Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Aug. 19, 2019 | Dec. 31, 2018 | |
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-K | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | Q4 | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float - Class B | $ 511,200,000 | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Class A Common Stock | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 248,938 | ||
Class B Common Stock | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 36,687,824 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 73,196 | $ 52,663 |
Short-term investments | 33,071 | 34,607 |
Receivables, net of allowances of $1,321 and $1,317, respectively | 63,120 | 62,276 |
Inventories | 46,812 | 39,509 |
Prepaid expenses and other current assets | 13,105 | 18,523 |
Assets held for sale | 281 | 281 |
Total current assets | 229,585 | 207,859 |
Property and Equipment, net of accumulated depreciation of $185,865 and $180,059, respectively | 90,671 | 84,487 |
Goodwill | 11,160 | 8,824 |
Other Intangible Assets, net of accumulated amortization of $38,320 and $36,757, respectively | 12,108 | 12,607 |
Deferred Tax Assets | 8,722 | 4,916 |
Other Assets | 12,420 | 12,767 |
Total Assets | 364,666 | 331,460 |
Current Liabilities: | ||
Current maturities of long-term debt | 25 | 23 |
Accounts payable | 47,916 | 48,214 |
Customer deposits | 24,611 | 21,253 |
Dividends payable | 3,038 | 2,662 |
Accrued expenses | 57,494 | 50,586 |
Total current liabilities | 133,084 | 122,738 |
Other Liabilities: | ||
Long-term debt, less current maturities | 136 | 161 |
Other | 14,956 | 15,537 |
Total other liabilities | 15,092 | 15,698 |
Common stock-par value $0.05 per share: | ||
Additional paid-in capital | 3,570 | 1,881 |
Retained earnings | 277,391 | 249,945 |
Accumulated other comprehensive income | 1,937 | 1,816 |
Less: Treasury stock, at cost, 6,212,000 shares and 5,901,000 shares, respectively | (68,559) | (62,769) |
Total Shareholders’ Equity | 216,490 | 193,024 |
Total Liabilities and Shareholders’ Equity | 364,666 | 331,460 |
Class A Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | 12 | 13 |
Class B Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | $ 2,139 | $ 2,138 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parentheticals - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
ASSETS | ||
Accounts and Notes Receivable Allowances | $ 1,321 | $ 1,317 |
Property and Equipment Accumulated Depreciation | 185,865 | 180,059 |
Other Intangible Assets Accumulated Amortization | $ 38,320 | $ 36,757 |
Class A Common Stock | ||
Shareholders' 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 | 251,000 | 264,000 |
Class B Common Stock | ||
Shareholders' 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 | 42,773,000 | 42,761,000 |
Treasury Stock, Shares | 6,212,000 | 5,901,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Sales | $ 768,070 | $ 704,554 | $ 692,967 |
Cost of Sales | 513,518 | 468,923 | 455,106 |
Gross Profit | 254,552 | 235,631 | 237,861 |
Selling and Administrative Expenses | 204,140 | 184,568 | 183,030 |
Restructuring (Gain) Expense | 937 | 0 | (1,832) |
Operating Income | 49,475 | 51,063 | 56,663 |
Other Income (Expense): | |||
Interest income | 1,931 | 1,057 | 536 |
Interest expense | (174) | (221) | (37) |
Non-operating income | 978 | 953 | 1,276 |
Non-operating expense | (540) | (527) | (420) |
Other income (expense), net | 2,195 | 1,262 | 1,355 |
Income Before Taxes on Income | 51,670 | 52,325 | 58,018 |
Provision for Income Taxes | 12,326 | 17,886 | 20,512 |
Net Income | $ 39,344 | $ 34,439 | $ 37,506 |
Earnings Per Share of Common Stock: | |||
Basic Earnings Per Share | $ 1.07 | $ 0.92 | $ 1 |
Diluted Earnings Per Share | $ 1.06 | $ 0.92 | $ 0.99 |
Class A and B Common Stock: | |||
Average Number of Shares Outstanding - Basic | 36,842 | 37,314 | 37,334 |
Average Number of Shares Outstanding - Diluted | 37,064 | 37,494 | 37,833 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income | $ 39,344 | $ 34,439 | $ 37,506 |
Other comprehensive income (loss): | |||
Available-for-sale securities, Pre-tax | 73 | (11) | (34) |
Available-for-sale securities, Tax | (19) | 3 | 13 |
Available-for-sale securities, Net of Tax | 54 | (8) | (21) |
Postemployment severance actuarial change, Pre-tax | 484 | 895 | 186 |
Postemployment severance actuarial change, Tax | (124) | (296) | (72) |
Postemployment severance actuarial change, Net of Tax | 360 | 599 | 114 |
Derivative gain (loss), Pre-tax | (11) | (10) | 0 |
Derivative gain (loss), Tax | 2 | 3 | 0 |
Derivative gain (loss), Net of tax | (9) | (7) | 0 |
Reclassification to (earnings) loss: | |||
Available-for-sale securities, Pre-tax | 0 | 4 | 0 |
Available-for-sale securities, Tax | 0 | (1) | 0 |
Available-for-sale securities, Net of Tax | 0 | 3 | 0 |
Amortization of actuarial change, Pre-tax | (404) | (260) | (473) |
Amortization of actuarial change, Tax | 104 | 84 | 184 |
Amortization of actuarial change, Net of Tax | (300) | (176) | (289) |
Derivatives, Pre-tax | 21 | 0 | 0 |
Derivatives, Tax | (5) | 0 | 0 |
Derivatives, Net of Tax | 16 | 0 | 0 |
Other comprehensive income (loss), Pre-tax | 163 | 618 | (321) |
Other comprehensive income (loss), Tax | (42) | (207) | 125 |
Other comprehensive income (loss), Net of Tax | 121 | 411 | (196) |
Total comprehensive income | $ 39,465 | $ 34,850 | $ 37,310 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Cash Flows From Operating Activities: | ||||
Net income | $ 39,344 | $ 34,439 | $ 37,506 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 14,803 | 13,701 | 14,482 | |
Amortization | 1,777 | 1,769 | 1,071 | |
Gain on sales of assets | (1,117) | (2,050) | (3,148) | |
Asset Impairment Charges | 0 | 0 | 241 | |
Deferred income tax and other deferred charges | (3,807) | 9,082 | (1,580) | |
Stock-based compensation | 6,617 | 4,179 | 6,303 | |
Other, net | (1,456) | 984 | (125) | |
Change in operating assets and liabilities: | ||||
Receivables | (338) | (5,746) | (4,778) | |
Inventories | (4,505) | 8 | 2,876 | |
Prepaid expenses and other current assets | 4,894 | (6,741) | 2,694 | |
Accounts payable | (1,298) | 3,062 | 1,998 | |
Customer deposits | 2,480 | (2,347) | 1,891 | |
Accrued expenses | 7,573 | (3,474) | 5,413 | |
Net cash provided by operating activities | 64,967 | 46,866 | 64,844 | |
Cash Flows From Investing Activities: | ||||
Capital expenditures | (19,693) | (21,575) | (11,751) | |
Proceeds from sales of assets | 1,291 | 5,817 | 13,200 | |
Cash paid for acquisitions | (4,288) | (18,201) | 0 | |
Purchases of capitalized software | (1,278) | (724) | (982) | |
Purchases of available-for-sale securities | (40,778) | (42,497) | (42,059) | |
Maturities of available-for-sale securities | 42,406 | 42,839 | 5,941 | |
Other, net | 154 | (423) | (564) | |
Net cash used for investing activities | (22,186) | (34,764) | (36,215) | |
Cash Flows From Financing Activities: | ||||
Change in capital leases and long-term debt | (23) | (27) | (30) | |
Proceeds from sale-leaseback financing obligation | 0 | 0 | 3,752 | |
Dividends paid to shareholders | (11,435) | (10,084) | (8,783) | |
Repurchases of Common Stock | (9,132) | (8,936) | (6,665) | |
Repurchase of employee shares for tax withholding | (1,675) | (2,822) | (1,636) | |
Net cash used for financing activities | (22,265) | (21,869) | (13,362) | |
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash (1) | [1] | 20,516 | (9,767) | 15,267 |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year (1) | [1] | 53,321 | 63,088 | 47,821 |
Cash, Cash Equivalents, and Restricted Cash at End of Year (1) | [1] | $ 73,837 | $ 53,321 | $ 63,088 |
[1] | The following table reconciles cash and cash equivalents in the balance sheets to cash, cash equivalents, and restricted cash per the statements of cash flows. 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. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows Cash Reconciliation - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash and cash equivalents | $ 73,196 | $ 52,663 | $ 62,882 | $ 47,576 | |
Restricted cash included in Other Assets | 641 | 658 | 206 | 245 | |
Total Cash, Cash Equivalents, and Restricted Cash at end of period | [1] | $ 73,837 | $ 53,321 | $ 63,088 | $ 47,821 |
[1] | The following table reconciles cash and cash equivalents in the balance sheets to cash, cash equivalents, and restricted cash per the statements of cash flows. 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. |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Class A Common StockCommon Stock | Class B Common StockCommon Stock |
Shareholders' Equity at Jun. 30, 2016 | $ 149,868 | $ 2,917 | $ 205,104 | $ 1,311 | $ (61,615) | $ 14 | $ 2,137 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income | 37,506 | 37,506 | |||||
Other comprehensive income (loss) | (196) | (196) | |||||
Issuance of non-restricted stock (49,000 shares in 2017, 39,000 shares in 2018, 42,000 shares in 2019) | (1) | (1,205) | 1,204 | ||||
Conversion of Class A to Class B common stock (11,000 shares in 2017, 16,000 shares in 2018, 13,000 shares in 2019) | 0 | 0 | 0 | ||||
Compensation expense related to stock incentive plans | 6,303 | 6,303 | |||||
Performance share issuance (192,000 shares in 2017, 226,000 shares in 2018, 81,000 shares in 2019) | (1,168) | (3,096) | (2,823) | 4,751 | |||
Restricted share units issuance (61,000 shares in 2017, 58,000 shares in 2018, 106,000 shares in 2019) | (419) | (1,948) | 1,529 | ||||
Repurchase of Common Stock (516,000 shares in 2017, 536,000 shares in 2018, 567,000 shares in 2019) | (6,665) | (6,665) | |||||
Dividends declared ($0.24 per share in 2017, $0.28 per share in 2018, $0.32 per share in 2019) | (9,024) | (9,024) | |||||
Shareholders' Equity at Jun. 30, 2017 | 176,204 | 2,971 | 230,763 | 1,115 | (60,796) | 14 | 2,137 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income | 34,439 | 34,439 | |||||
Other comprehensive income (loss) | 411 | 411 | |||||
Issuance of non-restricted stock (49,000 shares in 2017, 39,000 shares in 2018, 42,000 shares in 2019) | 0 | (624) | 624 | ||||
Conversion of Class A to Class B common stock (11,000 shares in 2017, 16,000 shares in 2018, 13,000 shares in 2019) | 0 | (1) | 1 | ||||
Compensation expense related to stock incentive plans | 4,179 | 4,179 | |||||
Performance share issuance (192,000 shares in 2017, 226,000 shares in 2018, 81,000 shares in 2019) | (2,102) | (2,261) | (4,463) | 4,622 | |||
Restricted share units issuance (61,000 shares in 2017, 58,000 shares in 2018, 106,000 shares in 2019) | (341) | (1,101) | 760 | ||||
Relative total shareholder return performance units issuance (38,000 shares in 2018, 27,000 shares in 2019) | (326) | (1,283) | 957 | ||||
Reclassification of change in enacted income tax rate to retained earnings | 0 | (290) | 290 | ||||
Repurchase of Common Stock (516,000 shares in 2017, 536,000 shares in 2018, 567,000 shares in 2019) | (8,936) | (8,936) | |||||
Dividends declared ($0.24 per share in 2017, $0.28 per share in 2018, $0.32 per share in 2019) | (10,504) | (10,504) | |||||
Shareholders' Equity at Jun. 30, 2018 | 193,024 | 1,881 | 249,945 | 1,816 | (62,769) | 13 | 2,138 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income | 39,344 | 39,344 | |||||
Other comprehensive income (loss) | 121 | 121 | |||||
Issuance of non-restricted stock (49,000 shares in 2017, 39,000 shares in 2018, 42,000 shares in 2019) | (11) | (563) | 552 | ||||
