Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Aug. 17, 2015 | Dec. 31, 2014 | |
Document Information | |||
Entity Registrant Name | KIMBALL INTERNATIONAL INC | ||
Entity Central Index Key | 55,772 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float - Class B | $ 340,000,000 | ||
Class A Common Stock | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 336,657 | ||
Class B Common Stock | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 37,219,426 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 34,661 | $ 136,624 |
Receivables, net of allowances of $1,522 and $2,345, respectively | 55,710 | 175,695 |
Inventories | 37,634 | 140,475 |
Prepaid expenses and other current assets | 23,548 | 46,998 |
Assets held for sale | 0 | 0 |
Total current assets | 151,553 | 499,792 |
Property and Equipment, net of accumulated depreciation of $197,500 and $358,493, respectively | 97,163 | 188,833 |
Goodwill | 0 | 2,564 |
Other Intangible Assets, net of accumulated amortization of $35,447 and $61,912, respectively | 2,669 | 4,191 |
Other Assets | 14,744 | 26,766 |
Total Assets | 266,129 | 722,146 |
Current Liabilities: | ||
Current maturities of long-term debt | 27 | 25 |
Accounts payable | 41,170 | 160,306 |
Customer deposits | 18,618 | 14,130 |
Dividends payable | 1,921 | 1,883 |
Accrued expenses | 45,425 | 77,256 |
Total current liabilities | 107,161 | 253,600 |
Other Liabilities: | ||
Long-term debt, less current maturities | 241 | 268 |
Other | 17,222 | 26,745 |
Total other liabilities | 17,463 | 27,013 |
Common stock-par value $0.05 per share: | ||
Additional paid-in capital | 3,445 | 6,269 |
Retained earnings | 194,372 | 487,040 |
Accumulated other comprehensive income | 1,229 | 2,440 |
Less: Treasury stock, at cost: | ||
Total Share Owners' Equity | 141,505 | 441,533 |
Total Liabilities and Share Owners' Equity | 266,129 | 722,146 |
Class A Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | 19 | 560 |
Less: Treasury stock, at cost: | ||
Treasury Stock | 0 | (42,198) |
Class B Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | 2,132 | 1,591 |
Less: Treasury stock, at cost: | ||
Treasury Stock | $ (59,692) | $ (14,169) |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parentheticals - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
ASSETS | ||
Allowance for Doubtful Accounts, Premiums and Other Receivables | $ 1,522 | $ 2,345 |
Property and Equipment Accumulated Depreciation | 197,500 | 358,493 |
Other Intangible Assets Accumulated Amortization | $ 35,447 | $ 61,912 |
Class A Common Stock | ||
Share Owners' Equity | ||
Common Stock, Par or Stated Value Per Share | $ 0.05 | $ 0.05 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 386,000 | 11,212,000 |
Treasury Stock, Shares | 0 | 3,505,000 |
Class B Common Stock | ||
Share Owners' Equity | ||
Common Stock, Par or Stated Value Per Share | $ 0.05 | $ 0.05 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 42,639,000 | 31,813,000 |
Treasury Stock, Shares | 5,111,000 | 1,082,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net Sales | $ 600,868 | $ 543,817 | $ 500,005 |
Cost of Sales | 412,003 | 377,092 | 359,629 |
Gross Profit | 188,865 | 166,725 | 140,376 |
Selling and Administrative Expenses | 166,253 | 164,781 | 150,986 |
Restructuring Expense | 5,290 | 0 | 0 |
Operating Income (Loss) | 17,322 | 1,944 | (10,610) |
Other Income (Expense): | |||
Interest income | 213 | 179 | 308 |
Interest expense | (24) | (26) | (26) |
Non-operating income | 709 | 2,856 | 2,019 |
Non-operating expense | (541) | (741) | (2,687) |
Other income (expense), net | 357 | 2,268 | (386) |
Income (Loss) from Continuing Operations Before Taxes on Income | 17,679 | 4,212 | (10,996) |
Provision (Benefit) for Income Taxes | 6,536 | 793 | (4,380) |
Income (Loss) from Continuing Operations | 11,143 | 3,419 | (6,616) |
Income from Discontinued Operations, Net of Tax | 9,157 | 30,042 | 26,495 |
Net Income | $ 20,300 | $ 33,461 | $ 19,879 |
Basic | |||
Average Number of Shares Outstanding, Basic | 38,645 | 38,404 | 38,063 |
Diluted | |||
Average Number of Shares Outstanding, Diluted | 38,971 | 39,037 | 38,063 |
Class A Common Stock | |||
Earnings Per Share of Common Stock: | |||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.25 | $ 0.07 | $ (0.20) |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.25 | 0.07 | (0.20) |
Basic Earnings Per Share: | |||
Basic Earnings Per Share: | 0.49 | 0.85 | 0.50 |
Diluted Earnings Per Share: | |||
Diluted Earnings Per Share: | $ 0.49 | $ 0.84 | $ 0.50 |
Basic | |||
Average Number of Shares Outstanding, Basic | 3,231 | 8,026 | 8,584 |
Diluted | |||
Average Number of Shares Outstanding, Diluted | 3,231 | 8,652 | 8,584 |
Class B Common Stock | |||
Earnings Per Share of Common Stock: | |||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.29 | $ 0.09 | $ (0.17) |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.29 | 0.09 | (0.17) |
Basic Earnings Per Share: | |||
Basic Earnings Per Share: | 0.53 | 0.88 | 0.53 |
Diluted Earnings Per Share: | |||
Diluted Earnings Per Share: | $ 0.52 | $ 0.86 | $ 0.53 |
Basic | |||
Average Number of Shares Outstanding, Basic | 35,414 | 30,378 | 29,479 |
Diluted | |||
Average Number of Shares Outstanding, Diluted | 35,740 | 30,385 | 29,479 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net income | $ 20,300 | $ 33,461 | $ 19,879 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, Pre-tax | (6,070) | 4,358 | 1,952 |
Foreign currency translation adjustments, Tax | 0 | (304) | (120) |
Foreign currency translation adjustments, Net of Tax | (6,070) | 4,054 | 1,832 |
Postemployment severance actuarial change, Pre-tax | 895 | 899 | 1 |
Postemployment severance actuarial change, Tax | (356) | (360) | 0 |
Postemployment severance actuarial change, Net of Tax | 539 | 539 | 1 |
Derivative gain (loss), Pre-tax | 2,513 | 73 | 1,206 |
Derivative gain (loss), Tax | (416) | (86) | (380) |
Derivative gain (loss), Net of Tax | 2,097 | (13) | 826 |
Reclassification to (earnings) loss: | |||
Derivatives, Reclassification to (earnings) loss, Pre-tax | (1,484) | 1,187 | (2,136) |
Derivatives, Reclassification to (earnings) loss, Tax | 291 | (226) | 583 |
Derivatives, Reclassification to (earnings) loss, Net of Tax | (1,193) | 961 | (1,553) |
Amortization of prior service cost, Pre-tax | 185 | 286 | 286 |
Amortization of prior service cost, Tax | (73) | (114) | (114) |
Amortization of prior service cost, Net of Tax | 112 | 172 | 172 |
Amortization of actuarial change, Pre-tax | (292) | 338 | 344 |
Amortization of actuarial change, Tax | 117 | (134) | (136) |
Amortization of actuarial change, Net of Tax | (175) | 204 | 208 |
Other comprehensive income (loss), Pre-tax | (4,253) | 7,141 | 1,653 |
Other comprehensive income (loss), Tax | (437) | (1,224) | (167) |
Other comprehensive income (loss), Net of Tax | (4,690) | 5,917 | 1,486 |
Total comprehensive income | $ 15,610 | $ 39,378 | $ 21,365 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Cash Flows From Operating Activities: | |||
Net income | $ 20,300 | $ 33,461 | $ 19,879 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 20,114 | 31,885 | 30,758 |
Loss (Gain) on sales of assets | 912 | (1,484) | (181) |
Restructuring and asset impairment charges | 953 | 1,509 | 188 |
Deferred income tax and other deferred charges | (537) | (8,893) | (962) |
Stock-based compensation | 6,414 | 7,018 | 5,023 |
Excess tax benefits from stock-based compensation | (1,157) | (43) | (567) |
Other, net | 38 | 1,007 | 3,362 |
Change in operating assets and liabilities: | |||
Receivables | (15,266) | (14,635) | (19,549) |
Inventories | (21,934) | (14,894) | (5,844) |
Prepaid expenses and other current assets | (4,870) | (256) | 6,207 |
Accounts payable and customer deposits | 10,120 | 15,738 | 17,693 |
Accrued expenses | (1,244) | 19,458 | 7,854 |
Net cash provided by operating activities | 13,843 | 69,871 | 63,861 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (31,708) | (32,897) | (27,555) |
Proceeds from sales of assets | 2,524 | 4,761 | 786 |
Purchases of capitalized software | (1,407) | (756) | (1,200) |
Other, net | (66) | 1,346 | (62) |
Net cash used for investing activities | (30,657) | (27,546) | (28,031) |
Cash Flows From Financing Activities: | |||
Transfer of cash and cash equivalents to Kimball Electronics, Inc. | (63,006) | 0 | 0 |
Net change in capital leases and long-term debt | (25) | (24) | 30 |
Dividends paid to Share Owners | (7,660) | (7,507) | (7,430) |
Repurchases of Common Stock | (10,342) | 0 | 0 |
Excess tax benefits from stock-based compensation | 1,157 | 43 | 567 |
Repurchase of employee shares for tax withholding | (4,019) | (1,953) | (875) |
Net cash used for financing activities | (83,895) | (9,441) | (7,708) |
Effect of Exchange Rate Change on Cash and Cash Equivalents | (1,254) | 140 | 281 |
Net (Decrease) Increase in Cash and Cash Equivalents | (101,963) | 33,024 | 28,403 |
Cash and Cash Equivalents at Beginning of Year | 136,624 | 103,600 | 75,197 |
Cash and Cash Equivalents at End of Year | $ 34,661 | $ 136,624 | $ 103,600 |
Consolidated Statements of Shar
Consolidated Statements of Share Owners' Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsClass A Common Stock | Retained EarningsClass B Common Stock | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Share Owner's Equity at Jun. 30, 2012 | $ 386,228 | $ 718 | $ 1,433 | $ 635 | $ 452,093 | $ (4,963) | $ (63,688) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 19,879 | 19,879 | |||||||||
Other comprehensive income (loss), Net of Tax | 1,486 | 1,486 | |||||||||
Issuance of non-restricted stock (3,000 shares in 2013, 20,000 shares in 2014, 29,000 shares in 2015) | (31) | (62) | 31 | ||||||||
Conversion of Class A to Class B common stock (2,334,000 shares in 2013, 813,000 shares in 2014, 10,826,000 shares in 2015) | 0 | (117) | 117 | ||||||||
Compensation expense related to stock incentive plans | 5,023 | 5,023 | |||||||||
Performance share issuance (177,000 shares in 2013, 337,000 shares in 2014, 407,000 shares in 2015) | (629) | (1,148) | (1,565) | 2,084 | |||||||
Dividends declared: | |||||||||||
Dividends declared (Class A $0.18 per share in 2013 and 2014, $0.195 in 2015, Class B $0.20 per share) | $ (1,495) | $ (5,955) | $ (1,495) | $ (5,955) | |||||||
Share Owner's Equity at Jun. 30, 2013 | 404,506 | 601 | 1,550 | 4,448 | 462,957 | (3,477) | (61,573) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 33,461 | 33,461 | |||||||||
Other comprehensive income (loss), Net of Tax | 5,917 | 5,917 | |||||||||
Issuance of non-restricted stock (3,000 shares in 2013, 20,000 shares in 2014, 29,000 shares in 2015) | 57 | (196) | 253 | ||||||||
Conversion of Class A to Class B common stock (2,334,000 shares in 2013, 813,000 shares in 2014, 10,826,000 shares in 2015) | 0 | (41) | 41 | ||||||||
Compensation expense related to stock incentive plans | 7,018 | 7,018 | |||||||||
Performance share issuance (177,000 shares in 2013, 337,000 shares in 2014, 407,000 shares in 2015) | (1,899) | (5,001) | (1,851) | 4,953 | |||||||
Dividends declared: | |||||||||||
Dividends declared (Class A $0.18 per share in 2013 and 2014, $0.195 in 2015, Class B $0.20 per share) | (1,437) | (6,090) | (1,437) | (6,090) | |||||||
Share Owner's Equity at Jun. 30, 2014 | 441,533 | 560 | 1,591 | 6,269 | 487,040 | 2,440 | (56,367) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Distribution to Kimball Electronics - Share Owners Equity | (300,244) | (508) | (303,215) | 3,479 | |||||||
Net income | 20,300 | 20,300 | |||||||||
Other comprehensive income (loss), Net of Tax | (4,690) | (4,690) | |||||||||
Issuance of non-restricted stock (3,000 shares in 2013, 20,000 shares in 2014, 29,000 shares in 2015) | (169) | (605) | 436 | ||||||||
Conversion of Class A to Class B common stock (2,334,000 shares in 2013, 813,000 shares in 2014, 10,826,000 shares in 2015) | 0 | (541) | 541 | ||||||||
Compensation expense related to stock incentive plans | 6,414 | 6,414 | |||||||||
Performance share issuance (177,000 shares in 2013, 337,000 shares in 2014, 407,000 shares in 2015) | (2,498) | (7,452) | (2,048) | 7,002 | |||||||
Vesting of restricted share units (31,000 shares) | (115) | (673) | 558 | ||||||||
Repurchase of Common Stock (991,000 shares) | (11,321) | (11,321) | |||||||||
Dividends declared: | |||||||||||
Dividends declared (Class A $0.18 per share in 2013 and 2014, $0.195 in 2015, Class B $0.20 per share) | $ (536) | $ (7,169) | $ (536) | $ (7,169) | |||||||
Share Owner's Equity at Jun. 30, 2015 | $ 141,505 | $ 19 | $ 2,132 | $ 3,445 | $ 194,372 | $ 1,229 | $ (59,692) |
Consolidated Statements of Sha8
Consolidated Statements of Share Owners' Equity Parentheticals - $ / shares | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Issuance of non-restricted stock, Shares | 29,000 | 20,000 | 3,000 |
Conversion of Class A to Class B common stock | 10,826,000 | 813,000 | 2,334,000 |
Vesting of Restricted Share Units, Shares | 31,000 | 0 | 0 |
Performance Share Issuance, Shares | 407,000 | 337,000 | 177,000 |
Treasury Stock, Shares, Acquired | 991,000 | ||
Class A Common Stock | |||
Common Stock, Dividends, Per Share, Declared | $ 0.195 | $ 0.18 | $ 0.18 |
Class B Common Stock | |||
Common Stock, Dividends, Per Share, Declared | $ 0.20 | $ 0.20 | $ 0.20 |
Note 1. Summary of Significant
Note 1. Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation: The consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated in the consolidation. Operating Segments: We sell a portfolio of furniture products and services under three brands: National, Kimball Office, and Kimball Hospitality. We consider each of the three brands to be operating segments which aggregate into one reportable segment. The brands operate within six market verticals, selling to similar types of customers. Our products and services are similar in nature and utilize similar production and distribution processes. Our three brands share similar long-term economic characteristics. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (āUS GAAPā) requires management to make estimates and assumptions that affect the reported amounts included in the consolidated financial statements and related note disclosures. While efforts are made to assure estimates used are reasonably accurate based on management's knowledge of current events, actual results could differ from those estimates. Revenue Recognition: We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Delivery is not considered to have occurred until the title and the risk of loss passes to the customer according to the terms of the contract. Title and risk of loss are transferred upon shipment to or receipt at our customersā locations, or in limited circumstances, as determined by other specific sales terms of the transaction. Shipping and handling fees billed to customers are recorded as sales while the related shipping and handling costs are included in cost of goods sold. We recognize sales net of applicable sales tax. Based on estimated product returns and price concessions, a reserve for returns and allowances is recorded at the time of the sale, resulting in a reduction of revenue. Cash and Cash Equivalents: Cash equivalents consist primarily of highly liquid investments with original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist of bank accounts and money market funds. Bank accounts are stated at cost, which approximates fair value, and money market funds are stated at fair value. Notes Receivable and Trade Accounts Receivable: Kimball's notes receivable and trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. We determine on a case-by-case basis the cessation of accruing interest, the resumption of accruing interest, the method of recording payments received on nonaccrual receivables, and the delinquency status for our limited number of notes receivable. Our policy for estimating the allowance for credit losses on trade accounts receivable and notes receivable includes analysis of such items as aging, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to determine the final allowance for credit losses on the trade accounts receivable and notes receivable. Trade accounts receivable and notes receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Our limited amount of notes receivable allows management to monitor the risks, credit quality indicators, collectability, and probability of impairment on an individual basis. Adjustments to the allowance for credit losses are recorded in selling and administrative expenses. Customary terms require payment within 30 days , with terms beyond 30 days being considered extended. Inventories: Inventories are stated at the lower of cost or market value. Cost includes material, labor, and applicable manufacturing overhead. Costs associated with underutilization of capacity are expensed as incurred. The last-in, first-out (āLIFOā) method was used for approximately 91% of consolidated inventories at June 30, 2015 . As of June 30, 2014 , prior to the spin-off of Kimball Electronics, inventories valued using the lower of LIFO cost or market value were approximately 16% of consolidated inventories. The remaining inventories were valued using the first-in, first-out (āFIFOā) method. Inventories are adjusted for excess and obsolete inventory. Evaluation of excess inventory includes such factors as anticipated usage, inventory turnover, inventory levels, and product demand levels. Factors considered when evaluating obsolescence include the age of on-hand inventory and reduction in value due to damage, use as showroom samples, design changes, or cessation of product lines. Property, Equipment, and Depreciation: Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful life of the assets using the straight-line method for financial reporting purposes. Leasehold improvements are amortized on a straight-line basis over the shorter of the useful life of the improvement or the term of the lease. Major maintenance activities and improvements are capitalized; other maintenance, repairs, and minor renewals are expensed. Depreciation and expenses for maintenance, repairs and minor renewals are included in both the Cost of Sales line and the Selling and Administrative Expense line of the Consolidated Statements of Income. Impairment of Long-Lived Assets: We perform reviews for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment is recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. When an impairment is identified, the carrying amount of the asset is reduced to its estimated fair value. Assets to be disposed of are recorded at the lower of net book value or fair market value less cost to sell at the date management commits to a plan of disposal. Other Intangible Assets: Other Intangible Assets reported on the Consolidated Balance Sheets consist of capitalized software, product rights, and customer relationships. Intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. A summary of other intangible assets subject to amortization is as follows: June 30, 2015 June 30, 2014 (Amounts in Thousands) Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Capitalized Software $ 37,744 $ 35,081 $ 2,663 $ 64,564 $ 60,637 $ 3,927 Product Rights 372 366 6 372 294 78 Customer Relationships ā ā ā 1,167 981 186 Other Intangible Assets $ 38,116 $ 35,447 $ 2,669 $ 66,103 $ 61,912 $ 4,191 The decline in capitalized software and customer relationships is primarily the result of the spin-off of our EMS segment. During fiscal years 2015 , 2014 , and 2013 , amortization expense of other intangible assets from continuing operations was, in thousands, $898 , $992 , and $1,039 , respectively. Amortization expense in future periods is expected to be, in thousands, $720 , $653 , $454 , $334 , and $304 in the five years ending June 30, 2020 , and $204 thereafter. The estimated useful life of internal-use software ranges from 3 to 10 years . Internal-use software is stated at cost less accumulated amortization and is amortized using the straight-line method. During the software application development stage, capitalized costs include external consulting costs, cost of software licenses, and internal payroll and payroll-related costs for employees who are directly associated with a software project. Upgrades and enhancements are capitalized if they result in added functionality which enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion, and business process reengineering costs are expensed in the period in which they are incurred. Product rights to produce and sell certain products are amortized on a straight-line basis over their estimated useful lives, and capitalized customer relationships were amortized on estimated attrition rate of customers. We have no intangible assets with indefinite useful lives which are not subject to amortization. Research and Development: The costs of research and development are expensed as incurred. Research and development costs from continuing operations were approximately, in millions, $7 , $7 , and $6 in fiscal years 2015 , 2014 , and 2013 , respectively. Advertising: Advertising costs are expensed as incurred. Advertising costs from continuing operations, included in selling and administrative expenses were, in millions, $4.0 , $3.7 , and $3.2 , in fiscal years 2015 , 2014 , and 2013 , respectively. Insurance and Self-insurance: We are self-insured up to certain limits for auto and general liability, workers' compensation, and certain employee health benefits including medical, short-term disability, and dental, with the related liabilities included in the accompanying financial statements. Our policy is to estimate reserves based upon a number of factors including known claims, estimated incurred but not reported claims, and other analyses, which are based on historical information along with certain assumptions about future events. Insurance benefits are not provided to retired employees. Income Taxes: Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. These assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse. We evaluate the recoverability of deferred tax assets each quarter by assessing the likelihood of future taxable income and available tax planning strategies that could be implemented to realize our deferred tax assets. If recovery is not likely, we provide a valuation allowance based on our best estimate of future taxable income in the various taxing jurisdictions and the amount of deferred taxes ultimately realizable. Future events could change management's assessment. We operate within multiple taxing jurisdictions and are subject to tax audits in these jurisdictions. These audits can involve complex uncertain tax positions, which may require an extended period of time to resolve. A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. We maintain a liability for uncertain income tax and other tax positions, including accrued interest and penalties on those positions. As tax positions are effectively settled, the tax liability is adjusted accordingly. We recognize interest and penalties related to unrecognized tax benefits in the Provision (Benefit) for Income Taxes line of the Consolidated Statements of Income. In September 2013, the United States Treasury Department and the Internal Revenue Service (āIRSā) issued final regulations effective for our first quarter of fiscal year 2015, that provide guidance on a number of matters with regard to tangible property, including whether expenditures qualify as deductible repairs, the treatment of materials and supplies, capitalization of tangible property, dispositions of property, and related elections. We have implemented the regulations as issued and there was an immaterial effect on our consolidated financial statements. Concentrations of Credit Risk: Certain business and credit risks are inherent in our business. Additionally, we currently have a note receivable related to the sale of an Indiana facility and other miscellaneous notes receivable. At June 30, 2015 and 2014 , $1.8 million and $1.6 million , respectively, were outstanding under the notes receivables. The credit risk associated with receivables is disclosed in Note 20 - Credit Quality and Allowance for Credit Losses of Notes Receivable of Notes to Consolidated Financial Statements. Off-Balance Sheet Risk: Our off-balance sheet arrangements are limited to standby letters of credit and operating leases entered into in the normal course of business as described in Note 5 - Commitments and Contingent Liabilities of Notes to Consolidated Financial Statements. Non-operating Income and Expense: Non-operating income and expense include the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (āSERPā) investments, foreign currency rate movements, investment gain or loss, non-production rent income, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain or loss on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. Foreign Currency Translation: Kimball's continuing foreign operation, a non-manufacturing office in China, uses the Chinese Yuan Renminbi as its functional currency. The translation of functional currency statements to U.S. dollar statements uses end-of-period exchange rates for assets and liabilities, weighted average exchange rates for revenue and expenses, and historical rates for equity. The resulting currency translation adjustment is recorded in Accumulated Other Comprehensive Income, as a component of Share Owners' Equity. Gains and losses from foreign currency remeasurement into EUR and USD functional currencies related to our former EMS segment are included in the Income from Discontinued Operations, Net of Tax line item of the Consolidated Statements of Income. Derivative Instruments and Hedging Activities: Our former EMS segment, classified as a discontinued operation, operated internationally and utilized derivative instruments to hedge the exposure to foreign currency exchange rate fluctuations. See Note 12 - Derivative Instruments of Notes to Consolidated Financial Statements for more information on derivative instruments and hedging activities. Stock-Based Compensation: As described in Note 8 - Stock Compensation Plans of Notes to Consolidated Financial Statements, Kimball maintains a stock-based compensation plan which allows for the issuance of restricted stock, restricted share units, unrestricted share grants, incentive stock options, nonqualified stock options, performance shares, performance units, and stock appreciation rights for grant to officers and other key employees and to members of the Board of Directors who are not employees. We recognize the cost resulting from share-based payment transactions using a fair-value-based method. The estimated fair value of outstanding performance shares and restricted share units is based on the stock price at the date of the grant. For performance shares, the price is reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding performance share awards. The estimated fair value of outstanding relative total shareholder return performance units (āRTSRā) is based on the grant date fair value of RTSR awards using a Monte Carlo simulation which includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. Stock-based compensation expense is recognized for the portion of the awards that are ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Recent Accounting Pronouncements: In July 2015, the Financial Accounting Standards Board (āFASBā) issued guidance on simplifying the measurement of inventory which applies to inventory that is measured using first-in, first-out (āFIFOā) or average cost. Inventory within the scope of this update is required to be measured at the lower of cost or net realizable value, which is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The guidance does not impact inventory measured on a last-in, last-out (āLIFOā) basis. The standards update is effective prospectively for our first quarter fiscal year 2018 financial statements with early adoption permitted. We do not expect the adoption to have a material effect on our consolidated financial statements. In April 2015, the FASB issued guidance that requires debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability and further clarification guidance allows the cost of securing a revolving line of credit to be recorded as a deferred asset regardless of whether a balance is outstanding. This guidance is effective for our first quarter fiscal year 2017 financial statements. We currently comply with this method thus we do not expect the adoption to have a material effect on our consolidated financial statements. In April 2015, the FASB issued guidance on customerās accounting for cloud computing fees and provided criteria for customers in a cloud computing arrangement to use to determine whether the arrangement includes a license of software. The guidance clarifies that a software license included in a cloud computing arrangement should be accounted for consistent with the acquisition of other software licenses, whereas a cloud computing arrangement that does not include a software license should be accounted for as a service contract. The guidance is effective for our first quarter of fiscal year 2017 financial statements, and allows for the use of either a prospective or retrospective transition method. We have not yet selected a transition method nor determined the effect of this guidance on our consolidated financial statements. In June 2014, the FASB provided explicit guidance on how to account for share-based payments granted to employees in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The guidance will be applied prospectively for our first quarter fiscal year 2017 financial statements. We do not expect the adoption to have a material effect on our consolidated financial statements. In May 2014, the FASB issued guidance on the recognition of revenue from contracts with customers. