Unauthorized Activities in Japan

6 Months Ended

Dec. 31, 2011

Unauthorized Activities In Country One [Abstract]

Unauthorized Activities in Japan

2. Unauthorized Activities in Japan

As previously reported in our Annual Report on Form 10-K for the year ended June 30, 2011, we investigated unauthorized activities at Molex Japan Ltd. Based on the results of the completed investigation, we recorded an accrued liability of $165.8 million for accounting purposes for the effect of unauthorized activities pending the resolution of the legal proceedings reported in Note 14.

We believe these unauthorized activities and related losses occurred from at least as early as 1988 through 2010. The accrued liability for these unauthorized activities was $188.6 million as of December 31, 2011, including $22.8 million in cumulative foreign currency translation, which was recorded as a component of other comprehensive income. To the extent we prevail in not having to pay all or any portion of the unauthorized loans ($165.8 million), we would recognize a gain. In addition, we have a contingent liability of $45.9 million for other loan-related expenses, interest expense and delay damages on the outstanding unauthorized loans.