10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2012

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from              to             

Commission File Number: 1-9764

Harman International Industries, Incorporated

(Exact name of registrant as specified in its charter)

Delaware	11-2534306
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
400 Atlantic Street, Suite 1500 Stamford, CT	06901
(Address of principal executive offices)	(Zip code)

(203) 328-3500

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    x  Yes    ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

(Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨  Yes    x  No

As of January 29, 2013, 67,935,482 shares of common stock, par value $.01, were outstanding.

HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED AND SUBSIDIARIES

Form 10-Q

December 31, 2012

Table of Contents

		Page
	Forward-Looking Statements		i
Part I	FINANCIAL INFORMATION
Item 1.	Financial Statements		1
	Condensed Consolidated Financial Statements
	Condensed Consolidated Balance Sheets (Unaudited) December 31, 2012 and June 30, 2012		1
	Condensed Consolidated Statements of Income (Unaudited) Three and Six months ended December 31, 2012 and 2011		2
	Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three and Six months ended December 31, 2012 and 2011		3
	Condensed Consolidated Statements of Cash Flows (Unaudited) Six months ended December 31, 2012 and 2011		4
	Notes to the Condensed Consolidated Financial Statements (Unaudited)		5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		39
Item 4.	Controls and Procedures		40
Part II	OTHER INFORMATION
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		41
Item 6.	Exhibits		42
	Signatures		43

The page numbers in this Table of Contents reflect actual page numbers, not EDGAR page tag numbers.

References to “Harman”, the “Company”, “we”, “us”, and “our” in this Form 10-Q refer to Harman International Industries, Incorporated and its subsidiaries unless the context requires otherwise.

Harman, the Harman logo, and the Harman products and brand names referred to herein are either the trademarks or the registered trademarks of Harman. All other trademarks are the property of their respective owners.

Forward-Looking Statements

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You should not place undue reliance on these statements. Forward-looking statements include information concerning possible or assumed future results of operations, cash flows, capital expenditures, the outcome of pending legal proceedings and claims, goals and objectives for future operations, including descriptions of our business strategies and purchase commitments from customers. These statements are typically identified by words such as “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “should,” “will” and similar expressions. We base these statements on particular assumptions that we have made in light of our industry experience, as well as our perception of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. As you read and consider the information in this report, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions. In light of these risks and uncertainties, we cannot assure you that the results and events contemplated by the forward-looking statements contained in, or incorporated by reference into, this report will in fact transpire.

You should carefully consider the risks described below and the other information in this report because they identify important factors that could cause actual results to differ materially from those predicted in any such forward-looking statements. Our operating results may fluctuate significantly and may not meet our expectations or those of securities analysts or investors. The price of our stock would likely decline if this occurs. Factors that may cause fluctuations in our operating results include, but are not limited to, the following:

• our ability to maintain profitability in our infotainment segment if there are delays in our product launches which may give rise to significant penalties and increased engineering expense;

• the loss of one or more significant customers, or the loss of a significant platform with an automotive customer;

• fluctuations in currency exchange rates, particularly with respect to the value of the U.S. Dollar and the Euro;

• our ability to successfully implement our global footprint initiative, including achieving cost reductions and other benefits in connection with the restructuring of our manufacturing, engineering, procurement and administrative organizations;

• 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;

• the inability of our suppliers to deliver products at the scheduled rate and disruptions arising in connection therewith;

• our ability to attract and retain qualified senior management and to prepare and implement an appropriate succession plan for our critical organizational positions;

• our failure to implement and maintain a comprehensive disaster recovery program;

• our failure to comply with governmental rules and regulations, including the Foreign Corrupt Practices Act and U.S. export control laws, and the cost of complying with such laws;

• our ability to maintain a competitive technological advantage through innovation and leading product designs; and

• our failure to maintain the value of our brands and implementing a sufficient brand protection program.

Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual results of operations and could cause actual results to differ materially from those expressed in the forward-looking statements. As a result, the foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this and other reports we file with the Securities and Exchange Commission. For additional information regarding certain factors that may cause our actual results to differ from those expected or anticipated, see the information under the caption “Risk Factors” which is located in Item 1A of Part I of our Annual Report on Form 10-K for the fiscal year ended June 30, 2012. We undertake no obligation to publicly update or revise any forward-looking statement (except as required by law). This report also makes reference to our awarded business, which represents the estimated future lifetime net sales for all customers. Our future awarded business does not represent firm customer orders. We calculate our awarded business using various assumptions including global vehicle production forecasts, customer take rates for our products, revisions to product life cycle estimates and the impact of annual price reductions, among other factors. These assumptions are updated on an annual basis. We update our estimates quarterly by adding the value of new awards received and subtracting sales recorded during the quarter.

i

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)	December 31, 2012			June 30, 2012
Assets
Current assets
Cash and cash equivalents	$	526,251		$	617,356
Short-term investments		81,166			203,014
Receivables, net		623,721			582,835
Inventories		547,218			427,597
Other current assets		282,669			285,443
Total current assets		2,061,025			2,116,245
Property, plant and equipment, net		421,948			430,234
Goodwill		180,757			180,811
Deferred tax assets, long-term, net		280,648			308,768
Other assets		160,437			133,406
Total assets	$	3,104,815		$	3,169,464
Liabilities and Shareholders’ Equity
Current liabilities
Current portion of long-term debt	$	30,400		$	395,409
Short-term debt		197			227
Accounts payable		477,714			505,694
Accrued liabilities		336,711			368,002
Accrued warranties		110,257			97,289
Income taxes payable		11,968			15,279
Total current liabilities		967,247			1,381,900
Long-term debt		270,047			0
Pension liability		171,078			168,099
Other non-current liabilities		77,146			89,854
Total liabilities		1,485,518			1,639,853
Commitments and contingencies		—			—
Preferred stock		0			0
Common stock		968			961
Additional paid-in capital		959,065			943,971
Accumulated other comprehensive income		28,442			29,709
Retained earnings		1,807,736			1,726,486
Less: Common stock held in treasury		(1,176,914	)		(1,171,516	)
Total shareholders’ equity		1,619,297			1,529,611
Total liabilities and shareholders’ equity	$	3,104,815		$	3,169,464

See accompanying Notes to the Condensed Consolidated Financial Statements.

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HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except earnings per share data)	Three Months Ended December 31,					Six Months Ended December 31,
	2012		2011			2012		2011
Net sales	$	1,055,642	$	1,127,029		$	2,053,835	$	2,177,632
Cost of sales		783,849		821,490			1,503,795		1,584,451
Gross profit		271,793		305,539			550,040		593,181
Selling, general and administrative expenses		203,411		210,174			402,567		423,926
Sale of intellectual property		0		(13	)		0		(301	)
Operating income		68,382		95,378			147,473		169,556
Other expenses:
Interest expense, net		3,687		4,059			9,682		9,335
Foreign exchange losses, net		988		7,373			1,139		11,597
Miscellaneous, net		1,430		1,955			2,609		3,399
Income before income taxes		62,277		81,991			134,043		145,225
Income tax expense, net		14,788		22,736			31,999		37,603
Net income	$	47,489	$	59,255		$	102,044	$	107,622
Earnings per share:
Basic	$	0.69	$	0.83		$	1.48	$	1.51
Diluted	$	0.68	$	0.82		$	1.47	$	1.49
Weighted average shares outstanding:
Basic		69,009		71,463			68,846		71,265
Diluted		69,734		72,299			69,582		72,085

See accompanying Notes to the Condensed Consolidated Financial Statements.

2

HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Net income	$	47,489		$	59,255		$	102,044		$	107,622
Other comprehensive income (loss):
Foreign currency translation		15,264			(26,252	)		24,470			(110,394	)
Unrealized (losses) gains on hedging derivatives		(19,367	)		26,272			(38,678	)		71,785
Pension liability adjustment		1,172			(139	)		2,082			(484	)
Unrealized gains (losses) on available for sale securities		242			1			351			(177	)
Other comprehensive income before taxes		(2,689	)		(118	)		(11,775	)		(39,270	)
Income taxes		4,871			(8,295	)		10,508			(19,946	)
Other comprehensive income (loss), net of taxes		2,182			(8,413	)		(1,267	)		(59,216	)
Comprehensive income, net of taxes	$	49,671		$	50,842		$	100,777		$	48,406

See accompanying Notes to the Condensed Consolidated Financial Statements

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HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended December 31,
(In thousands)	2012			2011
Cash flows from operating activities:
Net income	$	102,044		$	107,622
Adjustments to reconcile net income to net cash (used in) provided by operating activities, net of acquired businesses:
Depreciation and amortization		58,843			60,192
Deferred income taxes		20,487			53,923
(Gain) loss on disposition of assets		(1,698	)		851
Share-based compensation		10,227			7,921
Non-cash interest expense		7,405			9,703
Non-cash reduction in contingent liabilities		(12,500	)		0
Changes in operating assets and liabilities, net of acquired businesses:
Decrease (increase) in:
Receivables, net		(30,073	)		(93,782	)
Inventories, net		(110,128	)		(97,241	)
Other current assets		(17,202	)		(59,531	)
Increase (decrease) in:
Accounts payable		(36,116	)		35,877
Accrued warranties		9,125			(9,160	)
Accrued other liabilities		(36,475	)		19,569
Income taxes payable		(3,776	)		(556	)
Other operating activities		(12,976	)		(14,575	)
Net cash (used in) provided by operating activities		(52,813	)		20,813
Cash flows from investing activities:
Purchases of short-term investments		(60,830	)		(302,181	)
Maturities of short-term investments		182,302			395,667
Acquisitions, net of cash received		(8,836	)		(70,535	)
Proceeds from asset dispositions		3,668			2,255
Capital expenditures		(42,608	)		(52,945	)
Other items, net		0			640
Net cash provided by (used in) investing activities		73,696			(27,099	)
Cash flows from financing activities:
Net decrease in short-term borrowings		(26	)		(1,346	)
Borrowings under new credit agreement		300,000			0
Repayment of long-term debt		(400,000	)		0
Debt issuance costs		(6,094	)		0
Cash dividends to shareholders		(20,522	)		(10,504	)
Repurchase of common stock		(5,398	)		0
Share-based payment arrangements		7,480			(26	)
Other items, net		(1,246	)		(9,268	)
Net cash used in financing activities		(125,806	)		(21,144	)
Effect of exchange rate changes on cash		13,818			(31,659	)
Net decrease in cash and cash equivalents		(91,105	)		(59,089	)
Cash and cash equivalents at beginning of period		617,356			603,892
Cash and cash equivalents at end of period	$	526,251		$	544,803
Supplemental disclosure of cash flow information:
Interest paid, net	$	4,198		$	1,428
Income taxes paid, net	$	14,122		$	6,015
Non-cash investing activities:
Accrued and contingent acquisition-related liabilities	$	288		$	28,017

See accompanying Notes to the Condensed Consolidated Financial Statements

4

HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(In thousands, except per-share data and where otherwise noted)

(Unaudited)

Note 1 – Basis of Presentation

Basis of Presentation

References to “we,” “us,” “our,” the “company” and “Harman” refer to Harman International Industries, Incorporated and its consolidated subsidiaries unless the context specifically requires otherwise.

Our unaudited, condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited condensed consolidated financial statements have been prepared in accordance with the accounting policies described in our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2012 (our “2012 Annual Report”) and do not include all information and footnote disclosures included in our audited financial statements. In the opinion of management, the accompanying unaudited, condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments and accruals, necessary to present fairly, in all material respects, the consolidated financial condition, results of operations and cash flows for the periods presented. Operating results for the three and six months ended December 31, 2012 are not necessarily indicative of the results that may be expected for the full fiscal year ending June 30, 2013 due to seasonal, economic and other factors. Where necessary, information for prior periods has been reclassified to conform to the consolidated financial statement presentation in the current fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes included in our 2012 Annual Report.

The methods, estimates and judgments we use in applying our accounting policies, in conformity with generally accepted accounting principles in the United States (“GAAP”), have a significant impact on the results we report in our financial statements. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. The estimates affect the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions.

Note 2 – New Accounting Standards

Recently Adopted Accounting Standards

Comprehensive Income: In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income” (“ASU 2011-05”). The new guidance requires that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both cases, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. If presented in a single continuous statement, the entity is required to present the components of net income and total net income, the components of other comprehensive income and a total for other comprehensive income, along with the total of comprehensive income in that statement. If presented in the two-statement approach, the first statement, which is the statement of net income, should present components of net income and total net income followed consecutively by a second statement, which is the statement of other comprehensive income, that should present the components of other comprehensive income, total other comprehensive income and a total amount for comprehensive income. Regardless of the method used, the entity is required to present on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement where the components of net income and the components of other comprehensive income are presented. In December 2011, the FASB issued ASU 2011-12, “Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05” (“ASU 2011-12”). ASU 2011-12 temporarily deferred the requirement to present on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement where the components of net income and the components of other comprehensive income are presented. The guidance in ASU 2011-05, as amended, is effective retrospectively for fiscal years, and interim periods within those fiscal years beginning after December 15, 2011. We adopted the provisions of this new guidance on July 1, 2012. The adoption of the new provisions did not have a material impact on our financial condition or results of operations.

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Recently Issued Accounting Standards

Balance Sheet: In December 2011, the FASB issued ASU 2011-11, “Balance Sheet (Topic 210), Disclosures about Offsetting Assets and Liabilities,” which requires companies to disclose information about financial instruments that have been offset and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial condition. Companies will be required to provide both net (offset amounts) and gross information in the notes to the financial statements for relevant assets and liabilities that are offset. The new guidance is effective retrospectively for fiscal years and interim periods within those fiscal years beginning on or after January 1, 2013. We will adopt the provisions of this new guidance on July 1, 2013. We do not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations.

Note 3 – Allowance for Doubtful Accounts

We reserve an estimated amount for accounts receivable that may not be collected. Methodologies for estimating the allowance for doubtful accounts are based primarily on specific identification of uncollectible accounts. Historical collection rates and customer credit worthiness are considered in determining specific reserves. At December 31, 2012 and June 30, 2012, we had $5.5 million and $6.0 million, respectively, reserved for possible uncollectible accounts receivable.

Note 4 – Inventories

Inventories, net consist of the following:

	December 31, 2012		June 30, 2012
Finished goods	$	227,226	$	161,124
Work in process		75,814		69,577
Raw materials		244,178		196,896
Inventories	$	547,218	$	427,597

At December 31, 2012 and June 30, 2012, our inventory reserves were $57.4 million and $61.9 million, respectively.

Note 5 – Property, Plant and Equipment, net

Property, plant and equipment, net consist of the following:

	Estimated Useful Lives (in Years)		December 31, 2012			June 30, 2012
Land			$	7,572		$	8,046
Buildings and improvements		1-50		251,358			254,563
Machinery and equipment		3-20		1,052,058			1,002,539
Furniture and fixtures		3-10		26,581			29,423
Property, plant and equipment, gross				1,337,569			1,294,571
Less accumulated depreciation and amortization				(915,621	)		(864,337	)
Property, plant and equipment, net			$	421,948		$	430,234

Depreciation expense for the three months ended December 31, 2012 and 2011 was $27.7 million and $25.6 million, respectively, and was $54.2 million in each of the six month periods ended December 31, 2012 and 2011.

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Note 6 – Accrued Warranties

Details of our accrued warranties are as follows:

	Six Months Ended December 31,
	2012			2011
Accrued warranties, June 30	$	97,289		$	122,396
Warranty expense		33,184			28,437
Warranty payments (cash or in-kind)		(24,286	)		(25,033	)
Other(1)		4,070			(12,564	)
Accrued warranties, December 31	$	110,257		$	113,236

⁽¹⁾  Other primarily represents foreign currency translation.

Note 7 – Earnings Per Share

We apply the two-class method when computing earnings per share, which requires that net income per share for each class of shares entitled to dividends be calculated assuming all of our net income is distributed as dividends to these shareholders based on their contractual rights.

The following table presents the calculation of basic and diluted earnings per share of common stock outstanding:

	Three Months Ended December 31,
	2012				2011
	Basic		Diluted		Basic		Diluted
Numerator for Basic and Diluted Earnings per Share:
Net income	$	47,489	$	47,489	$	59,255	$	59,255
Denominator for Basic and Diluted Earnings per Share:
Weighted average shares outstanding		69,009		69,009		71,463		71,463
Employee stock options		0		725		0		836
Total weighted average shares outstanding		69,009		69,734		71,463		72,299
Earnings per Share:
Earnings per share	$	0.69	$	0.68	$	0.83	$	0.82
	Six Months Ended December 31,
	2012				2011
	Basic		Diluted		Basic		Diluted
Numerator for Basic and Diluted Earnings per Share:
Net income	$	102,044	$	102,044	$	107,622	$	107,622
Denominator for Basic and Diluted Earnings per Share:
Weighted average shares outstanding		68,846		68,846		71,265		71,265
Employee stock options		0		736		0		820
Total weighted average shares outstanding		68,846		69,582		71,265		72,085
Earnings per Share:
Earnings per share	$	1.48	$	1.47	$	1.51	$	1.49

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities, as defined under GAAP, and are included in the computation of earnings per share pursuant to the two-class method.

Certain options were outstanding and not included in the computation of diluted net earnings per share because the assumed exercise of these options would have been antidilutive. Options to purchase 1,642,862 and 1,767,021 shares of our common stock were

7

outstanding for the three months ended December 31, 2012 and 2011, respectively, and were excluded from the computation of diluted earnings per share because they would have been antidilutive. In addition, 0 and 8,274 restricted shares and restricted stock units were outstanding for the three months ended December 31, 2012 and 2011, respectively, and were excluded from the computation of diluted earnings per share as they also would have been antidilutive.

Options to purchase 1,542,575 and 1,699,565 shares of our common stock were outstanding for the six months ended December 31, 2012 and 2011, respectively, and excluded from the computation of diluted earnings per share because they would have been antidilutive. In addition, 59,352 and 4,341 restricted shares and restricted stock units were outstanding during the six months ended December 31, 2012 and 2011, respectively, and were excluded from the computation of diluted earnings per share as they also would have been antidilutive.

In October 2012, we repaid our $400 million of 1.25 percent convertible senior notes due October 15, 2012 (the “Convertible Senior Notes”), and therefore the Convertible Senior Notes had no impact on our calculation of earnings per share for the three and six months ended December 31, 2012. For the three and six months ended December 31, 2011, the conversion terms of the Convertible Senior Notes would have affected the calculation of diluted earnings per share if the price of our common stock exceeded the conversion price of the Convertible Senior Notes. The initial conversion price of the Convertible Senior Notes was approximately $104 per share, subject to adjustment in specified circumstances as described in the indenture governing the Convertible Senior Notes, as amended (the “Indenture”). Upon conversion, a holder of the Convertible Senior Notes would have received an amount per $1,000 principal amount of Convertible Senior Notes in cash equal to the lesser of $1,000 or the conversion value of the Convertible Senior Notes, determined in the manner set forth in the Indenture. If the conversion value exceeded $1,000, we would have delivered $1,000 in cash and, at our option, cash or common stock or a combination of cash and common stock for the conversion price in excess of $1,000. The conversion option was indexed to our common stock and was therefore classified as equity in our Condensed Consolidated Balance Sheet at June 30, 2012. The conversion option would not have resulted in an adjustment to net income in calculating diluted earnings per share. The dilutive effect of the conversion option was calculated using the treasury stock method. Therefore, conversion settlement shares would have been included in diluted shares outstanding if the price of our common stock exceeded the conversion price of the Convertible Senior Notes. Refer to Note 9 – Debt for more information.

Note 8 – Goodwill

During the three and six months ended December 31, 2012, we recorded $0.6 million of goodwill in our Infotainment segment associated with the acquisition of Interchain Solution Private Limited (“Interchain”). During the three and six months ended December 31, 2011, we recorded $0 and $79.8 million, respectively of goodwill in our Lifestyle segment, associated with the acquisition of Harman Embedded Audio, LLC (formerly known as MWM Acoustics LLC) and certain related entities (“MWM Acoustics”). Refer to Note 22 – Acquisitions for more information.

We did not recognize any impairment charges in our Condensed Consolidated Statements of Income in the three and six months ended December 31, 2012 and 2011.

Note 9 – Debt

Short Term Borrowings

At December 31, 2012 and June 30, 2012, we had $0.2 million of short-term borrowings outstanding in each period. At December 31, 2012 and June 30, 2012, we maintained lines of credit of $27.8 million and $17.8 million in the aggregate, respectively, in Hungary, China, the U.S., Austria and Brazil.

We classify our debt based on the contractual maturity dates of the underlying debt instruments. We defer costs associated with debt issuance over the applicable term of the debt. These costs are amortized to Interest expense, net in our Condensed Consolidated Statements of Income.

New Credit Agreement

On October 10, 2012, we and Harman Holding GmbH & Co. KG (“Harman KG”), entered into a Multi-Currency Credit Agreement (the “New Credit Agreement”) with a group of banks. The New Credit Agreement provides for (i) a five-year unsecured multi-currency revolving credit facility (the “New Revolving Credit Facility”) in the amount of $750 million (the “Aggregate Revolving Commitment”) with availability in currencies other than the United States Dollar of up to $550 million and (ii) a five-year unsecured United States Dollar term loan facility (the “Term Facility” and collectively with the New Revolving Credit Facility, the “Facilities”) in the amount of $300 million (the “Aggregate Term Commitment” and collectively with the Aggregate Revolving Commitment, the “Aggregate Commitment”). Up to $60 million of the Aggregate Revolving Commitment will be available for letters of credit. Subject to certain conditions set forth in the New Credit Agreement, the Aggregate Commitment may be increased by up to $250 million. We may select interest rates for the Facilities equal to (i) LIBOR plus an applicable margin or (ii) a base rate plus an applicable margin, which in each case is determined based on our credit rating. We are obligated to pay a facility fee on the Aggregate Revolving

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Commitment, whether drawn or undrawn, which is determined based on our credit rating. Any proceeds from borrowings under the Facilities may be used for general corporate purposes.

The New Credit Agreement includes certain financial condition covenants, including covenants that do not permit us to allow (i) our ratio of consolidated EBITDA to consolidated cash interest expense to be less than 3.5:1.0 or (ii) our ratio of consolidated total debt to consolidated EBITDA to exceed 3.5:1.0, or following certain acquisitions, 4.0:1.0, each calculated as of the end of the applicable fiscal quarter on a rolling four-quarter basis. The terms “consolidated EBITDA,” “consolidated cash interest expense,” and “consolidated total debt” are defined in the New Credit Agreement.

The New Credit Agreement also contains certain negative covenants that limit, among other things, our ability to pay dividends, permit certain of our subsidiaries to incur debt, incur liens, make fundamental changes, sell assets, undertake transactions with affiliates and undertake sale and leaseback transactions. The Facilities are subject to acceleration upon certain specified events of default, including failure to make timely payments, breaches of representations or covenants, or a change of control, as such term is defined in the New Credit Agreement.

On October 10, 2012, in connection with the execution of the New Credit Agreement, we, Harman KG, and certain of our subsidiaries, entered into a guarantee agreement (the “New Guarantee Agreement”), that provides, among other things, that the obligations under the New Credit Agreement are guaranteed by us and each of the subsidiary guarantors named therein.

Upon the signing of the New Credit Agreement, we voluntarily terminated the Multi-Currency Credit Agreement, entered into on December 1, 2010, as amended on December 15, 2011 and July 2, 2012 (“the Credit Agreement”), as well as the guarantee and collateral agreement entered into in connection with the Credit Agreement. There were no outstanding borrowings under the Credit Agreement as of October 10, 2012, and no early termination penalties were incurred by us as a result of the termination of the Credit Agreement and all of the approximately $8.7 million of letters of credit that were previously outstanding under the Credit Agreement were deemed to be issued and outstanding under the New Credit Agreement.

On October 10, 2012, we borrowed $300 million under the Term Facility to finance, in part, the repayment of all the outstanding $400 million principal amount of Convertible Senior Notes and accrued and unpaid interest thereon. See “Convertible Senior Notes” below for additional information.

At December 31, 2012, there were no outstanding borrowings and approximately $8.7 million of outstanding letters of credit under the New Revolving Credit Facility and $300 million of outstanding borrowings under the Term Facility, of which $30 million is included in our Condensed Consolidated Balance Sheet as Current portion of long-term debt and $270.0 million is classified as Long-term debt. At December 31, 2012, unused available credit under the New Revolving Credit Facility was $741.3 million. In connection with the New Credit Agreement, we incurred $6.1 million of fees and other expenses which are included within Other assets in our Condensed Consolidated Balance Sheet at December 31, 2012. These costs will be amortized over the term of the New Credit Agreement to Interest expense, net in our Condensed Consolidated Statement of Income on a straight-line basis. In addition, during the three and six months ended December 31, 2012, we wrote off $1.1 million of debt issuance costs to Interest expense, net, associated with the Credit Agreement, which represented the portion of these costs that were attributed to the Credit Agreement.

At December 31, 2012, long-term debt maturing in each of the next five fiscal years and thereafter is as follows:

2013	$	15,000
2014		30,000
2015		35,625
2016		43,125
2017		135,000
Thereafter		41,250
Total	$	300,000

If we do not meet the forecast in our budgets, we could violate our debt covenants and, absent a waiver from our lenders or an amendment to the New Credit Agreement, we could be in default under the New Credit Agreement. As a result, our debt under the New Credit Agreement could become due, which would have a material adverse effect on our financial condition and results of operations. As of December 31, 2012, we were in compliance with all the financial covenants of the New Credit Agreement.

Convertible Senior Notes

At December 31, 2012 and June 30, 2012, we had $0 and $400 million of Convertible Senior Notes outstanding , which were originally issued on October 23, 2007 (the “Issuance Date”) and were due on October 15, 2012. The Convertible Senior Notes were issued at par and we paid interest at a rate of 1.25 percent per annum on a semiannual basis. On October 15, 2012, the maturity date for the Convertible Senior Notes, we repaid all of the outstanding $400 million principal amount of Convertible Senior Notes and

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accrued and unpaid interest thereon held by affiliates of Kohlberg Kravis Roberts & Co. (“KKR”) and Goldman Sachs Capital Partners (“GSCP”) and other investors. The repayment of principal was funded by $300 million of borrowings under the Term Facility and $100 million of cash on hand.

Total interest expense related to the Convertible Senior Notes for the three months ended December 31, 2012 and 2011 includes $0.2 million and $1.3 million, respectively, of contractual cash interest expense, an additional $0.7 million and $4.2 million of noncash interest expense, respectively, related to the amortization of the discount and $0.1 million and $0.2 million, respectively, related to the amortization of debt issuance costs. Total interest expense related to the Convertible Senior Notes for the six months ended December 31, 2012 and 2011 includes $1.5 million and $2.5 million, respectively, of contractual cash interest expense, an additional $5.0 million and $8.4 million of noncash interest expense, respectively, related to the amortization of the discount, and $0.3 million and $0.4 million, respectively, related to the amortization of debt issuance costs.

Registration Rights Agreement

On October 23, 2007, we entered into a registration rights agreement (the “Registration Rights Agreement”) requiring us to register the Convertible Senior Notes and the shares contingently issuable upon conversion of the Convertible Senior Notes. On October 23, 2008, we filed an automatically effective registration statement with the SEC to meet this requirement. We were required to keep the registration statement effective until the earlier of (a) such time as the Convertible Senior Notes and the shares contingently issuable under the Convertible Senior Notes (1) are sold under an effective registration statement or pursuant to Rule 144 of the Securities Act of 1933, (2) are freely transferable under Rule 144 more than one year following October 23, 2007, or (3) cease to be outstanding, and (b) five years and three months following October 23, 2007.

On October 21, 2011, we entered into an Amendment to the Registration Rights Agreement with the holders of the Convertible Senior Notes, which provides for the postponement of our obligation to file a new registration statement covering the Convertible Senior Notes until such time as one of the holders of the Convertible Senior Notes demands that we file a registration statement. Upon the receipt of such a demand, we would have seven business days to file a registration statement with the SEC covering the Convertible Senior Notes. On October 15, 2012, the Registration Rights Agreement was terminated in accordance with its terms upon the repayment of all outstanding principal and interest related to the Convertible Senior Notes.

Note 10 – Income Taxes

Our provision for income taxes is based on an estimated annual tax rate for the year applied to federal, state and foreign income. Income tax expense for the three months ended December 31, 2012 and 2011 was $14.8 million and $22.7 million, respectively. The effective tax rate for the three months ended December 31, 2012 and 2011 was 23.7 percent and 27.7 percent, respectively. The change in the effective tax rate for the three months ended December 31, 2012 compared to same period in the prior year was primarily due to the tax effect of foreign exchange gains recorded in the same period in the prior year, foreign exchange losses recorded in the three months ended December 31, 2012 and the mix of income in certain key foreign jurisdictions.

Income tax expense for the six months ended December 31, 2012 and 2011 was $32.0 million and $37.6 million, respectively. The effective tax rate for the six months ended December 31, 2012 and 2011 was 23.9 percent and 25.9 percent, respectively. The change in the effective tax rate for the six months ended December 31, 2012 compared to same period in the prior year was primarily due to the tax effect of foreign exchange gains and losses, as noted above, and the mix of income in certain key foreign jurisdictions.

As of December 31, 2012, unrecognized tax benefits and the related interest were $35.8 million and $1.7 million, respectively; all but $1.7 million would affect the tax rate if recognized. During the three and six months ended December 31, 2012 we recorded tax reserves on uncertain tax positions in the amount of $0.7 million and $1.6 million, respectively. During the three and six months ended December 31, 2012, we recorded additional interest expense on uncertain tax positions of $0.4 million and $0.5 million, respectively.

Note 11 – Shareholders’ Equity

Preferred Stock

As of December 31, 2012 and June 30, 2012, 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 December 31, 2012 and June 30, 2012, we had 96,848,238 and 96,132,542 shares issued; 28,992,092 and 28,846,226 shares in treasury stock and 67,856,146 and 67,286,316 shares outstanding (net of treasury stock), respectively.

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Share Buy-Back Program

On October 26, 2011, we announced that our Board of Directors authorized the repurchase of up to $200 million of our common stock (the “Buyback Program”). The Buyback Program allows us to purchase shares of our common stock in accordance with applicable securities laws on the open market, or through privately negotiated transactions, through October 25, 2012. We entered into an agreement with an external broker, which provides the structure under which the program may be facilitated which expired on October 25, 2012. On October 23, 2012, the Board of Directors approved an extension of the Buyback Program through October 25, 2013. The Buyback Program may be suspended or discontinued at any time. We will determine the timing and the amount of any repurchases based on an evaluation of market conditions, share price and other factors. During the three and six months ended December 31, 2012, we repurchased 15,900 shares and 145,866 shares, respectively, at a cost of $0.6 million and $5.4 million, respectively, under the Buyback Program for a total buyback of 3,392,275 shares at a cost of $129.3 million.

Changes in Equity:

The following is a summary of the changes in Accumulated Other Comprehensive Income (“AOCI”) and changes in equity for the six months ended December 31, 2012 and 2011:

	Preferred Stock		Common Stock		Additional Paid-in Capital			AOCI			Retained Earnings			Treasury Stock			Total Equity
Balance at June 30, 2012	$	0	$	961	$	943,971		$	29,709		$	1,726,486		$	(1,171,516	)	$	1,529,611
Net income		0		0		0			0			102,044			0			102,044
Comprehensive loss, net		0		0		0			(1,267	)		0			0			(1,267	)
Treasury stock repurchases		0		0		0			0			0			(5,398	)		(5,398	)
Exercise of stock options, net of shares received		0		7		7,473			0			0			0			7,480
Share-based compensation, net of tax		0		0		7,621			0			0			0			7,621
Dividends ($0.60 per share)		0		0		0			0			(20,794	)		0			(20,794	)
Balance at December 31, 2012	$	0	$	968	$	959,065		$	28,442		$	1,807,736		$	(1,176,914	)	$	1,619,297
	Preferred Stock		Common Stock		Additional Paid-in Capital			AOCI			Retained Earnings			Treasury Stock			Total Equity
Balance at June 30, 2011	$	0	$	956	$	915,433		$	136,733		$	1,418,106		$	(1,047,570	)	$	1,423,658
Net income		0		0		0			0			107,622			0			107,622
Comprehensive loss, net		0		0		0			(59,216	)		0			0			(59,216	)
Exercise of stock options, net of shares received		0		2		(28	)		0			0			0			(26	)
Share-based compensation, net of tax		0		0		7,631			0			0			0			7,631
Dividends ($0.30 per share)		0		0		0			0			(10,504	)		0			(10,504	)
Balance at December 31, 2011	$	0	$	958	$	923,036		$	77,517		$	1,515,224		$	(1,047,570	)	$	1,469,165

At December 31, 2012 and June 30, 2012, AOCI consisted of the following:

Income/(Loss):	December 31, 2012			June 30, 2012
Cumulative translation adjustment	$	70,364		$	45,894
Pension liability adjustment		(36,279	)		(38,447	)
Unrealized (loss) gain on hedging derivatives		(1,750	)		26,296
Unrealized loss on available-for-sale securities		(3,893	)		(4,034	)
Total AOCI	$	28,442		$	29,709

We have approximately $1.9 million and $1.8 million of investments at December 31, 2012 and June 30, 2012, respectively, included in Other current assets in our Condensed Consolidated Balance Sheets that have been classified as available-for-sale securities. These

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securities are recorded at fair value with realized gains and losses recorded in income and unrealized gains and losses recorded in AOCI, net of taxes.

Note 12 – Share-Based Compensation

On December 7, 2011 (the “Effective Date”), our shareholders approved the 2012 Stock Option and Incentive Plan (the “2012 Plan”), which is effective through December 7, 2021. As of the Effective Date, no further grants may be granted under our former plan, the Amended and Restated 2002 Stock Option and Incentive Plan, as amended (the “2002 Plan” and together with the 2012 Plan, the “Plans”). There are 4,400,000 shares available for grant under the 2012 Plan. The 2012 Plan provides for two types of awards: (1) a full value grant, as defined in the 2012 Plan, under which one award shall reduce the shares available for grant under the 2012 Plan by 1.71 shares, and (2) an option or stock appreciation right grant, under which one award shall reduce the shares available for grant under the 2012 Plan by one share. During the six months ended December 31, 2012, 486,784 options to purchase shares of our common stock, 549,864 stock-settled restricted stock units, 869 cash-settled restricted stock units and 6,803 stock appreciation rights were granted under the 2012 Plan. As of December 31, 2012, there were 3,224,134 shares available for grant under the 2012 Plan.

