Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Dec. 31, 2015 | Jan. 22, 2016 | |
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-Q | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 297,799 | |
Class B Common Stock | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 37,141,350 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 26,090 | $ 34,661 |
Receivables, net of allowances of $1,330 and $1,522, respectively | 48,734 | 55,710 |
Inventories | 46,693 | 37,634 |
Prepaid expenses and other current assets | 19,479 | 23,548 |
Total current assets | 140,996 | 151,553 |
Property and Equipment, net of accumulated depreciation of $200,387 and $197,500, respectively | 96,577 | 97,163 |
Intangible Assets, net of accumulated amortization of $35,778 and $35,447, respectively | 2,984 | 2,669 |
Other Assets | 14,956 | 14,744 |
Total Assets | 255,513 | 266,129 |
Current Liabilities: | ||
Current maturities of long-term debt | 29 | 27 |
Accounts payable | 37,473 | 41,170 |
Customer deposits | 15,919 | 18,618 |
Dividends payable | 2,102 | 1,921 |
Accrued expenses | 40,360 | 45,425 |
Total current liabilities | 95,883 | 107,161 |
Other Liabilities: | ||
Long-term debt, less current maturities | 217 | 241 |
Other | 16,892 | 17,222 |
Total other liabilities | 17,109 | 17,463 |
Common stock-par value $0.05 per share: | ||
Additional paid-in capital | 2,610 | 3,445 |
Retained earnings | 200,217 | 194,372 |
Accumulated other comprehensive income | 1,268 | 1,229 |
Less: Treasury stock, at cost, 5,601,000 shares and 5,111,000 shares, respectively | (63,725) | (59,692) |
Total Share Owners' Equity | 142,521 | 141,505 |
Total Liabilities and Share Owners' Equity | 255,513 | 266,129 |
Class A Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | 15 | 19 |
Class B Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | $ 2,136 | $ 2,132 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets Parentheticals - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
ASSETS | ||
Accounts and Notes Receivable Allowances | $ 1,330 | $ 1,522 |
Property and Equipment Accumulated Depreciation | 200,387 | 197,500 |
Intangible Assets Accumulated Amortization | $ 35,778 | $ 35,447 |
Class A Common Stock | ||
Share Owners' Equity | ||
Common Stock, Par Value Per Share | $ 0.05 | $ 0.05 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 299,000 | 386,000 |
Class B Common Stock | ||
Share Owners' Equity | ||
Common Stock, Par Value Per Share | $ 0.05 | $ 0.05 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 42,726,000 | 42,639,000 |
Treasury Stock, Shares | 5,601,000 | 5,111,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Sales | $ 163,819 | $ 151,418 | $ 320,388 | $ 295,864 |
Cost of Sales | 110,551 | 104,822 | 216,038 | 202,085 |
Gross Profit | 53,268 | 46,596 | 104,350 | 93,779 |
Selling and Administrative Expenses | 41,236 | 43,422 | 81,407 | 86,927 |
Restructuring Expense | 2,014 | 3,335 | 3,200 | 3,335 |
Operating Income (Loss) | 10,018 | (161) | 19,743 | 3,517 |
Other Income (Expense): | ||||
Interest income | 45 | 50 | 116 | 91 |
Interest expense | (5) | (6) | (11) | (12) |
Non-operating income (expense), net | 201 | 183 | (488) | (150) |
Other income (expense), net | 241 | 227 | (383) | (71) |
Income from Continuing Operations Before Taxes on Income | 10,259 | 66 | 19,360 | 3,446 |
Provision for Income Taxes | 3,757 | 67 | 7,236 | 1,930 |
Income (Loss) from Continuing Operations | 6,502 | (1) | 12,124 | 1,516 |
Income from Discontinued Operations, Net of Tax | 0 | 2,678 | 0 | 9,157 |
Net Income | $ 6,502 | $ 2,677 | $ 12,124 | $ 10,673 |
Basic Earnings Per Share: | ||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.17 | $ 0.32 | ||
Earnings (Loss) Per Share, Basic | 0.17 | 0.32 | ||
Diluted Earnings Per Share: | ||||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.17 | 0.32 | ||
Earnings (Loss) Per Share, Diluted | 0.17 | 0.32 | ||
Dividends Per Share of Common Stock: | ||||
Dividends Per Share of Common Stock, Declared | $ 0.055 | $ 0.110 | ||
Average Number of Shares Outstanding: | ||||
Average Number of Shares Outstanding, Basic | 37,421 | 38,862 | 37,468 | 38,786 |
Average Number of Shares Outstanding, Diluted | 37,617 | 38,862 | 37,848 | 38,892 |
Class A Common Stock | ||||
Basic Earnings Per Share: | ||||
Income (Loss) from Continuing Operations, Per Basic Share | $ (0.02) | $ 0.02 | ||
Earnings (Loss) Per Share, Basic | 0.05 | 0.26 | ||
Diluted Earnings Per Share: | ||||
Income (Loss) from Continuing Operations, Per Diluted Share | (0.02) | 0.02 | ||
Earnings (Loss) Per Share, Diluted | 0.05 | 0.26 | ||
Dividends Per Share of Common Stock: | ||||
Dividends Per Share of Common Stock, Declared | 0.050 | 0.095 | ||
Class B Common Stock | ||||
Basic Earnings Per Share: | ||||
Income (Loss) from Continuing Operations, Per Basic Share | 0 | 0.04 | ||
Earnings (Loss) Per Share, Basic | 0.07 | 0.28 | ||
Diluted Earnings Per Share: | ||||
Income (Loss) from Continuing Operations, Per Diluted Share | 0 | 0.04 | ||
Earnings (Loss) Per Share, Diluted | 0.07 | 0.28 | ||
Dividends Per Share of Common Stock: | ||||
Dividends Per Share of Common Stock, Declared | $ 0.050 | $ 0.100 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 6,502 | $ 2,677 | $ 12,124 | $ 10,673 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, Pre-tax | 0 | (484) | 0 | (6,070) |
Foreign currency translation adjustments, Tax | 0 | 0 | 0 | 0 |
Foreign currency translation adjustments, Net of Tax | 0 | (484) | 0 | (6,070) |
Postemployment severance actuarial change, Pre-tax | 49 | 305 | 283 | 653 |
Postemployment severance actuarial change, Tax | (19) | (122) | (110) | (260) |
Postemployment severance actuarial change, Net of Tax | 30 | 183 | 173 | 393 |
Derivative gain (loss), Pre-tax | 0 | 282 | 0 | 2,513 |
Derivative gain (loss), Tax | 0 | (68) | 0 | (416) |
Derivative gain (loss), Net of Tax | 0 | 214 | 0 | 2,097 |
Reclassification to (earnings) loss: | ||||
Derivatives, Reclassification to (earnings) loss, Pre-tax | 0 | (130) | 0 | (1,484) |
Derivatives, Reclassification to (earnings) loss, Tax | 0 | 16 | 0 | 291 |
Derivatives, Reclassification to (earnings) loss, Net of Tax | 0 | (114) | 0 | (1,193) |
Amortization of prior service cost, Pre-tax | 0 | 65 | 0 | 136 |
Amortization of prior service cost, Tax | 0 | (26) | 0 | (54) |
Amortization of prior service cost, Net of Tax | 0 | 39 | 0 | 82 |
Amortization of actuarial change, Pre-tax | (105) | (97) | (219) | (77) |
Amortization of actuarial change, Tax | 41 | 39 | 85 | 31 |
Amortization of actuarial change, Net of Tax | (64) | (58) | (134) | (46) |
Other comprehensive income (loss), Pre-tax | (56) | (59) | 64 | (4,329) |
Other comprehensive income (loss), Tax | 22 | (161) | (25) | (408) |
Other comprehensive income (loss), Net of Tax | (34) | (220) | 39 | (4,737) |
Total comprehensive income (loss) | $ 6,468 | $ 2,457 | $ 12,163 | $ 5,936 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows From Operating Activities: | ||
Net income | $ 12,124 | $ 10,673 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,398 | 13,071 |
Loss on sales of assets | 105 | 646 |
Restructuring and asset impairment charges | 52 | 1,132 |
Deferred income tax and other deferred charges | 491 | 634 |
Stock-based compensation | 2,939 | 4,506 |
Excess tax benefits from stock-based compensation | (301) | (1,157) |
Other, net | (37) | 2,668 |
Change in operating assets and liabilities: | ||
Receivables | 7,068 | (10,259) |
Inventories | (9,059) | (17,954) |
Prepaid expenses and other current assets | 2,560 | (8,515) |
Accounts payable | (1,142) | 10,604 |
Customer deposits | (2,699) | 3,001 |
Accrued expenses | (4,242) | (7,283) |
Net cash provided by operating activities | 15,257 | 1,767 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (8,191) | (18,504) |
Proceeds from sales of assets | 59 | 624 |
Purchases of capitalized software | (704) | (865) |
Other, net | (158) | 71 |
Net cash used for investing activities | (8,994) | (18,674) |
Cash Flows From Financing Activities: | ||
Transfer of cash and cash equivalents to Kimball Electronics, Inc. | 0 | (63,006) |
Net change in capital leases and long-term debt | (22) | (20) |
Dividends paid to Share Owners | (3,961) | (3,786) |
Repurchases of common stock | (9,665) | 0 |
Excess tax benefits from stock-based compensation | 301 | 1,157 |
Repurchase of employee shares for tax withholding | (1,487) | (3,823) |
Net cash used for financing activities | (14,834) | (69,478) |
Effect of Exchange Rate Change on Cash and Cash Equivalents | 0 | (1,246) |
Net Decrease in Cash and Cash Equivalents | (8,571) | (87,631) |
Cash and Cash Equivalents at Beginning of Period | 34,661 | 136,624 |
Cash and Cash Equivalents at End of Period | 26,090 | 48,993 |
Cash paid during the period for: | ||
Income taxes | 3,738 | 10,661 |
Interest expense | $ 11 | $ 30 |
Note 1. Basis of Presentation
Note 1. Basis of Presentation | 6 Months Ended |
Dec. 31, 2015 | |
Basis of Presentation [Abstract] | |
