Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Document Information | ||
Entity Registrant Name | KIMBALL INTERNATIONAL INC | |
Entity Central Index Key | 0000055772 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 251,420 | |
Class B Common Stock | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 36,470,742 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 49,489 | $ 52,663 |
Short-term investments | 41,821 | 34,607 |
Receivables, net of allowances of $1,352 and $1,317, respectively | 55,722 | 62,276 |
Inventories | 45,140 | 39,509 |
Prepaid expenses and other current assets | 12,578 | 18,523 |
Assets held for sale | 281 | 281 |
Total current assets | 205,031 | 207,859 |
Property and Equipment, net of accumulated depreciation of $183,529 and $180,059, respectively | 89,910 | 84,487 |
Goodwill | 11,153 | 8,824 |
Other Intangible Assets, net of accumulated amortization of $38,002 and $36,757, respectively | 11,957 | 12,607 |
Deferred Tax Assets | 9,494 | 4,916 |
Other Assets | 12,969 | 12,767 |
Total Assets | 340,514 | 331,460 |
Current Liabilities: | ||
Current maturities of long-term debt | 25 | 23 |
Accounts payable | 41,377 | 48,214 |
Customer deposits | 27,624 | 21,253 |
Dividends payable | 3,075 | 2,662 |
Accrued expenses | 45,818 | 50,586 |
Total current liabilities | 117,919 | 122,738 |
Other Liabilities: | ||
Long-term debt, less current maturities | 136 | 161 |
Other | 15,462 | 15,537 |
Total other liabilities | 15,598 | 15,698 |
Common stock-par value $0.05 per share: | ||
Additional paid-in capital | 3,590 | 1,881 |
Retained earnings | 269,254 | 249,945 |
Accumulated other comprehensive income | 1,881 | 1,816 |
Less: Treasury stock, at cost, 6,313,000 shares and 5,901,000 shares, respectively | (69,879) | (62,769) |
Total Shareowners’ Equity | 206,997 | 193,024 |
Total Liabilities and Shareowners’ Equity | 340,514 | 331,460 |
Class A Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | 13 | 13 |
Class B Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | $ 2,138 | $ 2,138 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) Parentheticals - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
ASSETS | ||
Allowance for Doubtful Accounts, Premiums and Other Receivables | $ 1,352 | $ 1,317 |
Property and Equipment Accumulated Depreciation | 183,529 | 180,059 |
Intangible Assets Accumulated Amortization | $ 38,002 | $ 36,757 |
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 | 257,000 | 264,000 |
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 | 42,768,000 | 42,761,000 |
Treasury Stock, Shares | 6,313,000 | 5,901,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Net Sales | $ 177,369 | $ 160,897 | $ 572,500 | $ 514,871 |
Cost of Sales | 120,808 | 110,933 | 385,077 | 343,480 |
Gross Profit | 56,561 | 49,964 | 187,423 | 171,391 |
Selling and Administrative Expenses | 47,508 | 41,454 | 151,178 | 134,919 |
Operating Income | 9,053 | 8,510 | 36,245 | 36,472 |
Other Income (Expense): | ||||
Interest income | 492 | 258 | 1,339 | 726 |
Interest expense | (40) | (55) | (146) | (160) |
Non-operating income (expense), net | 970 | (205) | 71 | 344 |
Other income (expense), net | 1,422 | (2) | 1,264 | 910 |
Income Before Taxes on Income | 10,475 | 8,508 | 37,509 | 37,382 |
Provision for Income Taxes | 2,521 | 2,658 | 9,274 | 13,197 |
Net Income | $ 7,954 | $ 5,850 | $ 28,235 | $ 24,185 |
Earnings Per Share of Common Stock: | ||||
Basic Earnings Per Share | $ 0.22 | $ 0.16 | $ 0.77 | $ 0.65 |
Diluted Earnings Per Share | 0.22 | 0.16 | 0.76 | 0.64 |
Dividends Per Share of Common Stock | ||||
Dividends Per Share of Common Stock | $ 0.08 | $ 0.07 | $ 0.24 | $ 0.21 |
Class A and B Common Stock: | ||||
Average Number of Shares Outstanding - Basic | 36,712 | 37,259 | 36,871 | 37,388 |
Average Number of Shares Outstanding - Diluted | 36,909 | 37,539 | 37,260 | 37,713 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 7,954 | $ 5,850 | $ 28,235 | $ 24,185 |
Other comprehensive income (loss): | ||||
Available-for-sale securities, Pre-tax | 27 | 0 | 42 | (30) |
Available-for-sale securities, Tax | (7) | (4) | (11) | 8 |
Available-for-sale securities, Net of Tax | 20 | (4) | 31 | (22) |
Postemployment severance actuarial change, Pre-tax | 100 | 87 | 338 | 593 |
Postemployment severance actuarial change, Tax | (26) | (30) | (87) | (218) |
Postemployment severance actuarial change, Net of Tax | 74 | 57 | 251 | 375 |
Derivative gain (loss), Pre-tax | (11) | 0 | ||
Derivative gain (loss), Tax | 2 | 0 | ||
Derivative gain (loss), Net of Tax | (9) | 0 | ||
Reclassification to (earnings) loss: | ||||
Available-for-sale securities, Pre-tax | 0 | 1 | 0 | 4 |
Available-for-sale securities, Tax | 0 | 0 | 0 | (1) |
Available-for-sale securities, Net of Tax | 0 | 1 | 0 | 3 |
Amortization of actuarial change, Pre-tax | (100) | (58) | (302) | (191) |
Amortization of actuarial change, Tax | 26 | 19 | 78 | 62 |
Amortization of actuarial change, Net of Tax | (74) | (39) | (224) | (129) |
Derivatives, Pre-tax | 21 | 0 | ||
Derivatives, Tax | (5) | 0 | ||
Derivatives, Net of Tax | 16 | 0 | ||
Other comprehensive income (loss), Pre-tax | 27 | 30 | 88 | 376 |
Other comprehensive income (loss), Tax | (7) | (15) | (23) | (149) |
Other comprehensive income (loss), Net of Tax | 20 | 15 | 65 | 227 |
Total comprehensive income | $ 7,974 | $ 5,865 | $ 28,300 | $ 24,412 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Cash Flows From Operating Activities: | |||
Net income | $ 28,235 | $ 24,185 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 11,077 | 10,232 | |
Amortization | 1,455 | 1,280 | |
Gain on sales of assets | (1,140) | (2,124) | |
Deferred income tax and other deferred charges | (4,571) | 5,464 | |
Stock-based compensation | 4,749 | 3,326 | |
Other, net | (1,319) | 443 | |
Change in operating assets and liabilities: | |||
Receivables | 6,848 | 8,311 | |
Inventories | (2,863) | 480 | |
Prepaid expenses and other current assets | 5,769 | (7,690) | |
Accounts payable | (7,534) | (5,525) | |
Customer deposits | 6,371 | 1,784 | |
Accrued expenses | (4,397) | (13,767) | |
Net cash provided by operating activities | 42,680 | 26,399 | |
Cash Flows From Investing Activities: | |||
Capital expenditures | (15,577) | (15,332) | |
Proceeds from sales of assets | 1,277 | 5,660 | |
Cash paid for acquisitions | (4,850) | (17,800) | |
Purchases of capitalized software | (805) | (510) | |
Purchases of available-for-sale securities | (39,778) | (33,825) | |
Maturities of available-for-sale securities | 32,550 | 30,737 | |
Other, net | (3) | (154) | |
Net cash used for investing activities | (27,186) | (31,224) | |
Cash Flows From Financing Activities: | |||
Net change in capital leases and long-term debt | (23) | (27) | |
Dividends paid to shareowners | (8,498) | (7,480) | |
Repurchases of Common Stock | (9,132) | (8,120) | |
Repurchase of employee shares for tax withholding | (1,035) | (2,426) | |
Net cash used for financing activities | (18,688) | (18,053) | |
Net Decrease in Cash, Cash Equivalents, and Restricted Cash (1) | [1] | (3,194) | (22,878) |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period (1) | [1] | 53,321 | 63,088 |
Cash, Cash Equivalents, and Restricted Cash at End of Period (1) | [1] | 50,127 | 40,210 |
Cash paid during the period for: | |||
Income taxes | 6,758 | 13,635 | |
Interest expense | $ 82 | $ 160 | |
[1] | The restricted cash included in other assets on the balance sheet represents amounts pledged as collateral for a long-term financing arrangement as contractually required by a lender. The restriction will lapse when the related long-term debt is paid off. Beginning in the second quarter of fiscal year 2018, restricted cash also included customer deposits held due to a foreign entity being classified as a restricted entity by a government agency subsequent to our receipt of the deposit. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) Cash Reconciliation - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | |
Cash and cash equivalents | $ 49,489 | $ 52,663 | $ 39,554 | $ 62,882 | |
Restricted cash included in Other Assets | 638 | 658 | 656 | 206 | |
Total Cash, Cash Equivalents, and Restricted Cash at end of period | [1] | $ 50,127 | $ 53,321 | $ 40,210 | $ 63,088 |
[1] | The restricted cash included in other assets on the balance sheet represents amounts pledged as collateral for a long-term financing arrangement as contractually required by a lender. The restriction will lapse when the related long-term debt is paid off. Beginning in the second quarter of fiscal year 2018, restricted cash also included customer deposits held due to a foreign entity being classified as a restricted entity by a government agency subsequent to our receipt of the deposit. |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Shareowners' Equity (unaudited) Statement - USD ($) $ in Thousands | Total | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI Attributable to Parent | Treasury Stock |
Shareowners’ Equity at Jun. 30, 2017 | $ 176,204 | $ 14 | $ 2,137 | $ 2,971 | $ 230,763 | $ 1,115 | $ (60,796) |
Net income | 24,185 | 24,185 | |||||
Other Comprehensive Income (Loss), Net of Tax | 227 | 227 | |||||
Issuance of non-restricted stock (11,000 shares in Q3'19, 10,000 shares in Q3'18, 32,000 shares YTD in FY'19, 29,000 shares YTD in FY'18) | 2 | (492) | 494 | ||||
Conversion of Class A to Class B common stock (0 shares in Q3'19, 13,000 shares in Q3'18, 7,000 shares YTD in FY'19, 14,000 shares YTD in FY'18) | 0 | (1) | 1 | ||||
Compensation expense related to stock incentive plans | 3,326 | 3,326 | |||||
Performance share issuance (0 shares in Q3'19, 0 shares in Q3'18, 81,000 shares YTD in FY19, 226,000 shares YTD in FY'18) | (2,102) | (2,261) | (4,463) | 4,622 | |||
Relative total shareholder return performance units issuance (0 shares in Q3'19, 0 shares in Q3'18, 27,000 shares YTD in FY'19, 38,000 shares YTD in FY'18) | (326) | (1,283) | 957 | ||||
Repurchase of Common Stock (0 shares in Q3'19, 398,000 shares in Q3'18, 567,000 shares YTD in FY'19, 505,000 YTD in FY'18) | (8,420) | (8,420) | |||||
Dividends declared ($0.08 per share in Q3'19, $0.07 per share in Q3'18, $0.24 per share YTD in FY'19, $0.21 per share YTD in FY'18) | (7,894) | (7,894) | |||||
Shareowners’ Equity at Mar. 31, 2018 | 185,202 | 13 | 2,138 | 2,261 | 242,591 | 1,342 | (63,143) |
Shareowners’ Equity at Dec. 31, 2017 | 187,773 | 14 | 2,137 | 1,566 | 239,354 | 1,327 | (56,625) |
Net income | 5,850 | 5,850 | |||||
Other Comprehensive Income (Loss), Net of Tax | 15 | 15 | |||||
Issuance of non-restricted stock (11,000 shares in Q3'19, 10,000 shares in Q3'18, 32,000 shares YTD in FY'19, 29,000 shares YTD in FY'18) | 1 | (120) | 121 | ||||
Conversion of Class A to Class B common stock (0 shares in Q3'19, 13,000 shares in Q3'18, 7,000 shares YTD in FY'19, 14,000 shares YTD in FY'18) | 0 | (1) | 1 | ||||
Compensation expense related to stock incentive plans | 815 | 815 | |||||
Performance share issuance (0 shares in Q3'19, 0 shares in Q3'18, 81,000 shares YTD in FY19, 226,000 shares YTD in FY'18) | (1) | (1) | |||||
Repurchase of Common Stock (0 shares in Q3'19, 398,000 shares in Q3'18, 567,000 shares YTD in FY'19, 505,000 YTD in FY'18) | (6,639) | (6,639) | |||||
Dividends declared ($0.08 per share in Q3'19, $0.07 per share in Q3'18, $0.24 per share YTD in FY'19, $0.21 per share YTD in FY'18) | (2,612) | (2,612) | |||||
Shareowners’ Equity at Mar. 31, 2018 | 185,202 | 13 | 2,138 | 2,261 | 242,591 | 1,342 | (63,143) |
Shareowners’ Equity at Jun. 30, 2018 | 193,024 | 13 | 2,138 | 1,881 | 249,945 | 1,816 | (62,769) |
Net income | 28,235 | 28,235 | |||||
Other Comprehensive Income (Loss), Net of Tax | 65 | 65 | |||||
Issuance of non-restricted stock (11,000 shares in Q3'19, 10,000 shares in Q3'18, 32,000 shares YTD in FY'19, 29,000 shares YTD in FY'18) | (12) | (426) | 414 | ||||
Conversion of Class A to Class B common stock (0 shares in Q3'19, 13,000 shares in Q3'18, 7,000 shares YTD in FY'19, 14,000 shares YTD in FY'18) | 0 | 0 | 0 | ||||
Compensation expense related to stock incentive plans | 4,749 | 4,749 | |||||
Performance share issuance (0 shares in Q3'19, 0 shares in Q3'18, 81,000 shares YTD in FY19, 226,000 shares YTD in FY'18) | (652) | (1,709) | 1,057 | ||||
Restricted share units issuance (0 shares in Q3'19, 0 shares in Q3'18, 15,000 shares YTD in FY'19, 0 shares YTD in FY'18) | (181) | (382) | 201 | ||||
Relative total shareholder return performance units issuance (0 shares in Q3'19, 0 shares in Q3'18, 27,000 shares YTD in FY'19, 38,000 shares YTD in FY'18) | (173) | (523) | 350 | ||||
Repurchase of Common Stock (0 shares in Q3'19, 398,000 shares in Q3'18, 567,000 shares YTD in FY'19, 505,000 YTD in FY'18) | (9,132) | (9,132) | |||||
Dividends declared ($0.08 per share in Q3'19, $0.07 per share in Q3'18, $0.24 per share YTD in FY'19, $0.21 per share YTD in FY'18) | (8,926) | (8,926) | |||||
Shareowners’ Equity at Mar. 31, 2019 | 206,997 | 13 | 2,138 | 3,590 | 269,254 | 1,881 | (69,879) |
Shareowners’ Equity at Dec. 31, 2018 | 200,871 | 13 | 2,138 | 2,607 | 264,267 | 1,861 | (70,015) |
Net income | 7,954 | 7,954 | |||||
Other Comprehensive Income (Loss), Net of Tax | 20 | 20 | |||||
Issuance of non-restricted stock (11,000 shares in Q3'19, 10,000 shares in Q3'18, 32,000 shares YTD in FY'19, 29,000 shares YTD in FY'18) | 0 | (138) | 138 | ||||
Compensation expense related to stock incentive plans | 1,121 | 1,121 | |||||
Repurchase of Common Stock (0 shares in Q3'19, 398,000 shares in Q3'18, 567,000 shares YTD in FY'19, 505,000 YTD in FY'18) | (2) | (2) | |||||
Dividends declared ($0.08 per share in Q3'19, $0.07 per share in Q3'18, $0.24 per share YTD in FY'19, $0.21 per share YTD in FY'18) | (2,967) | (2,967) | |||||
Shareowners’ Equity at Mar. 31, 2019 | $ 206,997 | $ 13 | $ 2,138 | $ 3,590 | $ 269,254 | $ 1,881 | $ (69,879) |
Condensed Consolidated Statem_6
Condensed Consolidated Statement of Shareowners' Equity (unaudited) Shareowners' Equity Parentheticals - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Issuance of non-restricted stock, Shares | 11,000 | 10,000 | 32,000 | 29,000 |
Conversion of Class A to Class B common stock, Shares | 0 | 13,000 | 7,000 | 14,000 |
Performance Share Issuance, Shares | 0 | 0 | 81,000 | 226,000 |
Restricted share units issuance, Shares | 0 | 0 | 15,000 | 0 |
Relative total shareholder return performance units issuance, Shares | 0 | 0 | 27,000 | 38,000 |
Repurchase of Common Stock, Shares | 398,000 | 567,000 | 505,000 | |
Dividends Per Share of Common Stock | $ 0.08 | $ 0.07 | $ 0.24 | $ 0.21 |
Note 1. Basis of Presentation
Note 1. Basis of Presentation | 9 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation [Abstract] | |
Business Description and Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Kimball International, Inc. (the “Company,” “Kimball International,” “we,” “us,” or “our”) have been prepared in accordance with the instructions to Form 10-Q. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted, although we believe that the disclosures are adequate to make the information presented not misleading. Intercompany transactions and balances have been eliminated. Management believes the financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly the financial statements for the interim periods. The results of operations for the interim periods shown in this report are not necessarily indicative of results for any future interim period or for the entire fiscal year. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in our latest annual report on Form 10-K. Prior Period Reclassifications Our prior period financial statements were recast for the full retrospective adoption of guidance on the recognition of revenue from contracts with customers. Certain prior period amounts on the Condensed Consolidated Statements of Cash Flows have also been recast to incorporate restricted cash flows and restricted cash balances, as a result of the retrospective adoption of new accounting guidance. |
Note 2. Recent Accounting Prono
Note 2. Recent Accounting Pronouncements and Supplemental Information | 9 Months Ended |
Mar. 31, 2019 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | |