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. To achieve this core principle, the guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance addresses several areas including transfer of control, contracts with multiple performance obligations, and costs to obtain and fulfill contracts. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB decided to defer the effective date for this new revenue standard by one year, which will make the guidance effective for our first quarter fiscal year 2019 financial statements using either of two acceptable adoption methods: (i) retrospective adoption to each prior reporting period presented with the option to elect certain practical expedients; or (ii) adoption with the cumulative effect of initially applying the guidance recognized at the date of initial application and providing certain additional disclosures. We have not yet selected a transition method nor determined the effect of this guidance on our consolidated financial statements. In April 2014, the FASB issued guidance on reporting discontinued operations and disclosures of disposals of components of an entity. Under the new guidance, a disposal that represents a strategic shift that has or will have a major effect on an entity's operations and financial results is a discontinued operation. The new guidance requires expanded disclosures that will provide more information about the assets, liabilities, income, and expenses of discontinued operations, and also requires disclosures of significant disposals that do not qualify for discontinued operations reporting. The guidance is effective prospectively for disposals or components of our business classified as held for sale during the first quarter of fiscal year 2016. We do not expect the adoption of this guidance to have a material effect on our financial results, although it may require additional disclosures for significant disposals in the future. In July 2013, the FASB issued guidance to eliminate the diversity in practice related to the financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The guidance was effective prospectively for our first quarter fiscal year 2015 financial statements. The adoption did not have a material effect on our consolidated financial statements. |
Note 2. Spin-Off Transaction (N
Note 2. Spin-Off Transaction (Notes) | 12 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Planned Spin-Off [Text Block] | Spin-Off Transaction On October 31, 2014 (āDistribution Dateā), we completed the spin-off of our Electronic Manufacturing Services (āEMSā) segment by distributing the related shares of Kimball Electronics, Inc. (āKimball Electronicsā), on a pro rata basis, to the Company's Share Owners of record as of October 22, 2014 (āthe Record Dateā). On the Distribution Date, each of the Company's Share Owners received three shares of Kimball Electronics for every four shares of the Company held by such Share Owner on the Record Date. After the Distribution Date, the Company does not beneficially own any Kimball Electronics shares and Kimball Electronics is an independent publicly traded company. Kimball International, Inc. trades on the NASDAQ under the ticker symbol āKBALā and Kimball Electronics, Inc. trades on the NASDAQ under the ticker symbol āKEā. The following is a summary of the assets and liabilities distributed to Kimball Electronics on the Distribution Date or shortly thereafter: (Amounts in Millions) Assets: Cash and cash equivalents $ 63 Receivables 133 Inventories 124 Prepaid expenses and other current assets 19 Net property and equipment 98 Goodwill 3 Net other intangible assets 1 Other long-term assets 15 $ 456 Liabilities: Accounts payable $ 125 Accrued expenses 22 Other long-term liabilities 9 $ 156 Net Assets Distributed to Kimball Electronics, Inc. $ 300 The Company distributed $63 million of cash to Kimball Electronics, including the cash held by its foreign facilities, as Kimball Electronics began operation as an independent company. The cash distribution occurred in several installments immediately preceding the Distribution Date or shortly thereafter. In addition, $3.5 million of accumulated other comprehensive losses, net of tax, related to foreign translation, derivatives, and the postemployment severance benefit plan was transferred to Kimball Electronics. The EMS segment was reclassified to discontinued operations in the Consolidated Statements of Income for all periods presented. Summarized financial results of discontinued operations through the October 31, 2014 spin-off date, were as follows: Fiscal Year Ended June 30 (Amounts in Thousands, Except Per Share Data) 2015 2014 2013 Net Sales $ 275,551 $ 741,530 $ 703,129 Income Before Taxes on Income 13,098 38,961 33,659 Provision for Income Taxes 3,941 8,919 7,164 Income from Discontinued Operations, Net of Tax $ 9,157 $ 30,042 $ 26,495 Income From Discontinued Operations per Class B Diluted Share $ 0.23 $ 0.77 $ 0.70 In connection with the spin-off of Kimball Electronics, the Company and Kimball Electronics entered into several agreements covering administrative and tax matters to provide or obtain services on a transitional basis, as needed, for varying periods after the spin-off. The administrative agreements cover various services such as information technology, human resources, taxation, and finance. The Company expects all services to be substantially complete within one year after the spin-off. The Company has retained all liabilities for U.S. federal, state, and local income taxes on income prior to the spin-off, as well as certain non-income taxes attributable to Kimball Electronicsā business. Kimball Electronics generally will be liable for all other taxes attributable to its business. In connection with the spin-off, the Company has adjusted its employee stock compensation awards and separated its retirement and post-employment severance benefit plans. |
Note 3. Inventories
Note 3. Inventories | 12 Months Ended |
Jun. 30, 2015 | |
Inventories [Abstract] | |
Inventory Disclosure | Inventories Inventories are valued using the lower of last-in, first-out (āLIFOā) cost or market value for approximately 91% of consolidated inventories at June 30, 2015 . As of June 30, 2014 , prior to the spin-off of Kimball Electronics, inventories valued using the lower of LIFO cost or market value were approximately 16% of consolidated inventories. The remaining inventories are valued using the lower of first-in, first-out (āFIFOā) cost or market value. Had the FIFO method been used for all inventories, income from continuing operations would have been $0.2 million higher in fiscal year 2015 , $0.6 million higher in fiscal year 2014 , and $0.2 million higher in fiscal year 2013 . Certain inventory quantity reductions caused liquidations of LIFO inventory values, which increased income from continuing operations by an immaterial amount in both 2015 and 2014. There were no LIFO inventory liquidations in fiscal year 2013. Inventory components at June 30 were as follows: (Amounts in Thousands) 2015 2014 Finished products $ 26,634 $ 37,373 Work-in-process 1,952 13,808 Raw materials 23,201 103,083 Total FIFO inventory $ 51,787 $ 154,264 LIFO reserve (14,153 ) (13,789 ) Total inventory $ 37,634 $ 140,475 The reduction in FIFO inventory from June 30, 2014 to June 30, 2015 was due primarily to the spin-off of Kimball Electronics on October 31, 2014. |
Note 4. Property and Equipment
Note 4. Property and Equipment | 12 Months Ended |
Jun. 30, 2015 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | Property and Equipment Major classes of property and equipment at June 30 consist of the following: (Amounts in Thousands) 2015 2014 Land $ 2,849 $ 12,308 Buildings and improvements 124,709 183,735 Machinery and equipment 159,648 341,525 Construction-in-progress 7,457 9,758 Total $ 294,663 $ 547,326 Less: Accumulated depreciation (197,500 ) (358,493 ) Property and equipment, net $ 97,163 $ 188,833 The reduction in property and equipment from June 30, 2014 to June 30, 2015 was due primarily to the spin-off of Kimball Electronics on October 31, 2014. The useful lives used in computing depreciation are based on estimated service lives for classes of property, as follows: Years Buildings and improvements 5 to 50 Machinery and equipment 2 to 20 Leasehold improvements Lesser of Useful Life or Term of Lease Depreciation and amortization of property and equipment from continuing operations, including asset write-downs associated with restructuring plans, totaled, in millions, $13.1 for fiscal year 2015 , $13.5 for fiscal year 2014 , and $12.0 for fiscal year 2013 . At June 30, 2015 , no assets were classified as held for sale. Assets held for sale that were sold during fiscal year 2015 included: ā¢ An aircraft which had been used primarily for management travel totaling $1.3 million was classified as held for sale during the second quarter of fiscal year 2015, and was subsequently sold during the third quarter of fiscal year 2015. We recognized a pre-tax gain of $0.2 million related to the sale of the aircraft during the third quarter of fiscal year 2015 which partially offsets the pre-tax impairment charge recorded in the second quarter of fiscal year 2015 of $1.1 million , due to the book value of the aircraft exceeding current fair market value estimates less selling costs. The impairment and gain were both recorded on the Restructuring Expense line of the Consolidated Statements of Income. At June 30, 2014 , Kimball had no assets classified as held for sale. Assets held for sale that were sold during fiscal year 2014 included: ā¢ An underutilized aircraft totaling $1.5 million was classified as held for sale during the first quarter of fiscal year 2014, and was subsequently sold during the second quarter of fiscal year 2014. During fiscal year 2014, we recognized pre-tax losses of $1.2 million for impairment on this aircraft, which was recorded on the Selling and Administrative Expenses line of the Consolidated Statements of Income. ā¢ We sold an idle manufacturing facility and land located in Jasper, Indiana, recognizing a pre-tax gain of $1.7 million during fiscal year 2014, which was recorded on the Selling and Administrative Expenses line of the Consolidated Statements of Income. ā¢ Our former EMS segment sold a facility and land located in Gaylord, Michigan, recognizing a pre-tax loss of $0.3 million during fiscal year 2014. During fiscal year 2013, the former EMS segment recognized pre-tax impairment on this property of $0.2 million . The loss on sale and impairment charge were included in the Income from Discontinued Operations, Net of Tax line of the Consolidated Statements of Income. |
Note 5. Commitments and Conting
Note 5. Commitments and Contingent Liabilities | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingent Liabilities Leases: Operating leases from continuing operations for certain offices, showrooms, a manufacturing facility, land, and equipment, which expire from fiscal year 2016 to 2026 , contain provisions under which minimum annual lease payments are, in millions, $3.4 , $3.1 , $2.7 , $2.3 , and $2.2 for the five years ending June 30, 2020 , respectively, and aggregate $7.9 million from fiscal year 2021 to the expiration of the leases in fiscal year 2026 . We are obligated under certain real estate leases to maintain the properties and pay real estate taxes. Certain leases include renewal options and escalation clauses. Total rental expense from continuing operations amounted to, in millions, $4.9 , $4.1 , and $4.4 in fiscal years 2015 , 2014 , and 2013 , respectively, including certain leases requiring contingent lease payments based on warehouse space utilized, which amounted to expense of, in millions, $1.0 , $0.8 , and $0.9 in fiscal years 2015 , 2014 , and 2013 , respectively. As of June 30, 2015 and 2014 , capital leases were not material. Guarantees: As of June 30, 2015 and 2014 , we had no guarantees issued which were contingent on the future performance of another entity. Standby letters of credit are issued to third-party suppliers, lessors, and insurance and financial institutions and can only be drawn upon in the event of Kimball's failure to pay its obligations to the beneficiary. We had a maximum financial exposure from unused standby letters of credit totaling $1.0 million as of June 30, 2015 and $1.1 million as of June 30, 2014 . We are not aware of circumstances that would require us to perform under any of these arrangements and believe that the resolution of any claims that might arise in the future, either individually or in the aggregate, would not materially affect our consolidated financial statements. Accordingly, no liability has been recorded as of June 30, 2015 and 2014 with respect to the standby letters of credit. Kimball also enters into commercial letters of credit to facilitate payments to vendors and from customers. Product Warranties: We estimate product warranty liability at the time of sale based on historical repair or replacement cost trends in conjunction with the length of the warranty offered. Management refines the warranty liability periodically based on changes in historical cost trends and in certain cases where specific warranty issues become known. Changes in the product warranty accrual during fiscal years 2015 , 2014 , and 2013 were as follows: (Amounts in Thousands) 2015 2014 2013 Product Warranty Liability at the beginning of the year $ 3,221 $ 2,384 $ 2,251 Additions to warranty accrual (including changes in estimates) 880 2,883 1,040 Settlements made (in cash or in kind) (927 ) (2,046 ) (907 ) Distribution to Kimball Electronics, Inc. (910 ) ā ā Product Warranty Liability at the end of the year $ 2,264 $ 3,221 $ 2,384 |
Note 6. Long-Term Debt and Cred
Note 6. Long-Term Debt and Credit Facilities | 12 Months Ended |
Jun. 30, 2015 | |
Long-Term Debt and Credit Facility [Abstract] | |
Debt Disclosure | Long-Term Debt and Credit Facilities Long-term debt, less current maturities as of June 30, 2015 and 2014 , was, in thousands, $241 and $268 , respectively, and current maturities of long-term debt were, in thousands, $27 and $25 , respectively. Long-term debt consists of a long-term note payable and capitalized leases. Interest rates range from 2.50% to 9.25% and maturities occur in fiscal years 2018 and 2025 . Aggregate maturities of long-term debt for the next five years are, in thousands, $27 , $30 , $27 , $23 , and $25 , respectively, and aggregate $136 thereafter. Credit facilities consisted of the following: Availability to Borrow at Borrowings Outstanding at Borrowings Outstanding at (Amounts in Millions) June 30, 2015 June 30, 2015 June 30, 2014 Primary revolving credit facility (1) $ 29.0 $ ā $ ā Former EMS segment overdraft credit facilities (2) ā ā ā Total $ 29.0 $ ā $ ā (1) In connection with the spin-off, on October 31, 2014 Kimball entered into a new credit facility. The new credit agreement, which replaced a previously existing primary credit facility, has a maturity date of October 31, 2019 and allows for up to $30 million in borrowings, with an option to increase the amount available for borrowing to $55 million at the Company's request, subject to participating banks' consent. At June 30, 2015 , we had $1.0 million in letters of credit outstanding, which reduced our borrowing capacity on the credit facility. The revolving loans under the Credit Agreement may consist of, at the Company's election, advances in U.S. dollars or advances in any other currency that is agreed to by the lenders. The proceeds of the revolving loans are to be used for general corporate purposes of the Company including acquisitions. A portion of the credit facility, not to exceed $10 million of the principal amount, will be available for the issuance of letters of credit. A commitment fee is payable on the unused portion of the credit facility which was immaterial to our operating results for fiscal year 2015. The commitment fee on the unused portion of principal amount of the credit facility is payable at a rate that ranges from 20.0 to 25.0 basis points per annum as determined by the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA. The interest rate is dependent on the type of borrowings and will be one of the following two options: ā¢ The adjusted London Interbank Offered Rate (āAdjusted LIBO Rateā as defined in the Credit Agreement) in effect two business days prior to the advance (adjusted upwards to reflect bank reserve costs) for such interest period, plus the Eurocurrency Loans margin which can range from 125.0 to 175.0 basis points based on the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA; or ā¢ The Alternate Base Rate, which is defined as the highest of the fluctuating rate per annum equal to the higher of a. JPMorgan's prime rate; b. 1% per annum above the Adjusted LIBO rate; or c. 1/2% per annum above the Federal funds rate; plus the ABR Loans spread which can range from 25.0 to 75.0 basis points based on the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA. The Company's financial covenants under the Credit Agreement require: ā¢ An adjusted leverage ratio of (a) consolidated total indebtedness minus unencumbered U.S. cash on hand in the U.S. in excess of $15,000,000 to (b) consolidated EBITDA, determined as of the end of each of its fiscal quarters for the then most recently ended four fiscal quarters, to not be greater than 3.0 to 1.0 , and ā¢ A fixed charge coverage ratio of (a) the sum of (i) consolidated EBITDA, minus (ii) 50% of depreciation expense, minus (iii) taxes paid, minus (iv) dividends and distributions paid, to (b) the sum of (i) scheduled principal payments on indebtedness due and/or paid, plus (ii) interest expense, calculated on a consolidated basis in accordance with GAAP, determined as of the end of each of its fiscal quarters for the trailing four fiscal quarters then ending, to not be less than 1.10 to 1.00 . Prior to the October 31, 2014 spin-off, Kimball maintained a primary revolving credit facility which provided for up to $75 million in borrowings. (2) Our former EMS segment, classified as a discontinued operation, also maintained foreign credit facilities which were available to cover bank overdrafts. Bank overdrafts may have been deemed necessary to satisfy short-term cash needs rather than funding from intercompany sources. Cash payments for interest on borrowings were, in thousands, $29 , $29 , and $36 , in fiscal years 2015 , 2014 , and 2013 , respectively. Capitalized interest expense was immaterial during fiscal years 2015 , 2014 , and 2013 . |
Note 7. Employee Benefit Plans
Note 7. Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2015 | |
Employee Benefit Plans [Abstract] | |
Pension and Postemployment Benefits | Employee Benefit Plans Retirement Plans: Kimball has a trusteed defined contribution retirement plan in effect for substantially all domestic employees meeting the eligibility requirements. Employer contributions to the trusteed plan have a five-year vesting schedule and are held for the sole benefit of participants. Kimball also maintains a supplemental employee retirement plan (āSERPā) for executive employees which enables them to defer cash compensation on a pre-tax basis in excess of IRS limitations. The SERP is structured as a rabbi trust, and therefore assets in the SERP portfolio are subject to creditor claims in the event of bankruptcy. In connection with the spin-off, the Company has transferred the retirement plan balances of EMS employees to Kimball Electronics retirement plans. The discretionary employer contribution for domestic employees was determined annually by the Compensation and Governance Committee of the Board of Directors. Total expense from continuing operations related to employer contributions to the domestic retirement plans was, in millions, $4.3 , $4.0 , and $4.0 for fiscal years 2015 , 2014 , and 2013 , respectively. Employees of certain foreign subsidiaries are covered by local pension or retirement plans. The expense from continuing operations related to employer contributions to these foreign plans for fiscal years 2015 , 2014 , and 2013 was not material. Severance Plans: Kimball's domestic employees participate in severance plans which provide severance benefits to eligible employees meeting the plans' qualifications, primarily involuntary termination without cause. In connection with the spin-off, the Company transferred the post-employment obligation for EMS employees to Kimball Electronics. There are no statutory requirements for Kimball to contribute to the plans, nor do employees contribute to the plans. The plans hold no assets. Benefits are paid using available cash on hand when eligible employees meet plan qualifications for payment. Benefits are based upon an employee's years of service and accumulate up to certain limits specified in the plans and include both salary and an allowance for medical benefits. The components and changes in the Benefit Obligation, Accumulated Other Comprehensive Income (Loss), and Net Periodic Benefit Cost are as follows: June 30 (Amounts in Thousands) 2015 2014 Changes and Components of Benefit Obligation: Benefit obligation at beginning of year $ 5,350 $ 5,579 Service cost 645 955 Interest cost 96 134 Actuarial (gain) loss for the period (895 ) (899 ) Benefits paid (168 ) (419 ) Distribution to Kimball Electronics, Inc. (2,173 ) ā Benefit obligation at end of year $ 2,855 $ 5,350 Balance in current liabilities $ 501 $ 939 Balance in noncurrent liabilities 2,354 4,411 Total benefit obligation recognized in the Consolidated Balance Sheets $ 2,855 $ 5,350 June 30 (Amounts in Thousands) 2015 2014 Changes and Components in Accumulated Other Comprehensive Income (Loss) (before tax): Accumulated Other Comprehensive Income (Loss) at beginning of year $ (1,567 ) $ (44 ) Change in unrecognized prior service cost (185 ) (286 ) Net change in unrecognized actuarial (gain) loss (603 ) (1,237 ) Distribution to Kimball Electronics, Inc. 344 ā Accumulated Other Comprehensive Income (Loss) at end of year $ (2,011 ) $ (1,567 ) Balance in unrecognized prior service cost $ ā $ 199 Balance in unrecognized actuarial (gain) loss (2,011 ) (1,766 ) Total Accumulated Other Comprehensive Income (Loss) recognized in Share Owners' Equity $ (2,011 ) $ (1,567 ) (Amounts in Thousands) Year Ended June 30 Components of Net Periodic Benefit Cost (before tax): 2015 2014 2013 Service cost $ 645 $ 955 $ 825 Interest cost 96 134 179 Amortization of prior service cost 185 286 286 Amortization of actuarial (gain) loss (292 ) 338 344 Net periodic benefit cost ā Total cost $ 634 $ 1,713 $ 1,634 Less: Discontinued operations 81 343 321 Net periodic benefit cost ā Continuing operations $ 553 $ 1,370 $ 1,313 The benefit cost in the above table includes only normal recurring levels of severance activity, as estimated using an actuarial method. Unusual or non-recurring severance actions, such as those disclosed in Note 18 - Restructuring Expense of Notes to Consolidated Financial Statements, are not estimable using actuarial methods and are expensed in accordance with other applicable U.S. GAAP. Prior service cost was amortized on a straight-line basis over the average remaining service period of employees that were active at the time of the plan initiation and actuarial (gain) loss is amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits under the plan. The estimated actuarial net (gain) loss from continuing operations for the severance plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost (income) over the next fiscal year is, pre-tax in thousands, $(811) . Assumptions used to determine fiscal year end benefit obligations are as follows: 2015 2014 Discount Rate 2.8% 2.3% Rate of Compensation Increase 3.0% 3.0% Weighted average assumptions used to determine fiscal year net periodic benefit costs are as follows: 2015 2014 2013 Discount Rate 2.6% 2.5% 3.8% Rate of Compensation Increase 3.0% 3.0% 3.8% |
Note 8. Stock Compensation Plan
Note 8. Stock Compensation Plans | 12 Months Ended |
Jun. 30, 2015 | |