Prior to the Effective Date, we had one share-based compensation plan with shares available for future grants, the 2002 Plan. On December 8, 2010, we amended the 2002 Plan to increase the number of shares available under the 2002 Plan for the grant of stock options, stock appreciation rights, restricted stock and restricted stock units by 1,100,000 to an aggregate amount not to exceed 7,860,000 shares of our common stock. During the six months ended December 31, 2012, there were no options to purchase shares of our common stock or restricted stock units granted under the 2002 Plan.

Share-based compensation expense, net was $5.4 million in each of the three month periods ended December 31, 2012 and 2011, and was $10.2 million and $7.9 million for the six months ended December 31, 2012 and 2011, respectively. The total income tax benefit recognized in the Condensed Consolidated Statements of Income for share-based compensation arrangements was $1.2 million and $1.5 million for the three months ended December 31, 2012 and 2011, respectively and was $2.6 million and $2.2 million for the six months ended December 31, 2012 and 2011, respectively.

Fair Value Determination

The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model, which uses the assumptions noted in the following table.

	Six Months Ended December 31,
	2012			2011
Expected volatility		43.0% - 59.3	%		48.8% - 66.2	%
Weighted-average volatility		50.1	%		59.4	%
Expected annual dividend	$	0.60		$	0.30
Expected term (in years)		2.32 - 4.47			1.70 - 3.87
Risk-free rate		0.2% - 0.6	%		0.2% - 0.7	%

Groups of option holders (directors, executives and non-executives) that have similar historical behavior are considered separately for valuation purposes. Expected volatilities are based on historical closing prices of our common stock over the expected option term. We use historical data to estimate option exercises and employee terminations within the valuation model. The expected term of options granted is derived using the option valuation model and represents the estimated period of time from the date of grant that the option is expected to remain outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

Stock Option Activity

A summary of option activity under the Plans as of December 31, 2012 and changes during the six months ended December 31, 2012 is presented below:

	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at June 30, 2012		2,410,718		$	54.71		6.42	$	9,359
Granted		486,784			47.37
Exercised		(418,870	)		32.67
Forfeited or expired		(83,772	)		63.73

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	Shares		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2012		2,394,860	$	56.76		6.66	$	10.440
Exercisable at December 31, 2012		1,387,244	$	67.94		4.99	$	5,673

The weighted-average grant-date fair value of options granted for the three months ended December 31, 2012 and 2011 was $15.54 and $14.12, respectively, and for the six months ended December 31, 2012 and 2011 was $15.92 and $13.26, respectively. The total intrinsic value of options exercised for the three months ended December 31, 2012 and 2011 was $0.4 million and $0.7 million, respectively, and for the six months ended December 31, 2012 and 2011 was $6.0 million and $0.9 million, respectively.

Modification of Certain Stock Option Awards

Prior to fiscal year 2011, certain of the award agreements under the 2002 Plan stated that vested options not exercised were forfeited upon termination of employment for any reason other than death or disability. However, such award agreements provided that the Compensation and Option Committee of our Board of Directors (the “Compensation and Option Committee”) could extend the time period to exercise vested options 90 days beyond the employment termination date for certain employees. During the three and six months ended December 31, 2012 and 2011, the Compensation and Option Committee used this authority. This action represented a modification of the terms or conditions of an equity award and therefore was accounted for as an exchange of the original award for a new award. Incremental share-based compensation cost for the excess of the fair value of the new award over the fair value of the original award was immaterial.

Restricted Stock Awards

A summary of the status of our nonvested restricted stock as of December 31, 2012 and changes during the six months ended December 31, 2012, is presented below:

	Shares			Weighted Average Grant-Date Fair Value
Nonvested at June 30, 2012		3,000		$	116.65
Vested		(3,000	)		116.65
Nonvested at December 31, 2012		0		$	0.00

As of December 31, 2012, there was no unrecognized compensation cost related to nonvested restricted stock-based compensation arrangements granted under the 2002 Plan and no weighted average recognition period. At December 31, 2012, no shares of restricted stock were outstanding which were granted outside of the 2002 Plan.

Restricted Stock Units

In the six months ended December 31, 2012, we granted 97,733 restricted stock units with earnings per share (“EPS”) performance conditions, 97,733 restricted stock units with return on invested capital (“ROIC”) performance conditions and 97,733 restricted stock units with market conditions, under the 2012 Plan. The restricted stock units with EPS performance conditions cliff vest three years from the date of grant based on the achievement of certain cumulative EPS levels from fiscal years 2013 through 2015. The restricted stock units with ROIC conditions cliff vest three years from the date of grant based on the achievement of a certain average ROIC level over fiscal years 2013 through 2015. The restricted stock units with market conditions cliff vest three years from the date of grant based on a comparison of our total shareholder return (“TSR”) to the TSR of a selected peer group of publicly listed multinational companies. The grant date fair value of the restricted stock units with market conditions of $3.7 million was calculated using a Monte Carlo simulation model. Compensation expense, for both the restricted stock units with performance conditions and the restricted stock units with market conditions, is recognized ratably over the three-year vesting period based on the grant date fair value and our assessment of the probability that the applicable targets will be met for awards with performance conditions, which is reassessed each reporting period.

In the six months ended December 31, 2011, we granted 118,546 restricted stock units with EPS performance conditions, 118,546 restricted stock units with ROIC performance conditions and 118,546 restricted stock units with market conditions, under the 2002 Plan. The restricted stock units with EPS performance conditions cliff vest three years from the date of grant based on the achievement of certain cumulative EPS levels from fiscal years 2012 through 2014. The restricted stock units with ROIC conditions cliff vest three years from the date of grant based on the achievement of a certain ROIC level in fiscal year 2014. The restricted stock units with market conditions cliff vest three years from the date of grant based on a comparison of our TSR to the TSR of a selected peer group of publicly listed multinational companies. The grant date fair value of the restricted stock units with market conditions of $3.3 million was calculated using a Monte Carlo simulation model. Compensation expense, for both the restricted stock units with performance conditions and the restricted stock units with market conditions, is recognized ratably over the three-year vesting period based on the

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grant date fair value and our assessment of the probability that the applicable targets will be met for awards with performance conditions, which is reassessed each reporting period.

In the six months ended December 31, 2010, we granted 191,721 restricted stock units with EPS performance conditions and 191,715 restricted stock units with market conditions, under the 2002 Plan. The restricted stock units with EPS performance conditions cliff vest three years from the date of grant based on the attainment of a certain EPS level in fiscal year 2013. The restricted stock units with market conditions cliff vest three years from the date of grant based on a comparison of our TSR to the TSR of a selected peer group of publicly listed multinational companies. The grant date fair value of the restricted stock units with market conditions of $5.2 million was calculated using a Monte Carlo simulation model. Compensation expense, for both the restricted stock units with performance conditions and the restricted stock units with market conditions, is recognized ratably over the three-year vesting period based on the grant date fair value and our assessment of the probability that the applicable targets will be met for awards with performance conditions, which is reassessed each reporting period.

We granted 380,400 restricted stock units with performance conditions in the fiscal year ended June 30, 2010 under the 2002 Plan. These restricted stock units cliff vested in September 2012. Compensation expense was recognized ratably over the three-year vesting period based on grant date fair value and our assessment of the probability that the performance targets would be met. Approximately 39.8 percent of the restricted stock units vested based on the actual attainment of certain targets.

In the six months ended December 31, 2012 and 2011, we also granted 234,825 and 273,931 time vested restricted stock units, without performance or market conditions, respectively, under the Plans that vest three years from the date of grant and 21,840 and 24,400 time vested restricted stock units that vest ratably over the three-year vesting period.

In September 2012 and June 2012, we granted 869 and 1,150 cash-settled restricted stock units, respectively, under the 2012 Plan. These restricted stock units are accounted for as liability awards and are recorded at the fair value at the end of the reporting period in accordance with their vesting schedules. During the six months ended December 31, 2012, none of these restricted stock units were settled. At December 31, 2012 and June 30, 2012, 2,019 and 1,150 cash-settled restricted stock units were outstanding, respectively.

In January and September 2008, we granted 34,608 and 28,344 cash-settled restricted stock units, respectively, outside the 2002 Plan. These restricted stock units are accounted for as liability awards and are recorded at the fair value at the end of the reporting period in accordance with their vesting schedules. During the six months ended December 31, 2012 and 2011, 1,608 of these restricted stock units were settled in each period, at a cost of $0.1 million in each period. At December 31 2012, and June 30, 2012, 0 and 1,608 cash-settled restricted stock units were outstanding, respectively.

A summary of equity classified restricted stock unit activity as of December 31, 2012 and changes during the six months ended December 31, 2012 is presented below:

	Shares
Nonvested at June 30, 2012		1,939,364
Granted		549,864
Vested		(429,704	)
Forfeited		(296,496	)
Nonvested at December 31, 2012		1,763,028

At December 31, 2012, the aggregate intrinsic value of equity classified restricted stock units was $78.6 million and there was $35.0 million of total unrecognized compensation cost related to restricted stock unit compensation arrangements. The weighted average recognition period was 1.7 years.

Stock Appreciation Rights

A summary of cash-settled stock appreciation rights as of December 31, 2012 and changes during the six months ended December 31, 2012 is presented below:

	Shares
Nonvested at June 30, 2012		10,807
Granted		6,803
Vested		(3,332	)
Forfeited		(817	)
Nonvested at December 31, 2012		13,461
Exercisable		788

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These stock appreciation rights are accounted for as liability awards and are recorded at the fair value at the end of the reporting period in accordance with their vesting schedules. The fair value is calculated using the Black-Scholes option valuation model using assumptions consistent with our stock options.

Note 13 – Derivatives

We are exposed to market risk from changes in foreign currency exchange rates and interest rates, which could affect our operating results, financial condition and cash flows. We manage our exposure to these risks through our regular operating and financial activities and, when appropriate, through the use of derivative financial instruments. These derivative instruments are utilized to hedge economic exposures, as well as to reduce earnings and cash flow volatility resulting from shifts in market rates. We enter into limited types of derivative contracts, including foreign currency spot, forward and option contracts and an interest rate swap, to manage foreign currency and interest rate exposures. Our primary foreign currency exposure is the Euro. The fair market values of all our derivative contracts change with fluctuations in interest rates and currency rates and are designed so that any changes in their values are offset by changes in the values of the underlying exposures. Derivative financial instruments are held solely as risk management tools and not for trading or speculative purposes.

We record all derivative instruments as either assets or liabilities at fair value in our Condensed Consolidated Balance Sheets. Certain of these derivative contracts have been designated as cash flow hedges, whereby gains and losses are reported within AOCI in our Condensed Consolidated Balance Sheets, until the underlying transaction occurs, at which point they are reported in earnings as gains and losses in our Condensed Consolidated Statements of Income. Certain of our derivatives, for which hedge accounting is not applied, are effective as economic hedges. These derivative contracts are required to be recognized each period at fair value, with gains and losses reported in earnings in our Condensed Consolidated Statements of Income and therefore do result in some level of earnings volatility. The level of volatility will vary with the type and amount of derivative hedges outstanding, as well as fluctuations in the currency and interest rate markets during the period. The related cash flow impacts of all our derivative activities are reflected as cash flows from operating activities.

Derivatives, by their nature, involve varying degrees of market and credit risk. The market risk associated with these instruments resulting from currency exchange and interest rate movements is expected to offset the market risk of the underlying transactions, assets and liabilities being hedged. We do not believe there is significant risk of loss in the event of non-performance by the counterparties associated with these instruments because these transactions are executed with a diversified group of major financial institutions. Furthermore, our policy is to contract only with counterparties having a minimum investment grade or better credit rating. Credit risk is managed through the continuous monitoring of exposure to such counterparties.

Foreign Exchange Risk Management

We use foreign exchange contracts to hedge the price risk associated with foreign denominated forecasted purchases of materials used in our manufacturing process and to manage currency risk associated with operating costs in certain operating units, including foreign currency denominated intercompany loans and other foreign currency denominated assets. These contracts generally mature in one year or less. The majority of these contracts are designated as cash flow hedges.

At December 31, 2012 and June 30, 2012, we had outstanding foreign exchange contracts, including forward and option contracts, which are summarized below:

	December 31, 2012					June 30, 2012
	Gross Notional Value		Fair Value Asset/ (Liability)(1)			Gross Notional Value		Fair Value Asset/ (Liability)(1)
Currency Hedged (Buy/Sell):
U.S. Dollar/Euro	$	488,264	$	(2,852	)	$	686,500	$	37,962
Euro/U.S. Dollar		45,750		1,670			28,750		(1,056	)
Swiss Franc/U.S. Dollar		41,496		871			0		0
Chinese Yuan/U.S. Dollar		29,853		501			36,040		(428	)
Japanese Yen/Euro		26,143		(1,810	)		31,280		1,695
U.S. Dollar/British Pound		5,685		(58	)		0		0
British Pound/U.S. Dollar		4,873		209			0		0
Hungarian Forint/Euro		4,509		245			8,816		414
British Pound/Swiss Franc		2,924		(18	)		0		0
U.S. Dollar/Japanese Yen		900		80			1,800		2
Total	$	650,397	$	(1,162	)	$	793,186	$	38,589

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⁽¹⁾  Represents the net receivable/(payable) included in our Condensed Consolidated Balance Sheets.

Cash Flow Hedges

We designate a portion of our foreign exchange contracts as cash flow hedges of foreign currency denominated purchases. As of December 31, 2012 and June 30, 2012, we had $433.9 million and $638.3 million of forward contracts maturing through June 2014 and June 2013, respectively. These contracts are recorded at fair value in the accompanying Condensed Consolidated Balance Sheets. The changes in fair value for these contracts on a spot to spot basis are reported in AOCI, and are reclassified to either Cost of sales or Selling, general and administrative expense (“SG&A”), depending on the nature of the underlying asset or liability that is being hedged, in our Condensed Consolidated Statements of Income, in the period or periods during which the underlying transaction occurs. If it becomes apparent that an underlying forecasted transaction will not occur, the amount recorded in AOCI related to the hedge is reclassified to Foreign exchange losses, net in our Condensed Consolidated Statements of Income in the then-current period. Amounts relating to such reclassifications were immaterial in the three and six months ended December 31, 2012 and 2011.

Changes in the fair value of the derivatives are highly effective in offsetting changes in the cash flows of the hedged items because the amounts and the maturities of the derivatives approximate those of the forecasted exposures. Any ineffective portion of the derivative is recognized in the current period in our Condensed Consolidated Statements of Income, in the same line item in which the foreign currency gain or loss on the underlying hedged transaction was recorded. No amount of ineffectiveness was recognized in the Condensed Consolidated Statements of Income in the three and six months ended December 31, 2012 and 2011. All components of each derivative’s gain or loss, with the exception of forward points (see below), were included in the assessment of hedge ineffectiveness. At December 31, 2012 and June 30, 2012, the fair value of these contracts was a net liability of $2.7 million and net asset of $29.8 million, respectively. The amount associated with these hedges that is expected to be reclassified from AOCI to earnings within the next 12 months is a loss of $1.3 million.

We elected to exclude forward points from the effectiveness assessment. At the end of the reporting period, we calculate the excluded amount, which is the fair value relating to the change in forward points that is recorded in current earnings as Foreign exchange losses, net in our Condensed Consolidated Statements of Income. For the three months ended December 31, 2012 and 2011, we recognized $0.8 million of net gains and $1.8 million of net losses, respectively, related to the change in forward points. For the six months ended December 31, 2012 and 2011, we recognized $1.4 million of net gains and $5.4 million of net losses, respectively, related to the change in forward points.

Effective July 1, 2011, we changed the functional currency of two of our foreign subsidiaries to the U.S. Dollar to reflect a change in the currency in which such subsidiaries primarily generate and expend cash. In addition, we recognized approximately $1.4 million as Foreign exchange losses, net in our Condensed Consolidated Statements of Income for the three and six months ended December 31, 2011 due to the revaluation of certain derivative instruments held at these subsidiaries because we did not meet the requisite documentation requirements to attain hedge accounting treatment. As of January 1, 2012, the documentation was amended to achieve hedge accounting treatment going forward.

Economic Hedges

When hedge accounting is not applied to derivative contracts, or after former cash flow hedges have been de-designated as balance sheet hedges, we recognize the gain or loss on the associated contracts directly in current period earnings in our Condensed Consolidated Statements of Income, as either Foreign exchange losses, net or Cost of sales according to the underlying exposure. As of December 31, 2012 and June 30, 2012, we had $216.5 million and $154.8 million, respectively, of forward contracts maturing through October 2013 and August 2012, respectively, in various currencies to hedge foreign currency denominated intercompany loans and other foreign currency denominated assets. At December 31, 2012 and June 30, 2012, the fair values of these contracts were assets of $1.6 million and $8.8 million, respectively. Adjustments to the carrying value of the foreign currency forward contracts offset the gains and losses on the underlying loans and other foreign denominated assets in other Foreign exchange losses, net.

Interest Rate Risk Management

We have one interest rate swap contract with a notional amount of $20.6 million and $20.3 million at December 31, 2012 and June 30, 2012, respectively, in order to manage our interest rate exposure and effectively convert interest on an operating lease from a variable rate to a fixed rate. The objective of the swap is to offset changes in rent expenses caused by interest rate fluctuations. The interest rate swap contract is designated as a cash flow hedge. At the end of each reporting period, the discounted fair value of the swap contract is calculated and recorded in AOCI and reclassified to rent expense within SG&A in our Condensed Consolidated Statements of Income, in the then current period. If the hedge is determined to be ineffective, the ineffective portion will be reclassified from AOCI and recorded as rent expense within SG&A. We recognized an immaterial amount of ineffectiveness in each of the three and six months ended December 31, 2012 and 2011, in our Condensed Consolidated Statements of Income. All components of the derivatives were included in the assessment of the hedges’ effectiveness. The amount associated with the swap contract that is expected to be recorded as rent expense in the next 12 months is a loss of $0.6 million.

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Fair Value of Derivatives

The following tables provide a summary of the fair value amounts of our derivative instruments at December 31, 2012 and June 30, 2012:

		Fair Value
	Balance Sheet Location	December 31, 2012			June 30, 2012
Derivatives Designated as Cash Flow Hedges, Gross:
Other assets:
Foreign exchange contracts	Other current assets	$	3,192		$	30,761
Other liabilities:
Foreign exchange contracts	Accrued liabilities		5,918			979
Interest rate swap	Accrued liabilities		737			712
Interest rate swap	Other non-current liabilities		0			285
Total liabilities			6,655			1,976
Net (liability)/asset for derivatives designated as hedging instruments			(3,463	)		28,785
		Fair Value
		December 31, 2012			June 30, 2012
Derivatives Designated as Economic Hedges, Gross:
Other assets:
Foreign exchange contracts	Other current assets		4,308			9,864
Other liabilities:
Foreign exchange contracts	Accrued liabilities		2,743			1,057
Net asset for economic hedges:			1,565			8,807
Total net derivative (liability)/asset		$	(1,898	)	$	37,592

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Derivative Activity

The following table shows derivative activity for derivatives designated as cash flow hedges for the three months ended December 31, 2012 and 2011:

Derivative	Location of Derivative Gain/(Loss) Recognized in Income	Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)						Gain/(Loss) Recognized in Income  on Derivatives (Ineffective Portion)						Gain/(Loss) from Amounts Excluded from Effectiveness Testing
		Three Months Ended December 31,
		2012			2011			2012			2011			2012		2011
Foreign exchange contracts	Cost of sales	$	9,931		$	(517	)	$	0		$	0		$	0	$	2
Foreign exchange contracts	SG&A		141			0			0			0			0		0
Foreign exchange contracts	Foreign exchange losses, net		0			0			0			0			841		(1,814	)
Interest rate swap	SG&A		(192	)		(146	)		(1	)		(3	)		0		0
Total cash flow hedges		$	9,880		$	(663	)	$	(1	)	$	(3	)	$	841	$	(1,812	)

Derivative	Gain/(Loss) Recognized in AOCI (Effective Portion)
	Three Months Ended December 31,
	2012			2011
Foreign exchange contracts	$	(9,484	)	$	25,619
Interest rate swap		(24	)		(40	)
Total cash flow hedges	$	(9,508	)	$	25,579

The following table shows derivative activity for derivatives designated as cash flow hedges for the six months ended December 31, 2012 and 2011:

Derivative	Location of Derivative Gain/(Loss) Recognized in Income	Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)						Gain/(Loss) Recognized in Income  on Derivatives (Ineffective Portion)						Gain/(Loss) from Amounts Excluded from Effectiveness Testing
		Six Months Ended December 31,
		2012			2011			2012			2011			2012		2011
Foreign exchange contracts	Cost of sales	$	27,765		$	(11,383	)	$	0		$	0		$	0	$	2
Foreign exchange contracts	SG&A		78			0			0			0			0		0
Foreign exchange contracts	Foreign exchange losses, net		0			0			0			0			1,395		(5,462	)
Interest rate swap	SG&A		(365	)		(309	)		(3	)		(4	)		0		0
Total cash flow hedges		$	27,478		$	(11,692	)	$	(3	)	$	(4	)	$	1,395	$	(5,460	)

Derivative	Gain/(Loss) Recognized in AOCI (Effective Portion)
	Six Months Ended December 31,
	2012			2011
Foreign exchange contracts	$	(11,148	)	$	60,367
Interest rate swap		(86	)		(338	)
Total cash flow hedges	$	(11,234	)	$	60,029

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The following table summarizes gains and losses from our derivative instruments that are not designated as hedging instruments for the three and six months ended December 31, 2012 and 2011:

		Three Months Ended December 31,						Six Months Ended December 31,
Derivative	Location of Derivative Gain/(Loss)	2012			2011			2012			2011
Foreign exchange contracts	Cost of sales	$	(3,314	)	$	(5,844	)	$	(5,172	)	$	(4,597	)
Foreign exchange contracts	Foreign exchange losses, net		2,363			4,794			2,752			6,345

Note 14 – Fair Value Measurements

Pursuant to the accounting guidance for fair value instruments, fair value is defined as the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, we consider the principal or most advantageous market in which it would transact and we consider assumptions that market participants would use when pricing the asset or liability.

Fair Value Hierarchy

Under fair value accounting guidance, there is a three-tier fair value hierarchy to prioritize the inputs used in measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions.

The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels are defined as follows:

Level 1:	Observable inputs, such as unadjusted quoted market prices in active markets for the identical asset or liability.
Level 2:	Inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.
Level 3:	Unobservable inputs that reflect the entity’s own assumptions in measuring the asset or liability at fair value.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

For assets and liabilities measured at fair value on a recurring basis, fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for the identical assets and liabilities, such measurements involve developing assumptions based on market observable data, and in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date.

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The following tables provide the fair value hierarchy for assets and liabilities measured on a recurring basis and the losses recorded during the periods presented:

	Fair Value at December 31, 2012								Fair Value at June 30, 2012
Description	Level 1		Level 2			Level 3			Level 1		Level 2			Level 3
Assets/(Liabilities):
Short-term investments	$	81,166	$	0		$	0		$	203,014	$	0		$	0
Available-for-sale securities		1,943		0			0			1,805		0			0
Foreign exchange contracts		0		(1,161	)		0			0		38,589			0
Interest rate swap		0		(737	)		0			0		(997	)		0
Pension assets		7,236		0			0			7,011		0			0
Contingent Consideration		0		0			(9,888	)		0		0			(22,100	)
Net asset/(liability)	$	90,345	$	(1,898	)	$	(9,888	)	$	211,830	$	37,592		$	(22,100	)

	Total Gains for  the Three Months Ended December 31,					Total Gains for the Six Months Ended December 31,
Description of Liability	2012			2011		2012			2011
Contingent Consideration	$	(12,500	)	$	0	$	(12,500	)	$	0

The following describes the valuation methodologies we use to measure assets and liabilities accounted for at fair value on a recurring basis:

Short-Term Investments and Available-for-Sale Securities: Short-term investments and available-for-sale securities are classified as Level 1 as the fair value was determined from market quotes obtained from financial institutions in active markets.

Foreign Exchange Contracts: We use foreign exchange contracts to hedge market risks relating to possible adverse changes in foreign currency exchange rates. Our foreign exchange contracts were measured at fair value using Level 2 inputs. Such inputs include foreign currency exchange spot and forward rates for similar transactions in actively quoted markets.

Interest Rate Swap: We use an interest rate swap to hedge market risk relating to possible adverse changes in interest rates. We have elected to use the income approach to value our interest rate swap contract, which uses observable Level 2 inputs at the measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted). Level 2 inputs for the swap contract valuation are limited to quoted prices for similar assets or liabilities in active markets (specifically futures contracts on LIBOR, for the first two years) and inputs other than quoted prices that are observable for the asset or liability (specifically LIBOR cash and swap rates) at commonly quoted intervals, and credit risk. These key inputs, including the LIBOR cash rates for very short-term, futures rates for up to two years, and LIBOR swap rates beyond the derivative maturity are used to construct the swap yield curve and discount the future cash flows to present value at the measurement date. As the interest rate swap contract is a derivative asset, a credit default swap basis available at commonly quoted intervals has been collected from Bloomberg and applied to all cash flows. If the interest rate swap contract was determined to be a derivative liability, we would be required to reflect potential credit risk to lenders using a borrowing rate specific to our company. See Note 13 – Derivatives, for more information regarding our derivative financial instruments.

Pension Assets: Our pension assets have been valued using Level 1 inputs as quoted prices in an active market exist for these assets.

Contingent Consideration: We used a probability-weighted discounted cash flow approach (a form of the income approach) in determining the original fair value of the contingent consideration of $22.1 million related to the acquisition of MWM Acoustics. The principal inputs to the approach included our expectations of the specific business’ earnings before income taxes (“EBIT”) in fiscal 2014 and a discount rate of 12.6 percent, that began with our weighted average cost of capital related to this acquisition of 19.0 percent and adjusted for the risks associated with the underlying EBIT outcome, the functional form of the payout and our credit risk associated with making the payment. Given the use of significant inputs that are not observable in the market, the contingent consideration liability is classified within Level 3 of the fair value hierarchy. In the three and six months ended December 31, 2012, we reassessed our expectations of the EBIT in fiscal year 2014 and revised our estimate of the contingent consideration liability and reduced the liability by $12.5 million to $9.6 million, which was recognized within SG&A in our Condensed Consolidated Statement of Income. In addition, we recorded $0.3 million of contingent consideration related to the earn-out in the Interchain acquisition. Refer to Note 22 – Acquisitions for more information on the contingent consideration liability.

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Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. These assets can include loans and long-lived assets that have been reduced to fair value when they are held for sale, impaired loans that have been reduced based on the fair value of the underlying collateral, cost and equity method investments and long-lived assets that are written down to fair value when they are impaired and the remeasurement of retained investments in formerly consolidated subsidiaries upon a change in control that results in deconsolidation of a subsidiary if we sell a controlling interest and retain a non-controlling stake in the entity. Assets that are written down to fair value when impaired and retained investments are not subsequently adjusted to fair value unless further impairment occurs.

The following table provides the carrying value for assets and liabilities measured on a non-recurring basis, all of which are measured under Level 3 of the fair value hierarchy. There were no losses recognized in the three and six months ended December 31, 2012 and 2011.

Description of Assets	December 31, 2012		June 30, 2012
Goodwill	$	180,757	$	180,811
Long-lived assets		446,284		459,112
Total	$	627,041	$	639,923

The following describes the valuation methodologies we use to measure financial and non-financial instruments accounted for at fair value on a non-recurring basis.

Goodwill: Goodwill is evaluated for impairment annually or more frequently if an event or circumstance indicates that an impairment loss may have been incurred.

Long-lived Assets: Long-lived assets include Property, plant and equipment, net and intangible assets, and are valued using the best information available, including quoted market prices or market prices for similar assets when available or internal cash flow estimates discounted at an appropriate interest rate or independent appraisals, as appropriate. For real estate, cash flow estimates are based on current market estimates that reflect current and projected lease profiles and available industry information about expected trends in rental, occupancy and capitalization rates.

Note 15 – Restructuring Program

Our restructuring program that is designed to improve our global footprint, cost structure, technology portfolio, human resources and internal processes continues.

For the three and six months ended December 31, 2012 and 2011, we continued to refine and expand on activities launched in prior years. During the three and six months ended December 31, 2012, no significant new programs were launched. During the three and six months ended December 31, 2011, one significant new program was launched to optimize certain functions in our Professional segment.

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A summary and components of our restructuring initiatives are presented below and include accruals for new programs as well as revisions to estimates, both increases and decreases, to programs accrued in prior periods:

	Severance Related Costs			Third Party Contractor Termination Costs			Facility Closure and Other Related Costs			Asset Impairments (1)			Total
Liability, June 30, 2012	$	19,938		$	17		$	10,839		$	0		$	30,794
Expense (2)		(902	)		4			969			995			1,066
Accumulated depreciation offset		0			0			0			(995	)		(995	)
Payments		(6,774	)		(22	)		(2,414	)		0			(9,210	)
Foreign currency translation		513			1			(1	)		0			513
Liability, December 31, 2012	$	12,775		$	0		$	9,393		$	0		$	22,168
Liability, June 30, 2011	$	31,762		$	0		$	7,860		$	0		$	39,622
Expense (2)		841			280			713			1,078			2,912
Accumulated depreciation offset		0			0			0			(1,078	)		(1,078	)
Payments		(3,072	)		(280	)		(1,845	)		0			(5,197	)
Foreign currency translation		(2,144	)		0			0			0			(2,144	)
Liability, December 31, 2011	$	27,387		$	0		$	6,728		$	0		$	34,115

⁽¹⁾ Credits related to restructuring charges for accelerated depreciation and inventory provisions are recorded against the related assets in Property, plant and equipment, net or Inventories in our Condensed Consolidated Balance Sheets and do not impact the restructuring liability.

⁽²⁾ Restructuring expenses noted above are primarily in SG&A in our Condensed Consolidated Statements of Income. Asset impairments which consist of accelerated depreciation and inventory provisions are primarily in Cost of sales in our Condensed Consolidated Statements of Income.

Restructuring liabilities are recorded in Accrued liabilities and Other non-current liabilities in our Condensed Consolidated Balance Sheets.

Restructuring expenses by reporting business segment are presented below:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Infotainment	$	(565	)	$	(415	)	$	(295	)	$	92
Lifestyle		858			190			751			340
Professional		(436	)		1,077			(385	)		1,357
Other		0			45			0			45
Total		(143	)		897			71			1,834
Asset Impairments		955			0			995			1,078
Total	$	812		$	897		$	1,066		$	2,912

Note 16 – Retirement Benefits

Plan Descriptions

Retirement savings plan

We provide a Retirement Savings Plan (the “Savings Plan”) for certain employees in the United States. Under the Savings Plan, and subject to certain limitations: (i) employees may contribute up to 50 percent of their pretax compensation; (ii) each business unit will make a safe harbor non-elective contribution in an amount equal to three percent of a participant’s pre-tax compensation; and (iii) each business unit may also make a matching contribution of 50 percent of an employee’s tax-deferred compensation, up to the first six percent of a participant’s pre-tax compensation. Matching contributions vest at a rate of 25 percent for each year of service with the employer, beginning with the second year of service.

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Pension benefits

We provide defined pension benefits to certain eligible employees. The measurement date used for determining pension benefits is the last day of our fiscal year, June 30^th. We have certain business units in Europe and Asia that maintain defined benefit pension plans for many of our current and former employees. The coverage provided and the extent to which the retirees’ share in the cost of the program vary by business unit. Generally, plan benefits are based on age, years of service and average compensation during the final years of service. In the United States, we have a Supplemental Executive Retirement Plan (the “SERP”) that provides retirement, death and termination benefits, as defined in the SERP, to certain key executives designated by our Board of Directors. The majority of our defined benefit plans do not have contractual or statutory provisions which specify minimum funding requirements. We are in compliance with all existing contractual obligations and statutory provisions.

The following table presents the components of net periodic benefit cost for the three and six months ended December 31, 2012 and 2011:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Service cost	$	544		$	398		$	1,074		$	813
Interest cost		1,777			1,982			3,526			4,007
Expected return on plan assets		(73	)		(58	)		(145	)		(119	)
Amortization of prior service cost		291			351			584			703
Amortization of net loss		969			449			1,936			897
Net periodic benefit cost	$	3,508		$	3,122		$	6,975		$	6,301

During the three months ended December 31, 2012 and 2011, we made contributions of $1.8 million and $2.2 million, respectively, to the defined benefit pension plans, substantially all of which were paid to participants. During the six months ended December 31, 2012 and 2011, we made contributions of $4.2 million and $4.3 million, respectively, to the defined benefit pension plans which were paid to participants. We expect to make approximately $5.0 million in contributions for the remainder of the fiscal year ending June 30, 2013.

Note 17 – Business Segment Data

We design, manufacture and market high-quality, high fidelity audio products and electronic systems for the infotainment, automotive audio, home audio and professional markets. Our chief operating decision maker evaluates performance and allocates resources based on net sales, operating income and working capital in each of the reporting segments.

Infotainment

Our Infotainment segment designs, manufactures and markets infotainment systems for vehicle applications to be installed primarily as original equipment by automotive manufacturers.

Lifestyle

Our Lifestyle segment designs, manufactures and markets automotive audio systems for vehicle applications to be installed primarily as original equipment by automotive manufacturers and a wide range of mid—to high-end audio and consumer electronics for home, multimedia and mobile applications. Our Lifestyle audio products feature some of the world’s most recognized audio brands, including JBL^®, AKG^®, Harman/Kardon^®, Infinity^®, Mark Levinson^®, Revel^®, Logic 7^®, Lexicon^® and Selenium^®.

Professional

Our Professional segment designs, manufactures and markets an extensive range of loudspeakers, power amplifiers, digital signal processors, microphones, headphones and mixing consoles used by audio professionals in concert halls, stadiums, airports, houses of worship and other public spaces. We also provide high-quality products to the sound reinforcement, music instrument support and broadcast and recording segments of the professional audio market. We offer complete systems solutions for professional installations and users around the world. Our Professional products are marketed globally under brand names including JBL Professional^®, AKG, Crown^®, Soundcraft^®, Lexicon, DigiTech^®, dbx^®, BSS^®, Selenium and Studer^®.

Other

Our Other segment includes compensation, benefits and occupancy costs for corporate employees, net of reporting segment allocations, expenses associated with new technology innovation and our corporate brand identity campaign.