Recent Accounting Pronouncements and Supplemental Information | Recent Accounting Pronouncements and Supplemental Information Recently Adopted Accounting Pronouncements: In August 2018, the Securities and Exchange Commission adopted disclosure and simplification amendments which update certain disclosure requirements that were redundant, duplicative, overlapping, outdated, or superseded. The amendments require a shareowners’ equity statement provided in interim financial statements or in a note. The adoption resulted in the addition of an interim Condensed Consolidated Statements of Shareowners’ Equity. In June 2018, the Financial Accounting Standards Board (“FASB”) issued guidance to improve the accounting for and to reduce the cost and complexity of share-based payments to nonemployees for goods and services. The guidance is effective for our first quarter of fiscal year 2020 with early adoption permitted, but it may not be adopted earlier than our adoption of the new revenue standard. We early adopted the guidance in our first quarter of fiscal year 2019 in advance of the October 2018 retirement of our former Chief Executive Officer and Chairman of the Board of Directors, who will have stock compensation awards vesting after his retirement. The adoption did not have a material effect on our condensed consolidated financial statements. In May 2017, the FASB issued guidance that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance was adopted during our first quarter of fiscal year 2019 and was applied prospectively to awards modified on or after the adoption date. The adoption of the guidance did not have a material effect on our condensed consolidated financial statements. In March 2017, the FASB issued guidance that requires employers that present a measure of operating income in their statement of income to include only the service cost component of net periodic benefit cost in operating expenses, which will impact the presentation of our postemployment benefit plan. Employers are required to present all other components of Net periodic benefit cost separate from the service costs and disclose the line item in which the components of Net periodic benefit cost other than the service cost are included. Due to the immaterial amounts in prior periods we did not apply the rule retrospectively. The guidance was adopted during our first quarter of fiscal year 2019 and did not have a material effect on our condensed consolidated financial statements. In February 2017, the FASB issued guidance that clarifies the scope of guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. This new guidance is meant to clarify the scope of the original guidance that was issued in connection with the guidance relating to the recognition of revenue from contracts with customers, as defined below, which addresses recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. The guidance was adopted during our first quarter of fiscal year 2019 concurrently with the adoption of the guidance on recognition of revenue from contracts with customers. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. In November 2016, the FASB issued guidance which requires an entity to include in their cash and cash equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. The guidance was adopted during our first quarter of fiscal year 2019 and was applied retrospectively to each prior reporting period. The guidance resulted in certain prior period amounts being reclassified to conform with the current period presentation, including the addition of restricted cash to cash and cash equivalents on the Condensed Consolidated Statements of Cash Flows. 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 was adopted during our first quarter of fiscal year 2019 and did not have a material effect on our condensed 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 made the guidance effective for our first quarter of fiscal year 2019 financial statements using either of two acceptable adoption methods: (i) full 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 clarified assessing whether an entity is a principal or an agent in a revenue transaction, and impacted whether an entity reports revenue on a gross or net basis; in April 2016, the FASB issued additional guidance that addressed identifying performance obligations and implementing licensing guidance; and in May 2016, the FASB issued additional guidance that clarified collectability, noncash consideration, and other transition issues. The amendments had the same effective date and transition requirements as the new revenue standard. We adopted the standard at the beginning of fiscal year 2019 using the full retrospective approach which required that we recast prior year comparative periods to provide comparable financial reporting for all reported fiscal years. All changes required by the new standard, including accounting policies, controls, and disclosures, have been identified and implemented as of the beginning of fiscal 2019. We applied the transition practical expedient related to remaining performance obligations for reporting periods presented before the date of initial application. See Note 4 - Revenue in the Notes to Condensed Consolidated Financial Statements for more information on revenue recognition. Recently Issued Accounting Pronouncements Not Yet Adopted: In August 2018, the FASB issued guidance on a customer’s accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor. Under the new guidance, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. The guidance is effective for our first quarter of fiscal year 2021 with early adoption permitted. Entities can choose to adopt the guidance prospectively to eligible costs incurred on or after the date this guidance is first applied or retrospectively. We have not yet determined the effect of this guidance on our condensed consolidated financial statements. In August 2018, the FASB issued guidance to add, remove, and clarify disclosure requirements related to defined pension benefit and other postretirement plans. The guidance is effective for our first quarter of fiscal year 2021 with early adoption permitted and should be applied retrospectively. We have not yet determined the effect of this guidance on our condensed consolidated financial statements. In August 2018, the FASB issued guidance which changes the fair value measurement disclosure requirements. The guidance modifies and removes certain disclosures related to the fair value hierarchy, and adds new disclosure requirements such as disclosing the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance is effective for our first quarter of fiscal year 2021 with early adoption permitted and should be applied retrospectively except for certain disclosures. We have not yet determined the effect of this guidance on our condensed consolidated financial statements. In March 2017, the FASB issued guidance that will shorten the amortization period for certain callable debt securities held at a premium to the earliest call date. This guidance does not require an accounting change for securities held at a discount. This guidance is to be applied on a modified retrospective basis, with a cumulative-effect adjustment recorded directly to retained earnings as of the beginning of the period of adoption. The guidance is effective for our first quarter of fiscal year 2020 with early adoption permitted. We have not yet determined the effect of this guidance on our condensed consolidated financial statements. 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 condensed 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. In January 2018, the FASB issued additional guidance for land easements which permits entities to forgo the evaluation of existing land easement arrangements to determine if they contain a lease. New land easement arrangements, or modifications to existing arrangements, after the adoption of the lease standard will be evaluated to determine if they meet the definition of a lease. In July 2018, the FASB amended the new standard to clarify certain aspects of the guidance, and they also issued another new standard in July 2018 that allows the option to apply the transition provisions at the adoption date instead of at the earliest comparative period in the condensed consolidated financial statements. In March 2019, the FASB issued clarifying guidance regarding interim transition disclosures. The lease guidance is effective for our first quarter of fiscal year 2020 with early adoption permitted. We have assessed our portfolio of leases and compiled a central repository of active leases. We are also evaluating key policy elections under the standard which we will use to develop an internal policy to address the new standard requirements. While we continue to assess the impact on our accounting policies, internal control processes, and related disclosures required under the new guidance, we will be required to record a right-of-use asset and a lease liability for all leases with a lease term of greater than twelve months. We do not expect this standard to materially affect our consolidated net income. These conclusions could change as we continue to evaluate the new standard or if our lease portfolio changes. We anticipate electing certain of the available practical expedients, including the transition option, upon adoption on July 1, 2019. Goodwill and Other Intangible Assets: Goodwill represents the difference between the purchase price and the related underlying tangible and intangible net asset fair values resulting from business acquisitions. Goodwill is assigned to and the fair value is tested at the reporting unit level. Annually, or if conditions indicate an earlier review is necessary, we may assess qualitative factors to determine if it is more likely than not that the fair value is less than its carrying amount. We also have the option to bypass the qualitative assessment and proceed directly to performing the quantitative goodwill impairment test which compares the carrying value of the reporting unit to the reporting unit’s fair value to identify impairment. Under the quantitative assessment, if the fair value of the reporting unit is less than the carrying value, goodwill is written down to its fair value. The fair value is established primarily using a discounted cash flow analysis and secondarily a market approach utilizing current industry information. The calculation of the fair value of the reporting unit considers current market conditions existing at the assessment date. During the quarter and year-to-date period ended March 31, 2019 , no goodwill impairment was recognized. During fiscal year 2019, we recorded $2.1 million in goodwill from the acquisition of David Edward. During fiscal year 2018, we recorded $8.8 million and $10.7 million , respectively, in goodwill and other intangible assets from the acquisition of D’style, Inc. (“D’style”). We recorded an additional $0.2 million of goodwill during fiscal year 2019 as a result of a working capital adjustment related to the acquisition of D’style. See Note 3 - Acquisition in the Notes to Condensed Consolidated Financial Statements for more information on this acquisition. Other Intangible Assets reported on the Condensed Consolidated Balance Sheets consist of capitalized software, product rights, customer relationships, trade names, and non-compete agreements. 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 intangible assets subject to amortization is as follows: March 31, 2019 June 30, 2018 (Amounts in Thousands) Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Capitalized Software $ 39,239 $ 36,590 $ 2,649 $ 38,482 $ 35,922 $ 2,560 Product Rights — — — 162 162 — Customer Relationships 7,050 878 6,172 7,050 422 6,628 Trade Names 3,570 506 3,064 3,570 238 3,332 Non-Compete Agreements 100 28 72 100 13 87 Other Intangible Assets $ 49,959 $ 38,002 $ 11,957 $ 49,364 $ 36,757 $ 12,607 Amortization expense related to intangible assets was, in thousands, $496 and $1,455 during the quarter and year-to-date period ended March 31, 2019 , and was, in thousands, $534 and $1,280 during the quarter and year-to-date period ended March 31, 2018 . Amortization expense in future periods is expected to be, in thousands, $512 for the remainder of fiscal year 2019, and $2,052 , $1,668 , $1,300 , and $1,056 in the four years ending June 30, 2023, and $5,369 thereafter. The estimated useful life of capitalized software ranges from 3 to 10 years . The amortization period for customer relationship intangible assets is 20 years . The estimated useful life of trade names is 10 years . The estimated useful life of non-compete agreements is 5 years . Capitalized 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 re-engineering costs are expensed in the period in which they are incurred. Trade names and non-compete agreements are amortized on a straight-line basis over their estimated useful lives. Capitalized customer relationships are amortized based on estimated attrition rates of customers. We have no intangible assets with indefinite useful lives which are not subject to amortization. Notes Receivable and Trade Accounts Receivable: Notes receivable and trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. We determine on a case-by-case basis the cessation of accruing interest, the resumption of accruing interest, the method of recording payments received on nonaccrual receivables, and the delinquency status for our limited number of notes receivable. Our policy for estimating the allowance for credit losses on trade accounts receivable and notes receivable includes analysis of such items as aging, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to determine the final allowance for credit losses on the trade accounts receivable and notes receivable. Trade accounts receivable and notes receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Our limited amount of notes receivable allows management to monitor the risks, credit quality indicators, collectability, and probability of impairment on an individual basis. Adjustments to the allowance for credit losses are recorded in selling and administrative expenses. Customary terms require payment within 30 days , with terms beyond 30 days being considered extended. Non-operating Income (Expense), net: The non-operating income (expense), net line item includes the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, amortization of actuarial income, foreign currency rate movements, investment gain or loss, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain or loss on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. Components of the Non-operating income (expense), net line, were: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands) 2019 2018 2019 2018 Gain (Loss) on SERP Investments $ 1,032 $ (8 ) $ 306 $ 756 Other (62 ) (197 ) (235 ) (412 ) Non-operating income (expense), net $ 970 $ (205 ) $ 71 $ 344 |
Note 3. Acquisition (Notes)
Note 3. Acquisition (Notes) | 9 Months Ended |
Mar. 31, 2019 | |
Acquisition [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | Acquisition David Edward On October 26, 2018, we acquired substantially all the assets and assumed certain specified limited liabilities of David Edward headquartered in Baltimore, Maryland. David Edward is a premier designer and manufacturer of contract furniture, sold in the healthcare, corporate, education, and premium hospitality markets. David Edward sells primarily in the North American and Middle Eastern markets. David Edward’s products are generally specified by architects and designers, represented through a network of independent representatives, and sold through authorized furniture dealerships. The David Edward product portfolio consists of classic and contemporary designs, focused primarily in the seating, tables, and ancillary furniture categories. In conjunction with the asset acquisition, we leased the two existing David Edward production facilities in Baltimore, Maryland and Red Lion, Pennsylvania. The acquisition purchase price totaled $4.9 million . The purchase price is subject to certain post-closing working capital adjustments. A summary of the preliminary purchase price allocation is as follows: Purchase Price Allocation (Amounts in Thousands) Assets: Receivables $ 330 Inventories 2,768 Prepaid expenses and other current assets 284 Net property and equipment 934 Goodwill 2,103 $ 6,419 Liabilities: Accounts payable $ 1,447 Accrued expenses 122 $ 1,569 $ 4,850 The operating results of this acquisition are included in our condensed consolidated financial statements beginning on October 26, 2018. For the quarter ended March 31, 2019 , net sales and net loss related to David Edward were $3.4 million and $0.6 million , respectively. For the year-to-date period ended March 31, 2019 , net sales and net loss related to David Edward were $6.0 million and $1.0 million , respectively. Direct costs of the acquisition during the year-to-date period ended March 31, 2019 , of approximately $0.5 million , were expensed as incurred and were included on the Selling and Administrative Expenses line of our Condensed Consolidated Statements of Income. There were no acquisition costs during the quarter ended March 31, 2019 . Goodwill is primarily attributable to the anticipated revenue and supply chain synergies expected from the operations of the combined company. For tax purposes, goodwill is tax deductible over 15 years . See Note 2 - Recent Accounting Pronouncements and Supplemental Information in the Notes to Condensed Consolidated Financial Statements for more information on goodwill. The following summarizes our goodwill activity: Goodwill related to David Edward Acquisition (Amounts in Thousands) Goodwill - June 30, 2018 $ — Goodwill - at acquisition date 1,960 Adjustments to purchase price allocation 143 Goodwill - March 31, 2019 $ 2,103 The purchase price allocation is provisional pending final valuations and purchase accounting adjustments, which were not final as of March 31, 2019. We utilized management estimates to assist in the valuation process. D’style On November 6, 2017, we acquired certain assets of D’style and all of the capital stock of Diseños de Estilo S.A. de C.V. headquartered in Tijuana, Mexico, a member of the D’style group which manufactures exclusively for D’style, strengthening our North American manufacturing footprint. The purchase price allocation is final as of March 31, 2019. During the quarter ended March 31, 2019, the fair value of the contingent earn-out liability was adjusted to $0.2 million relating to an adjustment of the contingent earn-out liability that is based upon fiscal year 2019 D’style, Inc. operating income compared to a predetermined target. |
Note 4. Revenue (Notes)
