Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Aug. 22, 2016 | Dec. 31, 2015 | |
Document Information | |||
Entity Registrant Name | KIMBALL INTERNATIONAL INC | ||
Entity Central Index Key | 55,772 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float - Class B | $ 359,400,000 | ||
Class A Common Stock | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 286,385 | ||
Class B Common Stock | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 37,434,901 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 47,576 | $ 34,661 |
Receivables, net of allowances of $2,145 and $1,522, respectively | 51,710 | 55,710 |
Inventories | 40,938 | 37,634 |
Prepaid expenses and other current assets | 10,254 | 11,236 |
Assets held for sale | 9,164 | 0 |
Total current assets | 159,642 | 139,241 |
Property and Equipment, net of accumulated depreciation of $181,500 and $197,500, respectively | 87,086 | 97,163 |
Intangible Assets, net of accumulated amortization of $35,147 and $35,447, respectively | 3,021 | 2,669 |
Deferred Tax Assets | 12,790 | 15,328 |
Other Assets | 11,031 | 10,878 |
Total Assets | 273,570 | 265,279 |
Current Liabilities: | ||
Current maturities of long-term debt | 29 | 27 |
Accounts payable | 41,826 | 41,170 |
Customer deposits | 18,625 | 18,618 |
Dividends payable | 2,103 | 1,921 |
Accrued expenses | 44,292 | 45,425 |
Total current liabilities | 106,875 | 107,161 |
Other Liabilities: | ||
Long-term debt, less current maturities | 212 | 241 |
Other | 16,615 | 16,372 |
Total other liabilities | 16,827 | 16,613 |
Common stock-par value $0.05 per share: | ||
Additional paid-in capital | 2,917 | 3,445 |
Retained earnings | 205,104 | 194,372 |
Accumulated other comprehensive income | 1,311 | 1,229 |
Less: Treasury Stock, at cost, 5,512,000 shares and 5,111,000 shares, respectively | (61,615) | (59,692) |
Total Share Owners’ Equity | 149,868 | 141,505 |
Total Liabilities and Share Owners’ Equity | 273,570 | 265,279 |
Class A Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | 14 | 19 |
Class B Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | $ 2,137 | $ 2,132 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parentheticals - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
ASSETS | ||
Allowance for Doubtful Accounts, Premiums and Other Receivables | $ 2,145 | $ 1,522 |
Property and Equipment Accumulated Depreciation | 181,500 | 197,500 |
Intangible Assets Accumulated Amortization | $ 35,147 | $ 35,447 |
Class A Common Stock | ||
Share Owners' Equity | ||
Common Stock, Par or Stated Value Per Share | $ 0.05 | $ 0.05 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 292,000 | 386,000 |
Class B Common Stock | ||
Share Owners' Equity | ||
Common Stock, Par or Stated Value Per Share | $ 0.05 | $ 0.05 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 42,733,000 | 42,639,000 |
Treasury Stock, Shares | 5,512,000 | 5,111,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Sales | $ 635,102 | $ 600,868 | $ 543,817 |
Cost of Sales | 431,298 | 412,003 | 377,092 |
Gross Profit | 203,804 | 188,865 | 166,725 |
Selling and Administrative Expenses | 162,979 | 166,253 | 164,781 |
Restructuring Expense | 7,328 | 5,290 | 0 |
Operating Income | 33,497 | 17,322 | 1,944 |
Other Income (Expense): | |||
Interest income | 275 | 213 | 179 |
Interest expense | (22) | (24) | (26) |
Non-operating income | 79 | 709 | 2,856 |
Non-operating expense | (439) | (541) | (741) |
Other income (expense), net | (107) | 357 | 2,268 |
Income from Continuing Operations Before Taxes on Income | 33,390 | 17,679 | 4,212 |
Provision for Income Taxes | 12,234 | 6,536 | 793 |
Income from Continuing Operations | 21,156 | 11,143 | 3,419 |
Income from Discontinued Operations, Net of Tax | 0 | 9,157 | 30,042 |
Net Income | $ 21,156 | $ 20,300 | $ 33,461 |
Earnings Per Share of Common Stock: | |||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.56 | ||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.56 | ||
Basic Earnings Per Share: | |||
Basic Earnings Per Share: | 0.56 | ||
Diluted Earnings Per Share: | |||
Diluted Earnings Per Share: | $ 0.56 | ||
Basic | |||
Average Number of Shares Outstanding, Basic | 37,462 | 38,645 | 38,404 |
Diluted | |||
Average Number of Shares Outstanding, Diluted | 37,852 | 38,971 | 39,037 |
Class A Common Stock | |||
Earnings Per Share of Common Stock: | |||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.25 | $ 0.07 | |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.25 | 0.07 | |
Basic Earnings Per Share: | |||
Basic Earnings Per Share: | 0.49 | 0.85 | |
Diluted Earnings Per Share: | |||
Diluted Earnings Per Share: | $ 0.49 | $ 0.84 | |
Basic | |||
Average Number of Shares Outstanding, Basic | 3,231 | 8,026 | |
Diluted | |||
Average Number of Shares Outstanding, Diluted | 3,231 | 8,652 | |
Class B Common Stock | |||
Earnings Per Share of Common Stock: | |||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.29 | $ 0.09 | |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.29 | 0.09 | |
Basic Earnings Per Share: | |||
Basic Earnings Per Share: | 0.53 | 0.88 | |
Diluted Earnings Per Share: | |||
Diluted Earnings Per Share: | $ 0.52 | $ 0.86 | |
Basic | |||
Average Number of Shares Outstanding, Basic | 35,414 | 30,378 | |
Diluted | |||
Average Number of Shares Outstanding, Diluted | 35,740 | 30,385 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 21,156 | $ 20,300 | $ 33,461 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, Pre-tax | 0 | (6,070) | 4,358 |
Foreign currency translation adjustments, Tax | 0 | 0 | (304) |
Foreign currency translation adjustments, Net of Tax | 0 | (6,070) | 4,054 |
Postemployment severance actuarial change, Pre-tax | 576 | 895 | 899 |
Postemployment severance actuarial change, Tax | (225) | (356) | (360) |
Postemployment severance actuarial change, Net of Tax | 351 | 539 | 539 |
Derivative gain, Pre-tax | 0 | 2,513 | 73 |
Derivative gain, Tax | 0 | (416) | (86) |
Derivative gain, Net of Tax | 0 | 2,097 | (13) |
Reclassification to (earnings) loss: | |||
Derivatives, Reclassification to (earnings) loss, Pre-tax | 0 | (1,484) | 1,187 |
Derivatives, Reclassification to (earnings) loss, Tax | 0 | 291 | (226) |
Derivatives, Reclassification to (earnings) loss, Net of Tax | 0 | (1,193) | 961 |
Amortization of prior service costs, Pre-tax | 0 | 185 | 286 |
Amortization of prior service costs, Tax | 0 | (73) | (114) |
Amortization of prior service costs, Net of Tax | 0 | 112 | 172 |
Amortization of actuarial change, Pre-tax | (441) | (292) | 338 |
Amortization of actuarial change, Tax | 172 | 117 | (134) |
Amortization of actuarial change, Net of Tax | (269) | (175) | 204 |
Other comprehensive income (loss), Pre-tax | 135 | (4,253) | 7,141 |
Other comprehensive income (loss), Tax | (53) | (437) | (1,224) |
Other comprehensive income (loss), Net of Tax | 82 | (4,690) | 5,917 |
Total comprehensive income | $ 21,238 | $ 15,610 | $ 39,378 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows From Operating Activities: | |||
Net income | $ 21,156 | $ 20,300 | $ 33,461 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 14,996 | 20,114 | 31,885 |
Loss (Gain) on sales of assets | 181 | 912 | (1,484) |
Restructuring and asset impairment charges | 153 | 953 | 1,509 |
Deferred income tax and other deferred charges | 2,523 | (537) | (8,893) |
Stock-based compensation | 5,558 | 6,414 | 7,018 |
Excess tax benefits from stock-based compensation | (370) | (1,157) | (43) |
Other, net | 201 | 38 | 1,007 |
Change in operating assets and liabilities: | |||
Receivables | 4,874 | (15,266) | (14,635) |
Inventories | (3,304) | (21,934) | (14,894) |
Prepaid expenses and other current assets | 459 | (4,870) | (256) |
Accounts payable | 2,874 | 5,632 | 12,051 |
Customer Deposits | 7 | 4,488 | 3,687 |
Accrued expenses | (326) | (1,244) | 19,458 |
Net cash provided by operating activities | 48,982 | 13,843 | 69,871 |
Cash Flows From Investing Activities: | |||
Capital expenditures | (15,028) | (31,708) | (32,897) |
Proceeds from sales of assets | 290 | 2,524 | 4,761 |
Purchases of capitalized software | (1,138) | (1,407) | (756) |
Other, net | (1,007) | (66) | 1,346 |
Net cash used for investing activities | (16,883) | (30,657) | (27,546) |
Cash Flows From Financing Activities: | |||
Transfer of cash and cash equivalents to Kimball Electronics, Inc. | 0 | (63,006) | 0 |
Net change in capital leases and long-term debt | (27) | (25) | (24) |
Dividends paid to Share Owners | (8,078) | (7,660) | (7,507) |
Repurchases of Common Stock | (9,665) | (10,342) | 0 |
Excess tax benefits from stock-based compensation | 370 | 1,157 | 43 |
Repurchase of employee shares for tax withholding | (1,784) | (4,019) | (1,953) |
Net cash used for financing activities | (19,184) | (83,895) | (9,441) |
Effect of Exchange Rate Change on Cash and Cash Equivalents | 0 | (1,254) | 140 |
Net Increase (Decrease) in Cash and Cash Equivalents | 12,915 | (101,963) | 33,024 |
Cash and Cash Equivalents at Beginning of Year | 34,661 | 136,624 | 103,600 |
Cash and Cash Equivalents at End of Year | $ 47,576 | $ 34,661 | $ 136,624 |
Consolidated Statements of Shar
Consolidated Statements of Share Owners' Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsClass A Common Stock | Retained EarningsClass B Common Stock | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Share Owner's Equity at Jun. 30, 2013 | $ 404,506 | $ 601 | $ 1,550 | $ 4,448 | $ 462,957 | $ (3,477) | $ (61,573) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 33,461 | 33,461 | |||||||||
Other comprehensive income (loss), Net of Tax | 5,917 | 5,917 | |||||||||
Issuance of non-restricted stock (20,000 shares in 2014, 29,000 shares in 2015, 44,000 shares in 2016) | 57 | (196) | 253 | ||||||||
Conversion of Class A to Class B common stock (813,000 shares in 2014, 10,826,000 shares in 2015, 94,000 shares in 2016) | 0 | (41) | 41 | ||||||||
Compensation expense related to stock incentive plans | 7,018 | 7,018 | |||||||||
Performance share issuance (337,000 shares in 2014, 407,000 shares in 2015, 235,000 shares in 2016) | (1,899) | (5,001) | (1,851) | 4,953 | |||||||
Dividends declared: | |||||||||||
Dividends declared (Class A $0.18 2014, $0.195 in 2015, $0.22 in 2016, Class B $0.20 per share in 2014, $0.20 per share in 2015, $0.22 per share in 2016) | $ (1,437) | $ (6,090) | $ (1,437) | $ (6,090) | |||||||
Share Owner's Equity at Jun. 30, 2014 | 441,533 | 560 | 1,591 | 6,269 | 487,040 | 2,440 | (56,367) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Distribution to Kimball Electronics Inc. | (300,244) | (508) | (303,215) | 3,479 | |||||||
Net income | 20,300 | 20,300 | |||||||||
Other comprehensive income (loss), Net of Tax | (4,690) | (4,690) | |||||||||
Issuance of non-restricted stock (20,000 shares in 2014, 29,000 shares in 2015, 44,000 shares in 2016) | (169) | (605) | 436 | ||||||||
Conversion of Class A to Class B common stock (813,000 shares in 2014, 10,826,000 shares in 2015, 94,000 shares in 2016) | 0 | (541) | 541 | ||||||||
Compensation expense related to stock incentive plans | 6,414 | 6,414 | |||||||||
Performance share issuance (337,000 shares in 2014, 407,000 shares in 2015, 235,000 shares in 2016) | (2,498) | (7,452) | (2,048) | 7,002 | |||||||
Vesting of restricted share units (31,000 shares in 2015, 56,000 shares in 2016) | (115) | (673) | 558 | ||||||||
Repurchase of Common Stock (991,000 shares in 2015, 736,000 in 2016) | (11,321) | (11,321) | |||||||||
Dividends declared: | |||||||||||
Dividends declared (Class A $0.18 2014, $0.195 in 2015, $0.22 in 2016, Class B $0.20 per share in 2014, $0.20 per share in 2015, $0.22 per share in 2016) | $ (536) | $ (7,169) | $ (536) | $ (7,169) | |||||||
Share Owner's Equity at Jun. 30, 2015 | 141,505 | 19 | 2,132 | 3,445 | 194,372 | 1,229 | (59,692) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Distribution to Kimball Electronics Inc. | (4) | (4) | |||||||||
Net income | 21,156 | 21,156 | |||||||||
Other comprehensive income (loss), Net of Tax | 82 | 82 | |||||||||
Issuance of non-restricted stock (20,000 shares in 2014, 29,000 shares in 2015, 44,000 shares in 2016) | (108) | (1,058) | 950 | ||||||||
Conversion of Class A to Class B common stock (813,000 shares in 2014, 10,826,000 shares in 2015, 94,000 shares in 2016) | 0 | (5) | 5 | ||||||||
Compensation expense related to stock incentive plans | 5,558 | 5,558 | |||||||||
Performance share issuance (337,000 shares in 2014, 407,000 shares in 2015, 235,000 shares in 2016) | (1,153) | (3,445) | (2,132) | 4,424 | |||||||
Vesting of restricted share units (31,000 shares in 2015, 56,000 shares in 2016) | (194) | (1,583) | 1,389 | ||||||||
Repurchase of Common Stock (991,000 shares in 2015, 736,000 in 2016) | (8,686) | (8,686) | |||||||||
Dividends declared: | |||||||||||
Dividends declared (Class A $0.18 2014, $0.195 in 2015, $0.22 in 2016, Class B $0.20 per share in 2014, $0.20 per share in 2015, $0.22 per share in 2016) | (8,288) | (8,288) | |||||||||
Share Owner's Equity at Jun. 30, 2016 | $ 149,868 | $ 14 | $ 2,137 | $ 2,917 | $ 205,104 | $ 1,311 | $ (61,615) |
Consolidated Statements of Sha8
Consolidated Statements of Share Owners' Equity Parentheticals - $ / shares | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Issuance of non-restricted stock, Shares | 44,000 | 29,000 | 20,000 |
Conversion of Class A to Class B common stock | 94,000 | 10,826,000 | 813,000 |
Vesting of Restricted Share Units, Shares | 56,000 | 31,000 | 0 |
Performance Share Issuance, Shares | 235,000 | 407,000 | 337,000 |
Treasury Stock, Shares, Acquired | 736,000 | 991,000 | |
Common Stock, Dividends, Per Share, Declared | $ 0.22 | ||
Class A Common Stock | |||
Common Stock, Dividends, Per Share, Declared | $ 0.195 | $ 0.18 | |
Class B Common Stock | |||
Common Stock, Dividends, Per Share, Declared | $ 0.20 | $ 0.20 |
Note 1. Summary of Significant
Note 1. Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation: The consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated in the consolidation. Operating Segments: We sell a portfolio of furniture products and services under three brands: Kimball Office, National Office Furniture, and Kimball Hospitality. We consider each of the three brands to be operating segments which aggregate into one reportable segment. The brands operate within six market verticals, selling to similar types of customers. Our products and services are similar in nature and utilize similar production and distribution processes. Our three brands share similar long-term economic characteristics. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts included in the consolidated financial statements and related note disclosures. While efforts are made to assure estimates used are reasonably accurate based on management’s knowledge of current events, actual results could differ from those estimates. Revenue Recognition: We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Delivery is not considered to have occurred until the title and the risk of loss passes to the customer according to the terms of the contract. Title and risk of loss are transferred upon shipment to or receipt at our customers’ locations, or in limited circumstances, as determined by other specific sales terms of the transaction. Shipping and handling fees billed to customers are recorded as sales while the related shipping and handling costs are included in cost of goods sold. We recognize sales net of applicable sales tax. Based on estimated product returns and price concessions, a reserve for returns and allowances is recorded at the time of the sale, resulting in a reduction of revenue. Cash and Cash Equivalents: Cash equivalents consist primarily of highly liquid investments with original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist of bank accounts and money market funds. Bank accounts are stated at cost, which approximates fair value, and money market funds are stated at fair value. Notes Receivable and Trade Accounts Receivable: Kimball’s notes receivable and trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. We determine on a case-by-case basis the cessation of accruing interest, the resumption of accruing interest, the method of recording payments received on nonaccrual receivables, and the delinquency status for our limited number of notes receivable. Our policy for estimating the allowance for credit losses on trade accounts receivable and notes receivable includes analysis of such items as aging, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to determine the final allowance for credit losses on the trade accounts receivable and notes receivable. Trade accounts receivable and notes receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Our limited amount of notes receivable allows management to monitor the risks, credit quality indicators, collectability, and probability of impairment on an individual basis. Adjustments to the allowance for credit losses are recorded in selling and administrative expenses. Customary terms require payment within 30 days , with terms beyond 30 days being considered extended. Inventories: Inventories are stated at the lower of cost or market value. Cost includes material, labor, and applicable manufacturing overhead. Costs associated with underutilization of capacity are expensed as incurred. The last-in, first-out (“LIFO”) method was used for approximately 93% and 91% of consolidated inventories at June 30, 2016 and June 30, 2015 , respectively. The remaining inventories were valued using the first-in, first-out (“FIFO”) method. Inventories are adjusted for excess and obsolete inventory. Evaluation of excess inventory includes such factors as anticipated usage, inventory turnover, inventory levels, and product demand levels. Factors considered when evaluating obsolescence include the age of on-hand inventory and reduction in value due to damage, use as showroom samples, design changes, or cessation of product lines. Property, Equipment, and Depreciation: Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful life of the assets using the straight-line method for financial reporting purposes. Leasehold improvements are amortized on a straight-line basis over the shorter of the useful life of the improvement or the term of the lease. Major maintenance activities and improvements are capitalized; other maintenance, repairs, and minor renewals are expensed. Depreciation and expenses for maintenance, repairs and minor renewals are included in both the Cost of Sales line and the Selling and Administrative Expense line of the Consolidated Statements of Income. Impairment of Long-Lived Assets: We perform reviews for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment is recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. When an impairment is identified, the carrying amount of the asset is reduced to its estimated fair value. Assets to be disposed of are recorded at the lower of net book value or fair market value less cost to sell at the date management commits to a plan of disposal. Other Intangible Assets: Other Intangible Assets reported on the Consolidated Balance Sheets consist of capitalized software and product rights. Intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. A summary of other intangible assets subject to amortization is as follows: June 30, 2016 June 30, 2015 (Amounts in Thousands) Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Capitalized Software $ 37,796 $ 34,775 $ 3,021 $ 37,744 $ 35,081 $ 2,663 Product Rights 372 372 — 372 366 6 Other Intangible Assets $ 38,168 $ 35,147 $ 3,021 $ 38,116 $ 35,447 $ 2,669 During fiscal years 2016 , 2015 , and 2014 , amortization expense of other intangible assets from continuing operations was, in thousands, $786 , $898 , and $992 , respectively. Amortization expense in future periods is expected to be, in thousands, $855 , $652 , $522 , $459 , and $296 in the five years ending June 30, 2021 , and $237 thereafter. The estimated useful life of internal-use software ranges from 2 to 10 years . Internal-use software is stated at cost less accumulated amortization and is amortized using the straight-line method. During the software application development stage, capitalized costs include external consulting costs, cost of software licenses, and internal payroll and payroll-related costs for employees who are directly associated with a software project. Upgrades and enhancements are capitalized if they result in added functionality which enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion, and business process reengineering costs are expensed in the period in which they are incurred. Product rights to produce and sell certain products are amortized on a straight-line basis over their estimated useful lives. We have no intangible assets with indefinite useful lives which are not subject to amortization. Research and Development: The costs of research and development are expensed as incurred. Research and development costs from continuing operations were approximately, in millions, $6 , $7 , and $7 in fiscal years 2016 , 2015 , and 2014 , respectively. Advertising: Advertising costs are expensed as incurred. Advertising costs from continuing operations, included in selling and administrative expenses were, in millions, $4.0 , $4.0 , and $3.7 , in fiscal years 2016 , 2015 , and 2014 , respectively. Insurance and Self-insurance: We are self-insured for certain employee health benefits including medical, short-term disability, and dental. Our self-insured reserves are estimated based upon a number of factors including known claims, estimated incurred but not reported claims, and other analyses, which are based on historical information along with certain assumptions about future events. Insurance benefits are not provided to retired employees. We also participate, along with other companies, in a group captive insurance company (“Captive”). The Captive insures losses related to workman's compensation, motor vehicle liability, product liability, and general liability. The Captive reinsures catastrophic losses for all participants, including Kimball, in excess of predetermined amounts. We pay premiums to the Captive which accumulate as a prepaid deposit estimated for losses related to the above coverage. We also maintain a reserve for outstanding unpaid workers’ compensation claims, including an estimate of incurred but not reported claims. Additionally, we purchase insurance coverage for property insurance, director and officer liability insurance, umbrella coverage, and other risks. Income Taxes: Deferred income taxes are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The deferred taxes are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse. We evaluate the recoverability of deferred tax assets each quarter by assessing the likelihood of future taxable income and available tax planning strategies that could be implemented to realize our deferred tax assets. If recovery is not likely, we provide a valuation allowance based on our best estimate of future taxable income in the various taxing jurisdictions and the amount of deferred taxes ultimately realizable. Future events could change management’s assessment. We early adopted the Financial Accounting Standards Board (“FASB”) guidance on simplifying the balance sheet classification of deferred taxes, using the retrospective transition method, and thus have classified all deferred tax assets and liabilities as noncurrent in our consolidated balance sheets. We operate within multiple taxing jurisdictions and are subject to tax audits in these jurisdictions. These audits can involve complex uncertain tax positions, which may require an extended period of time to resolve. A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. We maintain a liability for uncertain income tax and other tax positions, including accrued interest and penalties on those positions. As tax positions are effectively settled, the tax liability is adjusted accordingly. We recognize interest and penalties related to unrecognized tax benefits in the Provision (Benefit) for Income Taxes line of the Consolidated Statements of Income. Concentrations of Credit Risk: Certain business and credit risks are inherent in our business. Additionally, we currently have a note receivable related to the sale of an Indiana facility, a note receivable from a dealer, and other miscellaneous notes receivable which are included on the Receivables and Other Assets lines of the Consolidated Balance Sheets. At June 30, 2016 and 2015 , $1.9 million and $1.8 million , respectively, were outstanding under the notes receivables. The credit risk associated with receivables is disclosed in Note 20 - Credit Quality and Allowance for Credit Losses of Notes Receivable of Notes to Consolidated Financial Statements. Off-Balance Sheet Risk: Our off-balance sheet arrangements are limited to standby letters of credit, a performance bond, and operating leases entered into in the normal course of business as described in Note 5 - Commitments and Contingent Liabilities of Notes to