Discontinued Operations

12 Months Ended

Jun. 30, 2011

Discontinued Operations

Discontinued Operations

Note 3 – Discontinued Operations

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

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

	Year Ended June 30,
	2010		2009
Net sales	$	35,309	$	36,126
Gain on sale of discontinued operations, net of income taxes		114,197		—
Income (loss) from discontinued operations, net of income taxes		9,394		(9,159	)
Net income (loss) from discontinued operations		123,591		(9,159	)
Diluted earnings (loss) per share from discontinued operations		1.75		(0.16	)

In fiscal year 2009, a $12.8 million goodwill impairment charge was recorded related to the QNX Entities.