Note 4. Revenue (Notes) | 9 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue At the beginning of fiscal year 2019, we adopted new accounting guidance on the recognition of revenue from contracts with customers using the full retrospective approach and adjusted fiscal year 2018 to provide comparable financial reporting for all reported fiscal years. The primary impact of the new revenue standard was a reclassification of certain items on the statement of income. For contracts involving products that are sold directly to end customers, fees paid to dealer agents for facilitating the sale and performing certain services are recognized as either cost of sales or selling expense rather than being netted against revenue. In addition, any commissions or fees paid to third-party purchasing organizations are recognized as a selling expense rather than being netted against revenue. The result of these changes was increases in net sales, cost of sales, and selling expenses. On a net basis these changes had no impact to operating income dollars but did reduce operating income as a percent of net sales. The new standard also required several less significant changes including classifying the reserve for returns and allowance as a liability rather than a contra-receivable, recognizing a recovery asset for potential product returns, and capitalizing costs to obtain sales contracts. There was no cumulative effect of adopting the standard at the date of initial application in retained earnings. The following tables present the effects of the adoption of the new standard on prior period financial statements: Impact to Condensed Consolidated Statements of Income Three Months Ended March 31, 2018 (Amounts in Thousands) As Originally Reported Adoption of New Revenue Standard As Adjusted Net Sales $ 157,897 $ 3,000 $ 160,897 Cost of Sales 110,142 791 110,933 Gross Profit 47,755 2,209 49,964 Selling and Administrative Expenses 39,245 2,209 41,454 Operating Income 8,510 — 8,510 Operating Income as of Percent of Net Sales 5.4 % 5.3 % Nine Months Ended March 31, 2018 (Amounts in Thousands) As Originally Reported Adoption of New Revenue Standard As Adjusted Net Sales $ 501,088 $ 13,783 $ 514,871 Cost of Sales 339,808 3,672 343,480 Gross Profit 161,280 10,111 171,391 Selling and Administrative Expenses 124,808 10,111 134,919 Operating Income 36,472 — 36,472 Operating Income as of Percent of Net Sales 7.3 % 7.1 % Impact to Condensed Consolidated Balance Sheet As of June 30, 2018 (Amounts in Thousands) As Originally Reported Adoption of New Revenue Standard As Adjusted Receivables, net of allowances $ 60,984 $ 1,292 $ 62,276 Accrued Expenses 49,294 1,292 50,586 Performance Obligations Revenue is measured as the amount of consideration we expect to receive in exchange for transferring distinct goods or providing services to customers. Our revenue consists substantially of product sales, and is reported net of sales discounts, rebates, incentives, returns, and other allowances offered to customers. We recognize revenue when performance obligations under the terms of contracts with our customers are satisfied, which occurs when control passes to a customer to enable them to direct the use of and obtain benefit from a product. This typically occurs when a customer obtains legal title, obtains the risks and rewards of ownership, has received the goods according to the contractual shipping terms either at the shipping point or destination, and is obligated to pay for the product. Customary terms require payment within 30 days , and for certain customers, deposits may be required in advance of shipment. We sell products both to independent dealers and directly to end customers. Sales to independent dealers typically include products only, as the independent dealer provides additional value-added services to end customers. Direct sales to end customers include products and may include related services such as installation and design services. These services are distinct from the delivered products within the context of the contract, and therefore revenue is recognized for products, installation, and design on a discrete basis. The performance of services may be outsourced to independent dealers or other third parties, but we typically retain the primary responsibility for performance of the services when selling directly to end customers. For services, revenue is recognized when the service is performed and we have an enforceable right to payment. Service revenue does not represent a significant portion of our total sales. We provide an assurance-type warranty that guarantees our product complies with agreed-upon specifications. This warranty is not sold separately and does not convey any additional services to the customer; therefore, our warranty is not considered a separate performance obligation. We estimate the costs that may be incurred under warranties and record a liability at the time product revenue is recognized. See Note 8 - Commitments and Contingent Liabilities in the Notes to Condensed Consolidated Financial Statements for additional information on warranty obligations. Disaggregation of Revenue The following table provides information about revenue by vertical market: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Millions) 2019 2018 2019 2018 Commercial $ 50.9 $ 50.2 $ 171.1 $ 151.8 Education 13.5 12.7 66.2 61.8 Finance 16.9 17.8 53.2 48.9 Government 19.1 17.6 55.0 68.9 Healthcare 28.7 19.5 81.6 63.7 Hospitality 48.3 43.1 145.4 119.8 Total Net Sales $ 177.4 $ 160.9 $ 572.5 $ 514.9 We report revenue under a single aggregated reportable segment consisting of three operating segments which have similar products and services in nature, utilize similar production and distribution processes, and share similar long-term economic characteristics. Contract Balances Receivables in the Condensed Consolidated Balance Sheets represent the amount of consideration to which we are entitled in exchange for the goods or services sold to our customers, net of allowances for doubtful accounts. Receivables are recorded when the right to consideration from the customer becomes unconditional, which is generally upon billing or upon satisfaction of a performance obligation, whichever is earlier. During the three and nine months ended March 31, 2019 , impairment losses on doubtful accounts receivable were $0.0 million and $0.4 million , respectively. During both the three and nine months ended March 31, 2018 , impairment losses (income) on doubtful accounts receivable were $(0.1) million . We also receive deposits from certain customers before revenue is recognized, resulting in the recognition of a contract liability reported as Customer Deposits in the Condensed Consolidated Balance Sheets. Changes in the customer deposits during the nine months ended March 31, 2019 are as follows: (Amounts in Millions) Customer Deposits Balance as of June 30, 2018 $ 21.3 Increases due to deposits received, net of other adjustments 92.0 Revenue recognized (85.7 ) Balance as of March 31, 2019 $ 27.6 Customer deposits are typically utilized within a year of the receipt of the deposit. The amount of revenue recognized during the three and nine months ended March 31, 2019 that was included in the June 30, 2018 customer deposit balance was $0.0 million and $20.9 million , respectively. The amount of revenue recognized during the three and nine months ended March 31, 2018 that was included in the June 30, 2017 customer deposit balance was $1.0 million and $20.2 million , respectively. Additionally, funds paid to certain independent dealers in exchange for their multi-year commitment to market and sell our product represent costs of obtaining contracts. These incremental costs of obtaining contracts are capitalized to the extent we expect to recover them in the Condensed Consolidated Balance Sheets as of March 31, 2019 and June 30, 2018 , with $0.2 million and $0.3 million , respectively, reported in Prepaid Expenses and Other Current Assets and $0.2 million and $0.3 million , respectively, reported in Other Assets. The capitalized costs are amortized over the term of the contract. Amortization expense recognized in Selling and Administrative Expenses was $0.1 million and $0.2 million for the three and nine months ended March 31, 2019 , and $0.0 million and $0.2 million for the three and nine months ended March 31, 2018 . Significant Judgments We use significant judgment in estimating the reduction in net sales driven by customer rebate and incentive programs. Judgments primarily include an estimate of the most likely sales levels to be achieved and the corresponding rebate and incentive amounts expected to be earned by dealers and salespersons. In the three and nine months ended March 31, 2019 and 2018 , we had an immaterial amount of adjustments to estimates for cumulative growth rebates and incentives that related to the preceding fiscal years. We also use judgment in estimating a reserve for returns and allowances recorded at the time of the sale, resulting in a reduction of revenue, based on estimated product returns and price concessions. Accounting Policies and Practical Expedients Elected For shipping and handling activities, we are applying an accounting policy election which allows an entity to account for shipping and handling activities as fulfillment activities rather than a promised good or service when the activities are performed, even if those activities are performed after the control of the good has been transferred to the customer. Therefore, we expense shipping and handling costs at the time revenue is recognized. We classify shipping and handling expenses in Cost of Sales in the Condensed Consolidated Statements of Income. We are also applying an accounting policy election which allows an entity to exclude from revenue any amounts collected from customers on behalf of third parties, such as sales taxes and other similar taxes we collect concurrent with revenue-producing activities. Therefore, we present revenue net of sales taxes and similar revenue-based taxes. For incremental costs of obtaining a contract, we elected a practical expedient which permits an entity to recognize incremental costs to obtain a contract as an expense when incurred if the amortization period is less than one year. This election had an immaterial effect on our condensed consolidated financial statements. For significant financing components, we elected a practical expedient which allows an entity to recognize the promised amount of consideration without adjusting for the time value of money if the contract has a duration of one year or less, or if the reason the contract extended beyond one year is because the timing of delivery of the product is at the customer’s discretion. As our contracts typically are less than one year in length and do not have significant financing components, we have not presented revenue on a present value basis. |
Note 5. Income Taxes (Notes)
Note 5. Income Taxes (Notes) | 9 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into law. The Tax Act reduced federal corporate income tax rates effective January 1, 2018 and changed numerous other provisions. Because Kimball International has a June 30 fiscal year-end, the lower corporate federal income tax rate was phased in, resulting in a blended U.S. federal statutory tax rate of 28.1% for our fiscal year ended June 30, 2018, and 21% for fiscal year 2019. Prior to the effective date of the Tax Act, the U.S. federal statutory tax rate was 35% . In determining the quarterly provision for income taxes, we use an estimated annual effective tax rate which is based on expected annual income, statutory tax rates, and available tax planning opportunities in the various jurisdictions in which we operate. Unusual or infrequently occurring items are separately recognized in the quarter in which they occur. Our effective tax rate was 24.1% and 24.7% , respectively, for the three and nine and months ended March 31, 2019 , which was less than the combined federal and state statutory tax rate in part due to the R&D tax credit. Our effective tax rate was 31.2% and 35.3% , respectively, for the three and nine months ended March 31, 2018 . |
Note 6. Inventories
Note 6. Inventories | 9 Months Ended |
Mar. 31, 2019 | |
Inventories [Abstract] | |
Inventory Disclosure | Inventories Inventory components were as follows: (Amounts in Thousands) March 31, 2019 June 30, Finished products $ 24,776 $ 23,756 Work-in-process 2,764 1,378 Raw materials 33,910 29,158 Total FIFO inventory 61,450 54,292 LIFO reserve, net (16,310 ) (14,783 ) Total inventory $ 45,140 $ 39,509 For interim reporting, LIFO inventories are computed based on quantities as of the end of the quarter and interim changes in price levels. Changes in quantities and price levels are reflected in the interim financial statements in the period in which they occur, except in cases where LIFO inventory liquidations are expected to be reinstated by fiscal year end. The earnings impact of LIFO inventory liquidations during the three and nine month periods ended March 31, 2019 and 2018 was immaterial. Our FIFO inventory increased from June 30, 2018 to March 31, 2019 in large part as a result of the David Edward acquisition. |
Note 7. Accumulated Other Compr
Note 7. Accumulated Other Comprehensive Income | 9 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Comprehensive Income | Accumulated Other Comprehensive Income During the three months ended March 31, 2019 and 2018 , the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: Accumulated Other Comprehensive Income (Amounts in Thousands) Unrealized Investment Gain (Loss) Postemployment Benefits Net Actuarial Gain (Loss) Derivative Gain (Loss) Accumulated Other Comprehensive Income Balance at December 31, 2018 $ (20 ) $ 1,881 $ — $ 1,861 Other comprehensive income (loss) before reclassifications 20 74 — 94 Reclassification to (earnings) loss — (74 ) — (74 ) Net current-period other comprehensive income (loss) 20 — — 20 Balance at March 31, 2019 $ — $ 1,881 $ — $ 1,881 Balance at December 31, 2017 $ (37 ) $ 1,364 $ — $ 1,327 Other comprehensive income (loss) before reclassifications (4 ) 57 — 53 Reclassification to (earnings) loss 1 (39 ) — (38 ) Net current-period other comprehensive income (loss) (3 ) 18 — 15 Balance at March 31, 2018 $ (40 ) $ 1,382 $ — $ 1,342 During the nine months ended March 31, 2019 and 2018 , the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: Accumulated Other Comprehensive Income (Amounts in Thousands) Unrealized Investment Gain (Loss) Postemployment Benefits Net Actuarial Gain (Loss) Derivative Gain (Loss) Accumulated Other Comprehensive Income Balance at June 30, 2018 $ (31 ) $ 1,854 $ (7 ) $ 1,816 Other comprehensive income (loss) before reclassifications 31 251 (9 ) 273 Reclassification to (earnings) loss — (224 ) 16 (208 ) Net current-period other comprehensive income (loss) 31 27 7 65 Balance at March 31, 2019 $ — $ 1,881 $ — $ 1,881 Balance at June 30, 2017 $ (21 ) $ 1,136 $ — $ 1,115 Other comprehensive income (loss) before reclassifications (22 ) 375 — 353 Reclassification to (earnings) loss 3 (129 ) — (126 ) Net current-period other comprehensive income (loss) (19 ) 246 — 227 Balance at March 31, 2018 $ (40 ) $ 1,382 $ — $ 1,342 The following reclassifications were made from Accumulated Other Comprehensive Income to the Condensed Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income Three Months Ended Nine Months Ended Affected Line Item in the Condensed Consolidated Statements of Income March 31, March 31, (Amounts in Thousands) 2019 2018 2019 2018 Realized Investment Gain (Loss) on available-for-sale securities (1) $ — $ (1 ) $ — $ (4 ) Non-operating income (expense), net — — — 1 Benefit (Provision) for Income Taxes $ — $ (1 ) $ — $ (3 ) Net Income Postemployment Benefits amortization of actuarial gain (2) $ — $ 37 $ — $ 124 Cost of Sales — 21 — 67 Selling and Administrative Expenses 100 — 302 — Non-operating income (expense), net (26 ) (19 ) (78 ) (62 ) Benefit (Provision) for Income Taxes $ 74 $ 39 $ 224 $ 129 Net Income Derivative Gain (Loss) (3) $ — $ — $ (21 ) $ — Non-operating income (expense), net — — 5 — Benefit (Provision) for Income Taxes $ — $ — $ (16 ) $ — Net Income Total Reclassifications for the Period $ 74 $ 38 $ 208 $ 126 Net Income Amounts in parentheses indicate reductions to income. (1) See Note 11 - Investments in the Notes to Condensed Consolidated Financial Statements for further information on available-for-sale securities. (2) See Note 13 - Postemployment Benefits in the Notes to Condensed Consolidated Financial Statements for further information on postemployment benefit plans. (3) See Note 12 - Derivative Instruments in the Notes to Condensed Consolidated Financial Statements for further information on derivative instruments. |
Note 8. Commitments and Conting
Note 8. Commitments and Contingent Liabilities | 9 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingent Liabilities Guarantees: Standby letters of credit were issued to lessors and insurance institutions and can only be drawn upon in the event of our failure to pay our obligations to a beneficiary. As of March 31, 2019 , we had a maximum financial exposure from unused standby letters of credit totaling $1.5 million . We are not aware of circumstances that would require us to perform under 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 condensed consolidated financial statements. Accordingly, no liability has been recorded as of March 31, 2019 with respect to the standby letters of credit. We also enter into commercial letters of credit to facilitate payments to vendors and from customers. Product Warranties: We provide an assurance-type warranty that guarantees our product complies with agreed-upon specifications. This warranty is not sold separately and does not convey any additional services to the customer. 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 for the nine months ended March 31, 2019 and 2018 were as follows: Nine Months Ended March 31 (Amounts in Thousands) 2019 2018 Product Warranty Liability at the beginning of the period $ 2,294 $ 1,992 Additions to warranty accrual (including changes in estimates) 420 1,043 Settlements made (in cash or in kind) (797 ) (773 ) Product Warranty Liability at the end of the period $ 1,917 $ 2,262 |
Note 9. Earnings Per Share (Not
Note 9. Earnings Per Share (Notes) | 9 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share 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 for all potentially dilutive securities. Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands, Except for Per Share Data) 2019 2018 2019 2018 Net Income $ 7,954 $ 5,850 $ 28,235 $ 24,185 Average Shares Outstanding for Basic EPS Calculation 36,712 37,259 36,871 37,388 Dilutive Effect of Average Outstanding Compensation Awards 197 280 389 325 Average Shares Outstanding for Diluted EPS Calculation 36,909 37,539 37,260 37,713 Basic Earnings Per Share $ 0.22 $ 0.16 $ 0.77 $ 0.65 Diluted Earnings Per Share $ 0.22 $ 0.16 $ 0.76 $ 0.64 |
Note 10. Fair Value
Note 10. Fair Value | 9 Months Ended |
Mar. 31, 2019 | |
Fair Value [Abstract] | |