Consolidated Financial Statements. Non-operating Income and Expense: Non-operating income and expense include the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, foreign currency rate movements, bank charges, investment gain or loss, non-production rent income, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain or loss on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. Foreign Currency Translation: Kimball's continuing foreign operation, a non-manufacturing office in China, uses the U.S. Dollar as its functional currency. Foreign currency assets and liabilities are remeasured into functional currencies at end-of-period exchange rates, except for nonmonetary assets and equity, which are remeasured at historical exchange rates. Revenue and expenses are remeasured at the weighted average exchange rate during the fiscal year, except for expenses related to nonmonetary assets, which are remeasured at historical exchange rates. Gains and losses from foreign currency remeasurement are reported in the Non-operating income or expense line item on the Consolidated Statements of Income. Gains and losses from foreign currency remeasurement into EUR and USD functional currencies related to our former EMS segment are included in the Income from Discontinued Operations, Net of Tax line item of the Consolidated Statements of Income. Derivative Instruments and Hedging Activities: During fiscal year 2016 we did not utilize derivative instruments. During fiscal years 2015 and 2014, prior to the spin-off of our EMS segment, derivative instruments were utilized to hedge the exposure to foreign currency exchange rate fluctuations. See Note 12 - Derivative Instruments of Notes to Consolidated Financial Statements for more information on derivative instruments and hedging activities. Stock-Based Compensation: As described in Note 8 - Stock Compensation Plans of Notes to Consolidated Financial Statements, Kimball maintains a stock-based compensation plan which allows for the issuance of restricted stock, restricted share units, unrestricted share grants, incentive stock options, nonqualified stock options, performance shares, performance units, and stock appreciation rights for grant to officers and other key employees and to members of the Board of Directors who are not employees. We recognize the cost resulting from share-based payment transactions using a fair-value-based method. The estimated fair value of outstanding performance shares and restricted share units is based on the stock price at the date of the grant. For performance shares, the price is reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding performance share awards. The estimated fair value of outstanding relative total shareholder return performance units (“RTSR”) is based on the grant date fair value of RTSR awards using a Monte Carlo simulation which includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. Stock-based compensation expense is recognized for the portion of the awards that are ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Recent Accounting Pronouncements: In June 2016, the FASB issued guidance on the measurement of credit losses on financial instruments. Under the guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The guidance is also intended to reduce the complexity by decreasing the number of credit impairment models that entities use to account for debt instruments. The guidance is effective for our first quarter of fiscal year 2021 with early adoption in our fiscal year 2020 permitted. We have not yet determined the effect of this guidance on our consolidated financial statements. In March 2016, the FASB issued guidance on simplifying the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification on the statement of cash flows. The guidance is effective for our first quarter of fiscal year 2018 with early adoption permitted. We have not yet selected a transition method nor determined the effect of this guidance on our consolidated financial statements. In February 2016, the FASB issued guidance that revises the accounting for leases. The guidance is intended to improve financial reporting of leasing transactions by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. Leases will continue to be classified as either operating or finance leases, with the classification affecting the pattern of expense recognition in the statement of income. The guidance will also require additional disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for our first quarter of fiscal year 2020 with early adoption permitted, and is required to be applied using a modified retrospective approach to each prior reporting period. We have not yet determined the effect of this guidance on our consolidated financial statements. In January 2016, the 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 have early adopted using the retrospective transition method for our fiscal year ending June 30, 2016, and thus have reclassified current deferred tax assets and liabilities to noncurrent in our consolidated balance sheet. As a result for June 30, 2015, $12.3 million of current deferred tax assets that were included in prepaid expenses and other current assets and $0.9 million of deferred tax liabilities that were included in other long term liabilities have been reclassified to noncurrent deferred tax assets in the consolidated balance sheet. 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 plan to adopt using the prospective transition method for our first quarter of fiscal year 2017, and we do not expect the adoption to have a material effect 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. In March 2016, the FASB issued additional guidance which further clarifies assessing whether an entity is a principal or an agent in a revenue transaction, and impacts whether an entity reports revenue on a gross or net basis; in April 2016, the FASB issued additional guidance that addresses identifying performance obligations and implementing licensing guidance; and in May 2016, the FASB issued additional guidance that clarifies collectability, noncash consideration, and other transition issues. The amendments have the same effective date and transition requirements as the new revenue standard. 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. |
Note 2. Spin-Off Transaction (N
Note 2. Spin-Off Transaction (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Planned Spin-Off [Text Block] | 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 (“the Record Date”). On the Distribution Date, each of the Company’s Share Owners received three shares of Kimball Electronics for every four shares of the Company held by such Share Owner on the Record Date. After the Distribution Date, the Company no longer beneficially owns 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 following is a summary of the assets and liabilities distributed to Kimball Electronics on the Distribution Date or shortly thereafter: (Amounts in Millions) Assets: Cash and cash equivalents $ 63 Receivables 133 Inventories 124 Prepaid expenses and other current assets 19 Net property and equipment 98 Goodwill 3 Net other intangible assets 1 Other long-term assets 15 $ 456 Liabilities: Accounts payable $ 125 Accrued expenses 22 Other long-term liabilities 9 $ 156 Net Assets Distributed to Kimball Electronics, Inc. $ 300 The Company distributed $63 million of cash to Kimball Electronics, including the cash held by its foreign facilities, as Kimball Electronics began operation as an independent company. The cash distribution occurred in several installments immediately preceding the Distribution Date or shortly thereafter. In addition, $3.5 million of accumulated other comprehensive losses, net of tax, related to foreign translation, derivatives, and the postemployment severance benefit plan was transferred to Kimball Electronics. The EMS segment was reclassified to discontinued operations in the Consolidated Statements of Income for all periods presented. Discontinued operations did not have an impact on the financial results of fiscal year 2016. Summarized financial results of discontinued operations through the October 31, 2014 spin-off date, were as follows: Fiscal Year Ended June 30 (Amounts in Thousands, Except Per Share Data) 2015 2014 Net Sales $ 275,551 $ 741,530 Income Before Taxes on Income 13,098 38,961 Provision for Income Taxes 3,941 8,919 Income from Discontinued Operations, Net of Tax $ 9,157 $ 30,042 Income from Discontinued Operations per Class B Diluted Share $ 0.23 $ 0.77 In connection with the spin-off of Kimball Electronics, the Company and Kimball Electronics entered into several agreements covering administrative and tax matters to provide or obtain services on a transitional basis, as needed, for varying periods after the spin-off. The administrative agreements cover various services such as information technology, human resources, taxation, and finance, and these services are substantially complete. The Company has retained all liabilities for U.S. federal, state, and local income taxes on income prior to the spin-off, as well as certain non-income taxes attributable to Kimball Electronics’ business. Kimball Electronics generally will be liable for all other taxes attributable to its business. |
Note 3. Inventories
Note 3. Inventories | 12 Months Ended |
Jun. 30, 2016 | |
Inventories [Abstract] | |
Inventory Disclosure | Inventories Inventories are valued using the lower of last-in, first-out (“LIFO”) cost or market value for approximately 93% and 91% of consolidated inventories at June 30, 2016 and June 30, 2015 , respectively. The remaining inventories are valued using the lower of first-in, first-out (“FIFO”) cost or market value. Had the FIFO method been used for all inventories, income from continuing operations would have been $1.0 million lower in fiscal year 2016 , $0.2 million higher in fiscal year 2015 , and $0.6 million higher in fiscal year 2014 . Certain inventory quantity reductions caused liquidations of LIFO inventory values, which increased income from continuing operations by an immaterial amount in 2016, 2015 and 2014. Inventory components at June 30 were as follows: (Amounts in Thousands) 2016 2015 Finished products $ 26,494 $ 26,634 Work-in-process 1,840 1,952 Raw materials 25,070 23,201 Total FIFO inventory $ 53,404 $ 51,787 LIFO reserve (12,466 ) (14,153 ) Total inventory $ 40,938 $ 37,634 |
Note 4. Property and Equipment
Note 4. Property and Equipment | 12 Months Ended |
Jun. 30, 2016 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | Property and Equipment Major classes of property and equipment at June 30 consist of the following: (Amounts in Thousands) 2016 2015 Land $ 2,577 $ 2,849 Buildings and improvements 110,536 124,709 Machinery and equipment 154,319 159,648 Construction-in-progress 1,154 7,457 Total $ 268,586 $ 294,663 Less: Accumulated depreciation (181,500 ) (197,500 ) Property and equipment, net $ 87,086 $ 97,163 The useful lives used in computing depreciation are based on estimated service lives for classes of property, as follows: Years Buildings and improvements 5 to 40 Machinery and equipment 2 to 20 Leasehold improvements Lesser of Useful Life or Term of Lease Depreciation and amortization of property and equipment from continuing operations, including asset write-downs associated with restructuring plans, totaled, in millions, $14.3 for fiscal year 2016 , $13.1 for fiscal year 2015 , and $13.5 for fiscal year 2014 . At June 30, 2016 , assets totaling $9.2 million were classified as held for sale for a facility and land located in Post Falls, Idaho. Subsequent to June 30, 2016, we sold the Idaho facility and land which is explained in Note 21 - Subsequent Events of Notes to Consolidated Financial Statements. At June 30, 2015 , Kimball had no assets classified as held for sale. During fiscal year 2015, an aircraft which had been used primarily for management travel totaling $1.3 million was classified as held for sale during the second quarter of fiscal year 2015, and was subsequently sold during the third quarter of fiscal year 2015. We recognized a pre-tax gain of $0.2 million related to the sale of the aircraft during the third quarter of fiscal year 2015 which partially offsets the pre-tax impairment charge recorded in the second quarter of fiscal year 2015 of $1.1 million , due to the book value of the aircraft exceeding current fair market value estimates less selling costs. The impairment and gain were both recorded on the Restructuring Expense line of the Consolidated Statements of Income. During fiscal year 2014, we sold an underutilized aircraft and recognized pre-tax losses for impairment of $1.2 million . We also sold an idle manufacturing facility and land located in Jasper, Indiana, recognizing a pre-tax gain of $1.7 million during fiscal year 2014. Both the pre-tax gains and pre-tax losses were recorded on the Selling and Administrative Expenses line of the Consolidated Statements of Income. Our former EMS segment sold a facility and land located in Gaylord, Michigan, recognizing a pre-tax loss of $0.3 million during fiscal year 2014. The loss was included in the Income from Discontinued Operations, Net of Tax line on the Consolidated Statements of Income. |
Note 5. Commitments and Conting
Note 5. Commitments and Contingent Liabilities | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingent Liabilities Leases: Operating leases for certain offices, showrooms, a manufacturing facility, land, and equipment, which expire from fiscal year 2017 to 2026 , contain provisions under which minimum annual lease payments are, in millions, $3.4 , $3.0 , $2.6 , $2.5 , and $2.4 for the five years ending June 30, 2021 , respectively, and aggregate $6.5 million from fiscal year 2022 to the expiration of the leases in fiscal year 2026 . We are obligated under certain real estate leases to maintain the properties and pay real estate taxes. Certain leases include renewal options and escalation clauses. Total rental expense from continuing operations amounted to, in millions, $6.7 , $4.9 , and $4.1 in fiscal years 2016 , 2015 , and 2014 , respectively, including certain leases requiring contingent lease payments based on warehouse space utilized, which amounted to expense of, in millions, $2.4 , $1.0 , and $0.8 in fiscal years 2016 , 2015 , and 2014 , respectively. As of June 30, 2016 and 2015 , capital leases were not material. Guarantees: Standby letters of credit are issued to third-party suppliers, lessors, and insurance and financial institutions and can only be drawn upon in the event of Kimball’s failure to pay its obligations to the beneficiary. We had a maximum financial exposure from unused standby letters of credit totaling $1.4 million as of June 30, 2016 and $1.0 million as of June 30, 2015 . We are periodically required to provide performance bonds in order to conduct business with certain customers. The bonds are required to provide assurances to customers that the products and services they have purchased will be installed and/or provided properly and without damage to their facilities. We are ultimately liable for claims that may occur against the performance bonds. We had a maximum financial exposure from performance bonds totaling $1.5 million as of June 30, 2016 and an immaterial amount as of June 30, 2015 . We are not aware of circumstances that would require us to perform under any of these arrangements and believe that the resolution of any claims that might arise in the future, either individually or in the aggregate, would not materially affect our consolidated financial statements. Accordingly, no liability has been recorded as of June 30, 2016 and 2015 with respect to the standby letters of credit or performance bonds. Kimball also enters into commercial letters of credit to facilitate payments to vendors and from customers. Product Warranties: We estimate product warranty liability at the time of sale based on historical repair or replacement cost trends in conjunction with the length of the warranty offered. Management refines the warranty liability periodically based on changes in historical cost trends and in certain cases where specific warranty issues become known. Changes in the product warranty accrual during fiscal years 2016 , 2015 , and 2014 were as follows: (Amounts in Thousands) 2016 2015 2014 Product Warranty Liability at the beginning of the year $ 2,264 $ 3,221 $ 2,384 Additions to warranty accrual (including changes in estimates) 1,165 880 2,883 Settlements made (in cash or in kind) (1,078 ) (927 ) (2,046 ) Distribution to Kimball Electronics, Inc. — (910 ) — Product Warranty Liability at the end of the year $ 2,351 $ 2,264 $ 3,221 Other Contingency: The U.S. government, as well as state and local governments, can typically terminate or modify their contracts with us either at their discretion or if we default by failing to perform under the terms of the applicable contract, which could expose us to liability. The failure to comply with regulatory and contractual requirements could subject us to investigations, fines, or other penalties, and violations of certain regulatory and contractual requirements could also result in us being suspended or debarred from future government contracting. In March 2016, in connection with a renewal of one of our contracts, we became aware of noncompliance and inaccuracies in our General Services Administration (“GSA”) subcontractor reporting. Accordingly, we retained outside legal counsel to assist in conducting an internal review of our reporting practices, and we self-reported the matter and the results of the internal review to the GSA. We have promptly responded to inquiries from the GSA since our initial reporting, and we intend to cooperate fully with any further inquiries or investigations. While we are not able to reasonably estimate the future financial impact, if any, of the possible sanctions at this time, any of them could, if imposed, have a material adverse impact on our business, future financial position, results of operations, or cash flows. The timing of the government’s review and determination of any outcome of these matters is uncertain and, therefore, it is unclear as to when and to what extent, if any, our previously issued earnings guidance might be impacted. We have incurred, and will continue to incur, legal and related costs in connection with our internal review and the government’s response to this matter. During fiscal year 2016, sales related to our GSA contracts were approximately 8.9% of total Kimball International, Inc. sales, with one contract accounting for approximately 5.0% of total Kimball International, Inc. sales and the other contract accounting for approximately 3.9% of Kimball International, Inc. sales. |
Note 6. Long-Term Debt and Cred
Note 6. Long-Term Debt and Credit Facilities | 12 Months Ended |
Jun. 30, 2016 | |
Long-Term Debt and Credit Facility [Abstract] | |
Debt Disclosure | Long-Term Debt and Credit Facilities Long-term debt, less current maturities as of June 30, 2016 and 2015 , was, in thousands, $212 and $241 , respectively, and current maturities of long-term debt were, in thousands, $29 and $27 , respectively. Long-term debt consists of a long-term note payable and capitalized leases. Interest rates range from 2.50% to 9.25% and maturities occur in fiscal years 2018 and 2025 . Aggregate maturities of long-term debt for the next five years are, in thousands, $29 , $27 , $23 , $25 , and $27 , respectively, and aggregate $110 thereafter. We maintain a $30 million credit facility with a maturity date of October 31, 2019 that allows for both issuances of letters of credit and cash borrowings. This facility provides an option to increase the amount available for borrowing to $55 million at our request, subject to the consent of the participating banks. At June 30, 2016 and 2015 , we had no borrowings outstanding under the credit facility. At June 30, 2016 , we had $1.4 million in letters of credit outstanding, which reduced our borrowing capacity on the credit facility to $28.6 million . The revolving loans under the Credit Agreement may consist of, at the Company’s election, advances in U.S. dollars or advances in any other currency that is agreed to by the lenders. The proceeds of the revolving loans are to be used for general corporate purposes of the Company including acquisitions. A portion of the credit facility, not to exceed $10 million of the principal amount, will be available for the issuance of letters of credit. The commitment fee is payable on the unused portion of the credit facility which was immaterial to our operating results for fiscal years 2016 and 2015. The commitment fee on the unused portion of principal amount of the credit facility is payable at a rate that ranges from 20.0 to 25.0 basis points per annum as determined by the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA. The interest rate is dependent on the type of borrowings and will be one of the following two options: • The adjusted London Interbank Offered Rate (“Adjusted LIBO Rate” as defined in the Credit Agreement) in effect two business days prior to the advance (adjusted upwards to reflect bank reserve costs) for such interest period, plus the Eurocurrency Loans margin which can range from 125.0 to 175.0 basis points based on the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA; or • The Alternate Base Rate, which is defined as the highest of the fluctuating rate per annum equal to the higher of a. JPMorgan’s prime rate; b. 1% per annum above the Adjusted LIBO rate; or c. 1/2% per annum above the Federal funds rate; plus the ABR Loans spread which can range from 25.0 to 75.0 basis points based on the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA. The Company’s financial covenants under the Credit Agreement require: • An adjusted leverage ratio of (a) consolidated total indebtedness minus unencumbered U.S. cash on hand in the U.S. in excess of $15,000,000 to (b) consolidated EBITDA, determined as of the end of each of its fiscal quarters for the then most recently ended four fiscal quarters, to not be greater than 3.0 to 1.0 , and • A fixed charge coverage ratio of (a) the sum of (i) consolidated EBITDA, minus (ii) 50% of depreciation expense, minus (iii) taxes paid, minus (iv) dividends and distributions paid, to (b) the sum of (i) scheduled principal payments on indebtedness due and/or paid, plus (ii) interest expense, calculated on a consolidated basis in accordance with GAAP, determined as of the end of each of its fiscal quarters for the trailing four fiscal quarters then ending, to not be less than 1.10 to 1.00 . Cash payments for interest on borrowings were, in thousands, $22 , $29 , and $29 , in fiscal years 2016 , 2015 , and 2014 , respectively. Capitalized interest expense was immaterial during fiscal years 2016 , 2015 , and 2014 . |
Note 7. Employee Benefit Plans
Note 7. Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2016 | |
Employee Benefit Plans [Abstract] | |