Conversion of Class A to Class B common stock (11,000 shares in 2017, 16,000 shares in 2018, 13,000 shares in 2019) | 0 | (1) | 1 | ||||
Compensation expense related to stock incentive plans | 6,617 | 6,617 | |||||
Performance share issuance (192,000 shares in 2017, 226,000 shares in 2018, 81,000 shares in 2019) | (656) | (1,717) | 1,061 | ||||
Restricted share units issuance (61,000 shares in 2017, 58,000 shares in 2018, 106,000 shares in 2019) | (746) | (2,125) | 1,379 | ||||
Relative total shareholder return performance units issuance (38,000 shares in 2018, 27,000 shares in 2019) | (173) | (523) | 350 | ||||
Repurchase of Common Stock (516,000 shares in 2017, 536,000 shares in 2018, 567,000 shares in 2019) | (9,132) | (9,132) | |||||
Dividends declared ($0.24 per share in 2017, $0.28 per share in 2018, $0.32 per share in 2019) | (11,898) | (11,898) | |||||
Shareholders' Equity at Jun. 30, 2019 | $ 216,490 | $ 3,570 | $ 277,391 | $ 1,937 | $ (68,559) | $ 12 | $ 2,139 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity Parentheticals - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Issuance of non-restricted stock, Shares | 42,000 | 39,000 | 49,000 |
Conversion of Class A to Class B common stock, Shares | 13,000 | 16,000 | 11,000 |
Performance Share Issuance, Shares | 81,000 | 226,000 | 192,000 |
Restricted Share Units Issuance, Shares | 106,000 | 58,000 | 61,000 |
Repurchase of common stock, Shares | 567,000 | 536,000 | 516,000 |
Relative total shareholder return performance units issuance, Shares | 27,000 | 38,000 | 0 |
Dividends declared, Per Share | $ 0.32 | $ 0.28 | $ 0.24 |
Note 1. Summary of Significant
Note 1. Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation: The consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated in the consolidation. 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 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. Operating Segments: We sell a portfolio of furniture products and services under three predominant brands: Kimball, National, and Kimball Hospitality. We consider each of the three predominant brands to be operating segments which aggregate into one reportable segment. The brands operate within six market verticals, selling to similar types of customers. Our products and services are similar in nature and utilize similar production and distribution processes. Our three brands share similar long-term economic characteristics. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts included in the consolidated financial statements and related note disclosures. While efforts are made to assure estimates used are reasonably accurate based on management’s knowledge of current events, actual results could differ from those estimates. Revenue Recognition: Revenue 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 the 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. Shipping and handling activities are recognized as fulfillment activities and are expensed at the time revenue is recognized. We recognize sales net of applicable sales taxes and similar revenue-based taxes. We use judgment in estimating the reduction in net sales driven by customer rebate and incentive programs. Judgments primarily include expected sales levels to be achieved and the corresponding rebate and incentive amounts expected to be earned by dealers and salespersons. We also use judgment in estimating a reserve for returns and allowances which is recorded at the time of the sale, based on estimated product returns and price concessions. The reserve for returns and allowances is recorded in Accrued Expenses on the Consolidated Balance Sheets, and the expense is recorded as a reduction of Net Sales in the Consolidated Statements of Income. We perform ongoing credit evaluations of our customers and impair receivable balances by recording specific allowances for bad debts based on judgment using factors such as current trends, the length of time the receivables are past due, and historical collection experience. The allowance for accounts receivable balances that are determined likely to be uncollectible are a reduction in the Receivables line of the Consolidated Balance Sheets, and the expense is recorded in Selling and Administrative Expenses in the Consolidated Statements of Income. Cash and Cash Equivalents: Cash equivalents consist primarily of highly liquid investments with original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist of bank accounts, money market funds, and commercial paper. Bank accounts are stated at cost, which approximates fair value, and money market funds and commercial paper are stated at fair value. Short-Term Investments: Short-term investments consist primarily 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, some of which 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. All investments have maturities exceeding three months and are classified as available-for-sale securities which are recorded at fair value. 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 Shareholders’ Equity. Notes Receivable and Trade Accounts Receivable: Our notes receivable and trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. We determine on a case-by-case basis the cessation of accruing interest, the resumption of accruing interest, the method of recording payments received on nonaccrual receivables, and the delinquency status for our limited number of notes receivable. Our policy for estimating the allowance for credit losses on trade accounts receivable and notes receivable includes analysis of such items as aging, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to determine the final allowance for credit losses on the trade accounts receivable and notes receivable. Trade accounts receivable and notes receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Our limited amount of notes receivable allows management to monitor the risks, credit quality indicators, collectability, and probability of impairment on an individual basis. Adjustments to the allowance for credit losses are recorded in selling and administrative expenses. Customary terms require payment within 30 days , with terms beyond 30 days being considered extended. Inventories: Inventories are stated at the lower of cost or market value. Cost includes material, labor, and applicable manufacturing overhead. Costs associated with underutilization of capacity are expensed as incurred. The last-in, first-out (“LIFO”) method was used for approximately 93% and 92% of consolidated inventories at June 30, 2019 and June 30, 2018 , respectively. The remaining inventories were valued using the first-in, first-out (“FIFO”) method and average cost method. Inventories are adjusted for excess and obsolete inventory. Evaluation of excess inventory includes such factors as anticipated usage, inventory turnover, inventory levels, and product demand levels. Factors considered when evaluating obsolescence include the age of on-hand inventory and reduction in value due to damage, use as showroom samples, design changes, or cessation of product lines. Property, Equipment, and Depreciation: Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful life of the assets using the straight-line method for financial reporting purposes. Leasehold improvements are amortized on a straight-line basis over the shorter of the useful life of the improvement or the term of the lease. Major maintenance activities and improvements are capitalized; other maintenance, repairs, and minor renewals are expensed. Depreciation and expenses for maintenance, repairs and minor renewals are included in both the Cost of Sales line and the Selling and Administrative Expense line of the Consolidated Statements of Income. Impairment of Long-Lived Assets: We perform reviews for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment is recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. When an impairment is identified, the carrying amount of the asset is reduced to its estimated fair value. Assets to be disposed of are recorded at the lower of net book value or fair market value less cost to sell at the date management commits to a plan of disposal. 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 fiscal years 2019 and 2018, 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 goodwill and other intangible assets of $8.8 million and $10.7 million , respectively, 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 2 - Acquisitions to Consolidated Financial Statements for more information on these acquisitions. Other Intangible Assets reported on the 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: June 30, 2019 June 30, 2018 (Amounts in Thousands) Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Capitalized Software $ 39,708 $ 36,662 $ 3,046 $ 38,482 $ 35,922 $ 2,560 Product Rights — — — 162 162 — Customer Relationships 7,050 1,030 6,020 7,050 422 6,628 Trade Names 3,570 595 2,975 3,570 238 3,332 Non-Compete Agreements 100 33 67 100 13 87 Other Intangible Assets $ 50,428 $ 38,320 $ 12,108 $ 49,364 $ 36,757 $ 12,607 During fiscal years 2019 , 2018 , and 2017 , amortization expense of other intangible assets was, in thousands, $1,777 , $1,769 , and $1,071 , respectively. Amortization expense in future periods is expected to be, in thousands, $2,091 , $1,843 , $1,504 , $1,264 , and $1,108 in the five years ending June 30, 2024 , and $4,298 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 reengineering 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. Research and Development: The costs of research and development are expensed as incurred. Research and development costs were approximately, in millions, $6 , $7 , and $7 in fiscal years 2019 , 2018 , and 2017 , respectively. Advertising: Advertising costs are expensed as incurred. Advertising costs, included in selling and administrative expenses were, in millions, $4.9 , $5.8 , and $4.3 , in fiscal years 2019 , 2018 , and 2017 , respectively. Insurance and Self-insurance: We are self-insured for certain employee health benefits including medical, short-term disability, and dental. Our self-insured reserves are estimated based upon a number of factors including known claims, estimated incurred but not reported claims, and other analyses, which are based on historical information along with certain assumptions about future events. We carry medical coverage for our eligible workforce not covered by self-insured plans. Insurance benefits are not provided to retired employees. We also participate, along with other companies, in a group captive insurance company (“Captive”). The Captive insures losses related to worker's compensation, motor vehicle liability, product liability, and general liability. The Captive reinsures catastrophic losses for all participants, including Kimball International, in excess of predetermined amounts. We pay premiums to the Captive which accumulate as a prepaid deposit estimated for losses related to the above coverage. We also maintain a reserve for outstanding unpaid workers’ compensation claims, including an estimate of incurred but not reported claims. Additionally, we purchase insurance coverage for property insurance, director and officer liability insurance, umbrella coverage, and other risks. Income Taxes: Deferred income taxes are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The