Fair Value Disclosures | Fair Value We categorize assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: • Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. Our policy is to recognize transfers between these levels as of the end of each quarterly reporting period. There were no transfers between these levels during the nine months ended March 31, 2019 . There were also no changes in the inputs or valuation techniques used to measure fair values compared to those disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018 . We hold a total investment of $2.0 million in a privately-held company, consisting of $0.5 million in equity securities without readily determinable fair value and $1.5 million in stock warrants. The investment in equity securities without readily determinable fair value is classified as a Level 3 financial asset, as explained in the Financial Instruments Not Carried At Fair Value section below. The investment in stock warrants is also classified as a Level 3 financial asset and is accounted for as a derivative instrument valued on a recurring basis, as explained in the Financial Instruments Recognized at Fair Value section below. See Note 11 - Investments in the Notes to Condensed Consolidated Financial Statements for further information regarding the investment in equity securities without readily determinable fair value, and Note 12 - Derivative Instruments in the Notes to Condensed Consolidated Financial Statements for further information regarding the investment in stock warrants. No purchases or sales of Level 3 assets occurred during the nine months ended March 31, 2019 . Related to the prior year acquisition of D'style, we determine the fair value of our long-lived and intangible assets on a non-recurring basis in connection with our periodic evaluations of such assets for potential impairment and record impairment charges when such fair value estimates are lower than the carrying values of the assets. The fair value of the contingent earn-out liability as of June 30, 2018 of $1.1 million was reduced to $0.7 million as of September 30, 2018 due to payment of $0.4 million for the earn-out relating to fiscal year 2018. During the quarter ended March 31, 2019, the fair value of the contingent earn-out liability was adjusted to $0.2 million , and we recognized $0.3 million of income within Selling and Administrative Expense which was partially offset by Interest Expense. The adjustment was attributable to fiscal year 2019 D’style operating income compared to a predetermined target for the fiscal year. 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: Money market funds 1 Market - Quoted market prices Cash Equivalents: Commercial paper 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Secondary market certificates of deposit 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Municipal bonds 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: U.S. Treasury and federal agencies 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Derivative Assets: Stock warrants 3 Market - The privately-held company is currently in an early stage of start-up. The pricing of recent purchases or sales of the investment are considered, if any, as well as positive and negative qualitative evidence, in the assessment of fair value. Derivative Liability: Foreign exchange contracts 2 Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates adjusted for Kimball International's non-performance risk. Contingent earn-out liability 3 Income - Based on a valuation model that measures the present value of the probable cash payments based upon the forecasted operating performance of the acquisition and a discount rate that captures the risk associated with the liability. Recurring Fair Value Measurements: As of March 31, 2019 and June 30, 2018 , the fair values of financial assets that are measured at fair value on a recurring basis using the market approach are categorized as follows: March 31, 2019 (Amounts in Thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 21,954 $ — $ — $ 21,954 Cash equivalents: Commercial paper — 25,055 — 25,055 Available-for-sale securities: Secondary market certificates of deposit — 13,637 — 13,637 Available-for-sale securities: Municipal bonds — 2,445 — 2,445 Available-for-sale securities: U.S. Treasury and federal agencies — 25,739 — 25,739 Trading Securities: Mutual funds in nonqualified SERP 12,505 — — 12,505 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 34,459 $ 66,876 $ 1,500 $ 102,835 Liabilities Contingent earn-out liability — — 156 156 Total liabilities at fair value $ — $ — $ 156 $ 156 June 30, 2018 (Amounts in Thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 24,407 $ — $ — $ 24,407 Cash equivalents: Commercial paper — 25,918 — 25,918 Available-for-sale securities: Secondary market certificates of deposit — 11,850 — 11,850 Available-for-sale securities: Municipal bonds — 16,508 — 16,508 Available-for-sale securities: U.S. Treasury and federal agencies — 6,249 — 6,249 Trading Securities: Mutual funds in nonqualified SERP 12,114 — — 12,114 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 36,521 $ 60,525 $ 1,500 $ 98,546 Liabilities Derivatives: Foreign exchange contracts $ — $ 10 $ — $ 10 Contingent earn-out liability — — 1,056 1,056 Total liabilities at fair value $ — $ 10 $ 1,056 $ 1,066 The nonqualified supplemental employee retirement plan (“SERP”) assets consist primarily of equity funds, balanced funds, target date funds, a bond fund, and a money market fund. The SERP investment assets are offset by a SERP liability which represents our obligation to distribute SERP funds to participants. See Note 11 - Investments in the Notes to Condensed Consolidated Financial Statements for further information regarding the SERP. Financial Instruments Not Carried At Fair Value: Financial instruments that are not reflected in the Condensed Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk. Equity securities without readily determinable fair value 3 Cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Impairment is assessed qualitatively. On a periodic basis, but no less frequently than quarterly, the investment in equity securities without readily determinable fair value is qualitatively 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 investment exceeds its fair value would be recorded as an impairment loss. See Note 11 - Investments in the Notes to Condensed Consolidated Financial Statements for the carrying amount of this investment. 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 11. Investments
Note 11. Investments | 9 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | Investments Investment Portfolio: Our investment portfolio consists of municipal bonds, certificates of deposit purchased in the secondary market, and U.S. Treasury and federal agency securities. Municipal bonds include general obligation bonds and revenue bonds, some of which are pre-refunded. U.S. Treasury securities represent Treasury Bills and Notes of the U.S. government. Federal agency securities represent debt securities of a U.S. government sponsored agency, and certain of these securities are callable. Our investment policy dictates that municipal bonds, U.S. Treasury and federal agency securities must be investment grade quality. Our secondary market certificates of deposit are classified as investment securities, being purchased in the secondary market through a broker and available to be sold in the secondary market. All certificates of deposit are FDIC insured. Our investment portfolio is available for use in current operations, therefore investments are recorded within Current Assets in the Condensed Consolidated Balance Sheets. The contractual maturities of our investment portfolio were as follows (maturity dates for municipal bonds are based on pre-refunded dates and maturity dates for government agency securities are based on the first available call date, if applicable): March 31, 2019 (Amounts in Thousands) Certificates of Deposit Municipal Bonds U.S. Treasury and Federal Agencies Within one year $ 9,172 $ 2,445 $ 23,335 After one year through two years 4,465 — 2,404 Total Fair Value $ 13,637 $ 2,445 $ 25,739 All investments are classified as available-for-sale securities which are recorded at fair value. See Note 10 - Fair Value in the Notes to Condensed Consolidated Financial Statements for more information on the fair value of available-for-sale securities. The amortized cost basis reflects the original purchase price, with discounts and premiums amortized over the life of the available-for-sale securities. Unrealized losses on available-for-sale securities are recognized in earnings when there is intent to sell or it is likely to be required to sell before recovery of the loss, or when the available-for-sale securities have incurred a credit loss. Otherwise, unrealized gains and losses are recorded net of the tax-related effect as a component of Shareowners’ Equity. March 31, 2019 (Amounts in Thousands) Certificates of Deposit Municipal Bonds U.S. Treasury and Federal Agencies Amortized cost basis $ 13,637 $ 2,446 $ 25,737 Unrealized holding gains — — 7 Unrealized holding losses — (1 ) (5 ) Fair Value $ 13,637 $ 2,445 $ 25,739 June 30, 2018 (Amounts in Thousands) Certificates of Deposit Municipal Bonds U.S. Treasury and Federal Agencies Amortized cost basis $ 11,850 $ 16,532 $ 6,266 Unrealized holding gains — — — Unrealized holding losses — (24 ) (17 ) Fair Value $ 11,850 $ 16,508 $ 6,249 An immaterial amount of investments were in a continuous unrealized loss position for greater than twelve months as of March 31, 2019 . Realized gains and losses as a result of sales in the three and nine months ended March 31, 2019 and March 31, 2018 were also immaterial. Supplemental Employee Retirement Plan Investments: We maintain 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. We recognize SERP investment assets on the Condensed Consolidated Balance Sheets at current fair value. A SERP liability of the same amount is recorded on the Condensed Consolidated Balance Sheets representing an obligation to distribute SERP funds to participants. The SERP investment assets are classified as trading, and accordingly, realized and unrealized gains and losses are recognized in income in the Other Income (Expense) section of the Condensed Consolidated Statements of Income. 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) for the nine months ended March 31, 2019 and 2018 were, in thousands, $(104) and $450 , respectively. SERP asset and liability balances were as follows: (Amounts in Thousands) March 31, June 30, SERP investments - current asset $ 3,409 $ 3,868 SERP investments - other long-term asset 9,096 8,246 Total SERP investments $ 12,505 $ 12,114 SERP obligation - current liability $ 3,409 $ 3,868 SERP obligation - other long-term liability 9,096 8,246 Total SERP obligation $ 12,505 $ 12,114 Equity securities without readily determinable fair value: We hold a total investment of $2.0 million in a privately-held company, including $0.5 million in equity securities without readily determinable fair value. The investment in equity securities without readily determinable fair value is included in the Other Assets line of the Condensed Consolidated Balance Sheets. See Note 10 - Fair Value in the Notes to Condensed Consolidated Financial Statements for more information on the valuation of these securities. We do not hold a majority voting interest and are not the variable interest primary beneficiary of the privately-held company, thus consolidation is not required. |
Note 12. Derivative Instruments
Note 12. Derivative Instruments | 9 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | Derivative Instruments We hold a total investment of $2.0 million in a privately-held company, including $1.5 million in stock warrants. The investment in stock warrants is accounted for as a derivative instrument and is included in the Other Assets line of the Condensed Consolidated Balance Sheets. The stock warrants are convertible into equity shares of the privately-held company upon achieving certain milestones. The value of the stock warrants will fluctuate primarily in relation to the value of the privately-held company's underlying securities, either providing an appreciation in value or potentially expiring with no value. During the quarter ended March 31, 2019 , the change in fair value of the stock warrants was not significant. See Note 10 - Fair Value in the Notes to Condensed Consolidated Financial Statements for more information on the valuation of these securities. Information on the location and amounts of derivative fair values in the Consolidated Balance Sheets are presented below. All foreign exchange contracts were settled as of the quarter ended March 31, 2019 . Fair Values of Derivative Instruments on the Condensed Consolidated Balance Sheets Asset Derivatives Liability Derivatives Fair Value As of Fair Value As of (Amounts in Thousands) Balance Sheet Location March 31 June 30 Balance Sheet Location March 31 June 30 Derivatives designated as hedging instruments: Foreign exchange contracts Accrued expenses $ — $ 10 Derivatives not designated as hedging instruments: Stock warrants Other Assets $ 1,500 $ 1,500 Total derivatives $ 1,500 $ 1,500 $ — $ 10 |
Note 13. Postemployment Benefit
Note 13. Postemployment Benefits | 9 Months Ended |
Mar. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Postemployment Benefits Disclosure | Postemployment Benefits Our domestic employees participate in severance plans which provide severance benefits to eligible employees meeting the plans’ qualifications, primarily for involuntary termination without cause. The components of net periodic postemployment benefit cost applicable to our severance plans were as follows: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands) 2019 2018 2019 2018 Service cost $ 126 $ 132 $ 379 $ 398 Interest cost 23 20 70 62 Amortization of actuarial income (100 ) (58 ) (302 ) (191 ) Net periodic benefit cost $ 49 $ 94 $ 147 $ 269 The benefit cost in the above table includes only normal recurring levels of severance activity, as estimated using an actuarial method. Unusual or non-recurring severance actions are not estimable using actuarial methods and are expensed in accordance with the applicable U.S. GAAP. During fiscal year 2019, we reported service cost in the Cost of Sales and Selling and Administrative Expenses lines of the Condensed Consolidated Statement of Income, interest cost in the Interest Expense line, and amortization of actuarial income in the Non-Operating income (expense), net line. During fiscal year 2018, all costs were recognized in the Cost of Sales and Selling and Administrative Expenses lines and were not segregated between the operating and non-operating sections of the Condensed Consolidated Statement of Income because the impact was immaterial. |
Note 14. Stock Compensation
Note 14. Stock Compensation | 9 Months Ended |
Mar. 31, 2019 | |
Stock Compensation Plan [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments | Stock Compensation Stock-based compensation expense during the quarter and year-to-date period ended March 31, 2019 , was $1.1 million and $4.7 million , respectively, and during the quarter and year-to-date period ended March 31, 2018 , was $0.8 million and $3.3 million , respectively. The total income tax benefit for stock compensation arrangements during the quarter and year-to-date period ended March 31, 2019 , was $0.3 million and $1.2 million , respectively, and during the quarter and year-to-date period ended March 31, 2018 , was $0.3 million and $1.7 million , respectively. Included in the income tax benefit for the year-to-date period ended March 31, 2018 was a $0.6 million benefit for excess tax benefits from the vesting of stock awards, while the year-to-date period ended March 31, 2019 , had an immaterial amount of excess tax benefits. During fiscal year 2019 , the following stock compensation was awarded to officers and other key employees and to members of the Board of Directors who are not employees. All awards were granted under the 2017 Stock Incentive Plan. For more information on stock compensation awards, refer to our Annual Report on Form 10-K for the fiscal year ended June 30, 2018 . Type of Award Quarter Awarded Shares or Units Grant Date Fair Value (5) Annual Performance Shares (1) 1st Quarter 34,176 $16.12 Annual Performance Shares (1) 2nd Quarter 23,889 $16.15 - $16.17 Annual Performance Shares (1) 3rd Quarter 234 $14.93 Relative Total Shareholder Return Awards (2) 1st Quarter 9,703 $21.16 Relative Total Shareholder Return Awards (2) 2nd Quarter 60,754 $21.46 - $21.49 Restricted Stock Units (3) 1st Quarter 170,686 $15.99 - $16.39 Restricted Stock Units (3) 2nd Quarter 138,844 $16.46 - $16.48 Restricted Stock Units (3) 3rd Quarter 9,291 $15.24 Unrestricted Shares (4) 1st Quarter 12,318 $16.39 Unrestricted Shares (4) 2nd Quarter 9,522 $16.48 - $16.49 Unrestricted Shares (4) 3rd Quarter 10,498 $14.44 (1) Annual performance shares were awarded to officers and other key employees. The number of annual performance shares to be issued will be dependent upon the Company’s return on capital during fiscal year 2019, with a percentage payout ranging from 0% to 200% of the target number set forth above. The maximum number of shares that can be issued under these awards is 116,598 . Annual performance shares vest on June 30, 2019. (2) Performance units were awarded to key officers under the Company’s Relative Total Shareholder Return program. Vesting occurs at June 30, 2020 and June 30, 2021. Participants will earn from 0% to 200% of the target award depending upon how the compound annual growth rate of Kimball International common stock ranks within the peer group at the end of the performance period. The maximum number of units that can be issued under these awards is 140,914 . (3) Restricted stock units were awarded to officers and key employees. Vesting occurs at June 30, 2019, June 30, 2020, and June 30, 2021. Upon vesting, the outstanding number of restricted stock units and the value of dividends accumulated over the vesting period are converted to shares of common stock. (4) Unrestricted shares were awarded to non-employee members of the Board of Directors and key employees as consideration for service to Kimball International and do not have vesting periods, holding periods, restrictions on sale, or other restrictions. (5) The grant date fair value of annual performance shares is based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding annual performance share awards. The grant date fair value of the Relative Total Shareholder Return awards was calculated using a Monte Carlo simulation. This valuation technique includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. The grant date fair value of the restricted share units and unrestricted shares was based on the stock price at the date of the award. |