Pension and Postemployment Benefits | Employee Benefit Plans Retirement Plans: Kimball has a trusteed defined contribution retirement plan in effect for substantially all domestic employees meeting the eligibility requirements. Employer contributions to the trusteed plan have a five-year vesting schedule and are held for the sole benefit of participants. Kimball also maintains a supplemental employee retirement plan (“SERP”) for executive employees which enables them to defer cash compensation on a pre-tax basis in excess of IRS limitations. The SERP is structured as a rabbi trust, and therefore assets in the SERP portfolio are subject to creditor claims in the event of bankruptcy. In connection with the spin-off during fiscal year 2015, the Company transferred the retirement plan balances of EMS employees to Kimball Electronics retirement plans. The discretionary employer contribution for domestic employees is determined annually by the Compensation and Governance Committee of the Board of Directors. Total expense from continuing operations related to employer contributions to the domestic retirement plans was, in millions, $4.3 , $4.3 , and $4.0 for fiscal years 2016 , 2015 , and 2014 , respectively. Employees of certain foreign subsidiaries are covered by local pension or retirement plans. The expense from continuing operations related to employer contributions to these foreign plans for fiscal years 2016 , 2015 , and 2014 was not material. Severance Plans: Kimball’s domestic employees participate in severance plans which provide severance benefits to eligible employees meeting the plans’ qualifications, primarily for involuntary termination without cause. In connection with the spin-off during fiscal year 2015, the Company transferred the post-employment obligation for EMS employees to Kimball Electronics. There are no statutory requirements for Kimball to contribute to the plans, nor do employees contribute to the plans. The plans hold no assets. Benefits are paid using available cash on hand when eligible employees meet plan qualifications for payment. Benefits are based upon an employee’s years of service and accumulate up to certain limits specified in the plans and include both salary and an allowance for medical benefits. The components and changes in the Benefit Obligation, Accumulated Other Comprehensive Income (Loss), and Net Periodic Benefit Cost are as follows: June 30 (Amounts in Thousands) 2016 2015 Changes and Components of Benefit Obligation: Benefit obligation at beginning of year $ 2,855 $ 5,350 Service cost 490 645 Interest cost 74 96 Actuarial (gain) loss for the period (576 ) (895 ) Benefits paid (28 ) (168 ) Distribution to Kimball Electronics, Inc. — (2,173 ) Benefit obligation at end of year $ 2,815 $ 2,855 Balance in current liabilities $ 494 $ 501 Balance in noncurrent liabilities 2,321 2,354 Total benefit obligation recognized in the Consolidated Balance Sheets $ 2,815 $ 2,855 June 30 (Amounts in Thousands) 2016 2015 Changes and Components in Accumulated Other Comprehensive Income (Loss) (before tax): Accumulated Other Comprehensive Income (Loss) at beginning of year $ (2,011 ) $ (1,567 ) Change in unrecognized prior service cost — (185 ) Net change in unrecognized actuarial (gain) loss (135 ) (603 ) Distribution to Kimball Electronics, Inc. — 344 Accumulated Other Comprehensive Income (Loss) at end of year $ (2,146 ) $ (2,011 ) Balance in unrecognized prior service cost $ — $ — Balance in unrecognized actuarial (gain) loss (2,146 ) (2,011 ) Total Accumulated Other Comprehensive Income (Loss) recognized in Share Owners’ Equity $ (2,146 ) $ (2,011 ) (Amounts in Thousands) Year Ended June 30 Components of Net Periodic Benefit Cost (before tax): 2016 2015 2014 Service cost $ 490 $ 645 $ 955 Interest cost 74 96 134 Amortization of prior service cost — 185 286 Amortization of actuarial (gain) loss (441 ) (292 ) 338 Net periodic benefit cost — Total cost $ 123 $ 634 $ 1,713 Less: Discontinued operations — 81 343 Net periodic benefit cost — Continuing operations $ 123 $ 553 $ 1,370 The benefit cost in the above table includes only normal recurring levels of severance activity, as estimated using an actuarial method. Unusual or non-recurring severance actions, such as those disclosed in Note 18 - Restructuring Expense of Notes to Consolidated Financial Statements, are not estimable using actuarial methods and are expensed in accordance with other applicable U.S. GAAP. Prior service cost was amortized on a straight-line basis over the average remaining service period of employees that were active at the time of the plan initiation, and was fully amortized during fiscal year 2015. Actuarial (gain) loss is amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits under the plan. The estimated actuarial net (gain) loss from continuing operations for the severance plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost (income) over the next fiscal year is, pre-tax in thousands, $(460) . Assumptions used to determine fiscal year end benefit obligations are as follows: 2016 2015 Discount Rate 2.2% 2.8% Rate of Compensation Increase 3.0% 3.0% Weighted average assumptions used to determine fiscal year net periodic benefit costs are as follows: 2016 2015 2014 Discount Rate 2.7% 2.6% 2.5% Rate of Compensation Increase 3.0% 3.0% 3.0% |
Note 8. Stock Compensation Plan
Note 8. Stock Compensation Plans | 12 Months Ended |
Jun. 30, 2016 | |
Stock Compensation Plans [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments | Stock Compensation Plans On August 13, 2013, the Board of Directors adopted the Amended and Restated 2003 Stock Option and Incentive Plan (“the 2003 Plan”), which was approved by Kimball’s Share Owners on October 15, 2013. Under the 2003 Plan, 5,000,000 shares of Common Stock are reserved for issuance of new awards and awards that had been issued under a former 2003 Stock Option and Incentive Plan. The 2003 Plan allows for issuance of restricted stock, restricted share units, unrestricted share grants, incentive stock options, nonqualified stock options, performance shares, performance units, and stock appreciation rights for grant to officers and other key employees and to members of the Board of Directors who are not employees. The 2003 Plan expires December 31, 2018. The pre-tax compensation cost from continuing operations charged against income was $5.6 million in both fiscal years 2016 and 2015 , and $5.5 million in fiscal year 2014 . The total income tax benefit from continuing operations for stock compensation arrangements was $2.2 million in each fiscal year 2016 , 2015 , and 2014 . We generally use treasury shares for issuance of shares. Performance Shares: Kimball awards performance shares to officers and other key employees. Under these awards, a number of shares will be issued to each participant based upon the attainment of the applicable performance conditions as applied to a total potential share award made and approved by the Compensation and Governance Committee. We currently have two types of performance share awards outstanding, an annual performance share award with a contractual life of one year and a long-term performance share award with a contractual life of five years . The performance conditions for both types of performance share awards are based on annual performance measurement periods and are vested when issued as Common Stock shortly after the end of the fiscal year in which each performance measurement period is complete. Therefore, the long-term performance share awards include shares applicable to performance measurement periods in future fiscal years that will be measured at fair value when the performance targets are established in future fiscal years. The long-term performance share awards are being phased out and will be in effect for another three fiscal years. If a participant is not employed on the date shares are issued, the performance share award is forfeited, except in the case of death, retirement at age 62 or older, total permanent disability, or certain other circumstances described in Kimball’s employment policy. To the extent performance conditions are not fully attained, performance shares are forfeited. A summary of performance share activity during fiscal year 2016 is presented below: Number of Shares Weighted Average Grant Date Fair Value Performance Shares outstanding at July 1, 2015 780,658 $10.21 Granted 111,695 $12.12 Vested (352,924 ) $10.21 Forfeited (56,330 ) $10.79 Performance Shares outstanding at June 30, 2016 483,099 $12.12 As of June 30, 2016 , there was approximately $3.0 million of unrecognized compensation cost related to performance shares, based on the latest estimated attainment of performance goals. That cost is expected to be recognized over annual performance periods ending July 2016 through July 2019, with a weighted average vesting period of one year . The fair value of performance shares is based on the stock price at the date of grant, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding performance share awards. The weighted average grant date fair value was $12.12 and $14.93 for performance share awards granted in fiscal years 2016 and 2014 , respectively. Awards granted in fiscal year 2014 were based on pre-spin-off stock prices. There were no performance share awards granted in fiscal year 2015 because the awards applicable to the fiscal year 2015 were actually granted shortly before the beginning of fiscal year 2015, in June 2014. During fiscal years 2016 , 2015 , and 2014 , respectively, 352,924 ; 649,524 ; and 512,719 performance shares vested at a fair value of $3.6 million , $7.2 million , and $5.6 million . The performance shares vested represent the total number of shares vested prior to the reduction of shares withheld to satisfy tax withholding obligations. The number of shares presented in the above table, the amounts of unrecognized compensation, and the weighted average period include performance shares awarded that are applicable to future performance measurement periods and will be measured at fair value when the performance targets are established in future fiscal years. Relative Total Shareholder Return Performance Units: Kimball awards relative total shareholder return performance units (“RTSR”) to key officers. Under these awards, a participant will earn from 0% to 200% of the target award depending upon how the compound annual growth rate of Kimball common stock ranks within the peer group at the end of the performance period. RTSRs are vested when issued shortly after the performance measurement period is complete and are issued as common shares. The contractual life of the RTSRs is generally three years . The first issuance of RTSR’s in February 2015 was for a period of two years, four months due to a transition of compensation levels shortly after the spin-off of Kimball Electronics. If a participant is not employed on the date shares are issued, the RTSR award is forfeited, except in the case of death, retirement at age 62 or older, total permanent disability, or certain other circumstances described in Kimball’s employment policy. To the extent performance conditions are not fully attained, RTSRs are forfeited. A summary of RTSR activity during fiscal year 2016 is presented below: Number of Shares Weighted Average Grant Date Fair Value RTSRs outstanding at July 1, 2015 30,198 $11.48 Granted 36,093 $15.10 Vested — $— Forfeited — $— RTSRs outstanding at June 30, 2016 66,291 $13.45 As of June 30, 2016 , assuming a target of 100% , there was approximately $0.5 million of unrecognized compensation cost related to RTSRs. That cost is expected to be recognized over the vesting periods ending June 2017 through June 2018, with a weighted average vesting period of one year, seven months . The grant date fair value of RTSR awards was calculated using a Monte Carlo simulation. This valuation technique includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. The weighted average grant date fair value was $15.10 and $11.48 for RTSR awards granted in fiscal years 2016 and 2015 , respectively. During fiscal years 2016 , 2015 , and 2014 , no RTSRs vested. Restricted Share Units: Restricted Share Units (“RSUs”) were granted to officers and key employees. Upon vesting, the outstanding number of RSUs and the value of dividends accumulated over the vesting period are converted to shares of common stock. The contractual life of the RSUs is generally three years , however certain awards have shorter contractual lives in order to transition from other types of compensation. If the employment of a holder of an RSU terminates before the RSU has vested for any reason other than death, retirement at age 62 or older, total permanent disability, or certain other circumstances described in the Company’s employment policy, the RSU and accumulated dividends will be forfeited. A summary of RSU activity during fiscal year 2016 is presented below: Number of Shares Weighted Average Grant Date Fair Value RSUs outstanding at July 1, 2015 143,940 $9.16 Granted 98,204 $12.19 Vested (79,461 ) $9.42 Forfeited (2,706 ) $12.32 RSUs outstanding at June 30, 2016 159,977 $10.83 As of June 30, 2016 , there was approximately $0.9 million of unrecognized compensation cost related to nonvested RSU compensation arrangements. That cost is expected to be recognized over vesting periods ending June 2017 and June 2018, with a weighted average vesting period of one year, six months . The fair value of RSU awards is based on the stock price at the date of award. The weighted average grant date fair value was $12.19 and $9.15 for RSU awards granted in fiscal years 2016 and 2015 , respectively. During fiscal years 2016 and 2015 , respectively, 79,461 and 45,009 RSUs vested at a fair value of $1.2 million and $0.4 million , respectively. The RSU awards vested represent the total number of shares vested prior to the reduction of shares withheld to satisfy tax withholding obligations. Unrestricted Share Grants: Unrestricted shares may be granted to employees and members of the Board of Directors as consideration for service to Kimball. Unrestricted share grants do not have vesting periods, holding periods, restrictions on sale, or other restrictions. The fair value of unrestricted shares is based on the stock price at the date of the award. During fiscal year 2016 Kimball granted a total of 47,471 unrestricted shares of common stock at an average grant date fair value of $11.21 , for a total fair value, in thousands, of $532 . Prior to the spin-off, during fiscal year 2015 , Kimball granted a total of 17,335 unrestricted shares of Class B common stock at an average grant date fair value of $16.01 , for a total fair value, in thousands, of $278 . After the spin-off, during fiscal year 2015 , Kimball granted a total of 17,529 unrestricted shares of common stock at an average grant date fair value of $8.79 , for a total fair value, in thousands, of $154 . During fiscal year 2014 , Kimball granted a total of 20,277 unrestricted shares of Class B common stock at an average grant date fair value of $11.47 , for a total fair value, in thousands, of $233 . These shares are the total number of shares granted, prior to the reduction of shares withheld to satisfy tax withholding obligations. Unrestricted shares were awarded to officers and other key employees, and to non-employee members of the Board of Directors as compensation for director’s fees, as a result of directors’ elections to receive unrestricted shares in lieu of cash payment. Director’s fees are expensed over the period that directors earn the compensation. |
Note 9. Income Taxes
Note 9. Income Taxes | 12 Months Ended |
Jun. 30, 2016 | |
Income Taxes [Abstract] | |
Income Tax Disclosure | Income Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Income tax benefits associated with net operating losses of, in thousands, $2,630 expire from fiscal year 2016 to 2036 . Income tax benefits associated with tax credit carryforwards of, in thousands, $2,570 , expire from fiscal year 2016 to 2028 . A valuation allowance was provided as of June 30, 2016 for deferred tax assets relating to state net operating losses of, in thousands, $687 that we currently believe are more likely than not to remain unrealized in the future. The components of the deferred tax assets and liabilities as of June 30, 2016 and 2015 , were as follows: (Amounts in Thousands) 2016 2015 Deferred Tax Assets: Receivables $ 1,254 $ 1,137 Inventory 384 528 Employee benefits 485 382 Deferred compensation 11,348 12,810 Other current liabilities 504 134 Warranty reserve 915 881 Tax credit carryforwards 2,492 2,472 Restructuring 176 1,017 Net operating loss carryforward 2,630 2,525 Miscellaneous 2,366 2,055 Valuation Allowance (687 ) (687 ) Total asset $ 21,867 $ 23,254 Deferred Tax Liabilities: Property and equipment $ 8,483 $ 7,353 Capitalized software 31 146 Miscellaneous 563 427 Total liability $ 9,077 $ 7,926 Net Deferred Tax Assets $ 12,790 $ 15,328 The provision for income taxes from continuing operations is composed of the following items: Year Ended June 30 (Amounts in Thousands) 2016 2015 2014 Currently Payable: Federal $ 7,548 $ 4,553 $ 6,108 State 1,184 885 1,118 Total current $ 8,732 $ 5,438 $ 7,226 Deferred Taxes: Federal $ 3,081 $ 616 $ (4,514 ) State 421 482 (1,122 ) Total deferred $ 3,502 $ 1,098 $ (5,636 ) Valuation allowance — — (797 ) Total provision for income taxes from continuing operations $ 12,234 $ 6,536 $ 793 A reconciliation of the statutory U.S. income tax rate from continuing operations to Kimball’s effective income tax rate follows: Year Ended June 30 2016 2015 2014 (Amounts in Thousands) Amount % Amount % Amount % Tax provision computed at U.S. federal statutory rate $ 11,686 35.0 % $ 6,188 35.0 % $ 1,474 35.0 % State income taxes, net of federal income tax benefit 1,043 3.1 662 3.7 (45 ) (1.1 ) Valuation allowance — — — — (797 ) (18.9 ) Domestic manufacturing deduction (286 ) (0.9 ) (602 ) (3.4 ) (327 ) (7.8 ) Research credit (346 ) (1.0 ) (218 ) (1.2 ) (115 ) (2.7 ) Spin-off costs — — 784 4.4 422 10.0 Unrecognized tax benefit — — (851 ) (4.8 ) — — Other - net 137 0.4 573 3.3 181 4.3 Total provision for income taxes from continuing operations $ 12,234 36.6 % $ 6,536 37.0 % $ 793 18.8 % Net cash payments for income taxes were, in thousands, $7,963 , $13,306 , and $13,911 in fiscal years 2016 , 2015 , and 2014 , respectively. Changes in the unrecognized tax benefit, excluding accrued interest and penalties, during fiscal years 2016 , 2015 , and 2014 were as follows: (Amounts in Thousands) 2016 2015 2014 Beginning balance - July 1 $ 1,920 $ 2,692 $ 2,752 Tax positions related to prior fiscal years: Additions 301 351 415 Reductions (43 ) — — Tax positions related to current fiscal year: Additions — — — Reductions — — — Settlements — — — Lapses in statute of limitations (101 ) (1,123 ) (475 ) Ending balance - June 30 $ 2,077 $ 1,920 $ 2,692 Portion that, if recognized, would reduce tax expense and effective tax rate $ 1,407 $ 1,307 $ 2,159 We recognize interest and penalties related to unrecognized tax benefits in the Provision for Income Taxes line of the Consolidated Statements of Income. Amounts accrued for interest and penalties were as follows: As of June 30 (Amounts in Thousands) 2016 2015 2014 Accrued Interest and Penalties: Interest $ 102 $ 104 $ 285 Penalties $ 108 $ 105 $ 95 Interest and penalties income (expense) recognized for fiscal years 2016 , 2015 , and 2014 were, in thousands, $(1) , $171 , and $(25) , respectively. Kimball, or one of its wholly-owned subsidiaries, files U.S. federal income tax returns and income tax returns in various state and local jurisdictions. We are no longer subject to any significant U.S. federal tax examinations by tax authorities for years before fiscal year 2013, and to various state and local income tax examinations by tax authorities for years before 2007. We do not expect the change in the amount of unrecognized tax benefits in the next 12 months to have a significant impact on our results of operations or financial position. |
Note 10. Common Stock
Note 10. Common Stock | 12 Months Ended |
Jun. 30, 2016 | |
Common Stock [Abstract] | |
Common Stock Note Disclosure | Common Stock On October 30, 2014, holders of a sufficient number of shares of Class A common stock converted such shares into Class B common stock such that the number of outstanding shares of Class A common stock was, after such conversions, less than 15% of the total number of issued and outstanding shares of both Class A common stock and Class B common stock. Pursuant to the Company’s Amended and Restated Articles of Incorporation when the number of shares of Class A common stock issued and outstanding was reduced to less than 15% of the total number of issued and outstanding shares of both Class A common stock and Class B common stock, then all of the rights, preferences, limitations and restrictions relating to Class B common stock shall become the same as the rights, preferences, limitations and restrictions of Class A common stock, without any further action of or by the Company’s Share Owners. In addition, all distinctions between Class A common stock and Class B common stock shall be eliminated so that all shares of Class B common stock are equal to shares of Class A common stock with respect to all matters, including without limitation, dividend payments and voting rights. The elimination of such distinctions, which occurred on October 30, 2014, is referred to as the “stock unification.” As a result of the stock unification, Class A common stock and Class B common stock now vote as a single class (except as otherwise required by applicable law) on all matters submitted to a vote of the Company’s Share Owners. We deregistered our shares of Class A common stock under the Exchange Act effective in September 2015. Deregistration did not affect the rights of Share Owners who chose to continue to hold their Class A shares. |
Note 11. Fair Value
Note 11. Fair Value | 12 Months Ended |
Jun. 30, 2016 | |
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 fiscal years 2016 and 2015 . We invested $0.5 million in non-marketable equity securities of a privately-held company during fiscal year 2016. This investment is classified as a level 3 financial asset, as explained in the Financial Instruments Not Carried At Fair Value section below. No other purchases or sales of level 3 assets occurred during the fiscal years ended June 30, 2016 and 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 June 30, 2016 and 2015 , the fair values of financial assets and liabilities that are measured at fair value on a recurring basis using the market approach are categorized as follows: (Amounts in Thousands) June 30, 2016 June 30, 2015 Cash equivalents $ 45,880 $ 23,414 Trading Securities: Mutual funds in nonqualified SERP 10,001 10,353 Total assets at fair value $ 55,881 $ 33,767 The nonqualified supplemental employee retirement plan (“SERP”) assets consist primarily of equity funds, balanced funds, a bond fund, and a money market fund. The SERP investment assets are offset by a SERP liability which represents Kimball’s obligation to distribute SERP funds to participants. See Note 13 - Investments of Notes to Consolidated Financial Statements for further information regarding the SERP. Non-Recurring Fair Value Measurements: Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments when events or circumstances indicate a significant adverse effect on the fair value of the asset. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. Non-recurring fair value adjustment Level Valuation Technique/Inputs Used Impairment of assets held for sale (real estate and property & equipment) 3 Market - Quoted market prices for similar assets sold, adjusted for features specific to the asset During fiscal year 2015, we classified an aircraft as held for sale and recognized pre-tax impairment of $1.1 million due to the book value of the aircraft exceeding current fair market value estimates less selling costs. The aircraft was sold later in fiscal year 2015 at a pre-tax gain of $0.2 million . During fiscal year 2014, we classified another aircraft as held for sale and recognized pre-tax impairment of $1.2 million due to a significant downward shift in the market for private aviation aircraft. The aircraft was subsequently sold during fiscal year 2014. Our former EMS segment sold a facility and land located in Gaylord, Michigan, recognizing a pre-tax loss of $0.3 million during fiscal year 2014. Financial Instruments Not Carried At Fair Value: Financial instruments that are not reflected in the Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk Non-marketable equity securities (cost-method investments, which carry shares at cost except in the event of impairment) 3 Cost Method, with Impairment Recognized Using a Market-Based Valuation Technique - See the explanation below the table regarding the method used to periodically estimate the fair value of cost-method investments. 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 Investments in non-marketable equity securities are accounted for using the cost method because Kimball does not have the ability to exercise significant influence over the operating and financial policies of the investee. On a periodic basis, but no less frequently than quarterly, these investments are assessed for impairment when there are events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. If a significant adverse effect on the fair value of the investment were to occur and was deemed to be other-than-temporary, the fair value of the investment would be estimated, and the amount by which the carrying value of the cost-method investment exceeds its fair value would be recorded as an impairment loss. The carrying value of our cash deposit accounts, trade accounts receivable, trade accounts payable, and dividends payable approximates fair value due to the relatively short maturity and immaterial non-performance risk. |
Note 12. Derivative Instruments
