<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
- ------------------------------
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended June 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________
to ____________ Commission file number _______________
- -------------------------------
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
RETIREMENT SAVINGS PLAN
(Full title of the Plan)
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
1101 PENNSYLVANIA AVENUE, NW
WASHINGTON, D.C. 20004
(Name of issuer of the securities held pursuant to the Plan
and address of its principal executive office)
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
<PAGE>
Harman International
Industries, Incorporated
Retirement Savings Plan
Financial Statements and
Supplemental Schedules
June 30, 1996 and 1995
(With Independent Auditors' Report Thereon)
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Index to Financial Statements and Supplemental Schedules
<TABLE>
<CAPTION>
Page
<S> <C>
Independent Auditors' Report 1
Statement of Net Assets Available for Plan Benefits -
June 30, 1996 2
Statement of Net Assets Available for Plan Benefits -
June 30, 1995 3
Statement of Changes in Net Assets Available for Plan Benefits -
Year ended June 30, 1996 4
Statement of Changes in Net Assets Available for Plan Benefits -
Year ended June 30, 1995 5
Notes to Financial Statements 6
Schedule
Line 27a - Schedule of Investments Held at End of Plan Year -
June 30, 1996 1
Line 27d - Schedule of Reportable Transactions -
Year ended June 30, 1996 2
Line 27b - Schedule of Loans in Default -
Year ended June 30, 1996 3
</TABLE>
All other supplemental schedules omitted are not applicable or are
not required, based on disclosure requirements of the Employee
Retirement Income Security Act of 1974 and regulations issued by the
Department of Labor.
<PAGE>
Independent Auditors' Report
The Administrative Committee of the Board of Directors
Harman International Industries, Incorporated:
We have audited the accompanying statements of net assets
available for Plan benefits of the Harman International Industries,
Incorporated Retirement Savings Plan as of June 30, 1996 and 1995 and
the related statements of changes in net assets available for Plan
benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for Plan
benefits of the Harman International Industries, Incorporated
Retirement Savings Plan as of June 30, 1996 and 1995 and the changes
in net assets available for Plan benefits for the years then ended in
conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental
information in Schedules 1 through 3 is presented for the purpose of
complying with the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974 and is not a required part of the basic financial
statements. The fund information in the statements of net assets
available for Plan benefits and the related statements of changes in
net assets available for Plan benefits is presented for purposes of
additional analysis rather than to present the net assets
available for Plan benefits and the changes in net assets available
for Plan benefits of each fund. The supplemental schedules and
fund information have been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our
opinion, are fairly stated, in all material respects, when considered in
relation to the basic financial statements taken as a whole.
/s/ KPMG Peat Marwick LLP
November 1, 1996
1
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Statement of Net Assets Available for Plan Benefits
June 30, 1996
<TABLE>
<CAPTION>
The Putnam
Fixed Fund for Company
Income Growth and Stock
Assets Fund and Income Fund
<S> <C> <C> <C>
Investments:
Guaranteed investment contracts $21,508,663 - -
Mutual funds - 15,199,934 -
Harman International Industries,
Incorporated common stock - - 6,368,068
Money market funds 52,238 - -
Pooled separate accounts - - -
Participant loans - - -
21,560,901 15,199,934 6,368,068
Contributions receivable 846,027 661,707 455,365
Total assets 22,406,928 15,861,641 6,823,433
Liabilities
Other liabilities 9,158 6,455 2,704
Net assets available for
Plan benefits $22,397,770 15,855,186 6,820,729
See accompanying notes to financial statements.