Business Description and Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Kimball International, Inc. (the “Company,” “Kimball,” “we,” “us,” or “our”) have been prepared in accordance with the instructions to Form 10-Q. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted, although we believe that the disclosures are adequate to make the information presented not misleading. Intercompany transactions and balances have been eliminated. Management believes the financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly the financial statements for the interim periods. The results of operations for the interim periods shown in this report are not necessarily indicative of results for any future interim period or for the entire fiscal year. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in our latest annual report on Form 10-K. |
Note 2. Spin-Off Transaction
Note 2. Spin-Off Transaction | 6 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | Spin-Off Transaction On October 31, 2014 (“Distribution Date”), we completed the spin-off of our Electronic Manufacturing Services (“EMS”) segment by distributing the related shares of Kimball Electronics, Inc. (“Kimball Electronics”), on a pro rata basis, to the Company's Share Owners of record as of October 22, 2014. 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 “KBAL” and Kimball Electronics, Inc. trades on the NASDAQ under the ticker symbol “KE”. The EMS segment was reclassified to discontinued operations in the Condensed Consolidated Statements of Income. Financial results of the discontinued operations were as follows: Three Months Ended Six Months Ended December 31 December 31 (Amounts in Thousands, Except Per Share Data) 2015 2014 2015 2014 Net Sales $ — $ 71,748 $ — $ 275,551 Income Before Taxes on Income $ — $ 3,599 $ — $ 13,098 Provision for Income Taxes $ — $ 921 $ — $ 3,941 Income from Discontinued Operations, Net of Tax $ — $ 2,678 $ — $ 9,157 Income From Discontinued Operations per Diluted Share $ — $ 0.07 $ — $ 0.24 |
Note 3. Recent Accounting Prono
Note 3. Recent Accounting Pronouncements and Supplemental Information | 6 Months Ended |
Dec. 31, 2015 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | |
Recent Accounting Pronouncements and Supplemental Information | Recent Accounting Pronouncements: In January 2016, the Financial Accounting Standards Board (“FASB”) issued guidance which is intended to improve the recognition and measurement of financial instruments. The guidance revises an entity's accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The guidance also amends certain disclosure requirements associated with the fair value of financial instruments. The guidance is effective prospectively for our first quarter of fiscal year 2019 financial statements with early adoption allowed on certain provisions. We have not yet selected a transition method nor determined the effect of this guidance on our consolidated financial statements. In November 2015, the FASB issued guidance on simplifying the balance sheet classification of deferred taxes. The guidance requires the classification of deferred tax assets and liabilities as noncurrent in a classified balance sheet. The current requirement that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not affected by this update. The guidance is effective for our first quarter of fiscal year 2018 financial statements with early adoption permitted, and allows for the use of either a prospective or retrospective transition method. We plan to early adopt using the prospective transition method for our fiscal year ending June 30, 2016, and will reclassify any current deferred tax assets or liabilities to noncurrent in our consolidated financial position. In July 2015, the FASB issued guidance on simplifying the measurement of inventory which applies to inventory that is measured using first-in, first-out (“FIFO”) 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, first-out (“LIFO”) 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 therefore the adoption will not have a material effect on our consolidated financial statements. In April 2015, the FASB issued guidance on customer’s 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 was effective prospectively for disposals or components of our business classified as held for sale beginning in our first quarter of fiscal year 2016. The adoption did not have a material effect on our consolidated financial statements. Notes Receivable and Trade Accounts Receivable: 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. Income Taxes: In determining the quarterly provision for income taxes, we use an estimated annual effective tax rate which is based on expected annual income, statutory tax rates, and available tax planning opportunities in the various jurisdictions in which we operate. Unusual or infrequently occurring items are separately recognized in the quarter in which they occur. Our 36.6% effective tax rate for the second quarter of fiscal year 2016 did not include any material unusual items. The second quarter fiscal year 2015 effective tax rate of 101.5% was primarily driven by a lower combined state tax rate post spin-off, requiring a $0.4 million unfavorable adjustment to deferred taxes. This impact had a large effect on the effective tax rate due to the relatively low level of pre-tax income in the second quarter of fiscal year 2015. Our effective tax rate for the first half of fiscal year 2016 of 37.4% did not include any material unusual items. Our effective tax rate for the first half of fiscal year 2015 of 56.0% was unfavorably impacted as our combined state tax rate was lower post spin-off, requiring a $0.4 million adjustment to deferred taxes in the second quarter of fiscal year 2015 which increased our fiscal 2015 year-to-date tax expense and effective tax rate. In addition, a portion of our spin-off expenses which are nondeductible also unfavorably impacted the fiscal 2015 year-to-date tax rate. Non-operating Income (Expense), net: The non-operating income (expense), net line item includes the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, foreign currency rate movements, non-production rent income, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain (loss) on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. Components of the Non-operating income (expense), net line, from continuing operations were: Three Months Ended Six Months Ended December 31 December 31 (Amounts in Thousands) 2015 2014 2015 2014 Foreign Currency Loss $ (17 ) $ (17 ) $ (40 ) $ (42 ) Gain (Loss) on Supplemental Employee Retirement Plan Investments 297 352 (278 ) 166 Other (79 ) (152 ) (170 ) (274 ) Non-operating income (expense), net $ 201 $ 183 $ (488 ) $ (150 ) |
Note 4. Inventories
Note 4. Inventories | 6 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Inventory Disclosure | Inventories Inventory components were as follows: (Amounts in Thousands) December 31, 2015 June 30, Finished products $ 33,217 $ 26,634 Work-in-process 2,546 1,952 Raw materials 24,531 23,201 Total FIFO inventory 60,294 51,787 LIFO reserve (13,601 ) (14,153 ) Total inventory $ 46,693 $ 37,634 For interim reporting, LIFO inventories are computed based on quantities as of the end of the quarter and interim changes in price levels. Changes in quantities and price levels are reflected in the interim financial statements in the period in which they occur, except in cases where LIFO inventory liquidations are expected to be reinstated by fiscal year end. The earnings impact of LIFO inventory liquidations during the three and six -month periods ended December 31, 2015 and 2014 was immaterial. |
Note 5. Accumulated Other Compr
Note 5. Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) During the three months ended December 31, 2015 and 2014 , the changes in the balances of each component of Accumulated Other Comprehensive Income (Loss), net of tax, were as follows: Accumulated Other Comprehensive Income (Loss) 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 September 30, 2015 $ — $ — $ — $ 1,302 $ 1,302 Other comprehensive income (loss) before reclassifications — — — 30 30 Reclassification to (earnings) loss — — — (64 ) (64 ) Net current-period other comprehensive income (loss) — — — (34 ) (34 ) Balance at December 31, 2015 $ — $ — $ — $ 1,268 $ 1,268 Balance at September 30, 2014 $ (677 ) $ (2,607 ) $ (77 ) $ 1,284 $ (2,077 ) Other comprehensive income (loss) before reclassifications (484 ) 214 — 183 (87 ) Reclassification to (earnings) loss — (114 ) 39 (58 ) (133 ) Distribution of Kimball Electronics, Inc. 1,161 2,507 8 (197 ) 3,479 Net current-period other comprehensive income (loss) 677 2,607 47 (72 ) 3,259 Balance at December 31, 2014 $ — $ — $ (30 ) $ 1,212 $ 1,182 During the six months ended December 31, 2015 and 2014 , the changes in the balances of each component of Accumulated Other Comprehensive Income (Loss), net of tax, were as follows: Accumulated Other Comprehensive Income (Loss) 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, 2015 $ — $ — $ — $ 1,229 $ 1,229 Other comprehensive income (loss) before reclassifications — — — 173 173 Reclassification to (earnings) loss — — — (134 ) (134 ) Net current-period other comprehensive income (loss) — — — 39 39 Balance at December 31, 2015 $ — $ — $ — $ 1,268 $ 1,268 Balance at June 30, 2014 $ 4,909 $ (3,411 ) $ (120 ) $ 1,062 $ 2,440 Other comprehensive income (loss) before reclassifications (6,070 ) 2,097 — 393 (3,580 ) Reclassification to (earnings) loss — (1,193 ) 82 (46 ) (1,157 ) Distribution of Kimball