Note 12. Derivative Instruments | 12 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | Derivative Instruments Our former EMS segment, classified as a discontinued operation, operated internationally and was therefore exposed to foreign currency exchange rate fluctuations in the normal course of business. The primary means of managing this exposure was to utilize natural hedges, such as aligning currencies used in the supply chain with the sale currency. To the extent natural hedging techniques did not fully offset currency risk, derivative instruments were used with the objective of reducing the residual exposure to certain foreign currency rate movements. Factors considered in the decision to hedge an underlying market exposure included the materiality of the risk, the volatility of the market, the duration of the hedge, the degree to which the underlying exposure was committed to, and the availability, effectiveness, and cost of derivative instruments. Derivative instruments were only utilized for risk management purposes and were not used for speculative or trading purposes. Forward contracts designated as cash flow hedges were used to protect against foreign currency exchange rate risks inherent in forecasted transactions denominated in a foreign currency. Foreign exchange contracts were also used to hedge against foreign currency exchange rate risks related to intercompany balances denominated in currencies other than the functional currencies. In limited cases due to unexpected changes in forecasted transactions, cash flow hedges may have ceased to meet the criteria to be designated as cash flow hedges. Depending on the type of exposure hedged, either a derivative contract in the opposite position of the undesignated hedge may have been purchased or the hedge may have been retained until it matured if the hedge had continued to provide an adequate offset in earnings against the currency revaluation impact of foreign currency denominated liabilities. As of June 30, 2016 and June 30, 2015, after the spin-off of the EMS segment, we held no derivative instruments. During fiscal years 2015 and 2014, prior to the spin-off, 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. See Note 17 - Comprehensive Income of Notes to Consolidated Financial Statements for the amount and changes in derivative gains and losses deferred in Accumulated Other Comprehensive Income. Information on derivative gains and losses in the Consolidated Statements of Income are presented below. The Effect of Derivative Instruments on Other Comprehensive Income (Loss) June 30 (Amounts in Thousands) 2016 2015 2014 Amount of Pre-Tax Gain Recognized in Other Comprehensive Income (Loss) (OCI) on Derivatives (Effective Portion): Foreign exchange contracts $ — $ 2,513 $ 73 The Effect of Derivative Instruments on Consolidated Statements of Income (Amounts in Thousands) Fiscal Year Ended June 30 Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) 2016 2015 2014 Amount of Pre-Tax Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion): Foreign exchange contracts Income from Discontinued Operations, Net of Tax $ — $ 1,484 $ (1,187 ) 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 $ — $ 740 $ (487 ) Stock warrants Non-operating income — — (25 ) Total $ — $ 740 $ (512 ) Total Derivative Pre-Tax Gain (Loss) Recognized in Income $ — $ 2,224 $ (1,699 ) |
Note 13. Investments
Note 13. Investments | 12 Months Ended |
Jun. 30, 2016 | |
Investments [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | Investments Supplemental Employee Retirement Plan 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 Consolidated Balance Sheets at current fair value. A SERP liability of the same amount is recorded on the Consolidated Balance Sheets representing an obligation to distribute SERP funds to participants. The SERP investment assets are classified as trading, and accordingly, realized and unrealized gains and losses are recognized in income in the Other Income (Expense) category. Adjustments made to revalue the SERP liability are also recognized in income as selling and administrative expenses and offset valuation adjustments on SERP investment assets. Net unrealized holding gains (losses) from continuing operations for securities held at June 30, 2016 , 2015 , and 2014 were, in thousands, $(484) , $(644) , and $(72) , respectively. SERP asset and liability balances were as follows: June 30 (Amounts in Thousands) 2016 2015 SERP investments - current asset $ 768 $ 1,276 SERP investments - other long-term asset 9,233 9,077 Total SERP investments $ 10,001 $ 10,353 SERP obligation - current liability $ 768 $ 1,276 SERP obligation - other long-term liability 9,233 9,077 Total SERP obligation $ 10,001 $ 10,353 Non-marketable equity securities: We invested $0.5 million in non-marketable equity securities of a privately-held company during fiscal year 2016 . The securities were valued at $0.5 million at June 30, 2016 , and are included in the Other Assets line of the Consolidated Balance Sheets. See Note 11 - Fair Value of Notes to Consolidated Financial Statements for more information on the valuation of these securities. The investment does not rise to the level of a material variable interest or a controlling interest in the privately-held company which would require consolidation. |
Note 14. Accrued Expenses
Note 14. Accrued Expenses | 12 Months Ended |
Jun. 30, 2016 | |
Accrued Expenses [Abstract] | |
Accrued Liabilities Disclosure | Accrued Expenses Accrued expenses consisted of: June 30 (Amounts in Thousands) 2016 2015 Compensation $ 20,190 $ 21,824 Selling 6,492 6,418 Employer retirement contribution 4,102 4,091 Taxes 3,142 2,933 Insurance 3,726 2,770 Restructuring 391 2,504 Rent 2,698 2,153 Other expenses 3,551 2,732 Total accrued expenses $ 44,292 $ 45,425 |
Note 15. Geographic Information
Note 15. Geographic Information | 12 Months Ended |
Jun. 30, 2016 | |
Geographic Area Information [Abstract] | |
Geographic Information [Text Block] | Geographic Information The following geographic area data includes net sales from continuing operations based on the location where title transfers. Substantially all long-lived assets of the Company’s continuing operations were located in the United States for each of the three fiscal years ended June 30, 2016 . Long-lived assets include property and equipment and other long-term assets such as software. Year Ended June 30 (Amounts in Thousands) 2016 2015 2014 Net Sales: United States $ 622,096 $ 578,551 $ 530,087 Other Foreign 13,006 22,317 13,730 Total Net Sales $ 635,102 $ 600,868 $ 543,817 |
Note 16. Earnings Per Share
Note 16. Earnings Per Share | 12 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share As a result of the October 30, 2014 stock unification, as further discussed in Note 10 - Common Stock of Notes to Consolidated Financial Statements, all distinctions between Class A common stock and Class B common stock were eliminated so that all shares of Class B common stock are equal to shares of Class A common stock with respect to all matters, including without limitation, dividend payments and voting rights. Therefore, beginning in fiscal year 2016 the earnings per share calculation includes all common stock in a single calculation. Prior to fiscal year 2016, earnings per share were computed using the two-class common stock method due to the dividend preference of Class B Common Stock which was in effect until the October 30, 2014 stock unification. Basic earnings per share are based on the weighted average number of shares outstanding during the period. Diluted earnings per share are based on the weighted average number of shares outstanding plus the assumed issuance of common shares and related payment of assumed dividends for all potentially dilutive securities. EARNINGS PER SHARE FROM CONTINUING OPERATIONS Year Ended June 30, 2016 Year Ended June 30, 2015 Year Ended June 30, 2014 (Amounts in Thousands, Except for Per Share Data) Class A Class B Total Class A Class B Total Basic Earnings Per Share from Continuing Operations: Dividends Declared $ 8,288 $ 536 $ 7,169 $ 7,705 $ 1,437 $ 6,090 $ 7,527 Undistributed Earnings (Loss) 12,868 287 3,151 3,438 (859 ) (3,249 ) (4,108 ) Income from Continuing Operations $ 21,156 $ 823 $ 10,320 $ 11,143 $ 578 $ 2,841 $ 3,419 Average Basic Shares Outstanding 37,462 3,231 35,414 38,645 8,026 30,378 38,404 Basic Earnings Per Share from Continuing Operations $ 0.56 $ 0.25 $ 0.29 $ 0.07 $ 0.09 Diluted Earnings Per Share from Continuing Operations: Dividends Declared and Assumed Dividends on Dilutive Shares $ 8,374 $ 536 $ 7,234 $ 7,770 $ 1,550 $ 6,091 $ 7,641 Undistributed Earnings (Loss) 12,782 280 3,093 3,373 (936 ) (3,286 ) (4,222 ) Income from Continuing Operations $ 21,156 $ 816 $ 10,327 $ 11,143 $ 614 $ 2,805 $ 3,419 Average Diluted Shares Outstanding 37,852 3,231 35,740 38,971 8,652 30,385 39,037 Diluted Earnings Per Share from Continuing Operations $ 0.56 $ 0.25 $ 0.29 $ 0.07 $ 0.09 Reconciliation of Basic and Diluted EPS from Continuing Operations Calculations: Income from Continuing Operations $ 21,156 $ 823 $ 10,320 $ 11,143 $ 578 $ 2,841 $ 3,419 Assumed Dividends Payable on Dilutive Shares 86 — 65 65 113 1 114 Increase (Reduction) in Undistributed Earnings (Loss) - allocated based on Class A and Class B shares (86 ) (7 ) (58 ) (65 ) (77 ) (37 ) (114 ) Income from Continuing Operations $ 21,156 $ 816 $ 10,327 $ 11,143 $ 614 $ 2,805 $ 3,419 Average Shares Outstanding for Basic EPS Calculation 37,462 3,231 35,414 38,645 8,026 30,378 38,404 Dilutive Effect of Average Outstanding Stock Awards 390 — 326 326 626 7 633 Average Shares Outstanding for Diluted EPS Calculation 37,852 3,231 35,740 38,971 8,652 30,385 39,037 EARNINGS PER SHARE FROM DISCONTINUED OPERATIONS Year Ended June 30, 2016 Year Ended June 30, 2015 Year Ended June 30, 2014 Class A Class B Class A Class B Basic Earnings Per Share $ 0.00 $ 0.24 $ 0.24 $ 0.78 $ 0.79 Diluted Earnings Per Share $ 0.00 $ 0.24 $ 0.23 $ 0.77 $ 0.77 EARNINGS PER SHARE (INCLUDING DISCONTINUED OPERATIONS) Year Ended June 30, 2016 Year Ended June 30, 2015 Year Ended June 30, 2014 (Amounts in Thousands, Except for Per Share Data) Class A Class B Total Class A Class B Total Basic Earnings Per Share: Dividends Declared $ 8,288 $ 536 $ 7,169 $ 7,705 $ 1,437 $ 6,090 $ 7,527 Undistributed Earnings 12,868 1,053 11,542 12,595 5,420 20,514 25,934 Net Income $ 21,156 $ 1,589 $ 18,711 $ 20,300 $ 6,857 $ 26,604 $ 33,461 Average Basic Shares Outstanding 37,462 3,231 35,414 38,645 8,026 30,378 38,404 Basic Earnings Per Share $ 0.56 $ 0.49 $ 0.53 $ 0.85 $ 0.88 Diluted Earnings Per Share: Dividends Declared and Assumed Dividends on Dilutive Shares $ 8,374 $ 536 $ 7,234 $ 7,770 $ 1,550 $ 6,091 $ 7,641 Undistributed Earnings 12,782 1,039 11,491 12,530 5,723 20,097 25,820 Net Income $ 21,156 $ 1,575 $ 18,725 $ 20,300 $ 7,273 $ 26,188 $ 33,461 Average Diluted Shares Outstanding 37,852 3,231 35,740 38,971 8,652 30,385 39,037 Diluted Earnings Per Share $ 0.56 $ 0.49 $ 0.52 $ 0.84 $ 0.86 |
Note 17. Accumulated Other Comp
Note 17. Accumulated Other Comprehensive Income | 12 Months Ended |
Jun. 30, 2016 | |
Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income During fiscal year 2016 and 2015 , the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: Postemployment Benefits (Amounts in Thousands) Foreign Currency Translation Adjustments Derivative Gain (Loss) Prior Service Costs Net Actuarial Gain (Loss) Accumulated Other Comprehensive Income Balance at June 30, 2014 $ 4,909 $ (3,411 ) $ (120 ) $ 1,062 $ 2,440 Other comprehensive income (loss) before reclassifications (6,070 ) 2,097 — 539 (3,434 ) Reclassification to (earnings) loss — (1,193 ) 112 (175 ) (1,256 ) Distribution to Kimball Electronics, Inc. 1,161 2,507 8 (197 ) 3,479 Net current-period other comprehensive income (loss) (4,909 ) 3,411 120 167 (1,211 ) Balance at June 30, 2015 $ — $ — $ — $ 1,229 $ 1,229 Other comprehensive income (loss) before reclassifications — — — 351 351 Reclassification to (earnings) loss — — — (269 ) (269 ) Net current-period other comprehensive income (loss) — — — 82 82 Balance at June 30, 2016 $ — $ — $ — $ 1,311 $ 1,311 The following reclassifications were made from Accumulated Other Comprehensive Income to the Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income Fiscal Year Ended Affected Line Item in the Consolidated Statements of Income June 30, (Amounts in Thousands) 2016 2015 Derivative Gain (1) $ — $ 1,193 Income (Loss) from Discontinued Operations, Net of Tax Postemployment Benefits: Amortization of Prior Service Costs (2) $ — $ (111 ) Cost of Sales — (61 ) Selling and Administrative Expenses — 68 Benefit (Provision) for Income Taxes $ — $ (104 ) Income (Loss) from Continuing Operations $ — $ (8 ) Income (Loss) from Discontinued Operations, Net of Tax Amortization of Actuarial Gain (2) $ 283 $ 159 Cost of Sales 158 120 Selling and Administrative Expenses (172 ) (111 ) Benefit (Provision) for Income Taxes $ 269 $ 168 Income (Loss) from Continuing Operations $ — $ 7 Income (Loss) from Discontinued Operations, Net of Tax Total Reclassifications for the Period $ 269 $ 64 Income (Loss) from Continuing Operations — 1,192 Income (Loss) from Discontinued Operations, Net of Tax $ 269 $ 1,256 Net Income (Loss) Amounts in parentheses indicate reductions to income. (1) See Note 12 - Derivative Instruments of Notes to Consolidated Financial Statements for further information on derivative instruments. (2) See Note 7 - Employee Benefit Plans of Notes to Consolidated Financial Statements for further information on postemployment benefit plans. |
Note 18. Restructuring Expense
Note 18. Restructuring Expense | 12 Months Ended |
Jun. 30, 2016 | |
Restructuring Expense [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring Expense We recognized pre-tax restructuring expense related to continuing operations, in millions, of $7.3 and $5.3 in fiscal years 2016 and 2015 , respectively. There was no restructuring related to continuing operations in fiscal year 2014 . We utilize available market prices and management estimates to determine the fair value of impaired fixed assets. Restructuring charges related to continuing operations are included in the Restructuring Expense line item on our Consolidated Statements of Income. Capacity Utilization Restructuring Plan: In November 2014, we announced a capacity utilization restructuring plan which included 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. The transfer of work from our Idaho facility involved the start-up of metal fabrication capabilities in an existing Company-owned facility, along with the transfer of certain assembly operations into two additional existing Company-owned facilities, all located in southern Indiana. All production was transferred out of the Idaho facility as of March 2016. Work continues in the Indiana facilities to train employees, ramp up production and eliminate the inefficiencies associated with the start-up of production in these facilities. We anticipate the improvement of customer delivery, supply chain dynamics, and reduction of transportation costs will generate annual pre-tax savings of approximately $5 million , with savings beginning to ramp up in our first quarter ending September 2016. We expect to achieve the full savings level by the end of our second quarter ending December 31, 2016. We were actively marketing for sale the Idaho facility and land which was classified as held for sale as of June 30, 2016. Subsequent to June 30, 2016, we sold the Idaho facility and land which is explained in Note 21 - Subsequent Events of Notes to Consolidated Financial Statements. 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, our annual pre-tax savings are $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 $12.7 million , of which $7.3 million was recorded in fiscal year 2016 and $5.3 million was recorded in fiscal year 2015. The restructuring charges consisted of approximately $4.9 million of transition, training, and other employee costs, $6.6 million of plant closure and other exit costs, and $1.1 million of non-cash asset impairment. Approximately 91% of the total cost estimate is expected to be cash expense. The total expected plan costs as of June 30, 2016 do not include a $2.1 million gain on the sale of the Post Falls land and facility which occurred subsequent to June 30, 2016 which will partially offset the total expected plan costs. Summary of Restructuring Plan: Accrued June 30, 2015 Fiscal Year Ended June 30, 2016 Total Charges Incurred Since Plan Announcement Total Expected Plan Costs (2) (Amounts in Thousands) Amounts Charged Cash Amounts Charged Non-cash Amounts Utilized/ Cash Paid Accrued June 30, 2016 (1) Capacity Realignment and Post Falls, Idaho Exit Transition and Other Employee Costs $ 2,613 $ 2,048 $ — $ (4,217 ) $ 444 $ 4,705 $ 4,705 Asset Write-downs — — 153 (153 ) — 284 284 Plant Closure and Other Exit Costs — 5,127 — (5,120 ) 7 6,583 6,617 Total $ 2,613 $ 7,175 $ 153 $ (9,490 ) $ 451 $ 11,572 $ 11,606 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 $ 7,175 $ 153 $ (9,490 ) $ 451 $ 12,618 $ 12,652 (1) The accrued restructuring balance at June 30, 2016 includes $0.4 million recorded in current liabilities and $0.1 million recorded in other long-term liabilities. (2) Excludes ongoing building maintenance costs such as property taxes, insurance, and utilities that will be incurred until the facility is sold. These costs will be included in the Restructuring line on the Consolidated Statements of Income as they are incurred. Discontinued Restructuring Plan Activities: Restructuring activities related to the EMS segment are included in the discontinued operations line item on our Consolidated Statements of Income, and totaled $0.4 million in fiscal year 2014 . We had no restructuring expense related to discontinued operations in fiscal years 2016 and 2015 . These discontinued operations restructuring plans were completed prior to fiscal year 2013 but continued to incur miscellaneous exit costs related to facility clean up or market value adjustments. These completed restructuring plans include the European Consolidation, Fremont, and Gaylord plans which were all related to the discontinued EMS segment. |
Note 19. Variable Interest Enti
Note 19. Variable Interest Entities | 12 Months Ended |
Jun. 30, 2016 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities Kimball’s involvement with variable interest entities (“VIEs”) are limited to situations 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 VIEs consists of an investment in non-marketable equity securities of a privately-held company, a note receivable related to the sale of the Indiana facility, and a note receivable for start-up financing of a new independent dealership. The non-marketable equity securities were valued at $0.5 million at June 30, 2016 , and are included in the Other Assets line of the Consolidated Balance Sheets. For more information related to our investment in the privately-held company, see Note 11 - Fair Value of Notes to Consolidated Financial Statements. The carrying value of the note receivable related to the sale of an Indiana facility, net of a $0.5 million allowance, was $0.8 million as of June 30, 2016 and was included on the Receivables line of our Consolidated Balance Sheets, as the entire note receivable is now short-term. As of June 30, 2015 , the carrying value of the note receivable, net of a $0.5 million allowance, was $0.9 million with the short-term portion of the carrying value included on the Receivables line and the long-term portion of the carrying value included on the Other Assets line of our Consolidated Balance Sheets. The carrying value of the note receivable for start-up financing of a new independent dealership was $0.3 million as of June 30, 2016 and was included on the Other Assets line of our Consolidated Balance Sheets. We have no obligation to provide additional funding to the VIEs, and thus our exposure and risk of loss related to the VIEs is limited to the carrying value of the investment and notes receivable. Financial support provided by Kimball to the VIEs was limited to the items discussed above during the fiscal year ended June 30, 2016 . |
Note 20. Credit Quality and All
Note 20. Credit Quality and Allowance for Credit Losses of Notes Receivable | 12 Months Ended |
Jun. 30, 2016 | |
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. Dealer lending represents start-up financing for a new independent dealership. As of June 30, 2016 and 2015 , Kimball had no material past due outstanding notes receivable. As of June 30, 2016 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 $ 1,302 $ 489 $ 813 $ 1,347 $ 489 $ 858 Dealer Lending 250 — 250 — — — Other Notes Receivable 333 139 194 439 149 290 Total $ 1,885 $ 628 $ 1,257 $ 1,786 $ 638 $ 1,148 |
Note 21 Subsequent Events (Note
Note 21 Subsequent Events (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to June 30, 2016, we sold our Post Falls, Idaho facility and land which was classified as held for sale. In the first quarter of fiscal year 2017, we will recognize a pre-tax gain of $2.1 million as the $12.0 million selling price exceeds the book value of the facility and land net of selling costs. |
Note 22. Quarterly Financial In
Note 22. Quarterly Financial Information (Unaudited) | 12 Months Ended |
Jun. 30, 2016 | |
Quarterly Financial Information (Unaudited) [Abstract] | |
Quarterly Financial Information | Quarterly Financial Information (Unaudited) Three Months Ended (Amounts in Thousands, Except for Per Share Data) September 30 December 31 March 31 June 30 Fiscal Year 2016: Net Sales $ 156,569 $ 163,819 $ 150,038 $ 164,676 Gross Profit 51,082 53,268 45,819 53,635 Restructuring Expense 1,186 2,014 2,761 1,367 Net Income 5,622 6,502 2,757 6,275 Basic Earnings Per Share $ 0.15 $ 0.17 $ 0.07 $ 0.17 Diluted Earnings Per Share $ 0.15 $ 0.17 $ 0.07 $ 0.17 Fiscal Year 2015: Net Sales (1) $ 144,446 $ 151,418 $ 145,943 $ 159,061 Gross Profit (1) 47,183 46,596 44,007 51,079 Restructuring Expense (1) — 3,335 388 1,567 Income (Loss) From Continuing Operations 1,517 (1 ) 4,882 4,745 Net Income 7,996 2,677 4,882 4,745 Basic Earnings (Loss) Per Share From Continuing Operations: Class A $ 0.04 $ (0.02 ) $ 0.12 $ 0.11 Class B $ 0.04 $ — $ 0.13 $ 0.12 Diluted Earnings (Loss) Per Share From Continuing Operations: Class A $ 0.04 $ (0.02 ) $ 0.12 $ 0.11 Class B $ 0.04 $ — $ 0.13 $ 0.12 Basic Earnings Per Share: Class A $ 0.20 $ 0.05 $ 0.12 $ 0.11 Class B $ 0.21 $ 0.07 $ 0.13 $ 0.12 Diluted Earnings Per Share: Class A $ 0.20 $ 0.05 $ 0.12 $ 0.11 Class B $ 0.21 $ 0.07 $ 0.13 $ 0.12 (1) Net sales, gross profit, and restructuring expense are from continuing operations. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | Schedule II. - Valuation and Qualifying Accounts Description Balance at Beginning of Year Additions (Reductions) to Expense Adjustments to Other Accounts (1) Write-offs and Recoveries Impact of Spin-Off Balance at End of Year (Amounts in Thousands) Year Ended June 30, 2016 Valuation Allowances: Short-Term Receivables $ 1,522 $ 374 $ 310 $ (61 ) $ — $ 2,145 Long-Term Notes Receivable $ 618 $ (11 ) $ (489 ) $ — $ — $ 118 Deferred Tax Asset $ 687 $ — $ — $ — $ — $ 687 Year Ended June 30, 2015 Valuation Allowances: Short-Term Receivables $ 2,345 $ 198 $ (65 ) $ (604 ) $ (352 ) $ 1,522 Long-Term Notes Receivable $ 628 $ (10 ) $ — $ — $ — $ 618 Deferred Tax Asset $ 787 $ — $ — $ (100 ) $ — $ 687 Year Ended June 30, 2014 Valuation Allowances: Short-Term Receivables $ 2,791 $ (20 ) $ (149 ) $ (277 ) $ — $ 2,345 Long-Term Notes Receivable $ — $ 628 $ — $ — $ — $ 628 Deferred Tax Asset $ 2,315 $ — $ — $ (1,528 ) $ — $ 787 (1) A valuation allowance totaling $489 thousand transferred from long-term to short-term during the year ended June 30, 2016. |
Note 1. Summary of Significan32
Note 1. Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated in the consolidation. |
Operating Segments | Operating Segments: We sell a portfolio of furniture products and services under three brands: Kimball Office, National Office Furniture, and Kimball Hospitality. We consider each of the three brands to be operating segments which aggregate into one reportable segment. The brands operate within six market verticals, selling to similar types of customers. Our products and services are similar in nature and utilize similar production and distribution processes. Our three brands share similar long-term economic characteristics. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts included in the consolidated financial statements and related note disclosures. While efforts are made to assure estimates used are reasonably accurate based on management’s knowledge of current events, actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition: We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Delivery is not considered to have occurred until the title and the risk of loss passes to the customer according to the terms of the contract. Title and risk of loss are transferred upon shipment to or receipt at our customers’ locations, or in limited circumstances, as determined by other specific sales terms of the transaction. Shipping and handling fees billed to customers are recorded as sales while the related shipping and handling costs are included in cost of goods sold. We recognize sales net of applicable sales tax. Based on estimated product returns and price concessions, a reserve for returns and allowances is recorded at the time of the sale, resulting in a reduction of revenue. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash equivalents consist primarily of highly liquid investments with original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist of bank accounts and money market funds. Bank accounts are stated at cost, which approximates fair value, and money market funds are stated at fair value. |