</TABLE>
2
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Statement of Net Assets Available for Plan Benefits
June 30, 1996
<TABLE>
<CAPTION>
George
Putnam Putnam New
Fund of Voyager Opportunities
Assets Boston Fund Fund
<S> <C> <C> <C>
Investments:
Guaranteed investment contracts - - -
Mutual funds 3,846,337 11,830,731 3,324,378
Harman International Industries,
Incorporated common stock - - -
Money market funds - - -
Pooled separate accounts - - -
Participant loans - - -
3,846,337 11,830,731 3,324,378
Contributions receivable 342,815 721,627 198,072
Total assets 4,189,152 12,552,358 3,522,450
Liabilities
Other liabilities 1,633 5,024 1,412
Net assets available for
Plan benefits 4,187,519 12,547,334 3,521,038
See accompanying notes to financial statements.
</TABLE>
2
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Statement of Net Assets Available for Plan Benefits
June 30, 1996
<TABLE>
<CAPTION>
Participant
Loan Aetna
Assets Fund Fund Total
<S> <C> <C> <C>
Investments:
Guaranteed investment contracts - 755,930 22,264,593
Mutual funds - - 34,201,380
Harman International Industries,
Incorporated common stock - - 6,368,068
Money market funds - - 52,238
Pooled separate accounts - 605,378 605,378
Participant loans 72,071 - 72,071
72,071 1,361,308 63,563,728
Contributions receivable - - 3,225,613
Total assets 72,071 1,361,308 66,789,341
Liabilities
Other liabilities - - 26,386
Net assets available for
Plan benefits 72,071 1,361,308 66,762,955
See accompanying notes to financial statements.
</TABLE>
2
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Statement of Net Assets Available for Plan Benefits
June 30, 1995
<TABLE>
<CAPTION>
The Putnam
Fixed Fund for Company
Income Growth and Stock
Assets Fund and Income Fund
<S> <C> <C> <C>
Investments:
Guaranteed investment contracts $21,358,372 - -
Mutual funds - 10,822,746 -
Harman International Industries,
Incorporated common stock - - 5,857,570
Money market funds 1,122,894 - -
Pooled separate accounts - - -
Participant loans - - -
22,481,266 10,822,746 5,857,570
Contributions receivable 949,422 742,658 428,512
Total assets 23,430,688 11,565,404 6,286,082
Liabilities
Other liabilities 14,318 6,416 2,014
Net assets available for
Plan benefits $23,416,370 11,558,988 6,284,068
See accompanying notes to financial statements.
</TABLE>
3
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Statement of Net Assets Available for Plan Benefits
June 30, 1995
<TABLE>
<CAPTION>
George
Putnam Putnam Participant
Fund of Voyager Loan
Assets Boston Fund Fund
<S> <C> <C> <C>
Investments:
Guaranteed investment contracts - - -
Mutual funds 2,202,120 6,426,719 -
Harman International Industries,
Incorporated common stock - - -
Money market funds - - -
Pooled separate accounts - - -
Participant loans - - 153,539
2,202,120 6,426,719 153,539
Contributions receivable 388,542 748,516 -
Total assets 2,590,662 7,175,235 153,539
Liabilities
Other liabilities 1,412 3,907 -
Net assets available for
Plan benefits 2,589,250 7,171,328 153,539
See accompanying notes to financial statements.
</TABLE>
3
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Statement of Net Assets Available for Plan Benefits
June 30, 1995
<TABLE>
<CAPTION>
Aetna
Assets Fund Total
<S> <C> <C>
Investments:
Guaranteed investment contracts 539,076 21,897,448
Mutual funds - 19,451,585
Harman International Industries,
Incorporated common stock - 5,857,570
Money market funds - 1,122,894
Pooled separate accounts 400,543 400,543
Participant loans - 153,539
939,619 48,883,579
Contributions receivable - 3,257,650
Total assets 939,619 52,141,229
Liabilities
Other liabilities - 28,067
Net assets available for
Plan benefits 939,619 52,113,162
See accompanying notes to financial statements.