Note 15. Variable Interest Enti
Note 15. Variable Interest Entities | 9 Months Ended |
Mar. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities Our involvement with variable interest entities (“VIEs”) is 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 a privately-held company consisting of equity securities without readily determinable fair value and stock warrants, and notes receivable related to independent dealership financing. The equity securities without readily determinable fair value and stock warrants were valued at $0.5 million and $1.5 million , respectively, at both March 31, 2019 and June 30, 2018 and were included in the Other Assets line of the Condensed Consolidated Balance Sheets. For more information related to our investment in the privately-held company, see Note 10 - Fair Value in the Notes to Condensed Consolidated Financial Statements. The carrying value of the notes receivable for independent dealership financing were $1.0 million , net of a $0.1 million allowance, and $0.6 million , net of a $0.1 million allowance as of March 31, 2019 and June 30, 2018 , respectively, and were included on the Receivables and Other Assets lines of our Condensed 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 International to the VIEs was limited to the items discussed above during the quarter ended March 31, 2019 . |
Note 16. Credit Quality and All
Note 16. Credit Quality and Allowance for Credit Losses of Notes Receivable | 9 Months Ended |
Mar. 31, 2019 | |
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 We monitor 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. As of March 31, 2019 and June 30, 2018 , we had no material past due outstanding notes receivable. As of March 31, 2019 As of June 30, 2018 (Amounts in Thousands) Unpaid Balance Related Allowance Receivable Net of Allowance Unpaid Balance Related Allowance Receivable Net of Allowance Independent Dealership Financing $ 1,099 $ 88 $ 1,011 $ 666 $ 50 $ 616 Other Notes Receivable 173 173 — 183 183 — Total $ 1,272 $ 261 $ 1,011 $ 849 $ 233 $ 616 |
Note 1. Basis of Presentation (
Note 1. Basis of Presentation (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Kimball International, Inc. (the “Company,” “Kimball International,” “we,” “us,” or “our”) have been prepared in accordance with the instructions to Form 10-Q. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted, although we believe that the disclosures are adequate to make the information presented not misleading. Intercompany transactions and balances have been eliminated. Management believes the financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly the financial statements for the interim periods. The results of operations for the interim periods shown in this report are not necessarily indicative of results for any future interim period or for the entire fiscal year. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in our latest annual report on Form 10-K. |
Reclassification, Policy [Policy Text Block] | Prior Period Reclassifications Our prior period financial statements were recast for the full retrospective adoption of guidance on the recognition of revenue from contracts with customers. Certain prior period amounts on the Condensed Consolidated Statements of Cash Flows have also been recast to incorporate restricted cash flows and restricted cash balances, as a result of the retrospective adoption of new accounting guidance. |
Note 2. Recent Accounting Pro_2
Note 2. Recent Accounting Pronouncements and Supplemental Information (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | |
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. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements: In August 2018, the Securities and Exchange Commission adopted disclosure and simplification amendments which update certain disclosure requirements that were redundant, duplicative, overlapping, outdated, or superseded. The amendments require a shareowners’ equity statement provided in interim financial statements or in a note. The adoption resulted in the addition of an interim Condensed Consolidated Statements of Shareowners’ Equity. In June 2018, the Financial Accounting Standards Board (“FASB”) issued guidance to improve the accounting for and to reduce the cost and complexity of share-based payments to nonemployees for goods and services. The guidance is effective for our first quarter of fiscal year 2020 with early adoption permitted, but it may not be adopted earlier than our adoption of the new revenue standard. We early adopted the guidance in our first quarter of fiscal year 2019 in advance of the October 2018 retirement of our former Chief Executive Officer and Chairman of the Board of Directors, who will have stock compensation awards vesting after his retirement. The adoption did not have a material effect on our condensed consolidated financial statements. In May 2017, the FASB issued guidance that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance was adopted during our first quarter of fiscal year 2019 and was applied prospectively to awards modified on or after the adoption date. The adoption of the guidance did not have a material effect on our condensed consolidated financial statements. In March 2017, the FASB issued guidance that requires employers that present a measure of operating income in their statement of income to include only the service cost component of net periodic benefit cost in operating expenses, which will impact the presentation of our postemployment benefit plan. Employers are required to present all other components of Net periodic benefit cost separate from the service costs and disclose the line item in which the components of Net periodic benefit cost other than the service cost are included. Due to the immaterial amounts in prior periods we did not apply the rule retrospectively. The guidance was adopted during our first quarter of fiscal year 2019 and did not have a material effect on our condensed consolidated financial statements. In February 2017, the FASB issued guidance that clarifies the scope of guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. This new guidance is meant to clarify the scope of the original guidance that was issued in connection with the guidance relating to the recognition of revenue from contracts with customers, as defined below, which addresses recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. The guidance was adopted during our first quarter of fiscal year 2019 concurrently with the adoption of the guidance on recognition of revenue from contracts with customers. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. In November 2016, the FASB issued guidance which requires an entity to include in their cash and cash equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. The guidance was adopted during our first quarter of fiscal year 2019 and was applied retrospectively to each prior reporting period. The guidance resulted in certain prior period amounts being reclassified to conform with the current period presentation, including the addition of restricted cash to cash and cash equivalents on the Condensed Consolidated Statements of Cash Flows. 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 was adopted during our first quarter of fiscal year 2019 and did not have a material effect on our condensed 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 made the guidance effective for our first quarter of fiscal year 2019 financial statements using either of two acceptable adoption methods: (i) full 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 clarified assessing whether an entity is a principal or an agent in a revenue transaction, and impacted whether an entity reports revenue on a gross or net basis; in April 2016, the FASB issued additional guidance that addressed identifying performance obligations and implementing licensing guidance; and in May 2016, the FASB issued additional guidance that clarified collectability, noncash consideration, and other transition issues. The amendments had the same effective date and transition requirements as the new revenue standard. We adopted the standard at the beginning of fiscal year 2019 using the full retrospective approach which required that we recast prior year comparative periods to provide comparable financial reporting for all reported fiscal years. All changes required by the new standard, including accounting policies, controls, and disclosures, have been identified and implemented as of the beginning of fiscal 2019. We applied the transition practical expedient related to remaining performance obligations for reporting periods presented before the date of initial application. See Note 4 - Revenue in the Notes to Condensed Consolidated Financial Statements for more information on revenue recognition. Recently Issued Accounting Pronouncements Not Yet Adopted: In August 2018, the FASB issued guidance on a customer’s accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor. Under the new guidance, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. The guidance is effective for our first quarter of fiscal year 2021 with early adoption permitted. Entities can choose to adopt the guidance prospectively to eligible costs incurred on or after the date this guidance is first applied or retrospectively. We have not yet determined the effect of this guidance on our condensed consolidated financial statements. In August 2018, the FASB issued guidance to add, remove, and clarify disclosure requirements related to defined pension benefit and other postretirement plans. The guidance is effective for our first quarter of fiscal year 2021 with early adoption permitted and should be applied retrospectively. We have not yet determined the effect of this guidance on our condensed consolidated financial statements. In August 2018, the FASB issued guidance which changes the fair value measurement disclosure requirements. The guidance modifies and removes certain disclosures related to the fair value hierarchy, and adds new disclosure requirements such as disclosing the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance is effective for our first quarter of fiscal year 2021 with early adoption permitted and should be applied retrospectively except for certain disclosures. We have not yet determined the effect of this guidance on our condensed consolidated financial statements. In March 2017, the FASB issued guidance that will shorten the amortization period for certain callable debt securities held at a premium to the earliest call date. This guidance does not require an accounting change for securities held at a discount. This guidance is to be applied on a modified retrospective basis, with a cumulative-effect adjustment recorded directly to retained earnings as of the beginning of the period of adoption. The guidance is effective for our first quarter of fiscal year 2020 with early adoption permitted. We have not yet determined the effect of this guidance on our condensed consolidated financial statements. 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 condensed 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. In January 2018, the FASB issued additional guidance for land easements which permits entities to forgo the evaluation of existing land easement arrangements to determine if they contain a lease. New land easement arrangements, or modifications to existing arrangements, after the adoption of the lease standard will be evaluated to determine if they meet the definition of a lease. In July 2018, the FASB amended the new standard to clarify certain aspects of the guidance, and they also issued another new standard in July 2018 that allows the option to apply the transition provisions at the adoption date instead of at the earliest comparative period in the condensed consolidated financial statements. In March 2019, the FASB issued clarifying guidance regarding interim transition disclosures. The lease guidance is effective for our first quarter of fiscal year 2020 with early adoption permitted. We have assessed our portfolio of leases and compiled a central repository of active leases. We are also evaluating key policy elections under the standard which we will use to develop an internal policy to address the new standard requirements. While we continue to assess the impact on our accounting policies, internal control processes, and related disclosures required under the new guidance, we will be required to record a right-of-use asset and a lease liability for all leases with a lease term of greater than twelve months. We do not expect this standard to materially affect our consolidated net income. These conclusions could change as we continue to evaluate the new standard or if our lease portfolio changes. We anticipate electing certain of the available practical expedients, including the transition option, upon adoption on July 1, 2019. |
Goodwill | Goodwill represents the difference between the purchase price and the related underlying tangible and intangible net asset fair values resulting from business acquisitions. Goodwill is assigned to and the fair value is tested at the reporting unit level. Annually, or if conditions indicate an earlier review is necessary, we may assess qualitative factors to determine if it is more likely than not that the fair value is less than its carrying amount. We also have the option to bypass the qualitative assessment and proceed directly to performing the quantitative goodwill impairment test which compares the carrying value of the reporting unit to the reporting unit’s fair value to identify impairment. Under the quantitative assessment, if the fair value of the reporting unit is less than the carrying value, goodwill is written down to its fair value. The fair value is established primarily using a discounted cash flow analysis and secondarily a market approach utilizing current industry information. The calculation of the fair value of the reporting unit considers current market conditions existing at the assessment date. |
Intangible Assets | Capitalized 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 re-engineering costs are expensed in the period in which they are incurred. Trade names and non-compete agreements are amortized on a straight-line basis over their estimated useful lives. Capitalized customer relationships are amortized based on estimated attrition rates of customers. We have no intangible assets with indefinite useful lives which are not subject to amortization. |
Notes Receivables and Trade Accounts Receivable | Notes Receivable and Trade Accounts Receivable: Notes receivable and trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. We determine on a case-by-case basis the cessation of accruing interest, the resumption of accruing interest, the method of recording payments received on nonaccrual receivables, and the delinquency status for our limited number of notes receivable. Our policy for estimating the allowance for credit losses on trade accounts receivable and notes receivable includes analysis of such items as aging, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to determine the final allowance for credit losses on the trade accounts receivable and notes receivable. Trade accounts receivable and notes receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Our limited amount of notes receivable allows management to monitor the risks, credit quality indicators, collectability, and probability of impairment on an individual basis. Adjustments to the allowance for credit losses are recorded in selling and administrative expenses. Customary terms require payment within 30 days , with terms beyond 30 days being considered extended. |
Non-operating Income and Expense, net | Non-operating Income (Expense), net: The non-operating income (expense), net line item includes the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, amortization of actuarial income, foreign currency rate movements, investment gain or loss, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain or loss on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. |
Note 4. Revenue Revenue (Polici
Note 4. Revenue Revenue (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Revenue [Abstract] | |
Revenue Recognition, Sales of Goods | We recognize revenue when performance obligations under the terms of contracts with our customers are satisfied, which occurs when control passes to a customer to enable them to direct the use of and obtain benefit from a product. This typically occurs when a customer obtains legal title, obtains the risks and rewards of ownership, has received the goods according to the contractual shipping terms either at the shipping point or destination, and is obligated to pay for the product. |
Revenue Recognition, Sales of Services | For services, revenue is recognized when the service is performed and we have an enforceable right to payment. |
Shipping and Handling Cost | We classify shipping and handling expenses in Cost of Sales in the Condensed Consolidated Statements of Income. |
