Business Segment Data

12 Months Ended

Jun. 30, 2012

Business Segment Data

Note 17 – Business Segment Data

Effective July 1, 2011, we revised our business segments in order to better align them with our strategic approach to the markets and customers we serve. While our Professional segment was largely unaffected, we reorganized our Automotive and Consumer segments and created two new segments, Infotainment and Lifestyle. The Infotainment segment includes our infotainment business, which was previously reported in our Automotive segment, and, Aha, a business we acquired in September 2010, which was previously reported in our Other segment. Our Lifestyle segment includes our automotive audio business, which was previously reported in our Automotive segment, our Consumer segment, which was previously reported as a standalone segment, and our luxury home audio business, which was previously reported in our Professional segment. Our Professional segment includes our Professional segment, as previously reported, excluding our luxury home audio business.

Prior period segment amounts throughout the consolidated financial statements have been reclassified to the new segment structure. The reclassification of historical business segment information had no impact on our basic financial statements.

The accounting principles applied at the operating segment level in determining income from operations are the same as those applied at the consolidated financial statement level. While revenues are specifically identified with our Infotainment segment and the automotive audio portion of our Lifestyle segment, costs, expenses and assets for these businesses are allocated based on relative revenues or other measures of activity that management believes are reasonable. Goodwill was allocated to our Infotainment segment and the automotive audio portion of our Lifestyle segment based on the relative fair value of the components of our reporting units that were affected by our change in segments. Refer to Note 8 – Goodwill for more information. The effects of the change in segments on the Professional segment and the home audio portion of our Lifestyle segment were immaterial.

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 presents Net sales, Operating income, Assets, Goodwill, Capital expenditures and Depreciation and amortization by each reporting segment from continuing operations:

	Year Ended June 30,
	2012			2011			2010
Net sales:
Infotainment	$	2,401,562		$	2,088,599		$	1,836,194
Lifestyle		1,330,798			1,087,270			1,023,532
Professional		630,731			595,687			504,029
Other		987			789			673
Total	$	4,364,078		$	3,772,345		$	3,364,428
Operating income:
Infotainment	$	180,529		$	77,384		$	(4,885	)
Lifestyle		141,899			101,883			92,567
Professional		82,588			90,668			70,584
Other		(104,770	)		(79,884	)		(72,711	)
Total	$	300,246		$	190,051		$	85,555
Discontinued operations		0			0			9,483
Total	$	300,246		$	190,051		$	95,038
Assets:
Infotainment	$	962,332		$	1,149,494
Lifestyle		1,071,491			992,796
Professional		432,104			407,412
Other		703,537			508,793
Total	$	3,169,464		$	3,058,495
Goodwill:
Infotainment	$	5,856		$	8,069
Lifestyle		109,945			39,167
Professional		65,010			72,121
Other		0			0
Total	$	180,811		$	119,357
Capital expenditures:
Infotainment	$	66,050		$	61,712		$	40,985
Lifestyle		23,743			18,084			2,724
Professional		10,910			14,645			11,060
Other		11,833			13,916			5,264
Total	$	112,536		$	108,357		$	60,033
Discontinued operations		0			0			167
Total	$	112,536		$	108,357		$	60,200
Depreciation and amortization:
Infotainment	$	66,130		$	70,796		$	78,245
Lifestyle		32,890			30,773			40,640
Professional		14,149			16,432			17,828
Other		9,056			5,263			3,233
Total	$	122,225		$	123,264		$	139,946
Discontinued operations		0			0			911
Total	$	122,225		$	123,264		$	140,857

During fiscal years 2012 and 2011 we did not record any goodwill impairment charges. During the fiscal year ended June 30, 2010, we recorded goodwill impairment charges of $7.4 million and $4.9 million in our Infotainment segment and a reporting unit within our Lifestyle segment, respectively. Refer to Note 8 – Goodwill for more information.

The following table presents Net sales and long-lived assets and net assets by geographic area as of and for the years ended June 30, 2012, 2011 and 2010. Net sales are attributable to geographic areas based upon the location of the customer.

	Year Ended June 30,
	2012		2011		2010
Net sales:
U.S.	$	966,955	$	703,772	$	678,384
Germany		1,662,432		1,616,198		1,380,246
Other Europe		916,813		780,342		623,219
Other		817,878		672,033		682,579
Total	$	4,364,078	$	3,772,345	$	3,364,428
Long-lived assets:
U.S.	$	162,422	$	134,734
Germany		149,867		192,119
Other Europe		102,071		133,134
Other		44,752		32,010
Total	$	459,112	$	491,997
Net Assets
U.S.	$	126,081	$	12,777
Germany		647,114		700,722
Other Europe		605,177		598,853
Other		151,239		111,306
Total	$	1,529,611	$	1,423,658