Stock Compensation Plans [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments | Stock Compensation Plans On August 13, 2013, the Board of Directors adopted the Amended and Restated 2003 Stock Option and Incentive Plan (āthe 2003 Planā), which was approved by Kimball's Share Owners on October 15, 2013. Under the 2003 Plan, 5,000,000 shares of Common Stock are reserved for issuance of new awards and awards that had been issued under a former 2003 Stock Option and Incentive Plan. The 2003 Plan allows for issuance of restricted stock, restricted share units, unrestricted share grants, incentive stock options, nonqualified stock options, performance shares, performance units, and stock appreciation rights for grant to officers and other key employees and to members of the Board of Directors who are not employees. The 2003 Plan expires December 31, 2018. The pre-tax compensation cost from continuing operations charged against income was $5.6 million , $5.5 million , and $3.7 million in fiscal years 2015 , 2014 , and 2013 , respectively. The total income tax benefit from continuing operations for stock compensation arrangements was $2.2 million , $2.2 million , and $1.5 million in fiscal years 2015 , 2014 , and 2013 , respectively. We generally use treasury shares for issuance of shares. Performance Shares: Kimball awards performance shares to officers and other key employees. Under these awards, a number of shares will be issued to each participant based upon the attainment of the applicable bonus percentage calculated under Kimball's profit sharing incentive bonus plan as applied to a total potential share award made and approved by the Compensation and Governance Committee. Performance shares are vested when issued shortly after the end of the fiscal year in which the performance measurement period is complete and are issued as common shares. Certain outstanding performance shares are applicable to performance measurement periods in future fiscal years and will be measured at fair value when the performance targets are established in future fiscal years. The contractual life of performance shares ranges from one year to five years . If a participant is not employed on the date shares are issued, the performance share award is forfeited, except in the case of death, retirement at age 62 or older, total permanent disability, or certain other circumstances described in Kimball's employment policy. To the extent performance conditions are not fully attained, performance shares are forfeited. A summary of performance share activity during fiscal year 2015 is presented below: Number of Shares Weighted Average Grant Date Fair Value Performance Shares outstanding at July 1, 2014 1,974,863 $10.92 Granted ā $ā Vested (649,524 ) $11.07 Forfeited (559,081 ) $15.90 Impact of Spin-Off 14,400 Performance Shares outstanding at June 30, 2015 780,658 $10.21 As of June 30, 2015 , there was approximately $3.5 million of unrecognized compensation cost related to performance shares, based on the latest estimated attainment of performance goals. That cost is expected to be recognized over annual performance periods ending July 2015 through July 2019, with a weighted average vesting period of one year, four months . The fair value of performance shares is based on the stock price at the date of grant, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding performance share awards. The weighted average grant date fair value was $14.93 and $10.91 for performance share awards granted in fiscal years 2014 and 2013 , respectively. During fiscal years 2015 , 2014 , and 2013 , respectively, 649,524 ; 512,719 ; and 254,393 performance shares vested at a fair value of $7.2 million , $5.6 million , and $1.4 million . The performance shares vested represent the total number of shares vested prior to the reduction of shares withheld to satisfy tax withholding obligations. During fiscal year 2015 , in connection with the spin-off of Kimball Electronics, the number of performance shares outstanding was reduced by 282,740 for performance shares related to Kimball Electronics' employees, and to increase the number of performance share awards held by Kimball International employees by 297,140 shares in order to preserve the fair value of the awards before and after the spin-off. This modification did not result in additional compensation expense. The number of shares presented in the above table, the amounts of unrecognized compensation, and the weighted average period include performance shares awarded that are applicable to future performance measurement periods and will be measured at fair value when the performance targets are established in future fiscal years. Relative Total Shareholder Return Performance Units: Kimball awards relative total shareholder return performance units (āRTSRā) to key officers. Under these awards, a participant will earn from 0% to 200% of the target award depending upon how the compound annual growth rate of Kimball common stock ranks within the peer group at the end of the performance period. RTSRs are vested when issued shortly after the performance measurement period is complete and are issued as common shares. The contractual life of RTSRs is two years, five months . If a participant is not employed on the date shares are issued, the RTSR award is forfeited, except in the case of death, retirement at age 62 or older, total permanent disability, or certain other circumstances described in Kimball's employment policy. To the extent performance conditions are not fully attained, RTSRs are forfeited. A summary of RTSR activity during fiscal year 2015 is presented below: Number of Shares Weighted Average Grant Date Fair Value RTSRs outstanding at July 1, 2014 ā $ā Granted 30,198 $11.48 Vested ā $ā Forfeited ā $ā RTSRs outstanding at June 30, 2015 30,198 $11.48 As of June 30, 2015 , assuming a target of 100% , there was approximately $0.3 million of unrecognized compensation cost related to RTSRs. That cost is expected to be recognized over the vesting period ending June 2017, with a weighted average vesting period of two years . The grant date fair value of RTSR awards was calculated using a Monte Carlo simulation. This valuation technique includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. The weighted average grant date fair value was $11.48 for RTSR awards granted in fiscal year 2015 . During fiscal years 2015 , 2014 , and 2013 , no RTSRs vested. Restricted Share Units: Restricted Share Units (āRSUā) were granted to officers and key employees. Upon vesting, the outstanding number of RSUs and the value of dividends accumulated over the vesting period are converted to shares of common stock. The contractual life of RSUs ranges from one year, four months to two years, seven months . If the employment of a holder of an RSU terminates before the RSU has vested for any reason other than death, retirement at age 62 or older, total permanent disability, or certain other circumstances described in the Company's employment policy, the RSU and accumulated dividends will be forfeited. A summary of RSU activity during fiscal year 2015 is presented below: Number of Shares Weighted Average Grant Date Fair Value RSUs outstanding at July 1, 2014 ā $ā Granted 188,949 $9.15 Vested (45,009 ) $9.13 Forfeited ā $ā RSUs outstanding at June 30, 2015 143,940 $9.16 As of June 30, 2015 , there was approximately $0.9 million of unrecognized compensation cost related to nonvested RSU compensation arrangements. That cost is expected to be recognized over vesting periods ending June 2016 and June 2017, with a weighted average vesting period of one year, six months . The fair value of RSU awards is based on the stock price at the date of award. The weighted average grant date fair value was $9.15 for RSU awards granted in fiscal year 2015 . The total fair value of RSU awards vested during fiscal year 2015 was $0.4 million . The RSU awards vested represent the total number of shares vested prior to the reduction of shares withheld to satisfy tax withholding obligations. Unrestricted Share Grants: Unrestricted shares may be granted to employees and members of the Board of Directors as consideration for service to Kimball. Unrestricted share grants do not have vesting periods, holding periods, restrictions on sale, or other restrictions. The fair value of unrestricted shares is based on the stock price at the date of the award. Prior to the spin-off, during fiscal year 2015 , Kimball granted a total of 17,335 unrestricted shares of Class B common stock at an average grant date fair value of $16.01 , for a total fair value, in thousands, of $278 . After the spin-off, during fiscal year 2015 , Kimball granted a total of 17,529 unrestricted shares of common stock at an average grant date fair value of $8.79 , for a total fair value, in thousands, of $154 . During fiscal years 2014 and 2013 , respectively, Kimball granted a total of 20,277 and 2,843 unrestricted shares of Class B common stock at an average grant date fair value of $11.47 and $11.78 , for a total fair value, in thousands, of $233 and $33 . These shares are the total number of shares granted, prior to the reduction of shares withheld to satisfy tax withholding obligations. Unrestricted shares were awarded to officers and other key employees, and to non-employee members of the Board of Directors as compensation for director's fees, as a result of directors' elections to receive unrestricted shares in lieu of cash payment. Director's fees are expensed over the period that directors earn the compensation. |
Note 9. Income Taxes
Note 9. Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Income Tax Disclosure | Income Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Income tax benefits associated with net operating losses of, in thousands, $3,525 expire from fiscal year 2015 to 2035 . Income tax benefits associated with tax credit carryforwards of, in thousands, $2,472 , expire from fiscal year 2016 to 2028 . A valuation allowance was provided as of June 30, 2015 for deferred tax assets relating to state net operating losses of, in thousands, $687 that we currently believe are more likely than not to remain unrealized in the future. The components of the deferred tax assets and liabilities as of June 30, 2015 and 2014 , were as follows: (Amounts in Thousands) 2015 2014 Deferred Tax Assets: Receivables $ 1,137 $ 1,587 Inventory 528 2,388 Employee benefits 382 630 Deferred compensation 12,810 24,502 Other current liabilities 134 619 Warranty reserve 881 1,036 Tax credit carryforwards 2,472 1,883 Restructuring 1,017 ā Goodwill ā 2,597 Net operating loss carryforward 2,525 3,076 Net foreign currency losses ā 77 Miscellaneous 2,055 4,822 Valuation Allowance (687 ) (787 ) Total asset $ 23,254 $ 42,430 Deferred Tax Liabilities: Property and equipment $ 7,353 $ 7,397 Capitalized software 146 168 Miscellaneous 427 512 Total liability $ 7,926 $ 8,077 Net Deferred Income Taxes $ 15,328 $ 34,353 The reduction in deferred income taxes from June 30, 2014 to June 30, 2015 was due primarily to the spin-off of Kimball Electronics on October 31, 2014. The provision (benefit) for income taxes from continuing operations is composed of the following items: Year Ended June 30 (Amounts in Thousands) 2015 2014 2013 Currently Payable (Refundable): Federal $ 4,553 $ 6,108 $ (3,282 ) State 885 1,118 (139 ) Total current $ 5,438 $ 7,226 $ (3,421 ) Deferred Taxes: Federal $ 616 $ (4,514 ) $ (246 ) State 482 (1,122 ) (1,259 ) Total deferred $ 1,098 $ (5,636 ) $ (1,505 ) Valuation allowance ā (797 ) 546 Total provision (benefit) for income taxes from continuing operations $ 6,536 $ 793 $ (4,380 ) A reconciliation of the statutory U.S. income tax rate from continuing operations to Kimball's effective income tax rate follows: Year Ended June 30 2015 2014 2013 (Amounts in Thousands) Amount % Amount % Amount % Tax provision (benefit) computed at U.S. federal statutory rate $ 6,188 35.0 % $ 1,474 35.0 % $ (3,848 ) 35.0 % State income taxes, net of federal income tax benefit 662 3.8 (45 ) (1.1 ) (909 ) 8.3 Valuation allowance ā ā (797 ) (18.9 ) 546 (5.0 ) Domestic manufacturing deduction (602 ) (3.4 ) (327 ) (7.8 ) ā ā Research credit (218 ) (1.2 ) (115 ) (2.7 ) (327 ) 3.0 Spin-off costs 784 4.4 422 10.0 ā ā Unrecognized tax benefit (851 ) (4.8 ) ā ā ā ā Other - net 573 3.2 181 4.3 158 (1.5 ) Total provision (benefit) for income taxes from continuing operations $ 6,536 37.0 % $ 793 18.8 % $ (4,380 ) 39.8 % Net cash payments (refunds) for income taxes were, in thousands, $13,306 , $13,911 , and $(551) in fiscal years 2015 , 2014 , and 2013 , respectively. Changes in the unrecognized tax benefit, excluding accrued interest and penalties, during fiscal years 2015 , 2014 , and 2013 were as follows: (Amounts in Thousands) 2015 2014 2013 Beginning balance - July 1 $ 2,692 $ 2,752 $ 2,624 Tax positions related to prior fiscal years: Additions 351 415 207 Reductions ā ā ā Tax positions related to current fiscal year: Additions ā ā ā Reductions ā ā ā Settlements ā ā ā Lapses in statute of limitations (1,123 ) (475 ) (79 ) Ending balance - June 30 $ 1,920 $ 2,692 $ 2,752 Portion that, if recognized, would reduce tax expense and effective tax rate $ 1,307 $ 2,159 $ 2,286 We recognize interest and penalties related to unrecognized tax benefits in the Provision for Income Taxes line of the Consolidated Statements of Income. Amounts accrued for interest and penalties were as follows: As of June 30 (Amounts in Thousands) 2015 2014 2013 Accrued Interest and Penalties: Interest $ 104 $ 285 $ 278 Penalties $ 105 $ 95 $ 78 Interest and penalties income (expense) recognized for fiscal years 2015 , 2014 , and 2013 were, in thousands, $171 , $(25) , and $22 , respectively. Kimball, or one of its wholly-owned subsidiaries, files U.S. federal income tax returns and income tax returns in various state and local jurisdictions. We are no longer subject to any significant U.S. federal tax examinations by tax authorities for years before fiscal year 2012, and to various state and local income tax examinations by tax authorities for years before 2007. We do not expect the change in the amount of unrecognized tax benefits in the next 12 months to have a significant impact on our results of operations or financial position. |
Note 10. Common Stock
Note 10. Common Stock | 12 Months Ended |
Jun. 30, 2015 | |
Common Stock [Abstract] | |
Common Stock Note Disclosure | Common Stock On October 30, 2014, holders of a sufficient number of shares of Class A common stock converted such shares into Class B common stock such that the number of outstanding shares of Class A common stock is, after such conversions, less than 15% of the total number of issued and outstanding shares of both Class A common stock and Class B common stock. Pursuant to the Companyās Amended and Restated Articles of Incorporation if at any time the number of shares of Class A common stock issued and outstanding is less than 15% of the total number of issued and outstanding shares of both Class A common stock and Class B common stock, then all of the rights, preferences, limitations and restrictions relating to Class B common stock shall become the same as the rights, preferences, limitations and restrictions of Class A common stock, without any further action of or by its Share Owners, and all distinctions between Class A common stock and Class B common stock shall be eliminated so that all shares of Class B common stock are equal to shares of Class A common stock with respect to all matters, including without limitation, dividend payments and voting rights. The elimination of such distinctions, which occurred on October 30, 2014, is referred to as the āstock unification.ā As a result of the stock unification, Class A common stock and Class B common stock now vote as a single class (except as otherwise required by applicable law) on all matters submitted to a vote of the Companyās Share Owners. |
Note 11. Fair Value
Note 11. Fair Value | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value [Abstract] | |
Fair Value Disclosures | Fair Value Kimball categorizes assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas level 3 generally requires significant management judgment. The three levels are defined as follows: ā¢ Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. ā¢ Level 2: Observable inputs other than those included in level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. ā¢ Level 3: Unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability. Our policy is to recognize transfers between these levels as of the end of each quarterly reporting period. There were no transfers between these levels during fiscal years 2015 and 2014 . Financial Instruments Recognized at Fair Value: The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents 1 Market - Quoted market prices Derivative Assets: Foreign exchange contracts 2 Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates, considering counterparty credit risk Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Derivative Liabilities: Foreign exchange contracts 2 Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates adjusted for Kimball's non-performance risk Recurring Fair Value Measurements: As of June 30, 2015 and 2014 , the fair values of financial assets and liabilities that are measured at fair value on a recurring basis using the market approach are categorized as follows: June 30, 2015 (Amounts in Thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 23,414 $ ā $ ā $ 23,414 Derivatives: Foreign exchange contracts ā ā ā ā Trading Securities: Mutual funds in nonqualified SERP 10,353 ā ā 10,353 Total assets at fair value $ 33,767 $ ā $ ā $ 33,767 Liabilities Derivatives: Foreign exchange contracts $ ā $ ā $ ā $ ā Total liabilities at fair value $ ā $ ā $ ā $ ā June 30, 2014 (Amounts in Thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 103,845 $ ā $ ā $ 103,845 Derivatives: Foreign exchange contracts ā 800 ā 800 Trading Securities: Mutual funds in nonqualified SERP 23,106 ā ā 23,106 Total assets at fair value $ 126,951 $ 800 $ ā $ 127,751 Liabilities Derivatives: Foreign exchange contracts $ ā $ 699 $ ā $ 699 Total liabilities at fair value $ ā $ 699 $ ā $ 699 The reduction in balances from June 30, 2014 to June 30, 2015 was primarily due to the spin-off of the EMS segment on October 31, 2014. No purchases or sales of Level 3 assets occurred during the periods. The nonqualified supplemental employee retirement plan (āSERPā) assets consist primarily of equity funds, balanced funds, a bond fund, and a money market fund. The SERP investment assets are offset by a SERP liability which represents Kimball's obligation to distribute SERP funds to participants. See Note 13 - Investments of Notes to Consolidated Financial Statements for further information regarding the SERP. Non-Recurring Fair Value Measurements: Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments when events or circumstances indicate a significant adverse effect on the fair value of the asset. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. Non-recurring fair value adjustment Level Valuation Technique/Inputs Used Impairment of assets held for sale (real estate and property & equipment) 3 Market - Quoted market prices for similar assets sold, adjusted for features specific to the asset During fiscal year 2015, we classified an aircraft as held for sale and recognized pre-tax impairment of $1.1 million due to the book value of the aircraft exceeding current fair market value estimates less selling costs. The aircraft was sold later in fiscal year 2015 at a pre-tax gain of $0.2 million . During fiscal year 2014, we classified another aircraft as held for sale and recognized pre-tax impairment of $1.2 million due to a significant downward shift in the market for private aviation aircraft. The aircraft was subsequently sold during fiscal year 2014. Our former EMS segment sold a facility and land located in Gaylord, Michigan, recognizing a pre-tax loss of $0.3 million during fiscal year 2014. During fiscal year 2013, the former EMS segment recognized pre-tax impairment on this held for sale property of $0.2 million . The loss on sale and impairment charge were included in the Income from Discontinued Operations, Net of Tax line of the Consolidated Statements of Income. Financial Instruments Not Carried At Fair Value: Financial instruments that are not reflected in the Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer's non-performance risk Long-term debt (carried at amortized cost) 3 Income - Price estimated using a discounted cash flow analysis based on quoted long-term debt market rates, taking into account Kimball's non-performance risk The carrying value of our cash deposit accounts, trade accounts receivable, trade accounts payable, and dividends payable approximates fair value due to the relatively short maturity and immaterial non-performance risk. |
Note 12. Derivative Instruments
Note 12. Derivative Instruments | 12 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | Derivative Instruments Our former EMS segment, classified as a discontinued operation, operated internationally and was therefore exposed to foreign currency exchange rate fluctuations in the normal course of business. The primary means of managing this exposure was to utilize natural hedges, such as aligning currencies used in the supply chain with the sale currency. To the extent natural hedging techniques did not fully offset currency risk, derivative instruments were used with the objective of reducing the residual exposure to certain foreign currency rate movements. Factors considered in the decision to hedge an underlying market exposure included the materiality of the risk, the volatility of the market, the duration of the hedge, the degree to which the underlying exposure was committed to, and the availability, effectiveness, and cost of derivative instruments. Derivative instruments were only utilized for risk management purposes and were not used for speculative or trading purposes. Forward contracts designated as cash flow hedges were used to protect against foreign currency exchange rate risks inherent in forecasted transactions denominated in a foreign currency. Foreign exchange contracts were also used to hedge against foreign currency exchange rate risks related to intercompany balances denominated in currencies other than the functional currencies. In limited cases due to unexpected changes in forecasted transactions, cash flow hedges may have ceased to meet the criteria to be designated as cash flow hedges. Depending on the type of exposure hedged, either a derivative contract in the opposite position of the undesignated hedge may have been purchased or the hedge may have been retained until it matured if the hedge had continued to provide an adequate offset in earnings against the currency revaluation impact of foreign currency denominated liabilities. As of June 30, 2015 , after the spin-off of the EMS segment, we held no derivative instruments. As of June 30, 2014, the fair value of outstanding derivative instruments was recognized on the balance sheet as a derivative asset or liability. When derivatives were settled with the counterparty, the derivative asset or liability was relieved and cash flow was impacted for the net settlement. For derivative instruments that met the criteria of hedging instruments under FASB guidance, the effective portions of the gain or loss on the derivative instrument were initially recorded net of related tax effect in Accumulated Other Comprehensive Income, a component of Share Owners' Equity, and were subsequently reclassified into earnings in the period or periods during which the hedged transaction was recognized in earnings. The gain or loss associated with derivative instruments that were not designated as hedging instruments or that ceased to meet the criteria for hedging under FASB guidance was recognized in earnings. Kimball also held common stock warrants which provided the right to purchase a privately-held company's equity securities at a specified exercise price. Due to certain events and changes in circumstances that had adverse effects on the fair value of the investment in the privately-held company, we revalued the investment which resulted in a derivative loss on the stock warrants of less than $0.1 million during fiscal year 2014 and $0.9 million in fiscal year 2013. The stock warrants had no value at June 30, 2015 . See Note 11 - Fair Value of Notes to Consolidated Financial Statements for further information regarding the fair value of derivative assets and liabilities and Note 17 - Comprehensive Income of Notes to Consolidated Financial Statements for the amount and changes in derivative gains and losses deferred in Accumulated Other Comprehensive Income. Information on the location and amounts of derivative fair values in the Consolidated Balance Sheets and derivative gains and losses in the Consolidated Statements of Income are presented below. Fair Values of Derivative Instruments on the Consolidated Balance Sheets Asset Derivatives Liability Derivatives Fair Value As of Fair Value As of (Amounts in Thousands) Balance Sheet Location June 30 June 30 Balance Sheet Location June 30 June 30 Derivatives designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets $ ā $ 599 Accrued expenses $ ā $ 241 Derivatives not designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets ā 201 Accrued expenses ā 458 Total derivatives $ ā $ 800 $ ā $ 699 The Effect of Derivative Instruments on Other Comprehensive Income (Loss) June 30 (Amounts in Thousands) 2015 2014 2013 Amount of Pre-Tax Gain Recognized in Other Comprehensive Income (Loss) (OCI) on Derivatives (Effective Portion): Foreign exchange contracts $ 2,513 $ 73 $ 1,206 The Effect of Derivative Instruments on Consolidated Statements of Income (Amounts in Thousands) Fiscal Year Ended June 30 Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) 2015 2014 2013 Amount of Pre-Tax Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion): Foreign exchange contracts Income from Discontinued Operations, Net of Tax $ 1,484 $ (1,187 ) $ 2,139 Amount of Pre-Tax Gain or (Loss) Reclassified from Accumulated OCI into Income (Ineffective Portion): Foreign exchange contracts Income from Discontinued Operations, Net of Tax $ ā $ ā $ (3 ) Derivatives Not Designated as Hedging Instruments Amount of Pre-Tax Gain or (Loss) Recognized in Income on Derivatives: Foreign exchange contracts Income from Discontinued Operations, Net of Tax $ 740 $ (487 ) $ (322 ) Stock warrants Non-operating income, net ā (25 ) (885 ) Total $ 740 $ (512 ) $ (1,207 ) Total Derivative Pre-Tax Gain (Loss) Recognized in Income $ 2,224 $ (1,699 ) $ 929 |
Note 13. Investments
Note 13. Investments | 12 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | Investments Kimball maintains a self-directed supplemental employee retirement plan (āSERPā) in which executive employees are eligible to participate. The SERP utilizes a rabbi trust, and therefore assets in the SERP portfolio are subject to creditor claims in the event of bankruptcy. Kimball recognizes SERP investment assets on the Consolidated Balance Sheets at current fair value. A SERP liability of the same amount is recorded on the Consolidated Balance Sheets representing an obligation to distribute SERP funds to participants. The SERP investment assets are classified as trading, and accordingly, realized and unrealized gains and losses are recognized in income in the Other Income (Expense) category. Adjustments made to revalue the SERP liability are also recognized in income as selling and administrative expenses and offset valuation adjustments on SERP investment assets. Net unrealized holding gains (losses) from continuing operations for securities held at June 30, 2015 , 2014 , and 2013 were, in thousands, $(644) , $(72) , and $1,063 , respectively. SERP asset and liability balances were as follows: June 30 (Amounts in Thousands) 2015 2014 SERP investments - current asset $ 1,276 $ 8,812 SERP investments - other long-term asset 9,077 14,294 Total SERP investments $ 10,353 $ 23,106 SERP obligation - current liability $ 1,276 $ 8,812 SERP obligation - other long-term liability 9,077 14,294 Total SERP obligation $ 10,353 $ 23,106 The reduction in SERP investments and obligation from June 30, 2014 to June 30, 2015 was due primarily to the spin-off of Kimball Electronics on October 31, 2014. Kimball also held non-marketable equity securities of a privately-held company, which have no value at June 30, 2015 . Due to certain events and changes in circumstances that had adverse effects on the fair value of the investment in the privately-held company, we revalued the investment which resulted in impairment on the equity securities of $0.1 million in fiscal year 2014 and $1.0 million in fiscal year 2013. |