Electronics, Inc. 1,161 2,507 8 (197 ) 3,479 Net current-period other comprehensive income (loss) (4,909 ) 3,411 90 150 (1,258 ) Balance at December 31, 2014 $ — $ — $ (30 ) $ 1,212 $ 1,182 The following reclassifications were made from Accumulated Other Comprehensive Income (Loss) to the Condensed Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income (Loss) Three Months Ended Six Months Ended Affected Line Item in the Condensed Consolidated Statements of Income December 31, December 31, (Amounts in Thousands) 2015 2014 2015 2014 Derivative Gain (Loss) (1) $ — $ 114 $ — $ 1,193 Income from Discontinued Operations, Net of Tax Postemployment Benefits: Amortization of Prior Service Costs (2) $ — $ (40 ) $ — $ (79 ) Cost of Sales — (21 ) — (43 ) Selling and Administrative Expenses — 24 — 48 Provision for Income Taxes — (37 ) — (74 ) Income (Loss) from Continuing Operations $ — $ (2 ) $ — $ (8 ) Income from Discontinued Operations, Net of Tax Amortization of Actuarial Gain (Loss) (2) $ 66 $ 48 $ 143 $ 30 Cost of Sales 39 38 76 34 Selling and Administrative Expenses (41 ) (34 ) (85 ) (25 ) Provision for Income Taxes 64 52 134 39 Income (Loss) from Continuing Operations $ — $ 6 $ — $ 7 Income from Discontinued Operations, Net of Tax Total Reclassifications for the Period $ 64 $ 15 $ 134 $ (35 ) Income (Loss) from Continuing Operations — 118 — 1,192 Income from Discontinued Operations, Net of Tax $ 64 $ 133 $ 134 $ 1,157 Net Income Amounts in parentheses indicate reductions to income. (1) See Note 9 - Derivative Instruments of Notes to Condensed Consolidated Financial Statements for further information on derivative instruments. (2) See Note 11 - Postemployment Benefits of Notes to Condensed Consolidated Financial Statements for further information on postemployment benefit plans. |
Note 6. Commitments and Conting
Note 6. Commitments and Contingent Liabilities | 6 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingent Liabilities Standby letters of credit are issued to third-party suppliers, lessors, and insurance institutions and can only be drawn upon in the event of Kimball's failure to pay its obligations to a beneficiary. As of December 31, 2015 , we had a maximum financial exposure from unused standby letters of credit totaling $1.0 million . 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 December 31, 2015 with respect to the standby letters of credit. Kimball also enters into commercial letters of credit to facilitate payments to vendors and from customers. 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 in cases where specific warranty issues become known. Changes in the product warranty accrual for the six months ended December 31, 2015 and 2014 were as follows: Six Months Ended December 31 (Amounts in Thousands) 2015 2014 Product Warranty Liability at the beginning of the period $ 2,264 $ 3,221 Additions to warranty accrual (including changes in estimates) 717 475 Settlements made (in cash or in kind) (514 ) (374 ) Distribution of Kimball Electronics, Inc. — (910 ) Product Warranty Liability at the end of the period $ 2,467 $ 2,412 |
Note 7. Restructuring Expense
Note 7. Restructuring Expense | 6 Months Ended |
Dec. 31, 2015 | |
Restructuring Expense [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring Expense We recognized pre-tax restructuring expense of $2.0 million and $3.2 million in the three and six months ended December 31, 2015 , respectively, and recognized $3.3 million restructuring expense in both the three and six months ended December 31, 2014 . We utilize available market prices and management estimates to determine the fair value of impaired fixed assets. Restructuring charges are included in the Restructuring Expense line item on the Company's Condensed 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 Idaho 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 located in southern Indiana. The manufacturing capacity realignment is being 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 $1.6 million for future capital investments to support the transfer of production to Indiana. We anticipate pre-tax savings of approximately $5 million per year after the plan is fully implemented by June 2016, which is three months earlier than the original plan. A majority of the savings will not be realized until the plan is complete. The reduction of our plane fleet from two jets to one reduced 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 began realizing the 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 $10.3 million with $8.5 million recorded since the plan was announced with the remainder expected to be incurred over the remaining anticipated transition period. The restructuring charges are expected to consist of approximately $4.1 million of transition and other employee costs, $5.2 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, 2015 Six Months Ended December 31, 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 December 31, 2015 (1) Capacity Realignment and Post Falls, Idaho Exit Transition and Other Employee Costs $ 2,613 $ 715 $ — $ (525 ) $ 2,803 $ 3,372 $ 3,864 Asset Write-downs — — 52 (52 ) — 183 209 Plant Closure and Other Exit Costs — 2,433 — (2,353 ) 80 3,889 5,215 Total $ 2,613 $ 3,148 $ 52 $ (2,930 ) $ 2,883 $ 7,444 $ 9,288 Plane Fleet Reduction Transition and Other Employee Costs $ — $ — $ — $ — $ — $ 224 $ 224 Asset Write-downs — — — — — 822 822 Total $ — $ — $ — $ — $ — $ 1,046 $ 1,046 Total Restructuring Plan $ 2,613 $ 3,148 $ 52 $ (2,930 ) $ 2,883 $ 8,490 $ 10,334 (1) The accrued restructuring balance at December 31, 2015 is recorded in current liabilities. |
Note 8. Fair Value
Note 8. Fair Value | 6 Months Ended |
Dec. 31, 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: • Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. • 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. • 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 the six months ended December 31, 2015 . There were also no changes in the inputs or valuation techniques used to measure fair values compared to those disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2015 . 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 Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Recurring Fair Value Measurements: As of December 31, 2015 and June 30, 2015 , the fair values of level 1 financial assets that are measured at fair value on a recurring basis using the market approach were as follows: (Amounts in Thousands) December 31, 2015 June 30, 2015 Cash equivalents $ 24,127 $ 23,414 Trading Securities: Mutual funds in nonqualified SERP 9,895 10,353 Total assets at fair value $ 34,022 $ 33,767 We had no purchases or sales of level 3 assets during the three and six months ended December 31, 2015 . The nonqualified supplemental employee retirement plan (“SERP”) assets consist primarily of equity funds, balanced funds, target date 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 10 - Investments of Notes to Condensed Consolidated Financial Statements for further information regarding the SERP. Financial Instruments Not Carried At Fair Value: Financial instruments that are not reflected in the Condensed 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 9. Derivative Instruments
Note 9. Derivative Instruments | 6 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | Derivative Instruments Foreign Exchange Contracts: Our former EMS segment, classified as discontinued operations, 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. 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. After the spin-off of the EMS segment on October 31, 2014, we held no derivative instruments. See the Condensed Consolidated Statements of Comprehensive Income for the changes in deferred derivative gains and losses. Information on the location and amounts of derivative gains and losses in the Condensed Consolidated Statements of Income are presented below. The Effect of Derivative Instruments on Other Comprehensive Income (Loss) Three Months Ended Six Months Ended December 31 December 31 (Amounts in Thousands) 2015 2014 2015 2014 Amount of Pre-Tax Gain Recognized in Other Comprehensive Income (Loss) (OCI) on Derivatives (Effective Portion): Foreign exchange contracts $ — $ 282 $ — $ 2,513 The Effect of Derivative Instruments on Condensed Consolidated Statements of Income Three Months Ended Six Months Ended (Amounts in Thousands) December 31 December 31 Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) 2015 2014 2015 2014 Amount of Pre-Tax Gain Reclassified from Accumulated OCI into Income (Effective Portion): Foreign exchange contracts Income from Discontinued Operations, Net of Tax $ — $ 130 $ — $ 1,484 Derivatives Not Designated as Hedging Instruments Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives: Foreign exchange contracts Income from Discontinued Operations, Net of Tax $ — $ (184 ) $ — $ 740 Total Derivative Pre-Tax Gain (Loss) Recognized in Income $ — $ (54 ) $ — $ 2,224 |
Note 10. Investments
Note 10. Investments | 6 Months Ended |