</TABLE>
3
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
Year ended June 30, 1996
<TABLE>
<CAPTION>
The Putnam
Fixed Fund for Company
Income Growth and Stock
Fund Income Fund
<S> <C> <C> <C>
Employer contributions, net $1,155,799 999,796 667,097
Employee contributions 1,122,407 1,252,115 734,615
Fund transfers, net (1,827,314) 82,910 (2,409,595)
Transfer from related plans - - -
Other additions, net 5,788 14,021 9,584
456,680 2,348,842 (998,299)
Investment income:
Interest and dividends 1,311,957 894,051 287,109
Net appreciation - 2,030,216 1,732,126
Net investment income 1,311,957 2,924,267 2,019,235
Benefits 2,739,006 950,660 463,553
Administrative expenses 48,231 26,251 20,722
2,787,237 976,911 484,275
Net increase (decrease) (1,018,600) 4,296,198 536,661
Net assets at beginning of year 23,416,370 11,558,988 6,284,068
Net assets at end of year $22,397,770 15,855,186 6,820,729
See accompanying notes to financial statements.
</TABLE>
4
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
Year ended June 30, 1996
<TABLE>
<CAPTION>
George
Putnam Putnam New
Fund of Voyager Opportunities
Boston Fund Fund
<S> <C> <C> <C>
Employer contributions, net 531,832 1,103,563 225,185
Employee contributions 602,683 1,339,449 296,360
Fund transfers, net 169,609 1,073,179 2,911,211
Transfer from related plans - - -
Other additions, net 7,972 15,297 543
1,312,096 3,531,488 3,433,299
Investment income:
Interest and dividends 240,668 542,462 -
Net appreciation 286,309 2,058,463 119,137
Net investment income 526,977 2,600,925 119,137
Benefits 233,859 736,480 29,271
Administrative expenses 6,945 19,927 2,127
240,804 756,407 31,398
Net increase (decrease) 1,598,269 5,376,006 3,521,038
Net assets at beginning of year 2,589,250 7,171,328 -
Net assets at end of year 4,187,519 12,547,334 3,521,038
See accompanying notes to financial statements.
</TABLE>
4
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
Year ended June 30, 1996
<TABLE>
<CAPTION>
Participant
Loan Aetna
Fund Fund Total
<S> <C> <C> <C>
Employer contributions, net - 4,588 4,687,860
Employee contributions - 9,070 5,356,699
Fund transfers, net - - -
Transfer from related plans - 711,506 711,506
Other additions, net (87,885) - (34,680)
(87,885) 725,164 10,721,385
Investment income:
Interest and dividends 6,417 22,610 3,305,274
Net appreciation - 87,569 6,313,820
Net investment income 6,417 110,179 9,619,094
Benefits - 413,654 5,566,483
Administrative expenses - - 124,203
- 413,654 5,690,686
Net increase (decrease) (81,468) 421,689 14,649,793
Net assets at beginning of year 153,539 939,619 52,113,162
Net assets at end of year 72,071 1,361,308 66,762,955
See accompanying notes to financial statements.
</TABLE>
4
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
Year ended June 30, 1995
<TABLE>
<CAPTION>
The Putnam
Fixed Fund for Company
Income Growth and Stock
Fund and Income Fund
<S> <C> <C> <C>
Employer contributions, net $1,315,701 1,001,633 466,068
Employee contributions 1,283,687 1,231,144 624,908
Fund transfers, net (853,950) (209,990) (748,420)
Transfers from related plans 2,927,893 - -
Other additions, net 6,088 12,224 8,538
4,679,419 2,035,011 351,094
Investment income:
Interest and dividends 1,258,404 570,199 23,102
Net appreciation - 1,257,811 2,303,657
Net investment income 1,258,404 1,828,010 2,326,759
Benefits 1,744,873 742,702 267,891
Administrative expenses 60,854 27,769 6,826
1,805,727 770,471 274,717
Net increase 4,132,096 3,092,550 2,403,136
Net assets at beginning of year 19,284,274 8,466,438 3,880,932
Net assets at end of year $23,416,370 11,558,988 6,284,068
See accompanying notes to financial statements.