deferred taxes are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse. We evaluate the recoverability of deferred tax assets each quarter by assessing the likelihood of future taxable income and available tax planning strategies that could be implemented to realize our deferred tax assets. If recovery is not likely, we provide a valuation allowance based on our best estimate of future taxable income in the various taxing jurisdictions and the amount of deferred taxes ultimately realizable. Future events could change management’s assessment. We classify all deferred tax assets and liabilities as noncurrent in our consolidated balance sheets. We operate within multiple taxing jurisdictions and are subject to tax audits in these jurisdictions. These audits can involve complex uncertain tax positions, which may require an extended period of time to resolve. A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. We maintain a liability for uncertain income tax and other tax positions, including accrued interest and penalties on those positions. As tax positions are effectively settled, the tax liability is adjusted accordingly. We recognize interest and penalties related to unrecognized tax benefits in the Provision for Income Taxes line of the Consolidated Statements of Income. Concentrations of Credit Risk: Certain business and credit risks are inherent in our business. We currently have notes receivable from independent dealership financing and other miscellaneous notes receivable. At June 30, 2019 and 2018 , $1.1 million and $0.8 million , respectively, were outstanding under the notes receivable. The credit risk associated with receivables is disclosed in Note 20 - Credit Quality and Allowance for Credit Losses of Notes Receivable of Notes to Consolidated Financial Statements. Off-Balance Sheet Risk: Our off-balance sheet arrangements are limited to standby letters of credit and operating leases entered into in the normal course of business as described in Note 9 - Commitments and Contingent Liabilities of Notes to Consolidated Financial Statements. Non-operating Income and Expense: Non-operating income and expense include the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, amortization of actuarial income, foreign currency rate movements, bank charges, investment gain or loss, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain or loss on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. Foreign Currency Translation: Our foreign operations use the U.S. Dollar as their functional currency. Foreign currency assets and liabilities are remeasured into functional currencies at end-of-period exchange rates, except for nonmonetary assets and equity, which are remeasured at historical exchange rates. Revenue and expenses are remeasured at the weighted average exchange rate during the fiscal year, except for expenses related to nonmonetary assets, which are remeasured at historical exchange rates. Gains and losses from foreign currency remeasurement are reported in the Non-operating income or expense line item on the Consolidated Statements of Income. Derivative Instruments and Hedging Activities: Derivative financial instruments are recognized on the balance sheet as assets and liabilities and are measured at fair value. Changes in the fair value of derivatives are recorded each period in earnings or accumulated other comprehensive income, depending on whether a derivative is designated and effective as part of a hedge transaction, and if it is, the type of hedge transaction. Hedge accounting is utilized when a derivative is expected to be highly effective upon execution and continues to be highly effective over the duration of the hedge transaction. Hedge accounting permits gains and losses on derivative instruments to be deferred in accumulated other comprehensive income and subsequently included in earnings in the periods in which earnings are affected by the hedged item, or when the derivative is determined to be ineffective. We have used derivatives primarily for forward purchases of foreign currency to manage exposure to the variability of cash flows, primarily related to the foreign exchange rate risks inherent in forecasted transactions denominated in foreign currency. We hold a total investment of $2.0 million in a privately-held company, including $1.5 million in stock warrants purchased during fiscal year 2017. The investment in stock warrants is accounted for as a derivative instrument and is included in the Other Assets line of the Consolidated Balance Sheets. See Note 14 - Derivative Instruments of Notes to Consolidated Financial Statements for more information on derivative instruments and hedging activities. Stock-Based Compensation: As described in Note 12 - Stock Compensation Plans of Notes to Consolidated Financial Statements, we maintain a stock-based compensation plan which allows for the issuance of stock unit awards, restricted stock awards, stock options, stock appreciation rights, and other stock-based awards, each of which may include performance-based conditions, to certain employees, non-employee directors, consultants, and advisors. We recognize the cost resulting from share-based payment transactions using a fair-value-based method. The estimated fair value of outstanding performance shares and restricted share units is based on the stock price at the date of the grant. For performance shares, the price is reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding performance share awards. The estimated fair value of outstanding relative total shareholder return performance units (“RTSR”) is based on the grant date fair value of RTSR awards using a Monte Carlo simulation which includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. Stock-based compensation expense is recognized for the portion of the awards that are ultimately expected to vest. Forfeitures are recognized as they occur. 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 adoption did not have a material effect on our consolidated financial statements. In August 2018, the Financial Accounting Standards Board (“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 early adopted the guidance in our fourth quarter of fiscal year 2019. The adoption did not have a material effect on our consolidated financial statements. In June 2018, the 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 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 a modification. 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 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 impacts 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 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 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 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 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 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 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 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 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. In May 2019, the FASB amended the new standard to allow entities to elect the fair value option on certain financial instruments that were previously recorded at amortized cost. The guidance is effective for our first quarter of fiscal year 2021 with early adoption in our fiscal year 2020 permitted. We have not yet determined the effect of this guidance on our consolidated financial statements. In February 2016, the FASB issued guidance that revises the accounting for l |
Note 2. Acquisitions (Notes)
Note 2. Acquisitions (Notes) | 12 Months Ended |
Jun. 30, 2019 | |
Acquisition [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | Acquisitions David Edward Furniture, Inc. (“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 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 two existing David Edward production facilities in Baltimore, Maryland and Red Lion, Pennsylvania. The acquisition purchase price totaled $4.3 million . The purchase price has been adjusted for certain post-closing working capital adjustments. The purchase price allocation is provisional pending final valuations and purchase accounting adjustments, which were not final as of June 30, 2019. We utilized management estimates to assist in the valuation process. A summary of the preliminary purchase price allocation is as follows: Purchase Price Allocation - David Edward (Amounts in Thousands) Assets: Receivables $ 542 Inventories 2,798 Prepaid expenses and other current assets 254 Net property and equipment 934 Goodwill 2,111 $ 6,639 Liabilities: Accounts payable $ 1,326 Customer deposits 878 Accrued expenses 147 $ 2,351 $ 4,288 The operating results of this acquisition are included in our consolidated financial statements beginning on October 26, 2018. For the year ended June 30, 2019, net sales and net loss related to David Edward were $9.4 million and $1.7 million , respectively. Direct costs of the acquisition for the year ended June 30, 2019, of approximately $0.5 million , were expensed as incurred and were included on the Selling and Administrative Expenses line of our Consolidated Statements of Income. Pro forma results of operations for the David Edward acquisition have not been presented as they were not significant to the our results of operations. D’style During the second quarter of fiscal year 2018, we acquired certain assets of D’style, Inc. (“D’style”), headquartered in Chula Vista, California. This acquisition expanded our reach into hospitality public space areas and added an attractive product portfolio of solutions for the residential market through the acquired Allan Copley Designs brand. These offerings enable us to take advantage of the trend where hospitality, residential and commercial designs are merging. As part of this acquisition, we also acquired all of the capital stock of Diseños de Estilo S.A. de C.V. headquartered in Tijuana, Mexico, another member of the D’style group which manufactures exclusively for D’style, strengthening our North American manufacturing footprint and serving as a distribution channel to the Mexico and Latin America hospitality markets. The cash paid for the acquisition totaled $18.2 million . An earn-out of up to $2.2 million was contingent based upon fiscal year 2018 and 2019 D’style, Inc. operating income compared to a predetermined target for each fiscal year. An earn-out of $0.4 million was paid based on fiscal year 2018 D’style operating income, and a final earn-out payment of $0.4 million is accrued and will be paid based on fiscal year 2019 D’style operating income. A summary of the purchase price allocation is as follows: Purchase Price Allocation - D’style (Amounts in Thousands) Assets: Receivables $ 1,242 Inventories 1,455 Prepaid expenses and other current assets 1,120 Net property and equipment 184 Goodwill 9,049 Other intangible assets 10,720 Deferred tax assets 302 $ 24,072 Liabilities: Accounts payable $ 774 Customer deposits 3,084 Accrued expenses 333 $ 4,191 $ 19,881 Consideration (Amounts in Thousands) Cash $ 18,201 Contingent earn-out — fair value at acquisition date 1,680 Fair value of total consideration $ 19,881 As of the acquisition date the fair value of the earn-out was $1.7 million . At June 30, 2018, the fair value of the contingent earn-out liability was adjusted to $1.1 million , resulting in a $0.6 million pre-tax