Notes Receivable and Trade Accounts Receivable | Notes Receivable and Trade Accounts Receivable: Kimball’s notes receivable and trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. We determine on a case-by-case basis the cessation of accruing interest, the resumption of accruing interest, the method of recording payments received on nonaccrual receivables, and the delinquency status for our limited number of notes receivable. Our policy for estimating the allowance for credit losses on trade accounts receivable and notes receivable includes analysis of such items as aging, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to determine the final allowance for credit losses on the trade accounts receivable and notes receivable. Trade accounts receivable and notes receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Our limited amount of notes receivable allows management to monitor the risks, credit quality indicators, collectability, and probability of impairment on an individual basis. Adjustments to the allowance for credit losses are recorded in selling and administrative expenses. Customary terms require payment within 30 days , with terms beyond 30 days being considered extended. |
Inventories | Inventories: Inventories are stated at the lower of cost or market value. Cost includes material, labor, and applicable manufacturing overhead. Costs associated with underutilization of capacity are expensed as incurred. The last-in, first-out (“LIFO”) method was used for approximately 93% and 91% of consolidated inventories at June 30, 2016 and June 30, 2015 , respectively. The remaining inventories were valued using the first-in, first-out (“FIFO”) method. Inventories are adjusted for excess and obsolete inventory. Evaluation of excess inventory includes such factors as anticipated usage, inventory turnover, inventory levels, and product demand levels. Factors considered when evaluating obsolescence include the age of on-hand inventory and reduction in value due to damage, use as showroom samples, design changes, or cessation of product lines. |
Property, Equipment, and Depreciation | Property, Equipment, and Depreciation: Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful life of the assets using the straight-line method for financial reporting purposes. Leasehold improvements are amortized on a straight-line basis over the shorter of the useful life of the improvement or the term of the lease. Major maintenance activities and improvements are capitalized; other maintenance, repairs, and minor renewals are expensed. Depreciation and expenses for maintenance, repairs and minor renewals are included in both the Cost of Sales line and the Selling and Administrative Expense line of the Consolidated Statements of Income. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: We perform reviews for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment is recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. When an impairment is identified, the carrying amount of the asset is reduced to its estimated fair value. Assets to be disposed of are recorded at the lower of net book value or fair market value less cost to sell at the date management commits to a plan of disposal. |
Impairment or Disposal of Intangible Assets | Intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. |
Other Intangible Assets | Internal-use software is stated at cost less accumulated amortization and is amortized using the straight-line method. During the software application development stage, capitalized costs include external consulting costs, cost of software licenses, and internal payroll and payroll-related costs for employees who are directly associated with a software project. Upgrades and enhancements are capitalized if they result in added functionality which enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion, and business process reengineering costs are expensed in the period in which they are incurred. Product rights to produce and sell certain products are amortized on a straight-line basis over their estimated useful lives. We have no intangible assets with indefinite useful lives which are not subject to amortization. |
Research and Development | Research and Development: The costs of research and development are expensed as incurred. |
Advertising | Advertising: Advertising costs are expensed as incurred. |
Insurance and Self-insurance | Insurance and Self-insurance: We are self-insured for certain employee health benefits including medical, short-term disability, and dental. Our self-insured reserves are estimated based upon a number of factors including known claims, estimated incurred but not reported claims, and other analyses, which are based on historical information along with certain assumptions about future events. Insurance benefits are not provided to retired employees. We also participate, along with other companies, in a group captive insurance company (“Captive”). The Captive insures losses related to workman's compensation, motor vehicle liability, product liability, and general liability. The Captive reinsures catastrophic losses for all participants, including Kimball, in excess of predetermined amounts. We pay premiums to the Captive which accumulate as a prepaid deposit estimated for losses related to the above coverage. We also maintain a reserve for outstanding unpaid workers’ compensation claims, including an estimate of incurred but not reported claims. Additionally, we purchase insurance coverage for property insurance, director and officer liability insurance, umbrella coverage, and other risks. |
Income Taxes | Income Taxes: Deferred income taxes are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The deferred taxes are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse. We evaluate the recoverability of deferred tax assets each quarter by assessing the likelihood of future taxable income and available tax planning strategies that could be implemented to realize our deferred tax assets. If recovery is not likely, we provide a valuation allowance based on our best estimate of future taxable income in the various taxing jurisdictions and the amount of deferred taxes ultimately realizable. Future events could change management’s assessment. We early adopted the Financial Accounting Standards Board (“FASB”) guidance on simplifying the balance sheet classification of deferred taxes, using the retrospective transition method, and thus have classified all deferred tax assets and liabilities as noncurrent in our consolidated balance sheets. |
Income Tax Uncertainties | We operate within multiple taxing jurisdictions and are subject to tax audits in these jurisdictions. These audits can involve complex uncertain tax positions, which may require an extended period of time to resolve. A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. We maintain a liability for uncertain income tax and other tax positions, including accrued interest and penalties on those positions. As tax positions are effectively settled, the tax liability is adjusted accordingly. We recognize interest and penalties related to unrecognized tax benefits in the Provision (Benefit) for Income Taxes line of the Consolidated Statements of Income. |
Concentrations of Credit Risk | Concentrations of Credit Risk: Certain business and credit risks are inherent in our business. Additionally, we currently have a note receivable related to the sale of an Indiana facility, a note receivable from a dealer, and other miscellaneous notes receivable which are included on the Receivables and Other Assets lines of the Consolidated Balance Sheets. |
Off-Balance-Sheet Risk | Off-Balance Sheet Risk: Our off-balance sheet arrangements are limited to standby letters of credit, a performance bond, and operating leases entered into in the normal course of business as described in Note 5 - Commitments and Contingent Liabilities of Notes to Consolidated Financial Statements. |
Non-operating Income and Expense | Non-operating Income and Expense: Non-operating income and expense include the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, foreign currency rate movements, bank charges, investment gain or loss, non-production rent income, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain or loss on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. |
Foreign Currency Translation | Foreign Currency Translation: Kimball's continuing foreign operation, a non-manufacturing office in China, uses the U.S. Dollar as its functional currency. Foreign currency assets and liabilities are remeasured into functional currencies at end-of-period exchange rates, except for nonmonetary assets and equity, which are remeasured at historical exchange rates. Revenue and expenses are remeasured at the weighted average exchange rate during the fiscal year, except for expenses related to nonmonetary assets, which are remeasured at historical exchange rates. Gains and losses from foreign currency remeasurement are reported in the Non-operating income or expense line item on the Consolidated Statements of Income. Gains and losses from foreign currency remeasurement into EUR and USD functional currencies related to our former EMS segment are included in the Income from Discontinued Operations, Net of Tax line item of the Consolidated Statements of Income. |
Derivative Instruments and Hedging Activities | During fiscal years 2015 and 2014, prior to the spin-off of our EMS segment, derivative instruments were utilized to hedge the exposure to foreign currency exchange rate fluctuations. See Note 12 - Derivative Instruments of Notes to Consolidated Financial Statements for more information on derivative instruments and hedging activities. |
Stock-Based Compensation | Stock-Based Compensation: As described in Note 8 - Stock Compensation Plans of Notes to Consolidated Financial Statements, Kimball maintains a stock-based compensation plan which allows for the issuance of restricted stock, restricted share units, unrestricted share grants, incentive stock options, nonqualified stock options, performance shares, performance units, and stock appreciation rights for grant to officers and other key employees and to members of the Board of Directors who are not employees. We recognize the cost resulting from share-based payment transactions using a fair-value-based method. The estimated fair value of outstanding performance shares and restricted share units is based on the stock price at the date of the grant. For performance shares, the price is reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding performance share awards. The estimated fair value of outstanding relative total shareholder return performance units (“RTSR”) is based on the grant date fair value of RTSR awards using a Monte Carlo simulation which includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. Stock-based compensation expense is recognized for the portion of the awards that are ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In June 2016, the FASB issued guidance on the measurement of credit losses on financial instruments. Under the guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The guidance is also intended to reduce the complexity by decreasing the number of credit impairment models that entities use to account for debt instruments. The guidance is effective for our first quarter of fiscal year 2021 with early adoption in our fiscal year 2020 permitted. We have not yet determined the effect of this guidance on our consolidated financial statements. In March 2016, the FASB issued guidance on simplifying the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification on the statement of cash flows. The guidance is effective for our first quarter of fiscal year 2018 with early adoption permitted. We have not yet selected a transition method nor determined the effect of this guidance on our consolidated financial statements. In February 2016, the FASB issued guidance that revises the accounting for leases. The guidance is intended to improve financial reporting of leasing transactions by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. Leases will continue to be classified as either operating or finance leases, with the classification affecting the pattern of expense recognition in the statement of income. The guidance will also require additional disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for our first quarter of fiscal year 2020 with early adoption permitted, and is required to be applied using a modified retrospective approach to each prior reporting period. We have not yet determined the effect of this guidance on our consolidated financial statements. In January 2016, the 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 have early adopted using the retrospective transition method for our fiscal year ending June 30, 2016, and thus have reclassified current deferred tax assets and liabilities to noncurrent in our consolidated balance sheet. As a result for June 30, 2015, $12.3 million of current deferred tax assets that were included in prepaid expenses and other current assets and $0.9 million of deferred tax liabilities that were included in other long term liabilities have been reclassified to noncurrent deferred tax assets in the consolidated balance sheet. 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 plan to adopt using the prospective transition method for our first quarter of fiscal year 2017, and we do not expect the adoption to have a material effect 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. In March 2016, the FASB issued additional guidance which further clarifies assessing whether an entity is a principal or an agent in a revenue transaction, and impacts whether an entity reports revenue on a gross or net basis; in April 2016, the FASB issued additional guidance that addresses identifying performance obligations and implementing licensing guidance; and in May 2016, the FASB issued additional guidance that clarifies collectability, noncash consideration, and other transition issues. The amendments have the same effective date and transition requirements as the new revenue standard. 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. |
Note 5. Commitments and Conti33
Note 5. Commitments and Contingent Liabilities (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingent Liabilities [Abstract] | |
Product Warranties | We estimate product warranty liability at the time of sale based on historical repair or replacement cost trends in conjunction with the length of the warranty offered. Management refines the warranty liability periodically based on changes in historical cost trends and in certain cases where specific warranty issues become known. |
Note 7. Employee Benefit Plans
Note 7. Employee Benefit Plans (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Employee Benefit Plans [Abstract] | |
Postemployment Benefit Plans | Prior service cost was amortized on a straight-line basis over the average remaining service period of employees that were active at the time of the plan initiation, and was fully amortized during fiscal year 2015. Actuarial (gain) loss is amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits under the plan. |
Note 11. Fair Value (Policies)
Note 11. Fair Value (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
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 fiscal years 2016 and 2015 . |
Fair Value of Financial Instruments Policy Continued | 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 |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets | Non-Recurring Fair Value Measurements: Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments when events or circumstances indicate a significant adverse effect on the fair value of the asset. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. Non-recurring fair value adjustment Level Valuation Technique/Inputs Used Impairment of assets held for sale (real estate and property & equipment) 3 Market - Quoted market prices for similar assets sold, adjusted for features specific to the asset |
Fair Value of Financial Instruments Not Carried at Fair Value | Financial Instruments Not Carried At Fair Value: Financial instruments that are not reflected in the Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk Non-marketable equity securities (cost-method investments, which carry shares at cost except in the event of impairment) 3 Cost Method, with Impairment Recognized Using a Market-Based Valuation Technique - See the explanation below the table regarding the method used to periodically estimate the fair value of cost-method investments. 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 Investments in non-marketable equity securities are accounted for using the cost method because Kimball does not have the ability to exercise significant influence over the operating and financial policies of the investee. On a periodic basis, but no less frequently than quarterly, these investments are assessed for impairment when there are events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. If a significant adverse effect on the fair value of the investment were to occur and was deemed to be other-than-temporary, the fair value of the investment would be estimated, and the amount by which the carrying value of the cost-method investment exceeds its fair value would be recorded as an impairment loss. The carrying value of our cash deposit accounts, trade accounts receivable, trade accounts payable, and dividends payable approximates fair value due to the relatively short maturity and immaterial non-performance risk. |
Note 12. Derivative Instrumen36
Note 12. Derivative Instruments (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments [Abstract] | |
Derivatives, Hedge Discontinuances, Anticipated Transactions [Policy Text Block] | In limited cases due to unexpected changes in forecasted transactions, cash flow hedges may have ceased to meet the criteria to be designated as cash flow hedges. Depending on the type of exposure hedged, either a derivative contract in the opposite position of the undesignated hedge may have been purchased or the hedge may have been retained until it matured if the hedge had continued to provide an adequate offset in earnings against the currency revaluation impact of foreign currency denominated liabilities. |
Derivatives, Reporting of Derivative Activity [Policy Text Block] | for derivative instruments that met the criteria of hedging instruments under FASB guidance, the effective portions of the gain or loss on the derivative instrument were initially recorded net of related tax effect in Accumulated Other Comprehensive Income, a component of Share Owners’ Equity, and were subsequently reclassified into earnings in the period or periods during which the hedged transaction was recognized in earnings. The gain or loss associated with derivative instruments that were not designated as hedging instruments or that ceased to meet the criteria for hedging under FASB guidance was recognized in earnings. |
Note 18. Restructuring Expense
Note 18. Restructuring Expense (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Restructuring Expense [Abstract] | |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy | We utilize available market prices and management estimates to determine the fair value of impaired fixed assets. Restructuring charges related to continuing operations are included in the Restructuring Expense line item on our Consolidated Statements of Income. |
Note 1. Summary of Significan38
Note 1. Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Other Intangible Assets | A summary of other intangible assets subject to amortization is as follows: June 30, 2016 June 30, 2015 (Amounts in Thousands) Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Capitalized Software $ 37,796 $ 34,775 $ 3,021 $ 37,744 $ 35,081 $ 2,663 Product Rights 372 372 — 372 366 6 Other Intangible Assets $ 38,168 $ 35,147 $ 3,021 $ 38,116 $ 35,447 $ 2,669 |
Note 2. Spin-Off Transaction (T
Note 2. Spin-Off Transaction (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Balance Sheet [Table Text Block] | The following is a summary of the assets and liabilities distributed to Kimball Electronics on the Distribution Date or shortly thereafter: (Amounts in Millions) Assets: Cash and cash equivalents $ 63 Receivables 133 Inventories 124 Prepaid expenses and other current assets 19 Net property and equipment 98 Goodwill 3 Net other intangible assets 1 Other long-term assets 15 $ 456 Liabilities: Accounts payable $ 125 Accrued expenses 22 Other long-term liabilities 9 $ 156 Net Assets Distributed to Kimball Electronics, Inc. $ 300 |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | Summarized financial results of discontinued operations through the October 31, 2014 spin-off date, were as follows: Fiscal Year Ended June 30 (Amounts in Thousands, Except Per Share Data) 2015 2014 Net Sales $ 275,551 $ 741,530 Income Before Taxes on Income 13,098 38,961 Provision for Income Taxes 3,941 8,919 Income from Discontinued Operations, Net of Tax $ 9,157 $ 30,042 Income from Discontinued Operations per Class B Diluted Share $ 0.23 $ 0.77 |
Note 3. Inventories (Tables)
Note 3. Inventories (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Inventories [Abstract] | |
Schedule of Inventory, Current | Inventory components at June 30 were as follows: (Amounts in Thousands) 2016 2015 Finished products $ 26,494 $ 26,634 Work-in-process 1,840 1,952 Raw materials 25,070 23,201 Total FIFO inventory $ 53,404 $ 51,787 LIFO reserve (12,466 ) (14,153 ) Total inventory $ 40,938 $ 37,634 |
Note 4. Property and Equipment
Note 4. Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Property and Equipment [Abstract] | |
Components of Property and Equipment | Major classes of property and equipment at June 30 consist of the following: (Amounts in Thousands) 2016 2015 Land $ 2,577 $ 2,849 Buildings and improvements 110,536 124,709 Machinery and equipment 154,319 159,648 Construction-in-progress 1,154 7,457 Total $ 268,586 $ 294,663 Less: Accumulated depreciation (181,500 ) (197,500 ) Property and equipment, net $ 87,086 $ 97,163 |
Property, Plant and Equipment | The useful lives used in computing depreciation are based on estimated service lives for classes of property, as follows: Years Buildings and improvements 5 to 40 Machinery and equipment 2 to 20 Leasehold improvements Lesser of Useful Life or Term of Lease |
Note 5. Commitments and Conti42
Note 5. Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingent Liabilities [Abstract] | |
Schedule of Product Warranty Liability | Changes in the product warranty accrual during fiscal years 2016 , 2015 , and 2014 were as follows: (Amounts in Thousands) 2016 2015 2014 Product Warranty Liability at the beginning of the year $ 2,264 $ 3,221 $ 2,384 Additions to warranty accrual (including changes in estimates) 1,165 880 2,883 Settlements made (in cash or in kind) (1,078 ) (927 ) (2,046 ) Distribution to Kimball Electronics, Inc. — (910 ) — Product Warranty Liability at the end of the year $ 2,351 $ 2,264 $ 3,221 |
Note 7. Employee Benefit Plan43
Note 7. Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Employee Benefit Plans [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | June 30 (Amounts in Thousands) 2016 2015 Changes and Components of Benefit Obligation: Benefit obligation at beginning of year $ 2,855 $ 5,350 Service cost 490 645 Interest cost 74 96 Actuarial (gain) loss for the period (576 ) (895 ) Benefits paid (28 ) (168 ) Distribution to Kimball Electronics, Inc. — (2,173 ) Benefit obligation at end of year $ 2,815 $ 2,855 Balance in current liabilities $ 494 $ 501 Balance in noncurrent liabilities 2,321 2,354 Total benefit obligation recognized in the Consolidated Balance Sheets $ 2,815 $ 2,855 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | June 30 (Amounts in Thousands) 2016 2015 Changes and Components in Accumulated Other Comprehensive Income (Loss) (before tax): Accumulated Other Comprehensive Income (Loss) at beginning of year $ (2,011 ) $ (1,567 ) Change in unrecognized prior service cost — (185 ) Net change in unrecognized actuarial (gain) loss (135 ) (603 ) Distribution to Kimball Electronics, Inc. — 344 Accumulated Other Comprehensive Income (Loss) at end of year $ (2,146 ) $ (2,011 ) Balance in unrecognized prior service cost $ — $ — Balance in unrecognized actuarial (gain) loss (2,146 ) (2,011 ) Total Accumulated Other Comprehensive Income (Loss) recognized in Share Owners’ Equity $ (2,146 ) $ (2,011 ) |
Schedule of Net Benefit Costs | (Amounts in Thousands) Year Ended June 30 Components of Net Periodic Benefit Cost (before tax): 2016 2015 2014 Service cost $ 490 $ 645 $ 955 Interest cost 74 96 134 Amortization of prior service cost — 185 286 Amortization of actuarial (gain) loss (441 ) (292 ) 338 Net periodic benefit cost — Total cost $ 123 $ 634 $ 1,713 Less: Discontinued operations — 81 343 Net periodic benefit cost — Continuing operations $ 123 $ 553 $ 1,370 |