Dec. 31, 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 (“SERP”) 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 Condensed Consolidated Balance Sheets at current fair value. A SERP liability of the same amount is recorded on the Condensed 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 losses from continuing operations for the six months ended December 31, 2015 and 2014 were, in thousands, $648 and $389 , respectively. SERP asset and liability balances were as follows: (Amounts in Thousands) December 31, June 30, SERP investments - current asset $ 708 $ 1,276 SERP investments - other long-term asset 9,187 9,077 Total SERP investments $ 9,895 $ 10,353 SERP obligation - current liability $ 708 $ 1,276 SERP obligation - other long-term liability 9,187 9,077 Total SERP obligation $ 9,895 $ 10,353 |
Note 11. Postemployment Benefit
Note 11. Postemployment Benefits | 6 Months Ended |
Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |
Postemployment Benefits Disclosure | Postemployment Benefits Kimball's domestic employees participate in severance plans. These plans cover domestic employees and 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. The components of net periodic postemployment benefit cost applicable to our severance plans were as follows: Three Months Ended Six Months Ended December 31 December 31 (Amounts in Thousands) 2015 2014 2015 2014 Service cost $ 124 $ 159 $ 244 $ 390 Interest cost 20 26 39 56 Amortization of prior service costs — 65 — 136 Amortization of actuarial income (105 ) (97 ) (219 ) (77 ) Net periodic benefit cost — Total cost $ 39 $ 153 $ 64 $ 505 Less: Discontinued operations — 11 — 81 Net periodic benefit cost — Continuing operations $ 39 $ 142 $ 64 $ 424 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 are not estimable using actuarial methods and are expensed in accordance with the applicable U.S. GAAP. |
Note 12. Stock Compensation Pla
Note 12. Stock Compensation Plan | 6 Months Ended |
Dec. 31, 2015 | |
Stock Compensation Plan [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments | Stock Compensation Plan During fiscal year 2016 , the following stock compensation was awarded to officers, key employees, and members of the Board of Directors. All awards were granted under the Amended and Restated 2003 Stock Option and Incentive Plan. For more information on stock compensation awards, refer to our Annual Report on Form 10-K for the fiscal year ended June 30, 2015 . Type of Award Quarter Awarded Shares or Units Grant Date Fair Value (5) Annual Performance Shares (1) 1st Quarter 111,695 $12.12 Relative Total Shareholder Return Awards (2) 1st Quarter 36,093 $15.10 Restricted Share Units (3) 1st Quarter 93,232 $11.58 - $12.32 Unrestricted Shares (4) 1st Quarter 5,304 $11.31 Unrestricted Shares (4) 2nd Quarter 2,443 $12.29 Unrestricted Shares (Director Compensation) (4) 2nd Quarter 6,587 $12.04 (1) Annual performance shares were awarded to officers and other key employees. The number of annual performance shares to be issued will be dependent upon operating income performance, with a percentage payout up to a maximum of 200% of the target number set forth above. Annual performance shares vest after one year. (2) Performance units were awarded to key officers under the Company's Relative Total Shareholder Return program. Vesting occurs at June 30, 2018. Participants will earn from 0% to 200% of the target award depending upon how the compound annual growth rate of Kimball International common stock ranks within the peer group at the end of the performance period. (3) Restricted share units were awarded to officers and key employees. Vesting occurs at June 30, 2016, June 30, 2017, and June 30, 2018. Upon vesting, the outstanding number of restricted share units and the value of dividends accumulated over the vesting period are converted to shares of common stock. (4) Unrestricted shares were awarded to key employees as consideration for service to the Company. Other unrestricted shares were awarded to non-employee members of the Board of Directors as compensation for director's fees which are expensed over the period that directors earn the compensation. Unrestricted shares do not have vesting periods, holding periods, restrictions on sale, or other restrictions. (5) The grant date fair value of annual performance shares is based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding annual performance share awards. The grant date fair value of the Relative Total Shareholder Return 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 grant date fair value of the restricted share units and unrestricted shares was based on the stock price at the date of the award. |
Note 13. Variable Interest Enti
Note 13. Variable Interest Entities | 6 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities Kimball's involvement with a variable interest entity (“VIE”) 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 $0.8 million as of December 31, 2015 . As of June 30, 2015 , the carrying value of the note receivable, net of a $0.5 million allowance, was $0.9 million . 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 Condensed 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 notes receivable. Kimball did not provide additional financial support to the VIE during the quarter ended December 31, 2015 . |
Note 14. Credit Quality and All
Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable | 6 Months Ended |
Dec. 31, 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 December 31, 2015 and June 30, 2015 , Kimball had no material past due outstanding notes receivable. As of December 31, 2015 As of June 30, 2015 (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 $ 1,324 $ 489 $ 835 $ 1,347 $ 489 $ 858 Other Notes Receivable 391 144 247 439 149 290 Total $ 1,715 $ 633 $ 1,082 $ 1,786 $ 638 $ 1,148 |
Note 1. Basis of Presentation (
Note 1. Basis of Presentation (Policies) | 6 Months Ended |
Dec. 31, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Kimball International, Inc. (the “Company,” “Kimball,” “we,” “us,” or “our”) have been prepared in accordance with the instructions to Form 10-Q. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted, although we believe that the disclosures are adequate to make the information presented not misleading. Intercompany transactions and balances have been eliminated. Management believes the financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly the financial statements for the interim periods. The results of operations for the interim periods shown in this report are not necessarily indicative of results for any future interim period or for the entire fiscal year. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in our latest annual report on Form 10-K. |
Note 3. Recent Accounting Pro22
Note 3. Recent Accounting Pronouncements and Supplemental Information (Policies) | 6 Months Ended |
Dec. 31, 2015 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In January 2016, the Financial Accounting Standards Board (“FASB”) issued guidance which is intended to improve the recognition and measurement of financial instruments. The guidance revises an entity's accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The guidance also amends certain disclosure requirements associated with the fair value of financial instruments. The guidance is effective prospectively for our first quarter of fiscal year 2019 financial statements with early adoption allowed on certain provisions. We have not yet selected a transition method nor determined the effect of this guidance on our consolidated financial statements. In November 2015, the FASB issued guidance on simplifying the balance sheet classification of deferred taxes. The guidance requires the classification of deferred tax assets and liabilities as noncurrent in a classified balance sheet. The current requirement that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not affected by this update. The guidance is effective for our first quarter of fiscal year 2018 financial statements with early adoption permitted, and allows for the use of either a prospective or retrospective transition method. We plan to early adopt using the prospective transition method for our fiscal year ending June 30, 2016, and will reclassify any current deferred tax assets or liabilities to noncurrent in our consolidated financial position. In July 2015, the FASB issued guidance on simplifying the measurement of inventory which applies to inventory that is measured using first-in, first-out (“FIFO”) 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, first-out (“LIFO”) 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 therefore the adoption will not have a material effect on our consolidated financial statements. In April 2015, the FASB issued guidance on customer’s 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 was effective prospectively for disposals or components of our business classified as held for sale beginning in our first quarter of fiscal year 2016. The adoption did not have a material effect on our consolidated financial statements. |
Notes Receivables and Trade Accounts Receivable | Notes Receivable and Trade Accounts Receivable: 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. |
Income Taxes | Income Taxes: In determining the quarterly provision for income taxes, we use an estimated annual effective tax rate which is based on expected annual income, statutory tax rates, and available tax planning opportunities in the various jurisdictions in which we operate. Unusual or infrequently occurring items are separately recognized in the quarter in which they occur. |