Revenue Recognition, Revenue Reductions | We are also applying an accounting policy election which allows an entity to exclude from revenue any amounts collected from customers on behalf of third parties, such as sales taxes and other similar taxes we collect concurrent with revenue-producing activities. Therefore, we present revenue net of sales taxes and similar revenue-based taxes. |
Note 5. Income Taxes (Policies)
Note 5. Income Taxes (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax, Policy [Policy Text Block] | In determining the quarterly provision for income taxes, we use an estimated annual effective tax rate which is based on expected annual income, statutory tax rates, and available tax planning opportunities in the various jurisdictions in which we operate. Unusual or infrequently occurring items are separately recognized in the quarter in which they occur. |
Note 6. Inventories (Policies)
Note 6. Inventories (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Inventories [Abstract] | |
Inventory | For interim reporting, LIFO inventories are computed based on quantities as of the end of the quarter and interim changes in price levels. Changes in quantities and price levels are reflected in the interim financial statements in the period in which they occur, except in cases where LIFO inventory liquidations are expected to be reinstated by fiscal year end. |
Note 8. Commitments and Conti_2
Note 8. Commitments and Contingent Liabilities (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
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 10. Fair Value (Policies)
Note 10. Fair Value (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Fair Value [Abstract] | |
Fair Value | We categorize assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: • Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. Our policy is to recognize transfers between these levels as of the end of each quarterly reporting period. There were no transfers between these levels during the nine months ended March 31, 2019 . There were also no changes in the inputs or valuation techniques used to measure fair values compared to those disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018 . |
Fair Value of Financial Instruments Policy Continued | The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents: Money market funds 1 Market - Quoted market prices Cash Equivalents: Commercial paper 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Secondary market certificates of deposit 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Municipal bonds 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: U.S. Treasury and federal agencies 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Derivative Assets: Stock warrants 3 Market - The privately-held company is currently in an early stage of start-up. The pricing of recent purchases or sales of the investment are considered, if any, as well as positive and negative qualitative evidence, in the assessment of fair value. Derivative Liability: Foreign exchange contracts 2 Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates adjusted for Kimball International's non-performance risk. Contingent earn-out liability 3 Income - Based on a valuation model that measures the present value of the probable cash payments based upon the forecasted operating performance of the acquisition and a discount rate that captures the risk associated with the liability. |
Business Combinations Policy | Related to the prior year acquisition of D'style, we determine the fair value of our long-lived and intangible assets on a non-recurring basis in connection with our periodic evaluations of such assets for potential impairment and record impairment charges when such fair value estimates are lower than the carrying values of the assets. |
Fair Value of Financial Instruments Not Carried at Fair Value | Financial instruments that are not reflected in the Condensed Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk. Equity securities without readily determinable fair value 3 Cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Impairment is assessed qualitatively. On a periodic basis, but no less frequently than quarterly, the investment in equity securities without readily determinable fair value is qualitatively 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 investment exceeds its fair value would be recorded as an impairment loss. |
Note 11. Investments (Policies)
Note 11. Investments (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Investment, Policy [Policy Text Block] | Our investment policy dictates that municipal bonds, U.S. Treasury and federal agency securities must be investment grade quality. |
Note 14. Stock Compensation (Po
Note 14. Stock Compensation (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Stock Compensation Plan [Abstract] | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | The grant date fair value of annual performance shares is based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding annual performance share awards. The grant date fair value of the Relative Total Shareholder Return awards was calculated using a Monte Carlo simulation. This valuation technique includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. The grant date fair value of the restricted share units and unrestricted shares was based on the stock price at the date of the award. |
Note 2. Recent Accounting Pro_3
Note 2. Recent Accounting Pronouncements and Supplemental Information (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | |
Schedule of Finite-Lived Intangible Assets | A summary of intangible assets subject to amortization is as follows: March 31, 2019 June 30, 2018 (Amounts in Thousands) Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Capitalized Software $ 39,239 $ 36,590 $ 2,649 $ 38,482 $ 35,922 $ 2,560 Product Rights — — — 162 162 — Customer Relationships 7,050 878 6,172 7,050 422 6,628 Trade Names 3,570 506 3,064 3,570 238 3,332 Non-Compete Agreements 100 28 72 100 13 87 Other Intangible Assets $ 49,959 $ 38,002 $ 11,957 $ 49,364 $ 36,757 $ 12,607 |
Components of Non-operating income (expense), net | Components of the Non-operating income (expense), net line, were: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands) 2019 2018 2019 2018 Gain (Loss) on SERP Investments $ 1,032 $ (8 ) $ 306 $ 756 Other (62 ) (197 ) (235 ) (412 ) Non-operating income (expense), net $ 970 $ (205 ) $ 71 $ 344 |
Note 3. Acquisition (Tables)
Note 3. Acquisition (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | A summary of the preliminary purchase price allocation is as follows: Purchase Price Allocation (Amounts in Thousands) Assets: Receivables $ 330 Inventories 2,768 Prepaid expenses and other current assets 284 Net property and equipment 934 Goodwill 2,103 $ 6,419 Liabilities: Accounts payable $ 1,447 Accrued expenses 122 $ 1,569 $ 4,850 |
Schedule of Goodwill [Table Text Block] | The following summarizes our goodwill activity: Goodwill related to David Edward Acquisition (Amounts in Thousands) Goodwill - June 30, 2018 $ — Goodwill - at acquisition date 1,960 Adjustments to purchase price allocation 143 Goodwill - March 31, 2019 $ 2,103 |
Note 4. Revenue (Tables)
Note 4. Revenue (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Impact to Condensed Consolidated Statements of Income Three Months Ended March 31, 2018 (Amounts in Thousands) As Originally Reported Adoption of New Revenue Standard As Adjusted Net Sales $ 157,897 $ 3,000 $ 160,897 Cost of Sales 110,142 791 110,933 Gross Profit 47,755 2,209 49,964 Selling and Administrative Expenses 39,245 2,209 41,454 Operating Income 8,510 — 8,510 Operating Income as of Percent of Net Sales 5.4 % 5.3 % Nine Months Ended March 31, 2018 (Amounts in Thousands) As Originally Reported Adoption of New Revenue Standard As Adjusted Net Sales $ 501,088 $ 13,783 $ 514,871 Cost of Sales 339,808 3,672 343,480 Gross Profit 161,280 10,111 171,391 Selling and Administrative Expenses 124,808 10,111 134,919 Operating Income 36,472 — 36,472 Operating Income as of Percent of Net Sales 7.3 % 7.1 % |
Schedule Of New Accounting Pronouncements And Changes In Accounting Principles2 [Table Text Block] | Impact to Condensed Consolidated Balance Sheet As of June 30, 2018 (Amounts in Thousands) As Originally Reported Adoption of New Revenue Standard As Adjusted Receivables, net of allowances $ 60,984 $ 1,292 $ 62,276 Accrued Expenses 49,294 1,292 50,586 |
Disaggregation of Revenue [Table Text Block] | The following table provides information about revenue by vertical market: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Millions) 2019 2018 2019 2018 Commercial $ 50.9 $ 50.2 $ 171.1 $ 151.8 Education 13.5 12.7 66.2 61.8 Finance 16.9 17.8 53.2 48.9 Government 19.1 17.6 55.0 68.9 Healthcare 28.7 19.5 81.6 63.7 Hospitality 48.3 43.1 145.4 119.8 Total Net Sales $ 177.4 $ 160.9 $ 572.5 $ 514.9 |
Contract with Customer, Liability [Table Text Block] | Changes in the customer deposits during the nine months ended March 31, 2019 are as follows: (Amounts in Millions) Customer Deposits Balance as of June 30, 2018 $ 21.3 Increases due to deposits received, net of other adjustments 92.0 Revenue recognized (85.7 ) Balance as of March 31, 2019 $ 27.6 |
Note 6. Inventories (Tables)
Note 6. Inventories (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Inventories [Abstract] | |
Schedule of Inventory, Current | Inventory components were as follows: (Amounts in Thousands) March 31, 2019 June 30, Finished products $ 24,776 $ 23,756 Work-in-process 2,764 1,378 Raw materials 33,910 29,158 Total FIFO inventory 61,450 54,292 LIFO reserve, net (16,310 ) (14,783 ) Total inventory $ 45,140 $ 39,509 |
Note 7. Accumulated Other Com_2
Note 7. Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | During the three months ended March 31, 2019 and 2018 , the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: Accumulated Other Comprehensive Income (Amounts in Thousands) Unrealized Investment Gain (Loss) Postemployment Benefits Net Actuarial Gain (Loss) Derivative Gain (Loss) Accumulated Other Comprehensive Income Balance at December 31, 2018 $ (20 ) $ 1,881 $ — $ 1,861 Other comprehensive income (loss) before reclassifications 20 74 — 94 Reclassification to (earnings) loss — (74 ) — (74 ) Net current-period other comprehensive income (loss) 20 — — 20 Balance at March 31, 2019 $ — $ 1,881 $ — $ 1,881 Balance at December 31, 2017 $ (37 ) $ 1,364 $ — $ 1,327 Other comprehensive income (loss) before reclassifications (4 ) 57 — 53 Reclassification to (earnings) loss 1 (39 ) — (38 ) Net current-period other comprehensive income (loss) (3 ) 18 — 15 Balance at March 31, 2018 $ (40 ) $ 1,382 $ — $ 1,342 During the nine months ended March 31, 2019 and 2018 , the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: Accumulated Other Comprehensive Income (Amounts in Thousands) Unrealized Investment Gain (Loss) Postemployment Benefits Net Actuarial Gain (Loss) Derivative Gain (Loss) Accumulated Other Comprehensive Income Balance at June 30, 2018 $ (31 ) $ 1,854 $ (7 ) $ 1,816 Other comprehensive income (loss) before reclassifications 31 251 (9 ) 273 Reclassification to (earnings) loss — (224 ) 16 (208 ) Net current-period other comprehensive income (loss) 31 27 7 65 Balance at March 31, 2019 $ — $ 1,881 $ — $ 1,881 Balance at June 30, 2017 $ (21 ) $ 1,136 $ — $ 1,115 Other comprehensive income (loss) before reclassifications (22 ) 375 — 353 Reclassification to (earnings) loss 3 (129 ) — (126 ) Net current-period other comprehensive income (loss) (19 ) 246 — 227 Balance at March 31, 2018 $ (40 ) $ 1,382 $ — $ 1,342 |
Reclassifications from Accumulated Other Comprehensive Income | The following reclassifications were made from Accumulated Other Comprehensive Income to the Condensed Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income Three Months Ended Nine Months Ended Affected Line Item in the Condensed Consolidated Statements of Income March 31, March 31, (Amounts in Thousands) 2019 2018 2019 2018 Realized Investment Gain (Loss) on available-for-sale securities (1) $ — $ (1 ) $ — $ (4 ) Non-operating income (expense), net — — — 1 Benefit (Provision) for Income Taxes $ — $ (1 ) $ — $ (3 ) Net Income Postemployment Benefits amortization of actuarial gain (2) $ — $ 37 $ — $ 124 Cost of Sales — 21 — 67 Selling and Administrative Expenses 100 — 302 — Non-operating income (expense), net (26 ) (19 ) (78 ) (62 ) Benefit (Provision) for Income Taxes $ 74 $ 39 $ 224 $ 129 Net Income Derivative Gain (Loss) (3) $ — $ — $ (21 ) $ — Non-operating income (expense), net — — 5 — Benefit (Provision) for Income Taxes $ — $ — $ (16 ) $ — Net Income Total Reclassifications for the Period $ 74 $ 38 $ 208 $ 126 Net Income Amounts in parentheses indicate reductions to income. (1) See Note 11 - Investments in the Notes to Condensed Consolidated Financial Statements for further information on available-for-sale securities. (2) See Note 13 - Postemployment Benefits in the Notes to Condensed Consolidated Financial Statements for further information on postemployment benefit plans. (3) See Note 12 - Derivative Instruments in the Notes to Condensed Consolidated Financial Statements for further information on derivative instruments. |
Note 8. Commitments and Conti_3
Note 8. Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingent Liabilities [Abstract] | |
Schedule of Product Warranty Liability | Changes in the product warranty accrual for the nine months ended March 31, 2019 and 2018 were as follows: Nine Months Ended March 31 (Amounts in Thousands) 2019 2018 Product Warranty Liability at the beginning of the period $ 2,294 $ 1,992 Additions to warranty accrual (including changes in estimates) 420 1,043 Settlements made (in cash or in kind) (797 ) (773 ) Product Warranty Liability at the end of the period $ 1,917 $ 2,262 |
Note 9. Earnings Per Share (Tab
Note 9. Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands, Except for Per Share Data) 2019 2018 2019 2018 Net Income $ 7,954 $ 5,850 $ 28,235 $ 24,185 Average Shares Outstanding for Basic EPS Calculation 36,712 37,259 36,871 37,388 Dilutive Effect of Average Outstanding Compensation Awards 197 280 389 325 Average Shares Outstanding for Diluted EPS Calculation 36,909 37,539 37,260 37,713 Basic Earnings Per Share $ 0.22 $ 0.16 $ 0.77 $ 0.65 Diluted Earnings Per Share $ 0.22 $ 0.16 $ 0.76 $ 0.64 |
Note 10. Fair Value (Tables)
Note 10. Fair Value (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Fair Value [Abstract] | |
Fair Value Measurements, Recurring, Valuation Techniques | The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents: Money market funds 1 Market - Quoted market prices Cash Equivalents: Commercial paper 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Secondary market certificates of deposit 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Municipal bonds 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: U.S. Treasury and federal agencies 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Derivative Assets: Stock warrants 3 Market - The privately-held company is currently in an early stage of start-up. The pricing of recent purchases or sales of the investment are considered, if any, as well as positive and negative qualitative evidence, in the assessment of fair value. Derivative Liability: Foreign exchange contracts 2 Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates adjusted for Kimball International's non-performance risk. Contingent earn-out liability 3 Income - Based on a valuation model that measures the present value of the probable cash payments based upon the forecasted operating performance of the acquisition and a discount rate that captures the risk associated with the liability. |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | As of March 31, 2019 and June 30, 2018 , the fair values of financial assets that are measured at fair value on a recurring basis using the market approach are categorized as follows: March 31, 2019 (Amounts in Thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 21,954 $ — $ — $ 21,954 Cash equivalents: Commercial paper — 25,055 — 25,055 Available-for-sale securities: Secondary market certificates of deposit — 13,637 — 13,637 Available-for-sale securities: Municipal bonds — 2,445 — 2,445 Available-for-sale securities: U.S. Treasury and federal agencies — 25,739 — 25,739 Trading Securities: Mutual funds in nonqualified SERP 12,505 — — 12,505 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 34,459 $ 66,876 $ 1,500 $ 102,835 Liabilities Contingent earn-out liability — — 156 156 Total liabilities at fair value $ — $ — $ 156 $ 156 June 30, 2018 (Amounts in Thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 24,407 $ — $ — $ 24,407 Cash equivalents: Commercial paper — 25,918 — 25,918 Available-for-sale securities: Secondary market certificates of deposit — 11,850 — 11,850 Available-for-sale securities: Municipal bonds — 16,508 — 16,508 Available-for-sale securities: U.S. Treasury and federal agencies — 6,249 — 6,249 Trading Securities: Mutual funds in nonqualified SERP 12,114 — — 12,114 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 36,521 $ 60,525 $ 1,500 $ 98,546 Liabilities Derivatives: Foreign exchange contracts $ — $ 10 $ — $ 10 Contingent earn-out liability — — 1,056 1,056 Total liabilities at fair value $ — $ 10 $ 1,056 $ 1,066 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | Financial instruments that are not reflected in the Condensed Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk. Equity securities without readily determinable fair value 3 Cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Impairment is assessed qualitatively. |
Note 11. Investments (Tables)
Note 11. Investments (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Schedule of Contractual Maturities on Investments | The contractual maturities of our investment portfolio were as follows (maturity dates for municipal bonds are based on pre-refunded dates and maturity dates for government agency securities are based on the first available call date, if applicable): March 31, 2019 (Amounts in Thousands) Certificates of Deposit Municipal Bonds U.S. Treasury and Federal Agencies Within one year $ 9,172 $ 2,445 $ 23,335 After one year through two years 4,465 — 2,404 Total Fair Value $ 13,637 $ 2,445 $ 25,739 |