Severance Plan Assumptions, Year End [Table Text Block] | Assumptions used to determine fiscal year end benefit obligations are as follows: 2016 2015 Discount Rate 2.2% 2.8% Rate of Compensation Increase 3.0% 3.0% |
Severance Plan Assumptions, Weighted Average | Weighted average assumptions used to determine fiscal year net periodic benefit costs are as follows: 2016 2015 2014 Discount Rate 2.7% 2.6% 2.5% Rate of Compensation Increase 3.0% 3.0% 3.0% |
Note 8. Stock Compensation Pl44
Note 8. Stock Compensation Plans (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Stock Compensation Plans [Abstract] | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest | A summary of performance share activity during fiscal year 2016 is presented below: Number of Shares Weighted Average Grant Date Fair Value Performance Shares outstanding at July 1, 2015 780,658 $10.21 Granted 111,695 $12.12 Vested (352,924 ) $10.21 Forfeited (56,330 ) $10.79 Performance Shares outstanding at June 30, 2016 483,099 $12.12 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Relative Total Shareholder Return Performance Units, Vested and Expected to Vest | A summary of RTSR activity during fiscal year 2016 is presented below: Number of Shares Weighted Average Grant Date Fair Value RTSRs outstanding at July 1, 2015 30,198 $11.48 Granted 36,093 $15.10 Vested — $— Forfeited — $— RTSRs outstanding at June 30, 2016 66,291 $13.45 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of RSU activity during fiscal year 2016 is presented below: Number of Shares Weighted Average Grant Date Fair Value RSUs outstanding at July 1, 2015 143,940 $9.16 Granted 98,204 $12.19 Vested (79,461 ) $9.42 Forfeited (2,706 ) $12.32 RSUs outstanding at June 30, 2016 159,977 $10.83 |
Note 9. Income Taxes (Tables)
Note 9. Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Income Taxes [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | The components of the deferred tax assets and liabilities as of June 30, 2016 and 2015 , were as follows: (Amounts in Thousands) 2016 2015 Deferred Tax Assets: Receivables $ 1,254 $ 1,137 Inventory 384 528 Employee benefits 485 382 Deferred compensation 11,348 12,810 Other current liabilities 504 134 Warranty reserve 915 881 Tax credit carryforwards 2,492 2,472 Restructuring 176 1,017 Net operating loss carryforward 2,630 2,525 Miscellaneous 2,366 2,055 Valuation Allowance (687 ) (687 ) Total asset $ 21,867 $ 23,254 Deferred Tax Liabilities: Property and equipment $ 8,483 $ 7,353 Capitalized software 31 146 Miscellaneous 563 427 Total liability $ 9,077 $ 7,926 Net Deferred Tax Assets $ 12,790 $ 15,328 |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes from continuing operations is composed of the following items: Year Ended June 30 (Amounts in Thousands) 2016 2015 2014 Currently Payable: Federal $ 7,548 $ 4,553 $ 6,108 State 1,184 885 1,118 Total current $ 8,732 $ 5,438 $ 7,226 Deferred Taxes: Federal $ 3,081 $ 616 $ (4,514 ) State 421 482 (1,122 ) Total deferred $ 3,502 $ 1,098 $ (5,636 ) Valuation allowance — — (797 ) Total provision for income taxes from continuing operations $ 12,234 $ 6,536 $ 793 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. income tax rate from continuing operations to Kimball’s effective income tax rate follows: Year Ended June 30 2016 2015 2014 (Amounts in Thousands) Amount % Amount % Amount % Tax provision computed at U.S. federal statutory rate $ 11,686 35.0 % $ 6,188 35.0 % $ 1,474 35.0 % State income taxes, net of federal income tax benefit 1,043 3.1 662 3.7 (45 ) (1.1 ) Valuation allowance — — — — (797 ) (18.9 ) Domestic manufacturing deduction (286 ) (0.9 ) (602 ) (3.4 ) (327 ) (7.8 ) Research credit (346 ) (1.0 ) (218 ) (1.2 ) (115 ) (2.7 ) Spin-off costs — — 784 4.4 422 10.0 Unrecognized tax benefit — — (851 ) (4.8 ) — — Other - net 137 0.4 573 3.3 181 4.3 Total provision for income taxes from continuing operations $ 12,234 36.6 % $ 6,536 37.0 % $ 793 18.8 % |
Summary of Income Tax Contingencies | Changes in the unrecognized tax benefit, excluding accrued interest and penalties, during fiscal years 2016 , 2015 , and 2014 were as follows: (Amounts in Thousands) 2016 2015 2014 Beginning balance - July 1 $ 1,920 $ 2,692 $ 2,752 Tax positions related to prior fiscal years: Additions 301 351 415 Reductions (43 ) — — Tax positions related to current fiscal year: Additions — — — Reductions — — — Settlements — — — Lapses in statute of limitations (101 ) (1,123 ) (475 ) Ending balance - June 30 $ 2,077 $ 1,920 $ 2,692 Portion that, if recognized, would reduce tax expense and effective tax rate $ 1,407 $ 1,307 $ 2,159 |
Accrued Interest and Penalties on Unrecognized Tax Benefits | Amounts accrued for interest and penalties were as follows: As of June 30 (Amounts in Thousands) 2016 2015 2014 Accrued Interest and Penalties: Interest $ 102 $ 104 $ 285 Penalties $ 108 $ 105 $ 95 |
Note 11. Fair Value (Tables)
Note 11. Fair Value (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Fair Value [Abstract] | |
Fair Value Measurements, Recurring, Valuation Techniques [Table Text Block] | The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents 1 Market - Quoted market prices 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 June 30, 2016 and 2015 , the fair values of financial assets and liabilities that are measured at fair value on a recurring basis using the market approach are categorized as follows: (Amounts in Thousands) June 30, 2016 June 30, 2015 Cash equivalents $ 45,880 $ 23,414 Trading Securities: Mutual funds in nonqualified SERP 10,001 10,353 Total assets at fair value $ 55,881 $ 33,767 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | Non-recurring fair value adjustment Level Valuation Technique/Inputs Used Impairment of assets held for sale (real estate and property & equipment) 3 Market - Quoted market prices for similar assets sold, adjusted for features specific to the asset |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | Financial instruments that are not reflected in the Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk Non-marketable equity securities (cost-method investments, which carry shares at cost except in the event of impairment) 3 Cost Method, with Impairment Recognized Using a Market-Based Valuation Technique - See the explanation below the table regarding the method used to periodically estimate the fair value of cost-method investments. Long-term debt (carried at amortized cost) 3 Income - Price estimated using a discounted cash flow analysis based on quoted long-term debt market rates, taking into account Kimball’s non-performance risk |
Note 12. Derivative Instrumen47
Note 12. Derivative Instruments (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments [Abstract] | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The Effect of Derivative Instruments on Other Comprehensive Income (Loss) June 30 (Amounts in Thousands) 2016 2015 2014 Amount of Pre-Tax Gain Recognized in Other Comprehensive Income (Loss) (OCI) on Derivatives (Effective Portion): Foreign exchange contracts $ — $ 2,513 $ 73 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The Effect of Derivative Instruments on Consolidated Statements of Income (Amounts in Thousands) Fiscal Year Ended June 30 Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) 2016 2015 2014 Amount of Pre-Tax Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion): Foreign exchange contracts Income from Discontinued Operations, Net of Tax $ — $ 1,484 $ (1,187 ) 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 $ — $ 740 $ (487 ) Stock warrants Non-operating income — — (25 ) Total $ — $ 740 $ (512 ) Total Derivative Pre-Tax Gain (Loss) Recognized in Income $ — $ 2,224 $ (1,699 ) |
Note 13. Investments (Tables)
Note 13. Investments (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Investments [Abstract] | |
Trading Securities (and Certain Trading Assets) | SERP asset and liability balances were as follows: June 30 (Amounts in Thousands) 2016 2015 SERP investments - current asset $ 768 $ 1,276 SERP investments - other long-term asset 9,233 9,077 Total SERP investments $ 10,001 $ 10,353 SERP obligation - current liability $ 768 $ 1,276 SERP obligation - other long-term liability 9,233 9,077 Total SERP obligation $ 10,001 $ 10,353 |
Note 14. Accrued Expenses (Tabl
Note 14. Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Accrued Expenses [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses consisted of: June 30 (Amounts in Thousands) 2016 2015 Compensation $ 20,190 $ 21,824 Selling 6,492 6,418 Employer retirement contribution 4,102 4,091 Taxes 3,142 2,933 Insurance 3,726 2,770 Restructuring 391 2,504 Rent 2,698 2,153 Other expenses 3,551 2,732 Total accrued expenses $ 44,292 $ 45,425 |
Note 15. Geographic Informati50
Note 15. Geographic Information (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Geographic Area Information [Abstract] | |
Schedule of Revenue from External Customers, by Geographical Areas | The following geographic area data includes net sales from continuing operations based on the location where title transfers. Substantially all long-lived assets of the Company’s continuing operations were located in the United States for each of the three fiscal years ended June 30, 2016 . Long-lived assets include property and equipment and other long-term assets such as software. Year Ended June 30 (Amounts in Thousands) 2016 2015 2014 Net Sales: United States $ 622,096 $ 578,551 $ 530,087 Other Foreign 13,006 22,317 13,730 Total Net Sales $ 635,102 $ 600,868 $ 543,817 |
Note 16. Earnings Per Share (Ta
Note 16. Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share from Continuing Operations, Basic and Diluted | EARNINGS PER SHARE FROM CONTINUING OPERATIONS Year Ended June 30, 2016 Year Ended June 30, 2015 Year Ended June 30, 2014 (Amounts in Thousands, Except for Per Share Data) Class A Class B Total Class A Class B Total Basic Earnings Per Share from Continuing Operations: Dividends Declared $ 8,288 $ 536 $ 7,169 $ 7,705 $ 1,437 $ 6,090 $ 7,527 Undistributed Earnings (Loss) 12,868 287 3,151 3,438 (859 ) (3,249 ) (4,108 ) Income from Continuing Operations $ 21,156 $ 823 $ 10,320 $ 11,143 $ 578 $ 2,841 $ 3,419 Average Basic Shares Outstanding 37,462 3,231 35,414 38,645 8,026 30,378 38,404 Basic Earnings Per Share from Continuing Operations $ 0.56 $ 0.25 $ 0.29 $ 0.07 $ 0.09 Diluted Earnings Per Share from Continuing Operations: Dividends Declared and Assumed Dividends on Dilutive Shares $ 8,374 $ 536 $ 7,234 $ 7,770 $ 1,550 $ 6,091 $ 7,641 Undistributed Earnings (Loss) 12,782 280 3,093 3,373 (936 ) (3,286 ) (4,222 ) Income from Continuing Operations $ 21,156 $ 816 $ 10,327 $ 11,143 $ 614 $ 2,805 $ 3,419 Average Diluted Shares Outstanding 37,852 3,231 35,740 38,971 8,652 30,385 39,037 Diluted Earnings Per Share from Continuing Operations $ 0.56 $ 0.25 $ 0.29 $ 0.07 $ 0.09 Reconciliation of Basic and Diluted EPS from Continuing Operations Calculations: Income from Continuing Operations $ 21,156 $ 823 $ 10,320 $ 11,143 $ 578 $ 2,841 $ 3,419 Assumed Dividends Payable on Dilutive Shares 86 — 65 65 113 1 114 Increase (Reduction) in Undistributed Earnings (Loss) - allocated based on Class A and Class B shares (86 ) (7 ) (58 ) (65 ) (77 ) (37 ) (114 ) Income from Continuing Operations $ 21,156 $ 816 $ 10,327 $ 11,143 $ 614 $ 2,805 $ 3,419 Average Shares Outstanding for Basic EPS Calculation 37,462 3,231 35,414 38,645 8,026 30,378 38,404 Dilutive Effect of Average Outstanding Stock Awards 390 — 326 326 626 7 633 Average Shares Outstanding for Diluted EPS Calculation 37,852 3,231 35,740 38,971 8,652 30,385 39,037 |
Schedule of Earnings Per Share from Discontinued Operations, Basic and Diluted | EARNINGS PER SHARE FROM DISCONTINUED OPERATIONS Year Ended June 30, 2016 Year Ended June 30, 2015 Year Ended June 30, 2014 Class A Class B Class A Class B Basic Earnings Per Share $ 0.00 $ 0.24 $ 0.24 $ 0.78 $ 0.79 Diluted Earnings Per Share $ 0.00 $ 0.24 $ 0.23 $ 0.77 $ 0.77 |
Schedule of Earnings Per Share, Basic and Diluted | EARNINGS PER SHARE (INCLUDING DISCONTINUED OPERATIONS) Year Ended June 30, 2016 Year Ended June 30, 2015 Year Ended June 30, 2014 (Amounts in Thousands, Except for Per Share Data) Class A Class B Total Class A Class B Total Basic Earnings Per Share: Dividends Declared $ 8,288 $ 536 $ 7,169 $ 7,705 $ 1,437 $ 6,090 $ 7,527 Undistributed Earnings 12,868 1,053 11,542 12,595 5,420 20,514 25,934 Net Income $ 21,156 $ 1,589 $ 18,711 $ 20,300 $ 6,857 $ 26,604 $ 33,461 Average Basic Shares Outstanding 37,462 3,231 35,414 38,645 8,026 30,378 38,404 Basic Earnings Per Share $ 0.56 $ 0.49 $ 0.53 $ 0.85 $ 0.88 Diluted Earnings Per Share: Dividends Declared and Assumed Dividends on Dilutive Shares $ 8,374 $ 536 $ 7,234 $ 7,770 $ 1,550 $ 6,091 $ 7,641 Undistributed Earnings 12,782 1,039 11,491 12,530 5,723 20,097 25,820 Net Income $ 21,156 $ 1,575 $ 18,725 $ 20,300 $ 7,273 $ 26,188 $ 33,461 Average Diluted Shares Outstanding 37,852 3,231 35,740 38,971 8,652 30,385 39,037 Diluted Earnings Per Share $ 0.56 $ 0.49 $ 0.52 $ 0.84 $ 0.86 |
Note 17. Accumulated Other Co52
Note 17. Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | During fiscal year 2016 and 2015 , the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: Postemployment Benefits (Amounts in Thousands) Foreign Currency Translation Adjustments Derivative Gain (Loss) Prior Service Costs Net Actuarial Gain (Loss) Accumulated Other Comprehensive Income Balance at June 30, 2014 $ 4,909 $ (3,411 ) $ (120 ) $ 1,062 $ 2,440 Other comprehensive income (loss) before reclassifications (6,070 ) 2,097 — 539 (3,434 ) Reclassification to (earnings) loss — (1,193 ) 112 (175 ) (1,256 ) Distribution to Kimball Electronics, Inc. 1,161 2,507 8 (197 ) 3,479 Net current-period other comprehensive income (loss) (4,909 ) 3,411 120 167 (1,211 ) Balance at June 30, 2015 $ — $ — $ — $ 1,229 $ 1,229 Other comprehensive income (loss) before reclassifications — — — 351 351 Reclassification to (earnings) loss — — — (269 ) (269 ) Net current-period other comprehensive income (loss) — — — 82 82 Balance at June 30, 2016 $ — $ — $ — $ 1,311 $ 1,311 |
Reclassification out of Accumulated Other Comprehensive Income | The following reclassifications were made from Accumulated Other Comprehensive Income to the Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income Fiscal Year Ended Affected Line Item in the Consolidated Statements of Income June 30, (Amounts in Thousands) 2016 2015 Derivative Gain (1) $ — $ 1,193 Income (Loss) from Discontinued Operations, Net of Tax Postemployment Benefits: Amortization of Prior Service Costs (2) $ — $ (111 ) Cost of Sales — (61 ) Selling and Administrative Expenses — 68 Benefit (Provision) for Income Taxes $ — $ (104 ) Income (Loss) from Continuing Operations $ — $ (8 ) Income (Loss) from Discontinued Operations, Net of Tax Amortization of Actuarial Gain (2) $ 283 $ 159 Cost of Sales 158 120 Selling and Administrative Expenses (172 ) (111 ) Benefit (Provision) for Income Taxes $ 269 $ 168 Income (Loss) from Continuing Operations $ — $ 7 Income (Loss) from Discontinued Operations, Net of Tax Total Reclassifications for the Period $ 269 $ 64 Income (Loss) from Continuing Operations — 1,192 Income (Loss) from Discontinued Operations, Net of Tax $ 269 $ 1,256 Net Income (Loss) Amounts in parentheses indicate reductions to income. (1) See Note 12 - Derivative Instruments of Notes to Consolidated Financial Statements for further information on derivative instruments. (2) See Note 7 - Employee Benefit Plans of Notes to Consolidated Financial Statements for further information on postemployment benefit plans. |
Note 18. Restructuring Expens53
Note 18. Restructuring Expense (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Restructuring Expense [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Summary of Restructuring Plan: Accrued June 30, 2015 Fiscal Year Ended June 30, 2016 Total Charges Incurred Since Plan Announcement Total Expected Plan Costs (2) (Amounts in Thousands) Amounts Charged Cash Amounts Charged Non-cash Amounts Utilized/ Cash Paid Accrued June 30, 2016 (1) Capacity Realignment and Post Falls, Idaho Exit Transition and Other Employee Costs $ 2,613 $ 2,048 $ — $ (4,217 ) $ 444 $ 4,705 $ 4,705 Asset Write-downs — — 153 (153 ) — 284 284 Plant Closure and Other Exit Costs — 5,127 — (5,120 ) 7 6,583 6,617 Total $ 2,613 $ 7,175 $ 153 $ (9,490 ) $ 451 $ 11,572 $ 11,606 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 $ 7,175 $ 153 $ (9,490 ) $ 451 $ 12,618 $ 12,652 (1) The accrued restructuring balance at June 30, 2016 includes $0.4 million recorded in current liabilities and $0.1 million recorded in other long-term liabilities. (2) Excludes ongoing building maintenance costs such as property taxes, insurance, and utilities that will be incurred until the facility is sold. These costs will be included in the Restructuring line on the Consolidated Statements of Income as they are incurred. |
Note 20. Credit Quality and A54
Note 20. Credit Quality and Allowance for Credit Losses of Notes Receivable (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Credit Quality and Allowance for Credit Losses of Notes Receivable [Abstract] | |
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent | As of June 30, 2016 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 $ 1,302 $ 489 $ 813 $ 1,347 $ 489 $ 858 Dealer Lending 250 — 250 — — — Other Notes Receivable 333 139 194 439 149 290 Total $ 1,885 $ 628 $ 1,257 $ 1,786 $ 638 $ 1,148 |
Note 22. Quarterly Financial 55
Note 22. Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Quarterly Financial Information (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Information | Three Months Ended (Amounts in Thousands, Except for Per Share Data) September 30 December 31 March 31 June 30 Fiscal Year 2016: Net Sales $ 156,569 $ 163,819 $ 150,038 $ 164,676 Gross Profit 51,082 53,268 45,819 53,635 Restructuring Expense 1,186 2,014 2,761 1,367 Net Income 5,622 6,502 2,757 6,275 Basic Earnings Per Share $ 0.15 $ 0.17 $ 0.07 $ 0.17 Diluted Earnings Per Share $ 0.15 $ 0.17 $ 0.07 $ 0.17 Fiscal Year 2015: Net Sales (1) $ 144,446 $ 151,418 $ 145,943 $ 159,061 Gross Profit (1) 47,183 46,596 44,007 51,079 Restructuring Expense (1) — 3,335 388 1,567 Income (Loss) From Continuing Operations 1,517 (1 ) 4,882 4,745 Net Income 7,996 2,677 4,882 4,745 Basic Earnings (Loss) Per Share From Continuing Operations: Class A $ 0.04 $ (0.02 ) $ 0.12 $ 0.11 Class B $ 0.04 $ — $ 0.13 $ 0.12 Diluted Earnings (Loss) Per Share From Continuing Operations: Class A $ 0.04 $ (0.02 ) $ 0.12 $ 0.11 Class B $ 0.04 $ — $ 0.13 $ 0.12 Basic Earnings Per Share: Class A $ 0.20 $ 0.05 $ 0.12 $ 0.11 Class B $ 0.21 $ 0.07 $ 0.13 $ 0.12 Diluted Earnings Per Share: Class A $ 0.20 $ 0.05 $ 0.12 $ 0.11 Class B $ 0.21 $ 0.07 $ 0.13 $ 0.12 (1) Net sales, gross profit, and restructuring expense are from continuing operations. |
Schedule II Valuation and Qua56
Schedule II Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Schedule II. - Valuation and Qualifying Accounts Description Balance at Beginning of Year Additions (Reductions) to Expense Adjustments to Other Accounts (1) Write-offs and Recoveries Impact of Spin-Off Balance at End of Year (Amounts in Thousands) Year Ended June 30, 2016 Valuation Allowances: Short-Term Receivables $ 1,522 $ 374 $ 310 $ (61 ) $ — $ 2,145 Long-Term Notes Receivable $ 618 $ (11 ) $ (489 ) $ — $ — $ 118 Deferred Tax Asset $ 687 $ — $ — $ — $ — $ 687 Year Ended June 30, 2015 Valuation Allowances: Short-Term Receivables $ 2,345 $ 198 $ (65 ) $ (604 ) $ (352 ) $ 1,522 Long-Term Notes Receivable $ 628 $ (10 ) $ — $ — $ — $ 618 Deferred Tax Asset $ 787 $ — $ — $ (100 ) $ — $ 687 Year Ended June 30, 2014 Valuation Allowances: Short-Term Receivables $ 2,791 $ (20 ) $ (149 ) $ (277 ) $ — $ 2,345 Long-Term Notes Receivable $ — $ 628 $ — $ — $ — $ 628 Deferred Tax Asset $ 2,315 $ — $ — $ (1,528 ) $ — $ 787 (1) A valuation allowance totaling $489 thousand transferred from long-term to short-term during the year ended June 30, 2016. |
Note 1. Summary of Significan57
Note 1. Summary of Significant Accounting Policies - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Other Intangible Assets | ||
Other Intangible Assets, Cost | $ 38,168 | $ 38,116 |
Intangible Assets, Accumulated Amortization | 35,147 | 35,447 |
Other Intangible Assets, Net Value | 3,021 | 2,669 |
Capitalized Software | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 37,796 | 37,744 |
Intangible Assets, Accumulated Amortization | 34,775 | 35,081 |
Other Intangible Assets, Net Value | 3,021 | 2,663 |
Product Rights | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 372 | 372 |
Intangible Assets, Accumulated Amortization | 372 | 366 |
Other Intangible Assets, Net Value | $ 0 | $ 6 |
Note 1. Summary of Significan58
Note 1. Summary of Significant Accounting Policies - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounts Receivable, Customary Payment Terms | 30 days | ||
Accounts Receivable, Days Beyond Which Terms Are Considered Extended Payment Terms | 30 days | ||
LIFO Inventory as a Percentage of Consolidated Inventory | 93.00% | 91.00% | |
Other Intangible Assets, Amortization Expense | $ 786 | $ 898 | $ 992 |
Other Intangible Assets, Future Amortization Expense, Year One | 855 | ||
Other Intangible Assets, Future Amortization Expense, Year Two | 652 | ||
Other Intangible Assets, Future Amortization Expense, Year Three | 522 | ||
Other Intangible Assets, Future Amortization Expense, Year Four | 459 | ||
Other Intangible Assets, Future Amortization Expense, Year Five | 296 | ||
Other Intangible Assets, Future Amortization Expense, after Year Five | 237 | ||
Indefinite-Lived Intangible Assets | 0 | 0 | |
Research and Development Costs | 6,000 | 7,000 | 7,000 |
Advertising Costs | 4,000 | 4,000 | $ 3,700 |
Notes Receivable, Unpaid Balance | 1,885 | 1,786 | |
Deferred Tax Assets | $ 12,790 | $ 15,328 | |
Capitalized Software | Minimum | |||
Finite-Lived Intangible Asset, Useful Life | 2 years | ||
Capitalized Software | Maximum | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
ASU 2015-17 Balance Sheet Classification of Deferred Tax Assets from Prepaid Expenses and Other Current Assets | Deferred Tax Assets | |||
Deferred Tax Assets | $ 12,300 | ||
ASU 2015-17 Balance Sheet Classification of Deferred Tax Assets from Other Long Term Liabilities | Deferred Tax Assets | |||
Deferred Tax Assets | $ 900 |
Note 2. Spin-Off Transaction Te
Note 2. Spin-Off Transaction Textuals (Details) $ in Millions | Oct. 31, 2014USD ($) |
Cash and cash equivalents | $ 63 |
Disposal Group,Including Discontinued Operation, Accumulated Other Comprehensive Income (Loss) | $ (3.5) |
Note 2. Spin-Off Transaction Di
Note 2. Spin-Off Transaction Disposal Group, Balance Sheet (Details) $ in Millions | Oct. 31, 2014USD ($) |
ASSETS | |
Cash and cash equivalents | $ 63 |
Receivables | 133 |
Inventories | 124 |
Prepaid expenses and other current assets | 19 |
Net property and equipment | 98 |
Goodwill | 3 |
Net other intangible assets | 1 |
Other long-term assets | 15 |
Total Assets | 456 |
Liabilities | |
Accounts payable | 125 |
Accrued expenses | 22 |
Other long-term liabilities | 9 |
Total Liabilities | 156 |
Net Assets Distributed to Kimball Electronics Inc | $ 300 |
Note 2. Spin-Off Transaction 61
Note 2. Spin-Off Transaction Disposal Group, Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net Sales | $ 275,551 | $ 741,530 | |
Income Before Taxes on Income | 13,098 | 38,961 | |
Provision for Income Taxes | 3,941 | 8,919 | |
Income from Discontinued Operations, Net of Tax | $ 0 | $ 9,157 | $ 30,042 |
Income from Discontinued Operations per Class B Diluted Share | $ 0.23 | $ 0.77 |
Note 3. Inventories - Inventory
Note 3. Inventories - Inventory Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Percentage of LIFO Inventory | 93.00% | 91.00% | |
Inventory, LIFO Reserve, Effect on Income, Net | $ (1) | $ 0.2 | $ 0.6 |
Note 3. Inventories - Invento63
Note 3. Inventories - Inventory Components (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Finished products | $ 26,494 | $ 26,634 |
Work-in-process | 1,840 | 1,952 |
Raw materials | 25,070 | 23,201 |
Total FIFO inventory | 53,404 | 51,787 |
LIFO reserve | (12,466) | (14,153) |
Total inventory | $ 40,938 | $ 37,634 |
Note 4. Property and Equipmen64
Note 4. Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Property and Equipment | ||
Total Property and Equipment | $ 268,586 | $ 294,663 |
Less: Accumulated depreciation | (181,500) | (197,500) |
Property and equipment, net | 87,086 | 97,163 |
Land | ||
Property and Equipment | ||
Total Property and Equipment | 2,577 | 2,849 |
Building and Building Improvements | ||
Property and Equipment | ||
Total Property and Equipment | 110,536 | 124,709 |
Machinery and Equipment | ||
Property and Equipment | ||
Total Property and Equipment | 154,319 | 159,648 |
Construction in Progress | ||
Property and Equipment | ||
Total Property and Equipment | $ 1,154 | $ 7,457 |