Note 14. Accrued Expenses
Note 14. Accrued Expenses | 12 Months Ended |
Jun. 30, 2015 | |
Accrued Expenses [Abstract] | |
Accrued Liabilities Disclosure | Accrued Expenses Accrued expenses consisted of: June 30 (Amounts in Thousands) 2015 2014 Compensation $ 21,824 $ 46,307 Selling 6,418 6,101 Employer retirement contribution 4,091 4,964 Taxes 2,933 8,187 Insurance 2,770 4,215 Restructuring 2,504 ā Other expenses 4,885 7,482 Total accrued expenses $ 45,425 $ 77,256 The reduction in compensation, employer retirement plan contribution, taxes, insurance, and other expenses, from June 30, 2014 to June 30, 2015 was due primarily to the spin-off of Kimball Electronics on October 31, 2014. |
Note 15. Geographic Information
Note 15. Geographic Information | 12 Months Ended |
Jun. 30, 2015 | |
Geographic Area Information [Abstract] | |
Geographic Information [Text Block] | Geographic Information The following geographic area data includes net sales from continuing operations based on the location where title transfers. Substantially all long-lived assets of the Companyās continuing operations were located in the United States for each of the three fiscal years ended June 30, 2015. Long-lived assets include property and equipment and other long-term assets such as software. Year Ended June 30 (Amounts in Thousands) 2015 2014 2013 Net Sales: United States $ 578,551 $ 530,087 $ 491,366 Other Foreign 22,317 13,730 8,639 Total Net Sales $ 600,868 $ 543,817 $ 500,005 |
Note 16. Earnings Per Share
Note 16. Earnings Per Share | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per share are computed using the two-class common stock method due to the dividend preference of Class B Common Stock which was in effect until the October 30, 2014 stock unification as further described in Note 10 - Common Stock . Basic earnings per share are based on the weighted average number of shares outstanding during the period. Diluted earnings per share are based on the weighted average number of shares outstanding plus the assumed issuance of common shares and related payment of assumed dividends for all potentially dilutive securities. Earnings per share of Class A and Class B Common Stock are as follows: EARNINGS PER SHARE FROM CONTINUING OPERATIONS Year Ended June 30, 2015 Year Ended June 30, 2014 Year Ended June 30, 2013 (Amounts in Thousands, Except for Per Share Data) Class A Class B Total Class A Class B Total Class A Class B Total Basic Earnings (Loss) Per Share from Continuing Operations: Dividends Declared $ 536 $ 7,169 $ 7,705 $ 1,437 $ 6,090 $ 7,527 $ 1,495 $ 5,955 $ 7,450 Undistributed Earnings (Loss) 287 3,151 3,438 (859 ) (3,249 ) (4,108 ) (3,172 ) (10,894 ) (14,066 ) Income (Loss) from Continuing Operations $ 823 $ 10,320 $ 11,143 $ 578 $ 2,841 $ 3,419 $ (1,677 ) $ (4,939 ) $ (6,616 ) Average Basic Shares Outstanding 3,231 35,414 38,645 8,026 30,378 38,404 8,584 29,479 38,063 Basic Earnings (Loss) Per Share from Continuing Operations $ 0.25 $ 0.29 $ 0.07 $ 0.09 $ (0.20 ) $ (0.17 ) Diluted Earnings (Loss) Per Share from Continuing Operations: Dividends Declared and Assumed Dividends on Dilutive Shares $ 536 $ 7,234 $ 7,770 $ 1,550 $ 6,091 $ 7,641 $ 1,495 $ 5,955 $ 7,450 Undistributed Earnings (Loss) 280 3,093 3,373 (936 ) (3,286 ) (4,222 ) (3,172 ) (10,894 ) (14,066 ) Income (Loss) from Continuing Operations $ 816 $ 10,327 $ 11,143 $ 614 $ 2,805 $ 3,419 $ (1,677 ) $ (4,939 ) $ (6,616 ) Average Diluted Shares Outstanding 3,231 35,740 38,971 8,652 30,385 39,037 8,584 29,479 38,063 Diluted Earnings (Loss) Per Share from Continuing Operations $ 0.25 $ 0.29 $ 0.07 $ 0.09 $ (0.20 ) $ (0.17 ) Reconciliation of Basic and Diluted EPS from Continuing Operations Calculations: Income (Loss) from Continuing Operations $ 823 $ 10,320 $ 11,143 $ 578 $ 2,841 $ 3,419 $ (1,677 ) $ (4,939 ) $ (6,616 ) Assumed Dividends Payable on Dilutive Shares ā 65 65 113 1 114 ā ā ā Increase (Reduction) in Undistributed Earnings (Loss) - allocated based on Class A and Class B shares (7 ) (58 ) (65 ) (77 ) (37 ) (114 ) ā ā ā Income (Loss) from Continuing Operations $ 816 $ 10,327 $ 11,143 $ 614 $ 2,805 $ 3,419 $ (1,677 ) $ (4,939 ) $ (6,616 ) Average Shares Outstanding for Basic EPS Calculation 3,231 35,414 38,645 8,026 30,378 38,404 8,584 29,479 38,063 Dilutive Effect of Average Outstanding Stock Awards ā 326 326 626 7 633 ā ā ā Average Shares Outstanding for Diluted EPS Calculation 3,231 35,740 38,971 8,652 30,385 39,037 8,584 29,479 38,063 EARNINGS PER SHARE FROM DISCONTINUED OPERATIONS Year Ended June 30, 2015 Year Ended June 30, 2014 Year Ended June 30, 2013 Class A Class B Class A Class B Class A Class B Basic Earnings Per Share $ 0.24 $ 0.24 $ 0.78 $ 0.79 $ 0.70 $ 0.70 Diluted Earnings Per Share $ 0.24 $ 0.23 $ 0.77 $ 0.77 $ 0.70 $ 0.70 EARNINGS PER SHARE (INCLUDING DISCONTINUED OPERATIONS) Year Ended June 30, 2015 Year Ended June 30, 2014 Year Ended June 30, 2013 (Amounts in Thousands, Except for Per Share Data) Class A Class B Total Class A Class B Total Class A Class B Total Basic Earnings Per Share: Dividends Declared $ 536 $ 7,169 $ 7,705 $ 1,437 $ 6,090 $ 7,527 $ 1,495 $ 5,955 $ 7,450 Undistributed Earnings 1,053 11,542 12,595 5,420 20,514 25,934 2,803 9,626 12,429 Net Income $ 1,589 $ 18,711 $ 20,300 $ 6,857 $ 26,604 $ 33,461 $ 4,298 $ 15,581 $ 19,879 Average Basic Shares Outstanding 3,231 35,414 38,645 8,026 30,378 38,404 8,584 29,479 38,063 Basic Earnings Per Share $ 0.49 $ 0.53 $ 0.85 $ 0.88 $ 0.50 $ 0.53 Diluted Earnings Per Share: Dividends Declared and Assumed Dividends on Dilutive Shares $ 536 $ 7,234 $ 7,770 $ 1,550 $ 6,091 $ 7,641 $ 1,495 $ 5,955 $ 7,450 Undistributed Earnings 1,039 11,491 12,530 5,723 20,097 25,820 2,803 9,626 12,429 Net Income $ 1,575 $ 18,725 $ 20,300 $ 7,273 $ 26,188 $ 33,461 $ 4,298 $ 15,581 $ 19,879 Average Diluted Shares Outstanding 3,231 35,740 38,971 8,652 30,385 39,037 8,584 29,479 38,063 Diluted Earnings Per Share $ 0.49 $ 0.52 $ 0.84 $ 0.86 $ 0.50 $ 0.53 In fiscal year 2013 , all of the 190,000 outstanding compensation awards were antidilutive and were excluded from the dilutive calculation. |
Note 17. Accumulated Other Comp
Note 17. Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Jun. 30, 2015 | |
Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note | Accumulated Other Comprehensive Income (Loss) During fiscal year 2015 and 2014 , the changes in the balances of each component of Accumulated Other Comprehensive Income (Loss), net of tax, were as follows: Postemployment Benefits (Amounts in Thousands) Foreign Currency Translation Adjustments Derivative Gain (Loss) Prior Service Costs Net Actuarial Gain (Loss) Accumulated Other Comprehensive Income (Loss) Balance at June 30, 2013 $ 855 $ (4,359 ) $ (292 ) $ 319 $ (3,477 ) Other comprehensive income (loss) before reclassifications 4,054 (13 ) ā 539 4,580 Reclassification to (earnings) loss ā 961 172 204 1,337 Net current-period other comprehensive income (loss) 4,054 948 172 743 5,917 Balance at June 30, 2014 $ 4,909 $ (3,411 ) $ (120 ) $ 1,062 $ 2,440 Other comprehensive income (loss) before reclassifications (6,070 ) 2,097 ā 539 (3,434 ) Reclassification to (earnings) loss ā (1,193 ) 112 (175 ) (1,256 ) Distribution to Kimball Electronics, Inc. 1,161 2,507 8 (197 ) 3,479 Net current-period other comprehensive income (loss) (4,909 ) 3,411 120 167 (1,211 ) Balance at June 30, 2015 $ ā $ ā $ ā $ 1,229 $ 1,229 The following reclassifications were made from Accumulated Other Comprehensive Income (Loss) to the Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income (Loss) Fiscal Year Ended Affected Line Item in the Consolidated Statements of Income June 30, (Amounts in Thousands) 2015 2014 Derivative Gain (Loss) (1) $ 1,193 $ (961 ) Income from Discontinued Operations, Net of Tax Postemployment Benefits: Amortization of Prior Service Costs (2) $ (111 ) $ (158 ) Cost of Sales (61 ) (86 ) Selling and Administrative Expenses 68 95 Benefit (Provision) for Income Taxes $ (104 ) $ (149 ) Income (Loss) from Continuing Operations $ (8 ) $ (23 ) Income from Discontinued Operations, Net of Tax Amortization of Actuarial Gain (Loss) (2) $ 159 $ (194 ) Cost of Sales 120 (91 ) Selling and Administrative Expenses (111 ) 111 Benefit (Provision) for Income Taxes $ 168 $ (174 ) Income (Loss) from Continuing Operations $ 7 $ (30 ) Income from Discontinued Operations, Net of Tax Total Reclassifications for the Period $ 64 $ (323 ) Income (Loss) from Continuing Operations 1,192 (1,014 ) Income from Discontinued Operations, Net of Tax $ 1,256 $ (1,337 ) Net Income Amounts in parentheses indicate reductions to income. (1) See Note 12 - Derivative Instruments of Notes to Consolidated Financial Statements for further information on derivative instruments. (2) See Note 7 - Employee Benefit Plans of Notes to Consolidated Financial Statements for further information on postemployment benefit plans. |
Note 18. Restructuring Expense
Note 18. Restructuring Expense | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring Expense [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring Expense We recognized pre-tax restructuring expense related to continuing operations of $5.3 million in fiscal year 2015 , and recognized no restructuring related to continuing operations in fiscal years 2014 and 2013 . We utilize available market prices and management estimates to determine the fair value of impaired fixed assets. Restructuring charges related to continuing operations are included in the Restructuring Expense line item on our Consolidated Statements of Income. Capacity Utilization Restructuring Plan: In November 2014, we announced a capacity utilization restructuring plan which includes the consolidation of our metal fabrication production from an operation located in Post Falls, Idaho, into existing production facilities in Indiana, and the reduction of our Company plane fleet from two jets to one. Key factors in the decision to consolidate the Post Falls operation into the Indiana facilities include the improvement of customer delivery, supply chain dynamics, and transportation costs. The transfer of work involves the start-up of metal fabrication capabilities in a Company-owned facility, along with the transfer of certain assembly operations into two additional Company-owned facilities, all existing locations in southern Indiana. The manufacturing capacity realignment will be carefully managed to mitigate customer disruptions. The consolidation activities began immediately after the announcement in November 2014, and we are actively marketing for sale the Post Falls, Idaho facility. We expect to incur approximately $3 million for future capital investments to support the transfer of production to Indiana. No changes in operating income are anticipated until the later quarters of the transfer of work. When fully implemented by September 2016, we anticipate pre-tax savings of approximately $5 million per year thereafter. The reduction of our plane fleet from two jets to one reduces our cost structure while aligning the plane fleet size with our needs following the spin-off of Kimball Electronics on October 31, 2014. Previously, one of our jets was used primarily for the successful strategy of transporting customers to visit our showrooms, offices, research and development center, and manufacturing locations, while the remaining jet was used primarily for management travel. The plane used primarily for management travel was sold in the third quarter of fiscal year 2015. The sale of the plane resulted in a $0.2 million pre-tax gain in the third quarter of fiscal year 2015 which partially offset the impairment charge of $1.1 million recorded in the second quarter of fiscal year 2015. As a result of the aircraft fleet reduction, we expect to realize annual pre-tax savings of $0.8 million . In regards to the remaining jet, we believe that our location in rural Jasper, Indiana and the location of our manufacturing locations in small towns away from major metropolitan areas necessitates the need for the remaining jet to efficiently transport customers. We currently estimate that the pre-tax restructuring charges will be approximately $9.9 million , of which $5.3 million was recorded in fiscal year 2015 with the remainder expected to be incurred over the remaining anticipated transition period. The restructuring charges are expected to consist of approximately $6.0 million of transition, training, and other employee costs, $2.9 million of plant closure and other exit costs, and $1.0 million of non-cash asset impairment. Approximately 90% of the total cost estimate is expected to be cash expense. Summary of Restructuring Plan: Accrued June 30, 2014 Fiscal Year Ended June 30, 2015 Total Charges Incurred Since Plan Announcement Total Expected Plan Costs (Amounts in Thousands) Amounts Charged Cash Amounts Charged Non-cash Amounts Utilized/ Cash Paid Accrued June 30, 2015 (1) Capacity Realignment and Post Falls, Idaho Exit Transition and Other Employee Costs $ ā $ 2,657 $ ā $ (44 ) $ 2,613 $ 2,657 $ 5,797 Asset Write-downs ā ā 131 (131 ) ā 131 182 Plant Closure and Other Exit Costs ā 1,456 ā (1,456 ) ā 1,456 2,912 Total $ ā $ 4,113 $ 131 $ (1,631 ) $ 2,613 $ 4,244 $ 8,891 Plane Fleet Reduction Transition and Other Employee Costs $ ā $ 224 $ ā $ (224 ) $ ā $ 224 $ 224 Asset Write-downs ā ā 822 (822 ) ā 822 822 Total $ ā $ 224 $ 822 $ (1,046 ) $ ā $ 1,046 $ 1,046 Total Restructuring Plan $ ā $ 4,337 $ 953 $ (2,677 ) $ 2,613 $ 5,290 $ 9,937 (1) The accrued restructuring balance at June 30, 2015 includes $2.5 million recorded in current liabilities and $0.1 million recorded in other long-term liabilities. Discontinued Restructuring Plan Activities: Restructuring activities related to the EMS segment are included in the discontinued operations line item on our Consolidated Statements of Income, and totaled $0.4 million in both fiscal years 2014 and 2013 , and we had no restructuring expense related to discontinued operations in fiscal year 2015 . These discontinued operations restructuring plans were completed prior to fiscal year 2013 but continued to incur miscellaneous exit costs related to facility clean up or market value adjustments. These completed restructuring plans include the European Consolidation, Fremont, and Gaylord plans which were all related to the discontinued EMS segment. |
Note 19. Variable Interest Enti
Note 19. Variable Interest Entities | 12 Months Ended |
Jun. 30, 2015 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities Kimball's involvement with a variable interest entity (āVIEā) is limited to a situation in which we are not the primary beneficiary as we lack the power to direct the activities that most significantly impact the VIE's economic performance. Thus, consolidation is not required. Our involvement with the VIE is limited to a note receivable related to the sale of an Indiana facility. The carrying value of the note receivable, net of a $0.5 million allowance, was $0.9 million as of both June 30, 2015 and June 30, 2014 . For both periods, the short-term portion of the carrying value was included on the Receivables line and the long-term portion of the carrying value was included on the Other Assets line of our Consolidated Balance Sheets. We have no obligation to provide additional funding to the VIE, and thus our exposure and risk of loss related to the VIE is limited to the carrying value of the note receivable. Kimball did not provide additional financial support to the VIE during the fiscal year ended June 30, 2015 . |
Note 20. Credit Quality and All
Note 20. Credit Quality and Allowance for Credit Losses of Notes Receivable | 12 Months Ended |
Jun. 30, 2015 | |
Credit Quality and Allowance for Credit Losses of Notes Receivable [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure | Credit Quality and Allowance for Credit Losses of Notes Receivable Kimball monitors credit quality and associated risks of notes receivable on an individual basis based on criteria such as financial stability of the party and collection experience in conjunction with general economic and market conditions. We hold collateral for the note receivable from the sale of an Indiana facility thereby mitigating the risk of loss. As of June 30, 2015 and 2014 , Kimball had no material past due outstanding notes receivable. As of June 30, 2015 As of June 30, 2014 (Amounts in Thousands) Unpaid Balance Related Allowance Receivable Net of Allowance Unpaid Balance Related Allowance Receivable Net of Allowance Note Receivable from Sale of Indiana Facility $ 1,347 $ 489 $ 858 $ 1,392 $ 489 $ 903 Other Notes Receivable 439 149 290 223 149 74 Total $ 1,786 $ 638 $ 1,148 $ 1,615 $ 638 $ 977 |
Note 21. Quarterly Financial In
Note 21. Quarterly Financial Information (Unaudited) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information (Unaudited) [Abstract] | |
Quarterly Financial Information | Quarterly Financial Information (Unaudited) Three Months Ended (Amounts in Thousands, Except for Per Share Data) September 30 December 31 March 31 June 30 Fiscal Year 2015: Net Sales (1) $ 144,446 $ 151,418 $ 145,943 $ 159,061 Gross Profit (1) 47,183 46,596 44,007 51,079 Restructuring Expense (1) ā 3,335 388 1,567 Income (Loss) From Continuing Operations 1,517 (1 ) 4,882 4,745 Net Income 7,996 2,677 4,882 4,745 Basic Earnings (Loss) Per Share From Continuing Operations: Class A $ 0.04 $ (0.02 ) $ 0.12 $ 0.11 Class B $ 0.04 $ ā $ 0.13 $ 0.12 Diluted Earnings (Loss) Per Share From Continuing Operations: Class A $ 0.04 $ (0.02 ) $ 0.12 $ 0.11 Class B $ 0.04 $ ā $ 0.13 $ 0.12 Basic Earnings Per Share: Class A $ 0.20 $ 0.05 $ 0.12 $ 0.11 Class B $ 0.21 $ 0.07 $ 0.13 $ 0.12 Diluted Earnings Per Share: Class A $ 0.20 $ 0.05 $ 0.12 $ 0.11 Class B $ 0.21 $ 0.07 $ 0.13 $ 0.12 Fiscal Year 2014: Net Sales (1) $ 141,802 $ 139,049 $ 125,108 $ 137,858 Gross Profit (1) 42,246 45,806 36,617 42,056 Income (Loss) From Continuing Operations 1,009 2,088 (37 ) 359 Net Income 9,183 9,222 7,208 7,848 Basic Earnings (Loss) Per Share From Continuing Operations: Class A $ 0.02 $ 0.05 $ (0.01 ) $ 0.01 Class B $ 0.03 $ 0.06 $ ā $ 0.01 Diluted Earnings (Loss) Per Share From Continuing Operations: Class A $ 0.02 $ 0.05 $ (0.01 ) $ 0.01 Class B $ 0.03 $ 0.06 $ ā $ 0.01 Basic Earnings Per Share: Class A $ 0.24 $ 0.24 $ 0.18 $ 0.20 Class B $ 0.24 $ 0.24 $ 0.19 $ 0.21 Diluted Earnings Per Share: Class A $ 0.23 $ 0.23 $ 0.18 $ 0.20 Class B $ 0.24 $ 0.24 $ 0.19 $ 0.20 (1) Net sales, gross profit, and restructuring expense are from continuing operations. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | Schedule II. - Valuation and Qualifying Accounts Description Balance at Beginning of Year Additions (Reductions) to Expense Adjustments to Other Accounts Write-offs and Recoveries Impact of Spin-Off Balance at End of Year (Amounts in Thousands) Year Ended June 30, 2015 Valuation Allowances: Short-Term Receivables $ 2,345 $ 198 $ (65 ) $ (604 ) $ (352 ) $ 1,522 Long-Term Receivables $ 628 $ (10 ) $ ā $ ā $ ā $ 618 Deferred Tax Asset $ 787 $ ā $ ā $ (100 ) $ ā $ 687 Year Ended June 30, 2014 Valuation Allowances: Short-Term Receivables $ 2,791 $ (20 ) $ (149 ) $ (277 ) $ ā $ 2,345 Long-Term Notes Receivable $ ā $ 628 $ ā $ ā $ ā $ 628 Deferred Tax Asset $ 2,315 $ ā $ ā $ (1,528 ) $ ā $ 787 Year Ended June 30, 2013 Valuation Allowances: Short-Term Receivables $ 1,367 $ 1,663 $ 15 $ (254 ) $ ā $ 2,791 Deferred Tax Asset $ 1,911 $ 408 $ ā $ (4 ) $ ā $ 2,315 |
Note 1. Summary of Significan31
Note 1. Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated in the consolidation. |
Operating Segments | Operating Segments: We sell a portfolio of furniture products and services under three brands: National, Kimball Office, and Kimball Hospitality. We consider each of the three brands to be operating segments which aggregate into one reportable segment. The brands operate within six market verticals, selling to similar types of customers. Our products and services are similar in nature and utilize similar production and distribution processes. Our three brands share similar long-term economic characteristics. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (āUS GAAPā) requires management to make estimates and assumptions that affect the reported amounts included in the consolidated financial statements and related note disclosures. While efforts are made to assure estimates used are reasonably accurate based on management's knowledge of current events, actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition: We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Delivery is not considered to have occurred until the title and the risk of loss passes to the customer according to the terms of the contract. Title and risk of loss are transferred upon shipment to or receipt at our customersā locations, or in limited circumstances, as determined by other specific sales terms of the transaction. Shipping and handling fees billed to customers are recorded as sales while the related shipping and handling costs are included in cost of goods sold. We recognize sales net of applicable sales tax. Based on estimated product returns and price concessions, a reserve for returns and allowances is recorded at the time of the sale, resulting in a reduction of revenue. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash equivalents consist primarily of highly liquid investments with original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist of bank accounts and money market funds. Bank accounts are stated at cost, which approximates fair value, and money market funds are stated at fair value. |
Notes Receivable and Trade Accounts Receivable | Notes Receivable and Trade Accounts Receivable: Kimball's notes receivable and trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. We determine on a case-by-case basis the cessation of accruing interest, the resumption of accruing interest, the method of recording payments received on nonaccrual receivables, and the delinquency status for our limited number of notes receivable. Our policy for estimating the allowance for credit losses on trade accounts receivable and notes receivable includes analysis of such items as aging, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to determine the final allowance for credit losses on the trade accounts receivable and notes receivable. Trade accounts receivable and notes receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Our limited amount of notes receivable allows management to monitor the risks, credit quality indicators, collectability, and probability of impairment on an individual basis. Adjustments to the allowance for credit losses are recorded in selling and administrative expenses. Customary terms require payment within 30 days , with terms beyond 30 days being considered extended. |
Inventories | Inventories: Inventories are stated at the lower of cost or market value. Cost includes material, labor, and applicable manufacturing overhead. Costs associated with underutilization of capacity are expensed as incurred. The last-in, first-out (āLIFOā) method was used for approximately 91% of consolidated inventories at June 30, 2015 . As of June 30, 2014 , prior to the spin-off of Kimball Electronics, inventories valued using the lower of LIFO cost or market value were approximately 16% of consolidated inventories. The remaining inventories were valued using the first-in, first-out (āFIFOā) method. Inventories are adjusted for excess and obsolete inventory. Evaluation of excess inventory includes such factors as anticipated usage, inventory turnover, inventory levels, and product demand levels. Factors considered when evaluating obsolescence include the age of on-hand inventory and reduction in value due to damage, use as showroom samples, design changes, or cessation of product lines. |
Property, Equipment, and Depreciation | Property, Equipment, and Depreciation: Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful life of the assets using the straight-line method for financial reporting purposes. Leasehold improvements are amortized on a straight-line basis over the shorter of the useful life of the improvement or the term of the lease. Major maintenance activities and improvements are capitalized; other maintenance, repairs, and minor renewals are expensed. Depreciation and expenses for maintenance, repairs and minor renewals are included in both the Cost of Sales line and the Selling and Administrative Expense line of the Consolidated Statements of Income. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: We perform reviews for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment is recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. When an impairment is identified, the carrying amount of the asset is reduced to its estimated fair value. Assets to be disposed of are recorded at the lower of net book value or fair market value less cost to sell at the date management commits to a plan of disposal. |
Impairment or Disposal of Intangible Assets | Intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. |
Other Intangible Assets | Internal-use software is stated at cost less accumulated amortization and is amortized using the straight-line method. During the software application development stage, capitalized costs include external consulting costs, cost of software licenses, and internal payroll and payroll-related costs for employees who are directly associated with a software project. Upgrades and enhancements are capitalized if they result in added functionality which enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion, and business process reengineering costs are expensed in the period in which they are incurred. Product rights to produce and sell certain products are amortized on a straight-line basis over their estimated useful lives, and capitalized customer relationships were amortized on estimated attrition rate of customers. We have no intangible assets with indefinite useful lives which are not subject to amortization. |
Research and Development | Research and Development: The costs of research and development are expensed as incurred. |
Advertising | Advertising: Advertising costs are expensed as incurred. |