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The following table reports Net sales and Operating income (loss) by each reporting segment for the three and six months ended December 31, 2012 and 2011:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Net sales:
Infotainment	$	540,303		$	599,899		$	1,100,827		$	1,203,157
Lifestyle		371,576			368,754			663,274			668,593
Professional		143,506			158,376			287,185			305,882
Other		257			0			2,549			0
Total	$	1,055,642		$	1,127,029		$	2,053,835		$	2,177,632
Operating income (loss):
Infotainment	$	30,251		$	49,947		$	74,925		$	97,043
Lifestyle		49,832			49,605			87,091			78,926
Professional		19,742			22,160			39,513			38,180
Other		(31,443	)		(26,334	)		(54,056	)		(44,593	)
Total	$	68,382		$	95,378		$	147,473		$	169,556

⁽¹⁾ Operating income (loss) for the three and six months ended December 31, 2011 has been revised to reflect a change in the measurement of segment operating profit due to a change in the allocation of intercompany royalties between the Lifestyle and Professional segments.

Note 18 – Significant Customers

Presented below are the percentages of net sales to, and net accounts receivables due from, customers who represent ten percent or more of our net sales or net accounts receivable, as follows:

	Net Sales						Accounts Receivable, Net
	Six Months Ended December 31,						December 31,			June 30,
	2012			2011			2012			2012
BMW		20	%		21	%		12	%		13	%
Audi/Volkswagen		13	%		13	%		9	%		11	%
Other customers		67	%		66	%		79	%		76	%
Total		100	%		100	%		100	%		100	%

We anticipate that BMW and Audi/Volkswagen will continue to account for a significant portion of our net sales and net accounts receivable for the foreseeable future. Our customers are not obligated to any long-term purchase of our products.

Note 19 – Commitments and Contingencies

At December 31, 2012, we were subject to legal claims and litigation arising in the ordinary course of business, including the matters described below. The outcome of these legal actions cannot be predicted with certainty; however, management, based upon advice from legal counsel, believes such actions are either without merit or will not have a material adverse effect on our financial condition, results of operations or cash flows.

In re Harman International Industries, Inc. Securities Litigation

On October 1, 2007, a purported class action lawsuit was filed by Cheolan Kim (the “Kim Plaintiff”) against Harman and certain of our officers in the United States District Court for the District of Columbia (the “Court”) seeking compensatory damages and costs on behalf of all persons who purchased our common stock between April 26, 2007 and September 24, 2007 (the “Class Period”). The original complaint alleged claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.

The complaint alleged that the defendants omitted to disclose material adverse facts about Harman’s financial condition and business prospects. The complaint contended that had these facts not been concealed at the time the merger agreement with KKR and GSCP was entered into, there would not have been a merger agreement, or it would have been at a much lower price, and the price of our

24

common stock therefore would not have been artificially inflated during the Class Period. The Kim Plaintiff alleged that, following the reports that the proposed merger was not going to be completed, the price of our common stock declined, causing the plaintiff class significant losses.

On November 30, 2007, the Boca Raton General Employees’ Pension Plan filed a purported class action lawsuit against Harman and certain of our officers in the Court seeking compensatory damages and costs on behalf of all persons who purchased our common stock between April 26, 2007 and September 24, 2007. The allegations in the Boca Raton complaint are essentially identical to the allegations in the original Kim complaint, and like the original Kim complaint, the Boca Raton complaint alleges claims for violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder.

On January 16, 2008, the Kim Plaintiff filed an amended complaint. The amended complaint, which extended the Class Period through January 11, 2008, contended that, in addition to the violations alleged in the original complaint, Harman also violated Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder by “knowingly failing to disclose “significant problems” relating to its PND sales forecasts, production, pricing, and inventory” prior to January 14, 2008. The amended complaint claimed that when “Defendants revealed for the first time on January 14, 2008 that shifts in PND sales would adversely impact earnings per share by more than $1.00 per share in fiscal 2008,” that led to a further decline in our share value and additional losses to the plaintiff class.

On February 15, 2008, the Court ordered the consolidation of the Kim action with the Boca Raton action, the administrative closing of the Boca Raton action, and designated the short caption of the consolidated action as In re Harman International Industries, Inc. Securities Litigation, civil action no. 1:07-cv-01757 (RWR). That same day, the Court appointed the Arkansas Public Retirement System as lead plaintiff (“Lead Plaintiff”) and approved the law firm Cohen, Milstein, Hausfeld and Toll, P.L.L.C. to serve as lead counsel.

On March 24, 2008, the Court ordered, for pretrial management purposes only, the consolidation of Patrick Russell v. Harman International Industries, Incorporated, et al. with In re Harman International Industries, Inc. Securities Litigation.

On May 2, 2008, Lead Plaintiff filed a consolidated class action complaint (the “Consolidated Complaint”). The Consolidated Complaint, which extends the Class Period through February 5, 2008, contends that Harman and certain of our officers and directors violated Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder, by issuing false and misleading disclosures regarding our financial condition in fiscal year 2007 and fiscal year 2008. In particular, the Consolidated Complaint alleges that defendants knowingly or recklessly failed to disclose material adverse facts about MyGIG radios, personal navigation devices and our capital expenditures. The Consolidated Complaint alleges that when Harman’s true financial condition became known to the market, the price of our common stock declined significantly, causing losses to the plaintiff class.

On July 3, 2008, defendants moved to dismiss the Consolidated Complaint in its entirety. Lead Plaintiff opposed the defendants’ motion to dismiss on September 2, 2008, and defendants filed a reply in further support of their motion to dismiss on October 2, 2008. The motion is now fully briefed. As of December 31, 2012, the case remained open with no new developments.

Patrick Russell v. Harman International Industries, Incorporated, et al.

Patrick Russell (the “Russell Plaintiff”) filed a complaint on December 7, 2007 in the United States District Court for the District of Columbia and an amended purported putative class action complaint on June 2, 2008 against Harman and certain of our officers and directors alleging violations of the Employee Retirement Income Security Act of 1974 (“ERISA”) and seeking, on behalf of all participants in and beneficiaries of the Savings Plan, compensatory damages for losses to the Savings Plan as well as injunctive relief, imposition of a constructive trust, restitution, and other monetary relief. The amended complaint alleges that from April 26, 2007 to the present defendants failed to prudently and loyally manage the Savings Plan’s assets, thereby breaching their fiduciary duties in violation of ERISA by causing the Savings Plan to invest in our common stock notwithstanding that the stock allegedly was “no longer a prudent investment for the Participants’ retirement savings.” The amended complaint further claims that, during the Class Period, defendants failed to monitor the Savings Plan fiduciaries, failed to provide the Savings Plan fiduciaries with, and to disclose to Savings Plan participants, adverse facts regarding Harman and our businesses and prospects. The Russell Plaintiff also contends that defendants breached their duties to avoid conflicts of interest and to serve the interests of participants in and beneficiaries of the Savings Plan with undivided loyalty. As a result of these alleged fiduciary breaches, the amended complaint asserts that the Savings Plan has “suffered substantial losses, resulting in the depletion of millions of dollars of the retirement savings and anticipated retirement income of the Savings Plan’s Participants.”

On March 24, 2008, the Court ordered, for pretrial management purposes only, the consolidation of Patrick Russell v. Harman International Industries, Incorporated, et al. with In re Harman International Industries, Inc. Securities Litigation.

Defendants moved to dismiss the complaint in its entirety on August 5, 2008. The Russell Plaintiff opposed the defendants’ motion to dismiss on September 19, 2008, and defendants filed a reply in further support of their motion to dismiss on October 20, 2008. The motion is now fully briefed. As of December 31, 2012, the case remained open with no new developments.

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Infotainment Supply Arrangements

We have arrangements with our infotainment customers to provide products that meet predetermined technical specifications and delivery dates. In the event that we do not satisfy the performance obligations under these arrangements, we may be required to indemnify the customer. We accrue for any loss that we expect to incur under these arrangements when that loss is probable and can be reasonably estimated. For the three and six months ended December 31, 2012 and the three months ended December 31, 2011, we incurred no costs relating to delayed delivery of product to an infotainment customer. For the six months ended December 31, 2011, we incurred $4.6 million of costs relating to delayed delivery of product to an infotainment customer. An inability to meet performance obligations on infotainment platforms to be delivered in future periods could adversely affect our results of operations, cash flows and financial condition in future periods.

Note 20 – Related Party Transactions

From time to time, we enter into transactions with related parties. In December 2009, we entered into a three-year agreement for engineering and software development services with Neusoft Corporation (“Neusoft”), a Shanghai exchange listed technology solutions provider. A member of our Board of Directors is the Chairman and CEO of Neusoft. On April 20, 2010, our subsidiary, innovative Systems GmbH (“IS”) entered into an asset purchase and business transfer agreement (the “Asset Purchase Agreement”) with Neusoft Technology Solutions GmbH (“Neusoft Technology”), which is a subsidiary of Neusoft, for the sale of certain tangible assets located at IS’s facility in Hamburg, Germany. This transaction closed on June 1, 2010. As part of the Asset Purchase Agreement, IS and Neusoft Technology entered into a five-year agreement for engineering and software development services related to IS’s vehicle navigation business (the “Services Agreement”). Under the terms of the Asset Purchase Agreement, IS transferred at closing certain tangible assets and employment relationships to Neusoft Technology and received consideration of €6 million. Our subsidiary, Harman Becker Automotive Systems GmbH and Neusoft Europe AG, a subsidiary of Neusoft, are guarantors under the terms of the Asset Purchase Agreement and the Services Agreement. In the first quarter of fiscal year 2013, we entered into a contract with Neusoft to develop certain software to be integrated into certain infotainment platforms for a customer. As of December 31, 2012, we have paid Neusoft approximately $4.1 million (€3.1 million) which we have classified as a Current asset in our Condensed Consolidated Balance Sheet. Upon acceptance of the purchased software the asset will be reclassified as capitalized software and will be amortized over the future revenue stream of the products to which it relates. During the three months ended December 31, 2012 and 2011, we incurred total expenses of $8.6 million in each period, for engineering and software development services with Neusoft Technology and Neusoft. During the six months ended December 31, 2012 and 2011, we incurred total expenses of $15.5 million and $16.2 million, respectively, for engineering and software development services with Neusoft Technology and Neusoft.

Note 21 – Sale of Intellectual Property

Effective February 15, 2011, we entered into an agreement with a third party pursuant to which we monetized certain intellectual property rights. No income was recognized in connection with this transaction in the three and six months ended December 31, 2012. Income of less than $0.1 million and $0.3 million was recognized in connection with this transaction, for the three and six months ended December 31, 2011, respectively, which is included in our Condensed Consolidated Statements of Income under the caption Sale of intellectual property.

Note 22 – Acquisitions

Interchain

On July 31, 2012, we entered into an agreement to purchase certain assets and liabilities of Interchain (the “Interchain Acquisition”), a technology product company that specializes in developing telematics, fleet management, Android^® based in-vehicle infotainment and location-based solutions, for a purchase price of 45 million Indian Rupees or approximately $0.8 million, of which $0.3 million was paid on July 31, 2012 and $0.5 million was paid on October 13, 2012, which is the date the transaction closed (the “Interchain Acquisition Date”). The Interchain Acquisition is also subject to a 50 million Indian Rupee earn-out (approximately $0.9 million) which is payable upon the achievement of certain financial targets in the 12 month periods ending September 1, 2013 and September 2, 2014, which we recorded as a $0.3 million Non-current liability in our Condensed Consolidated Balance Sheet at December 31, 2012, based upon management’s estimate of its fair value. The total cost of the Interchain Acquisition including the fair value of the earn-out, was allocated to the assets acquired and liabilities assumed based on their fair values at the Interchain Acquisition Date. Goodwill of $0.6 million and intangibles of $0.4 million were recorded in connection with the acquisition. The operating results of the Interchain Acquisition, are included in our Infotainment segment. Pro-forma financial information has not been presented as the Interchain Acquisition is not material to our results of operations.

MWM Acoustics

On July 22, 2011 (the “MWM Acquisition Date”), we and our wholly-owned subsidiary, Harman Holding Limited (“Harman Holding”), entered into an equity securities purchase agreement with a group of sellers (the “MWM Sellers”), to acquire all of the issued and outstanding equity interests of MWM Acoustics, a leading provider of high performance embedded acoustic solutions (the “MWM Acquisition”), for a purchase price of $80.0 million (the “Fixed Purchase Price”), plus a working capital adjustment of $0.1

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million which was determined within 60 days of the MWM Acquisition Date and has been paid. On the MWM Acquisition Date, we and Harman Holding paid the MWM Sellers a total of $72.0 million. The remainder of the Fixed Purchase Price of $8.0 million was paid in December 2012. The MWM Acquisition is also subject to a $57.0 million earn-out, which is payable contingent upon the achievement of certain financial targets in the fiscal year ended June 30, 2014. Our preliminary valuation of the contingent consideration was originally valued at $22.1 million and was reduced to $9.6 million during the second quarter of fiscal year 2013, based on revised management estimates. Refer to Note 14 – Fair Value Measurements for more information.

The total cost of the MWM Acquisition, including the fair value of the contingent consideration, was allocated to the assets acquired and liabilities assumed based on their fair values at the MWM Acquisition Date, as follows:

	July 22, 2011
Cash and cash equivalents	$	1,465
Accounts receivable		4,434
Inventories		1,062
Other current assets		42
Current assets		7,003
Property, plant and equipment		273
Goodwill		79,757
Intangibles		20,600
Other noncurrent assets		1,091
Total assets		108,724
Accounts payable		5,187
Accrued liabilities		206
Total current liabilities		5,393
Other noncurrent liabilities		1,125
Total liabilities		6,518
Net assets	$	102,206

Goodwill and intangibles were recorded in connection with the acquisition based on third-party valuations and management’s estimates for those acquired intangible assets. Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Of the $79.8 million of goodwill recognized, approximately $35.6 million is deductible for tax purposes. Intangible assets included customer relationships of $19.2 million with an approximate useful life of 10 years and technology of $1.4 million with an approximate useful life of four years. Expenses of $0.9 million were recognized in connection with this acquisition and are included in SG&A in our Consolidated Statements of Income for the fiscal year ended June 30, 2012. The operating results of MWM Acoustics are included in our Lifestyle segment. Pro-forma financial information has not been presented as the MWM Acquisition is not material to our results of operations.

Note 23 – Subsequent Events

Dividend Declaration

On January 31, 2013, we declared a cash dividend of $0.15 per share for the quarter ended December 31, 2012. The quarterly dividend will be paid on February 26, 2013 to each stockholder of record as of the close of business on February 11, 2013.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

General

The following discussion should be read in conjunction with the accompanying unaudited Condensed Consolidated Financial Statements and the related notes included in Item 1 of this Quarterly Report on Form 10-Q, and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K, for the fiscal year ended June 30, 2012 (our “2012 Annual Report”). This discussion contains forward-looking statements which are based on our current expectations and experience and our perception of historical trends, current market conditions, including customer acceptance of our new products, current economic data, expected future developments, foreign currency exchange rates, and other factors that we believe are appropriate under the circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements. Unless otherwise indicated, “Harman,” “our company,” “we,” “our,” and “us” are used interchangeably to refer to Harman International Industries, Incorporated and its consolidated subsidiaries.

Executive Overview

We believe we are a worldwide leader in the development, manufacturing and marketing of high quality, high fidelity audio products and electronic systems, as well as digitally integrated audio and infotainment systems for the automotive industry. We have developed a broad range of product offerings which we sell in our principal markets under our renowned brand names, including AKG^®, Crown^®, JBL^®, Infinity^®, Harman/Kardon^®, Lexicon^®, dbx^®, BSS^®, Studer^®, Soundcraft^®, Mark Levinson^®, Becker^®, Revel^®, Logic 7^® and Selenium^®. We have built these brands by developing our engineering, manufacturing and marketing competencies, and have employed these resources to establish our company as a leader in the markets we serve.

We report our business on the basis of four segments. Our Infotainment, Lifestyle and Professional segments are based on our strategic approach to the markets and customers we serve. Our fourth segment, Other, primarily includes compensation, benefit and occupancy costs for corporate employees, net of allocations and expenses associated with new technology innovation and our corporate brand identity campaign.

We believe that innovation is an important element to gaining market acceptance of our products and strengthening our market position. We have a history of leveraging our continuous technological innovation across all of the markets we serve. We have a well-deserved reputation for delivering premium audio and infotainment solutions across a full spectrum of applications. We believe that our technological innovation, the quality of our products and our reputation for on-time delivery have resulted in Harman being awarded a substantial amount of Infotainment and Lifestyle business. As of December 31, 2012, we have a cumulative estimated $15.9 billion of future awarded Infotainment and Lifestyle automotive business, which represents the estimated future lifetime net sales for all customers. This amount does not represent firm customer orders. We calculate our awarded business using various assumptions, which we update annually, including global vehicle production forecasts, customer take rates for our products, revisions to product life cycle estimates and the impact of annual price reductions, among other factors. We update our estimates quarterly by adding the value of new awards received and subtracting sales recorded during the quarter. We believe our currently awarded automotive business will position us well for follow-on and new business with these existing customers.

Our management uses the amount of our future awarded business for short—and long-term budgeting and forecasting, development of earnings guidance and for planning future corporate investment and other activities, such as capital expenditures and restructuring. Our future awarded business is also an input used to approximate our enterprise value. We believe our investors utilize this information for a number of reasons, including evaluating our future financial performance over time, to model our financial results of operations, to understand the risks inherent in our current operating plan, and as an input to approximate our enterprise value. However, our estimates of future awarded automotive business are forward-looking statements and may not actually be achieved. See the risk factor “We may not realize sales represented by awarded business” in Item 1A “Risk Factors” of our 2012 Annual Report.

Our products are sold worldwide, with the largest markets located in the United States and Germany. In the United States, our primary manufacturing facilities are located in Kentucky, Indiana and Utah. Outside of the United States, we have manufacturing facilities in Austria, Brazil, China, Hungary, France, Germany, Mexico and the United Kingdom.

Our sales and earnings may vary due to the production schedules and model year changeovers of our automotive customers, the holiday buying season for home audio products, customer acceptance of our products, the timing of new product introductions, product offerings by our competitors and general economic conditions. Since most of our businesses operate using local currencies, our reported sales and earnings may also fluctuate due to fluctuations in foreign currency exchange rates, especially with respect to the value of the Euro and the U.S. Dollar.

We believe significant opportunities exist to grow our business in all three of our business segments in emerging markets such as Brazil, Russia, India and China (“BRIC”). To execute on this strategy, we have hired dedicated country staff and managers in these markets. During the three months ended December 31, 2012, sales decreased in these emerging markets to $127.9 million, a decrease

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of $9.0 million, or 7.0 percent over the prior fiscal year. Excluding China, the BRIC countries sales increased $5.1 million to $41.6 million, an increase of 14.1 percent during the three months ended December 31, 2012, compared to the same period in the prior year. During the six months ended December 31, 2012, sales increased in these emerging markets to $268.7 million, an increase of $17.1 million, or 7.0 percent over the prior fiscal year. Excluding China, the BRIC countries sales increased $9.8 million to $80.7 million, an increase of 13.8 percent during the six months ended December 31, 2012, compared to the same period in the prior year. We expect our market share to continue to grow significantly in these countries.

We continue to roll out our global marketing campaign featuring some of the world’s most prominent artists such as Jennifer Lopez, Sir Paul McCartney, Maroon 5 and Tim McGraw in order to increase brand awareness and support growth and market share gains across our entire business.

Critical Accounting Policies

For the six months ended December 31, 2012, there were no significant changes to our critical accounting policies and estimates from those disclosed in the consolidated financial statements and the related notes included in our 2012 Annual Report, except for recently adopted accounting standards disclosed in Note 2 – New Accounting Standards in the Notes to the Condensed Consolidated Financial Statements.

Recently Issued Accounting Standards

Refer to Note 2 – New Accounting Standards in the Notes to the Condensed Consolidated Financial Statements for a summary of recently issued accounting standards.

Results of Operations

Net Sales

Net sales for the three months ended December 31, 2012 were $1.056 billion compared to $1.127 billion in the same period in the prior year, a decrease of 6.3 percent or 3.9 percent excluding foreign currency translation. Net sales decreased in our Infotainment and Professional segments. The decrease was primarily due to the economic slowdown in Europe which significantly impacted automotive production. Sales in our Professional segment were similarly affected by the recession in Europe and by delays in capital projects in the U.S. and China pending the outcome of key presidential elections during the second fiscal quarter and unfavorable foreign currency translation of $28.3 million.

Net sales for the six months ended December 31, 2012 were $2.054 billion compared to $2.178 billion in the same period in the prior year, a decrease of 5.7 percent or 1.1 percent excluding foreign currency translation. Net sales decreased in all of our segments. The decrease was primarily due to the economic slowdown in Europe which significantly impacted automotive production. Sales in our Professional segment were similarly affected by the recession in Europe and by delays in capital projects in the U.S. and China pending the outcome of key presidential elections during the second fiscal quarter and unfavorable foreign currency translation of $100.3 million. In addition, prior year sales were exceptionally robust due to a surge in vehicle production to fulfill pent-up demand and one-time competitive replacement following interruptions associated with the tsunami in Japan.

A summary of our net sales by business segment is presented below:

	Three Months Ended December 31,										Six Months Ended December 31,
	2012		%			2011		%			2012		%			2011		%
Net sales:
Infotainment	$	540,303		51	%	$	599,899		53	%	$	1,100,827		54	%	$	1,203,157		55	%
Lifestyle		371,576		35	%		368,754		33	%		663,274		32	%		668,593		31	%
Professional		143,506		14	%		158,376		14	%		287,185		14	%		305,882		14	%
Other		257		0	%		0		0	%		2,549		0	%		0		0	%
Total	$	1,055,642		100	%	$	1,127,029		100	%	$	2,053,835		100	%	$	2,177,632		100	%

Infotainment – Net sales for the three months ended December 31, 2012 decreased $59.6 million, or 9.9 percent, compared to the same period in the prior year, and decreased 7.0 percent excluding foreign currency translation. The decrease in net sales was primarily due to lower European automotive production due to the lower demand in Western Europe, including Germany and unfavorable foreign currency translation of $18.8 million. Due to the declining economic conditions, several European original equipment manufacturers extended their holiday shutdown.

Net sales for the six months ended December 31, 2012 decreased $102.3 million, or 8.5 percent, compared to the same period in the prior year, and decreased 2.8 percent excluding foreign currency translation. The decrease in net sales was primarily due to lower European automotive production due to the lower demand in Western Europe, including Germany

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and unfavorable foreign currency translation of $70.5 million. In addition, prior year sales were exceptionally robust due to the inability of a competitor to supply its customers as a result of the Japanese earthquake and tsunami in fiscal year 2011.

Lifestyle – Net sales for the three months ended December 31, 2012 increased $2.8 million, or 0.8 percent, compared to the same period in the prior year, and increased 3.0 percent excluding foreign currency translation. The increase in net sales is due to robust demand for our new home and multimedia products, partially offset by negative impacts in car audio due to lower European automotive production due to the lower demand in Western Europe, including Germany.

Net sales for the six months ended December 31, 2012 decreased $5.3 million, or 0.8 percent, compared to the same period in the prior year, and increased 3.0 percent excluding foreign currency translation. The decrease in net sales was driven by unfavorable foreign currency translation of $24.4 million, lower sales in car audio due to lower European automotive production due to the lower demand in Western Europe, including Germany. These decreases were partially offset by robust demand for our new home and multimedia products.

Professional – Net sales for the three months ended December 31, 2012 decreased $14.9 million, or 9.4 percent, compared to the same period in the prior year, and decreased 8.4 percent excluding foreign currency translation. The decrease in net sales was primarily due to delays in capital projects in the U.S. and China pending the outcome of key presidential elections during the second fiscal quarter and because of the recession in Europe. In addition, Hurricane Sandy caused a short-term delay related to certain capital projects in the Northeast and unfavorable foreign currency translation of $1.6 million.

Net sales for the six months ended December 31, 2012 decreased $18.7 million, or 6.1 percent, compared to the same period in the prior year, and decreased 4.4 percent excluding foreign currency translation. The decrease in net sales was primarily due to delays in capital projects in the U.S. and China pending the outcome of key presidential elections during the second fiscal quarter and because of the recession in Europe. In addition, Hurricane Sandy caused a short-term delay related to certain capital projects in the Northeast and unfavorable foreign currency translation of $5.5 million.

Gross Profit

Gross profit as a percentage of net sales decreased 1.4 percentage points to 25.7 percent for the three months ended December 31, 2012 compared to 27.1 percent of net sales in the same period in the prior year. The decrease in overall gross profit as a percentage of net sales was primarily in our Infotainment and Lifestyle segments, due to reduced leverage of fixed costs on lower sales and unfavorable product mix.

Gross profit as a percentage of net sales decreased 0.4 percentage points to 26.8 percent for the six months ended December 31, 2012 compared to 27.2 percent of net sales in the same period in the prior year. The decrease in overall gross profit as a percentage of net sales was primarily in our Infotainment segment, due to reduced leverage of fixed costs on lower sales and unfavorable product mix related to the higher margin competitive substitution business related to the Japanese earthquake and tsunami recognized in the prior year, partially offset by improved mitigation of neodymium material cost impacts and productivity gains in our Lifestyle and Professional segments.

A summary of our gross profit by business segment is presented below:

	Three Months Ended December 31,										Six Months Ended December 31,
	2012		Percentage of Net Sales			2011		Percentage of Net Sales			2012		Percentage of Net Sales			2011		Percentage of Net Sales
Gross profit:
Infotainment	$	113,163		20.9	%	$	138,665		23.1	%	$	241,658		22.0	%	$	282,775		23.5	%
Lifestyle (1)		102,401		27.6	%		108,510		29.4	%		196,715		29.7	%		197,510		29.5	%
Professional (1)		55,967		39.0	%		58,358		36.8	%		111,207		38.7	%		112,884		36.9	%
Other		262		*			6		*			460		*			12		*
Total	$	271,793		25.7	%	$	305,539		27.1	%	$	550,040		26.8	%	$	593,181		27.2	%

* Percent not meaningful.

⁽¹⁾ Gross profit for the three and six months ended December 31, 2011, has been revised to reflect a change in the measurement of segment operating profit due to a change in the allocation of intercompany royalties between the Lifestyle and Professional segments.

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Infotainment – Gross profit as a percentage of net sales decreased 2.2 percentage point to 20.9 percent for the three months ended December 31, 2012 compared to the same period in the prior year. The decrease in gross profit as a percentage of net sales was primarily due to reduced leverage of fixed costs on lower sales and slightly higher warranty expense.

Gross profit as a percentage of net sales decreased 1.5 percentage point to 22.0 percent for the six months ended December 31, 2012 compared to the same period in the prior year. The decrease in gross profit as a percentage of net sales was primarily due to reduced leverage of fixed costs on lower sales and unfavorable product mix, such as the higher margin competitive substitution business recognized in the prior year.

Lifestyle – Gross profit as a percentage of net sales decreased 1.8 percentage points to 27.6 percent for the three months ended December 31, 2012 compared to the same period in the prior year. The decrease in gross profit as a percentage of net sales was due to unfavorable product mix.

Gross profit as a percentage of net sales increased 0.2 percentage points to 29.7 percent for the six months ended December 31, 2012 compared to the same period in the prior year. The increase in gross profit as a percentage of net sales was due to improved mitigation of neodymium material cost impacts and the ramp up of new production facilities in emerging markets, partially offset by unfavorable product mix.

Professional – Gross profit as a percentage of net sales increased 2.2 percentage points to 39.0 percent for the three months ended December 31, 2012 compared to the same period in the prior year. The increase in gross profit as a percentage of net sales was primarily due to improved profitability of new product introductions.

Gross profit as a percentage of net sales increased 1.8 percentage points to 38.7 percent for the six months ended December 31, 2012 compared to the same period in the prior year. The increase in gross profit as a percentage of net sales was primarily due to profitability of new product introductions, improved mitigation of neodymium material cost impacts and productivity gains.

Selling, General and Administrative Expenses

Selling, general and administrative expenses (“SG&A”) were $203.4 million for the three months ended December 31, 2012 compared to $210.2 million in the same period in the prior year, a decrease of $6.8 million. As a percentage of net sales, SG&A increased 0.7 percentage points in the three months ended December 31, 2012 compared to the same period in the prior year. The decrease in SG&A was primarily due to a $12.5 million reduction in our contingent consideration liability related to the acquisition of Harman Embedded Audio, LLC (formerly known as MWM Acoustics LLC) and certain related entities (“MWM Acoustics”), favorable foreign currency translation of $4.4 million, partially offset by the non-recurring $4.0 million earthquake/tsunami related business interruption insurance settlement received in the prior year. Research and development expenses (“R&D”) decreased $6.9 million to $71.5 million, or 6.8 percent of net sales in the three months ended December 31, 2012, compared to $78.4 million, or 7.0 percent of net sales in the same period in the prior year, primarily due to higher customer reimbursements and favorable foreign currency translation of $2.0 million, partially offset by higher gross spending.

SG&A were $402.6 million for the six months ended December 31, 2012 compared to $423.9 million in the same period in the prior year, a decrease of $21.3 million. As a percentage of net sales, SG&A increased 0.1 percentage points in the six months ended December 31, 2012 compared to the same period in the prior year. The decrease in SG&A was primarily due to favorable foreign currency translation of $17.9 million, and a $12.5 million reduction in our contingent consideration liability related to the acquisition of MWM Acoustics, partially offset by the non-recurring $4.0 million earthquake/tsunami related business interruption insurance settlement received in the prior year. R&D decreased $14.8 million to $149.5 million, or 7.3 percent of net sales in the six months ended December 31, 2012, compared to $164.3 million, or 7.5 percent of net sales in the same period in the prior year, primarily due to higher customer reimbursements and favorable foreign currency translation of $9.0 million, partially offset by higher gross spending.

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A summary of SG&A by business segment is presented below:

	Three Months Ended December 31,										Six Months Ended December 31,
	2012		Percentage of Net Sales			2011		Percentage of Net Sales			2012		Percentage of Net Sales			2011		Percentage of Net Sales
SG&A:
Infotainment	$	82,912		15.3	%	$	88,737		14.8	%	$	166,733		15.1	%	$	186,037		15.5	%
Lifestyle (1)		52,570		14.1	%		58,899		16.0	%		109,625		16.5	%		118,581		17.7	%
Professional (1)		36,225		25.2	%		36,197		22.9	%		71,694		25.0	%		74,703		24.4	%
Other		31,704		*			26,341		*			54,515		*			44,605		*
Total	$	203,411		19.3	%	$	210,174		18.6	%	$	402,567		19.6	%	$	423,926		19.5	%

* Percent not meaningful.

⁽¹⁾ SG&A for the three and six months ended December 31, 2011, has been revised to reflect a change in the measurement of segment operating profit due to a change in the allocation of intercompany royalties between the Lifestyle and Professional segments.

Infotainment – SG&A decreased $5.8 million to $82.9 million for the three months ended December 31, 2012 compared to the same period in the prior year. As a percentage of net sales, SG&A increased 0.5 percentage points to 15.3 percent for the three months ended December 31, 2012 compared to the same period in the prior year. The decrease in SG&A was primarily due to favorable foreign currency translation of $2.8 million. R&D decreased $10.0 million to $44.4 million, or 8.2 percent of net sales in the three months ended December 31, 2012, compared to $54.4 million, or 9.1 percent of net sales in the same period in the prior year, primarily due to higher customer reimbursements and favorable foreign currency translation of $1.8 million, partially offset by higher gross spending of $7.7 million.

SG&A decreased $19.3 million to $166.7 million for the six months ended December 31, 2012 compared to the same period in the prior year. The decrease in SG&A was primarily due to favorable foreign currency translation of $12.2 million and the prior year impact of $4.6 million of costs relating to delayed delivery of product to an infotainment customer. As a percentage of net sales, SG&A decreased 0.4 percentage points to 15.1 percent for the six months ended December 31, 2012 compared to the same period in the prior year. R&D decreased $15.1 million to $98.5 million, or 8.9 percent of net sales in the six months ended December 31, 2012, compared to $113.6 million, or 9.4 percent of net sales in the same period in the prior year, primarily due to higher customer reimbursements and favorable foreign currency translation of $7.9 million, partially offset by higher gross spending of $10.5 million.

Lifestyle – SG&A decreased $6.3 million to $52.6 million for the three months ended December 31, 2012, compared to the same period in the prior year, primarily due to a $12.5 million reduction in our contingent consideration liability related to the acquisition of MWM Acoustics, partially offset by the non-recurring $4.0 million earthquake/tsunami related business interruption insurance settlement received in the prior year and favorable foreign currency translation of $1.2 million. As a percentage of net sales, SG&A decreased 1.9 percentage points to 14.1 percent for the three months ended December 31, 2012 compared to the same period in the prior year. R&D increased $4.4 million to $17.9 million, or 4.8 percent of net sales in the three months ended December 31, 2012 compared to $13.5 million, or 3.7 percent of net sales in the same period in the prior year, primarily due to new product introductions and R&D incurred to accelerate the development of scalable branded audio.

SG&A decreased $9.0 million to $109.6 million for the six months ended December 31, 2012, compared to the same period in the prior year, primarily due to a $12.5 million reduction in our contingent consideration liability related to the acquisition of MWM Acoustic and favorable foreign currency translation of $4.3 million, partially offset by the non-recurring $4.0 million earthquake/tsunami related business interruption insurance settlement received in the prior year. As a percentage of net sales, SG&A decreased 1.2 percentage points to 16.5 percent for the six months ended December 31, 2012 compared to the same period in the prior year. R&D increased $4.0 million to $32.4 million, or 4.9 percent of net sales in the six months ended December 31, 2012 compared to $28.3 million, or 4.2 percent of net sales in the same period in the prior year, primarily due to R&D incurred to accelerate the development of scalable branded audio, partially offset by favorable foreign currency translation of $0.8 million.

Professional – SG&A was flat at $36.2 million for the three months ended December 31, 2012, compared to the same period in the prior year. As a percentage of net sales, SG&A increased 2.3 percentage points to 25.2 percent for the three months ended December 31, 2012 compared to the same period in the prior year. R&D decreased $1.6 million to $7.1 million, or 5.0 percent of net sales in the three months ended December 31, 2012 compared to $8.7 million, or 5.5 percent of net sales in the same period in the prior year, primarily due to productivity improvements.