</TABLE>
5
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
Year ended June 30, 1995
<TABLE>
<CAPTION>
George
Putnam Putnam Participant
Fund of Voyager Loan
Boston Fund Fund
<S> <C> <C> <C>
Employer contributions, net 539,755 1,015,676 -
Employee contributions 610,030 1,222,689 -
Fund transfers, net 62,410 1,749,950 -
Transfers from related plans - - 135,257
Other additions, net 7,940 10,243 -
1,220,135 3,998,558 135,257
Investment income:
Interest and dividends 99,286 139,900 4,968
Net appreciation 185,957 869,065 -
Net investment income 285,243 1,008,965 4,968
Benefits 107,662 246,623 -
Administrative expenses 5,262 12,940 -
112,924 259,563 -
Net increase 1,392,454 4,747,960 140,225
Net assets at beginning of year 1,196,796 2,423,368 13,314
Net assets at end of year 2,589,250 7,171,328 153,539
See accompanying notes to financial statements.
</TABLE>
5
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
Year ended June 30, 1995
<TABLE>
<CAPTION>
Aetna
Fund Total
<S> <C> <C>
Employer contributions, net - 4,338,833
Employee contributions - 4,972,458
Fund transfers, net - -
Transfers from related plans 1,017,831 4,080,981
Other additions, net - 45,033
1,017,831 13,437,305
Investment income:
Interest and dividends 16,959 2,112,818
Net appreciation 45,268 4,661,758
Net investment income 62,227 6,774,576
Benefits 140,439 3,250,190
Administrative expenses - 113,651
140,439 3,363,841
Net increase 939,619 16,848,040
Net assets at beginning of year - 35,265,122
Net assets at end of year 939,619 52,113,162
See accompanying notes to financial statements.
</TABLE>
5
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Notes to Financial Statements
June 30, 1996 and 1995
(1) Summary of Significant Accounting Policies
Basis of Presentation
The accompanying financial statements of the Harman International Industries,
Incorporated Retirement Savings Plan (the Plan) have been presented on an
accrual basis and present the net assets available for Plan benefits and
changes in those net assets.
Investments
Investments in guaranteed investment contracts (GIC) are reported at
contract value as these contracts are fully benefit responsive. Contract
value represents contributions plus interest at the contract rate, less
funds used to pay withdrawals and administration expenses.
The Plan participates in mutual funds managed by Putnam Management
Company, Inc. on behalf of participating employee benefit plans. Each
participating employee benefit plan is allocated its proportionate share of the
net assets and the net investment income of the mutual funds. The investments
in mutual funds are reported at fair value which are based on quotations
obtained from national securities exchanges.
The Plan also participates in a stock fund to purchase shares of
Harman International Industries, Incorporated (the Company)
common stock. The fair value of the Company stock is determined
based on quotations obtained from national securities exchanges.
The Plan also holds investments in guaranteed investment contracts and
pooled separate accounts managed by Aetna Life Insurance and Annuity
Co. which arose from transfers from related plans. Participants may no
longer direct that contributions be invested in the Aetna Funds. The assets
have not been merged into the available investment funds of the Plan due to
high surrender charges. The Plan anticipates withdrawals from these Aetna
Funds when the penalty period expires.
The assets of the participant loan fund represent loans to certain
participants (note 2) and are carried at outstanding loan balance,
which approximates market value.
Securities transactions are recorded on the trade-date basis.
Net appreciation or depreciation resulting from revaluation of
investments to fair value is reflected in the statements of changes in
net assets available for Plan benefits and includes investments
bought, sold, as well as held during the year. Dividend income is
recorded on the ex-dividend date. Investments are principally
managed by the Plan's trustee, Putnam Fiduciary Trust Company.