gain, recognized as a $0.8 million pre-tax gain included in Selling and Administrative Expenses, offset in part by $0.2 million of Interest Expense attributable to an adjustment of the contingent earn-out liability. At June 30, 2019, the fair value of the contingent earn-out liability was adjusted to $0.4 million due to a payment of $0.4 million and an adjustment of $0.3 million of pre-tax income within Selling and Administrative Expenses which was partially offset by Interest Expense. The operating results of this acquisition are included in our consolidated financial statements beginning on November 6, 2017. For the year ended June 30, 2019, net sales and net income related to D’style were $20.2 million and $0.7 million , respectively. For the year ended June 30, 2018, net sales and net income related to D’style were $13.0 million and $0.8 million , respectively. Direct costs of the acquisition for the year ended June 30, 2018, of approximately $0.8 million , were expensed as incurred and were included on the Selling and Administrative Expenses line of our Consolidated Statements of Income. Pro forma results of operations for the D’style acquisition have not been presented as they were not significant to the our results of operations. Goodwill Goodwill resulting from both the David Edward and D’style acquisitions is primarily attributable to the anticipated revenue and supply chain synergies expected from the operations of the combined companies. For tax purposes, the goodwill is tax deductible over 15 years , except for an immaterial portion of the D’style acquisition which is not deductible for tax purposes. See Note 1 - Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements for more information on goodwill. The following summarizes our goodwill activity: Goodwill (Amounts in Thousands) Goodwill - June 30, 2017 $ — Goodwill - D’style, at acquisition date 8,559 Adjustments to purchase price allocation - D’style 265 Goodwill - June 30, 2018 $ 8,824 Goodwill - David Edward, at acquisition date 1,960 Adjustments to purchase price allocation - David Edward 151 Adjustments to purchase price allocation - D’style 225 Goodwill - June 30, 2019 $ 11,160 |
Note 3. Restructuring Expense
Note 3. Restructuring Expense | 12 Months Ended |
Jun. 30, 2019 | |
Restructuring Expense [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring During fiscal year 2019, we recognized $0.9 million of pre-tax restructuring expense. We had no restructuring activity in fiscal year 2018 and recognized a pre-tax restructuring gain of $1.8 million in fiscal year 2017 which included a gain on the sale of the Post Falls facility. We utilized available market prices and management estimates to determine the fair value of impaired fixed assets. Restructuring is included in the Restructuring (Gain) Expense line item on our Consolidated Statements of Income. Transformation Restructuring Plan: In June 2019, we announced a transformation restructuring plan that is expected to optimize resources for future growth, improve efficiency, and build capabilities across our organization. We believe the transformation restructuring plan will establish a more cost-efficient structure to better align our operations with our long-term strategic goals. The transformation restructuring plan includes the following: • Our overall manufacturing facility footprint is being reviewed to reduce excess capacity and gain efficiencies. We plan to exit a leased seating manufacturing facility in Martinsville, Virginia in the second half of fiscal year 2020 and are evaluating our production capabilities and capacity across our organization to identify additional opportunities. • The creation of center-led functions for finance, human resources, information technology and legal functions is expected to result in the standardization of processes and the elimination of duplication. In addition, we are centralizing our supply chain efforts to maximize supplier value and plan to drive more efficient practices and operations within our logistics function. • Kimball brand selling resources are being reallocated to higher-growth markets. We also plan to exit four leased furniture showrooms across our brands during fiscal year 2020. The efforts are expected to generate annualized pre-tax savings of approximately $10.0 million when the transformation restructuring plan is fully implemented. We estimate that pre-tax restructuring charges incurred through the end of fiscal year 2020 will be approximately $8.0 million to $9.0 million . The restructuring charges are expected to consist of approximately $3.5 million to $3.8 million for severance and other employee-related costs, $2.0 million to $2.5 million for facility exit and other costs, and $2.5 million to $2.7 million for lease asset impairment. Approximately 65% of the total cost estimate is expected to be cash expense. A summary of the charges recorded in connection with the fiscal year 2019 Transformation Restructuring Plan is as follows: Year Ended (Amounts in Thousands) June 30, 2019 Cash-related restructuring charges: Severance and other employee related costs $ 663 Other cash charges 203 Total cash-related restructuring charges $ 866 Non-cash charges: Transition stock compensation 71 Total non-cash charges $ 71 Total charges $ 937 A summary of the current period activity in accrued restructuring related to the fiscal year 2019 Transformation Restructuring Plan is as follows: (Amounts in Thousands) Severance and other employee related costs Other costs Total Balance at June 30, 2018 $ — $ — $ — Additions charged to expense 663 203 866 Cash payments charged against reserve (44 ) — (44 ) Non-cash adjustments — — — Balance at June 30, 2019 $ 619 $ 203 $ 822 Capacity Utilization Restructuring Plan: In November 2014, we announced a capacity utilization restructuring plan which included the consolidation of our metal fabrication production from an operation located in Post Falls, Idaho, into existing production facilities in Indiana, and the reduction of our Company plane fleet from two jets to one. The improvement of customer delivery, supply chain dynamics, and reduction of transportation costs generated pre-tax annual savings of approximately $5 million beginning in our fiscal year 2017. In addition, during fiscal year 2017, we sold our Post Falls, Idaho facility and land which was classified as held for sale. Therefore, fiscal year 2017 restructuring includes a pre-tax gain of $2.1 million as the $12.0 million selling price net of selling costs exceeded the book value of the facility and land. The restructuring plan is complete with pre-tax restructuring totaling $10.8 million . Excluding the pre-tax gain from the sale of the Idaho facility of $2.1 million , the restructuring expense consisted of $4.9 million of transition, training, and other employee costs, $6.9 million of plant closure and other exit costs, and $1.1 million of non-cash asset impairment. Approximately 91% of the total restructuring expense was cash expense. |
Note 4. Revenue (Notes)
Note 4. Revenue (Notes) | 12 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [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 years 2018 and 2017 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 statements 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 Consolidated Statements of Income Year Ended June 30, 2018 (Amounts in Thousands) As Originally Reported Adoption of New Revenue Standard As Adjusted Net Sales $ 685,600 $ 18,954 $ 704,554 Cost of Sales 464,154 4,769 468,923 Gross Profit 221,446 14,185 235,631 Selling and Administrative Expenses 170,383 14,185 184,568 Operating Income 51,063 — 51,063 Operating Income as of Percent of Net Sales 7.4 % 7.2 % Year Ended June 30, 2017 (Amounts in Thousands) As Originally Reported Adoption of New Revenue Standard As Adjusted Net Sales $ 669,934 $ 23,033 $ 692,967 Cost of Sales 446,629 8,477 455,106 Gross Profit 223,305 14,556 237,861 Selling and Administrative Expenses 168,474 14,556 183,030 Restructuring (Gain) Expense (1,832 ) — (1,832 ) Operating Income 56,663 — 56,663 Operating Income as of Percent of Net Sales 8.5 % 8.2 % Impact to 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 9 - Commitments and Contingent Liabilities in the Notes to Consolidated Financial Statements for additional information on warranty obligations. Disaggregation of Revenue The following table provides information about revenue by vertical market: Year Ended June 30 (Amounts in Millions) 2019 2018 2017 Commercial $ 226.1 $ 205.9 $ 203.2 Education 92.1 86.3 81.4 Finance 69.8 67.6 69.3 Government 74.7 89.5 87.1 Healthcare 110.4 88.6 98.2 Hospitality 195.0 166.7 153.8 Total Net Sales $ 768.1 $ 704.6 $ 693.0 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 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. For the years ended June 30, 2019 , June 30, 2018 , and June 30, 2017 , impairment losses on doubtful accounts receivable were $0.5 million , $0.0 million , and $0.3 million , respectively. 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 Consolidated Balance Sheets. Changes in the customer deposits during the year ended June 30, 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 116.6 Revenue recognized (113.3 ) Balance as of June 30, 2019 $ 24.6 Customer deposits are typically utilized within a year of the receipt of the deposit. The amount of revenue recognized during the year ended June 30, 2019 that was included in the June 30, 2018 customer deposit balance was $20.9 million . The amount of revenue recognized during the year ended June 30, 2018 that was included in the June 30, 2017 customer deposit balance was $20.4 million . Additionally, funds paid to certain independent dealers in exchange for their multi-year commitment to market and sell our products represent costs of obtaining contracts. These incremental costs of obtaining contracts are capitalized to the extent we expect to recover them in the Consolidated Balance Sheets as of June 30, 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 $0.4 million , $0.3 million , and $0.1 million for the years ended June 30, 2019 , 2018 , and 2017 , respectively. 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 years ended June 30, 2019 , 2018 , and 2017 , 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 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 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. Earnings Per Share
Note 5. Earnings Per Share | 12 Months Ended |
Jun. 30, 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. Year Ended June 30 (Amounts in Thousands, Except for Per Share Data) 2019 2018 2017 Net Income $ 39,344 $ 34,439 $ 37,506 Average Shares Outstanding for Basic EPS Calculation 36,842 37,314 37,334 Dilutive Effect of Average Outstanding Compensation Awards 222 180 499 Average Shares Outstanding for Diluted EPS Calculation 37,064 37,494 37,833 Basic Earnings Per Share $ 1.07 $ 0.92 $ 1.00 Diluted Earnings Per Share $ 1.06 $ 0.92 $ 0.99 |
Note 6. Income Taxes
