income

 

(In thousands, except earnings per share data; unaudited)		Three Months Ended December 31,								Six Months Ended December 31,
		2015				2014				2015				2014
Net sales		$	1,772,157			$	1,583,549			$	3,403,045			$	3,012,471
Cost of sales			1,227,065				1,090,383				2,370,555				2,104,673
Gross profit			545,092				493,166				1,032,490				907,798
Selling, general and administrative expenses			385,939				344,409				741,870				643,258
Operating income			159,153				148,757				290,620				264,540
Other expenses:
Interest expense, net			7,666				2,183				15,925				4,860
Foreign exchange losses (gains), net			887				(1,020	)			(958	)			(960	)
Miscellaneous, net			4,363				2,298				8,350				4,638
Income before income taxes			146,237				145,296				267,303				256,002
Income tax expense, net			33,050				29,132				66,600				56,904
Net income			113,187				116,164				200,703				199,098
Net income attributable to non-controlling interest			289				(71	)			707				(110	)
Net income attributable to HARMAN International Industries, Incorporated			112,898				116,235				199,996				199,208
Earnings per share:
Basic		$	1.57			$	1.67			$	2.78			$	2.87
Diluted		$	1.55			$	1.65			$	2.76			$	2.84
Weighted average shares outstanding:
Basic			72,079				69,432				72,060				69,367
Weighted Average Shares Outstanding - Diluted			751				826				489				835
Diluted			72,830				70,258				72,549				70,202

 

9

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HARMAN International Industries, Incorporated

Consolidated Balance Sheets

 

(In thousands; unaudited)		December 31, 2015				June 30, 2015
ASSETS
Current Assets
Cash and cash equivalents		$	437,536			$	649,513
Receivables, net			1,034,609				1,024,139
Inventories			875,420				693,574
Other current assets			530,877				461,366
Total current assets			2,878,442				2,828,592
Property, plant and equipment, net			555,296				552,421
Intangible assets, net			513,829				669,667
Goodwill			1,347,801				1,287,180
Deferred tax assets, long-term, net			105,964				100,032
Other assets			421,446				428,008
Total assets		$	5,822,778			$	5,865,900
LIABILITIES AND EQUITY
Current liabilities
Current portion of long-term debt		$	4,384			$	4,550
Short-term debt			1,336				1,021
Accounts payable			882,386				918,910
Accrued liabilities			924,246				907,024
Accrued warranties			164,747				163,331
Income taxes payable			23,322				76,131
Total current liabilities			2,000,421				2,070,967
Borrowings under revolving credit facility			258,125				283,125
Long-term debt			786,406				797,542
Pension liability			184,908				186,662
Other non-current liabilities			128,460				134,778
Total liabilities			3,358,320				3,473,074
Total HARMAN International Industries, Incorporated shareholders’ equity			2,445,542				2,374,613
Noncontrolling interest			18,916				18,213
Total equity			2,464,458				2,392,826
Total liabilities and equity		$	5,822,778			$	5,865,900

 

10

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HARMAN International Industries, Incorporated

Consolidated Statement of Income

Reconciliation of GAAP to Non-GAAP Results

 

(In thousands except earnings per share data; unaudited)		Three Months Ended December 31, 2015
		GAAP				Adjustments				Non-GAAP - Operational
Net sales		$	1,772,157			$	0			$	1,772,157
Cost of sales			1,227,065				(1,322	)a			1,225,743
Gross profit			545,092				1,322				546,414
Selling, general and administrative expenses			385,939				(25,522	)b			360,417
Operating income			159,153				26,844				185,997
Other expenses:
Interest expense, net			7,666				0				7,666
Foreign exchange losses (gains), net			887				0				887
Miscellaneous, net			4,363				(1,914	)			2,449
Income before income taxes			146,237				28,758				174,995
Income tax expense, net			33,050				7,426	c			40,476
Net income			113,187				21,332				134,519
Net income attributable to non-controlling interest			289								289
Net income attributable to HARMAN International Industries, Incorporated		$	112,898			$	21,332			$	134,230
Earnings per share:
Basic		$	1.57			$	0.30			$	1.86
Diluted		$	1.55			$	0.30			$	1.84
Weighted average shares outstanding:
Basic			72,079								72,079
Diluted			72,830								72,830