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SG&A decreased $3.0 million to $71.7 million for the six months ended December 31, 2012, compared to the same period in the prior year, primarily due to lower sales volumes, R&D, cost saving initiatives and favorable foreign currency translation of $1.3 million. As a percentage of net sales, SG&A decreased 0.6 percentage points to 25.0 percent for the six months ended December 31, 2012 compared to the same period in the prior year. R&D decreased $3.2 million to $14.5 million, or 5.1 percent of net sales in the six months ended December 31, 2012 compared to $17.8 million, or 5.8 percent of net sales in the same period in the prior year, primarily due to productivity improvements.

Other – Other SG&A includes compensation, benefit and occupancy costs for corporate employees, new technology innovation and expenses associated with our corporate brand identity campaign. Other SG&A increased $5.4 million to $31.7 million for the three months ended December 31, 2012 compared to the same period in the prior year, primarily due to higher marketing expenses related to our global brand awareness campaign. Other SG&A increased $9.9 million to $54.5 million for the six months ended December 31, 2012 compared to the same period in the prior year, primarily due to stock compensation forfeitures in the prior year, and higher marketing expenses related to our global brand awareness campaign.

Restructuring

Our restructuring program that is designed to improve our global footprint, cost structure, technology portfolio, human resources and internal processes continues.

For the three and six months ended December 31, 2012 and 2011, we continued to refine and expand on activities launched in prior years. During the three and six months ended December 31, 2012, no significant new programs were launched. During the three and six months ended December 31, 2011, one significant new program was launched to optimize certain functions in our Professional segment.

A summary and components of our restructuring initiatives are presented below and include accruals for new programs as well as revisions to estimates, both increases and decreases, to programs accrued in prior periods:

	Severance Related Costs			Third Party Contractor Termination Costs			Facility Closure and Other Related Costs			Asset Impairments(1)			Total
Liability, June 30, 2012	$	19,938		$	17		$	10,839		$	0		$	30,794
Expense (2)		(902	)		4			969			995			1,066
Accumulated depreciation offset		0			0			0			(995	)		(995	)
Payments		(6,774	)		(22	)		(2,414	)		0			(9,210	)
Foreign currency translation		513			1			(1	)		0			513
Liability, December 31, 2012	$	12,775		$	0		$	9,393		$	0		$	22,168
Liability, June 30, 2011	$	31,762		$	0		$	7,860		$	0		$	39,622
Expense (2)		841			280			713			1,078			2,912
Accumulated depreciation offset		0			0			0			(1,078	)		(1,078	)
Payments		(3,072	)		(280	)		(1,845	)		0			(5,197	)
Foreign currency translation		(2,144	)		0			0			0			(2,144	)
Liability, December 31, 2011	$	27,387		$	0		$	6,728		$	0		$	34,115

⁽¹⁾ Credits related to restructuring charges for accelerated depreciation and inventory provisions are recorded against the related assets in Property, plant and equipment, net or Inventories in our Condensed Consolidated Balance Sheets and do not impact the restructuring liability.

⁽²⁾ Restructuring expenses noted above are primarily in SG&A in our Condensed Consolidated Statements of Income. Asset impairments which consist of accelerated depreciation and inventory provisions are primarily in Cost of sales in our Condensed Consolidated Statements of Income.

Restructuring liabilities are recorded in Accrued liabilities and Other non-current liabilities in our Condensed Consolidated Balance Sheets.

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Restructuring expenses by reporting business segment are presented below:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Infotainment	$	(565	)	$	(415	)	$	(295	)	$	92
Lifestyle		858			190			751			340
Professional		(436	)		1,077			(385	)		1,357
Other		0			45			0			45
Total		(143	)		897			71			1,834
Asset Impairments		955			0			995			1,078
Total	$	812		$	897		$	1,066		$	2,912

Sale of Intellectual Property

Effective February 15, 2011, we entered into an agreement with a third party pursuant to which we monetized certain intellectual property rights. No income was recognized in connection with this transaction in the three and six months ended December 31, 2012. Income of less than $0.1 million and $0.3 million was recognized in connection with this transaction, for the three and six months ended December 31, 2011, respectively, which is included in our Condensed Consolidated Statements of Income under the caption Sale of intellectual property.

Goodwill

During the three and six months ended December 31, 2012, we recorded $0.6 million of goodwill in our Infotainment segment associated with the acquisition of Interchain Solution Private Limited. During the three and six months ended December 31, 2011, we recorded $0 and $79.8 million, respectively of goodwill in our Lifestyle segment, associated with the acquisition of MWM Acoustics. Refer to Note 22 – Acquisitions in the Notes to the Condensed Consolidated Financial Statements for more information.

We did not recognize any impairment charges in our Condensed Consolidated Statements of Income in the three and six months ended December 31, 2012 and 2011.

Operating Income

Operating income for the three months ended December 31, 2012 was $68.4 million, or 6.5 percent of net sales compared to operating income of $95.4 million, or 8.5 percent of net sales, in the same period in the prior year. The decrease in operating income was primarily due to lower net sales and gross profit, partially offset by lower SG&A in the three months ended December 31, 2012 compared to the same period in the prior year.

Operating income for the six months ended December 31, 2012 was $147.5 million, or 7.2 percent of net sales compared to operating income of $169.6 million, or 7.8 percent of net sales, in the same period in the prior year. The decrease in operating income was primarily due to lower net sales and gross profit, partially offset by lower SG&A in the six months ended December 31, 2012 compared to the same period in the prior year.

Interest Expense, Net

Interest expense, net, was $3.7 million for the three months ended December 31, 2012 compared to $4.1 million of interest expense, net, in the same period in the prior year. Interest expense, net, for the three months ended December 31, 2012 included interest income of $0.6 million and interest expense of $4.3 million, of which $1.8 million was cash interest and $2.5 million was noncash interest associated with the amortization of the debt discount on the 1.25 percent convertible senior notes due October 15, 2012 (the “Convertible Senior Notes”) and amortization of debt issuance costs on the Convertible Senior Notes and the Multi-Currency Credit Agreement, entered into on December 1, 2010, as amended on December 15, 2011 and July 2, 2012 (the “Credit Agreement”) and the Multi-Currency Credit Agreement entered into on October 10, 2012 (the “New Credit Agreement”). Interest expense, net, for the three months ended December 31, 2011 included interest income of $2.1 million and interest expense of $6.2 million, of which $1.4 million was cash interest and $4.8 million was noncash interest associated with the amortization of the debt discount on the Convertible Senior Notes and amortization of debt issuance costs on the Convertible Senior Notes and the Credit Agreement.

Interest expense, net, was $9.7 million for the six months ended December 31, 2012 compared to $9.3 million of interest expense, net, in the same period in the prior year. Interest expense, net, for the six months ended December 31, 2012 included interest income of

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$1.3 million and interest expense of $11.0 million, of which $3.6 million was cash interest and $7.4 million was noncash interest associated with the amortization of the debt discount on the Convertible Senior Notes and amortization of debt issuance costs on the Convertible Senior Notes, the Credit Agreement and the New Credit Agreement (explained in more detail below under the caption “New Credit Agreement and Term Facility”). Interest expense, net, for the six months ended December 31, 2011 included interest income of $4.3 million and interest expense of $13.6 million, of which $3.9 million was cash interest and $9.7 million was noncash interest associated with the amortization of the debt discount on the Convertible Senior Notes and amortization of debt issuance costs on the Convertible Senior Notes and the Credit Agreement.

Foreign Exchange Losses, Net

Foreign currency exchange gains and losses resulting from the remeasurement of certain foreign currency denominated monetary assets and liabilities are included in Foreign exchange losses, net in our Condensed Consolidated Statements of Income. Effective July 1, 2011, we changed the functional currency of two of our foreign subsidiaries to the U.S. Dollar to reflect a change in the currency in which such subsidiaries primarily generate and expend cash. We also include gains and losses from forward points on certain derivative foreign currency forward contracts that are excluded from hedge effectiveness testing in Foreign exchange losses, net in our Condensed Consolidated Statements of Income. Refer to Note 13 – Derivatives in the Notes to the Condensed Consolidated Financial Statements for more information.

Miscellaneous, Net

Net miscellaneous expenses consisting primarily of bank charges were $1.4 million for the three months ended December 31, 2012, compared to $2.0 million in the same period in the prior year and were $2.6 million for the six months ended December 31, 2012, compared to $3.4 million in the same period in the prior year.

Income Tax Expense, Net

Our provision for income taxes is based on an estimated annual tax rate for the year applied to federal, state and foreign income. Income tax expense for the three months ended December 31, 2012 and 2011 was $14.8 million and $22.7 million, respectively. The effective tax rate for the three months ended December 31, 2012 and 2011 was 23.7 percent and 27.7 percent, respectively. The change in the effective tax rate for the three months ended December 31, 2012 compared to same period in the prior year was primarily due to the tax effect of foreign exchange gains recorded in the same period in the prior year, foreign exchange losses recorded in the three months ended December 31, 2012 and the mix of income in certain key foreign jurisdictions.

Income tax expense for the six months ended December 31, 2012 and 2011 was $32.0 million and $37.6 million, respectively. The effective tax rate for the six months ended December 31, 2012 and 2011 was 23.9 percent and 25.9 percent, respectively. The change in the effective tax rate for the six months ended December 31, 2012 compared to same period in the prior year, was primarily due to the tax effect of foreign exchange gains and losses, as noted above, and the mix of income in certain key foreign jurisdictions

On January 2, 2013 the American Taxpayer Relief Act of 2012 (H.R. 8) (the “Act”) was signed into law. The Act reinstated the research and experimentation (R&E) credit retroactively from January 1, 2012. The tax implications of the Act have not been included in our results for the three and six month ended December 31, 2012. We estimate that the inclusion of the corporate tax provisions of the Act will result in a discrete tax benefit of $4.7 million that will be included in our third quarter results and a $2.3 million tax benefit that will be included as a component of our annual effective tax rate.

We have net deferred tax assets of $333.9 million primarily consisting of deferred deductions, R&D credits, and foreign tax credits. We have evaluated all available evidence, both positive and negative, and based on the weight of all available evidence we continue to believe that our net deferred tax assets are fairly reflected in our Condensed Consolidated Balance Sheets. If the results of our operations do not meet our current expectations, our net deferred tax assets may become impaired.

As of December 31, 2012, unrecognized tax benefits and the related interest were $35.8 million and $1.7 million, respectively; all but $1.7 million would affect the tax rate if recognized. During the three and six months ended December 31, 2012 we recorded tax reserves on uncertain tax positions in the amount of $0.7 million and $1.6 million, respectively. During the three and six months ended December 31, 2012, we recorded additional interest expense on uncertain tax positions of $0.4 million and $0.5 million, respectively.

Financial Condition

Liquidity and Capital Resources

We primarily finance our working capital requirements through cash generated by operations, borrowings under the New Credit Agreement and trade credit. Cash and cash equivalents were $526.3 million at December 31, 2012 compared to $617.4 million at June 30, 2012. During the six months ended December 31, 2012, our cash and cash equivalents balance decreased $91.1 million. The decrease in cash was primarily due to $100.0 million of cash being used to repay a portion of the outstanding balance of $400.0 million on our Convertible Senior Notes, increases in inventory and accounts receivable and decreases in accounts payable and accrued liabilities, partially offset by sales of short-term investments. We also used cash to make investments in our manufacturing facilities, fund product development and meet the working capital needs of our business segments.

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We believe that our existing cash and cash equivalents of $526.3 million and our short-term investments of $81.2 million at December 31, 2012, together with our expected future operating cash flows, and our availability of $741.3 million under our New Credit Agreement, will be sufficient to cover our working capital needs, debt service, our share buy-back program, capital expenditures, including major investments related to manufacturing and research facilities in emerging markets, acquisitions, purchase commitments and quarterly dividends for at least the next 12 months.

Our ability to maintain positive liquidity going forward depends on our ability to continue to generate cash from operations and maintain access to the financial markets, both of which are subject to general economic, financial, competitive, legislative, regulatory and other market factors beyond our control. We earn a significant amount of our operating income outside the U.S., the majority of which is deemed to be permanently reinvested in foreign jurisdictions. For at least the next 12 months, we have sufficient cash in the U.S., availability under our New Credit Agreement and forecasted domestic cash flow to sustain our operating activities and cash commitments for investing and financing activities, such as quarterly dividends and repayment of debt. In addition, we expect existing foreign cash and cash equivalents, short-term investments, and cash flows from operations to continue to be sufficient to fund our foreign operating activities and cash commitments for investing activities, such as material capital expenditures, for at least the next 12 months. As of December 31, 2012, Cash and cash equivalents of $191.8 million were held in the U.S. and Cash and cash equivalents and Short-term investments of $334.5 million and $81.2 million, respectively, were held by us in foreign jurisdictions.

Operating Activities

For the six months ended December 31, 2012, our net cash used in operations was $52.8 million compared to net cash provided by operations of $20.8 million in the same period in the prior year. The decrease in operating cash flows compared to the same period in the prior year was primarily due to higher payments for accounts payable and accrued liabilities and lower net income. At December 31, 2012, working capital, excluding cash, short-term investments and short-term debt, was $517.0 million, compared with $309.6 million at June 30, 2012. The increase was primarily due to higher receivable and inventory balances and lower accounts payable and accrued liabilities.

Investing Activities

Net cash provided by investing activities was $73.7 million for the six months ended December 31, 2012, compared to $27.1 million used in investing activities in the same period in the prior year. The increase in net cash provided by investing activities compared to the same period in the prior year was primarily due to lower purchases of short-term investments, lower cash paid for acquisitions and lower capital expenditures. Short-term investments consist of commercial paper, short-term deposits and government bonds, time deposits, and treasury bills with original maturities of greater than three months and less than one year. Capital expenditures for the six months ended December 31, 2012 were $42.6 million, in support of new Infotainment and Lifestyle awards, compared to $52.9 million for the same period in the prior year. We expect that our run rate for capital expenditures will slightly increase during fiscal year 2013.

Financing Activities

Net cash used in financing activities was $125.8 million in the six months ended December 31, 2012, compared to $21.1 million used in financing activities in the same period in the prior year. The increase in cash used was primarily due to repayments of the Convertible Senior Notes (explained in more detail below), higher dividends to shareholders, repurchases of common stock and debt issuance costs, partially offset by proceeds from the new term loan facility and share-based payment arrangements.

New Credit Agreement

On October 10, 2012, we and Harman Holding GmbH & Co. KG (“Harman KG”), entered into the New Credit Agreement with a group of banks. The New Credit Agreement provides for (i) a five-year unsecured multi-currency revolving credit facility (the “New Revolving Credit Facility”) in the amount of $750 million (the “Aggregate Revolving Commitment”) with availability in currencies other than the United States Dollar of up to $550 million and (ii) a five-year unsecured United States Dollar term loan facility (the “Term Facility” and collectively with the New Revolving Credit Facility, the “Facilities”) in the amount of $300 million (the “Aggregate Term Commitment” and collectively with the Aggregate Revolving Commitment, the “Aggregate Commitment”). Up to $60 million of the Aggregate Revolving Commitment will be available for letters of credit. Subject to certain conditions set forth in the New Credit Agreement, the Aggregate Commitment may be increased by up to $250 million. We may select interest rates for the Facilities equal to (i) LIBOR plus an applicable margin or (ii) a base rate plus an applicable margin, which in each case is determined based on our credit rating. We are obligated to pay a facility fee on the Aggregate Revolving Commitment, whether drawn or undrawn, which is determined based on our credit rating. Any proceeds from borrowings under the Facilities may be used for general corporate purposes.

The New Credit Agreement includes certain financial condition covenants, including covenants that do not permit us to allow (i) our ratio of consolidated EBITDA to consolidated cash interest expense to be less than 3.5:1.0 or (ii) our ratio of consolidated total debt to consolidated EBITDA to exceed 3.5:1.0, or following certain acquisitions, 4.0:1.0, each calculated as of the end of the applicable

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fiscal quarter on a rolling four-quarter basis. The terms “consolidated EBITDA,” “consolidated cash interest expense,” and “consolidated total debt” are defined in the New Credit Agreement.

The New Credit Agreement also contains certain negative covenants that limit, among other things, our ability to pay dividends, permit certain of our subsidiaries to incur debt, incur liens, make fundamental changes, sell assets, undertake transactions with affiliates and undertake sale and leaseback transactions. The Facilities are subject to acceleration upon certain specified events of default, including failure to make timely payments, breaches of representations or covenants, or a change of control, as such term is defined in the New Credit Agreement.

On October 10, 2012, in connection with the execution of the New Credit Agreement, we, Harman KG, and certain of our subsidiaries, entered into a guarantee agreement (the “New Guarantee Agreement”), that provides, among other things, that the obligations under the New Credit Agreement are guaranteed by us and each of the subsidiary guarantors named therein.

Upon the signing of the New Credit Agreement, we voluntarily terminated the Credit Agreement, as well as the guarantee and collateral agreement entered into in connection with the Credit Agreement. There were no outstanding borrowings under the Credit Agreement as of October 10, 2012, and no early termination penalties were incurred by us as a result of the termination of the Credit Agreement and all of the approximately $8.7 million of letters of credit that were previously outstanding under the Credit Agreement were deemed to be issued and outstanding under the New Credit Agreement.

On October 10, 2012, we borrowed $300 million under the Term Facility to finance, in part, the repayment of all the outstanding $400 million principal amount of Convertible Senior Notes and accrued and unpaid interest thereon. See “Convertible Senior Notes” below for additional information.

At December 31, 2012, there were no outstanding borrowings and approximately $8.7 million of outstanding letters of credit under the New Revolving Credit Facility and $300 million of outstanding borrowings under the Term Facility, of which $30 million is included in our Condensed Consolidated Balance Sheet as Current portion of long-term debt and $270.0 million is classified as Long-term debt. At December 31, 2012, unused available credit under the New Revolving Credit Facility was $741.3 million. In connection with the New Credit Agreement, we incurred $6.1 million of fees and other expenses which are included within Other assets in our Condensed Consolidated Balance Sheet at December 31, 2012. These costs will be amortized over the term of the New Credit Agreement to Interest expense, net in our Condensed Consolidated Statement of Income on a straight-line basis. In addition, during the three and six months ended December 31, 2012, we wrote off $1.1 million of debt issuance costs to Interest expense, net, associated with the Credit Agreement, which represented the portion of these costs that were attributed to the Credit Agreement.

At December 31, 2012, long-term debt maturing in each of the next five fiscal years and thereafter is as follows:

2013	$	15,000
2014		30,000
2015		35,625
2016		43,125
2017		135,000
Thereafter		41,250
Total	$	300,000

If we do not meet the forecast in our budgets, we could violate our debt covenants and, absent a waiver from our lenders or an amendment to the New Credit Agreement, we could be in default under the New Credit Agreement. As a result, our debt under the New Credit Agreement could become due, which would have a material adverse effect on our financial condition and results of operations. As of December 31, 2012, we were in compliance with all the financial covenants of the New Credit Agreement and expect to be in compliance for the next 12 months.

Convertible Senior Notes

At December 31, 2012 and June 30, 2012, we had $0 and $400 million of Convertible Senior Notes outstanding , which were originally issued on October 23, 2007 (the “Issuance Date”) and were due on October 15, 2012. The Convertible Senior Notes were issued at par and we paid interest at a rate of 1.25 percent per annum on a semiannual basis. On October 15, 2012, the maturity date for the Convertible Senior Notes,we repaid all of the outstanding $400 million principal amount of Convertible Senior Notes and accrued and unpaid interest thereon held by affiliates of Kohlberg Kravis Roberts & Co. (“KKR”) and Goldman Sachs Capital Partners (“GSCP”) and other investors. The repayment of principal was funded by $300 million of borrowings under the Term Facility and $100 million of cash on hand.

Total interest expense related to the Convertible Senior Notes for the three months ended December 31, 2012 and 2011 includes $0.2 million and $1.3 million, respectively, of contractual cash interest expense, an additional $0.7 million and $4.2 million of noncash

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interest expense, respectively, related to the amortization of the discount and$ 0.1 million and $0.2 million, respectively, related to the amortization of debt issuance costs. Total interest expense related to the Convertible Senior Notes for the six months ended December 31, 2012 and 2011 includes $1.5 million and $2.5 million, respectively, of contractual cash interest expense, an additional $5.0 million and $8.4 million of noncash interest expense, respectively, related to the amortization of the discount and $0.3 million and $0.4 million, respectively, related to the amortization of debt issuance costs

Our total debt, including short-term borrowings, at December 31, 2012 was $300.6 million, primarily comprised of outstanding borrowings under the Term Facility of $300.0 million. Also included in total debt at December 31, 2012 is short-term debt and long-term borrowings of $0.6 million.

Our total debt, including short-term borrowings, at June 30, 2012 was $400.7 million, or $395.7 million, net of discount, and was primarily comprised of $400.0 million of the Convertible Senior Notes, which are shown net of a discount of $5.0 million in our Condensed Consolidated Balance Sheet at June 30, 2012. Also included in total debt at June 30, 2012 is short-term debt and long-term borrowings of $0.6 million.

Credit Rating

On September 7, 2012, Standard & Poors Ratings Services (“S&P”) raised our corporate credit rating to the investment grade BBB–from BB+, citing improved margins and lower business risk. S&P also raised the issue rating on our senior unsecured notes to BB+ from BB. On October 11, 2012, Moody’s Investors Services raised our credit rating to Baa3 from Ba1, elevating us to investment-grade status, with the assignment of the Baa3 rating to the Facilities. We expect that the increase in our credit rating will enable us to continue to obtain credit in the future.

Equity

Total shareholders’ equity at December 31, 2012 was $1.619 billion compared with $1.529 billion at June 30, 2012. The increase is primarily due to higher net income. There were 145,866 shares of our common stock repurchased during the six months ended December 31, 2012 at a cost of $5.4 million.

Off-Balance Sheet Arrangements

We utilize off-balance sheet arrangements in our operations when we enter into operating leases for land, buildings and equipment in the normal course of business, which are not included in our Condensed Consolidated Balance Sheets. In addition, we had outstanding letters of credit of $8.7 million at December 31, 2012 and June 30, 2012 that were not included in our Condensed Consolidated Balance Sheets.

Business Outlook

Our future outlook has been negatively impacted due to changes in global economic conditions, in particular the European sovereign debt crisis and reduced rate of growth within the Chinese economy. This has driven a contraction in consumer discretionary spending, delays in capital expenditure projects and the accelerated ramp down of certain automotive customer programs, resulting in lower demand for our products. These unfavorable economic conditions are forecasted to remain in place for at least the next two quarters. The company plans to continue its investment in R&D and marketing programs during this recessionary period, which is intended to provide an accelerated rate of growth once more favorable economic conditions return.

We are planning on implementing restructuring initiatives in the second half of fiscal year 2013, which will eliminate approximately 500 jobs in high cost countries, resulting in operational savings of approximately $30 to $35 million in fiscal year 2014. We expect to record a restructuring charge of $30 to $35 million in the second half of fiscal year 2013.

Subsequent Events

Dividend Declaration

On January 31, 2013, we declared a cash dividend of $0.15 per share for the quarter ended December 31, 2012. The quarterly dividend will be paid on February 26, 2013 to each stockholder of record as of the close of business on February 11, 2013.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are required to include information about potential effects of changes in interest rates and currency exchange rates in our periodic reports filed with the Securities and Exchange Commission (“SEC”). Since December 31, 2012, there have been no material changes in the quantitative or qualitative aspects of our market risk profile. See Item 7A, Quantitative and Qualitative Disclosure About Market Risk included in our 2012 Annual Report.

Interest Rate Sensitivity/Risk

At December 31, 2012, interest on 100 percent of our borrowings was determined on a variable rate basis. The interest rates on the balances of our debt, cash and cash equivalents and short-term investments are subject to changes in U.S. and European short-term interest rates. To assess exposure to interest rate changes, we have performed a sensitivity analysis assuming a hypothetical 100 basis point increase or decrease in interest rates across all outstanding debt and investments. Our analysis indicates that the effect on net income for the six months ended December 31, 2012 of such an increase or decrease in interest rates would be approximately $2.4 million.

Foreign Currency Risk

We maintain significant operations in Germany, Hungary, China, the Netherlands, Austria, the United Kingdom, France, Brazil and Mexico. As a result, we are subject to market risks arising from changes in these foreign currency exchange rates, principally the change in the value of the Euro versus the U.S. Dollar. Refer to Note 13 – Derivatives in the Notes to the Condensed Consolidated Financial Statements for additional discussion on our financial risk management.

Our subsidiaries purchase products and raw materials and sell our products in various currencies. As a result, we may be exposed to cost changes relative to local currencies in these markets. To mitigate these transactional risks, we enter into foreign exchange contracts. Also, foreign currency positions are partially offsetting and are netted against one another to reduce exposure. We presently estimate the effect on income before income taxes for the six months ended December 31, 2012, based upon a recent estimate of foreign exchange transactional exposure, of a uniform strengthening or uniform weakening of the transaction currency rates of 10 percent, would be to increase or decrease income before income taxes by approximately $7.3 million. As of December 31, 2012, we had hedged a portion of our estimated foreign currency transactions using foreign exchange contracts, including forwards and options.

Changes in currency exchange rates, principally the change in the value of the Euro compared to the U.S. dollar have an impact on our reported results when the financial statements of foreign subsidiaries are translated into U.S. dollars. Over half our sales are denominated in Euros. The average exchange rate for the Euro versus the U.S. dollar for the six months ended December 31, 2012 decreased 7.8 percent from the same period in the prior fiscal year.

Competitive conditions in the markets in which we operate may limit our ability to increase prices in the event of adverse changes in currency exchange rates. For example, certain products made in Europe are sold in the U.S. Sales of these products are affected by the value of the U.S. Dollar relative to the Euro. Any weakening of the U.S. Dollar could depress the demand for these European manufactured products in the U.S. and reduce sales. However, due to the multiple currencies involved in our business and the netting effect of various simultaneous transactions, our foreign currency positions are partially offsetting. In addition, our foreign currency hedging program is designed to limit our exposure.

Actual gains and losses in the future may differ materially from the hypothetical gains and losses discussed above based on changes in the timing and amount of interest rate and foreign currency exchange rate movements and our actual exposure and hedging transactions.

39

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated by the SEC under the Securities Exchange Act of 1934, as amended (the “1934 Act”)) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the 1934 Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms. We note that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving our stated goals under all potential future conditions.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) as promulgated by the SEC under the 1934 Act) during our most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect our internal control over financial reporting.

40

PART II. OTHER INFORMATION

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Share Repurchases

On October 26, 2011, we announced that our Board of Directors authorized the repurchase of up to $200 million of our common stock (the “Buyback Program”). The Buyback Program allows us to purchase shares of our common stock in accordance with applicable securities laws on the open market, or through privately negotiated transactions, through October 25, 2012. We entered into an agreement with an external broker, which provides the structure under which the program may be facilitated which expired on October 25, 2012. On October 23, 2012, the Board of Directors approved an extension of the Buyback Program through October 25, 2013. The Buyback Program may be suspended or discontinued at any time. We will determine the timing and the amount of any repurchases based on an evaluation of market conditions, share price and other factors. During the three and six months ended December 31, 2012, we repurchased 15,900 shares and 145,866 shares, respectively, at a cost of $0.6 million and $5.4 million, respectively, under the Buyback Program for a total buyback of 3,392,275 shares at a cost of $129.3 million.

The following table provides information about shares acquired in connection with our share buyback program during the three months ended December 31, 2012:

	Total Number of Shares Acquired During Period		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Dollar Amount of Shares That May Yet Be Purchased Under the Program
October 1 – October 31, 2012		0		0.00		0
November 1 – November 30, 2012		15,900	$	36.99		15,900
December 1 – December 31, 2012		0		0.00		0
Total		15,900	$	0.00		15,900	$	70,655,177

41

Item 6. Exhibits

Exhibit No.	Exhibit Description
10.1	Multi-Currency Credit Agreement by and among Harman International Industries, Incorporated, Harman Holding GmbH & Co. KG, J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., UniCredit Capital Markets LLC and Wells Fargo Securities, LLC, as joint lead arrangers, JPMorgan Chase Bank, N.A., as administrative agent, HSBC Securities (USA) Inc., UniCredit Capital Markets LLC and Wells Fargo Securities, LLC, as syndication agents, Bank of America, N.A., RBS Citizens, N.A., TD Bank, National Association and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as documentation agents, and the other banks and financial institutions party thereto, dated as of October 10, 2012. (Filed as Exhibit 10.1 to the Current Report on Form 8-K filed with the Commission on October 11, 2012 and hereby incorporated by reference.)
10.2	Guarantee Agreement by and among Harman International Industries, Incorporated, Harman Holding GmbH & Co. KG, the subsidiaries of Harman International Industries, Incorporated identified therein, and JPMorgan Chase Bank, N.A., as Administrative Agent, dated as of October 10, 2012. (Filed as Exhibit 10.2 to the Current Report on Form 8-K filed with the Commission on October 11, 2012 and hereby incorporated by reference.)
31.1	Certification of Dinesh Paliwal pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Herbert Parker pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Dinesh Paliwal and Herbert Parker, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document.*
101.SCH	XBRL Taxonomy Extension Schema.*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase.*
101.DEF	XBRL Taxonomy Extension Definition Linkbase.*
101.LAB	XBRL Taxonomy Extension Label Linkbase.*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase.*

* Submitted electronically herewith.

Attached as Exhibit 101 to this report are the following financial information formatted in XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Statements of Income for the three and six months ended December 31, 2012 and 2011, (ii) Condensed Consolidated Statement of Comprehensive Income (Loss) for the three and six months ended December 31, 2012 and 2011, (iii) Condensed Consolidated Balance Sheets at December 31, 2012 and June 30, 2012, (iv) Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2012 and 2011 and (iv) Notes to the Condensed Consolidated Financial Statements. In accordance with Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be part of any registration statement or other document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing.

42

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Harman International Industries, Incorporated has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Harman International Industries, Incorporated
Date: January 31, 2013	By:	/S/ HERBERT K. PARKER
		Herbert K. Parker
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)

43

EX-31.1

Exhibit 31.1

PRINCIPAL EXECUTIVE OFFICER’S CERTIFICATION

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Dinesh C. Paliwal, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Harman International Industries, Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 31, 2013	/s/ DINESH C. PALIWAL
	Dinesh C. Paliwal
	Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

PRINCIPAL EXECUTIVE OFFICER’S CERTIFICATION

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Herbert K. Parker, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Harman International Industries, Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 31, 2013	/s/ Herbert K. Parker
	Herbert K. Parker
	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. § 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Harman International Industries, Incorporated (the “Company”) for the period ended December 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

Date: January 31, 2013

/s/ DINESH C. PALIWAL
Name:	Dinesh C. Paliwal
Title:	Chairman, President and Chief Executive Officer (Principal Executive Officer)
/s/ HERBERT K. PARKER
Name:	Herbert K. Parker
Title:	Executive Vice President and Chief Financial Officer (Principal Financial Officer)

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Retirement Benefits (Tables)

6 Months Ended

Dec. 31, 2012

Components Of Net Periodic Benefit Cost

The following table presents the components of net periodic benefit cost for the three and six months ended December 31, 2012 and 2011:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Service cost	$	544		$	398		$	1,074		$	813
Interest cost		1,777			1,982			3,526			4,007
Expected return on plan assets		(73	)		(58	)		(145	)		(119	)
Amortization of prior service cost		291			351			584			703
Amortization of net loss		969			449			1,936			897
Net periodic benefit cost	$	3,508		$	3,122		$	6,975		$	6,301

XML

Shareholders' Equity (Schedule Of Changes In Accumulated Other Comprehensive Income And Changes In Equity) (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Beginning Balance			$ 1,529,611	$ 1,423,658
Net income	47,489	59,255	102,044	107,622
Comprehensive loss, net			(1,267)	(59,216)
Treasury stock repurchases			(5,398)
Exercise of stock options, net of shares received			7,480	(26)
Share-based compensation, net of tax			7,621	7,631
Dividends ($per share)			(20,794)	(10,504)
Dividends per share			$ 0.60	$ 0.30
Ending Balance	1,619,297	1,469,165	1,619,297	1,469,165
Preferred Stock [Member]
Beginning Balance			0	0
Net income			0	0
Comprehensive loss, net			0	0
Treasury stock repurchases			0
Exercise of stock options, net of shares received			0	0
Share-based compensation, net of tax			0	0
Dividends ($per share)			0	0
Ending Balance	0	0	0	0
Common Stock [Member]
Beginning Balance			961	956
Net income			0	0
Comprehensive loss, net			0	0
Treasury stock repurchases			0
Exercise of stock options, net of shares received			7	2
Share-based compensation, net of tax			0	0
Dividends ($per share)			0	0
Ending Balance	968	958	968	958
Additional Paid-In Capital [Member]
Beginning Balance			943,971	915,433
Net income			0	0
Comprehensive loss, net			0	0
Treasury stock repurchases			0
Exercise of stock options, net of shares received			7,473	(28)
Share-based compensation, net of tax			7,621	7,631
Dividends ($per share)			0	0
Ending Balance	959,065	923,036	959,065	923,036
AOCI [Member]
Beginning Balance			29,709	136,733
Net income			0	0
Comprehensive loss, net			(1,267)	(59,216)
Treasury stock repurchases			0
Exercise of stock options, net of shares received			0	0
Share-based compensation, net of tax			0	0
Dividends ($per share)			0	0
Ending Balance	28,442	77,517	28,442	77,517
Retained Earnings [Member]
Beginning Balance			1,726,486	1,418,106
Net income			102,044	107,622
Comprehensive loss, net			0	0
Treasury stock repurchases			0
Exercise of stock options, net of shares received			0	0
Share-based compensation, net of tax			0	0
Dividends ($per share)			(20,794)	(10,504)
Ending Balance	1,807,736	1,515,224	1,807,736	1,515,224
Treasury Stock [Member]
Beginning Balance			(1,171,516)	(1,047,570)
Net income			0	0
Comprehensive loss, net			0	0
Treasury stock repurchases			(5,398)
Exercise of stock options, net of shares received			0	0
Share-based compensation, net of tax			0	0
Dividends ($per share)			0	0
Ending Balance	$ (1,176,914)	$ (1,047,570)	$ (1,176,914)	$ (1,047,570)

XML

Earnings Per Share (Narrative) (Detail) (USD $)	3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Oct. 31, 2012 Convertible Senior Notes [Member]	Dec. 31, 2012 Restricted Shares And Restricted Stock Units [Member]	Dec. 31, 2011 Restricted Shares And Restricted Stock Units [Member]	Dec. 31, 2012 Restricted Shares And Restricted Stock Units [Member]	Dec. 31, 2011 Restricted Shares And Restricted Stock Units [Member]
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Common stock outstanding and not included in the computation of diluted earnings per share	1,642,862	1,767,021	1,542,575	1,699,565		0	8,274	59,352	4,341
Convertible Senior Notes, outstanding					$ 400,000,000
Convertible Senior Notes, interest rate					1.25%
Initial conversion price of the Convertible Senior Notes		$ 104		$ 104
Amount of Convertible Senior Notes	$ 1,000

XML

Restructuring Program (Rollforward Of Restructuring Accrual) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Dec. 31, 2012		Dec. 31, 2011		Dec. 31, 2012		Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
Beginning liability					$ 30,794		$ 39,622
Expense	812		897		1,066	[1]	2,912	[1]
Accumulated depreciation offset					(995)		(1,078)
Payments					(9,210)		(5,197)
Foreign currency translation					513		(2,144)
Closing liability	22,168		34,115		22,168		34,115
Severance Related Costs [Member]
Restructuring Cost and Reserve [Line Items]
Beginning liability					19,938		31,762
Expense					(902)	[1]	841	[1]
Accumulated depreciation offset					0		0
Payments					(6,774)		(3,072)
Foreign currency translation					513		(2,144)
Closing liability	12,775		27,387		12,775		27,387
Third Party Contractor Termination Costs [Member]
Restructuring Cost and Reserve [Line Items]
Beginning liability					17		0
Expense					4	[1]	280	[1]
Accumulated depreciation offset					0		0
Payments					(22)		(280)
Foreign currency translation					1		0
Closing liability	0		0		0		0
Facility Closure And Other Related Costs [Member]
Restructuring Cost and Reserve [Line Items]
Beginning liability					10,839		7,860
Expense					969	[1]	713	[1]
Accumulated depreciation offset					0		0
Payments					(2,414)		(1,845)
Foreign currency translation					(1)		0
Closing liability	9,393		6,728		9,393		6,728
Asset Impairments [Member]
Restructuring Cost and Reserve [Line Items]
Beginning liability					0	[2]	0	[2]
Expense					995	[1],[2]	1,078	[1],[2]
Accumulated depreciation offset					(995)	[2]	(1,078)	[2]
Payments					0	[2]	0	[2]
Foreign currency translation					0	[2]	0	[2]
Closing liability	$ 0	[2]	$ 0	[2]	$ 0	[2]	$ 0	[2]

[1] Restructuring expenses noted above are primarily in SG&A in our Condensed Consolidated Statements of Income. Asset impairments which consist of accelerated depreciation and inventory provisions are primarily in Cost of sales in our Condensed Consolidated Statements of Income.