There are 3,061 employees participating in the investments managed
by Putnam Fiduciary Trust Company. There are 149 employees
participating in the investments managed by Aetna Life Insurance
and Annuity Co.
Administrative Expenses
Administrative expenses of the Plan are principally paid by the
Plan.
6
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Notes to Financial Statements, Continued
Use of Estimates
Management of the Company has made a number of estimates and
assumptions relating to the reporting of assets and liabilities and
the disclosure of contingent assets and liabilities to prepare these
financial statements in conformity with generally accepted accounting
principles. Actual results could differ from these estimates.
(2) Plan Description
The Plan agreement amends and restates five preexisting defined
contribution and savings plan agreements for plans which were
merged into the Plan and extends coverage to all eligible nonunion
domestic employees of Harman International Industries, Incorporated.
Effective July 1, 1995, the Plan also extends coverage to hourly collective
bargaining unit employees of Harman Motive, Inc. The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
The Plan is a defined contribution, savings and profit sharing plan
sponsored by the Company. The Plan covers all eligible employees,
as defined by the Plan, provided they have completed six months of
consecutive service, have worked 500 hours and are at least 21 years
of age. Plan participants should refer to the Plan agreement for more
complete information.
Effective January 1, 1995, the AKG Acoustics, Inc. Salary Savings
Plan and the Studer Revox America, Inc. Employee Savings and Profit
Sharing Plan Trust were merged into the Plan and the net assets of
the related plans were transferred to the Plan.
Contributions
Participants in the Plan may contribute on a tax-deferred basis from
1% to 12% of their compensation, as defined by the Plan.
Participants may change their deferral percentage as of the first
payroll period following the quarterly valuation date. The
Company has made annual basic contributions equal to 2% of the
compensation paid to all eligible participants active at the end of
the Plan year and a matching contribution equal to 50% of the
eligible participant's tax-deferred contribution percentage for each
payroll period up to a maximum election of 6% per payroll period. In
addition, the Company may make profit sharing contributions to the
Plan, in an amount which the Company's Board of Directors, acting in
its sole discretion, determines to be a proper contribution. Company
profit sharing contributions are limited to 15% of the participants'
compensation, less the participants' tax-deferred contributions, the
Company basic contribution and the Company matching contribution.
Total Company and participant contributions may not exceed 15% of
total participants' taxable compensation. Total annual additions to
a participant's account, exclusive of adjustments to the fair market
value of the participants' fund account, may not exceed the lesser of
$30,000 or 25% of the participant's taxable compensation.
Vesting
Participants are 100% vested in their salary deferral, employer's
basic contribution and rollover contribution accounts, and become
vested in profit sharing and matching contributions at the rate of 25%
per year after the completion of three years of service, or 100% after
reaching age 65, death or disability.
7
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Notes to Financial Statements, Continued
Participant Account Balances
Separate accounts are maintained for each participant's salary
deferral, rollover, employer profit sharing, basic and matching
contribution balances. Earnings of the Plan are allocated to the
participant account balances by investment fund on a daily basis
according to the number of shares in the participant account balances.
Participants elect to invest their contributions in one of the following
six funds: Fixed Income Fund, the Putnam Fund for Growth and
Income, Company Stock Fund, the George Putnam Fund of Boston, the
New Opportunities Fund or the Putnam Voyager Fund. Company
profit sharing and basic contributions are allocated based on
participant compensation. Company matching contributions are
allocated based upon each participant's tax-deferred contribution
percentage.
Participant Loans
The Plan does not allow for any participant loans. The loans
discussed in note 1 arose from the mergers of related plans and no
further loans will be granted after their repayment is completed.
Benefits
Upon separation from service, retirement at age 65, disability
retirement or death, participants or their beneficiaries are entitled
to receive their vested balances in a lump sum distribution. However,
participants from prior merged plans, whose plans allowed
distributions of plan benefits to be made in optional forms, may elect
optional forms of payment of the benefit balances that existed prior
to the merger. Contributions made subsequent to the merger may only
be distributed in a lump sum payment.