Non-operating Income and Expense, net | Non-operating Income (Expense), net: The non-operating income (expense), net line item includes the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, foreign currency rate movements, non-production rent income, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain (loss) on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. |
Note 4. Inventories (Policies)
Note 4. Inventories (Policies) | 6 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Inventory | For interim reporting, LIFO inventories are computed based on quantities as of the end of the quarter and interim changes in price levels. Changes in quantities and price levels are reflected in the interim financial statements in the period in which they occur, except in cases where LIFO inventory liquidations are expected to be reinstated by fiscal year end. |
Note 6. Commitments and Conti24
Note 6. Commitments and Contingent Liabilities (Policies) | 6 Months Ended |
Dec. 31, 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 in cases where specific warranty issues become known. |
Note 7. Restructuring Expense R
Note 7. Restructuring Expense Restructuring Expense (Policies) | 6 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [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 are included in the Restructuring Expense line item on the Company's Condensed Consolidated Statements of Income. |
Note 8. Fair Value (Policies)
Note 8. Fair Value (Policies) | 6 Months Ended |
Dec. 31, 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: • Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. • 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. • 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 the six months ended December 31, 2015 . There were also no changes in the inputs or valuation techniques used to measure fair values compared to those disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2015 . 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 Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices |
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 Condensed 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 9. Derivative Instruments
Note 9. Derivative Instruments (Policies) | 6 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments [Abstract] | |
Derivatives, Hedge Discontinuances | 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 | 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 12. Stock Compensation P28
Note 12. Stock Compensation Plan Stock Compensation Plan (Policies) | 6 Months Ended |
Dec. 31, 2015 | |
Stock Compensation Plan [Abstract] | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | The grant date fair value of annual performance shares is based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding annual performance share awards. The grant date fair value of the Relative Total Shareholder Return 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 grant date fair value of the restricted share units and unrestricted shares was based on the stock price at the date of the award. |
Note 2. Spin-Off Transaction (T
Note 2. Spin-Off Transaction (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The EMS segment was reclassified to discontinued operations in the Condensed Consolidated Statements of Income. Financial results of the discontinued operations were as follows: Three Months Ended Six Months Ended December 31 December 31 (Amounts in Thousands, Except Per Share Data) 2015 2014 2015 2014 Net Sales $ — $ 71,748 $ — $ 275,551 Income Before Taxes on Income $ — $ 3,599 $ — $ 13,098 Provision for Income Taxes $ — $ 921 $ — $ 3,941 Income from Discontinued Operations, Net of Tax $ — $ 2,678 $ — $ 9,157 Income From Discontinued Operations per Diluted Share $ — $ 0.07 $ — $ 0.24 |
Note 3. Recent Accounting Pro30
Note 3. Recent Accounting Pronouncements and Supplemental Information (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | |
Components of Non-operating income (expense), net | Components of the Non-operating income (expense), net line, from continuing operations were: Three Months Ended Six Months Ended December 31 December 31 (Amounts in Thousands) 2015 2014 2015 2014 Foreign Currency Loss $ (17 ) $ (17 ) $ (40 ) $ (42 ) Gain (Loss) on Supplemental Employee Retirement Plan Investments 297 352 (278 ) 166 Other (79 ) (152 ) (170 ) (274 ) Non-operating income (expense), net $ 201 $ 183 $ (488 ) $ (150 ) |
Note 4. Inventories (Tables)
Note 4. Inventories (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Schedule of Inventory, Current | Inventory components were as follows: (Amounts in Thousands) December 31, 2015 June 30, Finished products $ 33,217 $ 26,634 Work-in-process 2,546 1,952 Raw materials 24,531 23,201 Total FIFO inventory 60,294 51,787 LIFO reserve (13,601 ) (14,153 ) Total inventory $ 46,693 $ 37,634 |
Note 5. Accumulated Other Com32
Note 5. Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | During the three months ended December 31, 2015 and 2014 , the changes in the balances of each component of Accumulated Other Comprehensive Income (Loss), net of tax, were as follows: Accumulated Other Comprehensive Income (Loss) 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 September 30, 2015 $ — $ — $ — $ 1,302 $ 1,302 Other comprehensive income (loss) before reclassifications — — — 30 30 Reclassification to (earnings) loss — — — (64 ) (64 ) Net current-period other comprehensive income (loss) — — — (34 ) (34 ) Balance at December 31, 2015 $ — $ — $ — $ 1,268 $ 1,268 Balance at September 30, 2014 $ (677 ) $ (2,607 ) $ (77 ) $ 1,284 $ (2,077 ) Other comprehensive income (loss) before reclassifications (484 ) 214 — 183 (87 ) Reclassification to (earnings) loss — (114 ) 39 (58 ) (133 ) Distribution of Kimball Electronics, Inc. 1,161 2,507 8 (197 ) 3,479 Net current-period other comprehensive income (loss) 677 2,607 47 (72 ) 3,259 Balance at December 31, 2014 $ — $ — $ (30 ) $ 1,212 $ 1,182 During the six months ended December 31, 2015 and 2014 , the changes in the balances of each component of Accumulated Other Comprehensive Income (Loss), net of tax, were as follows: Accumulated Other Comprehensive Income (Loss) 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, 2015 $ — $ — $ — $ 1,229 $ 1,229 Other comprehensive income (loss) before reclassifications — — — 173 173 Reclassification to (earnings) loss — — — (134 ) (134 ) Net current-period other comprehensive income (loss) — — — 39 39 Balance at December 31, 2015 $ — $ — $ — $ 1,268 $ 1,268 Balance at June 30, 2014 $ 4,909 $ (3,411 ) $ (120 ) $ 1,062 $ 2,440 Other comprehensive income (loss) before reclassifications (6,070 ) 2,097 — 393 (3,580 ) Reclassification to (earnings) loss — (1,193 ) 82 (46 ) (1,157 ) Distribution of Kimball Electronics, Inc. 1,161 2,507 8 (197 ) 3,479 Net current-period other comprehensive income (loss) (4,909 ) 3,411 90 150 (1,258 ) Balance at December 31, 2014 $ — $ — $ (30 ) $ 1,212 $ 1,182 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | The following reclassifications were made from Accumulated Other Comprehensive Income (Loss) to the Condensed Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income (Loss) Three Months Ended Six Months Ended Affected Line Item in the Condensed Consolidated Statements of Income December 31, December 31, (Amounts in Thousands) 2015 2014 2015 2014 Derivative Gain (Loss) (1) $ — $ 114 $ — $ 1,193 Income from Discontinued Operations, Net of Tax Postemployment Benefits: Amortization of Prior Service Costs (2) $ — $ (40 ) $ — $ (79 ) Cost of Sales — (21 ) — (43 ) Selling and Administrative Expenses — 24 — 48 Provision for Income Taxes — (37 ) — (74 ) Income (Loss) from Continuing Operations $ — $ (2 ) $ — $ (8 ) Income from Discontinued Operations, Net of Tax Amortization of Actuarial Gain (Loss) (2) $ 66 $ 48 $ 143 $ 30 Cost of Sales 39 38 76 34 Selling and Administrative Expenses (41 ) (34 ) (85 ) (25 ) Provision for Income Taxes 64 52 134 39 Income (Loss) from Continuing Operations $ — $ 6 $ — $ 7 Income from Discontinued Operations, Net of Tax Total Reclassifications for the Period $ 64 $ 15 $ 134 $ (35 ) Income (Loss) from Continuing Operations — 118 — 1,192 Income from Discontinued Operations, Net of Tax $ 64 $ 133 $ 134 $ 1,157 Net Income Amounts in parentheses indicate reductions to income. (1) See Note 9 - Derivative Instruments of Notes to Condensed Consolidated Financial Statements for further information on derivative instruments. (2) See Note 11 - Postemployment Benefits of Notes to Condensed Consolidated Financial Statements for further information on postemployment benefit plans. |
Note 6. Commitments and Conti33
Note 6. Commitments and Contingent Liabilities (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingent Liabilities [Abstract] | |
Schedule of Product Warranty Liability | Changes in the product warranty accrual for the six months ended December 31, 2015 and 2014 were as follows: Six Months Ended December 31 (Amounts in Thousands) 2015 2014 Product Warranty Liability at the beginning of the period $ 2,264 $ 3,221 Additions to warranty accrual (including changes in estimates) 717 475 Settlements made (in cash or in kind) (514 ) (374 ) Distribution of Kimball Electronics, Inc. — (910 ) Product Warranty Liability at the end of the period $ 2,467 $ 2,412 |