[2] Credits related to restructuring charges for accelerated depreciation and inventory provisions are recorded against the related assets in Property, plant and equipment, net or Inventories in our Condensed Consolidated Balance Sheets and do not impact the restructuring liability.

XML

Shareholders' Equity (Schedule Of Accumulated Other Comprehensive Income) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Accumulated Other Comprehensive Income Loss [Line Items]
Cumulative translation adjustment	$ 70,364	$ 45,894
Pension liability adjustment	(36,279)	(38,447)
Unrealized (loss) gain on hedging derivatives	(1,750)	26,296
Unrealized loss on available-for-sale securities	(3,893)	(4,034)
Total AOCI	$ 28,442	$ 29,709

XML

Sale Of Intellectual Property (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended
	Dec. 31, 2011	Dec. 31, 2011
Sale of intellectual property	$ 0.1	$ 0.3

XML

Accrued Warranties (Schedule Of Accrued Warranties) (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Product Warranty [Line Items]
Accrued warranties	$ 97,289	$ 122,396
Warranty expense	33,184	28,437
Warranty payments (cash or in-kind)	(24,286)	(25,033)
Other	4,070	(12,564)
Accrued warranties	$ 110,257	$ 113,236

XML

Debt (Tables)

6 Months Ended

Dec. 31, 2012

Long-Term Debt, Maturities In Years

At December 31, 2012, long-term debt maturing in each of the next five fiscal years and thereafter is as follows:

2013	$	15,000
2014		30,000
2015		35,625
2016		43,125
2017		135,000
Thereafter		41,250
Total	$	300,000

XML

Acquisitions (Narrative) (Detail)			1 Months Ended						1 Months Ended
	Jun. 30, 2012 USD ($)	Jul. 22, 2011 USD ($)	Jul. 22, 2011 MWM Acoustics [Member] USD ($) D	Dec. 31, 2012 MWM Acoustics [Member] USD ($)	Dec. 31, 2012 Interchain Solution Private Limited [Member] USD ($)	Oct. 13, 2012 Interchain Solution Private Limited [Member] USD ($)	Jul. 31, 2012 Interchain Solution Private Limited [Member] USD ($)	Jul. 31, 2012 Interchain Solution Private Limited [Member] INR	Jul. 22, 2011 Customer Relationships [Member] USD ($)	Jul. 22, 2011 Technology [Member] USD ($)
Business Acquisition [Line Items]
Purchase price			$ 80,000,000				$ 800,000	45,000,000
Cash paid on acquisition			72,000,000			500,000	300,000
Acquisition earn-out contingent payable			57,000,000				900,000	50,000,000
Financial targets achievement period end			June 30, 2014				September 1, 2013 and September 2, 2014	September 1, 2013 and September 2, 2014
Contingent consideration related to earn-out					300,000
Goodwill		79,757,000					600,000
Acquired intangible assets		20,600,000					400,000		19,200,000	1,400,000
Accrued working capital adjustments			100,000
Number of days for working capital adjustment			60
Remainder of Fixed Purchase Price payable in future				8,000,000
Preliminary valuation of contingent consideration			22,100,000	9,600,000
Approximate goodwill amount deductible for tax purposes		35,600,000
Approximate useful life									10 years	4 years
Acquisition costs incurred	$ 900,000

XML

Retirement Benefits (Components Of Net Periodic Benefit Costs) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Employee Benefit Plans [Line Items]
Service cost	$ 544	$ 398	$ 1,074	$ 813
Interest cost	1,777	1,982	3,526	4,007
Expected return on plan assets	(73)	(58)	(145)	(119)
Amortization of prior service cost	291	351	584	703
Amortization of net loss	969	449	1,936	897
Net periodic benefit cost	$ 3,508	$ 3,122	$ 6,975	$ 6,301

XML

Share-Based Compensation (Schedule Of Fair Value Of Each Option Award Estimated On The Date Of Grant Using The Black-Scholes Option Valuation Model) (Detail) (USD $)	6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility minimum	43.00%	48.80%
Expected volatility maximum	59.30%	66.20%
Weighted-average volatility	50.10%	59.40%
Expected annual dividend	$ 0.60	$ 0.30
Risk-free rate minimum	0.20%	0.20%
Risk-free rate maximum	0.60%	0.70%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	2 years 3 months 26 days	1 year 8 months 12 days
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	4 years 5 months 19 days	3 years 10 months 13 days

XML

Commitments And Contingencies (Narrative) (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Jan. 14, 2008
Adverse effect on earnings per share resulting from changing sales forecasts					$ 1.00
Costs relating to delayed delivery of product	$ 0	$ 0	$ 0	$ 4.6

XML

Subsequent Events (Narrative) (Detail) (USD $)	6 Months Ended		1 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Jan. 31, 2013 Subsequent Event [Member]
Declared cash dividend, per share	$ 0.60	$ 0.30	$ 0.15

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Related Party Transactions (Narrative) (Detail) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2009 Y	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Jun. 30, 2010 EUR (€) Y	Dec. 31, 2012 EUR (€)
Related party transactions duration of agreement, years	3					5
Amount of transactions with related party during the financial reporting period						€ 6
Total expenses for engineering and software development services		8.6	8.6	15.5	16.2
Current asset, related party		$ 4.1		$ 4.1			€ 3.1

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Restructuring Program (Restructuring Expenses By Reporting Business Segment) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012		Dec. 31, 2011
Restructuring expenses	$ (143)	$ 897	$ 71		$ 1,834
Asset impairments	955	0	995		1,078
Total	812	897	1,066	[1]	2,912	[1]
Infotainment [Member]
Restructuring expenses	(565)	(415)	(295)		92
Lifestyle [Member]
Restructuring expenses	858	190	751		340
Professional [Member]
Restructuring expenses	(436)	1,077	(385)		1,357
Other [Member]
Restructuring expenses	$ 0	$ 45	$ 0		$ 45

[1] Restructuring expenses noted above are primarily in SG&A in our Condensed Consolidated Statements of Income. Asset impairments which consist of accelerated depreciation and inventory provisions are primarily in Cost of sales in our Condensed Consolidated Statements of Income.

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Related Party Transactions

6 Months Ended

Dec. 31, 2012

Related Party Transactions

Note 20 – Related Party Transactions

From time to time, we enter into transactions with related parties. In December 2009, we entered into a three-year agreement for engineering and software development services with Neusoft Corporation (“Neusoft”), a Shanghai exchange listed technology solutions provider. A member of our Board of Directors is the Chairman and CEO of Neusoft. On April 20, 2010, our subsidiary, innovative Systems GmbH (“IS”) entered into an asset purchase and business transfer agreement (the “Asset Purchase Agreement”) with Neusoft Technology Solutions GmbH (“Neusoft Technology”), which is a subsidiary of Neusoft, for the sale of certain tangible assets located at IS’s facility in Hamburg, Germany. This transaction closed on June 1, 2010. As part of the Asset Purchase Agreement, IS and Neusoft Technology entered into a five-year agreement for engineering and software development services related to IS’s vehicle navigation business (the “Services Agreement”). Under the terms of the Asset Purchase Agreement, IS transferred at closing certain tangible assets and employment relationships to Neusoft Technology and received consideration of €6 million. Our subsidiary, Harman Becker Automotive Systems GmbH and Neusoft Europe AG, a subsidiary of Neusoft, are guarantors under the terms of the Asset Purchase Agreement and the Services Agreement. In the first quarter of fiscal year 2013, we entered into a contract with Neusoft to develop certain software to be integrated into certain infotainment platforms for a customer. As of December 31, 2012, we have paid Neusoft approximately $4.1 million (€3.1 million) which we have classified as a Current asset in our Condensed Consolidated Balance Sheet. Upon acceptance of the purchased software the asset will be reclassified as capitalized software and will be amortized over the future revenue stream of the products to which it relates. During the three months ended December 31, 2012 and 2011, we incurred total expenses of $8.6 million in each period, for engineering and software development services with Neusoft Technology and Neusoft. During the six months ended December 31, 2012 and 2011, we incurred total expenses of $15.5 million and $16.2 million, respectively, for engineering and software development services with Neusoft Technology and Neusoft.

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Debt (Narrative) (Detail) (USD $)	3 Months Ended		6 Months Ended					3 Months Ended		6 Months Ended						0 Months Ended		0 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Oct. 10, 2012	Jun. 30, 2012	Oct. 21, 2011	Dec. 31, 2012 Convertible Senior Notes [Member]	Dec. 31, 2011 Convertible Senior Notes [Member]	Dec. 31, 2012 Convertible Senior Notes [Member]	Dec. 31, 2011 Convertible Senior Notes [Member]	Oct. 15, 2012 Convertible Senior Notes [Member]	Jun. 30, 2012 Convertible Senior Notes [Member]	Dec. 31, 2012 Maximum [Member]	Dec. 31, 2012 Minimum [Member]	Oct. 10, 2012 Multi-Currency Revolving Credit Facility [Member]	Oct. 10, 2012 Letters of Credit [Member]	Oct. 10, 2012 Term Loan And Revolving Credit Facility [Member]	Dec. 31, 2012 Registration Rights Agreement [Member] Convertible Senior Notes [Member]	Dec. 31, 2012 Revolving Credit Facility [Member]	Oct. 10, 2012 Revolving Credit Facility [Member]	Dec. 31, 2012 Term Facility [Member]	Oct. 10, 2012 Term Facility [Member]	Oct. 15, 2012 Cash [Member]
Debt Disclosure [Line Items]
Short-term borrowings outstanding	$ 197,000		$ 197,000			$ 227,000
Lines of credit	27,800,000		27,800,000			17,800,000
Unsecured revolving credit facility, period of agreement, in years																5 years		5 years
Current borrowing capacity																550,000,000
Letters of credit																	60,000,000
Increase in line of credit facility					250,000,000
Aggregate revolving commitment																750,000,000		300,000,000
Required consolidated EBITDA to consolidated cash interest expense as per New Credit Agreement														3.5:1.0
Required consolidated total debt to consolidated EBITDA as per New Credit Agreement															3.5:1.0
Required consolidated total debt to consolidated EBITDA as per New Credit Agreement after acquisition	4.0:1.0		4.0:1.0
Amount of outstanding letters of credit																				8,700,000	8,700,000
Convertible Senior Notes paid												400,000,000
Borrowings under the Term Facility																						300,000,000	300,000,000	100,000,000
Current portion of long-term debt	30,400,000		30,400,000			395,409,000														30,000,000
Long-term debt non current	270,047,000		270,047,000			0														270,000,000
Unused available credit																				741,300,000
Fee and other expense																				6,100,000
Write-off of debt issuance costs																				1,100,000
Convertible Senior Notes outstanding								0		0			400,000,000
Interest rate										1.25%
Convertible Senior Notes, interest expense	200,000	1,300,000	1,500,000	2,500,000
Noncash interest expense								700,000	4,200,000	5,000,000	8,400,000
Amortization of discount, Convertible Senior Notes	$ 100,000	$ 200,000	$ 300,000	$ 400,000
Period of effectiveness of registration statement, maximum																			Five years and three months
Number of business days to file registration statement							7

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Acquisitions (Tables)

6 Months Ended

Dec. 31, 2012

Schedule Of Assets And Liabilities Assumed At Fair Values On Acquisition

	July 22, 2011
Cash and cash equivalents	$	1,465
Accounts receivable		4,434
Inventories		1,062
Other current assets		42
Current assets		7,003
Property, plant and equipment		273
Goodwill		79,757
Intangibles		20,600
Other noncurrent assets		1,091
Total assets		108,724
Accounts payable		5,187
Accrued liabilities		206
Total current liabilities		5,393
Other noncurrent liabilities		1,125
Total liabilities		6,518
Net assets	$	102,206

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Significant Customers (Schedule Of Percentage Of Net Sales And Net Accounts Receivables Due From Customers From Continuing Operations) (Detail)	6 Months Ended		12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Jun. 30, 2012
Significant Customers [Line Items]
Percentage of net sales due to customers	100.00%	100.00%
Percentage of net accounts receivable due from customers	100.00%		100.00%
BMW [Member]
Significant Customers [Line Items]
Percentage of net sales due to customers	20.00%	21.00%
Percentage of net accounts receivable due from customers	12.00%		13.00%
Audi/Volkswagen [Member]
Significant Customers [Line Items]
Percentage of net sales due to customers	13.00%	13.00%
Percentage of net accounts receivable due from customers	9.00%		11.00%
Other Customers [Member]
Significant Customers [Line Items]
Percentage of net sales due to customers	67.00%	66.00%
Percentage of net accounts receivable due from customers	79.00%		76.00%

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Fair Value Measurements (Tables)

6 Months Ended

Dec. 31, 2012

Fair Value Hierarchy For Assets And Liabilities Measured On Recurring Basis And Losses Recorded

The following tables provide the fair value hierarchy for assets and liabilities measured on a recurring basis and the losses recorded during the periods presented:

	Fair Value at December 31, 2012								Fair Value at June 30, 2012
Description	Level 1		Level 2			Level 3			Level 1		Level 2			Level 3
Assets/(Liabilities):
Short-term investments	$	81,166	$	0		$	0		$	203,014	$	0		$	0
Available-for-sale securities		1,943		0			0			1,805		0			0
Foreign exchange contracts		0		(1,161	)		0			0		38,589			0
Interest rate swap		0		(737	)		0			0		(997	)		0
Pension assets		7,236		0			0			7,011		0			0
Contingent Consideration		0		0			(9,888	)		0		0			(22,100	)
Net asset/(liability)	$	90,345	$	(1,898	)	$	(9,888	)	$	211,830	$	37,592		$	(22,100	)

	Total Gains for  the Three Months Ended December 31,					Total Gains for the Six Months Ended December 31,
Description of Liability	2012			2011		2012			2011
Contingent Consideration	$	(12,500	)	$	0	$	(12,500	)	$	0

Fair Value Hierarchy For Assets And Liabilities Measured On Non-Recurring Basis

The following table provides the carrying value for assets and liabilities measured on a non-recurring basis, all of which are measured under Level 3 of the fair value hierarchy. There were no losses recognized in the three and six months ended December 31, 2012 and 2011.

Description of Assets	December 31, 2012		June 30, 2012
Goodwill	$	180,757	$	180,811
Long-lived assets		446,284		459,112
Total	$	627,041	$	639,923

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Income Taxes (Detail) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Schedule Of Income Taxes [Line Items]
Income tax expense	$ 14,788,000	$ 22,736,000	$ 31,999,000	$ 37,603,000
Effective tax rate	23.70%	27.70%	23.90%	25.90%
Unrecognized tax benefits	35,800,000		35,800,000
Interest related to unrecognized tax benefit			1,700,000
Unrecognized tax benefit that would affect the tax rate if recognized	1,700,000		1,700,000
Tax reserves on uncertain tax positions	700,000		1,600,000
Additional interest expense on uncertain tax positions	$ 400,000		$ 500,000

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Fair Value Measurements (Fair Value Hierarchy For Assets And Liabilities Measured On Recurring Basis) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member]	Jun. 30, 2012 Fair Value, Inputs, Level 1 [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member]	Jun. 30, 2012 Fair Value, Inputs, Level 2 [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member]	Jun. 30, 2012 Fair Value, Inputs, Level 3 [Member]
Schedule Of Fair Value Measurements [Line Items]
Short-term investments					$ 81,166	$ 203,014	$ 0	$ 0	$ 0	$ 0
Available-for-sale securities					1,943	1,805	0	0	0	0
Foreign exchange contracts					0	0	(1,161)	38,589	0	0
Interest rate swap					0	0	(737)	(997)	0	0
Pension assets					7,236	7,011	0	0	0	0
Contingent Consideration					0	0	0	0	(9,888)	(22,100)
Net asset/(liability)					90,345	211,830	(1,898)	37,592	(9,888)	(22,100)
Contingent Consideration	$ (12,500)	$ 0	$ (12,500)	$ 0

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Share-Based Compensation (Schedule Of Cash-Settled Stock Appreciation Rights) (Detail) (Stock Appreciation Rights [Member])	6 Months Ended
	Dec. 31, 2012
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested at June 30, 2012, Shares	10,807
Granted, Shares	6,803
Vested, Shares	(3,332)
Forfeited, Shares	(817)
Nonvested at December 31, 2012, Shares	13,461
Exercisable, Shares	788

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Earnings Per Share (Schedule Of Calculation Of Basic And Diluted Earnings Per Share Of Common Stock Outstanding) (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Earnings Per Share Basic And Diluted [Line Items]
Net income			$ 102,044	$ 107,622
Weighted average shares outstanding	69,009	71,463	68,846	71,265
Total weighted average shares outstanding	69,734	72,299	69,582	72,085
Diluted [Member]
Earnings Per Share Basic And Diluted [Line Items]
Net income	47,489	59,255	102,044	107,622
Weighted average shares outstanding	69,009	71,463	68,846	71,265
Employee stock options	725	836	736	820
Total weighted average shares outstanding	69,734	72,299	69,582	72,085
Earnings per share	0.68	0.82	$ 1.47	$ 1.49
Basic [Member]
Earnings Per Share Basic And Diluted [Line Items]
Net income	47,489	59,255	$ 102,044	$ 107,622
Weighted average shares outstanding	69,009	71,463	68,846	71,265
Employee stock options	0	0	0	0
Total weighted average shares outstanding	69,009	71,463	68,846	71,265
Earnings per share	0.69	0.83	$ 1.48	$ 1.51

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Inventories

6 Months Ended

Dec. 31, 2012

Inventories

Note 4 – Inventories

Inventories, net consist of the following:

	December 31, 2012		June 30, 2012
Finished goods	$	227,226	$	161,124
Work in process		75,814		69,577
Raw materials		244,178		196,896
Inventories	$	547,218	$	427,597

At December 31, 2012 and June 30, 2012, our inventory reserves were $57.4 million and $61.9 million, respectively.

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Derivatives (Narrative) (Detail) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Jun. 30, 2012
Derivative [Line Items]
Foreign exchange losses due to revaluation of derivative instruments held		$ 1,400,000		$ 1,400,000
Number of interest rate swap contracts			1		1
Interest Rate Risk Management [Member]
Derivative [Line Items]
Amount expected to be reclassified from AOCI to earnings within the next 12 months			600,000
Notional amount of interest rate derivatives	20,600,000		20,600,000		20,300,000
Not Designated As Hedging Instrument [Member]
Derivative [Line Items]
Foreign contracts maturing within 12 months			216,500,000		154,800,000
Fair value of foreign currency derivatives not designated as hedges, asset	1,600,000		1,600,000		8,800,000
Cash Flow Hedging [Member]
Derivative [Line Items]
Foreign contracts maturing within 12 months			433,900,000		638,300,000
Ineffectiveness recognized	0	0	0	0
Fair value of derivatives contracts			2,700,000		29,800,000
Amount expected to be reclassified from AOCI to earnings within the next 12 months			1,300,000
Recognized net gain (losses) related to the change in forward points	$ 800,000	$ 1,800,000	$ 1,400,000	$ 5,400,000
Maximum [Member]
Derivative [Line Items]
Foreign exchange contracts maturity period, years			1

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Allowance For Doubtful Accounts (Narrative) (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Uncollectible accounts receivable	$ 5.5	$ 6.0

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Inventories (Tables)

6 Months Ended

Dec. 31, 2012

Schedule Of Inventories

Inventories, net consist of the following:

	December 31, 2012		June 30, 2012
Finished goods	$	227,226	$	161,124
Work in process		75,814		69,577
Raw materials		244,178		196,896
Inventories	$	547,218	$	427,597

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Subsequent Events

6 Months Ended

Dec. 31, 2012

Subsequent Events

Note 23 – Subsequent Events

Dividend Declaration

On January 31, 2013, we declared a cash dividend of $0.15 per share for the quarter ended December 31, 2012. The quarterly dividend will be paid on February 26, 2013 to each stockholder of record as of the close of business on February 11, 2013.

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Share-Based Compensation (Narrative) (Detail) (USD $)	0 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended	6 Months Ended																	12 Months Ended	6 Months Ended		12 Months Ended		6 Months Ended	1 Months Ended		6 Months Ended				1 Months Ended
	Dec. 08, 2010	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 D Y	Dec. 31, 2011 Y	Jun. 30, 2012	Dec. 31, 2012 Restricted Stock [Member]	Dec. 31, 2012 Restricted Stock Units With Earning Per Share Performance Conditions [Member]	Dec. 31, 2011 Restricted Stock Units With Earning Per Share Performance Conditions [Member]	Dec. 31, 2012 Restricted Stock Units With Return On Invested Capital Performance Conditions [Member]	Dec. 31, 2012 Restricted Stock Units With Market Conditions [Member]	Dec. 31, 2011 Restricted Stock Units With Market Conditions [Member]	Dec. 31, 2012 Monte Carlo Simulation [Member]	Dec. 31, 2011 Monte Carlo Simulation [Member]	Dec. 31, 2012 2002 Plan [Member]	Dec. 31, 2011 2002 Plan [Member]	Dec. 31, 2010 2002 Plan [Member] Restricted Stock Units With Earning Per Share Performance Conditions [Member] Y	Dec. 31, 2010 2002 Plan [Member] Restricted Stock Units With Market Conditions [Member] Y	Dec. 31, 2010 2002 Plan [Member] Monte Carlo Simulation [Member]	Dec. 31, 2012 2002 Plan [Member] Restricted Stock Units [Member] Y	Dec. 31, 2011 2002 Plan [Member] Restricted Stock Units [Member] Y	Dec. 31, 2012 2002 Plan [Member] Restricted Stock Units With Performance Conditions [Member]	Dec. 31, 2011 2002 Plan [Member] Restricted Stock Units With Performance Conditions [Member]	Jun. 30, 2010 2002 Plan [Member] Restricted Stock Units With Performance Conditions [Member] Y	Dec. 31, 2012 2002 Plan [Member] Common Stock [Member]	Dec. 31, 2012 2012 Plan [Member]	Jun. 30, 2012 2012 Plan [Member]	Dec. 07, 2011 2012 Plan [Member]	Dec. 31, 2012 2012 Plan [Member] Full Value Grant [Member]	Dec. 31, 2012 2012 Plan [Member] Restricted Stock Units [Member]	Jun. 30, 2012 2012 Plan [Member] Restricted Stock Units [Member]	Dec. 31, 2012 2012 Plan [Member] Common Stock [Member]	Dec. 31, 2012 2012 Plan [Member] Stock-Settled Restricted Stock Units [Member]	Dec. 31, 2012 2012 Plan [Member] Cash-Settled Restricted Stock Units [Member]	Dec. 31, 2012 2012 Plan [Member] Stock Appreciation Rights [Member]	Sep. 30, 2008 Outside 2002 Plan [Member] Restricted Stock Units [Member]	Jan. 31, 2008 Outside 2002 Plan [Member] Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant																										3,224,134		4,400,000
Number of stock options, common stock and restricted stock units granted				486,784																0					0							486,784	549,864	869
Stock option and incentive plan, maturity date																										Dec. 07, 2021
Number of awards for reduction of shares available for grant under 2012 Plan																										1
Reduction in shares available for grant for one award under the plan																													1.71
Stock appreciation rights																																			6,803
Number of shares available for grant of stock options, stock appreciation rights, restricted stock and restricted stock units	1,100,000
Grant of stock options stock appreciation rights, restricted stock and restricted stock units not to exceed for shares of common stock	7,860,000
Share-based compensation		$ 5,400,000	$ 5,400,000	$ 10,227,000	$ 7,921,000
Total income tax benefit recognized		1,200,000	1,500,000	2,600,000	2,200,000
Weighted-average grant-date fair value of options granted		$ 15.54	$ 14.12	$ 15.92	$ 13.26
Total intrinsic value of options exercised		400,000	700,000	6,000,000	900,000
Extended vesting period after employee termination, days				90
Total unrecognized compensation cost		35,000,000		35,000,000			0
Weighted average recognition period, years				1 year 8 months 12 days			0 years
Shares, Outstanding							0
Restricted stock units granted								97,733.0	118,546	97,733	97,733	118,546					191,721	191,715	5,200,000	234,825	273,931	21,840	24,400	380,400						869	1,150					28,344	34,608
Cliff vesting period, in years				3	3
Compensation expenses recognized period (years)															3 years	3 years
Restricted stock units, grant date fair value													3,700,000	3,300,000
Cliff vesting period, in years																	3	3		3	3			3
Restricted stock units vested percentage																								39.80%
Number of restricted stock units settled				1,608	1,608																					0
Cash-settled restricted stock units, outstanding				0		1,608																				2,019	1,150
Restricted stock units settled cost				100,000	100,000
Aggregate intrinsic value of equity classified restricted stock		$ 78,600,000		$ 78,600,000

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Inventories (Schedule Of Inventories) (Detail) (USD $)	Dec. 31, 2012	Jun. 30, 2012
Inventories [Line Items]
Finished goods	$ 227,226,000	$ 161,124,000
Work in process	75,814,000	69,577,000
Raw materials	244,178,000	196,896,000
Inventories	547,218,000	427,597,000
Inventory reserves	$ 57,400,000	$ 61,900,000

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Property, Plant And Equipment, Net (Tables)

6 Months Ended

Dec. 31, 2012

Schedule Of Property, Plant And Equipment, Net

Property, plant and equipment, net consist of the following:

	Estimated Useful Lives (in Years)		December 31, 2012			June 30, 2012
Land			$	7,572		$	8,046
Buildings and improvements		1-50		251,358			254,563
Machinery and equipment		3-20		1,052,058			1,002,539
Furniture and fixtures		3-10		26,581			29,423
Property, plant and equipment, gross				1,337,569			1,294,571
Less accumulated depreciation and amortization				(915,621	)		(864,337	)
Property, plant and equipment, net			$	421,948		$	430,234

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Accrued Warranties (Tables)

6 Months Ended

Dec. 31, 2012

Schedule Of Accrued Warranties

Details of our accrued warranties are as follows:

	Six Months Ended December 31,
	2012			2011
Accrued warranties, June 30	$	97,289		$	122,396
Warranty expense		33,184			28,437
Warranty payments (cash or in-kind)		(24,286	)		(25,033	)
Other(1)		4,070			(12,564	)
Accrued warranties, December 31	$	110,257		$	113,236

⁽¹⁾  Other primarily represents foreign currency translation.

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Allowance For Doubtful Accounts

6 Months Ended

Dec. 31, 2012

Allowance For Doubtful Accounts

Note 3 – Allowance for Doubtful Accounts

We reserve an estimated amount for accounts receivable that may not be collected. Methodologies for estimating the allowance for doubtful accounts are based primarily on specific identification of uncollectible accounts. Historical collection rates and customer credit worthiness are considered in determining specific reserves. At December 31, 2012 and June 30, 2012, we had $5.5 million and $6.0 million, respectively, reserved for possible uncollectible accounts receivable.

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Earnings Per Share (Tables)

6 Months Ended

Dec. 31, 2012

Schedule Of Calculation Of Basic And Diluted Earnings Per Share Of Common Stock Outstanding

The following table presents the calculation of basic and diluted earnings per share of common stock outstanding:

	Three Months Ended December 31,
	2012				2011
	Basic		Diluted		Basic		Diluted
Numerator for Basic and Diluted Earnings per Share:
Net income	$	47,489	$	47,489	$	59,255	$	59,255
Denominator for Basic and Diluted Earnings per Share:
Weighted average shares outstanding		69,009		69,009		71,463		71,463
Employee stock options		0		725		0		836
Total weighted average shares outstanding		69,009		69,734		71,463		72,299
Earnings per Share:
Earnings per share	$	0.69	$	0.68	$	0.83	$	0.82
	Six Months Ended December 31,
	2012				2011
	Basic		Diluted		Basic		Diluted
Numerator for Basic and Diluted Earnings per Share:
Net income	$	102,044	$	102,044	$	107,622	$	107,622
Denominator for Basic and Diluted Earnings per Share:
Weighted average shares outstanding		68,846		68,846		71,265		71,265
Employee stock options		0		736		0		820
Total weighted average shares outstanding		68,846		69,582		71,265		72,085
Earnings per Share:
Earnings per share	$	1.48	$	1.47	$	1.51	$	1.49

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Business Segment Data (Tables)

6 Months Ended

Dec. 31, 2012

Schedule Of Reports For Net Sales And Operating Income (Loss) By Each Reporting Segment From Continuing Operations

The following table reports Net sales and Operating income (loss) by each reporting segment for the three and six months ended December 31, 2012 and 2011:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Net sales:
Infotainment	$	540,303		$	599,899		$	1,100,827		$	1,203,157
Lifestyle		371,576			368,754			663,274			668,593
Professional		143,506			158,376			287,185			305,882
Other		257			0			2,549			0
Total	$	1,055,642		$	1,127,029		$	2,053,835		$	2,177,632
Operating income (loss):
Infotainment	$	30,251		$	49,947		$	74,925		$	97,043
Lifestyle		49,832			49,605			87,091			78,926
Professional		19,742			22,160			39,513			38,180
Other		(31,443	)		(26,334	)		(54,056	)		(44,593	)
Total	$	68,382		$	95,378		$	147,473		$	169,556

⁽¹⁾ Operating income (loss) for the three and six months ended December 31, 2011 has been revised to reflect a change in the measurement of segment operating profit due to a change in the allocation of intercompany royalties between the Lifestyle and Professional segments.

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Shareholders' Equity (Narrative) (Detail) (USD $) In Millions, except Share data, unless otherwise specified	1 Months Ended	3 Months Ended	6 Months Ended	9 Months Ended
	Oct. 26, 2011	Dec. 31, 2012	Dec. 31, 2012	Dec. 31, 2012	Jun. 30, 2012
Preferred stock, shares outstanding		0	0	0	0
Preferred stock, shares authorized		5,000,000	5,000,000	5,000,000	5,000,000
Preferred stock, par value		$ 0.01	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized		200,000,000	200,000,000	200,000,000	200,000,000
Common stock, par value		$ 0.01	$ 0.01	$ 0.01	$ 0.01
Common stock, shares issued		96,848,238	96,848,238	96,848,238	96,132,542
Treasury stock, shares		28,992,092	28,992,092	28,992,092	28,846,226
Common stock, shares outstanding		67,856,146	67,856,146	67,856,146	67,286,316
Board of Directors authorized the repurchase of common stock	$ 200
Repurchased shares under the buyback program		15,900	145,866	3,392,275
Cost of repurchased shares under buyback program		0.6	5.4	129.3
Expiry date of share buyback program		Oct. 25, 2013	Oct. 25, 2013	Oct. 25, 2013
Investments included in other current assets		$ 1.9	$ 1.9	$ 1.9	$ 1.8

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Retirement Benefits (Narrative) (Detail) (Retirement Savings Plan [Member], USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Jun. 30, 2012
Retirement Savings Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Maximum employee contribution rate, pretax			50.00%
Safe harbor non-elective contribution rate			3.00%
Matching contribution rate			6.00%
Matching and profit contribution vesting rate			25.00%
Contributions to defined benefit pension plans	$ 1.8	$ 2.2	$ 4.2	$ 4.3
Estimated expense relating to retirement savings plan for the year 2013					$ 5.0

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Assets
Cash and cash equivalents	$ 526,251	$ 617,356
Short-term investments	81,166	203,014
Receivables, net	623,721	582,835
Inventories	547,218	427,597
Other current assets	282,669	285,443
Total current assets	2,061,025	2,116,245
Property, plant and equipment, net	421,948	430,234
Goodwill	180,757	180,811
Deferred tax assets, long-term, net	280,648	308,768
Other assets	160,437	133,406
Total assets	3,104,815	3,169,464
Liabilities and Shareholders' Equity
Current portion of long-term debt	30,400	395,409
Short-term debt	197	227
Accounts payable	477,714	505,694
Accrued liabilities	336,711	368,002
Accrued warranties	110,257	97,289
Income taxes payable	11,968	15,279
Total current liabilities	967,247	1,381,900
Long-term debt	270,047	0
Pension liability	171,078	168,099
Other non-current liabilities	77,146	89,854
Total liabilities	1,485,518	1,639,853
Commitments and contingencies
Preferred stock	0	0
Common stock	968	961
Additional paid-in capital	959,065	943,971
Accumulated other comprehensive income	28,442	29,709
Retained earnings	1,807,736	1,726,486
Less: Common stock held in treasury	(1,176,914)	(1,171,516)
Total shareholders' equity	1,619,297	1,529,611
Total liabilities and shareholders' equity	$ 3,104,815	$ 3,169,464

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Property, Plant And Equipment, Net (Schedule of Property, Plant And Equipment, Net) (Detail) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Jun. 30, 2012
Property, Plant and Equipment [Line Items]
Land	$ 7,572,000		$ 7,572,000		$ 8,046,000
Buildings and improvements	251,358,000		251,358,000		254,563,000
Machinery and equipment	1,052,058,000		1,052,058,000		1,002,539,000
Furniture and fixtures	26,581,000		26,581,000		29,423,000
Property, plant and equipment, gross	1,337,569,000		1,337,569,000		1,294,571,000
Less accumulated depreciation and amortization	(915,621,000)		(915,621,000)		(864,337,000)
Property, plant and equipment, net	421,948,000		421,948,000		430,234,000
Depreciation expense	$ 27,700,000	$ 25,600,000	$ 54,200,000	$ 54,200,000
Minimum [Member] | Buildings And Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (in Years)			1 year
Minimum [Member] | Machinery And Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (in Years)			3 years
Minimum [Member] | Furniture And Fixtures [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (in Years)			3 years
Maximum [Member] | Buildings And Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (in Years)			50 years
Maximum [Member] | Machinery And Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (in Years)			20 years
Maximum [Member] | Furniture And Fixtures [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (in Years)			10 years

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Basis of Presentation

6 Months Ended

Dec. 31, 2012

Basis of Presentation

Note 1 – Basis of Presentation

Basis of Presentation

References to “we,” “us,” “our,” the “company” and “Harman” refer to Harman International Industries, Incorporated and its consolidated subsidiaries unless the context specifically requires otherwise.