Insurance and Self-insurance | Insurance and Self-insurance: We are self-insured up to certain limits for auto and general liability, workers' compensation, and certain employee health benefits including medical, short-term disability, and dental, with the related liabilities included in the accompanying financial statements. Our policy is to estimate reserves based upon a number of factors including known claims, estimated incurred but not reported claims, and other analyses, which are based on historical information along with certain assumptions about future events. Insurance benefits are not provided to retired employees. |
Income Taxes | Income Taxes: Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. These assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse. We evaluate the recoverability of deferred tax assets each quarter by assessing the likelihood of future taxable income and available tax planning strategies that could be implemented to realize our deferred tax assets. If recovery is not likely, we provide a valuation allowance based on our best estimate of future taxable income in the various taxing jurisdictions and the amount of deferred taxes ultimately realizable. Future events could change management's assessment. |
Income Tax Uncertainties | We operate within multiple taxing jurisdictions and are subject to tax audits in these jurisdictions. These audits can involve complex uncertain tax positions, which may require an extended period of time to resolve. A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. We maintain a liability for uncertain income tax and other tax positions, including accrued interest and penalties on those positions. As tax positions are effectively settled, the tax liability is adjusted accordingly. We recognize interest and penalties related to unrecognized tax benefits in the Provision (Benefit) for Income Taxes line of the Consolidated Statements of Income. |
Concentrations of Credit Risk | Concentrations of Credit Risk: Certain business and credit risks are inherent in our business. Additionally, we currently have a note receivable related to the sale of an Indiana facility and other miscellaneous notes receivable. |
Off-Balance-Sheet Risk | Off-Balance Sheet Risk: Our off-balance sheet arrangements are limited to standby letters of credit and operating leases entered into in the normal course of business as described in Note 5 - Commitments and Contingent Liabilities of Notes to Consolidated Financial Statements. |
Non-operating Income and Expense | Non-operating Income and Expense: Non-operating income and expense include the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (āSERPā) investments, foreign currency rate movements, investment gain or loss, non-production rent income, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain or loss on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. |
Foreign Currency Translation | Foreign Currency Translation: Kimball's continuing foreign operation, a non-manufacturing office in China, uses the Chinese Yuan Renminbi as its functional currency. The translation of functional currency statements to U.S. dollar statements uses end-of-period exchange rates for assets and liabilities, weighted average exchange rates for revenue and expenses, and historical rates for equity. The resulting currency translation adjustment is recorded in Accumulated Other Comprehensive Income, as a component of Share Owners' Equity. Gains and losses from foreign currency remeasurement into EUR and USD functional currencies related to our former EMS segment are included in the Income from Discontinued Operations, Net of Tax line item of the Consolidated Statements of Income. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities: Our former EMS segment, classified as a discontinued operation, operated internationally and utilized derivative instruments to hedge the exposure to foreign currency exchange rate fluctuations. See Note 12 - Derivative Instruments of Notes to Consolidated Financial Statements for more information on derivative instruments and hedging activities. |
Stock-Based Compensation | Stock-Based Compensation: As described in Note 8 - Stock Compensation Plans of Notes to Consolidated Financial Statements, Kimball maintains a stock-based compensation plan which allows for the issuance of restricted stock, restricted share units, unrestricted share grants, incentive stock options, nonqualified stock options, performance shares, performance units, and stock appreciation rights for grant to officers and other key employees and to members of the Board of Directors who are not employees. We recognize the cost resulting from share-based payment transactions using a fair-value-based method. The estimated fair value of outstanding performance shares and restricted share units is based on the stock price at the date of the grant. For performance shares, the price is reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding performance share awards. The estimated fair value of outstanding relative total shareholder return performance units (āRTSRā) is based on the grant date fair value of RTSR awards using a Monte Carlo simulation which includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. Stock-based compensation expense is recognized for the portion of the awards that are ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In July 2015, the Financial Accounting Standards Board (āFASBā) issued guidance on simplifying the measurement of inventory which applies to inventory that is measured using first-in, first-out (āFIFOā) or average cost. Inventory within the scope of this update is required to be measured at the lower of cost or net realizable value, which is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The guidance does not impact inventory measured on a last-in, last-out (āLIFOā) basis. The standards update is effective prospectively for our first quarter fiscal year 2018 financial statements with early adoption permitted. We do not expect the adoption to have a material effect on our consolidated financial statements. In April 2015, the FASB issued guidance that requires debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability and further clarification guidance allows the cost of securing a revolving line of credit to be recorded as a deferred asset regardless of whether a balance is outstanding. This guidance is effective for our first quarter fiscal year 2017 financial statements. We currently comply with this method thus we do not expect the adoption to have a material effect on our consolidated financial statements. In April 2015, the FASB issued guidance on customerās accounting for cloud computing fees and provided criteria for customers in a cloud computing arrangement to use to determine whether the arrangement includes a license of software. The guidance clarifies that a software license included in a cloud computing arrangement should be accounted for consistent with the acquisition of other software licenses, whereas a cloud computing arrangement that does not include a software license should be accounted for as a service contract. The guidance is effective for our first quarter of fiscal year 2017 financial statements, and allows for the use of either a prospective or retrospective transition method. We have not yet selected a transition method nor determined the effect of this guidance on our consolidated financial statements. In June 2014, the FASB provided explicit guidance on how to account for share-based payments granted to employees in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The guidance will be applied prospectively for our first quarter fiscal year 2017 financial statements. We do not expect the adoption to have a material effect on our consolidated financial statements. In May 2014, the FASB issued guidance on the recognition of revenue from contracts with customers. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. To achieve this core principle, the guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance addresses several areas including transfer of control, contracts with multiple performance obligations, and costs to obtain and fulfill contracts. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB decided to defer the effective date for this new revenue standard by one year, which will make the guidance effective for our first quarter fiscal year 2019 financial statements using either of two acceptable adoption methods: (i) retrospective adoption to each prior reporting period presented with the option to elect certain practical expedients; or (ii) adoption with the cumulative effect of initially applying the guidance recognized at the date of initial application and providing certain additional disclosures. We have not yet selected a transition method nor determined the effect of this guidance on our consolidated financial statements. In April 2014, the FASB issued guidance on reporting discontinued operations and disclosures of disposals of components of an entity. Under the new guidance, a disposal that represents a strategic shift that has or will have a major effect on an entity's operations and financial results is a discontinued operation. The new guidance requires expanded disclosures that will provide more information about the assets, liabilities, income, and expenses of discontinued operations, and also requires disclosures of significant disposals that do not qualify for discontinued operations reporting. The guidance is effective prospectively for disposals or components of our business classified as held for sale during the first quarter of fiscal year 2016. We do not expect the adoption of this guidance to have a material effect on our financial results, although it may require additional disclosures for significant disposals in the future. In July 2013, the FASB issued guidance to eliminate the diversity in practice related to the financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The guidance was effective prospectively for our first quarter fiscal year 2015 financial statements. The adoption did not have a material effect on our consolidated financial statements. |
Note 5. Commitments and Conti32
Note 5. Commitments and Contingent Liabilities (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingent Liabilities [Abstract] | |
Product Warranties | We estimate product warranty liability at the time of sale based on historical repair or replacement cost trends in conjunction with the length of the warranty offered. Management refines the warranty liability periodically based on changes in historical cost trends and in certain cases where specific warranty issues become known. |
Note 7. Employee Benefit Plans
Note 7. Employee Benefit Plans (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Employee Benefit Plans [Abstract] | |
Postemployment Benefit Plans | Prior service cost was amortized on a straight-line basis over the average remaining service period of employees that were active at the time of the plan initiation and actuarial (gain) loss is amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits under the plan. |
Note 11. Fair Value (Policies)
Note 11. Fair Value (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value [Abstract] | |
Fair Value | Kimball categorizes assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas level 3 generally requires significant management judgment. The three levels are defined as follows: ā¢ Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. ā¢ Level 2: Observable inputs other than those included in level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. ā¢ Level 3: Unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability. Our policy is to recognize transfers between these levels as of the end of each quarterly reporting period. There were no transfers between these levels during fiscal years 2015 and 2014 . Financial Instruments Recognized at Fair Value: The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents 1 Market - Quoted market prices Derivative Assets: Foreign exchange contracts 2 Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates, considering counterparty credit risk Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Derivative Liabilities: Foreign exchange contracts 2 Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates adjusted for Kimball's non-performance risk |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets | Non-Recurring Fair Value Measurements: Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments when events or circumstances indicate a significant adverse effect on the fair value of the asset. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. Non-recurring fair value adjustment Level Valuation Technique/Inputs Used Impairment of assets held for sale (real estate and property & equipment) 3 Market - Quoted market prices for similar assets sold, adjusted for features specific to the asset |
Fair Value of Financial Instruments Not Carried at Fair Value | Financial Instruments Not Carried At Fair Value: Financial instruments that are not reflected in the Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer's non-performance risk Long-term debt (carried at amortized cost) 3 Income - Price estimated using a discounted cash flow analysis based on quoted long-term debt market rates, taking into account Kimball's non-performance risk The carrying value of our cash deposit accounts, trade accounts receivable, trade accounts payable, and dividends payable approximates fair value due to the relatively short maturity and immaterial non-performance risk. |
Note 12. Derivative Instrumen35
Note 12. Derivative Instruments (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments [Abstract] | |
Derivatives, Hedge Discontinuances, Anticipated Transactions [Policy Text Block] | In limited cases due to unexpected changes in forecasted transactions, cash flow hedges may have ceased to meet the criteria to be designated as cash flow hedges. Depending on the type of exposure hedged, either a derivative contract in the opposite position of the undesignated hedge may have been purchased or the hedge may have been retained until it matured if the hedge had continued to provide an adequate offset in earnings against the currency revaluation impact of foreign currency denominated liabilities. |
Derivatives, Reporting of Derivative Activity [Policy Text Block] | the fair value of outstanding derivative instruments was recognized on the balance sheet as a derivative asset or liability. When derivatives were settled with the counterparty, the derivative asset or liability was relieved and cash flow was impacted for the net settlement. For derivative instruments that met the criteria of hedging instruments under FASB guidance, the effective portions of the gain or loss on the derivative instrument were initially recorded net of related tax effect in Accumulated Other Comprehensive Income, a component of Share Owners' Equity, and were subsequently reclassified into earnings in the period or periods during which the hedged transaction was recognized in earnings. The gain or loss associated with derivative instruments that were not designated as hedging instruments or that ceased to meet the criteria for hedging under FASB guidance was recognized in earnings. |
Note 18. Restructuring Expense
Note 18. Restructuring Expense (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring Expense [Abstract] | |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy | We utilize available market prices and management estimates to determine the fair value of impaired fixed assets. Restructuring charges related to continuing operations are included in the Restructuring Expense line item on our Consolidated Statements of Income. |
Note 1. Summary of Significan37
Note 1. Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Other Intangible Assets | A summary of other intangible assets subject to amortization is as follows: June 30, 2015 June 30, 2014 (Amounts in Thousands) Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Capitalized Software $ 37,744 $ 35,081 $ 2,663 $ 64,564 $ 60,637 $ 3,927 Product Rights 372 366 6 372 294 78 Customer Relationships ā ā ā 1,167 981 186 Other Intangible Assets $ 38,116 $ 35,447 $ 2,669 $ 66,103 $ 61,912 $ 4,191 The decline in capitalized software and customer relationships is primarily the result of the spin-off of our EMS segment. |
Note 2. Spin-Off Transaction (T
Note 2. Spin-Off Transaction (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Balance Sheet [Table Text Block] | The following is a summary of the assets and liabilities distributed to Kimball Electronics on the Distribution Date or shortly thereafter: (Amounts in Millions) Assets: Cash and cash equivalents $ 63 Receivables 133 Inventories 124 Prepaid expenses and other current assets 19 Net property and equipment 98 Goodwill 3 Net other intangible assets 1 Other long-term assets 15 $ 456 Liabilities: Accounts payable $ 125 Accrued expenses 22 Other long-term liabilities 9 $ 156 Net Assets Distributed to Kimball Electronics, Inc. $ 300 |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | Summarized financial results of discontinued operations through the October 31, 2014 spin-off date, were as follows: Fiscal Year Ended June 30 (Amounts in Thousands, Except Per Share Data) 2015 2014 2013 Net Sales $ 275,551 $ 741,530 $ 703,129 Income Before Taxes on Income 13,098 38,961 33,659 Provision for Income Taxes 3,941 8,919 7,164 Income from Discontinued Operations, Net of Tax $ 9,157 $ 30,042 $ 26,495 Income From Discontinued Operations per Class B Diluted Share $ 0.23 $ 0.77 $ 0.70 |
Note 3. Inventories (Tables)
Note 3. Inventories (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Inventories [Abstract] | |
Schedule of Inventory, Current | Inventory components at June 30 were as follows: (Amounts in Thousands) 2015 2014 Finished products $ 26,634 $ 37,373 Work-in-process 1,952 13,808 Raw materials 23,201 103,083 Total FIFO inventory $ 51,787 $ 154,264 LIFO reserve (14,153 ) (13,789 ) Total inventory $ 37,634 $ 140,475 The reduction in FIFO inventory from June 30, 2014 to June 30, 2015 was due primarily to the spin-off of Kimball Electronics on October 31, 2014. |
Note 4. Property and Equipment
Note 4. Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Property and Equipment [Abstract] | |
Components of Property and Equipment | Major classes of property and equipment at June 30 consist of the following: (Amounts in Thousands) 2015 2014 Land $ 2,849 $ 12,308 Buildings and improvements 124,709 183,735 Machinery and equipment 159,648 341,525 Construction-in-progress 7,457 9,758 Total $ 294,663 $ 547,326 Less: Accumulated depreciation (197,500 ) (358,493 ) Property and equipment, net $ 97,163 $ 188,833 The reduction in property and equipment from June 30, 2014 to June 30, 2015 was due primarily to the spin-off of Kimball Electronics on October 31, 2014. |
Property, Plant and Equipment | The useful lives used in computing depreciation are based on estimated service lives for classes of property, as follows: Years Buildings and improvements 5 to 50 Machinery and equipment 2 to 20 Leasehold improvements Lesser of Useful Life or Term of Lease |
Note 5. Commitments and Conti41
Note 5. Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingent Liabilities [Abstract] | |
Schedule of Product Warranty Liability | Changes in the product warranty accrual during fiscal years 2015 , 2014 , and 2013 were as follows: (Amounts in Thousands) 2015 2014 2013 Product Warranty Liability at the beginning of the year $ 3,221 $ 2,384 $ 2,251 Additions to warranty accrual (including changes in estimates) 880 2,883 1,040 Settlements made (in cash or in kind) (927 ) (2,046 ) (907 ) Distribution to Kimball Electronics, Inc. (910 ) ā ā Product Warranty Liability at the end of the year $ 2,264 $ 3,221 $ 2,384 |
Note 6. Long-Term Debt and Cr42
Note 6. Long-Term Debt and Credit Facilities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Long-Term Debt and Credit Facility [Abstract] | |
Schedule of Line of Credit Facilities | Credit facilities consisted of the following: Availability to Borrow at Borrowings Outstanding at Borrowings Outstanding at (Amounts in Millions) June 30, 2015 June 30, 2015 June 30, 2014 Primary revolving credit facility (1) $ 29.0 $ ā $ ā Former EMS segment overdraft credit facilities (2) ā ā ā Total $ 29.0 $ ā $ ā (1) In connection with the spin-off, on October 31, 2014 Kimball entered into a new credit facility. The new credit agreement, which replaced a previously existing primary credit facility, has a maturity date of October 31, 2019 and allows for up to $30 million in borrowings, with an option to increase the amount available for borrowing to $55 million at the Company's request, subject to participating banks' consent. At June 30, 2015 , we had $1.0 million in letters of credit outstanding, which reduced our borrowing capacity on the credit facility. The revolving loans under the Credit Agreement may consist of, at the Company's election, advances in U.S. dollars or advances in any other currency that is agreed to by the lenders. The proceeds of the revolving loans are to be used for general corporate purposes of the Company including acquisitions. A portion of the credit facility, not to exceed $10 million of the principal amount, will be available for the issuance of letters of credit. A commitment fee is payable on the unused portion of the credit facility which was immaterial to our operating results for fiscal year 2015. The commitment fee on the unused portion of principal amount of the credit facility is payable at a rate that ranges from 20.0 to 25.0 basis points per annum as determined by the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA. The interest rate is dependent on the type of borrowings and will be one of the following two options: ā¢ The adjusted London Interbank Offered Rate (āAdjusted LIBO Rateā as defined in the Credit Agreement) in effect two business days prior to the advance (adjusted upwards to reflect bank reserve costs) for such interest period, plus the Eurocurrency Loans margin which can range from 125.0 to 175.0 basis points based on the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA; or ā¢ The Alternate Base Rate, which is defined as the highest of the fluctuating rate per annum equal to the higher of a. JPMorgan's prime rate; b. 1% per annum above the Adjusted LIBO rate; or c. 1/2% per annum above the Federal funds rate; plus the ABR Loans spread which can range from 25.0 to 75.0 basis points based on the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA. The Company's financial covenants under the Credit Agreement require: ā¢ An adjusted leverage ratio of (a) consolidated total indebtedness minus unencumbered U.S. cash on hand in the U.S. in excess of $15,000,000 to (b) consolidated EBITDA, determined as of the end of each of its fiscal quarters for the then most recently ended four fiscal quarters, to not be greater than 3.0 to 1.0 , and ā¢ A fixed charge coverage ratio of (a) the sum of (i) consolidated EBITDA, minus (ii) 50% of depreciation expense, minus (iii) taxes paid, minus (iv) dividends and distributions paid, to (b) the sum of (i) scheduled principal payments on indebtedness due and/or paid, plus (ii) interest expense, calculated on a consolidated basis in accordance with GAAP, determined as of the end of each of its fiscal quarters for the trailing four fiscal quarters then ending, to not be less than 1.10 to 1.00 . Prior to the October 31, 2014 spin-off, Kimball maintained a primary revolving credit facility which provided for up to $75 million in borrowings. (2) Our former EMS segment, classified as a discontinued operation, also maintained foreign credit facilities which were available to cover bank overdrafts. Bank overdrafts may have been deemed necessary to satisfy short-term cash needs rather than funding from intercompany sources. |
Note 7. Employee Benefit Plan43
Note 7. Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Employee Benefit Plans [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | June 30 (Amounts in Thousands) 2015 2014 Changes and Components of Benefit Obligation: Benefit obligation at beginning of year $ 5,350 $ 5,579 Service cost 645 955 Interest cost 96 134 Actuarial (gain) loss for the period (895 ) (899 ) Benefits paid (168 ) (419 ) Distribution to Kimball Electronics, Inc. (2,173 ) ā Benefit obligation at end of year $ 2,855 $ 5,350 Balance in current liabilities $ 501 $ 939 Balance in noncurrent liabilities 2,354 4,411 Total benefit obligation recognized in the Consolidated Balance Sheets $ 2,855 $ 5,350 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | June 30 (Amounts in Thousands) 2015 2014 Changes and Components in Accumulated Other Comprehensive Income (Loss) (before tax): Accumulated Other Comprehensive Income (Loss) at beginning of year $ (1,567 ) $ (44 ) Change in unrecognized prior service cost (185 ) (286 ) Net change in unrecognized actuarial (gain) loss (603 ) (1,237 ) Distribution to Kimball Electronics, Inc. 344 ā Accumulated Other Comprehensive Income (Loss) at end of year $ (2,011 ) $ (1,567 ) Balance in unrecognized prior service cost $ ā $ 199 Balance in unrecognized actuarial (gain) loss (2,011 ) (1,766 ) Total Accumulated Other Comprehensive Income (Loss) recognized in Share Owners' Equity $ (2,011 ) $ (1,567 ) |
Schedule of Net Benefit Costs | (Amounts in Thousands) Year Ended June 30 Components of Net Periodic Benefit Cost (before tax): 2015 2014 2013 Service cost $ 645 $ 955 $ 825 Interest cost 96 134 179 Amortization of prior service cost 185 286 286 Amortization of actuarial (gain) loss (292 ) 338 344 Net periodic benefit cost ā Total cost $ 634 $ 1,713 $ 1,634 Less: Discontinued operations 81 343 321 Net periodic benefit cost ā Continuing operations $ 553 $ 1,370 $ 1,313 |
Severance Plan Assumptions, Year End [Table Text Block] | Assumptions used to determine fiscal year end benefit obligations are as follows: 2015 2014 Discount Rate 2.8% 2.3% Rate of Compensation Increase 3.0% 3.0% |
Severance Plan Assumptions, Weighted Average | Weighted average assumptions used to determine fiscal year net periodic benefit costs are as follows: 2015 2014 2013 Discount Rate 2.6% 2.5% 3.8% Rate of Compensation Increase 3.0% 3.0% 3.8% |
Note 8. Stock Compensation Pl44
Note 8. Stock Compensation Plans (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Stock Compensation Plans [Abstract] | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest | A summary of performance share activity during fiscal year 2015 is presented below: Number of Shares Weighted Average Grant Date Fair Value Performance Shares outstanding at July 1, 2014 1,974,863 $10.92 Granted ā $ā Vested (649,524 ) $11.07 Forfeited (559,081 ) $15.90 Impact of Spin-Off 14,400 Performance Shares outstanding at June 30, 2015 780,658 $10.21 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Relative Total Shareholder Return Performance Units, Vested and Expected to Vest | A summary of RTSR activity during fiscal year 2015 is presented below: Number of Shares Weighted Average Grant Date Fair Value RTSRs outstanding at July 1, 2014 ā $ā Granted 30,198 $11.48 Vested ā $ā Forfeited ā $ā RTSRs outstanding at June 30, 2015 30,198 $11.48 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of RSU activity during fiscal year 2015 is presented below: Number of Shares Weighted Average Grant Date Fair Value RSUs outstanding at July 1, 2014 ā $ā Granted 188,949 $9.15 Vested (45,009 ) $9.13 Forfeited ā $ā RSUs outstanding at June 30, 2015 143,940 $9.16 |