Unrealized Gain (Loss) on Investments | March 31, 2019 (Amounts in Thousands) Certificates of Deposit Municipal Bonds U.S. Treasury and Federal Agencies Amortized cost basis $ 13,637 $ 2,446 $ 25,737 Unrealized holding gains — — 7 Unrealized holding losses — (1 ) (5 ) Fair Value $ 13,637 $ 2,445 $ 25,739 June 30, 2018 (Amounts in Thousands) Certificates of Deposit Municipal Bonds U.S. Treasury and Federal Agencies Amortized cost basis $ 11,850 $ 16,532 $ 6,266 Unrealized holding gains — — — Unrealized holding losses — (24 ) (17 ) Fair Value $ 11,850 $ 16,508 $ 6,249 |
Trading Securities (and Certain Trading Assets) | SERP asset and liability balances were as follows: (Amounts in Thousands) March 31, June 30, SERP investments - current asset $ 3,409 $ 3,868 SERP investments - other long-term asset 9,096 8,246 Total SERP investments $ 12,505 $ 12,114 SERP obligation - current liability $ 3,409 $ 3,868 SERP obligation - other long-term liability 9,096 8,246 Total SERP obligation $ 12,505 $ 12,114 |
Note 12. Derivative Instrumen_2
Note 12. Derivative Instruments (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments [Abstract] | |
Schedule of Derivative Instruments | Fair Values of Derivative Instruments on the Condensed Consolidated Balance Sheets Asset Derivatives Liability Derivatives Fair Value As of Fair Value As of (Amounts in Thousands) Balance Sheet Location March 31 June 30 Balance Sheet Location March 31 June 30 Derivatives designated as hedging instruments: Foreign exchange contracts Accrued expenses $ — $ 10 Derivatives not designated as hedging instruments: Stock warrants Other Assets $ 1,500 $ 1,500 Total derivatives $ 1,500 $ 1,500 $ — $ 10 |
Note 13. Postemployment Benef_2
Note 13. Postemployment Benefits (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The components of net periodic postemployment benefit cost applicable to our severance plans were as follows: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands) 2019 2018 2019 2018 Service cost $ 126 $ 132 $ 379 $ 398 Interest cost 23 20 70 62 Amortization of actuarial income (100 ) (58 ) (302 ) (191 ) Net periodic benefit cost $ 49 $ 94 $ 147 $ 269 |
Note 14. Stock Compensation (Ta
Note 14. Stock Compensation (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Stock Compensation Plan [Abstract] | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Grants in Period | Type of Award Quarter Awarded Shares or Units Grant Date Fair Value (5) Annual Performance Shares (1) 1st Quarter 34,176 $16.12 Annual Performance Shares (1) 2nd Quarter 23,889 $16.15 - $16.17 Annual Performance Shares (1) 3rd Quarter 234 $14.93 Relative Total Shareholder Return Awards (2) 1st Quarter 9,703 $21.16 Relative Total Shareholder Return Awards (2) 2nd Quarter 60,754 $21.46 - $21.49 Restricted Stock Units (3) 1st Quarter 170,686 $15.99 - $16.39 Restricted Stock Units (3) 2nd Quarter 138,844 $16.46 - $16.48 Restricted Stock Units (3) 3rd Quarter 9,291 $15.24 Unrestricted Shares (4) 1st Quarter 12,318 $16.39 Unrestricted Shares (4) 2nd Quarter 9,522 $16.48 - $16.49 Unrestricted Shares (4) 3rd Quarter 10,498 $14.44 (1) Annual performance shares were awarded to officers and other key employees. The number of annual performance shares to be issued will be dependent upon the Company’s return on capital during fiscal year 2019, with a percentage payout ranging from 0% to 200% of the target number set forth above. The maximum number of shares that can be issued under these awards is 116,598 . Annual performance shares vest on June 30, 2019. (2) Performance units were awarded to key officers under the Company’s Relative Total Shareholder Return program. Vesting occurs at June 30, 2020 and June 30, 2021. Participants will earn from 0% to 200% of the target award depending upon how the compound annual growth rate of Kimball International common stock ranks within the peer group at the end of the performance period. The maximum number of units that can be issued under these awards is 140,914 . (3) Restricted stock units were awarded to officers and key employees. Vesting occurs at June 30, 2019, June 30, 2020, and June 30, 2021. Upon vesting, the outstanding number of restricted stock units and the value of dividends accumulated over the vesting period are converted to shares of common stock. (4) Unrestricted shares were awarded to non-employee members of the Board of Directors and key employees as consideration for service to Kimball International and do not have vesting periods, holding periods, restrictions on sale, or other restrictions. (5) The grant date fair value of annual performance shares is based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding annual performance share awards. The grant date fair value of the Relative Total Shareholder Return awards was calculated using a Monte Carlo simulation. This valuation technique includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. The grant date fair value of the restricted share units and unrestricted shares was based on the stock price at the date of the award. |
Note 16. Credit Quality and A_2
Note 16. Credit Quality and Allowance for Credit Losses of Notes Receivable (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Credit Quality and Allowance for Credit Losses of Notes Receivable [Abstract] | |
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent | As of March 31, 2019 As of June 30, 2018 (Amounts in Thousands) Unpaid Balance Related Allowance Receivable Net of Allowance Unpaid Balance Related Allowance Receivable Net of Allowance Independent Dealership Financing $ 1,099 $ 88 $ 1,011 $ 666 $ 50 $ 616 Other Notes Receivable 173 173 — 183 183 — Total $ 1,272 $ 261 $ 1,011 $ 849 $ 233 $ 616 |
Note 2. Recent Accounting Pro_4
Note 2. Recent Accounting Pronouncements and Supplemental Information - Goodwill and Other Intangible Assets Textuals (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Oct. 26, 2018 | Jun. 30, 2018 | |
Goodwill, Impairment Loss | $ 0 | |||||
Goodwill | 11,153,000 | $ 11,153,000 | $ 8,824,000 | |||
Amortization | 496,000 | $ 534,000 | 1,455,000 | $ 1,280,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 512,000 | 512,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 2,052,000 | 2,052,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,668,000 | 1,668,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,300,000 | 1,300,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,056,000 | 1,056,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 5,369,000 | 5,369,000 | ||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 0 | 0 | ||||
Adjustments to purchase price allocation | $ 200,000 | |||||
Software and Software Development Costs | Minimum | ||||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||||
Software and Software Development Costs | Maximum | ||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||||
Customer Relationships | ||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||||
Trade Names | ||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||||
Non-Compete Agreements | ||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||||
David Edward | ||||||
Goodwill | 2,103,000 | $ 2,103,000 | $ 1,960,000 | $ 0 | ||
Adjustments to purchase price allocation | 143,000 | |||||
D'style | ||||||
Goodwill | 8,800,000 | 8,800,000 | ||||
Intangible Assets, Gross (Excluding Goodwill) | $ 10,700,000 | $ 10,700,000 |
Note 2. Recent Accounting Pro_5
Note 2. Recent Accounting Pronouncements and Supplemental Information - Textuals (Details) | 9 Months Ended |
Mar. 31, 2019 | |
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation [true/false] | true |
Accounts Receivable, Customary Payment Terms | 30 days |
Accounts Receivable, Days Beyond Which Terms Are Considered Extended Payment Terms | 30 days |
Note 2. Recent Accounting Pro_6
Note 2. Recent Accounting Pronouncements and Supplemental Information - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Cost | $ 49,959 | $ 49,364 |
Intangible Assets Accumulated Amortization | 38,002 | 36,757 |
Finite-Lived Intangible Assets, Net Value | 11,957 | 12,607 |
Capitalized Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Cost | 39,239 | 38,482 |
Intangible Assets Accumulated Amortization | 36,590 | 35,922 |
Finite-Lived Intangible Assets, Net Value | 2,649 | 2,560 |
Product Rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Cost | 0 | 162 |
Intangible Assets Accumulated Amortization | 0 | 162 |
Finite-Lived Intangible Assets, Net Value | 0 | 0 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Cost | 7,050 | 7,050 |
Intangible Assets Accumulated Amortization | 878 | 422 |
Finite-Lived Intangible Assets, Net Value | 6,172 | 6,628 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Cost | 3,570 | 3,570 |
Intangible Assets Accumulated Amortization | 506 | 238 |
Finite-Lived Intangible Assets, Net Value | 3,064 | 3,332 |
Non-Compete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Cost | 100 | 100 |
Intangible Assets Accumulated Amortization | 28 | 13 |
Finite-Lived Intangible Assets, Net Value | $ 72 | $ 87 |
Note 2. Recent Accounting Pro_7
Note 2. Recent Accounting Pronouncements and Supplemental Information - Components of Non-operating income (expense), net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Gain (Loss) on SERP Investments | $ 1,032 | $ (8) | $ 306 | $ 756 |
Other | (62) | (197) | (235) | (412) |
Non-operating income (expense), net | $ 970 | $ (205) | $ 71 | $ 344 |
Note 3. Acquisition Acquisition
Note 3. Acquisition Acquisition Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | |
Adjustments to purchase price allocation | $ 200 | |||||
Net Sales | $ 177,369 | $ 160,897 | 572,500 | $ 514,871 | ||
Net Loss | 7,954 | $ 5,850 | 28,235 | $ 24,185 | ||
Contingent earn-out liability | 200 | 200 | ||||
David Edward | ||||||
Adjustments to purchase price allocation | 143 | |||||
Payments to Acquire Businesses, Gross | 4,900 | |||||
Net Sales | 3,400 | 6,000 | ||||
Net Loss | 600 | 1,000 | ||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | 0 | $ 500 | ||||
Goodwill tax amortization period | 15 years | |||||
D'style | ||||||
Contingent earn-out liability | $ 200 | $ 200 | $ 700 | $ 1,100 |
Note 3. Acquisition Schedule of
Note 3. Acquisition Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Oct. 26, 2018 | Jun. 30, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 11,153 | $ 8,824 | |
David Edward | |||
Business Acquisition [Line Items] | |||
Receivables | 330 | ||
Inventories | 2,768 | ||
Prepaid expenses and other current assets | 284 | ||
Net property and equipment | 934 | ||
Goodwill | 2,103 | $ 1,960 | $ 0 |
Business Combination, Assets | 6,419 | ||
Accounts payable | 1,447 | ||
Accrued expenses | 122 | ||
Business Combination, Liabilities | 1,569 | ||
Business Combination, Net Assets and Liabilities | $ 4,850 |
Note 3. Acquisition Schedule _2
Note 3. Acquisition Schedule of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2019 | Oct. 26, 2018 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | |||
Adjustments to purchase price allocation | $ 200 | ||
Goodwill | 11,153 | $ 8,824 | |
David Edward | |||
Business Acquisition [Line Items] | |||
Adjustments to purchase price allocation | 143 | ||
Goodwill | $ 2,103 | $ 1,960 | $ 0 |
Note 4. Revenue - Impact to Con
Note 4. Revenue - Impact to Condensed Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Net Sales | $ 177,369 | $ 160,897 | $ 572,500 | $ 514,871 |
Cost of Sales | 120,808 | 110,933 | 385,077 | 343,480 |
Gross Profit | 56,561 | 49,964 | 187,423 | 171,391 |
Selling and Administrative Expenses | 47,508 | 41,454 | 151,178 | 134,919 |
Operating Income | $ 9,053 | $ 8,510 | $ 36,245 | $ 36,472 |
Operating Income as of Percent of Net Sales | 5.30% | 7.10% | ||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Net Sales | $ 157,897 | $ 501,088 | ||
Cost of Sales | 110,142 | 339,808 | ||
Gross Profit | 47,755 | 161,280 | ||
Selling and Administrative Expenses | 39,245 | 124,808 | ||
Operating Income | $ 8,510 | $ 36,472 | ||
Operating Income as of Percent of Net Sales | 5.40% | 7.30% | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Net Sales | $ 3,000 | $ 13,783 | ||
Cost of Sales | 791 | 3,672 | ||
Gross Profit | 2,209 | 10,111 | ||
Selling and Administrative Expenses | 2,209 | 10,111 | ||
Operating Income | $ 0 | $ 0 |
Note 4. Revenue - Impact to C_2
Note 4. Revenue - Impact to Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Receivables, net of allowances of $1,352 and $1,317, respectively | $ 55,722 | $ 62,276 |
Accrued expenses | $ 45,818 | 50,586 |
Calculated under Revenue Guidance in Effect before Topic 606 | ||
Receivables, net of allowances of $1,352 and $1,317, respectively | 60,984 | |
Accrued expenses | 49,294 | |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||
Receivables, net of allowances of $1,352 and $1,317, respectively | 1,292 | |
Accrued expenses | $ 1,292 |
Note 4. Revenue - Disaggregatio
Note 4. Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Net Sales | $ 177,369 | $ 160,897 | $ 572,500 | $ 514,871 |
Commercial and Industrial Sector | ||||
Net Sales | 50,900 | 50,200 | 171,100 | 151,800 |
Education Sector | ||||
Net Sales | 13,500 | 12,700 | 66,200 | 61,800 |
Financial Services Sector | ||||
Net Sales | 16,900 | 17,800 | 53,200 | 48,900 |
Government Sector | ||||
Net Sales | 19,100 | 17,600 | 55,000 | 68,900 |
Healthcare Sector | ||||
Net Sales | 28,700 | 19,500 | 81,600 | 63,700 |
Hospitality Sector | ||||
Net Sales | $ 48,300 | $ 43,100 | $ 145,400 | $ 119,800 |
Note 4. Revenue - Changes in Cu
Note 4. Revenue - Changes in Customer Deposits (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2019USD ($) | |
Customer Deposits at start of period | $ 21,253 |
Increases due to deposits received, net of other adjustments | 92,000 |
Revenue recognized | (85,700) |
Customer Deposits at end of period | $ 27,624 |
Note 4. Revenue - Revenue Textu
Note 4. Revenue - Revenue Textuals (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Jul. 01, 2016 | |
Accounts Receivable, Customary Payment Terms | 30 days | |||||
Impairment losses (income) on Doubtful Accounts | $ 0 | $ (100,000) | $ 400,000 | $ (100,000) | ||
Contract with Customer, Liability, Revenue Recognized | 0 | 1,000,000 | $ 20,900,000 | 20,200,000 | ||
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true/false] | true | |||||
Revenue, Practical Expedient, Financing Component [true/false] | true | |||||
Prepaid Expenses and Other Current Assets | ||||||
Capitalized Contract Cost, Net | 200,000 | $ 200,000 | $ 300,000 | |||
Other Noncurrent Assets | ||||||
Capitalized Contract Cost, Net | 200,000 | 200,000 | $ 300,000 | |||
Selling and Administrative Expenses | ||||||
Capitalized Contract Cost, Amortization | $ 100,000 | $ 0 | $ 200,000 | $ 200,000 | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||
Retained earnings cumulative effect of adoption | $ 0 |
Note 5. Income Taxes - Textuals
Note 5. Income Taxes - Textuals (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 21, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 21.00% | ||||
Effective Income Tax Rate Reconciliation, Percent | 24.10% | 31.20% | 24.70% | 35.30% | ||
Federal Blended Rate | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 28.10% |
Note 6. Inventories - Inventory
Note 6. Inventories - Inventory Components (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Finished products | $ 24,776 | $ 23,756 |
Work-in-process | 2,764 | 1,378 |
Raw materials | 33,910 | 29,158 |
Total FIFO inventory | 61,450 | 54,292 |
LIFO reserve, net | (16,310) | (14,783) |
Total inventory | $ 45,140 | $ 39,509 |
Note 7. Accumulated Other Com_3
Note 7. Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income at beginning of period | $ 1,861 | $ 1,327 | $ 1,816 | $ 1,115 |
Other Comprehensive Income (Loss) before Reclassifications | 94 | 53 | 273 | 353 |
Reclassification to (earnings) loss | (74) | (38) | (208) | (126) |
Net current-period other comprehensive income (loss) | 20 | 15 | 65 | 227 |
Accumulated Other Comprehensive Income at end of period | 1,881 | 1,342 | 1,881 | 1,342 |
Unrealized Investment Gain (Loss) | ||||
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income at beginning of period | (20) | (37) | (31) | (21) |
Other Comprehensive Income (Loss) before Reclassifications | 20 | (4) | 31 | (22) |
Reclassification to (earnings) loss | 0 | 1 | 0 | 3 |
Net current-period other comprehensive income (loss) | 20 | (3) | 31 | (19) |
Accumulated Other Comprehensive Income at end of period | 0 | (40) | 0 | (40) |
Postemployment Benefits, Net Actuarial Gain (Loss) | ||||
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income at beginning of period | 1,881 | 1,364 | 1,854 | 1,136 |
Other Comprehensive Income (Loss) before Reclassifications | 74 | 57 | 251 | 375 |
Reclassification to (earnings) loss | (74) | (39) | (224) | (129) |
Net current-period other comprehensive income (loss) | 0 | 18 | 27 | 246 |
Accumulated Other Comprehensive Income at end of period | 1,881 | 1,382 | 1,881 | 1,382 |
Derivative Gain (Loss) | ||||
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income at beginning of period | 0 | 0 | (7) | 0 |
Other Comprehensive Income (Loss) before Reclassifications | 0 | 0 | (9) | 0 |
Reclassification to (earnings) loss | 0 | 0 | 16 | 0 |
Net current-period other comprehensive income (loss) | 0 | 0 | 7 | 0 |
Accumulated Other Comprehensive Income at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Note 7. Accumulated Other Com_4
Note 7. Accumulated Other Comprehensive Income - Reclassifications from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Postemployment Benefits, Amortization of Actuarial Gain | $ 100 | $ 58 | $ 302 | $ 191 |
Total Reclassification for the Period from AOCI | (74) | (38) | (208) | (126) |
Cost of Sales | ||||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Postemployment Benefits, Amortization of Actuarial Gain | 0 | 37 | 0 | 124 |