 

a)	Restructuring expense in Cost of Sales was $1.3 million for projects to increase manufacturing productivity.

b)

Restructuring expense in SG&A was $3.6 million primarily due to projects to increase productivity in engineering, manufacturing and administrative functions; other non-recurring expense included in SG&A was $4.5 million. Acquisition-related expenses were $17.4 million, including $17.0 million of intangible amortization expenses.

c)	The tax benefits are calculated by multiplying the actual restructuring / non-recurring charge in each individual country by the discrete tax rate within that specific country.

HARMAN has provided a reconciliation of non-GAAP measures in order to provide the users of these consolidated financial statements with a better understanding of its non-recurring charges. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.

 

11

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HARMAN International Industries, Incorporated

Consolidated Statement of Income

Reconciliation of GAAP to Non-GAAP Results

 

(In thousands except earnings per share data; unaudited)		Six Months Ended December 31, 2015
		GAAP				Adjustments				Non-GAAP - Operational
Net sales		$	3,403,045			$	0			$	3,403,045
Cost of sales			2,370,555				(3,001	)			2,367,554
Gross profit			1,032,490				3,001	a			1,035,491
Selling, general and administrative expenses			741,870				(50,296	)b			691,574
Operating income			290,620				53,297				343,917
Other expenses:
Interest expense, net			15,925				0				15,925
Foreign exchange losses (gains), net			(958	)			0				(958	)
Miscellaneous, net			8,350				(3,137	)			5,213
Income before income taxes			267,303				56,434				323,737
Income tax expense, net			66,600				15,186	c			81,786
Net income			200,703				41,248				241,951
Net income attributable to non-controlling interest			707				0				707
Net income attributable to HARMAN International Industries, Incorporated		$	199,996			$	41,248			$	241,244
Earnings per share:
Basic		$	2.78			$	0.57			$	3.35
Diluted		$	2.76			$	0.57			$	3.33
Weighted average shares outstanding:
Basic			72,060								72,060
Diluted			72,549								72,549

 

a)	Restructuring expense in Cost of Sales was $3.0 million for projects to increase manufacturing productivity.

b)

Restructuring expense in SG&A was $3.1 million primarily due to projects to increase productivity in engineering, manufacturing and administrative functions; other non-recurring expense included in SG&A was $6.4 million. Acquisition-related expenses were $40.8 million, including $33.2 million of intangible amortization expenses.

c)	The tax benefits are calculated by multiplying the actual restructuring / non-recurring charge in each individual country by the discrete tax rate within that specific country.

HARMAN has provided a reconciliation of non-GAAP measures in order to provide the users of these consolidated financial statements with a better understanding of its non-recurring charges. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.

 

12

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HARMAN International Industries, Incorporated

Consolidated Statement of Income

Reconciliation of GAAP to Non-GAAP Results

 

(In thousands except earnings per share data; unaudited)		Three Months Ended December 31, 2014
		GAAP				Adjustments				Non-GAAP - Operational
Net sales		$	1,583,549			$	0			$	1,583,549
Cost of sales			1,090,383				14,536	a			1,104,919
Gross profit			493,166				(14,536	)			478,630
Selling, general and administrative expenses			344,409				(28,082	)b			316,327
Operating income			148,757				13,546				162,303
Other expenses:
Interest expense, net			2,183				0				2,183
Foreign exchange losses (gains), net			(1,020	)			0				(1,020	)
Miscellaneous, net			2,298				0				2,298
Income before income taxes			145,296				13,546				158,842
Income tax expense, net			29,132				3,743	c			32,875
Net income			116,164				9,803				125,967
Net income attributable to non-controlling interest			(71	)			0				(71	)
Net income attributable to HARMAN International Industries, Incorporated		$	116,235			$	9,803			$	126,038
Earnings per share:
Basic		$	1.67			$	0.14			$	1.82
Diluted		$	1.65			$	0.14			$	1.79
Weighted average shares outstanding:
Basic			69,432								69,432
Diluted			70,258								70,258