Note 6. Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | 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, a lower corporate federal income tax rate was phased in, resulting in a U.S. federal statutory tax rate of 28.1% for fiscal year ending June 30, 2018 and 21% for fiscal year 2019. The changes included in the Tax Act are broad and complex, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates we have utilized to calculate the transition impacts. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Income tax benefits associated with net operating losses of, in thousands, $1,740 expire from fiscal year 2020 to 2036 . Income tax benefits associated with tax credit carryforwards of, in thousands, $2,463 , expire from fiscal year 2023 to 2027 . Valuation allowances were provided as of June 30, 2019 for deferred tax assets relating to state net operating losses of, in thousands, $407 , and for foreign tax credits of, in thousands, $462 , that we currently believe are more likely than not to remain unrealized in the future. In all periods presented, the change in the valuation allowance is reported as a component of income tax expense. The components of the deferred tax assets and liabilities as of June 30, 2019 and 2018 , were as follows: (Amounts in Thousands) 2019 2018 Deferred Tax Assets: Receivables $ 698 $ 708 Inventory 275 428 Employee benefits 224 161 Deferred compensation 7,582 4,061 Other current liabilities 700 70 Warranty reserve 576 591 Tax credit carryforwards 2,463 2,168 Restructuring 211 — Goodwill 96 98 Net operating loss carryforward 1,740 2,179 Miscellaneous 1,902 2,135 Valuation Allowance (869 ) (860 ) Total asset $ 15,598 $ 11,739 Deferred Tax Liabilities: Property and equipment $ 6,152 $ 6,062 Miscellaneous 724 761 Total liability $ 6,876 $ 6,823 Net Deferred Tax Assets $ 8,722 $ 4,916 The provision for income taxes is composed of the following items: Year Ended June 30 (Amounts in Thousands) 2019 2018 2017 Currently Payable: Federal $ 13,458 $ 6,592 $ 19,780 State 2,677 1,636 2,318 Total current $ 16,135 $ 8,228 $ 22,098 Deferred Taxes: Federal $ (3,270 ) $ 8,236 $ (1,761 ) State (539 ) 1,422 175 Total deferred $ (3,809 ) $ 9,658 $ (1,586 ) Total provision for income taxes $ 12,326 $ 17,886 $ 20,512 A reconciliation of the statutory U.S. income tax rate to Kimball International’s effective income tax rate follows: Year Ended June 30 2019 2018 2017 (Amounts in Thousands) Amount % Amount % Amount % Tax provision computed at U.S. federal statutory rate $ 10,851 21.0 % $ 14,703 28.1 % $ 20,306 35.0 % State income taxes, net of federal income tax benefit 1,689 3.3 2,198 4.2 1,620 2.8 Domestic manufacturing deduction — — (617 ) (1.2 ) (1,495 ) (2.6 ) Research credit (300 ) (0.6 ) (180 ) (0.3 ) (218 ) (0.4 ) Remeasurement of tax assets and liabilities related to the Tax Act — — 1,839 3.5 — — Other - net 86 0.2 (57 ) (0.1 ) 299 0.6 Total provision for income taxes $ 12,326 23.9 % $ 17,886 34.2 % $ 20,512 35.4 % Net cash payments for income taxes were, in thousands, $10,225 , $13,937 , and $20,881 in fiscal years 2019 , 2018 , and 2017 , respectively. Changes in the unrecognized tax benefit, excluding accrued interest and penalties, during fiscal years 2019 , 2018 , and 2017 were as follows: (Amounts in Thousands) 2019 2018 2017 Beginning balance - July 1 $ 989 $ 1,888 $ 2,077 Tax positions related to prior fiscal years: Additions 80 222 213 Reductions (222 ) (1,030 ) (581 ) Tax positions related to current fiscal year: Additions — — 391 Reductions — — — Settlements — — — Lapses in statute of limitations (94 ) (91 ) (212 ) Ending balance - June 30 $ 753 $ 989 $ 1,888 Portion that, if recognized, would reduce tax expense and effective tax rate $ 643 $ 832 $ 1,377 We recognize interest and penalties related to unrecognized tax benefits in the Provision for Income Taxes line of the Consolidated Statements of Income. Amounts accrued for interest and penalties were as follows: As of June 30 (Amounts in Thousands) 2019 2018 2017 Accrued Interest and Penalties: Interest $ 90 $ 70 $ 84 Penalties $ 101 $ 98 $ 102 Interest and penalties income recognized for fiscal years 2019 , 2018 , and 2017 were, in thousands, $23 , $11 , and $23 , respectively. Kimball International, or one of its wholly-owned subsidiaries, files U.S. federal income tax returns and income tax returns in various state and local jurisdictions. We are no longer subject to any significant U.S. federal tax examinations by tax authorities for years before fiscal year 2016, and to various state and local income tax examinations by tax authorities for years before 2015. We do not expect the change in the amount of unrecognized tax benefits in the next 12 months to have a significant impact on our results of operations or financial position. We consider the earnings of certain non-U.S. subsidiaries to be indefinitely invested outside the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs. No provision was made for income taxes that may result from future remittances of the undistributed earnings of foreign subsidiaries that are determined to be indefinitely reinvested, which was $1.3 million on June 30, 2019. Based on the Tax Act, future remittances of these undistributed earnings of foreign subsidiaries are not subject to U.S. income tax or foreign withholding taxes in the foreign country where the foreign subsidiaries operate. |
Note 7. Inventories
Note 7. Inventories | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure | Inventories Inventories are stated at the lower of cost or market value. Inventories are valued using the last-in, first-out (“LIFO”) method for approximately 93% and 92% of consolidated inventories at June 30, 2019 and June 30, 2018 , respectively. The remaining inventories are valued using the first-in, first-out (“FIFO”) method and average cost method. Had the FIFO method been used for all inventories, income would have been $1.1 million higher in fiscal year 2019 , $1.1 million higher in fiscal year 2018 , and $0.4 million higher in fiscal year 2017 . Certain inventory quantity reductions caused liquidations of LIFO inventory values, which increased income by an immaterial amount in 2019, 2018 and 2017. Inventory components at June 30 were as follows: (Amounts in Thousands) 2019 2018 Finished products $ 26,304 $ 23,756 Work-in-process 2,455 1,378 Raw materials 34,335 29,158 Total FIFO inventory $ 63,094 $ 54,292 LIFO reserve, net (16,282 ) (14,783 ) Total inventory $ 46,812 $ 39,509 |
Note 8. Property and Equipment
Note 8. Property and Equipment | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | Property and Equipment Major classes of property and equipment at June 30 consist of the following: (Amounts in Thousands) 2019 2018 Land $ 2,219 $ 2,219 Buildings and improvements 104,601 105,372 Machinery and equipment 157,575 152,653 Construction-in-progress 12,141 4,302 Total $ 276,536 $ 264,546 Less: Accumulated depreciation (185,865 ) (180,059 ) Property and equipment, net $ 90,671 $ 84,487 The useful lives used in computing depreciation are based on estimated service lives for classes of property, as follows: Years Buildings and improvements 5 to 40 Machinery and equipment 2 to 20 Leasehold improvements Lesser of Useful Life or Term of Lease Depreciation of property and equipment, including asset write-downs, totaled, in millions, $14.8 for fiscal year 2019 , $13.7 for fiscal year 2018 , and $14.7 for fiscal year 2017 . At both June 30, 2019 and June 30, 2018, excess land located in Jasper, Indiana totaling $0.3 million was classified as held for sale. At June 30, 2017 , our fleet of over-the-road tractors and trailers and a small parcel of land located in Jasper, Indiana totaling $4.2 million were classified as held for sale. During fiscal year 2018, we sold all of our over-the-road tractors and trailers and the small parcel of land and recognized a pre-tax gain of $0.4 million as the $4.8 million selling price exceeded the book value net of selling costs. During fiscal year 2017, we sold our Post Falls, Idaho facility and land and recognized a pre-tax gain of $2.1 million as the $12.0 million selling price exceeded the book value of the facility and land net of selling costs. The gain was recorded on the Restructuring (Gain) Expense line of the Consolidated Statements of Income. We also sold excess land for proceeds of $1.4 million and recognized pre-tax gains of $1.2 million which is recorded on the Selling and Administrative Expenses line of the Consolidated Statements of Income. In addition, during fiscal year 2017 we recognized impairment of $0.2 million as the carrying value of our fleet of over-the-road tractors and trailers exceeded the market value less selling costs. During fiscal year 2017, we also sold a facility in Indiana which housed an education center for dealer and employee training, a research and development center, and a product showroom for proceeds of $3.8 million . In order to allow for transition of those functions to our primary campus also located in Jasper, Indiana, we leased back a portion of the facility until December 31, 2017 at a favorable rate. The below-market terms of the leaseback were considered a form of continuing involvement that precluded sale treatment therefore we deferred the recognition of the sale until fiscal year 2018 when we recorded the pre-tax gain of $1.7 million on the sale. |
Note 9. Commitments and Conting
Note 9. Commitments and Contingent Liabilities | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingent Liabilities Leases: Operating leases for certain offices, showrooms, manufacturing facilities, land, and equipment, which expire from fiscal year 2020 to 2027 , contain provisions under which minimum annual lease payments are, in millions, $4.6 , $4.2 , $4.1 , $3.6 , and $2.5 for the five years ending June 30, 2024 , respectively, and aggregate $3.8 million from fiscal year 2025 to the expiration of the leases in fiscal year 2027 . We are obligated under certain real estate leases to maintain the properties and pay real estate taxes. Certain leases include renewal options and escalation clauses. Total rental expense was, in millions, $6.4 , $5.8 , and $6.0 in fiscal years 2019 , 2018 , and 2017 , respectively, including certain leases requiring contingent lease payments based primarily on warehouse space utilized, which was expense of, in millions, $1.2 , $1.2 , and $1.5 in fiscal years 2019 , 2018 , and 2017 , respectively. As part of the transformation restructuring plan, during fiscal year 2020 we plan to exit the leased manufacturing facility in Martinsville, Virginia and four leased furniture showrooms. We had no capital leases in fiscal years 2019 or 2018. During the latter portion of our fiscal year 2017, we sold a facility in Indiana which housed the education center for dealer and employee training, a research and development center, and a product showroom for proceeds of $3.8 million . We were leasing a portion of the facility back to facilitate the short-term transition of those functions to other existing Indiana locations. The sale of the facility did not qualify for sale-leaseback accounting during fiscal year 2017, and thus the $1.7 million pre-tax gain on the sale was not recognized in selling and administrative expenses until fiscal year 2018. 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. We had a maximum financial exposure from unused standby letters of credit totaling $1.5 million as of June 30, 2019 and $1.4 million as of June 30, 2018 . We are periodically required to provide performance bonds in order to conduct business with certain customers. The bonds are required to provide assurances to customers that the products and services they have purchased will be installed and/or provided properly and without damage to their facilities. We are ultimately liable for claims that may occur against the performance bonds. We had no financial exposure from performance bonds as of June 30, 2019 and we had a maximum financial exposure totaling $ 0.5 million as of June 30, 2018 . 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 consolidated financial statements. Accordingly, no liability has been recorded as of June 30, 2019 and 2018 with respect to the standby letters of credit or performance bonds. 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 during fiscal years 2019 , 2018 , and 2017 were as follows: (Amounts in Thousands) 2019 2018 2017 Product Warranty Liability at the beginning of the year $ 2,294 $ 1,992 $ 2,351 Additions to warranty accrual (including changes in estimates) 886 1,307 562 Settlements made (in cash or in kind) (942 ) (1,005 ) (921 ) Product Warranty Liability at the end of the year $ 2,238 $ 2,294 $ 1,992 |