Note 9. Income Taxes (Tables)
Note 9. Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | The components of the deferred tax assets and liabilities as of June 30, 2015 and 2014 , were as follows: (Amounts in Thousands) 2015 2014 Deferred Tax Assets: Receivables $ 1,137 $ 1,587 Inventory 528 2,388 Employee benefits 382 630 Deferred compensation 12,810 24,502 Other current liabilities 134 619 Warranty reserve 881 1,036 Tax credit carryforwards 2,472 1,883 Restructuring 1,017 ā Goodwill ā 2,597 Net operating loss carryforward 2,525 3,076 Net foreign currency losses ā 77 Miscellaneous 2,055 4,822 Valuation Allowance (687 ) (787 ) Total asset $ 23,254 $ 42,430 Deferred Tax Liabilities: Property and equipment $ 7,353 $ 7,397 Capitalized software 146 168 Miscellaneous 427 512 Total liability $ 7,926 $ 8,077 Net Deferred Income Taxes $ 15,328 $ 34,353 The reduction in deferred income taxes from June 30, 2014 to June 30, 2015 was due primarily to the spin-off of Kimball Electronics on October 31, 2014. |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes from continuing operations is composed of the following items: Year Ended June 30 (Amounts in Thousands) 2015 2014 2013 Currently Payable (Refundable): Federal $ 4,553 $ 6,108 $ (3,282 ) State 885 1,118 (139 ) Total current $ 5,438 $ 7,226 $ (3,421 ) Deferred Taxes: Federal $ 616 $ (4,514 ) $ (246 ) State 482 (1,122 ) (1,259 ) Total deferred $ 1,098 $ (5,636 ) $ (1,505 ) Valuation allowance ā (797 ) 546 Total provision (benefit) for income taxes from continuing operations $ 6,536 $ 793 $ (4,380 ) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. income tax rate from continuing operations to Kimball's effective income tax rate follows: Year Ended June 30 2015 2014 2013 (Amounts in Thousands) Amount % Amount % Amount % Tax provision (benefit) computed at U.S. federal statutory rate $ 6,188 35.0 % $ 1,474 35.0 % $ (3,848 ) 35.0 % State income taxes, net of federal income tax benefit 662 3.8 (45 ) (1.1 ) (909 ) 8.3 Valuation allowance ā ā (797 ) (18.9 ) 546 (5.0 ) Domestic manufacturing deduction (602 ) (3.4 ) (327 ) (7.8 ) ā ā Research credit (218 ) (1.2 ) (115 ) (2.7 ) (327 ) 3.0 Spin-off costs 784 4.4 422 10.0 ā ā Unrecognized tax benefit (851 ) (4.8 ) ā ā ā ā Other - net 573 3.2 181 4.3 158 (1.5 ) Total provision (benefit) for income taxes from continuing operations $ 6,536 37.0 % $ 793 18.8 % $ (4,380 ) 39.8 % |
Summary of Income Tax Contingencies | Changes in the unrecognized tax benefit, excluding accrued interest and penalties, during fiscal years 2015 , 2014 , and 2013 were as follows: (Amounts in Thousands) 2015 2014 2013 Beginning balance - July 1 $ 2,692 $ 2,752 $ 2,624 Tax positions related to prior fiscal years: Additions 351 415 207 Reductions ā ā ā Tax positions related to current fiscal year: Additions ā ā ā Reductions ā ā ā Settlements ā ā ā Lapses in statute of limitations (1,123 ) (475 ) (79 ) Ending balance - June 30 $ 1,920 $ 2,692 $ 2,752 Portion that, if recognized, would reduce tax expense and effective tax rate $ 1,307 $ 2,159 $ 2,286 |
Accrued Interest and Penalties on Unrecognized Tax Benefits | Amounts accrued for interest and penalties were as follows: As of June 30 (Amounts in Thousands) 2015 2014 2013 Accrued Interest and Penalties: Interest $ 104 $ 285 $ 278 Penalties $ 105 $ 95 $ 78 |
Note 11. Fair Value (Tables)
Note 11. Fair Value (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value [Abstract] | |
Fair Value Measurements, Recurring, Valuation Techniques [Table Text Block] | The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents 1 Market - Quoted market prices Derivative Assets: Foreign exchange contracts 2 Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates, considering counterparty credit risk Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Derivative Liabilities: Foreign exchange contracts 2 Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates adjusted for Kimball's non-performance risk |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | As of June 30, 2015 and 2014 , the fair values of financial assets and liabilities that are measured at fair value on a recurring basis using the market approach are categorized as follows: June 30, 2015 (Amounts in Thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 23,414 $ ā $ ā $ 23,414 Derivatives: Foreign exchange contracts ā ā ā ā Trading Securities: Mutual funds in nonqualified SERP 10,353 ā ā 10,353 Total assets at fair value $ 33,767 $ ā $ ā $ 33,767 Liabilities Derivatives: Foreign exchange contracts $ ā $ ā $ ā $ ā Total liabilities at fair value $ ā $ ā $ ā $ ā June 30, 2014 (Amounts in Thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 103,845 $ ā $ ā $ 103,845 Derivatives: Foreign exchange contracts ā 800 ā 800 Trading Securities: Mutual funds in nonqualified SERP 23,106 ā ā 23,106 Total assets at fair value $ 126,951 $ 800 $ ā $ 127,751 Liabilities Derivatives: Foreign exchange contracts $ ā $ 699 $ ā $ 699 Total liabilities at fair value $ ā $ 699 $ ā $ 699 The reduction in balances from June 30, 2014 to June 30, 2015 was primarily due to the spin-off of the EMS segment on October 31, 2014. |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | Non-recurring fair value adjustment Level Valuation Technique/Inputs Used Impairment of assets held for sale (real estate and property & equipment) 3 Market - Quoted market prices for similar assets sold, adjusted for features specific to the asset |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | Financial instruments that are not reflected in the Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer's non-performance risk Long-term debt (carried at amortized cost) 3 Income - Price estimated using a discounted cash flow analysis based on quoted long-term debt market rates, taking into account Kimball's non-performance risk |
Note 12. Derivative Instrumen47
Note 12. Derivative Instruments (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Fair Values of Derivative Instruments on the Consolidated Balance Sheets Asset Derivatives Liability Derivatives Fair Value As of Fair Value As of (Amounts in Thousands) Balance Sheet Location June 30 June 30 Balance Sheet Location June 30 June 30 Derivatives designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets $ ā $ 599 Accrued expenses $ ā $ 241 Derivatives not designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets ā 201 Accrued expenses ā 458 Total derivatives $ ā $ 800 $ ā $ 699 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The Effect of Derivative Instruments on Other Comprehensive Income (Loss) June 30 (Amounts in Thousands) 2015 2014 2013 Amount of Pre-Tax Gain Recognized in Other Comprehensive Income (Loss) (OCI) on Derivatives (Effective Portion): Foreign exchange contracts $ 2,513 $ 73 $ 1,206 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The Effect of Derivative Instruments on Consolidated Statements of Income (Amounts in Thousands) Fiscal Year Ended June 30 Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) 2015 2014 2013 Amount of Pre-Tax Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion): Foreign exchange contracts Income from Discontinued Operations, Net of Tax $ 1,484 $ (1,187 ) $ 2,139 Amount of Pre-Tax Gain or (Loss) Reclassified from Accumulated OCI into Income (Ineffective Portion): Foreign exchange contracts Income from Discontinued Operations, Net of Tax $ ā $ ā $ (3 ) Derivatives Not Designated as Hedging Instruments Amount of Pre-Tax Gain or (Loss) Recognized in Income on Derivatives: Foreign exchange contracts Income from Discontinued Operations, Net of Tax $ 740 $ (487 ) $ (322 ) Stock warrants Non-operating income, net ā (25 ) (885 ) Total $ 740 $ (512 ) $ (1,207 ) Total Derivative Pre-Tax Gain (Loss) Recognized in Income $ 2,224 $ (1,699 ) $ 929 |
Note 13. Investments (Tables)
Note 13. Investments (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Trading Securities (and Certain Trading Assets) | SERP asset and liability balances were as follows: June 30 (Amounts in Thousands) 2015 2014 SERP investments - current asset $ 1,276 $ 8,812 SERP investments - other long-term asset 9,077 14,294 Total SERP investments $ 10,353 $ 23,106 SERP obligation - current liability $ 1,276 $ 8,812 SERP obligation - other long-term liability 9,077 14,294 Total SERP obligation $ 10,353 $ 23,106 The reduction in SERP investments and obligation from June 30, 2014 to June 30, 2015 was due primarily to the spin-off of Kimball Electronics on October 31, 2014. |
Note 14. Accrued Expenses (Tabl
Note 14. Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Accrued Expenses [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses consisted of: June 30 (Amounts in Thousands) 2015 2014 Compensation $ 21,824 $ 46,307 Selling 6,418 6,101 Employer retirement contribution 4,091 4,964 Taxes 2,933 8,187 Insurance 2,770 4,215 Restructuring 2,504 ā Other expenses 4,885 7,482 Total accrued expenses $ 45,425 $ 77,256 The reduction in compensation, employer retirement plan contribution, taxes, insurance, and other expenses, from June 30, 2014 to June 30, 2015 was due primarily to the spin-off of Kimball Electronics on October 31, 2014. |
Note 15. Geographic Informati50
Note 15. Geographic Information (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Geographic Area Information [Abstract] | |
Schedule of Revenue from External Customers, by Geographical Areas | The following geographic area data includes net sales from continuing operations based on the location where title transfers. Substantially all long-lived assets of the Companyās continuing operations were located in the United States for each of the three fiscal years ended June 30, 2015. Long-lived assets include property and equipment and other long-term assets such as software. Year Ended June 30 (Amounts in Thousands) 2015 2014 2013 Net Sales: United States $ 578,551 $ 530,087 $ 491,366 Other Foreign 22,317 13,730 8,639 Total Net Sales $ 600,868 $ 543,817 $ 500,005 |
Note 16. Earnings Per Share (Ta
Note 16. Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share from Continuing Operations, Basic and Diluted | Earnings per share of Class A and Class B Common Stock are as follows: EARNINGS PER SHARE FROM CONTINUING OPERATIONS Year Ended June 30, 2015 Year Ended June 30, 2014 Year Ended June 30, 2013 (Amounts in Thousands, Except for Per Share Data) Class A Class B Total Class A Class B Total Class A Class B Total Basic Earnings (Loss) Per Share from Continuing Operations: Dividends Declared $ 536 $ 7,169 $ 7,705 $ 1,437 $ 6,090 $ 7,527 $ 1,495 $ 5,955 $ 7,450 Undistributed Earnings (Loss) 287 3,151 3,438 (859 ) (3,249 ) (4,108 ) (3,172 ) (10,894 ) (14,066 ) Income (Loss) from Continuing Operations $ 823 $ 10,320 $ 11,143 $ 578 $ 2,841 $ 3,419 $ (1,677 ) $ (4,939 ) $ (6,616 ) Average Basic Shares Outstanding 3,231 35,414 38,645 8,026 30,378 38,404 8,584 29,479 38,063 Basic Earnings (Loss) Per Share from Continuing Operations $ 0.25 $ 0.29 $ 0.07 $ 0.09 $ (0.20 ) $ (0.17 ) Diluted Earnings (Loss) Per Share from Continuing Operations: Dividends Declared and Assumed Dividends on Dilutive Shares $ 536 $ 7,234 $ 7,770 $ 1,550 $ 6,091 $ 7,641 $ 1,495 $ 5,955 $ 7,450 Undistributed Earnings (Loss) 280 3,093 3,373 (936 ) (3,286 ) (4,222 ) (3,172 ) (10,894 ) (14,066 ) Income (Loss) from Continuing Operations $ 816 $ 10,327 $ 11,143 $ 614 $ 2,805 $ 3,419 $ (1,677 ) $ (4,939 ) $ (6,616 ) Average Diluted Shares Outstanding 3,231 35,740 38,971 8,652 30,385 39,037 8,584 29,479 38,063 Diluted Earnings (Loss) Per Share from Continuing Operations $ 0.25 $ 0.29 $ 0.07 $ 0.09 $ (0.20 ) $ (0.17 ) Reconciliation of Basic and Diluted EPS from Continuing Operations Calculations: Income (Loss) from Continuing Operations $ 823 $ 10,320 $ 11,143 $ 578 $ 2,841 $ 3,419 $ (1,677 ) $ (4,939 ) $ (6,616 ) Assumed Dividends Payable on Dilutive Shares ā 65 65 113 1 114 ā ā ā Increase (Reduction) in Undistributed Earnings (Loss) - allocated based on Class A and Class B shares (7 ) (58 ) (65 ) (77 ) (37 ) (114 ) ā ā ā Income (Loss) from Continuing Operations $ 816 $ 10,327 $ 11,143 $ 614 $ 2,805 $ 3,419 $ (1,677 ) $ (4,939 ) $ (6,616 ) Average Shares Outstanding for Basic EPS Calculation 3,231 35,414 38,645 8,026 30,378 38,404 8,584 29,479 38,063 Dilutive Effect of Average Outstanding Stock Awards ā 326 326 626 7 633 ā ā ā Average Shares Outstanding for Diluted EPS Calculation 3,231 35,740 38,971 8,652 30,385 39,037 8,584 29,479 38,063 |
Schedule of Earnings Per Share from Discontinued Operations, Basic and Diluted | EARNINGS PER SHARE FROM DISCONTINUED OPERATIONS Year Ended June 30, 2015 Year Ended June 30, 2014 Year Ended June 30, 2013 Class A Class B Class A Class B Class A Class B Basic Earnings Per Share $ 0.24 $ 0.24 $ 0.78 $ 0.79 $ 0.70 $ 0.70 Diluted Earnings Per Share $ 0.24 $ 0.23 $ 0.77 $ 0.77 $ 0.70 $ 0.70 |
Schedule of Earnings Per Share, Basic and Diluted | EARNINGS PER SHARE (INCLUDING DISCONTINUED OPERATIONS) Year Ended June 30, 2015 Year Ended June 30, 2014 Year Ended June 30, 2013 (Amounts in Thousands, Except for Per Share Data) Class A Class B Total Class A Class B Total Class A Class B Total Basic Earnings Per Share: Dividends Declared $ 536 $ 7,169 $ 7,705 $ 1,437 $ 6,090 $ 7,527 $ 1,495 $ 5,955 $ 7,450 Undistributed Earnings 1,053 11,542 12,595 5,420 20,514 25,934 2,803 9,626 12,429 Net Income $ 1,589 $ 18,711 $ 20,300 $ 6,857 $ 26,604 $ 33,461 $ 4,298 $ 15,581 $ 19,879 Average Basic Shares Outstanding 3,231 35,414 38,645 8,026 30,378 38,404 8,584 29,479 38,063 Basic Earnings Per Share $ 0.49 $ 0.53 $ 0.85 $ 0.88 $ 0.50 $ 0.53 Diluted Earnings Per Share: Dividends Declared and Assumed Dividends on Dilutive Shares $ 536 $ 7,234 $ 7,770 $ 1,550 $ 6,091 $ 7,641 $ 1,495 $ 5,955 $ 7,450 Undistributed Earnings 1,039 11,491 12,530 5,723 20,097 25,820 2,803 9,626 12,429 Net Income $ 1,575 $ 18,725 $ 20,300 $ 7,273 $ 26,188 $ 33,461 $ 4,298 $ 15,581 $ 19,879 Average Diluted Shares Outstanding 3,231 35,740 38,971 8,652 30,385 39,037 8,584 29,479 38,063 Diluted Earnings Per Share $ 0.49 $ 0.52 $ 0.84 $ 0.86 $ 0.50 $ 0.53 |
Note 17. Accumulated Other Co52
Note 17. Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | During fiscal year 2015 and 2014 , the changes in the balances of each component of Accumulated Other Comprehensive Income (Loss), net of tax, were as follows: Postemployment Benefits (Amounts in Thousands) Foreign Currency Translation Adjustments Derivative Gain (Loss) Prior Service Costs Net Actuarial Gain (Loss) Accumulated Other Comprehensive Income (Loss) Balance at June 30, 2013 $ 855 $ (4,359 ) $ (292 ) $ 319 $ (3,477 ) Other comprehensive income (loss) before reclassifications 4,054 (13 ) ā 539 4,580 Reclassification to (earnings) loss ā 961 172 204 1,337 Net current-period other comprehensive income (loss) 4,054 948 172 743 5,917 Balance at June 30, 2014 $ 4,909 $ (3,411 ) $ (120 ) $ 1,062 $ 2,440 Other comprehensive income (loss) before reclassifications (6,070 ) 2,097 ā 539 (3,434 ) Reclassification to (earnings) loss ā (1,193 ) 112 (175 ) (1,256 ) Distribution to Kimball Electronics, Inc. 1,161 2,507 8 (197 ) 3,479 Net current-period other comprehensive income (loss) (4,909 ) 3,411 120 167 (1,211 ) Balance at June 30, 2015 $ ā $ ā $ ā $ 1,229 $ 1,229 |
Reclassification out of Accumulated Other Comprehensive Income | The following reclassifications were made from Accumulated Other Comprehensive Income (Loss) to the Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income (Loss) Fiscal Year Ended Affected Line Item in the Consolidated Statements of Income June 30, (Amounts in Thousands) 2015 2014 Derivative Gain (Loss) (1) $ 1,193 $ (961 ) Income from Discontinued Operations, Net of Tax Postemployment Benefits: Amortization of Prior Service Costs (2) $ (111 ) $ (158 ) Cost of Sales (61 ) (86 ) Selling and Administrative Expenses 68 95 Benefit (Provision) for Income Taxes $ (104 ) $ (149 ) Income (Loss) from Continuing Operations $ (8 ) $ (23 ) Income from Discontinued Operations, Net of Tax Amortization of Actuarial Gain (Loss) (2) $ 159 $ (194 ) Cost of Sales 120 (91 ) Selling and Administrative Expenses (111 ) 111 Benefit (Provision) for Income Taxes $ 168 $ (174 ) Income (Loss) from Continuing Operations $ 7 $ (30 ) Income from Discontinued Operations, Net of Tax Total Reclassifications for the Period $ 64 $ (323 ) Income (Loss) from Continuing Operations 1,192 (1,014 ) Income from Discontinued Operations, Net of Tax $ 1,256 $ (1,337 ) Net Income Amounts in parentheses indicate reductions to income. (1) See Note 12 - Derivative Instruments of Notes to Consolidated Financial Statements for further information on derivative instruments. (2) See Note 7 - Employee Benefit Plans of Notes to Consolidated Financial Statements for further information on postemployment benefit plans. |
Note 18. Restructuring Expens53
Note 18. Restructuring Expense (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring Expense [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Summary of Restructuring Plan: Accrued June 30, 2014 Fiscal Year Ended June 30, 2015 Total Charges Incurred Since Plan Announcement Total Expected Plan Costs (Amounts in Thousands) Amounts Charged Cash Amounts Charged Non-cash Amounts Utilized/ Cash Paid Accrued June 30, 2015 (1) Capacity Realignment and Post Falls, Idaho Exit Transition and Other Employee Costs $ ā $ 2,657 $ ā $ (44 ) $ 2,613 $ 2,657 $ 5,797 Asset Write-downs ā ā 131 (131 ) ā 131 182 Plant Closure and Other Exit Costs ā 1,456 ā (1,456 ) ā 1,456 2,912 Total $ ā $ 4,113 $ 131 $ (1,631 ) $ 2,613 $ 4,244 $ 8,891 Plane Fleet Reduction Transition and Other Employee Costs $ ā $ 224 $ ā $ (224 ) $ ā $ 224 $ 224 Asset Write-downs ā ā 822 (822 ) ā 822 822 Total $ ā $ 224 $ 822 $ (1,046 ) $ ā $ 1,046 $ 1,046 Total Restructuring Plan $ ā $ 4,337 $ 953 $ (2,677 ) $ 2,613 $ 5,290 $ 9,937 (1) The accrued restructuring balance at June 30, 2015 includes $2.5 million recorded in current liabilities and $0.1 million recorded in other long-term liabilities. |
Note 20. Credit Quality and A54
Note 20. Credit Quality and Allowance for Credit Losses of Notes Receivable (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Credit Quality and Allowance for Credit Losses of Notes Receivable [Abstract] | |
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent | As of June 30, 2015 As of June 30, 2014 (Amounts in Thousands) Unpaid Balance Related Allowance Receivable Net of Allowance Unpaid Balance Related Allowance Receivable Net of Allowance Note Receivable from Sale of Indiana Facility $ 1,347 $ 489 $ 858 $ 1,392 $ 489 $ 903 Other Notes Receivable 439 149 290 223 149 74 Total $ 1,786 $ 638 $ 1,148 $ 1,615 $ 638 $ 977 |
Note 21. Quarterly Financial 55
Note 21. Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Information | Three Months Ended (Amounts in Thousands, Except for Per Share Data) September 30 December 31 March 31 June 30 Fiscal Year 2015: Net Sales (1) $ 144,446 $ 151,418 $ 145,943 $ 159,061 Gross Profit (1) 47,183 46,596 44,007 51,079 Restructuring Expense (1) ā 3,335 388 1,567 Income (Loss) From Continuing Operations 1,517 (1 ) 4,882 4,745 Net Income 7,996 2,677 4,882 4,745 Basic Earnings (Loss) Per Share From Continuing Operations: Class A $ 0.04 $ (0.02 ) $ 0.12 $ 0.11 Class B $ 0.04 $ ā $ 0.13 $ 0.12 Diluted Earnings (Loss) Per Share From Continuing Operations: Class A $ 0.04 $ (0.02 ) $ 0.12 $ 0.11 Class B $ 0.04 $ ā $ 0.13 $ 0.12 Basic Earnings Per Share: Class A $ 0.20 $ 0.05 $ 0.12 $ 0.11 Class B $ 0.21 $ 0.07 $ 0.13 $ 0.12 Diluted Earnings Per Share: Class A $ 0.20 $ 0.05 $ 0.12 $ 0.11 Class B $ 0.21 $ 0.07 $ 0.13 $ 0.12 Fiscal Year 2014: Net Sales (1) $ 141,802 $ 139,049 $ 125,108 $ 137,858 Gross Profit (1) 42,246 45,806 36,617 42,056 Income (Loss) From Continuing Operations 1,009 2,088 (37 ) 359 Net Income 9,183 9,222 7,208 7,848 Basic Earnings (Loss) Per Share From Continuing Operations: Class A $ 0.02 $ 0.05 $ (0.01 ) $ 0.01 Class B $ 0.03 $ 0.06 $ ā $ 0.01 Diluted Earnings (Loss) Per Share From Continuing Operations: Class A $ 0.02 $ 0.05 $ (0.01 ) $ 0.01 Class B $ 0.03 $ 0.06 $ ā $ 0.01 Basic Earnings Per Share: Class A $ 0.24 $ 0.24 $ 0.18 $ 0.20 Class B $ 0.24 $ 0.24 $ 0.19 $ 0.21 Diluted Earnings Per Share: Class A $ 0.23 $ 0.23 $ 0.18 $ 0.20 Class B $ 0.24 $ 0.24 $ 0.19 $ 0.20 (1) Net sales, gross profit, and restructuring expense are from continuing operations. |
Schedule II Valuation and Qua56
Schedule II Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Schedule II. - Valuation and Qualifying Accounts Description Balance at Beginning of Year Additions (Reductions) to Expense Adjustments to Other Accounts Write-offs and Recoveries Impact of Spin-Off Balance at End of Year (Amounts in Thousands) Year Ended June 30, 2015 Valuation Allowances: Short-Term Receivables $ 2,345 $ 198 $ (65 ) $ (604 ) $ (352 ) $ 1,522 Long-Term Receivables $ 628 $ (10 ) $ ā $ ā $ ā $ 618 Deferred Tax Asset $ 787 $ ā $ ā $ (100 ) $ ā $ 687 Year Ended June 30, 2014 Valuation Allowances: Short-Term Receivables $ 2,791 $ (20 ) $ (149 ) $ (277 ) $ ā $ 2,345 Long-Term Notes Receivable $ ā $ 628 $ ā $ ā $ ā $ 628 Deferred Tax Asset $ 2,315 $ ā $ ā $ (1,528 ) $ ā $ 787 Year Ended June 30, 2013 Valuation Allowances: Short-Term Receivables $ 1,367 $ 1,663 $ 15 $ (254 ) $ ā $ 2,791 Deferred Tax Asset $ 1,911 $ 408 $ ā $ (4 ) $ ā $ 2,315 |
Note 1. Summary of Significan57
Note 1. Summary of Significant Accounting Policies - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Other Intangible Assets | ||
Other Intangible Assets, Cost | $ 38,116 | $ 66,103 |
Other Intangible Assets, Accumulated Amortization | 35,447 | 61,912 |
Other Intangible Assets, Net Value | 2,669 | 4,191 |
Capitalized Software | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 37,744 | 64,564 |
Other Intangible Assets, Accumulated Amortization | 35,081 | 60,637 |
Other Intangible Assets, Net Value | 2,663 | 3,927 |
Product Rights | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 372 | 372 |
Other Intangible Assets, Accumulated Amortization | 366 | 294 |
Other Intangible Assets, Net Value | 6 | 78 |
Customer Relationships | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 0 | 1,167 |
Other Intangible Assets, Accumulated Amortization | 0 | 981 |
Other Intangible Assets, Net Value | $ 0 | $ 186 |
Note 1. Summary of Significan58
Note 1. Summary of Significant Accounting Policies - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accounts Receivable, Customary Payment Terms | 30 days | ||
Accounts Receivable, Days Beyond Which Terms Are Considered Extended Payment Terms | 30 days | ||
LIFO Inventory as a Percentage of Consolidated Inventory | 91.00% | 16.00% | |
Other Intangible Assets, Amortization Expense | $ 898 | $ 992 | $ 1,039 |
Other Intangible Assets, Future Amortization Expense, Year One | 720 | ||
Other Intangible Assets, Future Amortization Expense, Year Two | 653 | ||
Other Intangible Assets, Future Amortization Expense, Year Three | 454 | ||
Other Intangible Assets, Future Amortization Expense, Year Four | 334 | ||
Other Intangible Assets, Future Amortization Expense, Year Five | 304 | ||
Other Intangible Assets, Future Amortization Expense, after Year Five | 204 | ||
Indefinite-Lived Intangible Assets | 0 | 0 | |
Research and Development Costs | 7,000 | 7,000 | 6,000 |
Advertising Costs | 4,000 | 3,700 | $ 3,200 |
Notes Receivable, Unpaid Balance | $ 1,786 | $ 1,615 | |
Capitalized Software | Minimum | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Capitalized Software | Maximum | |||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Note 2. Spin-Off Transaction Te
Note 2. Spin-Off Transaction Textuals (Details) $ in Millions | Oct. 31, 2014USD ($) |
Cash and cash equivalents | $ 63 |
Disposal Group,Including Discontinued Operation, Accumulated Other Comprehensive Income (Loss) | $ (3.5) |
Note 2. Spin-Off Transaction Di
Note 2. Spin-Off Transaction Disposal Group, Balance Sheet (Details) $ in Millions | Oct. 31, 2014USD ($) |
ASSETS | |
Cash and cash equivalents | $ 63 |
Receivables | 133 |
Inventories | 124 |
Prepaid expenses and other current assets | 19 |
Net property and equipment | 98 |
Goodwill | 3 |
Net other intangible assets | 1 |
Other long-term assets | 15 |
Total Assets | 456 |
Liabilities | |
Accounts payable | 125 |
Accrued expenses | 22 |
Other long-term liabilities | 9 |
Total Liabilities | 156 |
Net Assets Distributed to Kimball Electronics, Inc. | $ 300 |
Note 2. Spin-Off Transaction 61
Note 2. Spin-Off Transaction Disposal Group, Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net Sales | $ 275,551 | $ 741,530 | $ 703,129 |
Income Before Taxes on Income | 13,098 | 38,961 | 33,659 |
Provision for Income Taxes | 3,941 | 8,919 | 7,164 |
Income from Discontinued Operations, Net of Tax | $ 9,157 | $ 30,042 | $ 26,495 |
Income From Discontinued Operations per Class B Diluted Share | $ 0.23 | $ 0.77 | $ 0.70 |
Note 3. Inventories - Inventory
Note 3. Inventories - Inventory Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Percentage of LIFO Inventory | 91.00% | 16.00% | |
Inventory, LIFO Reserve, Effect on Income, Net | $ (0.2) | $ (0.6) | $ (0.2) |
Effect of LIFO Inventory Liquidation on Income | $ 0 |
Note 3. Inventories - Invento63
Note 3. Inventories - Inventory Components (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Finished products | $ 26,634 | $ 37,373 |
Work-in-process | 1,952 | 13,808 |
Raw materials | 23,201 | 103,083 |
Total FIFO inventory | 51,787 | 154,264 |
LIFO reserve | (14,153) | (13,789) |
Total inventory | $ 37,634 | $ 140,475 |
Note 4. Property and Equipmen64
Note 4. Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Property and Equipment | ||
Total Property and Equipment | $ 294,663 | $ 547,326 |
Less: Accumulated depreciation | (197,500) | (358,493) |
Property and equipment, net | 97,163 | 188,833 |
Land | ||
Property and Equipment | ||
Total Property and Equipment | 2,849 | 12,308 |
Building and Building Improvements | ||
Property and Equipment | ||
Total Property and Equipment | 124,709 | 183,735 |
Machinery and Equipment | ||
Property and Equipment | ||
Total Property and Equipment | 159,648 | 341,525 |
Construction in Progress | ||
Property and Equipment | ||
Total Property and Equipment | $ 7,457 | $ 9,758 |
Note 4. Property and Equipmen65
Note 4. Property and Equipment - Asset Lives (Details) | 12 Months Ended |
Jun. 30, 2015 | |
Leasehold improvements | Lesser of Useful Life or Term of Lease |
Building and Building Improvements | Minimum | |
Property, Plant and Equipment, Useful Life | 5 years |
Building and Building Improvements | Maximum | |
Property, Plant and Equipment, Useful Life | 50 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment, Useful Life | 2 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment, Useful Life | 20 years |
Note 4. Property and Equipmen66
Note 4. Property and Equipment - Textuals (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Mar. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | |
Depreciation and amortization of property and equipment | $ 13,100 | $ 13,500 | $ 12,000 | |||
Assets held for sale | 0 | 0 | ||||
Asset Held for Sale - subsequently sold | $ 1,300 | |||||
Gain (Loss) on Disposition of Property Plant Equipment | (912) | 1,484 | 181 | |||
Property, Plant and Equipment, Other Types | ||||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 200 | 200 | ||||