 

a)	Restructuring expense in Cost of Sales was $1.4 million for projects to increase manufacturing productivity offset by a $15.9M accrual reversal for a US Customs / NAFTA related exposure.

b)	Restructuring expense in SG&A was $23.7 million primarily due to projects to increase productivity in engineering, manufacturing and administrative functions; other non-recurring expense included in SG&A was $4.4 million including M&A deal related expenses.

c)	The tax benefits are calculated by multiplying the actual restructuring / non-recurring charge in each individual country by the discrete tax rate within that specific country.

HARMAN has provided a reconciliation of non-GAAP measures in order to provide the users of these consolidated financial statements with a better understanding of its non-recurring charges. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.

 

13

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HARMAN International Industries, Incorporated

Consolidated Statement of Income

Reconciliation of GAAP to Non-GAAP Results

 

(In thousands except earnings per share data; unaudited)		Six Months Ended December 31, 2014
		GAAP				Adjustments				Non-GAAP - Operational
Net sales		$	3,012,471			$	0			$	3,012,471
Cost of sales			2,104,673				11,614	a			2,116,287
Gross profit			907,798				(11,614	)			896,184
Selling, general and administrative expenses			643,258				(36,967	)b			606,291
Operating income			264,540				25,353				289,893
Other expenses:
Interest expense, net			4,860				0				4,860
Foreign exchange losses (gains), net			(960	)			0				(960	)
Miscellaneous, net			4,638				0				4,638
Income before income taxes			256,002				25,353				281,355
Income tax expense, net			56,904				6,629	c			63,533
Net income			199,098				18,724				217,822
Net income attributable to non-controlling interest			(110	)			0				(110	)
Net income attributable to HARMAN International Industries, Incorporated		$	199,208			$	18,724			$	217,932
Earnings per share:
Basic		$	2.87			$	0.27			$	3.14
Diluted		$	2.84			$	0.27			$	3.10
Weighted average shares outstanding:
Basic			69,367								69,367
Diluted			70,202								70,202

 

a)	Restructuring expense in Cost of Sales was $4.3 million for projects to increase manufacturing productivity, offset by a $15.9M accrual reversal for a US Customs / NAFTA related exposure.

b)	Restructuring expense in SG&A was $27.7 million primarily due to projects to increase productivity in engineering and administrative functions. Other non-recurring expense includes in SG&A was $9.3M including acquisition-related expenses.

c)	The tax benefits are calculated by multiplying the actual restructuring / non-recurring charge in each individual country by the statutory tax rate within that specific country.

HARMAN has provided a reconciliation of non-GAAP measures in order to provide the users of these consolidated financial statements with a better understanding of its non-recurring charges. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.

 

14

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HARMAN International Industries, Incorporated

Selected Financial Data

Reconciliation of GAAP to Non-GAAP Results

Foreign Currency Translation Impact

 

(In thousands; unaudited)		Three Months Ended December 31,								Increase / (Decrease)
		2015				2014
Net sales - nominal currency		$	1,772,157			$	1,583,549				12	%
Effects of foreign currency translation (1)							(90,592	)
Net sales - local currency		$	1,772,157			$	1,492,957				19	%
Gross profit - nominal currency		$	545,092			$	493,166				11	%
Effects of foreign currency translation (1)							(23,078	)
Gross profit - local currency		$	545,092			$	470,088				16	%
SG&A - nominal currency		$	(385,939	)		$	(344,409	)			12	%
Effects of foreign currency translation (1)							18,484
SG&A - local currency		$	(385,939	)		$	(325,925	)			18	%
Operating income - nominal currency		$	159,153			$	148,757				7	%
Effects of foreign currency translation (1)							(4,595	)
Operating income - local currency		$	159,153			$	144,162				10	%
Net income attributable to HARMAN International Industries, Incorporated - nominal currency		$	112,898			$	116,235				(3	%)
Effects of foreign currency translation (1)							(3,666	)
Net income attributable to HARMAN International Industries, Incorporated - local currency		$	112,898			$	112,569				0	%

 

(1)	Impact of restating prior year results at current year foreign exchange rates.