Note 4. Property and Equipmen65
Note 4. Property and Equipment - Asset Lives (Details) | 12 Months Ended |
Jun. 30, 2016 | |
Leasehold improvements | Lesser of Useful Life or Term of Lease |
Building and Building Improvements | Minimum | |
Property, Plant and Equipment, Useful Life | 5 years |
Building and Building Improvements | Maximum | |
Property, Plant and Equipment, Useful Life | 40 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment, Useful Life | 2 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment, Useful Life | 20 years |
Note 4. Property and Equipmen66
Note 4. Property and Equipment - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Depreciation and amortization of property and equipment | $ 14,300 | $ 13,100 | $ 13,500 | ||
Assets held for sale | 9,164 | 0 | |||
Asset Held for Sale - subsequently sold | $ 1,300 | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ (181) | (912) | 1,484 | ||
Property, Plant and Equipment, Other Types | |||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 200 | ||||
Property, Plant and Equipment, Other Types | Fair Value, Measurements, Nonrecurring | |||||
Impairment of Long-Lived Assets to be Disposed of | $ 1,100 | 1,200 | |||
Idle Furniture segment manufacturing facility and land located in Jasper, Indiana | |||||
Gain (Loss) on Disposition of Property Plant Equipment | 1,700 | ||||
FY 2007 Gaylord Restructuring Plan | Held for Sale Facilty and Land Related to the Gaylord, Michigan Exited Operation | Fair Value, Measurements, Nonrecurring | |||||
Assets, Fair Value Adjustment | $ 300 |
Note 5. Commitments and Conti67
Note 5. Commitments and Contingent Liabilities - Leases Textuals (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Leased Assets | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 3,400,000 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 3,000,000 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 2,600,000 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 2,500,000 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 2,400,000 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 6,500,000 | ||
Rental expenses | 6,700,000 | $ 4,900,000 | $ 4,100,000 |
Contingent lease payments | 2,400,000 | 1,000,000 | $ 800,000 |
Performance Guarantee | |||
Operating Leased Assets | |||
Loss Contingency Accrual | 0 | 0 | |
Financial Standby Letter of Credit | |||
Operating Leased Assets | |||
Loss Contingency Accrual | $ 0 | $ 0 |
Note 5. Commitments and Conti68
Note 5. Commitments and Contingent Liabilities - Guarantees Textuals (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Guarantee Obligations | ||
Contingent Liabilities | ||
Loss Contingency Accrual | $ 0 | $ 0 |
Financial Standby Letter of Credit | ||
Contingent Liabilities | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 1,400,000 | 1,000,000 |
Loss Contingency Accrual | 0 | 0 |
Performance Guarantee | ||
Contingent Liabilities | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 1,500,000 | |
Loss Contingency Accrual | $ 0 | $ 0 |
Note 5. Commitments and Conti69
Note 5. Commitments and Contingent Liabilities - Product Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Product Warranty Liability at the beginning of the year | $ 2,264 | $ 3,221 | $ 2,384 |
Additions to warranty accrual (including changes in estimates) | 1,165 | 880 | 2,883 |
Settlements made (in cash or in kind) | (1,078) | (927) | (2,046) |
Distribution To Kimball Electronics - Warranty Liability | 0 | (910) | 0 |
Product Warranty Liability at the end of the year | $ 2,351 | $ 2,264 | $ 3,221 |
Note 5. Commitments and Conti70
Note 5. Commitments and Contingent Liabilities - Other Contingency Textuals (Details) | 12 Months Ended |
Jun. 30, 2016 | |
Government Contracts Concentration Risk | |
Concentration Risk, Percentage | 8.90% |
GSA Contract A | |
Concentration Risk, Percentage | 5.00% |
GSA Contract B | |
Concentration Risk, Percentage | 3.90% |
Note 6. Long-Term Debt and Cr71
Note 6. Long-Term Debt and Credit Facilities - Textuals (Details) | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Credit Facility, Borrowings Outstanding | $ 0 | $ 0 | |
Long-term debt, less current maturities | 212,000 | 241,000 | |
Current maturities of long-term debt | 29,000 | 27,000 | |
Maturities of Long-Term Debt in the Next Twelve Months | 29,000 | ||
Maturities of Long-term Debt in Year Two | 27,000 | ||
Maturities of Long-term Debt in Year Three | 23,000 | ||
Maturities of Long-term Debt in Year Four | 25,000 | ||
Maturities of Long-term Debt in Year Five | 27,000 | ||
Aggregate Maturities of Long-term Debt after Year Five | 110,000 | ||
Credit Facility, Maximum Borrowing Capacity | 30,000,000 | ||
Credit Facility, Maximum Borrowing Capacity Upon Request | 55,000,000 | ||
Credit Facility, Availability to Borrow | 28,600,000 | ||
Line of Credit Facility, Amount Available for Letters of Credit | 10,000,000 | ||
Adjusted Leverage Ratio, Indebtedness Reduction For Excess Cash | $ 15,000,000 | ||
Adjusted Leverage Ratio Covenant | 3 | ||
Fixed Charge Coverage Ratio Covenant, Percent of Depreciation | 50.00% | ||
Fixed Charge Coverage Ratio Covenant | 1.10 | ||
Interest Paid on Borrowings | $ 22,000 | $ 29,000 | $ 29,000 |
Minimum | |||
Interest Rate on Long-Term Debt | 2.50% | ||
Line of Credit Facility, Commitment Fee Basis Points | 20 | ||
Maximum | |||
Interest Rate on Long-Term Debt | 9.25% | ||
Line of Credit Facility, Commitment Fee Basis Points | 25 | ||
Financial Standby Letter of Credit | |||
Letters of Credit, Amount | $ 1,400,000 | ||
Eurocurrency Loans Margin | Minimum | |||
Line of Credit Facility, Interest Rate Basis Points | 125 | ||
Eurocurrency Loans Margin | Maximum | |||
Line of Credit Facility, Interest Rate Basis Points | 175 | ||
London Interbank Offered Rate (LIBOR) | Primary Revolving Credit Facility | |||
Interest Rate Charged Over Index Rate | 1.00% | ||
Federal Funds Rate | |||
Interest Rate Charged Over Index Rate | 0.50% | ||
Alternate Base Rate Loans Spread | Minimum | |||
Line of Credit Facility, Interest Rate Basis Points | 25 | ||
Alternate Base Rate Loans Spread | Maximum | |||
Line of Credit Facility, Interest Rate Basis Points | 75 |
Note 7. Employee Benefit Plan72
Note 7. Employee Benefit Plans - Retirement Plans Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Domestic Plans | |||
Employer's contribution to retirement plans | $ 4.3 | $ 4.3 | $ 4 |
Note 7. Employee Benefit Plan73
Note 7. Employee Benefit Plans - Severance Plans - Components and Changes of Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Changes and Components of Benefit Obligation: | |||
Benefit obligation at beginning of year | $ 2,855 | $ 5,350 | |
Service cost | 490 | 645 | $ 955 |
Interest cost | 74 | 96 | 134 |
Actuarial (gain) loss for the period | (576) | (895) | |
Benefits paid | (28) | (168) | |
Distribution to Kimball Electronics, Inc. | 0 | (2,173) | |
Benefit obligation at end of year | 2,815 | 2,855 | $ 5,350 |
Balance in current liabilities | 494 | 501 | |
Balance in noncurrent liabilities | 2,321 | 2,354 | |
Total benefit obligation recognized in the Consolidated Balance Sheets | $ 2,815 | $ 2,855 |
Note 7. Employee Benefit Plan74
Note 7. Employee Benefit Plans - Severance Plans - Changes and Components in Accumulated Other Comprehensive Income (Loss) (before tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Changes and Components in Accumulated Other Comprehensive Income (Loss) (before tax): | |||
Accumulated Other Comprehensive Income (Loss) at beginning of year | $ (2,011) | $ (1,567) | |
Change in unrecognized prior service cost | 0 | (185) | $ (286) |
Net change in unrecognized actuarial (gain) loss | (135) | (603) | |
Distribution to Kimball Electronics, Inc. | 0 | 344 | |
Accumulated Other Comprehensive Income (Loss) at end of year | (2,146) | (2,011) | $ (1,567) |
Balance in unrecognized prior service cost | 0 | 0 | |
Balance in unrecognized actuarial (gain) loss | (2,146) | (2,011) | |
Total Accumulated Other Comprehensive Income (Loss) recognized in Share Owners’ Equity | $ (2,146) | $ (2,011) |
Note 7. Employee Benefit Plan75
Note 7. Employee Benefit Plans - Severance Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure | |||
Service cost | $ 490 | $ 645 | $ 955 |
Interest cost | 74 | 96 | 134 |
Amortization of prior service costs | 0 | 185 | 286 |
Amortization of actuarial (gain) loss | (441) | (292) | 338 |
Net periodic benefit cost - Total cost | 123 | 634 | 1,713 |
Discontinued Operations | |||
Defined Benefit Plan Disclosure | |||
Net periodic benefit cost - Total cost | 0 | 81 | 343 |
Continuing Operations | |||
Defined Benefit Plan Disclosure | |||
Net periodic benefit cost - Total cost | $ 123 | $ 553 | $ 1,370 |
Note 7. Employee Benefit Plan76
Note 7. Employee Benefit Plans - Severance Plans Textuals (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Defined Benefit Plan Disclosure | |
Defined Benefit Plan, Assets for Plan Benefits | $ 0 |
Estimated actuarial net (gain) loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year | $ (460) |
Note 7. Employee Benefit Plan77
Note 7. Employee Benefit Plans - Severance Plan Assumptions, Fiscal Year End (Details) | Jun. 30, 2016 | Jun. 30, 2015 |
Fiscal Year End Assumptions: | ||
Discount Rate | 2.20% | 2.80% |
Rate of Compensation Increase | 3.00% | 3.00% |
Note 7. Employee Benefit Plan78
Note 7. Employee Benefit Plans - Severance Plan Assumptions, Weighted Average (Details) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Weighted Average Fiscal Year Assumptions: | |||
Discount Rate | 2.70% | 2.60% | 2.50% |
Rate of Compensation Increase | 3.00% | 3.00% | 3.00% |
Note 8. Stock Compensation Pl79
Note 8. Stock Compensation Plans - Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangements | |||
Stock Compensation Plan, Pre-tax Compensation Cost | $ 5.6 | $ 5.6 | $ 5.5 |
Stock Compensation Plan, Income Tax Benefit from Compensation Cost | $ 2.2 | $ 2.2 | $ 2.2 |
Amended and Restated 2003 Stock Option and Incentive Plan | |||
Share-based Compensation Arrangements | |||
Stock Compensation Plan, Shares Reserved | 5,000,000 |
Note 8. Stock Compensation Pl80
Note 8. Stock Compensation Plans - Performance Share Activity (Details) - Performance Shares - $ / shares | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangements | |||
Shares Outstanding, Beginning of Period | 780,658 | ||
Shares Granted | 111,695 | ||
Shares Vested | (352,924) | (649,524) | (512,719) |
Shares Forfeited | (56,330) | ||
Shares Outstanding, End of Period | 483,099 | 780,658 | |
Weighted Average Grant Date Fair Value of Shares Outstanding, Beginning of Period | $ 10.21 | ||
Weighted Average Grant Date Fair Value of Shares Granted | 12.12 | $ 0 | $ 14.93 |
Weighted Average Grant Date Fair Value of Shares Vested | 10.21 | ||
Weighted Average Grant Date Fair Value of Shares Forfeited | 10.79 | ||
Weighted Average Grant Date Fair Value of Shares Outstanding, End of Period | $ 12.12 | $ 10.21 |
Note 8. Stock Compensation Pl81
Note 8. Stock Compensation Plans - Performance Share Textuals (Details) - Performance Shares - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangements | |||
Unrecognized Compensation Cost | $ 3 | ||
Average Vesting Period for Unrecognized Compensation Cost | 1 year | ||
Weighted Average Grant Date Fair Value of Shares Granted | $ 12.12 | $ 0 | $ 14.93 |
Shares Vested | 352,924 | 649,524 | 512,719 |
Weighted Average Grant Date Fair Value of Shares Vested, Total Fair Value | $ 3.6 | $ 7.2 | $ 5.6 |
Minimum | |||
Share-based Compensation Arrangements | |||
Share Based Compensation Arrangement By Share Based Payment Award Contractual Life | 1 year | ||
Maximum | |||
Share-based Compensation Arrangements | |||
Share Based Compensation Arrangement By Share Based Payment Award Contractual Life | 5 years |
Note 8. Stock Compensation Pl82
Note 8. Stock Compensation Plans - Relative Total Shareholder Return Performance Unit Activity (Details) - Relative Total Shareholder Return - $ / shares | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Outstanding, Beginning of Period | 30,198 | ||
Shares Granted | 36,093 | ||
Shares Vested | 0 | 0 | 0 |
Shares Forfeited | 0 | ||
Shares Outstanding, End of Period | 66,291 | 30,198 | |
Weighted Average Grant Date Fair Value of Shares Outstanding, Beginning of Period | $ 11.48 | ||
Weighted Average Grant Date Fair Value of Shares Granted | 15.10 | $ 11.48 | |
Weighted Average Grant Date Fair Value of Shares Vested | 0 | ||
Weighted Average Grant Date Fair Value of Shares Forfeited | 0 | ||
Weighted Average Grant Date Fair Value of Shares Outstanding, End of Period | $ 13.45 | $ 11.48 |
Note 8. Stock Compensation Pl83
Note 8. Stock Compensation Plans - Relative Total Shareholder Return Performance Unit Textuals (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Relative Total Shareholder Return, Earned Percentage, Target | 100.00% | ||
Allocated Share-based Compensation Expense | $ 5.6 | $ 5.6 | $ 5.5 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 2.2 | $ 2.2 | $ 2.2 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Relative Total Shareholder Return, Earned Percentage | 0.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Relative Total Shareholder Return, Earned Percentage | 200.00% | ||
Relative Total Shareholder Return | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized Compensation Cost | $ 0.5 | ||
Average Vesting Period for Unrecognized Compensation Cost | 1 year 7 months | ||
Weighted Average Grant Date Fair Value of Shares Granted | $ 15.10 | $ 11.48 | |
Shares Vested | 0 | 0 | 0 |
Relative Total Shareholder Return | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Contractual Life | 2 years 4 months | ||
Relative Total Shareholder Return | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Contractual Life | 3 years |
Note 8. Stock Compensation Pl84
Note 8. Stock Compensation Plans - Restricted Share Unit Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Outstanding, Beginning of Period | 143,940 | |
Shares Granted | 98,204 | |
Shares Vested | (79,461) | (45,009) |
Shares Forfeited | (2,706) | |
Shares Outstanding, End of Period | 159,977 | 143,940 |
Weighted Average Grant Date Fair Value of Shares Outstanding, Beginning of Period | $ 9.16 | |
Weighted Average Grant Date Fair Value of Shares Granted | 12.19 | $ 9.15 |
Weighted Average Grant Date Fair Value of Shares Vested | 9.42 | |
Weighted Average Grant Date Fair Value of Shares Forfeited | 12.32 | |
Weighted Average Grant Date Fair Value of Shares Outstanding, End of Period | $ 10.83 | $ 9.16 |
Note 8. Stock Compensation Pl85
Note 8. Stock Compensation Plans - Restricted Share Unit Textuals (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized Compensation Cost | $ 0.9 | |
Average Vesting Period for Unrecognized Compensation Cost | 1 year 6 months | |
Weighted Average Grant Date Fair Value of Shares Granted | $ 12.19 | $ 9.15 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 79,461 | 45,009 |
Weighted Average Grant Date Fair Value of Shares Vested, Total Fair Value | $ 1.2 | $ 0.4 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Based Compensation Arrangement By Share Based Payment Award Contractual Life | 3 years |
Note 8. Stock Compensation Pl86
Note 8. Stock Compensation Plans - Unrestricted Share Grants Textuals (Details) - Unrestricted Shares - USD ($) $ / shares in Units, $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Oct. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2014 | |
Share-based Compensation Arrangements | ||||
Shares Granted | 17,335 | 17,529 | 47,471 | 20,277 |
Weighted Average Grant Date Fair Value of Shares Granted | $ 16.01 | $ 8.79 | $ 11.21 | $ 11.47 |
Weighted Average Grant Date Fair Value of Shares Vested, Total Fair Value | $ 278 | $ 154 | $ 532 | $ 233 |
Note 9. Income Taxes - Textuals
Note 9. Income Taxes - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Loss Carryforwards | $ 2,630 | ||
Tax Credit Carryforwards | 2,570 | ||
Valuation Allowance, Operating Loss Carryforwards | 687 | ||
Income Taxes Paid (Refunded), Net | 7,963 | $ 13,306 | $ 13,911 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Income (Expense) | $ (1) | $ 171 | $ (25) |
Note 9. Income Taxes - Componen
Note 9. Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Deferred Tax Assets: | ||
Deferred Tax Assets, Receivables | $ 1,254 | $ 1,137 |
Deferred Tax Assets, Inventory | 384 | 528 |
Deferred Tax Assets, Employee Benefits | 485 | 382 |
Deferred Tax Assets, Deferred Compensation | 11,348 | 12,810 |
Deferred Tax Assets, Other Current Liabilities | 504 | 134 |
Deferred Tax Assets, Warranty Reserves | 915 | 881 |
Deferred Tax Assets, Tax Credit Carryforwards | 2,492 | 2,472 |
Deferred Tax Assets, Restructuring | 176 | 1,017 |
Deferred Tax Assets, Net Operating Loss Carryforwards | 2,630 | 2,525 |
Deferred Tax Assets, Miscellaneous | 2,366 | 2,055 |
Deferred Tax Assets, Valuation Allowance | (687) | (687) |
Deferred Tax Assets | 21,867 | 23,254 |
Deferred Tax Liabilities: | ||
Deferred Tax Liabilities, Property and Equipment | 8,483 | 7,353 |
Deferred Tax Liabilities, Capitalized Software | 31 | 146 |
Deferred Tax Liabilities, Miscellaneous | 563 | 427 |
Deferred Tax Liabilities, Net | 9,077 | 7,926 |
Net Deferred Tax Assets | $ 12,790 | $ 15,328 |
Note 9. Income Taxes - Compon89
Note 9. Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Currently Payable: | |||
Current Federal Income Tax Expense (Benefit) | $ 7,548 | $ 4,553 | $ 6,108 |
Current State Income Tax Expense (Benefit) | 1,184 | 885 | 1,118 |
Current Income Tax Expense (Benefit) | 8,732 | 5,438 | 7,226 |
Deferred Taxes: | |||
Deferred Federal Income Tax Expense (Benefit) | 3,081 | 616 | (4,514) |
Deferred State Income Tax Expense (Benefit) | 421 | 482 | (1,122) |
Deferred Income Tax Expense (Benefit) | 3,502 | 1,098 | (5,636) |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 0 | 0 | (797) |
Total provision for income taxes from continuing operations | $ 12,234 | $ 6,536 | $ 793 |
Note 9. Income Taxes - Reconcil
Note 9. Income Taxes - Reconciliation of Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Reconciliation, Tax Provision (Benefit) Computed at U.S. Federal Statutory Rate | $ 11,686 | $ 6,188 | $ 1,474 |
Effective Income Tax Rate Reconciliation, Tax Computed at U.S. Federal Statutory Rate | 35.00% | 35.00% | 35.00% |
Income Tax Reconciliation, State Income Taxes, Net of Federal Income Tax Benefit | $ 1,043 | $ 662 | $ (45) |
Effective Income Tax Rate Reconciliation, State Income Taxes, Net of Federal Income Tax Benefit | 3.10% | 3.70% | (1.10%) |
Income Tax Reconciliation, Valuation Allowance | $ 0 | $ 0 | $ (797) |
Effective Income Tax Rate Reconciliation, Valuation Allowance | 0.00% | 0.00% | (18.90%) |
Income Tax Reconciliation Tax Credit Domestic Manufacturing Deduction | $ (286) | $ (602) | $ (327) |
Effective Income Tax Rate Reconciliation, Domestic Manufacturing Deduction | (0.90%) | (3.40%) | (7.80%) |
Income Tax Reconciliation, Research Credit | $ (346) | $ (218) | $ (115) |
Effective Income Tax Rate Reconciliation, Research Credit | (1.00%) | (1.20%) | (2.70%) |
Income Tax Reconciliation, Spin-off costs | $ 0 | $ 784 | $ 422 |
Effective Income Tax Rate Reconciliation, Spin-off costs | 0.00% | 4.40% | 10.00% |
Income Tax Reconciliation, Unrecognized Tax Benefit, Amount | $ 0 | $ (851) | $ 0 |
Effective Tax Rate Reconciliation, Unrecognized Tax Benefit, Percent | (0.00%) | (4.80%) | (0.00%) |
Income Tax Reconciliation, Other-Net | $ 137 | $ 573 | $ 181 |
Effective Income Tax Rate Reconciliation, Other-Net | 0.40% | 3.30% | 4.30% |
Total provision for income taxes from continuing operations | $ 12,234 | $ 6,536 | $ 793 |
Effective Income Tax Rate | 36.60% | 37.00% | 18.80% |
Note 9. Income Taxes - Reconc91
Note 9. Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized Tax Benefits, Beginning Balance | $ 1,920 | $ 2,692 | $ 2,752 |
Unrecognized Tax Benefits, Additions Resulting from Prior Period Tax Positions | 301 | 351 | 415 |
Unrecognized Tax Benefits, Reductions Resulting from Prior Period Tax Positions | (43) | 0 | 0 |
Unrecognized Tax Benefits, Additions Resulting from Current Period Tax Positions | 0 | 0 | 0 |
Unrecognized Tax Benefits, Reductions Resulting from Current Period Tax Positions | 0 | 0 | 0 |
Unrecognized Tax Benefits, Reductions Resulting from Settlements with Taxing Authorities | 0 | 0 | 0 |
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | (101) | (1,123) | (475) |
Unrecognized Tax Benefits, Ending Balance | 2,077 | 1,920 | 2,692 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 1,407 | $ 1,307 | $ 2,159 |
Note 9. Income Taxes - Accrued
Note 9. Income Taxes - Accrued Interest and Penalties Related to Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | |||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 102 | $ 104 | $ 285 |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 108 | $ 105 | $ 95 |
Note 10. Common Stock - Textual
Note 10. Common Stock - Textuals (Details) | Jun. 30, 2016 |
Class A Common Stock | |
Minimum Percentage of Class A Shares to Retain Voting Rights and Dividend Preference | 15.00% |
Note 11. Fair Value - Textuals
Note 11. Fair Value - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ (181) | $ (912) | $ 1,484 | |
Fair Value, Transfers Between Levels, Amount | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 500 | |||
Fair Value, Purchases and Sales of Level 3 Assets | $ 0 | 0 | ||
Property, Plant and Equipment, Other Types | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 200 | |||
Property, Plant and Equipment, Other Types | Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Impairment of Long-Lived Assets to be Disposed of | $ 1,100 | 1,200 | ||
FY 2007 Gaylord Restructuring Plan | Held for Sale Facilty and Land Related to the Gaylord, Michigan Exited Operation | Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, Fair Value Adjustment | $ 300 |
Note 11. Fair Value - Recurring
Note 11. Fair Value - Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 1 - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Recurring Fair Value Measurments: | ||
Cash equivalents | $ 45,880 | $ 23,414 |
Trading Securities: Mutual funds in nonqualified SERP | 10,001 | 10,353 |
Total assets at fair value | $ 55,881 | $ 33,767 |
Note 12. Derivative Instrumen96
Note 12. Derivative Instruments - Textuals (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Derivatives, Fair Value | ||
Derivative Asset, Fair Value, Gross Asset | $ 0 | $ 0 |
Note 12. Derivative Instrumen97
Note 12. Derivative Instruments - The Effect of Derivative Instruments on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) | |||
Derivative Instruments, Pre-Tax Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion | $ 0 | $ 2,513 | $ 73 |
Foreign Exchange Contract | |||
Derivative Instruments, Gain (Loss) | |||
Derivative Instruments, Pre-Tax Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion | $ 0 | $ 2,513 | $ 73 |
Note 12. Derivative Instrumen98
Note 12. Derivative Instruments - The Effect of Derivative Instruments on Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) | |||
Derivatives Not Designated as Hedging Instruments, Pre-Tax Gain (Loss) Recognized in Income | $ 0 | $ 740 | $ (512) |
Total Derivative Pre-Tax Gain (Loss) Recognized in Income | 0 | 2,224 | (1,699) |
Income (Loss) from Discontinued Operations | |||
Derivative Instruments, Gain (Loss) | |||
Derivative Gain | 0 | 1,193 | |
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 | 740 | (487) |
Stock Warrant | Non-operating income/expense | |||
Derivative Instruments, Gain (Loss) | |||
Derivatives Not Designated as Hedging Instruments, Pre-Tax Gain (Loss) Recognized in Income | 0 | 0 | (25) |
Cash Flow Hedging | Foreign Exchange Contract | Income (Loss) from Discontinued Operations | |||
Derivative Instruments, Gain (Loss) | |||
Derivative Gain | $ 0 | $ 1,484 | $ (1,187) |
Note 13. Investments - Investme
Note 13. Investments - Investments-Supplemental Employee Retirement Plan Investments Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Trading Securities, Change in Unrealized Holding Gain (Loss) | $ (484) | $ (644) | $ (72) |
Note 13. Investments - Suppleme
Note 13. Investments - Supplemental Employee Retirement Plan Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Schedule of Trading Securities and Other Trading Assets | ||
Total SERP investments | $ 10,001 | $ 10,353 |
Total SERP obligation | 10,001 | 10,353 |
Other Long-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments - other long-term asset | 9,233 | 9,077 |
SERP obligation - other long-term liability | 9,233 | 9,077 |
Short-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments - current asset | 768 | 1,276 |
SERP obligation - current liability | $ 768 | $ 1,276 |
Note 13. Investments - Inves101
Note 13. Investments - Investments-Non-Marketable Equity Securities Textuals (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Schedule of Securities | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | $ 0.5 |
Common Stock | Common Stock | |
Schedule of Securities | |