Our unaudited, condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited condensed consolidated financial statements have been prepared in accordance with the accounting policies described in our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2012 (our “2012 Annual Report”) and do not include all information and footnote disclosures included in our audited financial statements. In the opinion of management, the accompanying unaudited, condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments and accruals, necessary to present fairly, in all material respects, the consolidated financial condition, results of operations and cash flows for the periods presented. Operating results for the three and six months ended December 31, 2012 are not necessarily indicative of the results that may be expected for the full fiscal year ending June 30, 2013 due to seasonal, economic and other factors. Where necessary, information for prior periods has been reclassified to conform to the consolidated financial statement presentation in the current fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes included in our 2012 Annual Report.

The methods, estimates and judgments we use in applying our accounting policies, in conformity with generally accepted accounting principles in the United States (“GAAP”), have a significant impact on the results we report in our financial statements. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. The estimates affect the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions.

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Share-Based Compensation (Schedule Of Nonvested Restricted Stock Awards) (Detail) (Restricted Stock [Member], USD $)	6 Months Ended
	Dec. 31, 2012
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested at June 30, 2012, Shares	3,000
Vested, Shares	(3,000)
Nonvested at December 31, 2012, Shares	0
Nonvested at June 30, 2012, Weighted Average Grant-Date Fair Value	$ 116.65
Vested, Weighted Average Grant-Date Fair Value	$ 116.65
Nonvested at December 31, 2012,Weighted Average Grant-Date Fair Value	$ 0.00

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Share-Based Compensation (Tables)

6 Months Ended

Dec. 31, 2012

Schedule Of Fair Value Of Each Option Award Estimated On The Date Of Grant Using The Black-Scholes Option Valuation Model

The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model, which uses the assumptions noted in the following table.

	Six Months Ended December 31,
	2012			2011
Expected volatility		43.0% - 59.3	%		48.8% - 66.2	%
Weighted-average volatility		50.1	%		59.4	%
Expected annual dividend	$	0.60		$	0.30
Expected term (in years)		2.32 - 4.47			1.70 - 3.87
Risk-free rate		0.2% - 0.6	%		0.2% - 0.7	%

Summary Of Stock Option Activity

A summary of option activity under the Plans as of December 31, 2012 and changes during the six months ended December 31, 2012 is presented below:

	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at June 30, 2012		2,410,718			$54.71		6.42	$	9,359
Granted		486,784			47.37
Exercised		(418,870	)		32.67
Forfeited or expired		(83,772	)		63.73
Outstanding at December 31, 2012		2,394,860			$56.76		6.66	$	10.440
Exercisable at December 31, 2012		1,387,244			$67.94		4.99	$	5,673

Schedule Of Nonvested Restricted Stock Awards

A summary of the status of our nonvested restricted stock as of December 31, 2012 and changes during the six months ended December 31, 2012, is presented below:

	Shares			Weighted Average Grant-Date Fair Value
Nonvested at June 30, 2012		3,000		$	116.65
Vested		(3,000	)		116.65
Nonvested at December 31, 2012		0		$	0.00

Schedule Of Nonvested Restricted Stock Unit Activity

A summary of equity classified restricted stock unit activity as of December 31, 2012 and changes during the six months ended December 31, 2012 is presented below:

	Shares
Nonvested at June 30, 2012		1,939,364
Granted		549,864
Vested		(429,704	)
Forfeited		(296,496	)
Nonvested at December 31, 2012		1,763,028

Schedule Of Cash-Settled Stock Appreciation Rights

A summary of cash-settled stock appreciation rights as of December 31, 2012 and changes during the six months ended December 31, 2012 is presented below:

	Shares
Nonvested at June 30, 2012		10,807
Granted		6,803
Vested		(3,332	)
Forfeited		(817	)
Nonvested at December 31, 2012		13,461
Exercisable		788

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Derivatives (Schedule Of Derivative Activity For Derivatives Designated As Cash Flow Hedges) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Derivative [Line Items]
Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)	$ 9,880	$ (663)	$ 27,478	$ (11,692)
Gain/(Loss) Recognized in Income on Derivatives (Ineffective Portion)	(1)	(3)	(3)	(4)
Gain/(Loss) from Amounts Excluded from Effectiveness Testing	841	(1,812)	1,395	(5,460)
Gain/(Loss) Recognized in AOCI (Effective Portion)	(9,508)	25,579	(11,234)	60,029
Foreign Exchange Contracts [Member]
Derivative [Line Items]
Gain/(Loss) Recognized in AOCI (Effective Portion)	(9,484)	25,619	(11,148)	60,367
Foreign Exchange Contracts [Member] | Cost of Sales [Member]
Derivative [Line Items]
Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)	9,931	(517)	27,765	(11,383)
Gain/(Loss) Recognized in Income on Derivatives (Ineffective Portion)	0	0	0	0
Gain/(Loss) from Amounts Excluded from Effectiveness Testing	0	2	0	2
Foreign Exchange Contracts [Member] | Selling General And Administrative Expense [Member]
Derivative [Line Items]
Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)	141	0	78	0
Gain/(Loss) Recognized in Income on Derivatives (Ineffective Portion)	0	0	0	0
Gain/(Loss) from Amounts Excluded from Effectiveness Testing	0	0	0	0
Foreign Exchange Contracts [Member] | Foreign exchange losses, net [Member]
Derivative [Line Items]
Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)	0	0	0	0
Gain/(Loss) Recognized in Income on Derivatives (Ineffective Portion)	0	0	0	0
Gain/(Loss) from Amounts Excluded from Effectiveness Testing	841	(1,814)	1,395	(5,462)
Interest Rate Swap [Member]
Derivative [Line Items]
Gain/(Loss) Recognized in AOCI (Effective Portion)	(24)	(40)	(86)	(338)
Interest Rate Swap [Member] | Selling General And Administrative Expense [Member]
Derivative [Line Items]
Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)	(192)	(146)	(365)	(309)
Gain/(Loss) Recognized in Income on Derivatives (Ineffective Portion)	(1)	(3)	(3)	(4)
Gain/(Loss) from Amounts Excluded from Effectiveness Testing	$ 0	$ 0	$ 0	$ 0

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Business Segment Data

6 Months Ended

Dec. 31, 2012

Business Segment Data

Note 17 – Business Segment Data

We design, manufacture and market high-quality, high fidelity audio products and electronic systems for the infotainment, automotive audio, home audio and professional markets. Our chief operating decision maker evaluates performance and allocates resources based on net sales, operating income and working capital in each of the reporting segments.

Infotainment

Our Infotainment segment designs, manufactures and markets infotainment systems for vehicle applications to be installed primarily as original equipment by automotive manufacturers.

Lifestyle

Our Lifestyle segment designs, manufactures and markets automotive audio systems for vehicle applications to be installed primarily as original equipment by automotive manufacturers and a wide range of mid—to high-end audio and consumer electronics for home, multimedia and mobile applications. Our Lifestyle audio products feature some of the world’s most recognized audio brands, including JBL^®, AKG^®, Harman/Kardon^®, Infinity^®, Mark Levinson^®, Revel^®, Logic 7^®, Lexicon^® and Selenium^®.

Professional

Our Professional segment designs, manufactures and markets an extensive range of loudspeakers, power amplifiers, digital signal processors, microphones, headphones and mixing consoles used by audio professionals in concert halls, stadiums, airports, houses of worship and other public spaces. We also provide high-quality products to the sound reinforcement, music instrument support and broadcast and recording segments of the professional audio market. We offer complete systems solutions for professional installations and users around the world. Our Professional products are marketed globally under brand names including JBL Professional^®, AKG, Crown^®, Soundcraft^®, Lexicon, DigiTech^®, dbx^®, BSS^®, Selenium and Studer^®.

Other

Our Other segment includes compensation, benefits and occupancy costs for corporate employees, net of reporting segment allocations, expenses associated with new technology innovation and our corporate brand identity campaign.

The following table reports Net sales and Operating income (loss) by each reporting segment for the three and six months ended December 31, 2012 and 2011:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Net sales:
Infotainment	$	540,303		$	599,899		$	1,100,827		$	1,203,157
Lifestyle		371,576			368,754			663,274			668,593
Professional		143,506			158,376			287,185			305,882
Other		257			0			2,549			0
Total	$	1,055,642		$	1,127,029		$	2,053,835		$	2,177,632
Operating income (loss):
Infotainment	$	30,251		$	49,947		$	74,925		$	97,043
Lifestyle		49,832			49,605			87,091			78,926
Professional		19,742			22,160			39,513			38,180
Other		(31,443	)		(26,334	)		(54,056	)		(44,593	)
Total	$	68,382		$	95,378		$	147,473		$	169,556

⁽¹⁾ Operating income (loss) for the three and six months ended December 31, 2011 has been revised to reflect a change in the measurement of segment operating profit due to a change in the allocation of intercompany royalties between the Lifestyle and Professional segments.

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Derivatives (Tables)

6 Months Ended

Dec. 31, 2012

Schedule Of Outstanding Foreign Exchange Contracts, Including Forward And Option Contracts

At December 31, 2012 and June 30, 2012, we had outstanding foreign exchange contracts, including forward and option contracts, which are summarized below:  

	December 31, 2012					June 30, 2012
	Gross Notional Value		Fair Value Asset/ (Liability)(1)			Gross Notional Value		Fair Value Asset/ (Liability)(1)
Currency Hedged (Buy/Sell):
U.S. Dollar/Euro	$	488,264	$	(2,852	)	$	686,500	$	37,962
Euro/U.S. Dollar		45,750		1,670			28,750		(1,056	)
Swiss Franc/U.S. Dollar		41,496		871			0		0
Chinese Yuan/U.S. Dollar		29,853		501			36,040		(428	)
Japanese Yen/Euro		26,143		(1,810	)		31,280		1,695
U.S. Dollar/British Pound		5,685		(58	)		0		0
British Pound/U.S. Dollar		4,873		209			0		0
Hungarian Forint/Euro		4,509		245			8,816		414
British Pound/Swiss Franc		2,924		(18	)		0		0
U.S. Dollar/Japanese Yen		900		80			1,800		2
Total	$	650,397	$	(1,162	)	$	793,186	$	38,589

⁽¹⁾  Represents the net receivable/(payable) included in our Condensed Consolidated Balance Sheets.

Summary Of Fair Value Amounts Of Derivative Instruments

The following tables provide a summary of the fair value amounts of our derivative instruments at December 31, 2012 and June 30, 2012:

		Fair Value
	Balance Sheet Location	December 31, 2012			June 30, 2012
Derivatives Designated as Cash Flow Hedges, Gross:
Other assets:
Foreign exchange contracts	Other current assets	$	3,192		$	30,761
Other liabilities:
Foreign exchange contracts	Accrued liabilities		5,918			979
Interest rate swap	Accrued liabilities		737			712
Interest rate swap	Other non-current liabilities		0			285
Total liabilities			6,655			1,976
Net (liability)/asset for derivatives designated as hedging instruments			(3,463	)		28,785
		Fair Value
		December 31, 2012			June 30, 2012
Derivatives Designated as Economic Hedges, Gross:
Other assets:
Foreign exchange contracts	Other current assets		4,308			9,864
Other liabilities:
Foreign exchange contracts	Accrued liabilities		2,743			1,057
Net asset for economic hedges:			1,565			8,807
Total net derivative (liability)/asset		$	(1,898	)	$	37,592

Schedule Of Derivative Activity For Derivatives Designated As Cash Flow Hedges

The following table shows derivative activity for derivatives designated as cash flow hedges for the three months ended December 31, 2012 and 2011:

Derivative	Location of Derivative Gain/(Loss) Recognized in Income	Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)						Gain/(Loss) Recognized in Income  on Derivatives (Ineffective Portion)						Gain/(Loss) from Amounts Excluded from Effectiveness Testing
		Three Months Ended December 31,
		2012			2011			2012			2011			2012		2011
Foreign exchange contracts	Cost of sales	$	9,931		$	(517	)	$	0		$	0		$	0	$	2
Foreign exchange contracts	SG&A		141			0			0			0			0		0
Foreign exchange contracts	Foreign exchange losses, net		0			0			0			0			841		(1,814	)
Interest rate swap	SG&A		(192	)		(146	)		(1	)		(3	)		0		0
Total cash flow hedges		$	9,880		$	(663	)	$	(1	)	$	(3	)	$	841	$	(1,812	)

Derivative	Gain/(Loss) Recognized in AOCI (Effective Portion)
	Three Months Ended December 31,
	2012			2011
Foreign exchange contracts	$	(9,484	)	$	25,619
Interest rate swap		(24	)		(40	)
Total cash flow hedges	$	(9,508	)	$	25,579

The following table shows derivative activity for derivatives designated as cash flow hedges for the six months ended December 31, 2012 and 2011:

Derivative	Location of Derivative Gain/(Loss) Recognized in Income	Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)						Gain/(Loss) Recognized in Income  on Derivatives (Ineffective Portion)						Gain/(Loss) from Amounts Excluded from Effectiveness Testing
		Six Months Ended December 31,
		2012			2011			2012			2011			2012		2011
Foreign exchange contracts	Cost of sales	$	27,765		$	(11,383	)	$	0		$	0		$	0	$	2
Foreign exchange contracts	SG&A		78			0			0			0			0		0
Foreign exchange contracts	Foreign exchange losses, net		0			0			0			0			1,395		(5,462	)
Interest rate swap	SG&A		(365	)		(309	)		(3	)		(4	)		0		0
Total cash flow hedges		$	27,478		$	(11,692	)	$	(3	)	$	(4	)	$	1,395	$	(5,460	)

Derivative	Gain/(Loss) Recognized in AOCI (Effective Portion)
	Six Months Ended December 31,
	2012			2011
Foreign exchange contracts	$	(11,148	)	$	60,367
Interest rate swap		(86	)		(338	)
Total cash flow hedges	$	(11,234	)	$	60,029

Summary Of Gains And Losses From Derivative Instruments That Are Not Designated As Hedging Instruments

The following table summarizes gains and losses from our derivative instruments that are not designated as hedging instruments for the three and six months ended December 31, 2012 and 2011:

		Three Months Ended December 31,						Six Months Ended December 31,
Derivative	Location of Derivative Gain/(Loss)	2012			2011			2012			2011
Foreign exchange contracts	Cost of sales	$	(3,314	)	$	(5,844	)	$	(5,172	)	$	(4,597	)
Foreign exchange contracts	Foreign exchange losses, net		2,363			4,794			2,752			6,345

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Commitments and Contingencies

6 Months Ended

Dec. 31, 2012

Commitments and Contingencies

Note 19 – Commitments and Contingencies

At December 31, 2012, we were subject to legal claims and litigation arising in the ordinary course of business, including the matters described below. The outcome of these legal actions cannot be predicted with certainty; however, management, based upon advice from legal counsel, believes such actions are either without merit or will not have a material adverse effect on our financial condition, results of operations or cash flows.

In re Harman International Industries, Inc. Securities Litigation

On October 1, 2007, a purported class action lawsuit was filed by Cheolan Kim (the “Kim Plaintiff”) against Harman and certain of our officers in the United States District Court for the District of Columbia (the “Court”) seeking compensatory damages and costs on behalf of all persons who purchased our common stock between April 26, 2007 and September 24, 2007 (the “Class Period”). The original complaint alleged claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.

The complaint alleged that the defendants omitted to disclose material adverse facts about Harman’s financial condition and business prospects. The complaint contended that had these facts not been concealed at the time the merger agreement with KKR and GSCP was entered into, there would not have been a merger agreement, or it would have been at a much lower price, and the price of our common stock therefore would not have been artificially inflated during the Class Period. The Kim Plaintiff alleged that, following the reports that the proposed merger was not going to be completed, the price of our common stock declined, causing the plaintiff class significant losses.

On November 30, 2007, the Boca Raton General Employees’ Pension Plan filed a purported class action lawsuit against Harman and certain of our officers in the Court seeking compensatory damages and costs on behalf of all persons who purchased our common stock between April 26, 2007 and September 24, 2007. The allegations in the Boca Raton complaint are essentially identical to the allegations in the original Kim complaint, and like the original Kim complaint, the Boca Raton complaint alleges claims for violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder.

On January 16, 2008, the Kim Plaintiff filed an amended complaint. The amended complaint, which extended the Class Period through January 11, 2008, contended that, in addition to the violations alleged in the original complaint, Harman also violated Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder by “knowingly failing to disclose “significant problems” relating to its PND sales forecasts, production, pricing, and inventory” prior to January 14, 2008. The amended complaint claimed that when “Defendants revealed for the first time on January 14, 2008 that shifts in PND sales would adversely impact earnings per share by more than $1.00 per share in fiscal 2008,” that led to a further decline in our share value and additional losses to the plaintiff class.

On February 15, 2008, the Court ordered the consolidation of the Kim action with the Boca Raton action, the administrative closing of the Boca Raton action, and designated the short caption of the consolidated action as In re Harman International Industries, Inc. Securities Litigation, civil action no. 1:07-cv-01757 (RWR). That same day, the Court appointed the Arkansas Public Retirement System as lead plaintiff (“Lead Plaintiff”) and approved the law firm Cohen, Milstein, Hausfeld and Toll, P.L.L.C. to serve as lead counsel.

On March 24, 2008, the Court ordered, for pretrial management purposes only, the consolidation of Patrick Russell v. Harman International Industries, Incorporated, et al. with In re Harman International Industries, Inc. Securities Litigation.

On May 2, 2008, Lead Plaintiff filed a consolidated class action complaint (the “Consolidated Complaint”). The Consolidated Complaint, which extends the Class Period through February 5, 2008, contends that Harman and certain of our officers and directors violated Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder, by issuing false and misleading disclosures regarding our financial condition in fiscal year 2007 and fiscal year 2008. In particular, the Consolidated Complaint alleges that defendants knowingly or recklessly failed to disclose material adverse facts about MyGIG radios, personal navigation devices and our capital expenditures. The Consolidated Complaint alleges that when Harman’s true financial condition became known to the market, the price of our common stock declined significantly, causing losses to the plaintiff class.

On July 3, 2008, defendants moved to dismiss the Consolidated Complaint in its entirety. Lead Plaintiff opposed the defendants’ motion to dismiss on September 2, 2008, and defendants filed a reply in further support of their motion to dismiss on October 2, 2008. The motion is now fully briefed. As of December 31, 2012, the case remained open with no new developments.

Patrick Russell v. Harman International Industries, Incorporated, et al.

Patrick Russell (the “Russell Plaintiff”) filed a complaint on December 7, 2007 in the United States District Court for the District of Columbia and an amended purported putative class action complaint on June 2, 2008 against Harman and certain of our officers and directors alleging violations of the Employee Retirement Income Security Act of 1974 (“ERISA”) and seeking, on behalf of all participants in and beneficiaries of the Savings Plan, compensatory damages for losses to the Savings Plan as well as injunctive relief, imposition of a constructive trust, restitution, and other monetary relief. The amended complaint alleges that from April 26, 2007 to the present defendants failed to prudently and loyally manage the Savings Plan’s assets, thereby breaching their fiduciary duties in violation of ERISA by causing the Savings Plan to invest in our common stock notwithstanding that the stock allegedly was “no longer a prudent investment for the Participants’ retirement savings.” The amended complaint further claims that, during the Class Period, defendants failed to monitor the Savings Plan fiduciaries, failed to provide the Savings Plan fiduciaries with, and to disclose to Savings Plan participants, adverse facts regarding Harman and our businesses and prospects. The Russell Plaintiff also contends that defendants breached their duties to avoid conflicts of interest and to serve the interests of participants in and beneficiaries of the Savings Plan with undivided loyalty. As a result of these alleged fiduciary breaches, the amended complaint asserts that the Savings Plan has “suffered substantial losses, resulting in the depletion of millions of dollars of the retirement savings and anticipated retirement income of the Savings Plan’s Participants.”

On March 24, 2008, the Court ordered, for pretrial management purposes only, the consolidation of Patrick Russell v. Harman International Industries, Incorporated, et al. with In re Harman International Industries, Inc. Securities Litigation.

Defendants moved to dismiss the complaint in its entirety on August 5, 2008. The Russell Plaintiff opposed the defendants’ motion to dismiss on September 19, 2008, and defendants filed a reply in further support of their motion to dismiss on October 20, 2008. The motion is now fully briefed. As of December 31, 2012, the case remained open with no new developments.

Infotainment Supply Arrangements

We have arrangements with our infotainment customers to provide products that meet predetermined technical specifications and delivery dates. In the event that we do not satisfy the performance obligations under these arrangements, we may be required to indemnify the customer. We accrue for any loss that we expect to incur under these arrangements when that loss is probable and can be reasonably estimated. For the three and six months ended December 31, 2012 and the three months ended December 31, 2011, we incurred no costs relating to delayed delivery of product to an infotainment customer. For the six months ended December 31, 2011, we incurred $4.6 million of costs relating to delayed delivery of product to an infotainment customer. An inability to meet performance obligations on infotainment platforms to be delivered in future periods could adversely affect our results of operations, cash flows and financial condition in future periods.

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Fair Value Measurements (Narrative) (Detail) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Weighted average cost of capital			19.00%
Discount rate			12.60%
Reduction in contingent consideration	$ (12,500,000)	$ 0	$ (12,500,000)	$ 0
Selling General And Administrative Expense [Member]
Contingent consideration related to acquisition	9,600,000		9,600,000
Reduction in contingent consideration	(12,500,000)		(12,500,000)
Interchain Solution Private Limited [Member]
Contingent consideration related to earn-out	300,000		300,000
MWM Acoustics [Member]
Contingent consideration related to acquisition	$ 22,100,000		$ 22,100,000

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New Accounting Standards

6 Months Ended

Dec. 31, 2012

New Accounting Standards

Note 2 – New Accounting Standards

Recently Adopted Accounting Standards

Comprehensive Income: In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income” (“ASU 2011-05”). The new guidance requires that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both cases, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. If presented in a single continuous statement, the entity is required to present the components of net income and total net income, the components of other comprehensive income and a total for other comprehensive income, along with the total of comprehensive income in that statement. If presented in the two-statement approach, the first statement, which is the statement of net income, should present components of net income and total net income followed consecutively by a second statement, which is the statement of other comprehensive income, that should present the components of other comprehensive income, total other comprehensive income and a total amount for comprehensive income. Regardless of the method used, the entity is required to present on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement where the components of net income and the components of other comprehensive income are presented. In December 2011, the FASB issued ASU 2011-12, “Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05” (“ASU 2011-12”). ASU 2011-12 temporarily deferred the requirement to present on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement where the components of net income and the components of other comprehensive income are presented. The guidance in ASU 2011-05, as amended, is effective retrospectively for fiscal years, and interim periods within those fiscal years beginning after December 15, 2011. We adopted the provisions of this new guidance on July 1, 2012. The adoption of the new provisions did not have a material impact on our financial condition or results of operations.

Recently Issued Accounting Standards

Balance Sheet: In December 2011, the FASB issued ASU 2011-11, “Balance Sheet (Topic 210), Disclosures about Offsetting Assets and Liabilities,” which requires companies to disclose information about financial instruments that have been offset and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial condition. Companies will be required to provide both net (offset amounts) and gross information in the notes to the financial statements for relevant assets and liabilities that are offset. The new guidance is effective retrospectively for fiscal years and interim periods within those fiscal years beginning on or after January 1, 2013. We will adopt the provisions of this new guidance on July 1, 2013. We do not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations.

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended			6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011		Dec. 31, 2012	Dec. 31, 2011
Net sales	$ 1,055,642	$ 1,127,029	[1]	$ 2,053,835	$ 2,177,632	[1]
Cost of sales	783,849	821,490		1,503,795	1,584,451
Gross profit	271,793	305,539		550,040	593,181
Selling, general and administrative expenses	203,411	210,174		402,567	423,926
Sale of intellectual property	0	(13)		0	(301)
Operating income	68,382	95,378	[1]	147,473	169,556	[1]
Other expenses:
Interest expense, net	3,687	4,059		9,682	9,335
Foreign exchange losses, net	988	7,373		1,139	11,597
Miscellaneous, net	1,430	1,955		2,609	3,399
Income before income taxes	62,277	81,991		134,043	145,225
Income tax expense, net	14,788	22,736		31,999	37,603
Net income	$ 47,489	$ 59,255		$ 102,044	$ 107,622
Earnings per share:
Basic	$ 0.69	$ 0.83		$ 1.48	$ 1.51
Diluted	$ 0.68	$ 0.82		$ 1.47	$ 1.49
Weighted average shares outstanding:
Basic	69,009	71,463		68,846	71,265
Diluted	69,734	72,299		69,582	72,085

[1] Operating income (loss) for the three and six months ended December 31, 2011 has been revised to reflect a change in the measurement of segment operating profit due to a change in the allocation of intercompany royalties between the Lifestyle and Professional segments.

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Share-Based Compensation

6 Months Ended

Dec. 31, 2012

Share-Based Compensation

Note 12 – Share-Based Compensation

On December 7, 2011 (the “Effective Date”), our shareholders approved the 2012 Stock Option and Incentive Plan (the “2012 Plan”), which is effective through December 7, 2021. As of the Effective Date, no further grants may be granted under our former plan, the Amended and Restated 2002 Stock Option and Incentive Plan, as amended (the “2002 Plan” and together with the 2012 Plan, the “Plans”). There are 4,400,000 shares available for grant under the 2012 Plan. The 2012 Plan provides for two types of awards: (1) a full value grant, as defined in the 2012 Plan, under which one award shall reduce the shares available for grant under the 2012 Plan by 1.71 shares, and (2) an option or stock appreciation right grant, under which one award shall reduce the shares available for grant under the 2012 Plan by one share. During the six months ended December 31, 2012, 486,784 options to purchase shares of our common stock, 549,864 stock-settled restricted stock units, 869 cash-settled restricted stock units and 6,803 stock appreciation rights were granted under the 2012 Plan. As of December 31, 2012, there were 3,224,134 shares available for grant under the 2012 Plan.

Prior to the Effective Date, we had one share-based compensation plan with shares available for future grants, the 2002 Plan. On December 8, 2010, we amended the 2002 Plan to increase the number of shares available under the 2002 Plan for the grant of stock options, stock appreciation rights, restricted stock and restricted stock units by 1,100,000 to an aggregate amount not to exceed 7,860,000 shares of our common stock. During the six months ended December 31, 2012, there were no options to purchase shares of our common stock or restricted stock units granted under the 2002 Plan.

Share-based compensation expense, net was $5.4 million in each of the three month periods ended December 31, 2012 and 2011, and was $10.2 million and $7.9 million for the six months ended December 31, 2012 and 2011, respectively. The total income tax benefit recognized in the Condensed Consolidated Statements of Income for share-based compensation arrangements was $1.2 million and $1.5 million for the three months ended December 31, 2012 and 2011, respectively and was $2.6 million and $2.2 million for the six months ended December 31, 2012 and 2011, respectively.

Fair Value Determination

The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model, which uses the assumptions noted in the following table.

	Six Months Ended December 31,
	2012			2011
Expected volatility		43.0% - 59.3	%		48.8% - 66.2	%
Weighted-average volatility		50.1	%		59.4	%
Expected annual dividend	$	0.60		$	0.30
Expected term (in years)		2.32 - 4.47			1.70 - 3.87
Risk-free rate		0.2% - 0.6	%		0.2% - 0.7	%

Groups of option holders (directors, executives and non-executives) that have similar historical behavior are considered separately for valuation purposes. Expected volatilities are based on historical closing prices of our common stock over the expected option term. We use historical data to estimate option exercises and employee terminations within the valuation model. The expected term of options granted is derived using the option valuation model and represents the estimated period of time from the date of grant that the option is expected to remain outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

Stock Option Activity

A summary of option activity under the Plans as of December 31, 2012 and changes during the six months ended December 31, 2012 is presented below:

	Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at June 30, 2012		2,410,718			$54.71		6.42	$	9,359
Granted		486,784			47.37
Exercised		(418,870	)		32.67
Forfeited or expired		(83,772	)		63.73
Outstanding at December 31, 2012		2,394,860			$56.76		6.66	$	10.440
Exercisable at December 31, 2012		1,387,244			$67.94		4.99	$	5,673

The weighted-average grant-date fair value of options granted for the three months ended December 31, 2012 and 2011 was $15.54 and $14.12, respectively, and for the six months ended December 31, 2012 and 2011 was $15.92 and $13.26, respectively. The total intrinsic value of options exercised for the three months ended December 31, 2012 and 2011 was $0.4 million and $0.7 million, respectively, and for the six months ended December 31, 2012 and 2011 was $6.0 million and $0.9 million, respectively.

Modification of Certain Stock Option Awards

Prior to fiscal year 2011, certain of the award agreements under the 2002 Plan stated that vested options not exercised were forfeited upon termination of employment for any reason other than death or disability. However, such award agreements provided that the Compensation and Option Committee of our Board of Directors (the “Compensation and Option Committee”) could extend the time period to exercise vested options 90 days beyond the employment termination date for certain employees. During the three and six months ended December 31, 2012 and 2011, the Compensation and Option Committee used this authority. This action represented a modification of the terms or conditions of an equity award and therefore was accounted for as an exchange of the original award for a new award. Incremental share-based compensation cost for the excess of the fair value of the new award over the fair value of the original award was immaterial.

Restricted Stock Awards

A summary of the status of our nonvested restricted stock as of December 31, 2012 and changes during the six months ended December 31, 2012, is presented below:

	Shares			Weighted Average Grant-Date Fair Value
Nonvested at June 30, 2012		3,000		$	116.65
Vested		(3,000	)		116.65
Nonvested at December 31, 2012		0		$	0.00

As of December 31, 2012, there was no unrecognized compensation cost related to nonvested restricted stock-based compensation arrangements granted under the 2002 Plan and no weighted average recognition period. At December 31, 2012, no shares of restricted stock were outstanding which were granted outside of the 2002 Plan.

Restricted Stock Units

In the six months ended December 31, 2012, we granted 97,733 restricted stock units with earnings per share (“EPS”) performance conditions, 97,733 restricted stock units with return on invested capital (“ROIC”) performance conditions and 97,733 restricted stock units with market conditions, under the 2012 Plan. The restricted stock units with EPS performance conditions cliff vest three years from the date of grant based on the achievement of certain cumulative EPS levels from fiscal years 2013 through 2015. The restricted stock units with ROIC conditions cliff vest three years from the date of grant based on the achievement of a certain average ROIC level over fiscal years 2013 through 2015. The restricted stock units with market conditions cliff vest three years from the date of grant based on a comparison of our total shareholder return (“TSR”) to the TSR of a selected peer group of publicly listed multinational companies. The grant date fair value of the restricted stock units with market conditions of $3.7 million was calculated using a Monte Carlo simulation model. Compensation expense, for both the restricted stock units with performance conditions and the restricted stock units with market conditions, is recognized ratably over the three-year vesting period based on the grant date fair value and our assessment of the probability that the applicable targets will be met for awards with performance conditions, which is reassessed each reporting period.

In the six months ended December 31, 2011, we granted 118,546 restricted stock units with EPS performance conditions, 118,546 restricted stock units with ROIC performance conditions and 118,546 restricted stock units with market conditions, under the 2002 Plan. The restricted stock units with EPS performance conditions cliff vest three years from the date of grant based on the achievement of certain cumulative EPS levels from fiscal years 2012 through 2014. The restricted stock units with ROIC conditions cliff vest three years from the date of grant based on the achievement of a certain ROIC level in fiscal year 2014. The restricted stock units with market conditions cliff vest three years from the date of grant based on a comparison of our TSR to the TSR of a selected peer group of publicly listed multinational companies. The grant date fair value of the restricted stock units with market conditions of $3.3 million was calculated using a Monte Carlo simulation model. Compensation expense, for both the restricted stock units with performance conditions and the restricted stock units with market conditions, is recognized ratably over the three-year vesting period based on the grant date fair value and our assessment of the probability that the applicable targets will be met for awards with performance conditions, which is reassessed each reporting period.

In the six months ended December 31, 2010, we granted 191,721 restricted stock units with EPS performance conditions and 191,715 restricted stock units with market conditions, under the 2002 Plan. The restricted stock units with EPS performance conditions cliff vest three years from the date of grant based on the attainment of a certain EPS level in fiscal year 2013. The restricted stock units with market conditions cliff vest three years from the date of grant based on a comparison of our TSR to the TSR of a selected peer group of publicly listed multinational companies. The grant date fair value of the restricted stock units with market conditions of $5.2 million was calculated using a Monte Carlo simulation model. Compensation expense, for both the restricted stock units with performance conditions and the restricted stock units with market conditions, is recognized ratably over the three-year vesting period based on the grant date fair value and our assessment of the probability that the applicable targets will be met for awards with performance conditions, which is reassessed each reporting period.