HARMAN has provided a reconciliation of the non-GAAP measures in the table above to provide the users of these consolidated financial statements with a better understanding of the Company’s performance. Because changes in currency exchange rates affect its reported financial results, the Company shows the rates of change both including and excluding the effect of these changes in exchange rates. The Company encourages readers of its financial statements to evaluate its financial performance excluding the impact of foreign currency translation. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. This measurement should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.

 

15

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HARMAN International Industries, Incorporated

Selected Financial Data

Reconciliation of Non-GAAP Results

Foreign Currency Translation Impact

 

EXCLUDING restructuring and non-recurring charges (In thousands; unaudited)		Three Months Ended December 31,								Increase / (Decrease)
		2015				2014
Net sales - nominal currency		$	1,772,157			$	1,583,549				12	%
Effects of foreign currency translation (1)							(90,592	)
Net sales - local currency		$	1,772,157			$	1,492,957				19	%
Gross profit - nominal currency		$	546,414			$	478,630				14	%
Effects of foreign currency translation (1)							(23,244	)
Gross profit - local currency		$	546,414			$	455,386				20	%
SG&A - nominal currency		$	(360,417	)		$	(316,327	)			14	%
Effects of foreign currency translation (1)							15,199
SG&A - local currency		$	(360,417	)		$	(301,128	)			20	%
Operating income - nominal currency		$	185,997			$	162,303				15	%
Effects of foreign currency translation (1)							(8,045	)
Operating income - local currency		$	185,997			$	154,258				21	%
Net income attributable to HARMAN International Industries, Incorporated - nominal currency		$	134,230			$	126,038				6	%
Effects of foreign currency translation (1)							(7,117	)
Net income attributable to HARMAN International Industries, Incorporated - local currency		$	134,230			$	118,921				13	%
(1)    Impact of restating prior year results at current year foreign exchange rates.

HARMAN has provided a reconciliation of the non-GAAP measures in the table above to provide the users of the consolidated financial statements with a better understanding of the Company’s performance. Because changes in currency exchange rates affect its reported financial results, the Company shows the rates of change both including and excluding the effect of these changes in exchange rates. The Company encourages readers of its financial statements to evaluate its financial performance excluding the impact of foreign currency translation. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. This measurement should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.

 

16

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HARMAN International Industries, Incorporated

Selected Financial Data

Reconciliation of GAAP to Non-GAAP Results

Foreign Currency Translation Impact

 

(In thousands; unaudited)		Six Months Ended December 31,								Increase / (Decrease)
		2015				2014
Net sales - nominal currency		$	3,403,045			$	3,012,471				13	%
Effects of foreign currency translation (1)							(198,869	)
Net sales - local currency		$	3,403,045			$	2,813,602				21	%
Gross profit - nominal currency		$	1,032,490			$	907,798				14	%
Effects of foreign currency translation (1)							(48,348	)
Gross profit - local currency		$	1,032,490			$	859,450				20	%
SG&A - nominal currency		$	(741,870	)		$	(643,258	)			15	%
Effects of foreign currency translation (1)							37,502
SG&A - local currency		$	(741,870	)		$	(605,756	)			22	%
Operating income - nominal currency		$	290,620			$	264,540				10	%
Effects of foreign currency translation (1)							(10,846	)
Operating income - local currency		$	290,620			$	253,694				15	%
Net income attributable to HARMAN International Industries, Incorporated - nominal currency		$	199,996			$	199,208				0	%
Effects of foreign currency translation (1)							(7,677	)
Net income attributable to HARMAN International Industries, Incorporated - local currency		$	199,996			$	191,531				4	%
(1)    Impact of restating prior year results at current year foreign exchange rates.