Property, Plant and Equipment, Other Types | Fair Value, Measurements, Nonrecurring | ||||||
Impairment of Long-Lived Assets to be Disposed of | $ 1,100 | $ 1,100 | 1,200 | |||
Held for Sale Facilty and Land Related to the Gaylord, Michigan Exited Operation | FY 2007 Gaylord Restructuring Plan | Fair Value, Measurements, Nonrecurring | ||||||
Impairment loss, Pre-tax | 300 | $ 200 | ||||
Furniture segment | Held for Sale Idle Furniture Segment Manufacturing Facility and Land Located in Jasper, IN | ||||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 1,700 | |||||
Unallocated Corporate | Property, Plant and Equipment, Other Types | ||||||
Asset Held for Sale - subsequently sold | $ 1,500 |
Note 5. Commitments and Conti67
Note 5. Commitments and Contingent Liabilities - Leases Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Operating Leased Assets | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 3.4 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 3.1 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 2.7 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 2.3 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 2.2 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 7.9 | ||
Rental expenses | 4.9 | $ 4.1 | $ 4.4 |
Contingent lease payments | $ 1 | $ 0.8 | $ 0.9 |
Note 5. Commitments and Conti68
Note 5. Commitments and Contingent Liabilities - Guarantees Textuals (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Guarantee Obligations | ||
Contingent Liabilities | ||
Loss Contingency Accrual, at Carrying Value | $ 0 | $ 0 |
Financial Standby Letter of Credit | ||
Contingent Liabilities | ||
Unused standby letters of credit | 1,000,000 | 1,100,000 |
Loss Contingency Accrual, at Carrying Value | $ 0 | $ 0 |
Note 5. Commitments and Conti69
Note 5. Commitments and Contingent Liabilities - Product Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Product Warranty Liability at the beginning of the year | $ 3,221 | $ 2,384 | $ 2,251 |
Additions to warranty accrual (including changes in estimates) | 880 | 2,883 | 1,040 |
Settlements made (in cash or in kind) | (927) | (2,046) | (907) |
Distribution To Kimball Electronics - Warranty Liability | (910) | 0 | 0 |
Product Warranty Liability at the end of the year | $ 2,264 | $ 3,221 | $ 2,384 |
Note 6. Long-Term Debt and Cr70
Note 6. Long-Term Debt and Credit Facilities - Textuals (Details) | 12 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
Long-term debt, less current maturities | $ 241,000 | $ 268,000 | |
Current maturities of long-term debt | $ 27,000 | 25,000 | |
Interest Rate on Long-Term Debt, Minimum | 2.50% | ||
Interest Rate on Long-Term Debt, Maximum | 9.25% | ||
Maturities of Long-Term Debt in the Next Twelve Months | $ 27,000 | ||
Maturities of Long-term Debt in Year Two | 30,000 | ||
Maturities of Long-term Debt in Year Three | 27,000 | ||
Maturities of Long-term Debt in Year Four | 23,000 | ||
Maturities of Long-term Debt in Year Five | 25,000 | ||
Aggregate Maturities of Long-term Debt after Year Five | $ 136,000 | ||
Fixed Charge Coverage Ratio Covenant, Percent of Depreciation | 50.00% | ||
Interest Paid on Borrowings | $ 29,000 | 29,000 | $ 36,000 |
Primary Revolving Credit Facility | |||
Credit Facility, Maximum Borrowing Capacity | 30,000,000 | $ 75,000,000 | |
Credit Facility, Maximum Borrowing Capacity Upon Request | 55,000,000 | ||
Line of Credit Facility, Amount Available for Letters of Credit | 10,000,000 | ||
Adjusted Leverage Ratio, Indebtedness Reduction For Excess Cash | $ 15,000,000 | ||
Adjusted Leverage Ratio Covenant | 3 | ||
Fixed Charge Coverage Ratio Covenant | 1.10 | ||
Primary Revolving Credit Facility | Minimum | |||
Line of Credit Facility, Commitment Fee Basis Points | 20 | ||
Primary Revolving Credit Facility | Maximum | |||
Line of Credit Facility, Commitment Fee Basis Points | 25 | ||
Financial Standby Letter of Credit | Primary Revolving Credit Facility | |||
Letters of Credit, Amount | $ 1,000,000 | ||
Eurocurrency Loans Margin | Primary Revolving Credit Facility | Minimum | |||
Line of Credit Facility, Interest Rate Basis Points | 125 | ||
Eurocurrency Loans Margin | Primary Revolving Credit Facility | Maximum | |||
Line of Credit Facility, Interest Rate Basis Points | 175 | ||
London Interbank Offered Rate (LIBOR) | Primary Revolving Credit Facility | |||
Interest Rate Charged Over Index Rate | 1.00% | ||
Federal Funds Rate | Primary Revolving Credit Facility | |||
Interest Rate Charged Over Index Rate | 0.50% | ||
Alternate Base Rate Loans Spread | Primary Revolving Credit Facility | Minimum | |||
Line of Credit Facility, Interest Rate Basis Points | 25 | ||
Alternate Base Rate Loans Spread | Primary Revolving Credit Facility | Maximum | |||
Line of Credit Facility, Interest Rate Basis Points | 75 |
Note 6. Long-Term Debt and Cr71
Note 6. Long-Term Debt and Credit Facilities - (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 | |
Line of Credit Facility | |||
Credit Facility, Availability to Borrow | $ 29 | ||
Credit Facility, Borrowings Outstanding | 0 | $ 0 | |
Primary Revolving Credit Facility | |||
Line of Credit Facility | |||
Credit Facility, Availability to Borrow | [1] | 29 | |
Credit Facility, Borrowings Outstanding | [1] | 0 | 0 |
Former EMS segment overdraft facilities | |||
Line of Credit Facility | |||
Credit Facility, Availability to Borrow | [2] | 0 | |
Credit Facility, Borrowings Outstanding | [2] | $ 0 | $ 0 |
[1] | (1) In connection with the spin-off, on October 31, 2014 Kimball entered into a new credit facility. The new credit agreement, which replaced a previously existing primary credit facility, has a maturity date of October 31, 2019 and allows for up to $30 million in borrowings, with an option to increase the amount available for borrowing to $55 million at the Company's request, subject to participating banks' consent.At JuneĀ 30, 2015, we had $1.0 million in letters of credit outstanding, which reduced our borrowing capacity on the credit facility.The revolving loans under the Credit Agreement may consist of, at the Company's election, advances in U.S. dollars or advances in any other currency that is agreed to by the lenders. The proceeds of the revolving loans are to be used for general corporate purposes of the Company including acquisitions. A portion of the credit facility, not to exceed $10 million of the principal amount, will be available for the issuance of letters of credit. A commitment fee is payable on the unused portion of the credit facility which was immaterial to our operating results for fiscal year 2015. The commitment fee on the unused portion of principal amount of the credit facility is payable at a rate that ranges from 20.0 to 25.0 basis points per annum as determined by the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA. The interest rate is dependent on the type of borrowings and will be one of the following two options: ā¢The adjusted London Interbank Offered Rate (āAdjusted LIBO Rateā as defined in the Credit Agreement) in effect two business days prior to the advance (adjusted upwards to reflect bank reserve costs) for such interest period, plus the Eurocurrency Loans margin which can range from 125.0 to 175.0 basis points based on the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA; orā¢The Alternate Base Rate, which is defined as the highest of the fluctuating rate per annum equal to the higher of a.JPMorgan's prime rate; b.1% per annum above the Adjusted LIBO rate; or c.1/2% per annum above the Federal funds rate;plus the ABR Loans spread which can range from 25.0 to 75.0 basis points based on the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA.The Company's financial covenants under the Credit Agreement require:ā¢An adjusted leverage ratio of (a) consolidated total indebtedness minus unencumbered U.S. cash on hand in the U.S. in excess of $15,000,000 to (b) consolidated EBITDA, determined as of the end of each of its fiscal quarters for the then most recently ended four fiscal quarters, to not be greater than 3.0 to 1.0, andā¢A fixed charge coverage ratio of (a) the sum of (i) consolidated EBITDA, minus (ii) 50% of depreciation expense, minus (iii) taxes paid, minus (iv) dividends and distributions paid, to (b) the sum of (i) scheduled principal payments on indebtedness due and/or paid, plus (ii) interest expense, calculated on a consolidated basis in accordance with GAAP, determined as of the end of each of its fiscal quarters for the trailing four fiscal quarters then ending, to not be less than 1.10 to 1.00. Prior to the October 31, 2014 spin-off, Kimball maintained a primary revolving credit facility which provided for up to $75 million in borrowings | ||
[2] | (2)Our former EMS segment, classified as a discontinued operation, also maintained foreign credit facilities which were available to cover bank overdrafts. Bank overdrafts may have been deemed necessary to satisfy short-term cash needs rather than funding from intercompany sources. |
Note 7. Employee Benefit Plan72
Note 7. Employee Benefit Plans - Retirement Plans Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Domestic Plans | |||
Employer's contribution to retirement plans | $ 4.3 | $ 4 | $ 4 |
Note 7. Employee Benefit Plan73
Note 7. Employee Benefit Plans - Severance Plans - Components and Changes of Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Changes and Components of Benefit Obligation: | |||
Benefit obligation at beginning of year | $ 5,350 | $ 5,579 | |
Service cost | 645 | 955 | $ 825 |
Interest cost | 96 | 134 | 179 |
Actuarial (gain) loss for the period | (895) | (899) | |
Benefits paid | (168) | (419) | |
Distribution to Kimball Electronics, Inc. | (2,173) | 0 | |
Benefit obligation at end of year | 2,855 | 5,350 | $ 5,579 |
Balance in current liabilities | 501 | 939 | |
Balance in noncurrent liabilities | 2,354 | 4,411 | |
Total benefit obligation recognized in the Consolidated Balance Sheets | $ 2,855 | $ 5,350 |
Note 7. Employee Benefit Plan74
Note 7. Employee Benefit Plans - Severance Plans - Changes and Components in Accumulated Other Comprehensive Income (Loss) (before tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Changes and Components in Accumulated Other Comprehensive Income (Loss) (before tax): | |||
Accumulated Other Comprehensive Income (Loss) at beginning of year | $ (1,567) | $ (44) | |
Change in unrecognized prior service cost | (185) | (286) | $ (286) |
Net change in unrecognized actuarial (gain) loss | (603) | (1,237) | |
Distribution to Kimball Electronics, Inc. | 344 | 0 | |
Accumulated Other Comprehensive Income (Loss) at end of year | (2,011) | (1,567) | $ (44) |
Balance in unrecognized prior service cost | 0 | 199 | |
Balance in unrecognized actuarial (gain) loss | (2,011) | (1,766) | |
Total Accumulated Other Comprehensive Income (Loss) recognized in Share Owners' Equity | $ (2,011) | $ (1,567) |
Note 7. Employee Benefit Plan75
Note 7. Employee Benefit Plans - Severance Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Defined Benefit Plan Disclosure | |||
Service cost | $ 645 | $ 955 | $ 825 |
Interest cost | 96 | 134 | 179 |
Amortization of prior service cost | 185 | 286 | 286 |
Amortization of actuarial (gain) loss | (292) | 338 | 344 |
Net periodic benefit cost - Total cost | 634 | 1,713 | 1,634 |
Discontinued Operations [Member] | |||
Defined Benefit Plan Disclosure | |||
Net periodic benefit cost - Total cost | 81 | 343 | 321 |
Continuing Operations [Member] | |||
Defined Benefit Plan Disclosure | |||
Net periodic benefit cost - Total cost | $ 553 | $ 1,370 | $ 1,313 |
Note 7. Employee Benefit Plan76
Note 7. Employee Benefit Plans - Severance Plans Textuals (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Estimated amortization over the next fiscal year: | |
Defined Benefit Plan, Assets for Plan Benefits | $ 0 |
Estimated actuarial net (gain) loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year | $ (811) |
Note 7. Employee Benefit Plan77
Note 7. Employee Benefit Plans - Severance Plan Assumptions, Fiscal Year End (Details) | Jun. 30, 2015 | Jun. 30, 2014 |
Defined Benefit Plan Disclosure Line Items | ||
Discount Rate | 2.80% | 2.30% |
Rate of Compensation Increase | 3.00% | 3.00% |
Note 7. Employee Benefit Plan78
Note 7. Employee Benefit Plans - Severance Plan Assumptions, Weighted Average (Details) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Defined Benefit Plan Disclosure Line Items | |||
Discount Rate | 2.60% | 2.50% | 3.80% |
Rate of Compensation Increase | 3.00% | 3.00% | 3.80% |
Note 8. Stock Compensation Pl79
Note 8. Stock Compensation Plans - Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangements | |||
Stock Compensation Plan, Pre-tax Compensation Cost | $ 5.6 | $ 5.5 | $ 3.7 |
Stock Compensation Plan, Income Tax Benefit from Compensation Cost | $ 2.2 | $ 2.2 | $ 1.5 |
Amended and Restated 2003 Stock Option and Incentive Plan | |||
Share-based Compensation Arrangements | |||
Stock Compensation Plan, Shares Reserved | 5,000,000 |
Note 8. Stock Compensation Pl80
Note 8. Stock Compensation Plans - Performance Share Activity (Details) - Performance Shares - $ / shares | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangements | |||
Shares Outstanding, Beginning of Period | 1,974,863 | ||
Shares Granted | 0 | ||
Shares Vested | 649,524 | 512,719 | 254,393 |
Shares Forfeited | 559,081 | ||
Shares, Impact of Spin-Off | 14,400 | ||
Shares Outstanding, End of Period | 780,658 | 1,974,863 | |
Weighted Average Grant Date Fair Value of Shares Outstanding, Beginning of Period | $ 10.92 | ||
Weighted Average Grant Date Fair Value of Shares Granted | 0 | $ 14.93 | $ 10.91 |
Weighted Average Grant Date Fair Value of Shares Vested | 11.07 | ||
Weighted Average Grant Date Fair Value of Shares Forfeited | 15.90 | ||
Weighted Average Grant Date Fair Value of Shares Outstanding, End of Period | $ 10.21 | $ 10.92 |
Note 8. Stock Compensation Pl81
Note 8. Stock Compensation Plans - Performance Share Textuals (Details) - Performance Shares - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangements | |||
Unrecognized Compensation Cost | $ 3.5 | ||
Average Vesting Period for Unrecognized Compensation Cost | 1 year 4 months | ||
Weighted Average Grant Date Fair Value of Shares Granted | $ 0 | $ 14.93 | $ 10.91 |
Shares Vested | 649,524 | 512,719 | 254,393 |
Weighted Average Grant Date Fair Value of Shares Vested, Total Fair Value | $ 7.2 | $ 5.6 | $ 1.4 |
Shares, Distribution to Kimball Electronics employees | 282,740 | ||
Shares, Spin-Off Adjustment | 297,140 | ||
Minimum | |||
Share-based Compensation Arrangements | |||
Share Based Compensation Arrangement By Share Based Payment Award Contractual Life | 1 year | ||
Maximum | |||
Share-based Compensation Arrangements | |||
Share Based Compensation Arrangement By Share Based Payment Award Contractual Life | 5 years |
Note 8. Stock Compensation Pl82
Note 8. Stock Compensation Plans - Relative Total Shareholder Return Performance Unit Activity (Details) - Relative Total Shareholder Return - $ / shares | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Outstanding, Beginning of Period | 0 | ||
Shares Granted | 30,198 | ||
Shares Vested | 0 | 0 | 0 |
Shares Forfeited | 0 | ||
Shares Outstanding, End of Period | 30,198 | 0 | |
Weighted Average Grant Date Fair Value of Shares Outstanding, Beginning of Period | $ 0 | ||
Weighted Average Grant Date Fair Value of Shares Granted | 11.48 | ||
Weighted Average Grant Date Fair Value of Shares Vested | 0 | ||
Weighted Average Grant Date Fair Value of Shares Forfeited | 0 | ||
Weighted Average Grant Date Fair Value of Shares Outstanding, End of Period | $ 11.48 | $ 0 |
Note 8. Stock Compensation Pl83
Note 8. Stock Compensation Plans - Relative Total Shareholder Return Performance Unit Textuals (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Relative Total Shareholder Return, Earned Percentage, Target | 100.00% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Relative Total Shareholder Return, Earned Percentage | 0.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Relative Total Shareholder Return, Earned Percentage | 200.00% | ||
Relative Total Shareholder Return | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Contractual Life | 2 years 5 months | ||
Unrecognized Compensation Cost | $ 0.3 | ||
Average Vesting Period for Unrecognized Compensation Cost | 2 years | ||
Weighted Average Grant Date Fair Value of Shares Granted | $ 11.48 | ||
Shares Vested | 0 | 0 | 0 |
Note 8. Stock Compensation Pl84
Note 8. Stock Compensation Plans - Restricted Share Unit Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Outstanding, Beginning of Period | 0 |
Shares Granted | 188,949 |
Shares Vested | 45,009 |
Shares Forfeited | 0 |
Shares Outstanding, End of Period | 143,940 |
Weighted Average Grant Date Fair Value of Shares Outstanding, Beginning of Period | $ 0 |
Weighted Average Grant Date Fair Value of Shares Granted | 9.15 |
Weighted Average Grant Date Fair Value of Shares Vested | 9.13 |
Weighted Average Grant Date Fair Value of Shares Forfeited | 0 |
Weighted Average Grant Date Fair Value of Shares Outstanding, End of Period | $ 9.16 |
Note 8. Stock Compensation Pl85
Note 8. Stock Compensation Plans - Restricted Share Unit Textuals (Details) - Jun. 30, 2015 - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Millions | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 0.9 |
Average Vesting Period for Unrecognized Compensation Cost | 1 year 6 months |
Weighted Average Grant Date Fair Value of Shares Granted | $ 9.15 |
Weighted Average Grant Date Fair Value of Shares Vested, Total Fair Value | $ 0.4 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Contractual Life | 1 year 4 months |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Contractual Life | 2 years 7 months |
Note 8. Stock Compensation Pl86
Note 8. Stock Compensation Plans - Unrestricted Share Grants Textuals (Details) - Unrestricted Shares - USD ($) $ / shares in Units, $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Oct. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangements | ||||
Shares Granted | 17,335 | 17,529 | 20,277 | 2,843 |
Weighted Average Grant Date Fair Value of Shares Granted | $ 16.01 | $ 8.79 | $ 11.47 | $ 11.78 |
Weighted Average Grant Date Fair Value of Shares Vested, Total Fair Value | $ 278 | $ 154 | $ 233 | $ 33 |
Note 9. Income Taxes - Textuals
Note 9. Income Taxes - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Operating Loss Carryforwards | $ 3,525 | ||
Tax Credit Carryforwards | 2,472 | ||
Valuation Allowance, Operating Loss Carryforwards | 687 | ||
Income Taxes Paid (Refunded), Net | 13,306 | $ 13,911 | $ (551) |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Income (Expense) | $ 171 | $ (25) | $ 22 |
Note 9. Income Taxes - Componen
Note 9. Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred Tax Assets: | ||
Deferred Tax Assets, Receivables | $ 1,137 | $ 1,587 |
Deferred Tax Assets, Inventory | 528 | 2,388 |
Deferred Tax Assets, Employee Benefits | 382 | 630 |
Deferred Tax Assets, Deferred Compensation | 12,810 | 24,502 |
Deferred Tax Assets, Other Current Liabilities | 134 | 619 |
Deferred Tax Assets, Warranty Reserves | 881 | 1,036 |
Deferred Tax Assets, Tax Credit Carryforwards | 2,472 | 1,883 |
Deferred Tax Assets, Restructuring | 1,017 | 0 |
Deferred Tax Assets, Goodwill | 0 | 2,597 |
Deferred Tax Assets, Net Operating Loss Carryforwards | 2,525 | 3,076 |
Deferred Tax Assets, Unrealized Currency Losses | 0 | 77 |
Deferred Tax Assets, Miscellaneous | 2,055 | 4,822 |
Deferred Tax Assets, Valuation Allowance | (687) | (787) |
Deferred Tax Assets | 23,254 | 42,430 |
Deferred Tax Liabilities: | ||
Deferred Tax Liabilities, Property and Equipment | 7,353 | 7,397 |
Deferred Tax Liabilities, Capitalized Software | 146 | 168 |
Deferred Tax Liabilities, Miscellaneous | 427 | 512 |
Deferred Tax Liabilities, Net | 7,926 | 8,077 |
Net Deferred Income Taxes | $ 15,328 | $ 34,353 |
Note 9. Income Taxes - Compon89
Note 9. Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Currently Payable (Refundable): | |||
Current Federal Income Tax Expense (Benefit) | $ 4,553 | $ 6,108 | $ (3,282) |
Current State Income Tax Expense (Benefit) | 885 | 1,118 | (139) |
Current Income Tax Expense (Benefit) | 5,438 | 7,226 | (3,421) |
Deferred Taxes: | |||
Deferred Federal Income Tax Expense (Benefit) | 616 | (4,514) | (246) |
Deferred State Income Tax Expense (Benefit) | 482 | (1,122) | (1,259) |
Deferred Income Tax Expense (Benefit) | 1,098 | (5,636) | (1,505) |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 0 | (797) | 546 |
Total provision (benefit) for income taxes from continuing operations | $ 6,536 | $ 793 | $ (4,380) |
Note 9. Income Taxes - Reconcil
Note 9. Income Taxes - Reconciliation of Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Reconciliation, Tax Provision (Benefit) Computed at U.S. Federal Statutory Rate | $ 6,188 | $ 1,474 | $ (3,848) |
Effective Income Tax Rate Reconciliation, Tax Computed at U.S. Federal Statutory Rate | 35.00% | 35.00% | 35.00% |
Income Tax Reconciliation, State Income Taxes, Net of Federal Income Tax Benefit | $ 662 | $ (45) | $ (909) |
Effective Income Tax Rate Reconciliation, State Income Taxes, Net of Federal Income Tax Benefit | 3.80% | (1.10%) | 8.30% |
Income Tax Reconciliation, Valuation Allowance | $ 0 | $ (797) | $ 546 |
Effective Income Tax Rate Reconciliation, Valuation Allowance | 0.00% | (18.90%) | (5.00%) |
Income Tax Reconciliation Tax Credit Domestic Manufacturing Deduction | $ (602) | $ (327) | $ 0 |
Effective Income Tax Rate Reconciliation, Domestic Manufacturing Deduction | (3.40%) | (7.80%) | 0.00% |
Income Tax Reconciliation, Research Credit | $ (218) | $ (115) | $ (327) |
Effective Income Tax Rate Reconciliation, Research Credit | (1.20%) | (2.70%) | 3.00% |
Income Tax Reconciliation, Spin-off costs | $ 784 | $ 422 | $ 0 |
Effective Income Tax Rate Reconciliation, Spin-off costs | 4.40% | 10.00% | 0.00% |
Income Tax Reconciliation, Unrecognized Tax Benefit, Amount | $ (851) | $ 0 | $ 0 |
Effective Tax Rate Reconciliation, Unrecognized Tax Benefit, Percent | (4.80%) | 0.00% | 0.00% |
Income Tax Reconciliation, Other-Net | $ 573 | $ 181 | $ 158 |
Effective Income Tax Rate Reconciliation, Other-Net | 3.20% | 4.30% | (1.50%) |
Total provision (benefit) for income taxes from continuing operations | $ 6,536 | $ 793 | $ (4,380) |
Effective Income Tax Rate | 37.00% | 18.80% | 39.80% |
Note 9. Income Taxes - Reconc91
Note 9. Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized Tax Benefits, Beginning Balance | $ 2,692 | $ 2,752 | $ 2,624 |
Unrecognized Tax Benefits, Additions Resulting from Prior Period Tax Positions | 351 | 415 | 207 |
Unrecognized Tax Benefits, Reductions Resulting from Prior Period Tax Positions | 0 | 0 | 0 |
Unrecognized Tax Benefits, Additions Resulting from Current Period Tax Positions | 0 | 0 | 0 |
Unrecognized Tax Benefits, Reductions Resulting from Current Period Tax Positions | 0 | 0 | 0 |
Unrecognized Tax Benefits, Reductions Resulting from Settlements with Taxing Authorities | 0 | 0 | 0 |
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | (1,123) | (475) | (79) |
Unrecognized Tax Benefits, Ending Balance | 1,920 | 2,692 | 2,752 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 1,307 | $ 2,159 | $ 2,286 |
Note 9. Income Taxes - Accrued
Note 9. Income Taxes - Accrued Interest and Penalties Related to Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | |||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 104 | $ 285 | $ 278 |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 105 | $ 95 | $ 78 |
Note 10. Common Stock - Textual
Note 10. Common Stock - Textuals (Details) | Jun. 30, 2015 |
Class A Common Stock | |
Minimum Percentage of Class A Shares to Retain Voting Rights and Dividend Preference | 15.00% |
Note 11. Fair Value - Textuals
Note 11. Fair Value - Textuals (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Gain (Loss) on Disposition of Property Plant Equipment | $ (912) | $ 1,484 | $ 181 | ||
Fair Value, Transfers Between Levels, Amount | 0 | 0 | |||
Fair Value, Purchases and Sales of Level 3 Assets | 0 | 0 | |||
Property, Plant and Equipment, Other Types | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 200 | 200 | |||
Property, Plant and Equipment, Other Types | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Impairment of Long-Lived Assets to be Disposed of | $ 1,100 | $ 1,100 | 1,200 | ||
FY 2007 Gaylord Restructuring Plan | Held for Sale Facilty and Land Related to the Gaylord, Michigan Exited Operation | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Assets, Non-recurring fair value adjustment, impairment loss | $ 300 | $ 200 |
Note 11. Fair Value - Recurring
Note 11. Fair Value - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Recurring Fair Value Measurments: | ||
Derivative Asset | $ 0 | $ 800 |
SERP investments - current asset | 1,276 | 8,812 |
Derivative Liability | 0 | 699 |
Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurments: | ||
Cash equivalents | 23,414 | 103,845 |
SERP investments - current asset | 10,353 | 23,106 |
Total assets at fair value | 33,767 | 127,751 |
Total liabilities at fair value | 0 | 699 |
Fair Value, Measurements, Recurring | Foreign Exchange Contract | ||
Recurring Fair Value Measurments: | ||
Derivative Asset | 0 | 800 |
Derivative Liability | 0 | 699 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurments: | ||
Cash equivalents | 23,414 | 103,845 |
SERP investments - current asset | 10,353 | 23,106 |
Total assets at fair value | 33,767 | 126,951 |
Total liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurments: | ||
Total assets at fair value | 0 | 800 |
Total liabilities at fair value | 0 | 699 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Foreign Exchange Contract | ||
Recurring Fair Value Measurments: | ||
Derivative Asset | 800 | |
Derivative Liability | 699 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurments: | ||
Total assets at fair value | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 |
Note 12. Derivative Instrumen96
Note 12. Derivative Instruments - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Derivatives, Fair Value | |||
Derivative Asset, Fair Value, Gross Asset | $ 0 | $ 800 | |
Derivative Gain (Loss) | 740 | (512) | $ (1,207) |
Non-operating income/expense | Stock Warrant | |||
Derivatives, Fair Value | |||
Derivative Gain (Loss) | 0 | (25) | $ (885) |
Fair Value, Measurements, Recurring | Foreign Exchange Contract | |||
Derivatives, Fair Value | |||
Derivative Asset, Fair Value, Gross Asset | 0 | $ 800 | |
Other Assets, Long Term | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Not Designated as Hedging Instrument | Stock Warrant | |||
Derivatives, Fair Value | |||
Derivative Asset, Fair Value, Gross Asset | $ 0 |
Note 12. Derivative Instrumen97
Note 12. Derivative Instruments - Fair Values of Derivative Instruments on the Consolidated Balance Sheets(Details) - Fair Value, Measurements, Fair Value Hierarchy [Domain] - Fair Value, Measurement Frequency [Domain] - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Derivatives, Fair Value | ||
Derivative Asset | $ 0 | $ 800 |
Derivative Liability | 0 | 699 |
Designated as Hedging Instrument | Foreign Exchange Contract | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative Asset | 0 | 599 |