We granted 380,400 restricted stock units with performance conditions in the fiscal year ended June 30, 2010 under the 2002 Plan. These restricted stock units cliff vested in September 2012. Compensation expense was recognized ratably over the three-year vesting period based on grant date fair value and our assessment of the probability that the performance targets would be met. Approximately 39.8 percent of the restricted stock units vested based on the actual attainment of certain targets.

In the six months ended December 31, 2012 and 2011, we also granted 234,825 and 273,931 time vested restricted stock units, without performance or market conditions, respectively, under the Plans that vest three years from the date of grant and 21,840 and 24,400 time vested restricted stock units that vest ratably over the three-year vesting period.

In September 2012 and June 2012, we granted 869 and 1,150 cash-settled restricted stock units, respectively, under the 2012 Plan. These restricted stock units are accounted for as liability awards and are recorded at the fair value at the end of the reporting period in accordance with their vesting schedules. During the six months ended December 31, 2012, none of these restricted stock units were settled. At December 31, 2012 and June 30, 2012, 2,019 and 1,150 cash-settled restricted stock units were outstanding, respectively.

In January and September 2008, we granted 34,608 and 28,344 cash-settled restricted stock units, respectively, outside the 2002 Plan. These restricted stock units are accounted for as liability awards and are recorded at the fair value at the end of the reporting period in accordance with their vesting schedules. During the six months ended December 31, 2012 and 2011, 1,608 of these restricted stock units were settled in each period, at a cost of $0.1 million in each period. At December 31 2012, and June 30, 2012, 0 and 1,608 cash-settled restricted stock units were outstanding, respectively.

A summary of equity classified restricted stock unit activity as of December 31, 2012 and changes during the six months ended December 31, 2012 is presented below:

	Shares
Nonvested at June 30, 2012		1,939,364
Granted		549,864
Vested		(429,704	)
Forfeited		(296,496	)
Nonvested at December 31, 2012		1,763,028

At December 31, 2012, the aggregate intrinsic value of equity classified restricted stock units was $78.6 million and there was $35.0 million of total unrecognized compensation cost related to restricted stock unit compensation arrangements. The weighted average recognition period was 1.7 years.

Stock Appreciation Rights

A summary of cash-settled stock appreciation rights as of December 31, 2012 and changes during the six months ended December 31, 2012 is presented below:

	Shares
Nonvested at June 30, 2012		10,807
Granted		6,803
Vested		(3,332	)
Forfeited		(817	)
Nonvested at December 31, 2012		13,461
Exercisable		788

These stock appreciation rights are accounted for as liability awards and are recorded at the fair value at the end of the reporting period in accordance with their vesting schedules. The fair value is calculated using the Black-Scholes option valuation model using assumptions consistent with our stock options.

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Document and Entity Information	6 Months Ended
	Dec. 31, 2012	Jan. 29, 2013
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2012
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Trading Symbol	HAR
Entity Registrant Name	HARMAN INTERNATIONAL INDUSTRIES INC /DE/
Entity Central Index Key	0000800459
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		67,935,482

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Derivatives

6 Months Ended

Dec. 31, 2012

Derivatives

Note 13 – Derivatives

We are exposed to market risk from changes in foreign currency exchange rates and interest rates, which could affect our operating results, financial condition and cash flows. We manage our exposure to these risks through our regular operating and financial activities and, when appropriate, through the use of derivative financial instruments. These derivative instruments are utilized to hedge economic exposures, as well as to reduce earnings and cash flow volatility resulting from shifts in market rates. We enter into limited types of derivative contracts, including foreign currency spot, forward and option contracts and an interest rate swap, to manage foreign currency and interest rate exposures. Our primary foreign currency exposure is the Euro. The fair market values of all our derivative contracts change with fluctuations in interest rates and currency rates and are designed so that any changes in their values are offset by changes in the values of the underlying exposures. Derivative financial instruments are held solely as risk management tools and not for trading or speculative purposes.

We record all derivative instruments as either assets or liabilities at fair value in our Condensed Consolidated Balance Sheets. Certain of these derivative contracts have been designated as cash flow hedges, whereby gains and losses are reported within AOCI in our Condensed Consolidated Balance Sheets, until the underlying transaction occurs, at which point they are reported in earnings as gains and losses in our Condensed Consolidated Statements of Income. Certain of our derivatives, for which hedge accounting is not applied, are effective as economic hedges. These derivative contracts are required to be recognized each period at fair value, with gains and losses reported in earnings in our Condensed Consolidated Statements of Income and therefore do result in some level of earnings volatility. The level of volatility will vary with the type and amount of derivative hedges outstanding, as well as fluctuations in the currency and interest rate markets during the period. The related cash flow impacts of all our derivative activities are reflected as cash flows from operating activities.

Derivatives, by their nature, involve varying degrees of market and credit risk. The market risk associated with these instruments resulting from currency exchange and interest rate movements is expected to offset the market risk of the underlying transactions, assets and liabilities being hedged. We do not believe there is significant risk of loss in the event of non-performance by the counterparties associated with these instruments because these transactions are executed with a diversified group of major financial institutions. Furthermore, our policy is to contract only with counterparties having a minimum investment grade or better credit rating. Credit risk is managed through the continuous monitoring of exposure to such counterparties.

Foreign Exchange Risk Management

We use foreign exchange contracts to hedge the price risk associated with foreign denominated forecasted purchases of materials used in our manufacturing process and to manage currency risk associated with operating costs in certain operating units, including foreign currency denominated intercompany loans and other foreign currency denominated assets. These contracts generally mature in one year or less. The majority of these contracts are designated as cash flow hedges.

At December 31, 2012 and June 30, 2012, we had outstanding foreign exchange contracts, including forward and option contracts, which are summarized below:

	December 31, 2012					June 30, 2012
	Gross Notional Value		Fair Value Asset/ (Liability)(1)			Gross Notional Value		Fair Value Asset/ (Liability)(1)
Currency Hedged (Buy/Sell):
U.S. Dollar/Euro	$	488,264	$	(2,852	)	$	686,500	$	37,962
Euro/U.S. Dollar		45,750		1,670			28,750		(1,056	)
Swiss Franc/U.S. Dollar		41,496		871			0		0
Chinese Yuan/U.S. Dollar		29,853		501			36,040		(428	)
Japanese Yen/Euro		26,143		(1,810	)		31,280		1,695
U.S. Dollar/British Pound		5,685		(58	)		0		0
British Pound/U.S. Dollar		4,873		209			0		0
Hungarian Forint/Euro		4,509		245			8,816		414
British Pound/Swiss Franc		2,924		(18	)		0		0
U.S. Dollar/Japanese Yen		900		80			1,800		2
Total	$	650,397	$	(1,162	)	$	793,186	$	38,589

⁽¹⁾  Represents the net receivable/(payable) included in our Condensed Consolidated Balance Sheets.

Cash Flow Hedges

We designate a portion of our foreign exchange contracts as cash flow hedges of foreign currency denominated purchases. As of December 31, 2012 and June 30, 2012, we had $433.9 million and $638.3 million of forward contracts maturing through June 2014 and June 2013, respectively. These contracts are recorded at fair value in the accompanying Condensed Consolidated Balance Sheets. The changes in fair value for these contracts on a spot to spot basis are reported in AOCI, and are reclassified to either Cost of sales or Selling, general and administrative expense (“SG&A”), depending on the nature of the underlying asset or liability that is being hedged, in our Condensed Consolidated Statements of Income, in the period or periods during which the underlying transaction occurs. If it becomes apparent that an underlying forecasted transaction will not occur, the amount recorded in AOCI related to the hedge is reclassified to Foreign exchange losses, net in our Condensed Consolidated Statements of Income in the then-current period. Amounts relating to such reclassifications were immaterial in the three and six months ended December 31, 2012 and 2011.

Changes in the fair value of the derivatives are highly effective in offsetting changes in the cash flows of the hedged items because the amounts and the maturities of the derivatives approximate those of the forecasted exposures. Any ineffective portion of the derivative is recognized in the current period in our Condensed Consolidated Statements of Income, in the same line item in which the foreign currency gain or loss on the underlying hedged transaction was recorded. No amount of ineffectiveness was recognized in the Condensed Consolidated Statements of Income in the three and six months ended December 31, 2012 and 2011. All components of each derivative’s gain or loss, with the exception of forward points (see below), were included in the assessment of hedge ineffectiveness. At December 31, 2012 and June 30, 2012, the fair value of these contracts was a net liability of $2.7 million and net asset of $29.8 million, respectively. The amount associated with these hedges that is expected to be reclassified from AOCI to earnings within the next 12 months is a loss of $1.3 million.

We elected to exclude forward points from the effectiveness assessment. At the end of the reporting period, we calculate the excluded amount, which is the fair value relating to the change in forward points that is recorded in current earnings as Foreign exchange losses, net in our Condensed Consolidated Statements of Income. For the three months ended December 31, 2012 and 2011, we recognized $0.8 million of net gains and $1.8 million of net losses, respectively, related to the change in forward points. For the six months ended December 31, 2012 and 2011, we recognized $1.4 million of net gains and $5.4 million of net losses, respectively, related to the change in forward points.

Effective July 1, 2011, we changed the functional currency of two of our foreign subsidiaries to the U.S. Dollar to reflect a change in the currency in which such subsidiaries primarily generate and expend cash. In addition, we recognized approximately $1.4 million as Foreign exchange losses, net in our Condensed Consolidated Statements of Income for the three and six months ended December 31, 2011 due to the revaluation of certain derivative instruments held at these subsidiaries because we did not meet the requisite documentation requirements to attain hedge accounting treatment. As of January 1, 2012, the documentation was amended to achieve hedge accounting treatment going forward.

Economic Hedges

When hedge accounting is not applied to derivative contracts, or after former cash flow hedges have been de-designated as balance sheet hedges, we recognize the gain or loss on the associated contracts directly in current period earnings in our Condensed Consolidated Statements of Income, as either Foreign exchange losses, net or Cost of sales according to the underlying exposure. As of December 31, 2012 and June 30, 2012, we had $216.5 million and $154.8 million, respectively, of forward contracts maturing through October 2013 and August 2012, respectively, in various currencies to hedge foreign currency denominated intercompany loans and other foreign currency denominated assets. At December 31, 2012 and June 30, 2012, the fair values of these contracts were assets of $1.6 million and $8.8 million, respectively. Adjustments to the carrying value of the foreign currency forward contracts offset the gains and losses on the underlying loans and other foreign denominated assets in other Foreign exchange losses, net.

Interest Rate Risk Management

We have one interest rate swap contract with a notional amount of $20.6 million and $20.3 million at December 31, 2012 and June 30, 2012, respectively, in order to manage our interest rate exposure and effectively convert interest on an operating lease from a variable rate to a fixed rate. The objective of the swap is to offset changes in rent expenses caused by interest rate fluctuations. The interest rate swap contract is designated as a cash flow hedge. At the end of each reporting period, the discounted fair value of the swap contract is calculated and recorded in AOCI and reclassified to rent expense within SG&A in our Condensed Consolidated Statements of Income, in the then current period. If the hedge is determined to be ineffective, the ineffective portion will be reclassified from AOCI and recorded as rent expense within SG&A. We recognized an immaterial amount of ineffectiveness in each of the three and six months ended December 31, 2012 and 2011, in our Condensed Consolidated Statements of Income. All components of the derivatives were included in the assessment of the hedges’ effectiveness. The amount associated with the swap contract that is expected to be recorded as rent expense in the next 12 months is a loss of $0.6 million.

Fair Value of Derivatives

The following tables provide a summary of the fair value amounts of our derivative instruments at December 31, 2012 and June 30, 2012:

		Fair Value
	Balance Sheet Location	December 31, 2012			June 30, 2012
Derivatives Designated as Cash Flow Hedges, Gross:
Other assets:
Foreign exchange contracts	Other current assets	$	3,192		$	30,761
Other liabilities:
Foreign exchange contracts	Accrued liabilities		5,918			979
Interest rate swap	Accrued liabilities		737			712
Interest rate swap	Other non-current liabilities		0			285
Total liabilities			6,655			1,976
Net (liability)/asset for derivatives designated as hedging instruments			(3,463	)		28,785
		Fair Value
		December 31, 2012			June 30, 2012
Derivatives Designated as Economic Hedges, Gross:
Other assets:
Foreign exchange contracts	Other current assets		4,308			9,864
Other liabilities:
Foreign exchange contracts	Accrued liabilities		2,743			1,057
Net asset for economic hedges:			1,565			8,807
Total net derivative (liability)/asset		$	(1,898	)	$	37,592

Derivative Activity

The following table shows derivative activity for derivatives designated as cash flow hedges for the three months ended December 31, 2012 and 2011:

Derivative	Location of Derivative Gain/(Loss) Recognized in Income	Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)						Gain/(Loss) Recognized in Income  on Derivatives (Ineffective Portion)						Gain/(Loss) from Amounts Excluded from Effectiveness Testing
		Three Months Ended December 31,
		2012			2011			2012			2011			2012		2011
Foreign exchange contracts	Cost of sales	$	9,931		$	(517	)	$	0		$	0		$	0	$	2
Foreign exchange contracts	SG&A		141			0			0			0			0		0
Foreign exchange contracts	Foreign exchange losses, net		0			0			0			0			841		(1,814	)
Interest rate swap	SG&A		(192	)		(146	)		(1	)		(3	)		0		0
Total cash flow hedges		$	9,880		$	(663	)	$	(1	)	$	(3	)	$	841	$	(1,812	)

Derivative	Gain/(Loss) Recognized in AOCI (Effective Portion)
	Three Months Ended December 31,
	2012			2011
Foreign exchange contracts	$	(9,484	)	$	25,619
Interest rate swap		(24	)		(40	)
Total cash flow hedges	$	(9,508	)	$	25,579

The following table shows derivative activity for derivatives designated as cash flow hedges for the six months ended December 31, 2012 and 2011:

Derivative	Location of Derivative Gain/(Loss) Recognized in Income	Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)						Gain/(Loss) Recognized in Income  on Derivatives (Ineffective Portion)						Gain/(Loss) from Amounts Excluded from Effectiveness Testing
		Six Months Ended December 31,
		2012			2011			2012			2011			2012		2011
Foreign exchange contracts	Cost of sales	$	27,765		$	(11,383	)	$	0		$	0		$	0	$	2
Foreign exchange contracts	SG&A		78			0			0			0			0		0
Foreign exchange contracts	Foreign exchange losses, net		0			0			0			0			1,395		(5,462	)
Interest rate swap	SG&A		(365	)		(309	)		(3	)		(4	)		0		0
Total cash flow hedges		$	27,478		$	(11,692	)	$	(3	)	$	(4	)	$	1,395	$	(5,460	)

Derivative	Gain/(Loss) Recognized in AOCI (Effective Portion)
	Six Months Ended December 31,
	2012			2011
Foreign exchange contracts	$	(11,148	)	$	60,367
Interest rate swap		(86	)		(338	)
Total cash flow hedges	$	(11,234	)	$	60,029

The following table summarizes gains and losses from our derivative instruments that are not designated as hedging instruments for the three and six months ended December 31, 2012 and 2011:

		Three Months Ended December 31,						Six Months Ended December 31,
Derivative	Location of Derivative Gain/(Loss)	2012			2011			2012			2011
Foreign exchange contracts	Cost of sales	$	(3,314	)	$	(5,844	)	$	(5,172	)	$	(4,597	)
Foreign exchange contracts	Foreign exchange losses, net		2,363			4,794			2,752			6,345

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Acquisitions (Schedule Of Assets And Liabilities Assumed At Fair Values On Acquisition) (Detail) (USD $) In Thousands, unless otherwise specified	Jul. 22, 2011
Business Acquisition [Line Items]
Cash and cash equivalents	$ 1,465
Accounts receivable	4,434
Inventories	1,062
Other current assets	42
Current assets	7,003
Property, plant and equipment	273
Goodwill	79,757
Intangibles	20,600
Other noncurrent assets	1,091
Total assets	108,724
Accounts payable	5,187
Accrued liabilities	206
Total current liabilities	5,393
Other noncurrent liabilities	1,125
Total liabilities	6,518
Net assets	$ 102,206

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Net income	$ 47,489	$ 59,255	$ 102,044	$ 107,622
Foreign currency translation	15,264	(26,252)	24,470	(110,394)
Unrealized (losses) gains on hedging derivatives	(19,367)	26,272	(38,678)	71,785
Pension liability adjustment	1,172	(139)	2,082	(484)
Unrealized gains (losses) on available for sale securities	242	1	351	(177)
Other comprehensive income before taxes	(2,689)	(118)	(11,775)	(39,270)
Income taxes	4,871	(8,295)	10,508	(19,946)
Other comprehensive income (loss), net of taxes	2,182	(8,413)	(1,267)	(59,216)
Comprehensive income, net of taxes	$ 49,671	$ 50,842	$ 100,777	$ 48,406

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Earnings Per Share

6 Months Ended

Dec. 31, 2012

Earnings Per Share

Note 7 – Earnings Per Share

We apply the two-class method when computing earnings per share, which requires that net income per share for each class of shares entitled to dividends be calculated assuming all of our net income is distributed as dividends to these shareholders based on their contractual rights.

The following table presents the calculation of basic and diluted earnings per share of common stock outstanding:

	Three Months Ended December 31,
	2012				2011
	Basic		Diluted		Basic		Diluted
Numerator for Basic and Diluted Earnings per Share:
Net income	$	47,489	$	47,489	$	59,255	$	59,255
Denominator for Basic and Diluted Earnings per Share:
Weighted average shares outstanding		69,009		69,009		71,463		71,463
Employee stock options		0		725		0		836
Total weighted average shares outstanding		69,009		69,734		71,463		72,299
Earnings per Share:
Earnings per share	$	0.69	$	0.68	$	0.83	$	0.82
	Six Months Ended December 31,
	2012				2011
	Basic		Diluted		Basic		Diluted
Numerator for Basic and Diluted Earnings per Share:
Net income	$	102,044	$	102,044	$	107,622	$	107,622
Denominator for Basic and Diluted Earnings per Share:
Weighted average shares outstanding		68,846		68,846		71,265		71,265
Employee stock options		0		736		0		820
Total weighted average shares outstanding		68,846		69,582		71,265		72,085
Earnings per Share:
Earnings per share	$	1.48	$	1.47	$	1.51	$	1.49

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities, as defined under GAAP, and are included in the computation of earnings per share pursuant to the two-class method.

Certain options were outstanding and not included in the computation of diluted net earnings per share because the assumed exercise of these options would have been antidilutive. Options to purchase 1,642,862 and 1,767,021 shares of our common stock were outstanding for the three months ended December 31, 2012 and 2011, respectively, and were excluded from the computation of diluted earnings per share because they would have been antidilutive. In addition, 0 and 8,274 restricted shares and restricted stock units were outstanding for the three months ended December 31, 2012 and 2011, respectively, and were excluded from the computation of diluted earnings per share as they also would have been antidilutive.

Options to purchase 1,542,575 and 1,699,565 shares of our common stock were outstanding for the six months ended December 31, 2012 and 2011, respectively, and excluded from the computation of diluted earnings per share because they would have been antidilutive. In addition, 59,352 and 4,341 restricted shares and restricted stock units were outstanding during the six months ended December 31, 2012 and 2011, respectively, and were excluded from the computation of diluted earnings per share as they also would have been antidilutive.

In October 2012, we repaid our $400 million of 1.25 percent convertible senior notes due October 15, 2012 (the “Convertible Senior Notes”), and therefore the Convertible Senior Notes had no impact on our calculation of earnings per share for the three and six months ended December 31, 2012. For the three and six months ended December 31, 2011, the conversion terms of the Convertible Senior Notes would have affected the calculation of diluted earnings per share if the price of our common stock exceeded the conversion price of the Convertible Senior Notes. The initial conversion price of the Convertible Senior Notes was approximately $104 per share, subject to adjustment in specified circumstances as described in the indenture governing the Convertible Senior Notes, as amended (the “Indenture”). Upon conversion, a holder of the Convertible Senior Notes would have received an amount per $1,000 principal amount of Convertible Senior Notes in cash equal to the lesser of $1,000 or the conversion value of the Convertible Senior Notes, determined in the manner set forth in the Indenture. If the conversion value exceeded $1,000, we would have delivered $1,000 in cash and, at our option, cash or common stock or a combination of cash and common stock for the conversion price in excess of $1,000. The conversion option was indexed to our common stock and was therefore classified as equity in our Condensed Consolidated Balance Sheet at June 30, 2012. The conversion option would not have resulted in an adjustment to net income in calculating diluted earnings per share. The dilutive effect of the conversion option was calculated using the treasury stock method. Therefore, conversion settlement shares would have been included in diluted shares outstanding if the price of our common stock exceeded the conversion price of the Convertible Senior Notes. Refer to Note 9 – Debt for more information.

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Accrued Warranties

6 Months Ended

Dec. 31, 2012

Accrued Warranties

Note 6 – Accrued Warranties

Details of our accrued warranties are as follows:

	Six Months Ended December 31,
	2012			2011
Accrued warranties, June 30	$	97,289		$	122,396
Warranty expense		33,184			28,437
Warranty payments (cash or in-kind)		(24,286	)		(25,033	)
Other(1)		4,070			(12,564	)
Accrued warranties, December 31	$	110,257		$	113,236

⁽¹⁾  Other primarily represents foreign currency translation.

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Significant Customers

6 Months Ended

Dec. 31, 2012

Significant Customers

Note 18 – Significant Customers

Presented below are the percentages of net sales to, and net accounts receivables due from, customers who represent ten percent or more of our net sales or net accounts receivable, as follows:

	Net Sales						Accounts Receivable, Net
	Six Months Ended December 31,						December 31,			June 30,
	2012			2011			2012			2012
BMW		20	%		21	%		12	%		13	%
Audi/Volkswagen		13	%		13	%		9	%		11	%
Other customers		67	%		66	%		79	%		76	%
Total		100	%		100	%		100	%		100	%

We anticipate that BMW and Audi/Volkswagen will continue to account for a significant portion of our net sales and net accounts receivable for the foreseeable future. Our customers are not obligated to any long-term purchase of our products.

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Fair Value Measurements

6 Months Ended

Dec. 31, 2012

Fair Value Measurements

Note 14 – Fair Value Measurements

Pursuant to the accounting guidance for fair value instruments, fair value is defined as the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, we consider the principal or most advantageous market in which it would transact and we consider assumptions that market participants would use when pricing the asset or liability.

Fair Value Hierarchy

Under fair value accounting guidance, there is a three-tier fair value hierarchy to prioritize the inputs used in measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions.

The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels are defined as follows:

Level 1:	Observable inputs, such as unadjusted quoted market prices in active markets for the identical asset or liability.
Level 2:	Inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.
Level 3:	Unobservable inputs that reflect the entity’s own assumptions in measuring the asset or liability at fair value.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

For assets and liabilities measured at fair value on a recurring basis, fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for the identical assets and liabilities, such measurements involve developing assumptions based on market observable data, and in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date.

The following tables provide the fair value hierarchy for assets and liabilities measured on a recurring basis and the losses recorded during the periods presented:

	Fair Value at December 31, 2012								Fair Value at June 30, 2012
Description	Level 1		Level 2			Level 3			Level 1		Level 2			Level 3
Assets/(Liabilities):
Short-term investments	$	81,166	$	0		$	0		$	203,014	$	0		$	0
Available-for-sale securities		1,943		0			0			1,805		0			0
Foreign exchange contracts		0		(1,161	)		0			0		38,589			0
Interest rate swap		0		(737	)		0			0		(997	)		0
Pension assets		7,236		0			0			7,011		0			0
Contingent Consideration		0		0			(9,888	)		0		0			(22,100	)
Net asset/(liability)	$	90,345	$	(1,898	)	$	(9,888	)	$	211,830	$	37,592		$	(22,100	)

	Total Gains for  the Three Months Ended December 31,					Total Gains for the Six Months Ended December 31,
Description of Liability	2012			2011		2012			2011
Contingent Consideration	$	(12,500	)	$	0	$	(12,500	)	$	0

The following describes the valuation methodologies we use to measure assets and liabilities accounted for at fair value on a recurring basis:

Short-Term Investments and Available-for-Sale Securities: Short-term investments and available-for-sale securities are classified as Level 1 as the fair value was determined from market quotes obtained from financial institutions in active markets.

Foreign Exchange Contracts: We use foreign exchange contracts to hedge market risks relating to possible adverse changes in foreign currency exchange rates. Our foreign exchange contracts were measured at fair value using Level 2 inputs. Such inputs include foreign currency exchange spot and forward rates for similar transactions in actively quoted markets.

Interest Rate Swap: We use an interest rate swap to hedge market risk relating to possible adverse changes in interest rates. We have elected to use the income approach to value our interest rate swap contract, which uses observable Level 2 inputs at the measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted). Level 2 inputs for the swap contract valuation are limited to quoted prices for similar assets or liabilities in active markets (specifically futures contracts on LIBOR, for the first two years) and inputs other than quoted prices that are observable for the asset or liability (specifically LIBOR cash and swap rates) at commonly quoted intervals, and credit risk. These key inputs, including the LIBOR cash rates for very short-term, futures rates for up to two years, and LIBOR swap rates beyond the derivative maturity are used to construct the swap yield curve and discount the future cash flows to present value at the measurement date. As the interest rate swap contract is a derivative asset, a credit default swap basis available at commonly quoted intervals has been collected from Bloomberg and applied to all cash flows. If the interest rate swap contract was determined to be a derivative liability, we would be required to reflect potential credit risk to lenders using a borrowing rate specific to our company. See Note 13 – Derivatives, for more information regarding our derivative financial instruments.

Pension Assets: Our pension assets have been valued using Level 1 inputs as quoted prices in an active market exist for these assets.

Contingent Consideration: We used a probability-weighted discounted cash flow approach (a form of the income approach) in determining the original fair value of the contingent consideration of $22.1 million related to the acquisition of MWM Acoustics. The principal inputs to the approach included our expectations of the specific business’ earnings before income taxes (“EBIT”) in fiscal 2014 and a discount rate of 12.6 percent, that began with our weighted average cost of capital related to this acquisition of 19.0 percent and adjusted for the risks associated with the underlying EBIT outcome, the functional form of the payout and our credit risk associated with making the payment. Given the use of significant inputs that are not observable in the market, the contingent consideration liability is classified within Level 3 of the fair value hierarchy. In the three and six months ended December 31, 2012, we reassessed our expectations of the EBIT in fiscal year 2014 and revised our estimate of the contingent consideration liability and reduced the liability by $12.5 million to $9.6 million, which was recognized within SG&A in our Condensed Consolidated Statement of Income. In addition, we recorded $0.3 million of contingent consideration related to the earn-out in the Interchain acquisition. Refer to Note 22 – Acquisitions for more information on the contingent consideration liability.

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. These assets can include loans and long-lived assets that have been reduced to fair value when they are held for sale, impaired loans that have been reduced based on the fair value of the underlying collateral, cost and equity method investments and long-lived assets that are written down to fair value when they are impaired and the remeasurement of retained investments in formerly consolidated subsidiaries upon a change in control that results in deconsolidation of a subsidiary if we sell a controlling interest and retain a non-controlling stake in the entity. Assets that are written down to fair value when impaired and retained investments are not subsequently adjusted to fair value unless further impairment occurs.

The following table provides the carrying value for assets and liabilities measured on a non-recurring basis, all of which are measured under Level 3 of the fair value hierarchy. There were no losses recognized in the three and six months ended December 31, 2012 and 2011.

Description of Assets	December 31, 2012		June 30, 2012
Goodwill	$	180,757	$	180,811
Long-lived assets		446,284		459,112
Total	$	627,041	$	639,923

The following describes the valuation methodologies we use to measure financial and non-financial instruments accounted for at fair value on a non-recurring basis.

Goodwill: Goodwill is evaluated for impairment annually or more frequently if an event or circumstance indicates that an impairment loss may have been incurred.

Long-lived Assets: Long-lived assets include Property, plant and equipment, net and intangible assets, and are valued using the best information available, including quoted market prices or market prices for similar assets when available or internal cash flow estimates discounted at an appropriate interest rate or independent appraisals, as appropriate. For real estate, cash flow estimates are based on current market estimates that reflect current and projected lease profiles and available industry information about expected trends in rental, occupancy and capitalization rates.

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Income Taxes

6 Months Ended

Dec. 31, 2012

Income Taxes

Note 10 – Income Taxes

Our provision for income taxes is based on an estimated annual tax rate for the year applied to federal, state and foreign income. Income tax expense for the three months ended December 31, 2012 and 2011 was $14.8 million and $22.7 million, respectively. The effective tax rate for the three months ended December 31, 2012 and 2011 was 23.7 percent and 27.7 percent, respectively. The change in the effective tax rate for the three months ended December 31, 2012 compared to same period in the prior year was primarily due to the tax effect of foreign exchange gains recorded in the same period in the prior year, foreign exchange losses recorded in the three months ended December 31, 2012 and the mix of income in certain key foreign jurisdictions.

Income tax expense for the six months ended December 31, 2012 and 2011 was $32.0 million and $37.6 million, respectively. The effective tax rate for the six months ended December 31, 2012 and 2011 was 23.9 percent and 25.9 percent, respectively. The change in the effective tax rate for the six months ended December 31, 2012 compared to same period in the prior year was primarily due to the tax effect of foreign exchange gains and losses, as noted above, and the mix of income in certain key foreign jurisdictions.

As of December 31, 2012, unrecognized tax benefits and the related interest were $35.8 million and $1.7 million, respectively; all but $1.7 million would affect the tax rate if recognized. During the three and six months ended December 31, 2012 we recorded tax reserves on uncertain tax positions in the amount of $0.7 million and $1.6 million, respectively. During the three and six months ended December 31, 2012, we recorded additional interest expense on uncertain tax positions of $0.4 million and $0.5 million, respectively.

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Share-Based Compensation (Schedule Of Nonvested Restricted Stock Unit Activity) (Detail) (Restricted Stock Units [Member])	6 Months Ended
	Dec. 31, 2012
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested at June 30, 2012, Shares	1,939,364
Granted, Shares	549,864
Vested, Shares	(429,704)
Forfeited, Shares	(296,496)
Nonvested at December 31, 2012, Shares	1,763,028

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Goodwill

6 Months Ended

Dec. 31, 2012

Goodwill

Note 8 – Goodwill

During the three and six months ended December 31, 2012, we recorded $0.6 million of goodwill in our Infotainment segment associated with the acquisition of Interchain Solution Private Limited (“Interchain”). During the three and six months ended December 31, 2011, we recorded $0 and $79.8 million, respectively of goodwill in our Lifestyle segment, associated with the acquisition of Harman Embedded Audio, LLC (formerly known as MWM Acoustics LLC) and certain related entities (“MWM Acoustics”). Refer to Note 22 – Acquisitions for more information.

We did not recognize any impairment charges in our Condensed Consolidated Statements of Income in the three and six months ended December 31, 2012 and 2011.

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Debt

6 Months Ended

Dec. 31, 2012

Debt

Note 9 – Debt

Short Term Borrowings

At December 31, 2012 and June 30, 2012, we had $0.2 million of short-term borrowings outstanding in each period. At December 31, 2012 and June 30, 2012, we maintained lines of credit of $27.8 million and $17.8 million in the aggregate, respectively, in Hungary, China, the U.S., Austria and Brazil.

We classify our debt based on the contractual maturity dates of the underlying debt instruments. We defer costs associated with debt issuance over the applicable term of the debt. These costs are amortized to Interest expense, net in our Condensed Consolidated Statements of Income.

New Credit Agreement

On October 10, 2012, we and Harman Holding GmbH & Co. KG (“Harman KG”), entered into a Multi-Currency Credit Agreement (the “New Credit Agreement”) with a group of banks. The New Credit Agreement provides for (i) a five-year unsecured multi-currency revolving credit facility (the “New Revolving Credit Facility”) in the amount of $750 million (the “Aggregate Revolving Commitment”) with availability in currencies other than the United States Dollar of up to $550 million and (ii) a five-year unsecured United States Dollar term loan facility (the “Term Facility” and collectively with the New Revolving Credit Facility, the “Facilities”) in the amount of $300 million (the “Aggregate Term Commitment” and collectively with the Aggregate Revolving Commitment, the “Aggregate Commitment”). Up to $60 million of the Aggregate Revolving Commitment will be available for letters of credit. Subject to certain conditions set forth in the New Credit Agreement, the Aggregate Commitment may be increased by up to $250 million. We may select interest rates for the Facilities equal to (i) LIBOR plus an applicable margin or (ii) a base rate plus an applicable margin, which in each case is determined based on our credit rating. We are obligated to pay a facility fee on the Aggregate Revolving Commitment, whether drawn or undrawn, which is determined based on our credit rating. Any proceeds from borrowings under the Facilities may be used for general corporate purposes.

The New Credit Agreement includes certain financial condition covenants, including covenants that do not permit us to allow (i) our ratio of consolidated EBITDA to consolidated cash interest expense to be less than 3.5:1.0 or (ii) our ratio of consolidated total debt to consolidated EBITDA to exceed 3.5:1.0, or following certain acquisitions, 4.0:1.0, each calculated as of the end of the applicable fiscal quarter on a rolling four-quarter basis. The terms “consolidated EBITDA,” “consolidated cash interest expense,” and “consolidated total debt” are defined in the New Credit Agreement.

The New Credit Agreement also contains certain negative covenants that limit, among other things, our ability to pay dividends, permit certain of our subsidiaries to incur debt, incur liens, make fundamental changes, sell assets, undertake transactions with affiliates and undertake sale and leaseback transactions. The Facilities are subject to acceleration upon certain specified events of default, including failure to make timely payments, breaches of representations or covenants, or a change of control, as such term is defined in the New Credit Agreement.

On October 10, 2012, in connection with the execution of the New Credit Agreement, we, Harman KG, and certain of our subsidiaries, entered into a guarantee agreement (the “New Guarantee Agreement”), that provides, among other things, that the obligations under the New Credit Agreement are guaranteed by us and each of the subsidiary guarantors named therein.