HARMAN has provided a reconciliation of the non-GAAP measures in the table above to provide the users of the consolidated financial statements with a better understanding of the Company’s performance. Because changes in currency exchange rates affect its reported financial results, the Company shows the rates of change both including and excluding the effect of these changes in exchange rates. The Company encourages readers of its financial statements to evaluate its financial performance excluding the impact of foreign currency translation. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. This measurement should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.

 

17

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HARMAN International Industries, Incorporated

Selected Financial Data

Reconciliation of GAAP to Non-GAAP Results

Foreign Currency Translation Impact

 

EXCLUDING restructuring and non-recurring charges (In thousands; unaudited)		Six Months Ended December 31,								Increase / (Decrease)
		2015				2014
Net sales - nominal currency		$	3,403,045			$	3,012,471				13	%
Effects of foreign currency translation (1)							(198,869	)
Net sales - local currency		$	3,403,045			$	2,813,602				21	%
Gross profit - nominal currency		$	1,035,491			$	896,184				16	%
Effects of foreign currency translation (1)							(48,930	)
Gross profit - local currency		$	1,035,491			$	847,254				22	%
SG&A - nominal currency		$	(691,574	)		$	(606,291	)			14	%
Effects of foreign currency translation (1)							33,711
SG&A - local currency		$	(691,574	)		$	(572,580	)			21	%
Operating income - nominal currency		$	343,917			$	289,893				19	%
Effects of foreign currency translation (1)							(15,220	)
Operating income - local currency		$	343,917			$	274,673				25	%
Net income attributable to HARMAN International Industries, Incorporated - nominal currency		$	241,244			$	217,932				11	%
Effects of foreign currency translation (1)							(12,051	)
Net income attributable to HARMAN International Industries, Incorporated - local currency		$	241,244			$	205,881				17	%
(1)    Impact of restating prior year results at current year foreign exchange rates.

HARMAN has provided a reconciliation of the non-GAAP measures in the table above to provide the users of the consolidated financial statements with a better understanding of the Company’s performance. Because changes in currency exchange rates affect its reported financial results, the Company shows the rates of change both including and excluding the effect of these changes in exchange rates. The Company encourages readers of its financial statements to evaluate its financial performance excluding the impact of foreign currency translation. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. This measurement should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.

 

18

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Harman International Industries, Incorporated

Reconciliation of GAAP to Non-GAAP Results

 

(In thousands, except earnings per share data; unaudited)		Three Months Ended December 31, 2015												Three Months Ended December 31, 2014
		GAAP				Adjustments				Non-GAAP - Operational				GAAP				Adjustments				Non-GAAP - Operational
HARMAN
Operating income		$	159,153			$	26,844			$	185,997			$	148,757			$	13,546			$	162,303
Depreciation & Amortization			57,997				(18,904	)			39,093				37,120				(1,391	)			35,729
EBITDA			217,150				7,940				225,090				185,877				12,155				198,032
CONNECTED CAR
Operating income			84,266				3,733				87,999				76,699				3,308				80,007
Depreciation & Amortization			19,016				(1,807	)			17,209				17,563				(1,291	)			16,272
EBITDA			103,282				1,926				105,208				94,262				2,017				96,279
LIFESTYLE AUDIO
Operating income			83,016				7,503				90,519				54,776				12,275				67,051
Depreciation & Amortization			13,233				(5,002	)			8,231				9,145				(56	)			9,089
EBITDA			96,249				2,501				98,750				63,921				12,219				76,140
PROFESSIONAL SOLUTIONS
Operating income			23,952				4,632				28,584				35,820				(2,599	)			33,221
Depreciation & Amortization			8,854				(620	)			8,234				7,580				(44	)			7,536
EBITDA			32,806				4,012				36,818				43,400				(2,643	)			40,757
CONNECTED SERVICES
Operating income			4,867				13,855				18,722				15,010				0				15,010
Depreciation & Amortization			14,875				(11,473	)			3,402				501				0				501
EBITDA			19,742				2,382				22,124				15,511				0				15,511

HARMAN has provided a reconciliation of non-GAAP measures in order to provide the users of these consolidated financial statements with a better understanding of its non-recurring charges. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.