Designated as Hedging Instrument | Foreign Exchange Contract | Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative Liability | 0 | 241 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative Asset | 0 | 201 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative Liability | $ 0 | $ 458 |
Note 12. Derivative Instrumen98
Note 12. Derivative Instruments - The Effect of Derivative Instruments on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Derivative Instruments, Gain (Loss) | |||
Derivative Instruments, Pre-Tax Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion | $ 2,513 | $ 73 | $ 1,206 |
Foreign Exchange Contract | |||
Derivative Instruments, Gain (Loss) | |||
Derivative Instruments, Pre-Tax Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion | $ 2,513 | $ 73 | $ 1,206 |
Note 12. Derivative Instrumen99
Note 12. Derivative Instruments - The Effect of Derivative Instruments on Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Derivative Instruments, Gain (Loss) | ||||
Derivatives Not Designated as Hedging Instruments, Pre-Tax Gain (Loss) Recognized in Income | $ 740 | $ (512) | $ (1,207) | |
Total Derivative Pre-Tax Gain (Loss) Recognized in Income | 2,224 | (1,699) | 929 | |
Income (Loss) from Discontinued Operations | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivative Gain (Loss) | [1] | 1,193 | (961) | |
Foreign Exchange Contract | Income (Loss) from Discontinued Operations | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives Not Designated as Hedging Instruments, Pre-Tax Gain (Loss) Recognized in Income | 740 | (487) | (322) | |
Stock Warrant | Non-operating income/expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives Not Designated as Hedging Instruments, Pre-Tax Gain (Loss) Recognized in Income | 0 | (25) | (885) | |
Cash Flow Hedging | Foreign Exchange Contract | Income (Loss) from Discontinued Operations | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivative Gain (Loss) | 1,484 | (1,187) | 2,139 | |
Derivatives, Pre-Tax Gain (Loss) Reclassified from Accumulated OCI into Income, Ineffective Portion | $ 0 | $ 0 | $ (3) | |
[1] | See Note 12 - Derivative Instruments of Notes to Consolidated Financial Statements for further information on derivative instruments. |
Note 13. Investments - Investme
Note 13. Investments - Investments-Convertible Debt and Non-Marketable Equity Securities Textuals (Details) - Common Stock - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2015 | |
Schedule of Securities | |||
Impairment losses recognized in earnings | $ 0.1 | $ 1 | |
Common Stock | |||
Schedule of Securities | |||
Non-marketable Securities, carrying value | $ 0 |
Note 13. Investments - Inves101
Note 13. Investments - Investments-Supplemental Employee Retirement Plan Investments Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Schedule of Trading Securities and Other Trading Assets | |||
Trading Securities, Change in net unrealized holding gains (losses) | $ (644) | $ (72) | $ 1,063 |
Note 13. Investments - Suppleme
Note 13. Investments - Supplemental Employee Retirement Plan Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments - current asset | $ 1,276 | $ 8,812 |
SERP investments - other long-term asset | 9,077 | 14,294 |
Total SERP investments | 10,353 | 23,106 |
SERP obligation - current liability | 1,276 | 8,812 |
SERP obligation - other long-term liability | 9,077 | 14,294 |
Total SERP obligation | $ 10,353 | $ 23,106 |
Note 14. Accrued Expenses - Acc
Note 14. Accrued Expenses - Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Compensation | $ 21,824 | $ 46,307 |
Selling | 6,418 | 6,101 |
Employer retirement contribution | 4,091 | 4,964 |
Taxes | 2,933 | 8,187 |
Insurance | 2,770 | 4,215 |
Restructuring | 2,504 | 0 |
Other expenses | 4,885 | 7,482 |
Total accrued expenses | $ 45,425 | $ 77,256 |
Note 15. Geographic Informat104
Note 15. Geographic Information - Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | $ 159,061 | $ 145,943 | $ 151,418 | $ 144,446 | $ 137,858 | $ 125,108 | $ 139,049 | $ 141,802 | $ 600,868 | $ 543,817 | $ 500,005 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 578,551 | 530,087 | 491,366 | ||||||||
Other Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | $ 22,317 | $ 13,730 | $ 8,639 |
Note 16. Earnings Per Share - E
Note 16. Earnings Per Share - Earnings Per Share from Continuing Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Dividends Declared, Basic | $ 7,705 | $ 7,527 | $ 7,450 | ||||||||
Undistributed Earnings (Loss) Continuing Operations, Basic | 3,438 | (4,108) | (14,066) | ||||||||
Income (Loss) from Continuing Operations, Basic | $ 11,143 | $ 3,419 | $ (6,616) | ||||||||
Average Number of Shares Outstanding, Basic | 38,645 | 38,404 | 38,063 | ||||||||
Dividends Declared and Assumed Dividends on Diluted Shares | $ 7,770 | $ 7,641 | $ 7,450 | ||||||||
Undistributed Earnings (Loss) from Continuing Operations, Diluted | 3,373 | (4,222) | (14,066) | ||||||||
Income (Loss) from Continuing Operations, Diluted | $ 11,143 | $ 3,419 | $ (6,616) | ||||||||
Average Number of Shares Outstanding, Diluted | 38,971 | 39,037 | 38,063 | ||||||||
Dilutive Securities, Effect on Basic Earnings Per Share, Assumed Dividends, Stock Compensation | $ 65 | $ 114 | $ 0 | ||||||||
Dilutive Securities, Effect on Basic Earnings Per Share from Continuing Operations, Undistributed Earnings, Stock Compensation | $ (65) | $ (114) | $ 0 | ||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 326 | 633 | 0 | ||||||||
Class A Common Stock | |||||||||||
Dividends Declared, Basic | $ 536 | $ 1,437 | $ 1,495 | ||||||||
Undistributed Earnings (Loss) Continuing Operations, Basic | 287 | (859) | (3,172) | ||||||||
Income (Loss) from Continuing Operations, Basic | $ 823 | $ 578 | $ (1,677) | ||||||||
Average Number of Shares Outstanding, Basic | 3,231 | 8,026 | 8,584 | ||||||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.11 | $ 0.12 | $ (0.02) | $ 0.04 | $ 0.01 | $ (0.01) | $ 0.05 | $ 0.02 | $ 0.25 | $ 0.07 | $ (0.20) |
Dividends Declared and Assumed Dividends on Diluted Shares | $ 536 | $ 1,550 | $ 1,495 | ||||||||
Undistributed Earnings (Loss) from Continuing Operations, Diluted | 280 | (936) | (3,172) | ||||||||
Income (Loss) from Continuing Operations, Diluted | $ 816 | $ 614 | $ (1,677) | ||||||||
Average Number of Shares Outstanding, Diluted | 3,231 | 8,652 | 8,584 | ||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.11 | 0.12 | (0.02) | 0.04 | 0.01 | (0.01) | 0.05 | 0.02 | $ 0.25 | $ 0.07 | $ (0.20) |
Dilutive Securities, Effect on Basic Earnings Per Share, Assumed Dividends, Stock Compensation | $ 0 | $ 113 | $ 0 | ||||||||
Dilutive Securities, Effect on Basic Earnings Per Share from Continuing Operations, Undistributed Earnings, Stock Compensation | $ (7) | $ (77) | $ 0 | ||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 626 | 0 | ||||||||
Class B Common Stock | |||||||||||
Dividends Declared, Basic | $ 7,169 | $ 6,090 | $ 5,955 | ||||||||
Undistributed Earnings (Loss) Continuing Operations, Basic | 3,151 | (3,249) | (10,894) | ||||||||
Income (Loss) from Continuing Operations, Basic | $ 10,320 | $ 2,841 | $ (4,939) | ||||||||
Average Number of Shares Outstanding, Basic | 35,414 | 30,378 | 29,479 | ||||||||
Income (Loss) from Continuing Operations, Per Basic Share | 0.12 | 0.13 | 0 | 0.04 | 0.01 | 0 | 0.06 | 0.03 | $ 0.29 | $ 0.09 | $ (0.17) |
Dividends Declared and Assumed Dividends on Diluted Shares | $ 7,234 | $ 6,091 | $ 5,955 | ||||||||
Undistributed Earnings (Loss) from Continuing Operations, Diluted | 3,093 | (3,286) | (10,894) | ||||||||
Income (Loss) from Continuing Operations, Diluted | $ 10,327 | $ 2,805 | $ (4,939) | ||||||||
Average Number of Shares Outstanding, Diluted | 35,740 | 30,385 | 29,479 | ||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.12 | $ 0.13 | $ 0 | $ 0.04 | $ 0.01 | $ 0 | $ 0.06 | $ 0.03 | $ 0.29 | $ 0.09 | $ (0.17) |
Dilutive Securities, Effect on Basic Earnings Per Share, Assumed Dividends, Stock Compensation | $ 65 | $ 1 | $ 0 | ||||||||
Dilutive Securities, Effect on Basic Earnings Per Share from Continuing Operations, Undistributed Earnings, Stock Compensation | $ (58) | $ (37) | $ 0 | ||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 326 | 7 | 0 |
Note 16. Earnings Per Share 106
Note 16. Earnings Per Share - Earnings Per Share from Discontinued Operations (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Class A Common Stock | |||
Earnings per Share from Discontinued Operations, Basic | $ 0.24 | $ 0.78 | $ 0.70 |
Earnings per Share from Discontinued Operations, Diluted | 0.24 | 0.77 | 0.70 |
Class B Common Stock | |||
Earnings per Share from Discontinued Operations, Basic | 0.24 | 0.79 | 0.70 |
Earnings per Share from Discontinued Operations, Diluted | $ 0.23 | $ 0.77 | $ 0.70 |
Note 16. Earnings Per Share 107
Note 16. Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Dividends Declared, Basic | $ 7,705 | $ 7,527 | $ 7,450 | ||||||||
Undistributed Earnings, Basic | 12,595 | 25,934 | 12,429 | ||||||||
Net Income (Loss), Basic | $ 20,300 | $ 33,461 | $ 19,879 | ||||||||
Average Number of Shares Outstanding, Basic | 38,645 | 38,404 | 38,063 | ||||||||
Dividends Declared and Assumed Dividends on Diluted Shares | $ 7,770 | $ 7,641 | $ 7,450 | ||||||||
Undistributed Earnings, Diluted | 12,530 | 25,820 | 12,429 | ||||||||
Net Income (Loss), Diluted | $ 20,300 | $ 33,461 | $ 19,879 | ||||||||
Average Number of Shares Outstanding, Diluted | 38,971 | 39,037 | 38,063 | ||||||||
Class A Common Stock | |||||||||||
Dividends Declared, Basic | $ 536 | $ 1,437 | $ 1,495 | ||||||||
Undistributed Earnings, Basic | 1,053 | 5,420 | 2,803 | ||||||||
Net Income (Loss), Basic | $ 1,589 | $ 6,857 | $ 4,298 | ||||||||
Average Number of Shares Outstanding, Basic | 3,231 | 8,026 | 8,584 | ||||||||
Basic Earnings Per Share: | $ 0.11 | $ 0.12 | $ 0.05 | $ 0.20 | $ 0.20 | $ 0.18 | $ 0.24 | $ 0.24 | $ 0.49 | $ 0.85 | $ 0.50 |
Dividends Declared and Assumed Dividends on Diluted Shares | $ 536 | $ 1,550 | $ 1,495 | ||||||||
Undistributed Earnings, Diluted | 1,039 | 5,723 | 2,803 | ||||||||
Net Income (Loss), Diluted | $ 1,575 | $ 7,273 | $ 4,298 | ||||||||
Average Number of Shares Outstanding, Diluted | 3,231 | 8,652 | 8,584 | ||||||||
Diluted Earnings Per Share: | 0.11 | 0.12 | 0.05 | 0.20 | 0.20 | 0.18 | 0.23 | 0.23 | $ 0.49 | $ 0.84 | $ 0.50 |
Class B Common Stock | |||||||||||
Dividends Declared, Basic | $ 7,169 | $ 6,090 | $ 5,955 | ||||||||
Undistributed Earnings, Basic | 11,542 | 20,514 | 9,626 | ||||||||
Net Income (Loss), Basic | $ 18,711 | $ 26,604 | $ 15,581 | ||||||||
Average Number of Shares Outstanding, Basic | 35,414 | 30,378 | 29,479 | ||||||||
Basic Earnings Per Share: | 0.12 | 0.13 | 0.07 | 0.21 | 0.21 | 0.19 | 0.24 | 0.24 | $ 0.53 | $ 0.88 | $ 0.53 |
Dividends Declared and Assumed Dividends on Diluted Shares | $ 7,234 | $ 6,091 | $ 5,955 | ||||||||
Undistributed Earnings, Diluted | 11,491 | 20,097 | 9,626 | ||||||||
Net Income (Loss), Diluted | $ 18,725 | $ 26,188 | $ 15,581 | ||||||||
Average Number of Shares Outstanding, Diluted | 35,740 | 30,385 | 29,479 | ||||||||
Diluted Earnings Per Share: | $ 0.12 | $ 0.13 | $ 0.07 | $ 0.21 | $ 0.20 | $ 0.19 | $ 0.24 | $ 0.24 | $ 0.52 | $ 0.86 | $ 0.53 |
Note 16. Earnings Per Share - T
Note 16. Earnings Per Share - Textuals (Details) | 12 Months Ended |
Jun. 30, 2013shares | |
Stock Options | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 190,000 |
Note 17. Accumulated Other C109
Note 17. Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss) | $ 2,440 | $ (3,477) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (3,434) | 4,580 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1,256) | 1,337 |
Distribution to Kimball Electronics - Accumulated Other Comprehensive Income | 3,479 | |
Current-period other comprehensive income (loss) | (1,211) | 5,917 |
Accumulated Other Comprehensive Income (Loss) | 1,229 | 2,440 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss) | 4,909 | 855 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (6,070) | 4,054 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 |
Distribution to Kimball Electronics - Accumulated Other Comprehensive Income | 1,161 | |
Current-period other comprehensive income (loss) | (4,909) | 4,054 |
Accumulated Other Comprehensive Income (Loss) | 0 | 4,909 |
Derivative Gain (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss) | (3,411) | (4,359) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 2,097 | (13) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1,193) | 961 |
Distribution to Kimball Electronics - Accumulated Other Comprehensive Income | 2,507 | |
Current-period other comprehensive income (loss) | 3,411 | 948 |
Accumulated Other Comprehensive Income (Loss) | 0 | (3,411) |
Postemployment Benefits, Prior Service Costs | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss) | (120) | (292) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 112 | 172 |
Distribution to Kimball Electronics - Accumulated Other Comprehensive Income | 8 | |
Current-period other comprehensive income (loss) | 120 | 172 |
Accumulated Other Comprehensive Income (Loss) | 0 | (120) |
Postemployment Benefits, Net Actuarial Gain (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss) | 1,062 | 319 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 539 | 539 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (175) | 204 |
Distribution to Kimball Electronics - Accumulated Other Comprehensive Income | (197) | |
Current-period other comprehensive income (loss) | 167 | 743 |
Accumulated Other Comprehensive Income (Loss) | $ 1,229 | $ 1,062 |
Note 17. Accumulated Other C110
Note 17. Accumulated Other Comprehensive Income (Loss) - Reclassification from Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amortization of prior service cost | $ (185) | $ (286) | $ (286) | |
Amortization of actuarial (gain) loss | 292 | (338) | $ (344) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,256 | (1,337) | ||
Cost of Sales | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amortization of prior service cost | [1] | (111) | (158) | |
Amortization of actuarial (gain) loss | [1] | 159 | (194) | |
Selling, General and Administrative Expenses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amortization of prior service cost | [1] | (61) | (86) | |
Amortization of actuarial (gain) loss | [1] | 120 | (91) | |
Provision (Benefit) for Income Taxes | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amortization of prior service cost | 68 | 95 | ||
Amortization of actuarial (gain) loss | (111) | 111 | ||
Net Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amortization of prior service cost | (104) | (149) | ||
Amortization of actuarial (gain) loss | 168 | (174) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,256 | 1,337 | ||
Income (Loss) from Discontinued Operations | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Derivative Gain (Loss) | [2] | 1,193 | (961) | |
Amortization of prior service cost | (8) | (23) | ||
Amortization of actuarial (gain) loss | 7 | (30) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,192 | (1,014) | ||
Income (Loss) from Continuing Operations | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 64 | $ (323) | ||
[1] | See Note 7 - Employee Benefit Plans of Notes to Consolidated Financial Statements for further information on postemployment benefit plans. | |||
[2] | See Note 12 - Derivative Instruments of Notes to Consolidated Financial Statements for further information on derivative instruments. |
Note 18. Restructuring Expen111
Note 18. Restructuring Expense - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Restructuring Expense and Other Related Items | |||||||||
Restructuring Expense | $ 1,567 | $ 388 | $ 3,335 | $ 0 | $ 5,290 | $ 0 | $ 0 | ||
Gain (Loss) on Disposition of Property Plant Equipment | (912) | 1,484 | 181 | ||||||
Restructuring and Related Cost, Expected Cost | 9,937 | $ 9,937 | |||||||
Percentage of Restructuring Costs Expected in Cash | 90.00% | ||||||||
Restructuring Charges, Discontinued Operations | $ 0 | 400 | $ 400 | ||||||
Transition and Other Employee Costs | |||||||||
Restructuring Expense and Other Related Items | |||||||||
Restructuring and Related Cost, Expected Cost | 6,000 | 6,000 | |||||||
Plant Closure and Other Exit Costs | |||||||||
Restructuring Expense and Other Related Items | |||||||||
Restructuring and Related Cost, Expected Cost | 2,900 | 2,900 | |||||||
Asset Write-Downs | |||||||||
Restructuring Expense and Other Related Items | |||||||||
Restructuring and Related Cost, Expected Cost | 1,000 | 1,000 | |||||||
FY 2015 Post Falls Restructuring Plan | |||||||||
Restructuring Expense and Other Related Items | |||||||||
Anticipated Property Plant and Equipment Additions | 3,000 | ||||||||
Anticipated Short Term Pretax Operating Income Savings | 0 | ||||||||
Anticipated Annual Pre-tax Operating Income Savings | 5,000 | ||||||||
Restructuring and Related Cost, Expected Cost | 8,891 | 8,891 | |||||||
FY 2015 Post Falls Restructuring Plan | Transition and Other Employee Costs | |||||||||
Restructuring Expense and Other Related Items | |||||||||
Restructuring and Related Cost, Expected Cost | 5,797 | 5,797 | |||||||
FY 2015 Post Falls Restructuring Plan | Plant Closure and Other Exit Costs | |||||||||
Restructuring Expense and Other Related Items | |||||||||
Restructuring and Related Cost, Expected Cost | 2,912 | 2,912 | |||||||
FY 2015 Post Falls Restructuring Plan | Asset Write-Downs | |||||||||
Restructuring Expense and Other Related Items | |||||||||
Restructuring and Related Cost, Expected Cost | 182 | 182 | |||||||
FY 2015 Plane Fleet Reduction | |||||||||
Restructuring Expense and Other Related Items | |||||||||
Anticipated Annual Pre-tax Operating Income Savings | 800 | ||||||||
Restructuring and Related Cost, Expected Cost | 1,046 | 1,046 | |||||||
FY 2015 Plane Fleet Reduction | Transition and Other Employee Costs | |||||||||
Restructuring Expense and Other Related Items | |||||||||
Restructuring and Related Cost, Expected Cost | 224 | 224 | |||||||
FY 2015 Plane Fleet Reduction | Asset Write-Downs | |||||||||
Restructuring Expense and Other Related Items | |||||||||
Restructuring and Related Cost, Expected Cost | $ 822 | 822 | |||||||
Property, Plant and Equipment, Other Types | |||||||||
Restructuring Expense and Other Related Items | |||||||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 200 | 200 | |||||||
Fair Value, Measurements, Nonrecurring | Property, Plant and Equipment, Other Types | |||||||||
Restructuring Expense and Other Related Items | |||||||||
Impairment of Long-Lived Assets to be Disposed of | $ 1,100 | $ 1,100 | $ 1,200 |
Note 18. Restructuring Expen112
Note 18. Restructuring Expense - Restructuring Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | |||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | $ 2,613 | [1] | $ 0 | |
Amounts Charged Cash | 4,337 | |||
Amounts Charged Non-cash | 953 | |||
Amounts Utilized/Cash Paid | (2,677) | |||
Restructuring and Related Cost, Cost Incurred to Date | 5,290 | |||
Restructuring and Related Cost, Expected Cost | 9,937 | |||
FY 2015 Post Falls Restructuring Plan | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | 2,613 | [1] | 0 | |
Amounts Charged Cash | 4,113 | |||
Amounts Charged Non-cash | 131 | |||
Amounts Utilized/Cash Paid | (1,631) | |||
Restructuring and Related Cost, Cost Incurred to Date | 4,244 | |||
Restructuring and Related Cost, Expected Cost | 8,891 | |||
FY 2015 Plane Fleet Reduction | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | 0 | [1] | 0 | |
Amounts Charged Cash | 224 | |||
Amounts Charged Non-cash | 822 | |||
Amounts Utilized/Cash Paid | (1,046) | |||
Restructuring and Related Cost, Cost Incurred to Date | 1,046 | |||
Restructuring and Related Cost, Expected Cost | 1,046 | |||
Transition and Other Employee Costs | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Expected Cost | 6,000 | |||
Transition and Other Employee Costs | FY 2015 Post Falls Restructuring Plan | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | 2,613 | [1] | 0 | |
Amounts Charged Cash | 2,657 | |||
Amounts Charged Non-cash | 0 | |||
Amounts Utilized/Cash Paid | (44) | |||
Restructuring and Related Cost, Cost Incurred to Date | 2,657 | |||
Restructuring and Related Cost, Expected Cost | 5,797 | |||
Transition and Other Employee Costs | FY 2015 Plane Fleet Reduction | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | 0 | [1] | 0 | |
Amounts Charged Cash | 224 | |||
Amounts Charged Non-cash | 0 | |||
Amounts Utilized/Cash Paid | (224) | |||
Restructuring and Related Cost, Cost Incurred to Date | 224 | |||
Restructuring and Related Cost, Expected Cost | 224 | |||
Asset Write-Downs | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Expected Cost | 1,000 | |||
Asset Write-Downs | FY 2015 Post Falls Restructuring Plan | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | 0 | [1] | 0 | |
Amounts Charged Cash | 0 | |||
Amounts Charged Non-cash | 131 | |||
Amounts Utilized/Cash Paid | (131) | |||
Restructuring and Related Cost, Cost Incurred to Date | 131 | |||
Restructuring and Related Cost, Expected Cost | 182 | |||
Asset Write-Downs | FY 2015 Plane Fleet Reduction | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | 0 | [1] | 0 | |
Amounts Charged Cash | 0 | |||
Amounts Charged Non-cash | 822 | |||
Amounts Utilized/Cash Paid | (822) | |||
Restructuring and Related Cost, Cost Incurred to Date | 822 | |||
Restructuring and Related Cost, Expected Cost | 822 | |||
Plant Closure and Other Exit Costs | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Expected Cost | 2,900 | |||
Plant Closure and Other Exit Costs | FY 2015 Post Falls Restructuring Plan | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | 0 | [1] | $ 0 | |
Amounts Charged Cash | 1,456 | |||
Amounts Charged Non-cash | 0 | |||
Amounts Utilized/Cash Paid | (1,456) | |||
Restructuring and Related Cost, Cost Incurred to Date | 1,456 | |||
Restructuring and Related Cost, Expected Cost | 2,912 | |||
Other Current Liabilities | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | [1] | 2,500 | ||
Other Noncurrent Liabilities | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | $ 100 | |||
[1] | (1)The accrued restructuring balance at JuneĀ 30, 2015 includes $2.5 million recorded in current liabilities and $0.1 million recorded in other long-term liabilities. |
Note 19. Variable Interest E113
Note 19. Variable Interest Entities - Textuals (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Related Allowance | $ 638,000 | $ 638,000 |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | ||
Variable Interest Entity | ||
Variable Interest Entity, Obligation to Provide Additional Funding, Amount | 0 | |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | Notes Receivable | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 900,000 | 900,000 |
Variable Interest Entity, Nonconsolidated, Related Allowance | $ 500,000 | $ 500,000 |
Note 20. Credit Quality and 114
Note 20. Credit Quality and Allowance for Credit Losses of Notes Receivable - Textuals (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Notes Receivable | ||
Notes Receivable | ||
Notes Receivable, Past Due | $ 0 | $ 0 |
Note 20. Credit Quality and 115
Note 20. Credit Quality and Allowance for Credit Losses of Notes Receivable - Credit Quality and Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Notes Receivable | ||
Notes Receivable, Unpaid Balance | $ 1,786 | $ 1,615 |
Notes Receivable, Related Allowance | 638 | 638 |
Notes Receivable, Net of Allowance | 1,148 | 977 |
Notes Receivable | Note Receivable From Sale of Indiana Facility | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 1,347 | 1,392 |
Notes Receivable, Related Allowance | 489 | 489 |
Notes Receivable, Net of Allowance | 858 | 903 |
Notes Receivable | Other Notes Receivable | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 439 | 223 |
Notes Receivable, Related Allowance | 149 | 149 |
Notes Receivable, Net of Allowance | $ 290 | $ 74 |
Note 21. Quarterly Financial116
Note 21. Quarterly Financial Information (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net Sales | $ 159,061 | $ 145,943 | $ 151,418 | $ 144,446 | $ 137,858 | $ 125,108 | $ 139,049 | $ 141,802 | $ 600,868 | $ 543,817 | $ 500,005 |
Gross Profit | 51,079 | 44,007 | 46,596 | 47,183 | 42,056 | 36,617 | 45,806 | 42,246 | 188,865 | 166,725 | 140,376 |
Restructuring Expense | 1,567 | 388 | 3,335 | 0 | 5,290 | 0 | 0 | ||||
Income (Loss) from Continuing Operations | 4,745 | 4,882 | (1) | 1,517 | 359 | (37) | 2,088 | 1,009 | 11,143 | 3,419 | (6,616) |
Net Income (Loss) | $ 4,745 | $ 4,882 | $ 2,677 | $ 7,996 | $ 7,848 | $ 7,208 | $ 9,222 | $ 9,183 | $ 20,300 | $ 33,461 | $ 19,879 |
Class A Common Stock | |||||||||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.11 | $ 0.12 | $ (0.02) | $ 0.04 | $ 0.01 | $ (0.01) | $ 0.05 | $ 0.02 | $ 0.25 | $ 0.07 | $ (0.20) |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.11 | 0.12 | (0.02) | 0.04 | 0.01 | (0.01) | 0.05 | 0.02 | 0.25 | 0.07 | (0.20) |
Basic Earnings Per Share: | 0.11 | 0.12 | 0.05 | 0.20 | 0.20 | 0.18 | 0.24 | 0.24 | 0.49 | 0.85 | 0.50 |
Diluted Earnings Per Share: | 0.11 | 0.12 | 0.05 | 0.20 | 0.20 | 0.18 | 0.23 | 0.23 | 0.49 | 0.84 | 0.50 |
Class B Common Stock | |||||||||||
Income (Loss) from Continuing Operations, Per Basic Share | 0.12 | 0.13 | 0 | 0.04 | 0.01 | 0 | 0.06 | 0.03 | 0.29 | 0.09 | (0.17) |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.12 | 0.13 | 0 | 0.04 | 0.01 | 0 | 0.06 | 0.03 | 0.29 | 0.09 | (0.17) |
Basic Earnings Per Share: | 0.12 | 0.13 | 0.07 | 0.21 | 0.21 | 0.19 | 0.24 | 0.24 | 0.53 | 0.88 | 0.53 |
Diluted Earnings Per Share: | $ 0.12 | $ 0.13 | $ 0.07 | $ 0.21 | $ 0.20 | $ 0.19 | $ 0.24 | $ 0.24 | $ 0.52 | $ 0.86 | $ 0.53 |
Schedule II Valuation and Qu117
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Short-Term Receivables | |||
Movement in Valuation Allowances [Roll Forward] | |||
Valuation Allowances, Balance at Beginning of Year | $ 2,345 | $ 2,791 | $ 1,367 |
Valuation Allowances, Additions to Expense | 198 | (20) | 1,663 |
Valuation Allowances, Adjustments to Other Accounts | (65) | (149) | 15 |
Valuation Allowances, Write-offs and Recoveries | (604) | (277) | (254) |
Valuation Allowances, Impact of Spin-Off | (352) | 0 | 0 |
Valuation Allowances, Balance at End of Year | 1,522 | 2,345 | 2,791 |
Long-Term Notes Receivable | |||
Movement in Valuation Allowances [Roll Forward] | |||
Valuation Allowances, Balance at Beginning of Year | 628 | 0 | |
Valuation Allowances, Additions to Expense | (10) | 628 | |
Valuation Allowances, Adjustments to Other Accounts | 0 | 0 | |
Valuation Allowances, Write-offs and Recoveries | 0 | 0 | |
Valuation Allowances, Impact of Spin-Off | 0 | 0 | |
Valuation Allowances, Balance at End of Year | 618 | 628 | 0 |
Deferred Tax Asset | |||
Movement in Valuation Allowances [Roll Forward] | |||
Valuation Allowances, Balance at Beginning of Year | 787 | 2,315 | 1,911 |
Valuation Allowances, Additions to Expense | 0 | 0 | 408 |
Valuation Allowances, Adjustments to Other Accounts | 0 | 0 | 0 |
Valuation Allowances, Write-offs and Recoveries | (100) | (1,528) | (4) |
Valuation Allowances, Impact of Spin-Off | 0 | 0 | 0 |
Valuation Allowances, Balance at End of Year | $ 687 | $ 787 | $ 2,315 |