Non-marketable Securities, carrying value | $ 0.5 |
Note 14. Accrued Expenses - Acc
Note 14. Accrued Expenses - Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Compensation | $ 20,190 | $ 21,824 |
Selling | 6,492 | 6,418 |
Employer retirement contribution | 4,102 | 4,091 |
Taxes | 3,142 | 2,933 |
Insurance | 3,726 | 2,770 |
Restructuring | 391 | 2,504 |
Accrued Rent | 2,698 | 2,153 |
Other expenses | 3,551 | 2,732 |
Total accrued expenses | $ 44,292 | $ 45,425 |
Note 15. Geographic Informat103
Note 15. Geographic Information - Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | $ 164,676 | $ 150,038 | $ 163,819 | $ 156,569 | $ 159,061 | $ 145,943 | $ 151,418 | $ 144,446 | $ 635,102 | $ 600,868 | $ 543,817 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 622,096 | 578,551 | 530,087 | ||||||||
Other Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | $ 13,006 | $ 22,317 | $ 13,730 |
Note 16. Earnings Per Share - E
Note 16. Earnings Per Share - Earnings Per Share from Continuing Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Dividends Declared, Basic | $ 8,288 | $ 7,705 | $ 7,527 | ||||
Undistributed Earnings (Loss) Continuing Operations, Basic | 12,868 | 3,438 | (4,108) | ||||
Income (Loss) from Continuing Operations, Basic | $ 21,156 | $ 11,143 | $ 3,419 | ||||
Average Number of Shares Outstanding, Basic | 37,462 | 38,645 | 38,404 | ||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.56 | ||||||
Dividends Declared and Assumed Dividends on Diluted Shares | $ 8,374 | $ 7,770 | $ 7,641 | ||||
Undistributed Earnings (Loss) from Continuing Operations, Diluted | 12,782 | 3,373 | (4,222) | ||||
Income (Loss) from Continuing Operations, Diluted | $ 21,156 | $ 11,143 | $ 3,419 | ||||
Average Number of Shares Outstanding, Diluted | 37,852 | 38,971 | 39,037 | ||||
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.56 | ||||||
Dilutive Securities, Effect on Basic Earnings Per Share, Assumed Dividends, Stock Compensation | $ 86 | $ 65 | $ 114 | ||||
Dilutive Securities, Effect on Basic Earnings Per Share from Continuing Operations, Undistributed Earnings, Stock Compensation | $ (86) | $ (65) | $ (114) | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 390 | 326 | 633 | ||||
Class A Common Stock | |||||||
Dividends Declared, Basic | $ 536 | $ 1,437 | |||||
Undistributed Earnings (Loss) Continuing Operations, Basic | 287 | (859) | |||||
Income (Loss) from Continuing Operations, Basic | $ 823 | $ 578 | |||||
Average Number of Shares Outstanding, Basic | 3,231 | 8,026 | |||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.11 | $ 0.12 | $ (0.02) | $ 0.04 | $ 0.25 | $ 0.07 | |
Dividends Declared and Assumed Dividends on Diluted Shares | $ 536 | $ 1,550 | |||||
Undistributed Earnings (Loss) from Continuing Operations, Diluted | 280 | (936) | |||||
Income (Loss) from Continuing Operations, Diluted | $ 816 | $ 614 | |||||
Average Number of Shares Outstanding, Diluted | 3,231 | 8,652 | |||||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.11 | 0.12 | (0.02) | 0.04 | $ 0.25 | $ 0.07 | |
Dilutive Securities, Effect on Basic Earnings Per Share, Assumed Dividends, Stock Compensation | $ 0 | $ 113 | |||||
Dilutive Securities, Effect on Basic Earnings Per Share from Continuing Operations, Undistributed Earnings, Stock Compensation | $ (7) | $ (77) | |||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 626 | |||||
Class B Common Stock | |||||||
Dividends Declared, Basic | $ 7,169 | $ 6,090 | |||||
Undistributed Earnings (Loss) Continuing Operations, Basic | 3,151 | (3,249) | |||||
Income (Loss) from Continuing Operations, Basic | $ 10,320 | $ 2,841 | |||||
Average Number of Shares Outstanding, Basic | 35,414 | 30,378 | |||||
Income (Loss) from Continuing Operations, Per Basic Share | 0.12 | 0.13 | 0 | 0.04 | $ 0.29 | $ 0.09 | |
Dividends Declared and Assumed Dividends on Diluted Shares | $ 7,234 | $ 6,091 | |||||
Undistributed Earnings (Loss) from Continuing Operations, Diluted | 3,093 | (3,286) | |||||
Income (Loss) from Continuing Operations, Diluted | $ 10,327 | $ 2,805 | |||||
Average Number of Shares Outstanding, Diluted | 35,740 | 30,385 | |||||
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.12 | $ 0.13 | $ 0 | $ 0.04 | $ 0.29 | $ 0.09 | |
Dilutive Securities, Effect on Basic Earnings Per Share, Assumed Dividends, Stock Compensation | $ 65 | $ 1 | |||||
Dilutive Securities, Effect on Basic Earnings Per Share from Continuing Operations, Undistributed Earnings, Stock Compensation | $ (58) | $ (37) | |||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 326 | 7 |
Note 16. Earnings Per Share 105
Note 16. Earnings Per Share - Earnings Per Share from Discontinued Operations (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings per Share from Discontinued Operations, Basic | $ 0 | ||
Earnings per Share from Discontinued Operations, Diluted | $ 0 | ||
Class A Common Stock | |||
Earnings per Share from Discontinued Operations, Basic | $ 0.24 | $ 0.78 | |
Earnings per Share from Discontinued Operations, Diluted | 0.24 | 0.77 | |
Class B Common Stock | |||
Earnings per Share from Discontinued Operations, Basic | 0.24 | 0.79 | |
Earnings per Share from Discontinued Operations, Diluted | $ 0.23 | $ 0.77 |
Note 16. Earnings Per Share 106
Note 16. Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Dividends Declared, Basic | $ 8,288 | $ 7,705 | $ 7,527 | ||||||||
Undistributed Earnings, Basic | 12,868 | 12,595 | 25,934 | ||||||||
Net Income (Loss), Basic | $ 21,156 | $ 20,300 | $ 33,461 | ||||||||
Average Number of Shares Outstanding, Basic | 37,462 | 38,645 | 38,404 | ||||||||
Basic Earnings Per Share: | $ 0.17 | $ 0.07 | $ 0.17 | $ 0.15 | $ 0.56 | ||||||
Dividends Declared and Assumed Dividends on Diluted Shares | $ 8,374 | $ 7,770 | $ 7,641 | ||||||||
Undistributed Earnings, Diluted | 12,782 | 12,530 | 25,820 | ||||||||
Net Income (Loss), Diluted | $ 21,156 | $ 20,300 | $ 33,461 | ||||||||
Average Number of Shares Outstanding, Diluted | 37,852 | 38,971 | 39,037 | ||||||||
Diluted Earnings Per Share: | $ 0.17 | $ 0.07 | $ 0.17 | $ 0.15 | $ 0.56 | ||||||
Class A Common Stock | |||||||||||
Dividends Declared, Basic | $ 536 | $ 1,437 | |||||||||
Undistributed Earnings, Basic | 1,053 | 5,420 | |||||||||
Net Income (Loss), Basic | $ 1,589 | $ 6,857 | |||||||||
Average Number of Shares Outstanding, Basic | 3,231 | 8,026 | |||||||||
Basic Earnings Per Share: | $ 0.11 | $ 0.12 | $ 0.05 | $ 0.20 | $ 0.49 | $ 0.85 | |||||
Dividends Declared and Assumed Dividends on Diluted Shares | $ 536 | $ 1,550 | |||||||||
Undistributed Earnings, Diluted | 1,039 | 5,723 | |||||||||
Net Income (Loss), Diluted | $ 1,575 | $ 7,273 | |||||||||
Average Number of Shares Outstanding, Diluted | 3,231 | 8,652 | |||||||||
Diluted Earnings Per Share: | 0.11 | 0.12 | 0.05 | 0.20 | $ 0.49 | $ 0.84 | |||||
Class B Common Stock | |||||||||||
Dividends Declared, Basic | $ 7,169 | $ 6,090 | |||||||||
Undistributed Earnings, Basic | 11,542 | 20,514 | |||||||||
Net Income (Loss), Basic | $ 18,711 | $ 26,604 | |||||||||
Average Number of Shares Outstanding, Basic | 35,414 | 30,378 | |||||||||
Basic Earnings Per Share: | 0.12 | 0.13 | 0.07 | 0.21 | $ 0.53 | $ 0.88 | |||||
Dividends Declared and Assumed Dividends on Diluted Shares | $ 7,234 | $ 6,091 | |||||||||
Undistributed Earnings, Diluted | 11,491 | 20,097 | |||||||||
Net Income (Loss), Diluted | $ 18,725 | $ 26,188 | |||||||||
Average Number of Shares Outstanding, Diluted | 35,740 | 30,385 | |||||||||
Diluted Earnings Per Share: | $ 0.12 | $ 0.13 | $ 0.07 | $ 0.21 | $ 0.52 | $ 0.86 |
Note 17. Accumulated Other C107
Note 17. Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income at beginning of period | $ 1,229 | $ 2,440 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 351 | (3,434) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (269) | (1,256) |
Distribution to Kimball Electronics - Accumulated Other Comprehensive Income | 3,479 | |
Current-period other comprehensive income (loss) | 82 | (1,211) |
Accumulated Other Comprehensive Income at end of period | 1,311 | 1,229 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income at beginning of period | 0 | 4,909 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | (6,070) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 |
Distribution to Kimball Electronics - Accumulated Other Comprehensive Income | 1,161 | |
Current-period other comprehensive income (loss) | 0 | (4,909) |
Accumulated Other Comprehensive Income at end of period | 0 | 0 |
Derivative Gain (Loss) | ||
Accumulated Other Comprehensive Income at beginning of period | 0 | (3,411) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 2,097 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | (1,193) |
Distribution to Kimball Electronics - Accumulated Other Comprehensive Income | 2,507 | |
Current-period other comprehensive income (loss) | 0 | 3,411 |
Accumulated Other Comprehensive Income at end of period | 0 | 0 |
Postemployment Benefits, Prior Service Costs | ||
Accumulated Other Comprehensive Income at beginning of period | 0 | (120) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 112 |
Distribution to Kimball Electronics - Accumulated Other Comprehensive Income | 8 | |
Current-period other comprehensive income (loss) | 0 | 120 |
Accumulated Other Comprehensive Income at end of period | 0 | 0 |
Postemployment Benefits, Net Actuarial Gain (Loss) | ||
Accumulated Other Comprehensive Income at beginning of period | 1,229 | 1,062 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 351 | 539 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (269) | (175) |
Distribution to Kimball Electronics - Accumulated Other Comprehensive Income | (197) | |
Current-period other comprehensive income (loss) | 82 | 167 |
Accumulated Other Comprehensive Income at end of period | $ 1,311 | $ 1,229 |
Note 17. Accumulated Other C108
Note 17. Accumulated Other Comprehensive Income - Reclassification from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Amortization of prior service costs | $ 0 | $ (185) | $ (286) |
Amortization of actuarial gain | 441 | 292 | $ (338) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 269 | 1,256 | |
Cost of Sales | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Amortization of prior service costs | 0 | (111) | |
Amortization of actuarial gain | 283 | 159 | |
Selling, General and Administrative Expenses | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Amortization of prior service costs | 0 | (61) | |
Amortization of actuarial gain | 158 | 120 | |
Provision (Benefit) for Income Taxes | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Amortization of prior service costs | 0 | 68 | |
Amortization of actuarial gain | (172) | (111) | |
Net Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Amortization of prior service costs | 0 | (104) | |
Amortization of actuarial gain | 269 | 168 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 269 | 1,256 | |
Income (Loss) from Discontinued Operations | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Derivative Gain | 0 | 1,193 | |
Amortization of prior service costs | 0 | (8) | |
Amortization of actuarial gain | 0 | 7 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 1,192 | |
Income (Loss) from Continuing Operations | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 269 | $ 64 |
Note 18. Restructuring Expen109
Note 18. Restructuring Expense - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Restructuring Expense and Other Related Items | ||||||||||||
Restructuring Expense | $ 1,367 | $ 2,761 | $ 2,014 | $ 1,186 | $ 1,567 | $ 388 | $ 3,335 | $ 0 | $ 7,328 | $ 5,290 | $ 0 | |
Gain (Loss) on Disposition of Property Plant Equipment | (181) | (912) | 1,484 | |||||||||
Restructuring and Related Cost, Expected Cost | [1] | 12,652 | $ 12,652 | |||||||||
Percentage of Restructuring Costs Expected in Cash | 91.00% | |||||||||||
Restructuring Charges, Discontinued Operations | $ 0 | 0 | 400 | |||||||||
Transition and Other Employee Costs | ||||||||||||
Restructuring Expense and Other Related Items | ||||||||||||
Restructuring and Related Cost, Expected Cost | 4,900 | 4,900 | ||||||||||
Plant Closure and Other Exit Costs | ||||||||||||
Restructuring Expense and Other Related Items | ||||||||||||
Restructuring and Related Cost, Expected Cost | 6,600 | 6,600 | ||||||||||
Asset Write-Downs | ||||||||||||
Restructuring Expense and Other Related Items | ||||||||||||
Restructuring and Related Cost, Expected Cost | 1,100 | 1,100 | ||||||||||
FY 2015 Post Falls Restructuring Plan | ||||||||||||
Restructuring Expense and Other Related Items | ||||||||||||
Anticipated Annual Pre-tax Operating Income Savings | 5,000 | |||||||||||
Restructuring and Related Cost, Expected Cost | 11,606 | 11,606 | ||||||||||
FY 2015 Post Falls Restructuring Plan | Transition and Other Employee Costs | ||||||||||||
Restructuring Expense and Other Related Items | ||||||||||||
Restructuring and Related Cost, Expected Cost | 4,705 | 4,705 | ||||||||||
FY 2015 Post Falls Restructuring Plan | Plant Closure and Other Exit Costs | ||||||||||||
Restructuring Expense and Other Related Items | ||||||||||||
Restructuring and Related Cost, Expected Cost | 6,617 | 6,617 | ||||||||||
FY 2015 Post Falls Restructuring Plan | Asset Write-Downs | ||||||||||||
Restructuring Expense and Other Related Items | ||||||||||||
Restructuring and Related Cost, Expected Cost | 284 | 284 | ||||||||||
FY 2015 Plane Fleet Reduction | ||||||||||||
Restructuring Expense and Other Related Items | ||||||||||||
Anticipated Annual Pre-tax Operating Income Savings | 800 | |||||||||||
Restructuring and Related Cost, Expected Cost | 1,046 | 1,046 | ||||||||||
FY 2015 Plane Fleet Reduction | Transition and Other Employee Costs | ||||||||||||
Restructuring Expense and Other Related Items | ||||||||||||
Restructuring and Related Cost, Expected Cost | 224 | 224 | ||||||||||
FY 2015 Plane Fleet Reduction | Asset Write-Downs | ||||||||||||
Restructuring Expense and Other Related Items | ||||||||||||
Restructuring and Related Cost, Expected Cost | $ 822 | 822 | ||||||||||
Property, Plant and Equipment, Other Types | ||||||||||||
Restructuring Expense and Other Related Items | ||||||||||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 200 | |||||||||||
Post Falls Land and Facility | ||||||||||||
Restructuring Expense and Other Related Items | ||||||||||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 2,100 | |||||||||||
Fair Value, Measurements, Nonrecurring | Property, Plant and Equipment, Other Types | ||||||||||||
Restructuring Expense and Other Related Items | ||||||||||||
Impairment of Long-Lived Assets to be Disposed of | $ 1,100 | $ 1,200 | ||||||||||
[1] | (2)Excludes ongoing building maintenance costs such as property taxes, insurance, and utilities that will be incurred until the facility is sold. These costs will be included in the Restructuring line on the Consolidated Statements of Income as they are incurred. |
Note 18. Restructuring Expen110
Note 18. Restructuring Expense - Restructuring Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | |||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | $ 451 | [1] | $ 2,613 | |
Amounts Charged Cash | 7,175 | |||
Amounts Charged Non-cash | 153 | |||
Amounts Utilized/Cash Paid | (9,490) | |||
Restructuring and Related Cost, Cost Incurred to Date | 12,618 | |||
Restructuring and Related Cost, Expected Cost | [2] | 12,652 | ||
FY 2015 Post Falls Restructuring Plan | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | 451 | [1] | 2,613 | |
Amounts Charged Cash | 7,175 | |||
Amounts Charged Non-cash | 153 | |||
Amounts Utilized/Cash Paid | (9,490) | |||
Restructuring and Related Cost, Cost Incurred to Date | 11,572 | |||
Restructuring and Related Cost, Expected Cost | 11,606 | |||
FY 2015 Plane Fleet Reduction | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | 0 | [1] | 0 | |
Amounts Charged Cash | 0 | |||
Amounts Charged Non-cash | 0 | |||
Amounts Utilized/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 | 4,900 | |||
Transition and Other Employee Costs | FY 2015 Post Falls Restructuring Plan | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | 444 | 2,613 | ||
Amounts Charged Cash | 2,048 | |||
Amounts Charged Non-cash | 0 | |||
Amounts Utilized/Cash Paid | (4,217) | |||
Restructuring and Related Cost, Cost Incurred to Date | 4,705 | |||
Restructuring and Related Cost, Expected Cost | 4,705 | |||
Transition and Other Employee Costs | FY 2015 Plane Fleet Reduction | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | 0 | 0 | ||
Amounts Charged Cash | 0 | |||
Amounts Charged Non-cash | 0 | |||
Amounts Utilized/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 | 1,100 | |||
Asset Write-Downs | FY 2015 Post Falls Restructuring Plan | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | 0 | 0 | ||
Amounts Charged Cash | 0 | |||
Amounts Charged Non-cash | 153 | |||
Amounts Utilized/Cash Paid | (153) | |||
Restructuring and Related Cost, Cost Incurred to Date | 284 | |||
Restructuring and Related Cost, Expected Cost | 284 | |||
Asset Write-Downs | FY 2015 Plane Fleet Reduction | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | 0 | 0 | ||
Amounts Charged Cash | 0 | |||
Amounts Charged Non-cash | 0 | |||
Amounts Utilized/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 | 6,600 | |||
Plant Closure and Other Exit Costs | FY 2015 Post Falls Restructuring Plan | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | 7 | $ 0 | ||
Amounts Charged Cash | 5,127 | |||
Amounts Charged Non-cash | 0 | |||
Amounts Utilized/Cash Paid | (5,120) | |||
Restructuring and Related Cost, Cost Incurred to Date | 6,583 | |||
Restructuring and Related Cost, Expected Cost | 6,617 | |||
Other Current Liabilities | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | [1] | 400 | ||
Other Noncurrent Liabilities | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Reserve | $ 100 | |||
[1] | (1)The accrued restructuring balance at June 30, 2016 includes $0.4 million recorded in current liabilities and $0.1 million recorded in other long-term liabilities. | |||
[2] | (2)Excludes ongoing building maintenance costs such as property taxes, insurance, and utilities that will be incurred until the facility is sold. These costs will be included in the Restructuring line on the Consolidated Statements of Income as they are incurred. |
Note 19. Variable Interest E111
Note 19. Variable Interest Entities - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Related Allowance | $ 628 | $ 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 | 900 | |
Variable Interest Entity, Nonconsolidated, Related Allowance | 500 | 500 |
Cost-method Investments | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 500 | |
Note Receivable From Sale of Indiana Facility | Notes Receivable | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Related Allowance | 489 | 489 |
Notes Receivable From Dealer Lending | Notes Receivable | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Related Allowance | 0 | $ 0 |
Receivables | Note Receivable From Sale of Indiana Facility | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | Notes Receivable | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 800 | |
Other Assets | Notes Receivable From Dealer Lending | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | Notes Receivable | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | $ 300 |
Note 20. Credit Quality and 112
Note 20. Credit Quality and Allowance for Credit Losses of Notes Receivable - Textuals (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Notes Receivable | ||
Notes Receivable | ||
Notes Receivable, Past Due | $ 0 | $ 0 |
Note 20. Credit Quality and 113
Note 20. Credit Quality and Allowance for Credit Losses of Notes Receivable - Credit Quality and Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Notes Receivable | ||
Notes Receivable, Unpaid Balance | $ 1,885 | $ 1,786 |
Notes Receivable, Related Allowance | 628 | 638 |
Notes Receivable, Net of Allowance | 1,257 | 1,148 |
Notes Receivable | Note Receivable From Sale of Indiana Facility | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 1,302 | 1,347 |
Notes Receivable, Related Allowance | 489 | 489 |
Notes Receivable, Net of Allowance | 813 | 858 |
Notes Receivable | Notes Receivable From Dealer Lending | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 250 | 0 |
Notes Receivable, Related Allowance | 0 | 0 |
Notes Receivable, Net of Allowance | 250 | 0 |
Notes Receivable | Other Notes Receivable | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 333 | 439 |
Notes Receivable, Related Allowance | 139 | 149 |
Notes Receivable, Net of Allowance | $ 194 | $ 290 |
Note 21 Subsequent Events - Tex
Note 21 Subsequent Events - Textuals (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Aug. 18, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Subsequent Event [Line Items] | ||||
Gain on Disposition of Property Plant Equipment | $ (181) | $ (912) | $ 1,484 | |
Proceeds from sales of assets | 290 | $ 2,524 | $ 4,761 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Proceeds from sales of assets | $ 12,000 | |||
Post Falls Land and Facility | ||||
Subsequent Event [Line Items] | ||||
Gain on Disposition of Property Plant Equipment | $ 2,100 | |||
Post Falls Land and Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Gain on Disposition of Property Plant Equipment | $ 2,100 |
Note 22. Quarterly Financial115
Note 22. Quarterly Financial Information (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Sales | $ 164,676 | $ 150,038 | $ 163,819 | $ 156,569 | $ 159,061 | $ 145,943 | $ 151,418 | $ 144,446 | $ 635,102 | $ 600,868 | $ 543,817 |
Gross Profit | 53,635 | 45,819 | 53,268 | 51,082 | 51,079 | 44,007 | 46,596 | 47,183 | 203,804 | 188,865 | 166,725 |
Restructuring Expense | 1,367 | 2,761 | 2,014 | 1,186 | 1,567 | 388 | 3,335 | 0 | 7,328 | 5,290 | 0 |
Income (Loss) from Continuing Operations | 4,745 | 4,882 | (1) | 1,517 | 21,156 | 11,143 | 3,419 | ||||
Net Income | $ 6,275 | $ 2,757 | $ 6,502 | $ 5,622 | $ 4,745 | $ 4,882 | $ 2,677 | $ 7,996 | $ 21,156 | $ 20,300 | $ 33,461 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.56 | ||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.56 | ||||||||||
Basic Earnings Per Share: | $ 0.17 | $ 0.07 | $ 0.17 | $ 0.15 | 0.56 | ||||||
Diluted Earnings Per Share: | $ 0.17 | $ 0.07 | $ 0.17 | $ 0.15 | $ 0.56 | ||||||
Class A Common Stock | |||||||||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.11 | $ 0.12 | $ (0.02) | $ 0.04 | $ 0.25 | $ 0.07 | |||||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.11 | 0.12 | (0.02) | 0.04 | 0.25 | 0.07 | |||||
Basic Earnings Per Share: | 0.11 | 0.12 | 0.05 | 0.20 | 0.49 | 0.85 | |||||
Diluted Earnings Per Share: | 0.11 | 0.12 | 0.05 | 0.20 | 0.49 | 0.84 | |||||
Class B Common Stock | |||||||||||
Income (Loss) from Continuing Operations, Per Basic Share | 0.12 | 0.13 | 0 | 0.04 | 0.29 | 0.09 | |||||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.12 | 0.13 | 0 | 0.04 | 0.29 | 0.09 | |||||
Basic Earnings Per Share: | 0.12 | 0.13 | 0.07 | 0.21 | 0.53 | 0.88 | |||||
Diluted Earnings Per Share: | $ 0.12 | $ 0.13 | $ 0.07 | $ 0.21 | $ 0.52 | $ 0.86 |
Schedule II Valuation and Qu116
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Movement in Valuation Allowances [Roll Forward] | |||
Valuation Allowances, Adjustments to Other Accounts | $ 489 | ||
Short-Term Receivables | |||
Movement in Valuation Allowances [Roll Forward] | |||
Valuation Allowances, Balance at Beginning of Year | 1,522 | $ 2,345 | $ 2,791 |
Valuation Allowances, Additions to Expense | 374 | 198 | (20) |
Valuation Allowances, Adjustments to Other Accounts | 310 | (65) | (149) |
Valuation Allowances, Write-offs and Recoveries | (61) | (604) | (277) |
Valuation Allowances, Impact of Spin-Off | 0 | (352) | 0 |
Valuation Allowances, Balance at End of Year | 2,145 | 1,522 | 2,345 |
Long-Term Notes Receivable | |||
Movement in Valuation Allowances [Roll Forward] | |||
Valuation Allowances, Balance at Beginning of Year | 618 | 628 | 0 |
Valuation Allowances, Additions to Expense | (11) | (10) | 628 |
Valuation Allowances, Adjustments to Other Accounts | (489) | 0 | 0 |
Valuation Allowances, Write-offs and Recoveries | 0 | 0 | 0 |
Valuation Allowances, Impact of Spin-Off | 0 | 0 | 0 |
Valuation Allowances, Balance at End of Year | 118 | 618 | 628 |
Deferred Tax Asset | |||
Movement in Valuation Allowances [Roll Forward] | |||
Valuation Allowances, Balance at Beginning of Year | 687 | 787 | 2,315 |
Valuation Allowances, Additions to Expense | 0 | 0 | 0 |
Valuation Allowances, Adjustments to Other Accounts | 0 | 0 | 0 |
Valuation Allowances, Write-offs and Recoveries | 0 | (100) | (1,528) |
Valuation Allowances, Impact of Spin-Off | 0 | 0 | 0 |
Valuation Allowances, Balance at End of Year | $ 687 | $ 687 | $ 787 |
Schedule II Valuation and Qu117
Schedule II Valuation and Qualifying Accounts - Textuals (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Valuation Allowances and Reserves, Additions for Adjustments | $ (489) |