Note 10. Long-Term Debt and Cre
Note 10. Long-Term Debt and Credit Facilities | 12 Months Ended |
Jun. 30, 2019 | |
Long-Term Debt and Credit Facility [Abstract] | |
Debt Disclosure | Long-Term Debt and Credit Facilities Long-term debt, less current maturities as of June 30, 2019 and 2018 , was, in thousands, $136 and $161 , respectively, and current maturities of long-term debt were, in thousands, $25 and $23 , respectively. Long-term debt consists of a long-term note payable, which has an interest rate of 9.25% and matures in 2025 . Aggregate maturities of long-term debt for the next five years are, in thousands, $25 , $27 , $30 , $33 , and $36 , respectively, and aggregate $10 thereafter. We maintain a $30 million credit facility with a maturity date of October 31, 2019 that allows for both issuances of letters of credit and cash borrowings. This facility provides an option to increase the amount available for borrowing to $55 million at our request, subject to the consent of the participating banks. We expect to negotiate a new credit facility to replace the current $30 million credit facility prior to its October 2019 expiration. At June 30, 2019 and 2018 , we had no borrowings outstanding under the credit facility. At June 30, 2019 , we had $1.5 million in letters of credit outstanding, which reduced our borrowing capacity on the credit facility to $28.5 million . The revolving loans under the Credit Agreement may consist of, at our election, advances in U.S. dollars or advances in any other currency that is agreed to by the lenders. The proceeds of the revolving loans are to be used for general corporate purposes, including acquisitions. A portion of the credit facility, not to exceed $10 million of the principal amount, will be available for the issuance of letters of credit. The commitment fee is payable on the unused portion of the credit facility which was immaterial to our operating results for fiscal years 2019 and 2018 . The commitment fee on the unused portion of principal amount of the credit facility is payable at a rate that ranges from 20.0 to 25.0 basis points per annum as determined by our ratio of consolidated total indebtedness to adjusted consolidated EBITDA. The interest rate is dependent on the type of borrowings and will be one of the following two options: • The adjusted London Interbank Offered Rate (“Adjusted LIBO Rate” as defined in the Credit Agreement) in effect two business days prior to the advance (adjusted upwards to reflect bank reserve costs) for such interest period, plus the Eurocurrency Loans margin which can range from 125.0 to 175.0 basis points based on our ratio of consolidated total indebtedness to adjusted consolidated EBITDA; or • The Alternate Base Rate, which is defined as the highest of the fluctuating rate per annum equal to the higher of a. JP Morgan’s prime rate; b. 1% per annum above the Adjusted LIBO rate; or c. 0.5% per annum above the Federal funds rate; plus the ABR Loans spread which can range from 25.0 to 75.0 basis points based on our ratio of consolidated total indebtedness to adjusted consolidated EBITDA. Our financial covenants under the Credit Agreement require: • An adjusted leverage ratio of (a) consolidated total indebtedness minus unencumbered U.S. cash on hand in the U.S. in excess of $15,000,000 to (b) consolidated EBITDA, determined as of the end of each of its fiscal quarters for the then most recently ended four fiscal quarters, to not be greater than 3.0 to 1.0 , and • A fixed charge coverage ratio of (a) the sum of (i) consolidated EBITDA, minus (ii) 50% of depreciation expense, minus (iii) taxes paid, minus (iv) dividends and distributions paid, to (b) the sum of (i) scheduled principal payments on indebtedness due and/or paid, plus (ii) interest expense, calculated on a consolidated basis in accordance with GAAP, determined as of the end of each of its fiscal quarters for the trailing four fiscal quarters then ending, to not be less than 1.10 to 1.00 . Interest expense incurred and paid on borrowings were, in thousands, $87 , $70 , and $37 , in fiscal years 2019 , 2018 , and 2017 , respectively. |
Note 11. Employee Benefit Plans
Note 11. Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Pension and Postemployment Benefits | Employee Benefit Plans Retirement Plans: We have a trusteed defined contribution retirement plan in effect for substantially all domestic employees meeting the eligibility requirements. Employer contributions to the trusteed plan have a five-year vesting schedule and are held for the sole benefit of participants. We also maintain a supplemental employee retirement plan (“SERP”) for executive employees which enables them to defer cash compensation on a pre-tax basis in excess of IRS limitations. The SERP is structured as a rabbi trust, and therefore assets in the SERP portfolio are subject to creditor claims in the event of bankruptcy. The discretionary employer contribution for domestic employees is determined annually by the Compensation and Governance Committee of the Board of Directors. Total expense related to employer contributions to the domestic retirement plans was, in millions, $7.3 , $5.9 , and $6.4 for fiscal years 2019 , 2018 , and 2017 , respectively. Employees of certain foreign subsidiaries are covered by local pension or retirement plans. The expense related to employer contributions to these foreign plans for fiscal years 2019 , 2018 , and 2017 was not material. Severance Plans: Our domestic employees participate in severance plans which provide severance benefits to eligible employees meeting the plans’ qualifications, primarily for involuntary termination without cause. There are no statutory requirements for us to contribute to the plans, nor do employees contribute to the plans. The plans hold no assets. Benefits are paid using available cash on hand when eligible employees meet plan qualifications for payment. Benefits are based upon an employee’s years of service and accumulate up to certain limits specified in the plans and include both salary and an allowance for medical benefits. The components and changes in the Benefit Obligation, Accumulated Other Comprehensive Income (Loss), and Net Periodic Benefit Cost are as follows: June 30 (Amounts in Thousands) 2019 2018 Changes and Components of Benefit Obligation: Benefit obligation at beginning of year $ 2,719 $ 3,083 Service cost 506 521 Interest cost 89 85 Actuarial (gain) loss for the period (484 ) (895 ) Benefits paid (46 ) (75 ) Benefit obligation at end of year $ 2,784 $ 2,719 Balance in current liabilities $ 506 $ 494 Balance in noncurrent liabilities 2,278 2,225 Total benefit obligation recognized in the Consolidated Balance Sheets $ 2,784 $ 2,719 June 30 (Amounts in Thousands) 2019 2018 Changes and Components in Accumulated Other Comprehensive Income (Loss) (before tax): Accumulated Other Comprehensive Income (Loss) at beginning of year $ 2,494 $ 1,859 Net change in unrecognized actuarial gain (loss) 80 635 Accumulated Other Comprehensive Income (Loss) at end of year $ 2,574 $ 2,494 (Amounts in Thousands) Year Ended June 30 Components of Net Periodic Benefit Cost (before tax): 2019 2018 2017 Service cost $ 506 $ 521 $ 482 Interest cost 89 85 65 Amortization of actuarial (gain) loss (404 ) (260 ) (473 ) Net periodic benefit cost — Total cost $ 191 $ 346 $ 74 The benefit cost in the above table includes only normal recurring levels of severance activity, as estimated using an actuarial method. Unusual or non-recurring severance actions, such as the restructuring employee transition pay described in Note 3 - Restructuring , are not estimable using actuarial methods and are therefore excluded from the preceding tables. During fiscal year 2019, we reported service cost in the Cost of Sales and Selling and Administrative Expenses lines of the Consolidated Statement of Income, interest cost in the Interest Expense line, and amortization of actuarial income in the Non-operating income. During fiscal year 2018 and 2017, 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 Consolidated Statement of Income because the impact was immaterial. The Plan recognized actuarial gains during fiscal years 2019, 2018 and 2017 as a result of lower benefit payments than were assumed in the benefit obligation. The actuarial gain is amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits under the plans. Assumptions used to determine fiscal year end benefit obligations are as follows: 2019 2018 Discount Rate 2.8% 3.4% Rate of Compensation Increase 3.0% 3.0% Weighted average assumptions used to determine fiscal year net periodic benefit costs are as follows: 2019 2018 2017 Discount Rate 3.2% 3.0% 2.4% Rate of Compensation Increase 3.0% 3.0% 3.0% |
Note 12. Stock Compensation Pla
Note 12. Stock Compensation Plans | 12 Months Ended |
Jun. 30, 2019 | |