Forfeitures
Any amount forfeited by any employee terminating from the Plan
before he/she is fully vested remains in the Plan until the end of the
Plan quarter. Amounts forfeited by Plan participants are applied to
reduce the employer contributions. Forfeitures were $225,819 and
$282,272 for the years ended June 30, 1996 and 1995, respectively.
(3) Investments
Investments in any single entity which represent 5% or more of the
fair value of net assets available for benefits at June 30, 1996 and 1995
are as follows:
<TABLE>
<CAPTION>
Description Cost Fair value
<S> <C> <C>
1996:
The Putnam Fund for Growth and Income $12,617,831 15,199,934
Putnam Voyager Fund 9,407,500 11,830,731
George Putnam Fund of Boston 3,466,447 3,846,337
Putnam Stable Value Fund, in contracts
with various companies, maturity dates
ranging from March 28, 1996, through
May 1, 2001 and interest rates ranging
from 4.4% to 8.4% 20,507,901 20,507,901
Harman International Industries,
Incorporated common stock 3,634,556 6,368,068
</TABLE>
8
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Notes to Financial Statements, Continued
<TABLE>
<CAPTION>
Description Cost Fair value
<S> <C> <C>
1995:
The Putnam Fund for Growth and Income $9,894,320 10,822,746
Putnam Voyager Fund 5,721,964 6,426,719
Putnam Stable Value Fund, in contracts
with various companies, maturity dates
ranging from March 28, 1996 through
March 1, 2000 and interest rates ranging
from 4.4% to 8.4% 18,853,551 18,853,551
Harman International Industries,
Incorporated common stock 3,249,694 5,857,570
(4) Federal Income Taxes
In August 1996, the Internal Revenue Service issued a determination
letter stating that the Plan constitutes a qualified Plan under
Sections 401(a) and 401(k) of the Internal Revenue Code and that the
Trust is exempt from income tax under Section 501(a) of the Internal
Revenue Code.
(5) Plan Termination
Although it has not expressed any intent to do so, the Company has
the right to terminate the Plan subject to the provision of the
Employee Retirement Income Security Act of 1974. Upon Plan
termination, all participant accounts become 100% vested.
(6) Commitments and Reconciliation to Form 5500
Included in net assets available for Plan benefits in the accompanying
financial statements is $1,077,559 and $690,477 at June 30, 1996 and
1995, respectively, of amounts related to Plan participants and
participants who have terminated their service with the Company
and requested a lump sum distribution of their account balance. These
amounts are shown as liabilities on the Form 5500, Annual
Return/Report of Employee Benefit Plans, which is filed with the
Internal Revenue Service.
(7) Acquisitions
In September 1993, the Company acquired a 76% interest in AKG.
AKG domestic employees became eligible to participate in the Plan
upon acquisition of the majority interest by the Company. The
Company subsequently acquired the remaining 24% of AKG in July
1994. Effective January 1994, the Company acquired Studer Revox
AG. Effective July 1, 1994, the Studer Revox AG domestic employees
became eligible to participate in the Plan. The Company merged the
plans of AKG and Studer Revox AG with the Plan in January 1995.
Effective September 1994, the Company acquired New Media Ware.
New Media Ware employees became eligible to participate in the
plan effective April 1, 1995. In February 1995, Becker of North
America was acquired. Effective July 1, 1995, Becker employees were
eligible to participate in the Plan.
9
<PAGE>
Harman International Industries, Incorporated
Retirement Savings Plan
Notes to Financial Statements, Continued
In August 1995, the Company exercised its option to purchase the
remaining 80% of Madrigal, increasing its ownership to 100%.
Effective January 1, 1996, Madrigal employees became eligible to
participate in the Plan. The Company merged the related Madrigal
plan assets with the Plan on December 31, 1995.