Note 7. Restructuring Expense (
Note 7. Restructuring Expense (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Restructuring Expense [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Summary of Restructuring Plan: Accrued June 30, 2015 Six Months Ended December 31, 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 December 31, 2015 (1) Capacity Realignment and Post Falls, Idaho Exit Transition and Other Employee Costs $ 2,613 $ 715 $ — $ (525 ) $ 2,803 $ 3,372 $ 3,864 Asset Write-downs — — 52 (52 ) — 183 209 Plant Closure and Other Exit Costs — 2,433 — (2,353 ) 80 3,889 5,215 Total $ 2,613 $ 3,148 $ 52 $ (2,930 ) $ 2,883 $ 7,444 $ 9,288 Plane Fleet Reduction Transition and Other Employee Costs $ — $ — $ — $ — $ — $ 224 $ 224 Asset Write-downs — — — — — 822 822 Total $ — $ — $ — $ — $ — $ 1,046 $ 1,046 Total Restructuring Plan $ 2,613 $ 3,148 $ 52 $ (2,930 ) $ 2,883 $ 8,490 $ 10,334 (1) The accrued restructuring balance at December 31, 2015 is recorded in current liabilities. |
Note 8. Fair Value (Tables)
Note 8. Fair Value (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Fair Value [Abstract] | |
Fair Value Measurements, Recurring, Valuation Techniques | 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 Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | As of December 31, 2015 and June 30, 2015 , the fair values of level 1 financial assets that are measured at fair value on a recurring basis using the market approach were as follows: (Amounts in Thousands) December 31, 2015 June 30, 2015 Cash equivalents $ 24,127 $ 23,414 Trading Securities: Mutual funds in nonqualified SERP 9,895 10,353 Total assets at fair value $ 34,022 $ 33,767 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | Financial instruments that are not reflected in the Condensed 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 9. Derivative Instrument36
Note 9. Derivative Instruments (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments [Abstract] | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The Effect of Derivative Instruments on Other Comprehensive Income (Loss) Three Months Ended Six Months Ended December 31 December 31 (Amounts in Thousands) 2015 2014 2015 2014 Amount of Pre-Tax Gain Recognized in Other Comprehensive Income (Loss) (OCI) on Derivatives (Effective Portion): Foreign exchange contracts $ — $ 282 $ — $ 2,513 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The Effect of Derivative Instruments on Condensed Consolidated Statements of Income Three Months Ended Six Months Ended (Amounts in Thousands) December 31 December 31 Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) 2015 2014 2015 2014 Amount of Pre-Tax Gain Reclassified from Accumulated OCI into Income (Effective Portion): Foreign exchange contracts Income from Discontinued Operations, Net of Tax $ — $ 130 $ — $ 1,484 Derivatives Not Designated as Hedging Instruments Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives: Foreign exchange contracts Income from Discontinued Operations, Net of Tax $ — $ (184 ) $ — $ 740 Total Derivative Pre-Tax Gain (Loss) Recognized in Income $ — $ (54 ) $ — $ 2,224 |
Note 10. Investments (Tables)
Note 10. Investments (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Trading Securities (and Certain Trading Assets) | SERP asset and liability balances were as follows: (Amounts in Thousands) December 31, June 30, SERP investments - current asset $ 708 $ 1,276 SERP investments - other long-term asset 9,187 9,077 Total SERP investments $ 9,895 $ 10,353 SERP obligation - current liability $ 708 $ 1,276 SERP obligation - other long-term liability 9,187 9,077 Total SERP obligation $ 9,895 $ 10,353 |
Note 11. Postemployment Benef38
Note 11. Postemployment Benefits (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The components of net periodic postemployment benefit cost applicable to our severance plans were as follows: Three Months Ended Six Months Ended December 31 December 31 (Amounts in Thousands) 2015 2014 2015 2014 Service cost $ 124 $ 159 $ 244 $ 390 Interest cost 20 26 39 56 Amortization of prior service costs — 65 — 136 Amortization of actuarial income (105 ) (97 ) (219 ) (77 ) Net periodic benefit cost — Total cost $ 39 $ 153 $ 64 $ 505 Less: Discontinued operations — 11 — 81 Net periodic benefit cost — Continuing operations $ 39 $ 142 $ 64 $ 424 |
Note 12. Stock Compensation P39
Note 12. Stock Compensation Plan (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Stock Compensation Plan [Abstract] | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Grants in Period | Type of Award Quarter Awarded Shares or Units Grant Date Fair Value (5) Annual Performance Shares (1) 1st Quarter 111,695 $12.12 Relative Total Shareholder Return Awards (2) 1st Quarter 36,093 $15.10 Restricted Share Units (3) 1st Quarter 93,232 $11.58 - $12.32 Unrestricted Shares (4) 1st Quarter 5,304 $11.31 Unrestricted Shares (4) 2nd Quarter 2,443 $12.29 Unrestricted Shares (Director Compensation) (4) 2nd Quarter 6,587 $12.04 (1) Annual performance shares were awarded to officers and other key employees. The number of annual performance shares to be issued will be dependent upon operating income performance, with a percentage payout up to a maximum of 200% of the target number set forth above. Annual performance shares vest after one year. (2) Performance units were awarded to key officers under the Company's Relative Total Shareholder Return program. Vesting occurs at June 30, 2018. Participants will earn from 0% to 200% of the target award depending upon how the compound annual growth rate of Kimball International common stock ranks within the peer group at the end of the performance period. (3) Restricted share units were awarded to officers and key employees. Vesting occurs at June 30, 2016, June 30, 2017, and June 30, 2018. Upon vesting, the outstanding number of restricted share units and the value of dividends accumulated over the vesting period are converted to shares of common stock. (4) Unrestricted shares were awarded to key employees as consideration for service to the Company. Other unrestricted shares were awarded to non-employee members of the Board of Directors as compensation for director's fees which are expensed over the period that directors earn the compensation. Unrestricted shares do not have vesting periods, holding periods, restrictions on sale, or other restrictions. (5) The grant date fair value of annual performance shares is based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding annual performance share awards. The grant date fair value of the Relative Total Shareholder Return 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 grant date fair value of the restricted share units and unrestricted shares was based on the stock price at the date of the award. |
Note 14. Credit Quality and A40
Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable (Tables) | 6 Months Ended |
Dec. 31, 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 December 31, 2015 As of June 30, 2015 (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 $ 1,324 $ 489 $ 835 $ 1,347 $ 489 $ 858 Other Notes Receivable 391 144 247 439 149 290 Total $ 1,715 $ 633 $ 1,082 $ 1,786 $ 638 $ 1,148 |
Note 2. Spin-Off Transaction -
Note 2. Spin-Off Transaction - Disposal Group, Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net Sales | $ 0 | $ 71,748 | $ 0 | $ 275,551 |
Income Before Taxes on Income | 0 | 3,599 | 0 | 13,098 |
Provision for Income Taxes | 0 | 921 | 0 | 3,941 |
Income from Discontinued Operations, Net of Tax | $ 0 | $ 2,678 | $ 0 | $ 9,157 |
Income From Discontinued Operations per Diluted Share | $ 0 | $ 0.07 | $ 0 | $ 0.24 |
Note 3. Recent Accounting Pro42
Note 3. Recent Accounting Pronouncements and Supplemental Information - Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Receivable, Customary Payment Terms | 30 days | |||
Accounts Receivable, Days Beyond Which Terms Are Considered Extended Payment Terms | 30 days | |||
Effective Income Tax Rate Reconciliation, Percent | 36.60% | 101.50% | 37.40% | 56.00% |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | $ 0.4 | $ 0.4 |
Note 3. Recent Accounting Pro43
Note 3. Recent Accounting Pronouncements and Supplemental Information - Components of Non-operating income (expense), net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Foreign Currency Loss | $ (17) | $ (17) | $ (40) | $ (42) |
Gain (Loss) on Supplemental Employee Retirement Plan Investments | 297 | 352 | (278) | 166 |
Other | (79) | (152) | (170) | (274) |
Non-operating income (expense), net | $ 201 | $ 183 | $ (488) | $ (150) |
Note 4. Inventories - Inventory
Note 4. Inventories - Inventory Components (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Finished products | $ 33,217 | $ 26,634 |
Work-in-process | 2,546 | 1,952 |
Raw materials | 24,531 | 23,201 |
Total FIFO inventory | 60,294 | 51,787 |
LIFO reserve | (13,601) | (14,153) |
Total inventory | $ 46,693 | $ 37,634 |
Note 5. Accumulated Other Com45