Stock Compensation Plans [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments | Stock Compensation Plans On October 31, 2017, the shareholders approved the 2017 Stock Incentive Plan (“the 2017 Plan”) which allows for the issuance of stock awards, restricted stock awards, stock options, stock appreciation rights, and other stock-based awards, each of which may include performance-based conditions, to certain employees, non-employee directors, consultants, and advisors. The 2017 Plan authorizes the issuance of 2.1 million shares of our Class B Common Stock including unused shares from the former plan. Stock-based compensation expense was $6.6 million , $4.2 million , and $6.3 million in fiscal years 2019 , 2018 and 2017 , respectively. The total income tax benefit for stock compensation arrangements was $2.0 million , $2.1 million , and $2.9 million in fiscal years 2019 , 2018 and 2017 , respectively. Included in the income tax benefit for fiscal years 2019 , 2018 and 2017 , respectively, was a $0.3 million , $0.7 million , and $0.5 million reduction in taxes for excess tax benefits from the vesting of stock awards. We generally use treasury shares for issuance of shares. Performance Shares: We award performance shares to officers and other key employees. Under these awards, a number of shares will be issued to each participant based upon the attainment of the applicable performance conditions as applied to a total potential share award made and approved by the Compensation and Governance Committee. Currently outstanding are long-term performance share awards with a contractual life of five years . We also award annual performance share awards with a contractual life of one year. The performance conditions for both types of performance share awards are based on annual performance measurement periods. Annual performance shares vest at the end of the fiscal year. Long-term performance shares vest when issued as Common Stock shortly after the end of the fiscal year in which each performance measurement period is complete. The long-term performance share award is being phased out with the final issuance of shares in July 2019. If a participant is not employed on the date long-term performance shares are issued or the date annual performance shares are vested, the performance share award is forfeited, except in the case of death, retirement, total permanent disability, or certain other circumstances described in our employment policy. To the extent performance conditions are not fully attained, performance shares are forfeited. A summary of performance share activity during fiscal year 2019 is presented below: Number of Shares (1) Weighted Average Grant Date Fair Value Performance Shares outstanding at July 1, 2018 104,223 $16.52 Granted 116,598 $16.13 Vested (143,543 ) $16.33 Forfeited (49,555 ) $16.13 Performance Shares outstanding at June 30, 2019 27,723 $16.12 (1) The shares granted include the maximum number of shares that may vest under performance share awards; however, the actual number of shares which vest is determined based on the satisfaction of performance conditions, and therefore may be significantly lower. The shares vested include the earned number of shares to be issued based on performance conditions, while shares forfeited include shares that will not be issued as a result of not fully attaining the maximum performance conditions. As of June 30, 2019 , there was less than $0.1 million of unrecognized compensation cost related to performance shares, based on the latest estimated attainment of performance conditions. That cost is expected to be recognized in July 2019, with a weighted average vesting period of one month . The fair value of performance shares is based on the closing stock price at the date of grant, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding performance share awards. The weighted average grant date fair value was $16.13 , $16.62 , and $11.26 for performance share awards granted in fiscal years 2019 , 2018 , and 2017 , respectively. During fiscal years 2019 , 2018 , and 2017 , respectively, 143,543 ; 401,833 ; and 294,086 performance shares vested at a fair value of $2.3 million , $4.8 million , and $3.6 million . Fiscal year 2018 vesting was higher primarily because of a change in vesting timing from July to June 30. The performance shares vested represent the total number of shares vested prior to the reduction of shares withheld to satisfy tax withholding obligations. Relative Total Shareholder Return Performance Units: We award relative total shareholder return performance units (“RTSR”) to key officers. Under these awards, a participant will earn from 0% to 200% of the target award depending upon how the compound annual growth rate of Kimball International common stock ranks within the peer group at the end of the performance period. RTSRs are vested at the end of the performance period and are issued as common shares shortly after the performance measurement period is complete. The contractual life of the RTSRs is generally three years . If a participant is not employed on the date shares are vested, the RTSR award is forfeited, except in the case of death, retirement, total permanent disability, or certain other circumstances described in our employment policy. To the extent performance conditions are not fully attained, RTSRs are forfeited. A summary of RTSR activity during fiscal year 2019 is presented below: Number of Shares (1) Weighted Average Grant Date Fair Value RTSRs outstanding at July 1, 2018 130,640 $18.94 Granted 140,914 $21.43 Vested (67,130 ) $17.23 Forfeited (29,512 ) $20.18 RTSRs outstanding at June 30, 2019 174,912 $21.31 (1) The shares granted include the maximum number of shares that may vest under RTSR awards; however, the actual number of shares which vest is determined based on the satisfaction of performance conditions, and therefore may be significantly lower. The shares vested include the earned number of shares to be issued based on performance conditions, while shares forfeited include shares that will not be issued as a result of not fully attaining the maximum performance conditions. As of June 30, 2019 , there was approximately $1.1 million of unrecognized compensation cost related to RTSRs. That cost is expected to be recognized over the vesting periods ending June 2020 through June 2021, with a weighted average vesting period of approximately one year, five months . The grant date fair value of RTSR awards was calculated using a Monte Carlo simulation. This valuation technique includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. The weighted average grant date fair value was $21.43 , $20.65 , and $13.92 for RTSR awards granted in fiscal years 2019 , 2018 , and 2017 , respectively. During fiscal years 2019 , 2018 , and 2017 , respectively, 67,130 , 37,535 , and 57,375 , RTSRs vested at a fair value of $1.2 million , $0.6 million , and $1.0 million . The RTSR awards vested represent the total number of shares vested prior to the reduction of shares withheld to satisfy tax withholding obligations. On May 7, 2018, Robert F. Schneider informed the Board of Directors of Kimball International of his decision to retire as our Chief Executive Officer (“CEO”) and Chairman of the Board. With the announcement of his plan to retire, the Company and Mr. Schneider entered into an Amendment to Executive’s Terms of Employment (“Amendment”) which modified the terms of his RTSR awards so that a prorated portion of awards vest based on the portion of the applicable performance period that Mr. Schneider worked prior to his retirement. The Amendment was determined to be a Type III “Improbable to Probable” modification, as the awards were no longer probable of vesting prior to the Amendment. Mr. Schneider retired on October 31, 2018 and upon the June 30, 2019 vesting date received 39,112 shares at a vested fair value of $0.7 million . He has outstanding maximum shares of 14,668 at a fair value of $0.3 million vesting June 30, 2020. Restricted Share Units: Restricted Share Units (“RSUs”) were granted to officers and key employees. Upon vesting, the outstanding number of RSUs and the value of dividends accumulated over the vesting period are converted to shares of common stock. The contractual life of the RSUs is generally three years , however certain awards have shorter or longer contractual lives in order to transition from other types of compensation or to be used as a long-term retention tool. If the employment of a holder of an RSU terminates before the RSU has vested for any reason other than death, retirement, total permanent disability, or certain other circumstances described in our employment policy, the RSU and accumulated dividends will be forfeited. A summary of RSU activity during fiscal year 2019 is presented below: Number of Shares Weighted Average Grant Date Fair Value RSUs outstanding at July 1, 2018 201,826 $15.10 Granted 318,822 $16.38 Vested (149,323 ) $14.61 Forfeited (47,298 ) $15.43 RSUs outstanding at June 30, 2019 324,027 $16.54 As of June 30, 2019 , there was approximately $3.2 million of unrecognized compensation cost related to nonvested RSU compensation arrangements. That cost is expected to be recognized over vesting periods ending June 2020 through June 2021, with a weighted average vesting period of one year, seven months . The fair value of RSU awards is based on the stock price at the date of award. The weighted average grant date fair value was $16.38 , $17.14 , and $11.85 for RSU awards granted in fiscal years 2019 , 2018 , and 2017 , respectively. During fiscal years 2019 , 2018 , and 2017 , respectively, 149,323 , 79,315 , and 86,116 RSUs vested at a fair value of $2.2 million , $1.0 million , and $0.8 million . The fair value is equal to the closing price of shares of our Common Stock on the date of the grant. The RSU awards vested represent the total number of shares vested prior to the reduction of shares withheld to satisfy tax withholding obligations. Mr. Schneider’s Amendment, in conjunction with his retirement, modified the terms of his existing RSU awards so that a prorated portion of awards vest based on the portion of the applicable period that Mr. Schneider works prior to his retirement. The Amendment was determined to be a Type III “Improbable to Probable” modification, as the awards were no longer probable of vesting prior to the Amendment. Mr. Schneider retired on October 31, 2018 and received 26,397 shares at a vested fair value of $0.4 million . Unrestricted Share Grants: Unrestricted shares may be granted to employees and non-employee members of the Board of Directors as consideration for service to Kimball International. Unrestricted share grants do not have vesting periods, holding periods, restrictions on sale, or other restrictions. The fair value of unrestricted shares is based on the stock price at the date of the award. During fiscal years 2019 , 2018 , and 2017 , respectively, we granted a total of 42,888 , 38,696 , and 48,812 unrestricted shares of common stock at an average grant date fair value of $15.42 , $18.31 , and $14.12 for a total fair value, in thousands, of $661 , $709 , and $689 . These shares are the total number of shares granted, prior to the reduction of shares withheld to satisfy tax withholding obligations. Unrestricted shares were awarded to key employees and non-employee members of the Board of Directors as compensation for director’s fees and as a result of directors’ elections to receive unrestricted shares in lieu of cash payment. Director’s fees are expensed over the period that directors earn the compensation. |
Note 13. Fair Value