10
<PAGE>
Schedule 1
Harman International Industries, Incorporated
Retirement Savings Plan
Line 27a - Schedule of Investments Held at End of Plan Year
June 30, 1996
</TABLE>
<TABLE>
<CAPTION>
Description of investment,
Identity of issuer, including maturity date, rate of Current
borrower or similar party interest, par or maturity value Cost value
<S> <C> <C> <C>
Putnam Fiduciary $1,000,762 in contract with
Trust Company Metropolitan Life Insurance Co.
GIC Fund and Unum Life Insurance Co. (2)
maturing on December 31, 1998
and December 31, 1997 and
December 31, 1998 with interest
of 6.2% , 8.0% and 6.5%,
respectively $1,000,762 1,000,762
* Putnam Stable Value $20,507,901 in contracts with
Fund various companies, maturity
dates ranging from March 28,
1996 through May 1, 2001 and
interest rates ranging from 4.4%
to 8.4% 20,507,901 20,507,901
* George Putnam
Fund of Boston 238,311 units at $16.14 per unit 3,466,447 3,846,337
* Putnam Voyager
Fund 693,885 units at $17.05 per unit 9,407,500 11,830,731
* The Putnam Fund for
Growth and Income 870,557 units at $17.46 per unit 12,617,831 15,199,934
*Harman International
Industries, Incorporated
common stock 129,301 shares at $49.25 per share 3,634,556 6,368,068
* Putnam Money Market
Fund 52,238 units at $1.00 per unit 52,238 52,238
* New Opportunities
Fund 77,329 units at $42.99 per unit 3,208,499 3,324,378
* Participant loans Interest rates ranging
from 2.3% to 11% (34) - 72,071
Aetna Fixed Account Guaranteed investment contract 357,272 357,272
Aetna Variable Fund 1,914 units at $123.43 per unit 164,723 236,249
Aetna Variable Encore
Fund 1,788 units at $36.78 per unit 61,582 65,758
Aetna Income Shares 5 units at $46.60 per unit 203 233
Aetna Portfolio
Securities 211 units at $13.25 per unit 2,145 2,795
Aetna Investment
Advisers Fund 2 units at $18.50 per unit 28 37
</TABLE>
<PAGE>
Schedule 1-2
Harman International Industries, Incorporated
Retirement Savings Plan
Line 27a - Schedule of Investments Held at End of Plan Year
June 30, 1996
<TABLE>
<CAPTION>
Description of investment,
Identity of issuer, including maturity date, rate of Current
borrower or similar party interest, par or maturity value Cost value
<S> <C> <C> <C>
Aetna Variable Fund 9,996 units at $14.30 per unit 130,157 142,934
Aetna Variable Encore
Fund 1,476 units at $11.02 per unit 15,955 16,265
Aetna Income Shares 5,774 units at $10.96 per unit 64,313 63,292
Aetna Investment
Advisers Fund 3,391 units at $13.30 per unit 42,773 45,099
Aetna Guaranteed
Accumulated
Account-ST Guaranteed investment contract 10,904 10,904
Aetna Guaranteed
Accumulated
Account-LT Guaranteed investment contract 359 359
Aetna Fixed Account 33,048 units at $11.72 per unit 376,772 387,394
Scudder International
Portfolio 64 units at $12.27 per unit 723 785
TCI Growth 524 units at $13.26 per unit 6,905 6,949
Alger American Small
CAP Portfolio 581 units at $17.27 per unit 9,363 10,031
Fidelity VIP Growth 993 units at $15.06 per unit 13,598 14,952
$55,153,509 63,563,728
</TABLE>
* Party-in-interest investment.
See accompanying independent auditors' report.