Note 5. Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss) at beginning of period | $ 1,302 | $ (2,077) | $ 1,229 | $ 2,440 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 30 | (87) | 173 | (3,580) |
Reclassification to (earnings) loss | (64) | (133) | (134) | (1,157) |
Distribution to Kimball Electronics, Inc. | 3,479 | 3,479 | ||
Net current-period other comprehensive income (loss) | (34) | 3,259 | 39 | (1,258) |
Accumulated Other Comprehensive Income (Loss) at end of period | 1,268 | 1,182 | 1,268 | 1,182 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss) at beginning of period | 0 | (677) | 0 | 4,909 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | (484) | 0 | (6,070) |
Reclassification to (earnings) loss | 0 | 0 | 0 | 0 |
Distribution to Kimball Electronics, Inc. | 1,161 | 1,161 | ||
Net current-period other comprehensive income (loss) | 0 | 677 | 0 | (4,909) |
Accumulated Other Comprehensive Income (Loss) at end of period | 0 | 0 | 0 | 0 |
Derivative Gain (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss) at beginning of period | 0 | (2,607) | 0 | (3,411) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 214 | 0 | 2,097 |
Reclassification to (earnings) loss | 0 | (114) | 0 | (1,193) |
Distribution to Kimball Electronics, Inc. | 2,507 | 2,507 | ||
Net current-period other comprehensive income (loss) | 0 | 2,607 | 0 | 3,411 |
Accumulated Other Comprehensive Income (Loss) at end of period | 0 | 0 | 0 | 0 |
Postemployment Benefits, Prior Service Costs | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss) at beginning of period | 0 | (77) | 0 | (120) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | 0 | 0 |
Reclassification to (earnings) loss | 0 | 39 | 0 | 82 |
Distribution to Kimball Electronics, Inc. | 8 | 8 | ||
Net current-period other comprehensive income (loss) | 0 | 47 | 0 | 90 |
Accumulated Other Comprehensive Income (Loss) at end of period | 0 | (30) | 0 | (30) |
Postemployment Benefits, Net Actuarial Gain (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss) at beginning of period | 1,302 | 1,284 | 1,229 | 1,062 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 30 | 183 | 173 | 393 |
Reclassification to (earnings) loss | (64) | (58) | (134) | (46) |
Distribution to Kimball Electronics, Inc. | (197) | (197) | ||
Net current-period other comprehensive income (loss) | (34) | (72) | 39 | 150 |
Accumulated Other Comprehensive Income (Loss) at end of period | $ 1,268 | $ 1,212 | $ 1,268 | $ 1,212 |
Note 5. Accumulated Other Com46
Note 5. Accumulated Other Comprehensive Income (Loss) - Reclassifications from Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [1] | $ 0 | $ 114 | $ 0 | $ 1,193 |
Amortization of Prior Service Costs | 0 | (65) | 0 | (136) | |
Amortization of Actuarial Gain (Loss) | 105 | 97 | 219 | 77 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 64 | 133 | 134 | 1,157 | |
Cost of Sales | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | |||||
Amortization of Prior Service Costs | [2] | 0 | (40) | 0 | (79) |
Amortization of Actuarial Gain (Loss) | [2] | 66 | 48 | 143 | 30 |
Selling and Administrative Expenses | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | |||||
Amortization of Prior Service Costs | [2] | 0 | (21) | 0 | (43) |
Amortization of Actuarial Gain (Loss) | [2] | 39 | 38 | 76 | 34 |
Benefit (Provision) for Income Taxes | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | |||||
Amortization of Prior Service Costs | 0 | 24 | 0 | 48 | |
Amortization of Actuarial Gain (Loss) | (41) | (34) | (85) | (25) | |
Income (Loss) from Continuing Operations | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | |||||
Amortization of Prior Service Costs | 0 | (37) | 0 | (74) | |
Amortization of Actuarial Gain (Loss) | 64 | 52 | 134 | 39 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 64 | 15 | 134 | (35) | |
Income (Loss) from Discontinued Operations | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | |||||
Amortization of Prior Service Costs | 0 | (2) | 0 | (8) | |
Amortization of Actuarial Gain (Loss) | 0 | 6 | 0 | 7 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 | $ 118 | $ 0 | $ 1,192 | |
[1] | See Note 9 - Derivative Instruments of Notes to Condensed Consolidated Financial Statements for further information on derivative instruments. | ||||
[2] | See Note 11 - Postemployment Benefits of Notes to Condensed Consolidated Financial Statements for further information on postemployment benefit plans. |
Note 6. Commitments and Conti47
Note 6. Commitments and Contingent Liabilities - Commitments and Contingent Liabilities Textuals (Details) - Financial Standby Letter of Credit | Dec. 31, 2015USD ($) |
Guarantor Obligations | |
Loss Contingency Accrual, at Carrying Value | $ 0 |
Primary Revolving Credit Facility | |
Guarantor Obligations | |
Letters of Credit, Amount | $ 1,000,000 |
Note 6. Commitments and Conti48
Note 6. Commitments and Contingent Liabilities - Product Warranty (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Product Warranty Liability at the beginning of the period | $ 2,264 | $ 3,221 |
Additions to warranty accrual (including changes in estimates) | 717 | 475 |
Settlements made (in cash or in kind) | (514) | (374) |
Distribution To Kimball Electronics - Warranty Liability | 0 | (910) |
Product Warranty Liability at the end of the period | $ 2,467 | $ 2,412 |
Note 7. Restructuring Expense -
Note 7. Restructuring Expense -Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Expense and Other Related Items | |||||
Restructuring Charges | $ 2,014 | $ 3,335 | $ 3,200 | $ 3,335 | |
Restructuring and Related Cost, Cost Incurred to Date | 8,490 | 8,490 | |||
Gain (Loss) on Disposition of Property Plant Equipment | (105) | $ (646) | |||
Restructuring and Related Cost, Expected Cost | 10,334 | $ 10,334 | |||
Percentage of Restructuring Costs Expected in Cash | 90.00% | ||||
FY 2015 Post Falls Restructuring Plan [Domain] | |||||
Restructuring Expense and Other Related Items | |||||
Anticipated Property Plant and Equipment Additions | $ 1,600 | ||||
Restructuring and Related Cost, Cost Incurred to Date | 7,444 | 7,444 | |||
Anticipated Annual Pre-tax Operating Income Savings | 5,000 | ||||
Restructuring and Related Cost, Expected Cost | 9,288 | 9,288 | |||
FY 2015 Plane Fleet Reduction [Domain] | |||||
Restructuring Expense and Other Related Items | |||||
Restructuring and Related Cost, Cost Incurred to Date | 1,046 | 1,046 | |||
Anticipated Annual Pre-tax Operating Income Savings | 800 | ||||
Restructuring and Related Cost, Expected Cost | 1,046 | 1,046 | |||
Transition and Other Employee Costs | |||||
Restructuring Expense and Other Related Items | |||||
Restructuring and Related Cost, Expected Cost | 4,100 | 4,100 | |||
Transition and Other Employee Costs | FY 2015 Post Falls Restructuring Plan [Domain] | |||||
Restructuring Expense and Other Related Items | |||||
Restructuring and Related Cost, Cost Incurred to Date | 3,372 | 3,372 | |||
Restructuring and Related Cost, Expected Cost | 3,864 | 3,864 | |||
Transition and Other Employee Costs | FY 2015 Plane Fleet Reduction [Domain] | |||||
Restructuring Expense and Other Related Items | |||||
Restructuring and Related Cost, Cost Incurred to Date | 224 | 224 | |||
Restructuring and Related Cost, Expected Cost | 224 | 224 | |||
Plant Closure and Other Exit Costs | |||||
Restructuring Expense and Other Related Items | |||||
Restructuring and Related Cost, Expected Cost | 5,200 | 5,200 | |||
Plant Closure and Other Exit Costs | FY 2015 Post Falls Restructuring Plan [Domain] | |||||
Restructuring Expense and Other Related Items | |||||
Restructuring and Related Cost, Cost Incurred to Date | 3,889 | 3,889 | |||
Restructuring and Related Cost, Expected Cost | 5,215 | 5,215 | |||
Asset Write-Downs | |||||
Restructuring Expense and Other Related Items | |||||
Restructuring and Related Cost, Expected Cost | 1,000 | 1,000 | |||
Asset Write-Downs | FY 2015 Post Falls Restructuring Plan [Domain] | |||||
Restructuring Expense and Other Related Items | |||||
Restructuring and Related Cost, Cost Incurred to Date | 183 | 183 | |||
Restructuring and Related Cost, Expected Cost | 209 | 209 | |||
Asset Write-Downs | FY 2015 Plane Fleet Reduction [Domain] | |||||
Restructuring Expense and Other Related Items | |||||
Restructuring and Related Cost, Cost Incurred to Date | 822 | 822 | |||
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 | ||||
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 |
Note 7. Restructuring Expense50
Note 7. Restructuring Expense Restructuring Plan (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | ||
Restructuring Expense and Other Related Items | |||
Restructuring Reserve | $ 2,883 | [1] | $ 2,613 |
Restructuring Reserve, Period Expense, Cash | 3,148 | ||
Restructuring Reserve, Period Expense, Non-Cash | 52 | ||
Restructuring Reserve, Amounts Utilized or Cash Paid | (2,930) | ||
Restructuring and Related Cost, Cost Incurred to Date | 8,490 | ||
Restructuring and Related Cost, Expected Cost | 10,334 | ||
FY 2015 Post Falls Restructuring Plan [Domain] | |||
Restructuring Expense and Other Related Items | |||
Restructuring Reserve | 2,883 | 2,613 | |
Restructuring Reserve, Period Expense, Cash | 3,148 | ||
Restructuring Reserve, Period Expense, Non-Cash | 52 | ||
Restructuring Reserve, Amounts Utilized or Cash Paid | (2,930) | ||