Upon the signing of the New Credit Agreement, we voluntarily terminated the Multi-Currency Credit Agreement, entered into on December 1, 2010, as amended on December 15, 2011 and July 2, 2012 (“the Credit Agreement”), as well as the guarantee and collateral agreement entered into in connection with the Credit Agreement. There were no outstanding borrowings under the Credit Agreement as of October 10, 2012, and no early termination penalties were incurred by us as a result of the termination of the Credit Agreement and all of the approximately $8.7 million of letters of credit that were previously outstanding under the Credit Agreement were deemed to be issued and outstanding under the New Credit Agreement.

On October 10, 2012, we borrowed $300 million under the Term Facility to finance, in part, the repayment of all the outstanding $400 million principal amount of Convertible Senior Notes and accrued and unpaid interest thereon. See “Convertible Senior Notes” below for additional information.

At December 31, 2012, there were no outstanding borrowings and approximately $8.7 million of outstanding letters of credit under the New Revolving Credit Facility and $300 million of outstanding borrowings under the Term Facility, of which $30 million is included in our Condensed Consolidated Balance Sheet as Current portion of long-term debt and $270.0 million is classified as Long-term debt. At December 31, 2012, unused available credit under the New Revolving Credit Facility was $741.3 million. In connection with the New Credit Agreement, we incurred $6.1 million of fees and other expenses which are included within Other assets in our Condensed Consolidated Balance Sheet at December 31, 2012. These costs will be amortized over the term of the New Credit Agreement to Interest expense, net in our Condensed Consolidated Statement of Income on a straight-line basis. In addition, during the three and six months ended December 31, 2012, we wrote off $1.1 million of debt issuance costs to Interest expense, net, associated with the Credit Agreement, which represented the portion of these costs that were attributed to the Credit Agreement.

At December 31, 2012, long-term debt maturing in each of the next five fiscal years and thereafter is as follows:

2013	$	15,000
2014		30,000
2015		35,625
2016		43,125
2017		135,000
Thereafter		41,250
Total	$	300,000

If we do not meet the forecast in our budgets, we could violate our debt covenants and, absent a waiver from our lenders or an amendment to the New Credit Agreement, we could be in default under the New Credit Agreement. As a result, our debt under the New Credit Agreement could become due, which would have a material adverse effect on our financial condition and results of operations. As of December 31, 2012, we were in compliance with all the financial covenants of the New Credit Agreement.

Convertible Senior Notes

At December 31, 2012 and June 30, 2012, we had $0 and $400 million of Convertible Senior Notes outstanding , which were originally issued on October 23, 2007 (the “Issuance Date”) and were due on October 15, 2012. The Convertible Senior Notes were issued at par and we paid interest at a rate of 1.25 percent per annum on a semiannual basis. On October 15, 2012, the maturity date for the Convertible Senior Notes, we repaid all of the outstanding $400 million principal amount of Convertible Senior Notes and accrued and unpaid interest thereon held by affiliates of Kohlberg Kravis Roberts & Co. (“KKR”) and Goldman Sachs Capital Partners (“GSCP”) and other investors. The repayment of principal was funded by $300 million of borrowings under the Term Facility and $100 million of cash on hand.

Total interest expense related to the Convertible Senior Notes for the three months ended December 31, 2012 and 2011 includes $0.2 million and $1.3 million, respectively, of contractual cash interest expense, an additional $0.7 million and $4.2 million of noncash interest expense, respectively, related to the amortization of the discount and $0.1 million and $0.2 million, respectively, related to the amortization of debt issuance costs. Total interest expense related to the Convertible Senior Notes for the six months ended December 31, 2012 and 2011 includes $1.5 million and $2.5 million, respectively, of contractual cash interest expense, an additional $5.0 million and $8.4 million of noncash interest expense, respectively, related to the amortization of the discount, and $0.3 million and $0.4 million, respectively, related to the amortization of debt issuance costs.

Registration Rights Agreement

On October 23, 2007, we entered into a registration rights agreement (the “Registration Rights Agreement”) requiring us to register the Convertible Senior Notes and the shares contingently issuable upon conversion of the Convertible Senior Notes. On October 23, 2008, we filed an automatically effective registration statement with the SEC to meet this requirement. We were required to keep the registration statement effective until the earlier of (a) such time as the Convertible Senior Notes and the shares contingently issuable under the Convertible Senior Notes (1) are sold under an effective registration statement or pursuant to Rule 144 of the Securities Act of 1933, (2) are freely transferable under Rule 144 more than one year following October 23, 2007, or (3) cease to be outstanding, and (b) five years and three months following October 23, 2007.

On October 21, 2011, we entered into an Amendment to the Registration Rights Agreement with the holders of the Convertible Senior Notes, which provides for the postponement of our obligation to file a new registration statement covering the Convertible Senior Notes until such time as one of the holders of the Convertible Senior Notes demands that we file a registration statement. Upon the receipt of such a demand, we would have seven business days to file a registration statement with the SEC covering the Convertible Senior Notes. On October 15, 2012, the Registration Rights Agreement was terminated in accordance with its terms upon the repayment of all outstanding principal and interest related to the Convertible Senior Notes.

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Shareholders' Equity

6 Months Ended

Dec. 31, 2012

Shareholders' Equity

Note 11 – Shareholders’ Equity

Preferred Stock

As of December 31, 2012 and June 30, 2012, 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 December 31, 2012 and June 30, 2012, we had 96,848,238 and 96,132,542 shares issued; 28,992,092 and 28,846,226 shares in treasury stock and 67,856,146 and 67,286,316 shares outstanding (net of treasury stock), respectively.

Share Buy-Back Program

On October 26, 2011, we announced that our Board of Directors authorized the repurchase of up to $200 million of our common stock (the “Buyback Program”). The Buyback Program allows us to purchase shares of our common stock in accordance with applicable securities laws on the open market, or through privately negotiated transactions, through October 25, 2012. We entered into an agreement with an external broker, which provides the structure under which the program may be facilitated which expired on October 25, 2012. On October 23, 2012, the Board of Directors approved an extension of the Buyback Program through October 25, 2013. The Buyback Program may be suspended or discontinued at any time. We will determine the timing and the amount of any repurchases based on an evaluation of market conditions, share price and other factors. During the three and six months ended December 31, 2012, we repurchased 15,900 shares and 145,866 shares, respectively, at a cost of $0.6 million and $5.4 million, respectively, under the Buyback Program for a total buyback of 3,392,275 shares at a cost of $129.3 million.

Changes in Equity:

The following is a summary of the changes in Accumulated Other Comprehensive Income (“AOCI”) and changes in equity for the six months ended December 31, 2012 and 2011:

	Preferred Stock		Common Stock		Additional Paid-in Capital		AOCI			Retained Earnings			Treasury Stock			Total Equity
Balance at June 30, 2012	$	0	$	961	$	943,971	$	29,709		$	1,726,486		$	(1,171,516	)	$	1,529,611
Net income		0		0		0		0			102,044			0			102,044
Comprehensive loss, net		0		0		0		(1,267	)		0			0			(1,267	)
Treasury stock repurchases		0		0		0		0			0			(5,398	)		(5,398	)
Exercise of stock options, net of shares received		0		7		7,473		0			0			0			7,480
Share-based compensation, net of tax		0		0		7,621		0			0			0			7,621
Dividends ($0.60 per share)		0		0		0		0			(20,794	)		0			(20,794	)
Balance at December 31, 2012	$	0	$	968	$	959,065	$	28,442		$	1,807,736		$	(1,176,914	)	$	1,619,297

	Preferred Stock		Common Stock		Additional Paid-in Capital			AOCI			Retained Earnings			Treasury Stock			Total Equity
Balance at June 30, 2011	$	0	$	956	$	915,433		$	136,733		$	1,418,106		$	(1,047,570	)	$	1,423,658
Net income		0		0		0			0			107,622			0			107,622
Comprehensive loss, net		0		0		0			(59,216	)		0			0			(59,216	)
Exercise of stock options, net of shares received		0		2		(28	)		0			0			0			(26	)
Share-based compensation, net of tax		0		0		7,631			0			0			0			7,631
Dividends ($0.30 per share)		0		0		0			0			(10,504	)		0			(10,504	)
Balance at December 31, 2011	$	0	$	958	$	923,036		$	77,517		$	1,515,224		$	(1,047,570	)	$	1,469,165

At December 31, 2012 and June 30, 2012, AOCI consisted of the following:

Income/(Loss):	December 31, 2012			June 30, 2012
Cumulative translation adjustment	$	70,364		$	45,894
Pension liability adjustment		(36,279	)		(38,447	)
Unrealized (loss) gain on hedging derivatives		(1,750	)		26,296
Unrealized loss on available-for-sale securities		(3,893	)		(4,034	)
Total AOCI	$	28,442		$	29,709

We have approximately $1.9 million and $1.8 million of investments at December 31, 2012 and June 30, 2012, respectively, included in Other current assets in our Condensed Consolidated Balance Sheets that have been classified as available-for-sale securities. These securities are recorded at fair value with realized gains and losses recorded in income and unrealized gains and losses recorded in AOCI, net of taxes.

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Derivatives (Summary Of Fair Value Amounts Of Derivative Instruments) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Derivative [Line Items]
Fair Value Asset (Liability) Net	$ (1,898)	$ 37,592
Other Current Assets [Member] | Foreign Exchange Contracts [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instrument [Member]
Derivative [Line Items]
Fair Value Assets	3,192	30,761
Other Current Assets [Member] | Foreign Exchange Contracts [Member] | Economic Hedges, Gross [Member] | Designated As Hedging Instrument [Member]
Derivative [Line Items]
Fair Value Assets	4,308	9,864
Accrued Liabilities [Member] | Foreign Exchange Contracts [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instrument [Member]
Derivative [Line Items]
Fair Value Liabilities	5,918	979
Accrued Liabilities [Member] | Foreign Exchange Contracts [Member] | Economic Hedges, Gross [Member] | Designated As Hedging Instrument [Member]
Derivative [Line Items]
Fair Value Liabilities	2,743	1,057
Accrued Liabilities [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instrument [Member]
Derivative [Line Items]
Fair Value Liabilities	737	712
Other Non-Current Liabilities [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instrument [Member]
Derivative [Line Items]
Fair Value Liabilities	0	285
Total Liabilities [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instrument [Member]
Derivative [Line Items]
Fair Value Liabilities	6,655	1,976
Net (liability)/asset [Member] | Economic Hedges, Gross [Member] | Designated As Hedging Instrument [Member]
Derivative [Line Items]
Fair Value Assets	1,565	8,807
Net (liability)/asset [Member] | Hedging Instruments [Member] | Cash Flow Hedging [Member] | Designated As Hedging Instrument [Member]
Derivative [Line Items]
Fair Value Asset (Liability) Net	$ (3,463)	$ 28,785

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Derivatives (Summary Of Gains And Losses From Derivative Instruments That Are Not Designated As Hedging Instruments) (Detail) (Foreign Exchange Contracts [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Cost of Sales [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gains and losses from derivative instruments that are not designated as hedging instruments	$ (3,314)	$ (5,844)	$ (5,172)	$ (4,597)
Foreign exchange losses, net [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gains and losses from derivative instruments that are not designated as hedging instruments	$ 2,363	$ 4,794	$ 2,752	$ 6,345

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Derivatives (Schedule Of Outstanding Foreign Exchange Contracts, Including Forward And Option Contracts) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Derivative [Line Items]
Gross Notional Value	$ 650,397	$ 793,186
Fair Value Asset/(Liability)	(1,162)	38,589
U.S. Dollar/Euro [Member]
Derivative [Line Items]
Gross Notional Value	488,264	686,500
Fair Value Asset/(Liability)	(2,852)	37,962
Euro/U.S. Dollar [Member]
Derivative [Line Items]
Gross Notional Value	45,750	28,750
Fair Value Asset/(Liability)	1,670	(1,056)
Swiss Franc/U.S. Dollar [Member]
Derivative [Line Items]
Gross Notional Value	41,496	0
Fair Value Asset/(Liability)	871	0
Chinese Yuan/U.S. Dollar [Member]
Derivative [Line Items]
Gross Notional Value	29,853	36,040
Fair Value Asset/(Liability)	501	(428)
Japanese Yen/Euro [Member]
Derivative [Line Items]
Gross Notional Value	26,143	31,280
Fair Value Asset/(Liability)	(1,810)	1,695
U.S. Dollar/British Pound [Member]
Derivative [Line Items]
Gross Notional Value	5,685	0
Fair Value Asset/(Liability)	(58)	0
British Pound/U.S. Dollar [Member]
Derivative [Line Items]
Gross Notional Value	4,873	0
Fair Value Asset/(Liability)	209	0
Hungarian Forint/Euro [Member]
Derivative [Line Items]
Gross Notional Value	4,509	8,816
Fair Value Asset/(Liability)	245	414
British Pound/Swiss Franc [Member]
Derivative [Line Items]
Gross Notional Value	2,924	0
Fair Value Asset/(Liability)	(18)	0
U.S. Dollar/Japanese Yen [Member]
Derivative [Line Items]
Gross Notional Value	900	1,800
Fair Value Asset/(Liability)	$ 80	$ 2

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Shareholders' Equity (Tables)

6 Months Ended

Dec. 31, 2012

Schedule Of Changes In Accumulated Other Comprehensive Income And Changes In Equity

The following is a summary of the changes in Accumulated Other Comprehensive Income (“AOCI”) and changes in equity for the six months ended December 31, 2012 and 2011:

	Preferred Stock		Common Stock		Additional Paid-in Capital		AOCI			Retained Earnings			Treasury Stock			Total Equity
Balance at June 30, 2012	$	0	$	961	$	943,971	$	29,709		$	1,726,486		$	(1,171,516	)	$	1,529,611
Net income		0		0		0		0			102,044			0			102,044
Comprehensive loss, net		0		0		0		(1,267	)		0			0			(1,267	)
Treasury stock repurchases		0		0		0		0			0			(5,398	)		(5,398	)
Exercise of stock options, net of shares received		0		7		7,473		0			0			0			7,480
Share-based compensation, net of tax		0		0		7,621		0			0			0			7,621
Dividends ($0.60 per share)		0		0		0		0			(20,794	)		0			(20,794	)
Balance at December 31, 2012	$	0	$	968	$	959,065	$	28,442		$	1,807,736		$	(1,176,914	)	$	1,619,297

	Preferred Stock		Common Stock		Additional Paid-in Capital			AOCI			Retained Earnings			Treasury Stock			Total Equity
Balance at June 30, 2011	$	0	$	956	$	915,433		$	136,733		$	1,418,106		$	(1,047,570	)	$	1,423,658
Net income		0		0		0			0			107,622			0			107,622
Comprehensive loss, net		0		0		0			(59,216	)		0			0			(59,216	)
Exercise of stock options, net of shares received		0		2		(28	)		0			0			0			(26	)
Share-based compensation, net of tax		0		0		7,631			0			0			0			7,631
Dividends ($0.30 per share)		0		0		0			0			(10,504	)		0			(10,504	)
Balance at December 31, 2011	$	0	$	958	$	923,036		$	77,517		$	1,515,224		$	(1,047,570	)	$	1,469,165

Schedule Of Accumulated Other Comprehensive Income

At December 31, 2012 and June 30, 2012, AOCI consisted of the following:

Income/(Loss):	December 31, 2012			June 30, 2012
Cumulative translation adjustment	$	70,364		$	45,894
Pension liability adjustment		(36,279	)		(38,447	)
Unrealized (loss) gain on hedging derivatives		(1,750	)		26,296
Unrealized loss on available-for-sale securities		(3,893	)		(4,034	)
Total AOCI	$	28,442		$	29,709

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Debt (Long-Term Debt, Maturities In Years) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012
Schedule Of Long Term Debt Maturities [Line Items]
2013	$ 15,000
2014	30,000
2015	35,625
2016	43,125
2017	135,000
Thereafter	41,250
Total	$ 300,000

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Retirement Benefits

6 Months Ended

Dec. 31, 2012

Retirement Benefits

Note 16 – Retirement Benefits

Plan Descriptions

Retirement savings plan

We provide a Retirement Savings Plan (the “Savings Plan”) for certain employees in the United States. Under the Savings Plan, and subject to certain limitations: (i) employees may contribute up to 50 percent of their pretax compensation; (ii) each business unit will make a safe harbor non-elective contribution in an amount equal to three percent of a participant’s pre-tax compensation; and (iii) each business unit may also make a matching contribution of 50 percent of an employee’s tax-deferred compensation, up to the first six percent of a participant’s pre-tax compensation. Matching contributions vest at a rate of 25 percent for each year of service with the employer, beginning with the second year of service.

Pension benefits

We provide defined pension benefits to certain eligible employees. The measurement date used for determining pension benefits is the last day of our fiscal year, June 30^th. We have certain business units in Europe and Asia that maintain defined benefit pension plans for many of our current and former employees. The coverage provided and the extent to which the retirees’ share in the cost of the program vary by business unit. Generally, plan benefits are based on age, years of service and average compensation during the final years of service. In the United States, we have a Supplemental Executive Retirement Plan (the “SERP”) that provides retirement, death and termination benefits, as defined in the SERP, to certain key executives designated by our Board of Directors. The majority of our defined benefit plans do not have contractual or statutory provisions which specify minimum funding requirements. We are in compliance with all existing contractual obligations and statutory provisions.

The following table presents the components of net periodic benefit cost for the three and six months ended December 31, 2012 and 2011:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Service cost	$	544		$	398		$	1,074		$	813
Interest cost		1,777			1,982			3,526			4,007
Expected return on plan assets		(73	)		(58	)		(145	)		(119	)
Amortization of prior service cost		291			351			584			703
Amortization of net loss		969			449			1,936			897
Net periodic benefit cost	$	3,508		$	3,122		$	6,975		$	6,301

During the three months ended December 31, 2012 and 2011, we made contributions of $1.8 million and $2.2 million, respectively, to the defined benefit pension plans, substantially all of which were paid to participants. During the six months ended December 31, 2012 and 2011, we made contributions of $4.2 million and $4.3 million, respectively, to the defined benefit pension plans which were paid to participants. We expect to make approximately $5.0 million in contributions for the remainder of the fiscal year ending June 30, 2013.

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Sale of Intellectual Property

6 Months Ended

Dec. 31, 2012

Sale of Intellectual Property

Note 21 – Sale of Intellectual Property

Effective February 15, 2011, we entered into an agreement with a third party pursuant to which we monetized certain intellectual property rights. No income was recognized in connection with this transaction in the three and six months ended December 31, 2012. Income of less than $0.1 million and $0.3 million was recognized in connection with this transaction, for the three and six months ended December 31, 2011, respectively, which is included in our Condensed Consolidated Statements of Income under the caption Sale of intellectual property.

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Goodwill (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended
	Dec. 31, 2011 MWM Acoustics [Member]	Dec. 31, 2011 MWM Acoustics [Member]	Dec. 31, 2012 Interchain Solution Private Limited [Member]	Dec. 31, 2012 Interchain Solution Private Limited [Member]
Goodwill [Line Items]
Increase in goodwill	$ 0	$ 79.8	$ 0.6	$ 0.6

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Significant Customers (Tables)

6 Months Ended

Dec. 31, 2012

Schedule Of Percentage Of Net Sales And Net Accounts Receivables Due From Customers From Continuing Operations

Presented below are the percentages of net sales to, and net accounts receivables due from, customers who represent ten percent or more of our net sales or net accounts receivable, as follows:

	Net Sales						Accounts Receivable, Net
	Six Months Ended December 31,						December 31,			June 30,
	2012			2011			2012			2012
BMW		20	%		21	%		12	%		13	%
Audi/Volkswagen		13	%		13	%		9	%		11	%
Other customers		67	%		66	%		79	%		76	%
Total		100	%		100	%		100	%		100	%

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:
Net income	$ 102,044	$ 107,622
Adjustments to reconcile net income to net cash (used in) provided by operating activities, net of acquired businesses:
Depreciation and amortization	58,843	60,192
Deferred income taxes	20,487	53,923
(Gain) loss on disposition of assets	(1,698)	851
Share-based compensation	10,227	7,921
Non-cash interest expense	7,405	9,703
Non-cash reduction in contingent liabilities	(12,500)	0
Decrease (increase) in:
Receivables, net	(30,073)	(93,782)
Inventories, net	(110,128)	(97,241)
Other current assets	(17,202)	(59,531)
Increase (decrease) in:
Accounts payable	(36,116)	35,877
Accrued warranties	9,125	(9,160)
Accrued other liabilities	(36,475)	19,569
Income taxes payable	(3,776)	(556)
Other operating activities	(12,976)	(14,575)
Net cash (used in) provided by operating activities	(52,813)	20,813
Cash flows from investing activities:
Purchases of short-term investments	(60,830)	(302,181)
Maturities of short-term investments	182,302	395,667
Acquisitions, net of cash received	(8,836)	(70,535)
Proceeds from asset dispositions	3,668	2,255
Capital expenditures	(42,608)	(52,945)
Other items, net	0	640
Net cash provided by (used in) investing activities	73,696	(27,099)
Cash flows from financing activities:
Net decrease in short-term borrowings	(26)	(1,346)
Borrowings under new credit agreement	300,000	0
Repayment of long-term debt	(400,000)	0
Debt issuance costs	(6,094)	0
Cash dividends to shareholders	(20,522)	(10,504)
Repurchase of common stock	(5,398)	0
Share-based payment arrangements	7,480	(26)
Other items, net	(1,246)	(9,268)
Net cash used in financing activities	(125,806)	(21,144)
Effect of exchange rate changes on cash	13,818	(31,659)
Net decrease in cash and cash equivalents	(91,105)	(59,089)
Cash and cash equivalents at beginning of period	617,356	603,892
Cash and cash equivalents at end of period	526,251	544,803
Supplemental disclosure of cash flow information:
Interest paid, net	4,198	1,428
Income taxes paid, net	14,122	6,015
Non-cash investing activities:
Accrued and contingent acquisition-related liabilities	$ 288	$ 28,017

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Property, Plant And Equipment, Net

6 Months Ended

Dec. 31, 2012

Property, Plant And Equipment, Net

Note 5 – Property, Plant and Equipment, net

Property, plant and equipment, net consist of the following:

	Estimated Useful Lives (in Years)		December 31, 2012			June 30, 2012
Land			$	7,572		$	8,046
Buildings and improvements		1-50		251,358			254,563
Machinery and equipment		3-20		1,052,058			1,002,539
Furniture and fixtures		3-10		26,581			29,423
Property, plant and equipment, gross				1,337,569			1,294,571
Less accumulated depreciation and amortization				(915,621	)		(864,337	)
Property, plant and equipment, net			$	421,948		$	430,234

Depreciation expense for the three months ended December 31, 2012 and 2011 was $27.7 million and $25.6 million, respectively, and was $54.2 million in each of the six month periods ended December 31, 2012 and 2011.

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Share-Based Compensation (Summary Of Stock Option Activity) (Detail) (USD $)	6 Months Ended
	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at June 30, 2012, Shares	2,410,718
Granted, Shares	486,784
Exercised, Shares	(418,870)
Forfeited or expired, Shares	(83,772)
Outstanding at December 31, 2012, Shares	2,394,860
Exercisable at December 31, 2012, Shares	1,387,244
Outstanding at June 30, 2012, Weighted Average Exercise Price Per Share	$ 54.71
Granted, Weighted Average Exercise Price Per Share	$ 47.37
Exercised, Weighted Average Exercise Price Per Share	$ 32.67
Forfeited or expired, Weighted Average Exercise Price Per Share	$ 63.73
Outstanding at December 31, 2012, Weighted Average Exercise Price Per Share	$ 56.76
Exercisable at December 31, 2012, Weighted Average Exercise Price Per Share	$ 67.94
Outstanding at June 30, 2012, Weighted Average Remaining Contractual Term (Years)	6 years 5 months 1 day
Outstanding at December 31, 2012, Weighted Average Remaining Contractual Term (Years)	6 years 7 months 28 days
Exercisable at December 31, 2012, Weighted Average Remaining Contractual Term (Years)	4 years 11 months 27 days
Outstanding at June 30, 2012, Average Intrinsic Value	$ 9,359,000
Outstanding at December 31, 2012, Average Intrinsic Value	10,440
Exercisable at December 31, 2012, Average Intrinsic Value	$ 5,673,000

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Fair Value Measurements (Fair Value Hierarchy For Assets And Liabilities Measured On Non-Recurring Basis) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Schedule Of Fair Value Measurements [Line Items]
Goodwill	$ 180,757	$ 180,811
Long-lived assets	446,284	459,112
Total	$ 627,041	$ 639,923

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Acquisitions

6 Months Ended

Dec. 31, 2012

Acquisitions

Note 22 – Acquisitions

Interchain

On July 31, 2012, we entered into an agreement to purchase certain assets and liabilities of Interchain (the “Interchain Acquisition”), a technology product company that specializes in developing telematics, fleet management, Android^® based in-vehicle infotainment and location-based solutions, for a purchase price of 45 million Indian Rupees or approximately $0.8 million, of which $0.3 million was paid on July 31, 2012 and $0.5 million was paid on October 13, 2012, which is the date the transaction closed (the “Interchain Acquisition Date”). The Interchain Acquisition is also subject to a 50 million Indian Rupee earn-out (approximately $0.9 million) which is payable upon the achievement of certain financial targets in the 12 month periods ending September 1, 2013 and September 2, 2014, which we recorded as a $0.3 million Non-current liability in our Condensed Consolidated Balance Sheet at December 31, 2012, based upon management’s estimate of its fair value. The total cost of the Interchain Acquisition including the fair value of the earn-out, was allocated to the assets acquired and liabilities assumed based on their fair values at the Interchain Acquisition Date. Goodwill of $0.6 million and intangibles of $0.4 million were recorded in connection with the acquisition. The operating results of the Interchain Acquisition, are included in our Infotainment segment. Pro-forma financial information has not been presented as the Interchain Acquisition is not material to our results of operations.

MWM Acoustics

On July 22, 2011 (the “MWM Acquisition Date”), we and our wholly-owned subsidiary, Harman Holding Limited (“Harman Holding”), entered into an equity securities purchase agreement with a group of sellers (the “MWM Sellers”), to acquire all of the issued and outstanding equity interests of MWM Acoustics, a leading provider of high performance embedded acoustic solutions (the “MWM Acquisition”), for a purchase price of $80.0 million (the “Fixed Purchase Price”), plus a working capital adjustment of $0.1 million which was determined within 60 days of the MWM Acquisition Date and has been paid. On the MWM Acquisition Date, we and Harman Holding paid the MWM Sellers a total of $72.0 million. The remainder of the Fixed Purchase Price of $8.0 million was paid in December 2012. The MWM Acquisition is also subject to a $57.0 million earn-out, which is payable contingent upon the achievement of certain financial targets in the fiscal year ended June 30, 2014. Our preliminary valuation of the contingent consideration was originally valued at $22.1 million and was reduced to $9.6 million during the second quarter of fiscal year 2013, based on revised management estimates. Refer to Note 14 – Fair Value Measurements for more information.

The total cost of the MWM Acquisition, including the fair value of the contingent consideration, was allocated to the assets acquired and liabilities assumed based on their fair values at the MWM Acquisition Date, as follows:

	July 22, 2011
Cash and cash equivalents	$	1,465
Accounts receivable		4,434
Inventories		1,062
Other current assets		42
Current assets		7,003
Property, plant and equipment		273
Goodwill		79,757
Intangibles		20,600
Other noncurrent assets		1,091
Total assets		108,724
Accounts payable		5,187
Accrued liabilities		206
Total current liabilities		5,393
Other noncurrent liabilities		1,125
Total liabilities		6,518
Net assets	$	102,206

Goodwill and intangibles were recorded in connection with the acquisition based on third-party valuations and management’s estimates for those acquired intangible assets. Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Of the $79.8 million of goodwill recognized, approximately $35.6 million is deductible for tax purposes. Intangible assets included customer relationships of $19.2 million with an approximate useful life of 10 years and technology of $1.4 million with an approximate useful life of four years. Expenses of $0.9 million were recognized in connection with this acquisition and are included in SG&A in our Consolidated Statements of Income for the fiscal year ended June 30, 2012. The operating results of MWM Acoustics are included in our Lifestyle segment. Pro-forma financial information has not been presented as the MWM Acquisition is not material to our results of operations.

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Business Segment Data (Schedule Of Reports For Net Sales And Operating Income (Loss) By Each Reporting Segment From Continuing Operations) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended			6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011		Dec. 31, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]
Net sales	$ 1,055,642	$ 1,127,029	[1]	$ 2,053,835	$ 2,177,632	[1]
Operating income (loss)	68,382	95,378	[1]	147,473	169,556	[1]
Infotainment [Member]
Segment Reporting Information [Line Items]
Net sales	540,303	599,899	[1]	1,100,827	1,203,157	[1]
Operating income (loss)	30,251	49,947	[1]	74,925	97,043	[1]
Lifestyle [Member]
Segment Reporting Information [Line Items]
Net sales	371,576	368,754	[1]	663,274	668,593	[1]
Operating income (loss)	49,832	49,605	[1]	87,091	78,926	[1]
Professional [Member]
Segment Reporting Information [Line Items]
Net sales	143,506	158,376	[1]	287,185	305,882	[1]
Operating income (loss)	19,742	22,160	[1]	39,513	38,180	[1]
Other [Member]
Segment Reporting Information [Line Items]
Net sales	257	0	[1]	2,549	0	[1]
Operating income (loss)	$ (31,443)	$ (26,334)	[1]	$ (54,056)	$ (44,593)	[1]

[1] Operating income (loss) for the three and six months ended December 31, 2011 has been revised to reflect a change in the measurement of segment operating profit due to a change in the allocation of intercompany royalties between the Lifestyle and Professional segments.

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Restructuring Program (Tables)

6 Months Ended

Dec. 31, 2012

Rollforward Of Restructuring Accrual

A summary and components of our restructuring initiatives are presented below and include accruals for new programs as well as revisions to estimates, both increases and decreases, to programs accrued in prior periods:

	Severance Related Costs			Third Party Contractor Termination Costs			Facility Closure and Other Related Costs			Asset Impairments (1)			Total
Liability, June 30, 2012	$	19,938		$	17		$	10,839		$	0		$	30,794
Expense (2)		(902	)		4			969			995			1,066
Accumulated depreciation offset		0			0			0			(995	)		(995	)
Payments		(6,774	)		(22	)		(2,414	)		0			(9,210	)
Foreign currency translation		513			1			(1	)		0			513
Liability, December 31, 2012	$	12,775		$	0		$	9,393		$	0		$	22,168
Liability, June 30, 2011	$	31,762		$	0		$	7,860		$	0		$	39,622
Expense (2)		841			280			713			1,078			2,912
Accumulated depreciation offset		0			0			0			(1,078	)		(1,078	)
Payments		(3,072	)		(280	)		(1,845	)		0			(5,197	)
Foreign currency translation		(2,144	)		0			0			0			(2,144	)
Liability, December 31, 2011	$	27,387		$	0		$	6,728		$	0		$	34,115

⁽¹⁾ Credits related to restructuring charges for accelerated depreciation and inventory provisions are recorded against the related assets in Property, plant and equipment, net or Inventories in our Condensed Consolidated Balance Sheets and do not impact the restructuring liability.

⁽²⁾ Restructuring expenses noted above are primarily in SG&A in our Condensed Consolidated Statements of Income. Asset impairments which consist of accelerated depreciation and inventory provisions are primarily in Cost of sales in our Condensed Consolidated Statements of Income.

Restructuring Expenses By Reporting Business Segment

Restructuring expenses by reporting business segment are presented below:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Infotainment	$	(565	)	$	(415	)	$	(295	)	$	92
Lifestyle		858			190			751			340
Professional		(436	)		1,077			(385	)		1,357
Other		0			45			0			45
Total		(143	)		897			71			1,834
Asset Impairments		955			0			995			1,078
Total	$	812		$	897		$	1,066		$	2,912

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Restructuring Program

6 Months Ended

Dec. 31, 2012

Restructuring Program

Note 15 – Restructuring Program

Our restructuring program that is designed to improve our global footprint, cost structure, technology portfolio, human resources and internal processes continues.

For the three and six months ended December 31, 2012 and 2011, we continued to refine and expand on activities launched in prior years. During the three and six months ended December 31, 2012, no significant new programs were launched. During the three and six months ended December 31, 2011, one significant new program was launched to optimize certain functions in our Professional segment.

A summary and components of our restructuring initiatives are presented below and include accruals for new programs as well as revisions to estimates, both increases and decreases, to programs accrued in prior periods:

	Severance Related Costs			Third Party Contractor Termination Costs			Facility Closure and Other Related Costs			Asset Impairments (1)			Total
Liability, June 30, 2012	$	19,938		$	17		$	10,839		$	0		$	30,794
Expense (2)		(902	)		4			969			995			1,066
Accumulated depreciation offset		0			0			0			(995	)		(995	)
Payments		(6,774	)		(22	)		(2,414	)		0			(9,210	)
Foreign currency translation		513			1			(1	)		0			513
Liability, December 31, 2012	$	12,775		$	0		$	9,393		$	0		$	22,168
Liability, June 30, 2011	$	31,762		$	0		$	7,860		$	0		$	39,622
Expense (2)		841			280			713			1,078			2,912
Accumulated depreciation offset		0			0			0			(1,078	)		(1,078	)
Payments		(3,072	)		(280	)		(1,845	)		0			(5,197	)
Foreign currency translation		(2,144	)		0			0			0			(2,144	)
Liability, December 31, 2011	$	27,387		$	0		$	6,728		$	0		$	34,115

⁽¹⁾ Credits related to restructuring charges for accelerated depreciation and inventory provisions are recorded against the related assets in Property, plant and equipment, net or Inventories in our Condensed Consolidated Balance Sheets and do not impact the restructuring liability.

⁽²⁾ Restructuring expenses noted above are primarily in SG&A in our Condensed Consolidated Statements of Income. Asset impairments which consist of accelerated depreciation and inventory provisions are primarily in Cost of sales in our Condensed Consolidated Statements of Income.

Restructuring liabilities are recorded in Accrued liabilities and Other non-current liabilities in our Condensed Consolidated Balance Sheets.

Restructuring expenses by reporting business segment are presented below:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Infotainment	$	(565	)	$	(415	)	$	(295	)	$	92
Lifestyle		858			190			751			340
Professional		(436	)		1,077			(385	)		1,357
Other		0			45			0			45
Total		(143	)		897			71			1,834
Asset Impairments		955			0			995			1,078
Total	$	812		$	897		$	1,066		$	2,912