<PAGE>
Schedule 2
Harman International Industries, Incorporated
Retirement Savings Plan
Line 27d - Schedule of Reportable Transactions
Year ended June 30, 1996
<TABLE>
<CAPTION>
Description of Purchase Selling
Description of asset transactions price price
<S> <C> <C> <C>
* The Putnam Fund for Growth
Income Purchases $5,072,695 -
Sales - 2,349,185
* Putnam Voyager Fund Purchases 5,869,233 -
Sales - 2,183,698
* Putnam GIC Funds Purchases 12,377,148 -
Sales - 13,297,514
* Investment in Company Stock Purchases 4,386,733 -
Sales - 4,001,870
* New Opportunities Fund Purchases 3,260,944 -
Sales - 52,445
</TABLE>
* Party-in-Interest investment.
See accompanying independent auditors' report.
<PAGE>
Schedule 2
Harman International Industries, Incorporated
Retirement Savings Plan
Line 27d - Schedule of Reportable Transactions
Year ended June 30, 1996
<TABLE>
<CAPTION>
Current
value of
asset on
Description of Cost of transaction
Description of asset transactions asset date
<S> <C> <C> <C>
* The Putnam Fund for Growth
Income Purchases 5,072,695 5,072,695
Sales 1,972,646 2,349,185
* Putnam Voyager Fund Purchases 5,869,233 5,869,233
Sales 1,843,712 2,183,698
* Putnam GIC Funds Purchases 12,377,148 12,377,148
Sales 13,297,514 13,297,514
* Investment in Company Stock Purchases 4,386,733 4,386,733
Sales 2,395,380 4,001,870
* New Opportunities Fund Purchases 3,260,944 3,260,944
Sales 49,188 52,445
</TABLE>
* Party-in-Interest investment.
See accompanying independent auditors' report.
<PAGE>
Schedule 2
Harman International Industries, Incorporated
Retirement Savings Plan
Line 27d - Schedule of Reportable Transactions
Year ended June 30, 1996
<TABLE>
<CAPTION>
Description of
Description of asset transactions Net gain
<S> <C> <C>
* The Putnam Fund for Growth
Income Purchases -
Sales 376,539
* Putnam Voyager Fund Purchases -
Sales 339,986
* Putnam GIC Funds Purchases -
Sales -
* Investment in Company Stock Purchases -
Sales 1,606,490
* New Opportunities Fund Purchases -
Sales 3,257
</TABLE>
* Party-in-Interest investment.
See accompanying independent auditors' report.
<PAGE>
Schedule 3
Harman International Industries, Incorporated
Retirement Savings Plan
Line 27b - Schedule of Loans in Default
Year ended June 30, 1996
<TABLE>
<CAPTION>
Original Amount received during
amount of reporting year
Identity of Obligor loan Principal Interest
<S> <C> <C> <C>
Gary Weisberg $2,200 - -
Joseph Merren 2,100 - -
Darien Huey 2,000 - -
Brooks Finley 3,300 132 35
Participant loans $9,600 132 35
</TABLE>
* Loans are collateralized by participant balances. As borrowers have all
terminated employment, amounts will be deemed distributed if they are not
repaid.
See accompanying independent auditors' report.
<PAGE>
Schedule 3
Harman International Industries, Incorporated
Retirement Savings Plan
Line 27b - Schedule of Loans in Default
Year ended June 30, 1996
<TABLE>
<CAPTION>
Date of
Unpaid issuance
balance at maturity Amount overdue
Identity of Obligor end of year interest rate Principal Interest
<S> <C> <C> <C> <C>
Gary Weisberg 1,556 February 1993 1,556 191
January 1998
7%
Joseph Merren 1,186 December 1993 1,186 70
January 1997
7%
Darien Huey 1,104 February 1994 1,104 64
January 1997
7%
Brooks Finley 2,273 December 1993 2,273 66
December 1998
7%
Participant loans 6,119 6,119 391
</TABLE>
* Loans are collateralized by participant balances. As borrowers have all
terminated employment, amounts will be deemed distributed if they are not
repaid.
See accompanying independent auditors' report.