Selling and Administrative Expenses | ||||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Postemployment Benefits, Amortization of Actuarial Gain | 0 | 21 | 0 | 67 |
Non-operating income (expense), net | ||||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Realized Investment Gain (Loss) on available-for-sale securities | 0 | (1) | 0 | (4) |
Postemployment Benefits, Amortization of Actuarial Gain | 100 | 0 | 302 | 0 |
Derivative Gain (Loss) | 0 | 0 | (21) | 0 |
Benefit (Provision) for Income Taxes | ||||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Realized Investment Gain (Loss) on available-for-sale securities | 0 | 0 | 0 | 1 |
Postemployment Benefits, Amortization of Actuarial Gain | (26) | (19) | (78) | (62) |
Derivative Gain (Loss) | 0 | 0 | 5 | 0 |
Net Income | ||||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Realized Investment Gain (Loss) on available-for-sale securities | 0 | (1) | 0 | (3) |
Postemployment Benefits, Amortization of Actuarial Gain | 74 | 39 | 224 | 129 |
Derivative Gain (Loss) | 0 | 0 | (16) | 0 |
Total Reclassification for the Period from AOCI | $ 74 | $ 38 | $ 208 | $ 126 |
Note 8. Commitments and Conti_4
Note 8. Commitments and Contingent Liabilities - Commitments and Contingent Liabilities Textuals (Details) - Financial Standby Letter of Credit | Mar. 31, 2019USD ($) |
Guarantor Obligations | |
Letters of Credit, Amount | $ 1,500,000 |
Loss Contingency Accrual, at Carrying Value | $ 0 |
Note 8. Commitments and Conti_5
Note 8. Commitments and Contingent Liabilities - Product Warranty (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Product Warranty Liability at the beginning of the period | $ 2,294 | $ 1,992 |
Additions to warranty accrual (including changes in estimates) | 420 | 1,043 |
Settlements made (in cash or in kind) | (797) | (773) |
Product Warranty Liability at the end of the period | $ 1,917 | $ 2,262 |
Note 9. Earnings Per Share Earn
Note 9. Earnings Per Share Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 7,954 | $ 5,850 | $ 28,235 | $ 24,185 |
Average Number of Shares Outstanding - Basic | 36,712 | 37,259 | 36,871 | 37,388 |
Dilutive Effect of Average Outstanding Compensation Awards | 197 | 280 | 389 | 325 |
Average Number of Shares Outstanding - Diluted | 36,909 | 37,539 | 37,260 | 37,713 |
Basic Earnings Per Share | $ 0.22 | $ 0.16 | $ 0.77 | $ 0.65 |
Diluted Earnings Per Share | $ 0.22 | $ 0.16 | $ 0.76 | $ 0.64 |
Note 10. Fair Value - Textuals
Note 10. Fair Value - Textuals (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | Jun. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value, Transfers Between Levels, Amount | $ 0 | $ 0 | ||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 | ||
Investment in privately held company | 2,000,000 | 2,000,000 | ||
Derivative Asset, Fair Value, Gross Asset | 1,500,000 | 1,500,000 | $ 1,500,000 | |
Fair Value, Purchases of Level 3 Assets | 0 | |||
Fair Value, Sales of Level 3 Assets | 0 | |||
Contingent earn-out liability | 200,000 | 200,000 | ||
Payment of earnout liability | $ 400,000 | |||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Contingent earn-out liability | 156,000 | 156,000 | 1,056,000 | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Contingent earn-out liability | 0 | 0 | 0 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Contingent earn-out liability | 0 | 0 | 0 | |
Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Equity securities not readily marketable | 500,000 | 500,000 | ||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Contingent earn-out liability | 156,000 | 156,000 | 1,056,000 | |
Warrant | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Derivative Asset, Fair Value, Gross Asset | 1,500,000 | 1,500,000 | 1,500,000 | |
Warrant | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | 0 | |
Warrant | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | 0 | |
Warrant | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Derivative Asset, Fair Value, Gross Asset | 1,500,000 | 1,500,000 | 1,500,000 | |
Not Designated as Hedging Instrument | Other Assets | Warrant | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Derivative Asset, Fair Value, Gross Asset | 1,500,000 | 1,500,000 | 1,500,000 | |
D'style | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Contingent earn-out liability | 200,000 | $ 700,000 | $ 200,000 | $ 1,100,000 |
Selling and Administrative Expenses | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair value adjustment of earnout liability | $ 300,000 |
Note 10. Fair Value - Recurring
Note 10. Fair Value - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | $ 12,505 | $ 12,114 |
Derivatives: Stock Warrants | 1,500 | 1,500 |
Derivatives: Foreign exchange contracts | 0 | 10 |
Contingent earn-out liability | 200 | |
Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 102,835 | 98,546 |
Contingent earn-out liability | 156 | 1,056 |
Total liabilities at fair value | 156 | 1,066 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 34,459 | 36,521 |
Contingent earn-out liability | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 66,876 | 60,525 |
Contingent earn-out liability | 0 | 0 |
Total liabilities at fair value | 0 | 10 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 1,500 | 1,500 |
Contingent earn-out liability | 156 | 1,056 |
Total liabilities at fair value | 156 | 1,056 |
Foreign Exchange Contract | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Derivatives: Foreign exchange contracts | 10 | |
Foreign Exchange Contract | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Derivatives: Foreign exchange contracts | 0 | |
Foreign Exchange Contract | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Derivatives: Foreign exchange contracts | 10 | |
Foreign Exchange Contract | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Derivatives: Foreign exchange contracts | 0 | |
Warrant | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Derivatives: Stock Warrants | 1,500 | 1,500 |
Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Derivatives: Stock Warrants | 0 | 0 |
Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Derivatives: Stock Warrants | 0 | 0 |
Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Derivatives: Stock Warrants | 1,500 | 1,500 |
Money Market Funds | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 21,954 | 24,407 |
Money Market Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 21,954 | 24,407 |
Money Market Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 0 | 0 |
Money Market Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 0 | 0 |
Commercial Paper | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 25,055 | 25,918 |
Commercial Paper | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 0 | 0 |
Commercial Paper | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 25,055 | 25,918 |
Commercial Paper | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 0 | 0 |
Certificates of Deposit | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 13,637 | 11,850 |
Certificates of Deposit | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 13,637 | 11,850 |
Certificates of Deposit | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 0 | 0 |
Certificates of Deposit | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 13,637 | 11,850 |
Certificates of Deposit | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 0 | 0 |
Municipal Bonds | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 2,445 | 16,508 |
Municipal Bonds | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 2,445 | 16,508 |
Municipal Bonds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 0 | 0 |
Municipal Bonds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 2,445 | 16,508 |
Municipal Bonds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 0 | 0 |
US Treasury and Federal Agencies | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 25,739 | 6,249 |
US Treasury and Federal Agencies | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 25,739 | 6,249 |
US Treasury and Federal Agencies | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 0 | 0 |
US Treasury and Federal Agencies | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 25,739 | 6,249 |
US Treasury and Federal Agencies | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 0 | 0 |
Mutual Fund | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | 12,505 | 12,114 |
Mutual Fund | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | 12,505 | 12,114 |
Mutual Fund | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | 0 | 0 |
Mutual Fund | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | $ 0 | $ 0 |
Note 11. Investments - Schedule
Note 11. Investments - Schedule of Contractual Maturities on Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Certificates of Deposit | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | $ 9,172 | |
Available-for-sale Securities, Debt Maturities, Rolling Year Two | 4,465 | |
Available-for-sale Securities | 13,637 | $ 11,850 |
Municipal Bonds | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 2,445 | |
Available-for-sale Securities, Debt Maturities, Rolling Year Two | 0 | |
Available-for-sale Securities | 2,445 | 16,508 |
US Treasury and Federal Agency Securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 23,335 | |
Available-for-sale Securities, Debt Maturities, Rolling Year Two | 2,404 | |
Available-for-sale Securities | $ 25,739 | $ 6,249 |
Note 11. Investments - Unrealiz
Note 11. Investments - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 13,637 | $ 11,850 |
Available-for-sale Securities, Unrealized holding gains | 0 | 0 |
Available-for-sale Securities, Unrealized holding losses | 0 | 0 |
Fair Value, Available-for-sale Securities | 13,637 | 11,850 |
Municipal Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 2,446 | 16,532 |
Available-for-sale Securities, Unrealized holding gains | 0 | 0 |
Available-for-sale Securities, Unrealized holding losses | (1) | (24) |
Fair Value, Available-for-sale Securities | 2,445 | 16,508 |
US Treasury and Federal Agency Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 25,737 | 6,266 |
Available-for-sale Securities, Unrealized holding gains | 7 | 0 |
Available-for-sale Securities, Unrealized holding losses | (5) | (17) |
Fair Value, Available-for-sale Securities | $ 25,739 | $ 6,249 |
Note 11. Investments - Suppleme
Note 11. Investments - Supplemental Employee Retirement Investments Textuals (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Trading Securities and Other Trading Assets | ||
Trading Securities, Change in net unrealized holding gains (losses) | $ (104) | $ 450 |
Note 11. Investments - Supple_2
Note 11. Investments - Supplemental Employee Retirement Plan Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | $ 12,505 | $ 12,114 |
SERP obligation | 12,505 | 12,114 |
Short-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | 3,409 | 3,868 |
SERP obligation | 3,409 | 3,868 |
Other Long-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | 9,096 | 8,246 |
SERP obligation | $ 9,096 | $ 8,246 |
Note 11. Investments - Investme
Note 11. Investments - Investments - Equity securities without readily determinable fair value Textuals (Details) $ in Millions | Mar. 31, 2019USD ($) |
Investment in privately held company | $ 2 |
Other Assets | Preferred Stock | |
Equity securities without readily determinable fair value | $ 0.5 |
Note 12. Derivative Instrumen_3
Note 12. Derivative Instruments - Textuals (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Derivative [Line Items] | ||
Investment in privately held company | $ 2,000 | |
Derivative Asset, Fair Value, Gross Asset | 1,500 | $ 1,500 |
Fair Value, Measurements, Recurring | Warrant | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,500 | 1,500 |
Fair Value, Measurements, Recurring | Not Designated as Hedging Instrument | Other Assets | Warrant | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,500 | $ 1,500 |
Note 12. Derivative Instrumen_4
Note 12. Derivative Instruments - Fair Values of Derivative Instruments on the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,500 | $ 1,500 |
Derivative Liability, Fair Value, Gross Liability | 0 | 10 |
Foreign Exchange Contract | Designated as Hedging Instrument | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 10 |
Fair Value, Measurements, Recurring | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 10 | |
Fair Value, Measurements, Recurring | Warrant | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,500 | 1,500 |
Fair Value, Measurements, Recurring | Warrant | Not Designated as Hedging Instrument | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,500 | $ 1,500 |
Note 13. Postemployment Benef_3
Note 13. Postemployment Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Components of Net Periodic Benefit Cost (before tax): | ||||
Service cost | $ 126 | $ 132 | $ 379 | $ 398 |
Interest cost | 23 | 20 | 70 | 62 |
Amortization of actuarial income | (100) | (58) | (302) | (191) |
Net periodic benefit cost | $ 49 | $ 94 | $ 147 | $ 269 |
Note 14. Stock Compensation - S
Note 14. Stock Compensation - Stock Compensation Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Stock based Compensation Expense | $ 1.1 | $ 0.8 | $ 4.7 | $ 3.3 | ||
Tax benefit for stock compensation arrangements | $ 0.3 | $ 0.3 | $ 1.2 | 1.7 | ||
Excess tax benefits from stock award vesting | $ 0.6 | |||||
Minimum | ||||||
Annual Performance Shares, Earned Percentage | 0.00% | 0.00% | ||||
Relative Total Shareholder Return, Earned Percentage | 0.00% | 0.00% | ||||
Maximum | ||||||
Annual Performance Shares, Earned Percentage | 200.00% | 200.00% | ||||
Relative Total Shareholder Return, Earned Percentage | 200.00% | 200.00% | ||||
Annual Performance Shares | ||||||
Stock Compensation, Shares Awarded | 234 | 23,889 | 34,176 | |||
Annual Performance Shares | Maximum | ||||||
Stock Compensation, Shares Awarded | 116,598 | |||||
Relative Total Shareholder Return | ||||||
Stock Compensation, Shares Awarded | 60,754 | 9,703 | ||||
Relative Total Shareholder Return | Maximum | ||||||
Stock Compensation, Shares Awarded | 140,914 |
Note 14. Stock Compensation -_2
Note 14. Stock Compensation - Stock Compensation Awards (Details) - $ / shares | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Annual Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Shares Awarded | 234 | 23,889 | 34,176 |
Stock Compensation, Grant Date Fair Value | $ 14.93 | $ 16.12 | |
Relative Total Shareholder Return | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Shares Awarded | 60,754 | 9,703 | |
Stock Compensation, Grant Date Fair Value | $ 21.16 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Shares Awarded | 9,291 | 138,844 | 170,686 |
Stock Compensation, Grant Date Fair Value | $ 15.24 | ||
Unrestricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Shares Awarded | 10,498 | 9,522 | 12,318 |
Stock Compensation, Grant Date Fair Value | $ 14.44 | $ 16.39 | |
Minimum | Annual Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Grant Date Fair Value | $ 16.15 | ||
Minimum | Relative Total Shareholder Return | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Grant Date Fair Value | 21.46 | ||
Minimum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Grant Date Fair Value | 16.46 | 15.99 | |
Minimum | Unrestricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Grant Date Fair Value | 16.48 | ||
Maximum | Annual Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Shares Awarded | 116,598 | ||
Stock Compensation, Grant Date Fair Value | 16.17 | ||
Maximum | Relative Total Shareholder Return | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Shares Awarded | 140,914 | ||
Stock Compensation, Grant Date Fair Value | 21.49 | ||
Maximum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Grant Date Fair Value | 16.48 | $ 16.39 | |
Maximum | Unrestricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Grant Date Fair Value | $ 16.49 |
Note 15. Variable Interest En_2
Note 15. Variable Interest Entities -Textuals (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2018 | |
Variable Interest Entity | ||
Financing Receivable, Allowance for Credit Losses | $ 261 | $ 233 |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | ||
Variable Interest Entity | ||
Variable Interest Entity, Obligation to Provide Additional Funding, Amount | 0 | |
Independent Dealership Financing | Notes Receivable | ||
Variable Interest Entity | ||
Financing Receivable, Allowance for Credit Losses | 88 | 50 |
Other Assets | Cost-method Investments | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 500 | 500 |
Other Assets | Stock Warrant | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 1,500 | 1,500 |
Receivables and Other Assets | Independent Dealership Financing | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | Notes Receivable | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 1,000 | 600 |
Financing Receivable, Allowance for Credit Losses | $ 100 | $ 100 |
Note 16. Credit Quality and A_3
Note 16. Credit Quality and Allowance for Credit Losses of Notes Receivable - Textuals (Details) - USD ($) | Mar. 31, 2019 | Jun. 30, 2018 |
Notes Receivable | ||
Notes Receivable | ||
Financing Receivable, Recorded Investment, Past Due | $ 0 | $ 0 |
Note 16. Credit Quality and A_4
Note 16. Credit Quality and Allowance for Credit Losses of Notes Receivable - Credit Quality and Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Notes Receivable | ||
Notes Receivable, Unpaid Balance | $ 1,272 | $ 849 |
Notes Receivable, Related Allowance | 261 | 233 |
Notes Receivable, Net of Allowance | 1,011 | 616 |
Notes Receivable | Independent Dealership Financing | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 1,099 | 666 |
Notes Receivable, Related Allowance | 88 | 50 |
Notes Receivable, Net of Allowance | 1,011 | 616 |
Notes Receivable | Other Notes Receivable | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 173 | 183 |
Notes Receivable, Related Allowance | 173 | 183 |
Notes Receivable, Net of Allowance | $ 0 | $ 0 |