Discontinued Operations

12 Months Ended

Jun. 30, 2012

Discontinued Operations

Note 3 – Discontinued Operations

On April 9, 2010, we and our wholly-owned subsidiary, Harman Holding GmbH & Co. KG (“Harman KG”) entered into a share purchase agreement (the “Purchase Agreement”) to sell all of the issued and outstanding shares of QNX Software Systems Co., QNX Software Systems (Wavemakers), Inc. and QNX Software Systems, Inc. (collectively, the “QNX Entities”) for $200 million. The sale closed on June 1, 2010. In connection with this transaction, we recognized a gain of $152.7 million ($114.2 million, net of income taxes) in our Consolidated Statement of Income for the fiscal year ended June 30, 2010 which is included in income from discontinued operations, net of income taxes. The sale price was subject to a working capital adjustment of $0.1 million, which is also included in the gain. The results of operations for the QNX Entities have been reclassified to discontinued operations in all periods presented. The tax expense within discontinued operations for fiscal year 2010 includes an expense of $35.4 million relating to tax on previously permanently reinvested earnings. Following the sale of the QNX Entities, we intended to repatriate a portion of these earnings and therefore had recorded a deferred income tax liability as of June 30, 2010 as a result of our planned repatriation to the U.S. of the proceeds resulting from such sale. During the fiscal year ended June 30, 2012, we repatriated these earnings previously provided for.

The operations of the QNX Entities have been segregated from continuing operations and are reflected as discontinued operations in the Consolidated Statements of Income as follows:

	Year Ended June  30, 2010
Net sales	$	35,309
Gain on sale of discontinued operations, net of income taxes		114,197
Income from discontinued operations, net of income taxes		9,394
Net income from discontinued operations		123,591
Diluted earnings per share from discontinued operations		1.75