 

19

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Harman International Industries, Incorporated

Reconciliation of GAAP to Non-GAAP Results

 

(In thousands, except earnings per share data; unaudited)		Six Months Ended December 31, 2015												Six Months Ended December 31, 2014
		GAAP				Adjustments				Non-GAAP - Operational				GAAP				Adjustments				Non-GAAP - Operational
HARMAN
Operating income		$	290,620			$	53,297			$	343,917			$	264,540			$	25,353			$	289,893
Depreciation & Amortization			114,837				(37,145	)			77,692				74,547				(2,785	)			71,762
EBITDA			405,457				16,152				421,609				339,087				22,568				361,655
CONNECTED CAR
Operating income			171,485				4,779				176,264				149,346				4,684				154,030
Depreciation & Amortization			37,419				(3,643	)			33,776				34,522				(2,662	)			31,860
EBITDA			208,904				1,136				210,040				183,868				2,022				185,890
LIFESTYLE AUDIO
Operating income			130,709				15,047				145,756				103,849				15,793				119,642
Depreciation & Amortization			26,820				(10,130	)			16,690				18,102				(56	)			18,046
EBITDA			157,529				4,917				162,446				121,951				15,737				137,688
PROFESSIONAL SOLUTIONS
Operating income			49,637				6,816				56,453				59,085				2,251				61,336
Depreciation & Amortization			17,359				(1,258	)			16,101				16,521				(67	)			16,454
EBITDA			66,996				5,558				72,554				75,606				2,184				77,790
CONNECTED SERVICES
Operating income			10,058				28,329				38,387				20,609				0				20,609
Depreciation & Amortization			28,755				(22,113	)			6,642				1,001				0				1,001
EBITDA			38,813				6,216				45,029				21,610				0				21,610

HARMAN has provided a reconciliation of non-GAAP measures in order to provide the users of these consolidated financial statements with a better understanding of its non-recurring charges. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.

 

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Harman International Industries, Incorporated

Intercompany Revenue Reconciliation, 3 Months Ended December 31, 2015

 

Three Months Ended December 31, 2015 (In thousands; unaudited)		Connected Car				Lifestyle Audio				Professional Solutions				Connected Services				Eliminations				HARMAN
Net Trade Sales		$	736,969			$	624,421			$	248,275			$	162,492			$	0			$	1,772,157
Intercompany Sales			0				725				596				7,234				(8,555	)
Net Sales			736,969				625,146				248,871				169,726				(8,555	)			1,772,157

Harman International Industries, Incorporated

Intercompany Revenue Reconciliation, 6 Months Ended December 31, 2015

 

Six Months Ended December 31, 2015 (In thousands; unaudited)		Connected Car				Lifestyle Audio				Professional Solutions				Connected Services				Eliminations				HARMAN
Net Trade Sales		$	1,492,452			$	1,086,174			$	494,608			$	329,772			$	0			$	3,403,045
Intercompany Sales			0				1,255				1,369				13,654				(16,278	)
Net Sales			1,492,452				1,087,429				495,977				343,426				(16,278	)			3,403,045

HARMAN International Industries, Incorporated

Total Liquidity Reconciliation

 

Total Company Liquidity $ millions		December 31, 2015
Cash & cash equivalents		$	438
Short-term investments
Available credit under Revolving Credit Facility			937
Total Liquidity		$	1,375

 

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