Shareholders' Equity

6 Months Ended

Dec. 31, 2016

Equity [Abstract]

Shareholders' Equity

Note 11 – Shareholders’ Equity

Preferred Stock

As of December 31, 2016 and June 30, 2016, 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, 2016 and June 30, 2016, we had 101,678,761 and 101,157,320 shares issued; 31,805,035 and 31,112,246 shares in treasury stock; and 69,873,726 and 70,045,074 shares outstanding (net of treasury stock), respectively.

Share Buyback Program

On October 28, 2014, our Board of Directors authorized the repurchase of up to $500.0 million of our common stock over a three year period (the “2014 Buyback Program”). The 2014 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 during the authorized three year period. On November 14, 2016, Harman entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Samsung Electronics Co., Ltd., a Korean corporation (“Samsung”), Samsung Electronics America, Inc., a New York corporation and wholly owned subsidiary of Samsung, and Silk Delaware, Inc., a Delaware corporation and wholly owned subsidiary of Samsung USA (“Merger Sub”), pursuant to which Merger Sub will be merged with and into Harman  (the “Merger”), with Harman continuing as the surviving corporation and an indirect wholly owned subsidiary of Samsung.  Pursuant to the Merger Agreement, the 2014 Buyback Program has been suspended. In the event that the 2014 Buyback Program resumes, we will determine the timing and the amount of any repurchases based on an evaluation of market conditions, share price, other growth opportunities and other factors. We have and may, if the 2014 Buyback Program resumes, repurchase shares on the open market or, from time to time, through repurchase plans with one or more external brokers that provide a structure for execution of share repurchases under the 2014 Buyback Program. During the three months ended December 31, 2016 and 2015, we repurchased 241,357shares at a cost of $20.0 million and 123,850 shares at a cost of $12.9 million, respectively. During the six months ended December 31, 2016 and 2015 we repurchased 692,789shares at a cost of $55.2 million and 494,550 shares at a cost of $50.0 million, respectively, for a total cumulative buyback of 2,324,537shares at a cost of $195.2 million under the 2014 Buyback Program.

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, 2016 and 2015:

($ in thousands, except per share data)	Preferred Stock		Common Stock		Additional Paid-in Capital			AOCI			Retained Earnings			Treasury Stock			Total Equity
Balance, June 30, 2016	$	-	$	1,012	$	1,410,765		$	(77,241	)	$	2,490,570		$	(1,372,633	)	$	2,452,473
Net income		-		-		-			-			202,566			-			202,566
Other comprehensive    income, net of tax		-		-					(23,689	)		-			-			(23,689	)
Exercise of stock options		-		5		7,484			-			-			-			7,489
Repurchases related to share-    based compensation    arrangements		-		-		(14,930	)		-			-			-			(14,930	)
Share-based compensation, net		-		-		30,058			-			-			-			30,058
Excess tax benefit from share-    based compensation		-		-		27,309			-			-			-			27,309
Treasury stock repurchases		-		-		-			-			-			(55,168	)		(55,168	)
Dividends ($0.35 per share)		-		-		-			-			(49,649	)		-			(49,649	)
Balance, December 31, 2016	$	-	$	1,017	$	1,460,686		$	(100,930	)	$	2,643,487		$	(1,427,801	)	$	2,576,459

($ in thousands, except per share data)	Preferred Stock		Common Stock		Additional Paid-in Capital			AOCI			Retained Earnings			Treasury Stock			Total Harman International Industries, Incorporated Shareholders’ Equity			Non Controlling Interest			Total Equity
Balance, June 30, 2015	$	-	$	1,007	$	1,365,257		$	11,434		$	2,229,517		$	(1,232,602	)	$	2,374,613		$	18,213		$	2,392,826
Net income		-		-		-			-			199,996			-			199,996			707			200,703
Other comprehensive    income, net of tax		-		-		-			(45,245	)		-			-			(45,245	)		-			(45,245	)
Exercise of stock options		-		4		5,527			-			-			-			5,531			-			5,531
Repurchases related to    share-based compensation    arrangements		-		-		(11,861	)		-			-			-			(11,861	)		-			(11,861	)
Share-based    compensation, net		-		-		20,941			-			-			-			20,941			-			20,941
Excess tax benefit from    share-based compensation		-		-		1,958			-			-			-			1,958			-			1,958
Treasury stock repurchases		-		-		-			-			-			(50,009	)		(50,009	)		-			(50,009	)
Dividends ($0.35 per share)		-		-		-			-			(50,382	)		-			(50,382	)		-			(50,382	)
Non-controlling interest		-		-		-			-			-			-			-			(4	)		(4	)
Balance, December 31, 2015	$	-	$	1,011	$	1,381,822		$	(33,811	)	$	2,379,131		$	(1,282,611	)	$	2,445,542		$	18,916		$	2,464,458