Restructuring and Related Cost, Cost Incurred to Date | 7,444 | ||
Restructuring and Related Cost, Expected Cost | 9,288 | ||
FY 2015 Plane Fleet Reduction [Domain] | |||
Restructuring Expense and Other Related Items | |||
Restructuring Reserve | 0 | 0 | |
Restructuring Reserve, Period Expense, Cash | 0 | ||
Restructuring Reserve, Period Expense, Non-Cash | 0 | ||
Restructuring Reserve, Amounts Utilized or Cash Paid | 0 | ||
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 | 4,100 | ||
Transition and Other Employee Costs | FY 2015 Post Falls Restructuring Plan [Domain] | |||
Restructuring Expense and Other Related Items | |||
Restructuring Reserve | 2,803 | 2,613 | |
Restructuring Reserve, Period Expense, Cash | 715 | ||
Restructuring Reserve, Period Expense, Non-Cash | 0 | ||
Restructuring Reserve, Amounts Utilized or Cash Paid | (525) | ||
Restructuring and Related Cost, Cost Incurred to Date | 3,372 | ||
Restructuring and Related Cost, Expected Cost | 3,864 | ||
Transition and Other Employee Costs | FY 2015 Plane Fleet Reduction [Domain] | |||
Restructuring Expense and Other Related Items | |||
Restructuring Reserve | 0 | 0 | |
Restructuring Reserve, Period Expense, Cash | 0 | ||
Restructuring Reserve, Period Expense, Non-Cash | 0 | ||
Restructuring Reserve, Amounts Utilized or Cash Paid | 0 | ||
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 [Domain] | |||
Restructuring Expense and Other Related Items | |||
Restructuring Reserve | 0 | 0 | |
Restructuring Reserve, Period Expense, Cash | 0 | ||
Restructuring Reserve, Period Expense, Non-Cash | 52 | ||
Restructuring Reserve, Amounts Utilized or Cash Paid | (52) | ||
Restructuring and Related Cost, Cost Incurred to Date | 183 | ||
Restructuring and Related Cost, Expected Cost | 209 | ||
Asset Write-Downs | FY 2015 Plane Fleet Reduction [Domain] | |||
Restructuring Expense and Other Related Items | |||
Restructuring Reserve | 0 | 0 | |
Restructuring Reserve, Period Expense, Cash | 0 | ||
Restructuring Reserve, Period Expense, Non-Cash | 0 | ||
Restructuring Reserve, Amounts Utilized or Cash Paid | 0 | ||
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 | 5,200 | ||
Plant Closure and Other Exit Costs | FY 2015 Post Falls Restructuring Plan [Domain] | |||
Restructuring Expense and Other Related Items | |||
Restructuring Reserve | 80 | $ 0 | |
Restructuring Reserve, Period Expense, Cash | 2,433 | ||
Restructuring Reserve, Period Expense, Non-Cash | 0 | ||
Restructuring Reserve, Amounts Utilized or Cash Paid | (2,353) | ||
Restructuring and Related Cost, Cost Incurred to Date | 3,889 | ||
Restructuring and Related Cost, Expected Cost | $ 5,215 | ||
[1] | The accrued restructuring balance at December 31, 2015 is recorded in current liabilities. |
Note 8. Fair Value - Recurring
Note 8. Fair Value - Recurring Fair Value Measurments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | $ 9,895 | $ 10,353 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 24,127 | 23,414 |
Trading Securities: Mutual funds in nonqualified SERP | 9,895 | 10,353 |
Total assets at fair value | $ 34,022 | $ 33,767 |
Note 8. Fair Value - Textuals (
Note 8. Fair Value - Textuals (Details) | 3 Months Ended | 6 Months Ended |
Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value, Transfers Between Levels, Amount | $ 0 | $ 0 |
Fair Value, Purchases of Level 3 Assets | 0 | 0 |
Fair Value, Sales of Level 3 Assets | $ 0 | $ 0 |
Note 9. Derivative Instrument53
Note 9. Derivative Instruments - The Effect of Derivative Instruments on Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) | ||||
Derivative Instruments, Pre-Tax Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion | $ 0 | $ 282 | $ 0 | $ 2,513 |
Foreign Exchange Contract | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivative Instruments, Pre-Tax Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion | $ 0 | $ 282 | $ 0 | $ 2,513 |
Note 9. Derivative Instrument54
Note 9. Derivative Instruments - The Effect of Derivative Instruments on Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivative Instruments, Gain (Loss) | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [1] | $ 0 | $ 114 | $ 0 | $ 1,193 |
Total Derivative Pre-Tax Gain (Loss) Recognized in Income | 0 | (54) | 0 | 2,224 | |
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 | 0 | (184) | 0 | 740 | |
Cash Flow Hedging | Foreign Exchange Contract | Income (Loss) from Discontinued Operations | |||||
Derivative Instruments, Gain (Loss) | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | $ 130 | $ 0 | $ 1,484 | |
[1] | See Note 9 - Derivative Instruments of Notes to Condensed Consolidated Financial Statements for further information on derivative instruments. |
Note 9. Derivative Instrument55
Note 9. Derivative Instruments - Textuals (Details) $ in Millions | Dec. 31, 2015USD ($) |
Derivative Instruments [Abstract] | |
Derivative, Fair Value, Net | $ 0 |
Note 10. Investments - Suppleme
Note 10. Investments - Supplemental Employee Retirement Investments Textuals (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets | ||
Trading Securities, Change in net unrealized holding gains (losses) | $ (648) | $ (389) |
Note 10. Investments - Supple57
Note 10. Investments - Supplemental Employee Retirement Plan Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | $ 9,895 | $ 10,353 |
SERP obligation | 9,895 | 10,353 |
Short-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | 708 | 1,276 |
SERP obligation | 708 | 1,276 |
Other Long-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | 9,187 | 9,077 |
SERP obligation | $ 9,187 | $ 9,077 |
Note 11. Postemployment Benef58
Note 11. Postemployment Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Net Periodic Benefit Cost (before tax): | ||||
Service cost | $ 124 | $ 159 | $ 244 | $ 390 |
Interest cost | 20 | 26 | 39 | 56 |
Amortization of prior service costs | 0 | 65 | 0 | 136 |
Amortization of actuarial (income) loss | (105) | (97) | (219) | (77) |
Net periodic benefit cost — Total cost | 39 | 153 | 64 | 505 |
Discontinued Operations | ||||
Components of Net Periodic Benefit Cost (before tax): | ||||
Net periodic benefit cost — Total cost | 0 | 11 | 0 | 81 |
Continuing Operations | ||||
Components of Net Periodic Benefit Cost (before tax): | ||||
Net periodic benefit cost — Total cost | $ 39 | $ 142 | $ 64 | $ 424 |
Note 12. Stock Compensation P59
Note 12. Stock Compensation Plan - Stock Compensation Awards (Details) - $ / shares | 3 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2015 | |
Annual Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Shares Awarded | 111,695 | |
Stock Compensation, Grant Date Fair Value | $ 12.12 | |
Relative Total Shareholder Return | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Shares Awarded | 36,093 | |
Stock Compensation, Grant Date Fair Value | $ 15.10 | |
Restricted Share Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Shares Awarded | 93,232 | |
Unrestricted Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Shares Awarded | 2,443 | 5,304 |
Stock Compensation, Grant Date Fair Value | $ 12.29 | $ 11.31 |
Unrestricted Shares Director Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Shares Awarded | 6,587 | |
Stock Compensation, Grant Date Fair Value | $ 12.04 | |
Minimum | Restricted Share Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Grant Date Fair Value | 11.58 | |
Maximum | Restricted Share Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Grant Date Fair Value | $ 12.32 |
Note 12. Stock Compensation P60
Note 12. Stock Compensation Plan Stock Compensation Plans Textuals (Details) | Dec. 31, 2015 |
AnnualPerformanceSharesMaximumPayoutPercent | 200.00% |
Minimum | |
Relative Total Shareholder Return, Earned Percentage, Target | 0.00% |
Maximum | |
Relative Total Shareholder Return, Earned Percentage, Target | 200.00% |
Note 13. Variable Interest En61
Note 13. Variable Interest Entities -Textuals (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2015 | |
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Related Allowance | $ 633 | $ 638 |
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 | 800 | 900 |
Variable Interest Entity, Nonconsolidated, Related Allowance | $ 500 | $ 500 |
Note 14. Credit Quality and A62
Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable - Textuals (Details) - USD ($) | Dec. 31, 2015 | Jun. 30, 2015 |
Notes Receivable | ||
Notes Receivable | ||
Financing Receivable, Recorded Investment, Past Due | $ 0 | $ 0 |
Note 14. Credit Quality and A63
Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable - Credit Quality and Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Notes Receivable | ||
Notes Receivable, Unpaid Balance | $ 1,715 | $ 1,786 |
Notes Receivable, Related Allowance | 633 | 638 |
Notes Receivable, Net of Allowance | 1,082 | 1,148 |
Notes Receivable | Note Receivable From Sale of Indiana Facility | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 1,324 | 1,347 |
Notes Receivable, Related Allowance | 489 | 489 |
Notes Receivable, Net of Allowance | 835 | 858 |
Notes Receivable | Other Notes Receivable | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 391 | 439 |
Notes Receivable, Related Allowance | 144 | 149 |
Notes Receivable, Net of Allowance | $ 247 | $ 290 |