Note 13. Fair Value | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [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 fiscal years 2019 and 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 15 - Investments of Notes to Consolidated Financial Statements for further information regarding the investment in equity securities without readily determinable fair value, and Note 14 - Derivative Instruments of Notes to Consolidated Financial Statements for further information regarding the investment in stock warrants. No purchases or sales of level 3 assets occurred during the fiscal years ended June 30, 2019 and 2018 . In connection with the acquisition of D’style, we valued long-lived and intangible assets at their estimated fair values at the acquisition date. The fair value estimates for intangible assets were based upon assumptions related to the future cash flows and discount rates utilizing currently available information, and in some cases, valuation results from independent valuation specialists (Level 3 determination of fair value). Subsequent to the acquisition, we may 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. As part of the acquisition, contingent earn-out payments up to $2.2 million may be paid based upon fiscal year 2018 and 2019 D’style, Inc. operating income compared to a predetermined target for each fiscal year. As of the November 6, 2017 acquisition date, the fair value of the earn-out liability was $1.7 million . The liability is carried at fair value and is classified in Level 3 of the fair value hierarchy. During the fiscal year ended June 30, 2018, the fair value of the contingent earn-out liability was adjusted to $1.1 million , resulting in a $0.6 million pre-tax gain, recognized as $0.8 million pre-tax gain included in Selling and Administrative Expenses, offset in part by $0.2 million of Interest Expense. During the fiscal year ended June 30, 2019, the fair value of the contingent earn-out liability was adjusted to $0.4 million due to a payment of $0.4 million relating to fiscal year 2018 and an adjustment of $0.3 million of pre-tax income within Selling and Administrative Expenses 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 in a start-up phase. 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 June 30, 2019 and June 30, 2018 , the fair values of financial assets and liabilities that are measured at fair value on a recurring basis using the market or income approach are categorized as follows: (Amounts in Thousands) June 30, 2019 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 40,016 $ — $ — $ 40,016 Cash equivalents: Commercial paper — 29,408 — 29,408 Available-for-sale securities: Secondary market certificates of deposit — 11,230 — 11,230 Available-for-sale securities: Municipal bonds — 1,922 — 1,922 Available-for-sale securities: U.S. Treasury and federal agencies — 19,919 — 19,919 Trading Securities: Mutual funds in nonqualified SERP 11,774 — — 11,774 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 51,790 $ 62,479 $ 1,500 $ 115,769 Liabilities Contingent earn-out liability — — 360 360 Total liabilities at fair value $ — $ — $ 360 $ 360 (Amounts in Thousands) June 30, 2018 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 15 - Investments of Notes to Consolidated Financial Statements for further information regarding the SERP. Financial Instruments Not Carried At Fair Value: Financial instruments that are not reflected in the Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk Equity securities without readily determinable fair value 3 Costs 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 15 - Investments of Notes to 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 14. Derivative Instruments
Note 14. Derivative Instruments | 12 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | Derivative Instruments Stock Warrants: We hold a total investment of $2.0 million in a privately-held company, including $1.5 million in stock warrants purchased during fiscal year 2017. The investment in stock warrants is accounted for as a derivative instrument and is included in the Other Assets line of the 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 year ended June 30, 2019 , the change in fair value of the stock warrants was not significant. See Note 13 - Fair Value of Notes to 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. Fair Values of Derivative Instruments on the Consolidated Balance Sheets Asset Derivatives Liability Derivatives Fair Value As of Fair Value As of (Amounts in Thousands) Balance Sheet Location June 30 June 30 Balance Sheet Location June 30 June 30 Derivatives designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets $ — $ — 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 15. Investments
Note 15. Investments | 12 Months Ended |
Jun. 30, 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 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): June 30, 2019 (Amounts in Thousands) Certificates of Deposit Municipal Bonds U.S. Treasury and Federal Agencies Within one year $ 6,735 $ 1,922 $ 19,919 After one year through two years 4,495 — — Total Fair Value $ 11,230 $ 1,922 $ 19,919 All investments are classified as available-for-sale securities which are recorded at fair value. See Note 13 - Fair Value of Notes to 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 Shareholders’ Equity. June 30, 2019 (Amounts in Thousands) Certificates of Deposit Municipal Bonds U.S. Treasury and Federal Agencies Amortized cost basis $ 11,230 $ 1,921 $ 19,888 Unrealized holding gains — 1 31 Unrealized holding losses — — — Fair Value $ 11,230 $ 1,922 $ 19,919 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 No investments were in a continuous unrealized loss position for greater than 12 months as of June 30, 2019 . There were no realized losses as a result of sales during fiscal year 2019 and an immaterial amount during fiscal year 2018 . 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 Consolidated Balance Sheets at current fair value. A SERP liability of the same amount is recorded on the Consolidated Balance Sheets representing an obligation to distribute SERP funds to participants. The SERP investment assets are classified as trading, and accordingly, realized and unrealized gains and losses are recognized in income in the Other Income (Expense) category. Adjustments made to revalue the SERP liability are also recognized in income as selling and administrative expenses and offset valuation adjustments on SERP investment assets. Net unrealized holding gains for securities held at June 30, 2019 , 2018 , and 2017 were, in thousands, $223 , $585 , and $223 , respectively. SERP asset and liability balances were as follows: June 30 (Amounts in Thousands) 2019 2018 SERP investments - current asset $ 3,087 $ 3,868 SERP investments - other long-term asset 8,687 8,246 Total SERP investments $ 11,774 $ 12,114 SERP obligation - current liability $ 3,087 $ 3,868 SERP obligation - other long-term liability 8,687 8,246 Total SERP obligation $ 11,774 $ 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 purchased during fiscal year 2016. The investment in equity securities without readily determinable fair value is included in the Other Assets line of the Consolidated Balance Sheets. See Note 13 - Fair Value of Notes to 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 16. Accrued Expenses
Note 16. Accrued Expenses | 12 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities Disclosure | Accrued Expenses Accrued expenses consisted of: June 30 (Amounts in Thousands) 2019 2018 Compensation $ 24,582 $ 22,045 Selling 8,148 7,134 Employer retirement contribution 7,032 5,605 Taxes 4,115 3,598 Insurance 3,821 4,210 Restructuring 822 — Rent 3,163 2,997 Other expenses 5,811 4,997 Total accrued expenses $ 57,494 $ 50,586 |
Note 17. Geographic Information
Note 17. Geographic Information | 12 Months Ended |
Jun. 30, 2019 | |
Geographic Areas, Revenues from External Customers [Abstract] | |
Geographic Information [Text Block] | Geographic Information The following geographic area data includes net sales based on the location where title transfers. Year Ended June 30 (Amounts in Thousands) 2019 2018 2017 Net Sales: United States $ 755,878 $ 691,766 $ 681,484 Foreign 12,192 12,788 11,483 Total Net Sales $ 768,070 $ 704,554 $ 692,967 Substantially all long-lived assets were located in the United States for each of the three fiscal years ended June 30, 2019 . Long-lived assets include property and equipment and other long-term assets such as software. |
Note 18. Accumulated Other Comp
Note 18. Accumulated Other Comprehensive Income | 12 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income During fiscal year 2019 and 2018 , the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: (Amounts in Thousands) Unrealized Investment Gain (Loss) Postemployment Benefits Net Actuarial Gain (Loss) Derivative Gain (Loss) Accumulated Other Comprehensive Income Balance at June 30, 2017 $ (21 ) $ 1,136 $ — $ 1,115 Other comprehensive income (loss) before reclassifications (8 ) 599 (7 ) 584 Reclassification to (earnings) loss 3 (176 ) — (173 ) Net current-period other comprehensive income (loss) (5 ) 423 (7 ) 411 Reclassification of change in enacted income tax rate to retained earnings $ (5 ) $ 295 $ — $ 290 Balance at June 30, 2018 $ (31 ) $ 1,854 $ (7 ) $ 1,816 Other comprehensive income (loss) before reclassifications 54 360 (9 ) 405 Reclassification to (earnings) loss — (300 ) 16 (284 ) Net current-period other comprehensive income (loss) 54 60 7 121 Balance at June 30, 2019 $ 23 $ 1,914 $ — $ 1,937 The following reclassifications were made from Accumulated Other Comprehensive Income to the Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income Fiscal Year Ended Affected Line Item in the Consolidated Statements of Income June 30, (Amounts in Thousands) 2019 2018 Realized Investment Gain (Loss) on available-for-sale securities (1) $ — $ (4 ) Non-operating income (expense), net — 1 Benefit (Provision) for Income Taxes $ — $ (3 ) Net Income Postemployment Benefits Amortization of Actuarial Gain (2) $ — $ 168 Cost of Sales — 92 Selling and Administrative Expenses 404 — Non-operating income (expense), net (104 ) (84 ) Benefit (Provision) for Income Taxes $ 300 $ 176 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 $ 284 $ 173 Net Income Amounts in parentheses indicate reductions to income. (1) See Note 15 - Investments of Notes to Consolidated Financial Statements for further information on available-for-sale securities. (2) See Note 11 - Employee Benefit Plans of Notes to Consolidated Financial Statements for further information on postemployment benefit plans. (3) See Note 14 - Derivative Instruments of Notes to Consolidated Financial Statements for further information on derivative instruments. |
Note 19. Variable Interest Enti
Note 19. Variable Interest Entities | 12 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [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 June 30, 2019 and June 30, 2018 and were included in the Other Assets line of the Consolidated Balance Sheets. For more information related to our investment in the privately-held company, see Note 13 - Fair Value of Notes to Consolidated Financial Statements. The carrying value of the notes receivable for independent dealership financing were $1.0 million and $0.6 million , net of a $0.1 million allowance as of June 30, 2019 and June 30, 2018 , respectively, and were included on the Receivables and Other Assets lines of our Consolidated Balance Sheets. We have no obligation to provide additional funding to the VIEs, and thus our exposure and risk of loss related to the VIEs is limited to the carrying value of the investment and notes receivable. Financial support provided by Kimball International to the VIEs was limited to the items discussed above during the fiscal year ended June 30, 2019 . |
Note 20. Credit Quality and All
Note 20. Credit Quality and Allowance for Credit Losses of Notes Receivable | 12 Months Ended |
Jun. 30, 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 June 30, 2019 and 2018 , we had no material past due outstanding notes receivable. As of June 30, 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 $ 1,010 $ — $ 1,010 $ 666 $ 50 $ 616 Other Notes Receivable 122 122 — 183 183 — Total $ 1,132 $ 122 $ 1,010 $ 849 $ 233 $ 616 |
Note 21. Quarterly Financial In
Note 21. Quarterly Financial Information (Unaudited) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarterly Financial Information (Unaudited) Three Months Ended (Amounts in Thousands, Except for Per Share Data) September 30 December 31 March 31 June 30 Fiscal Year 2019: Net Sales $ 194,123 $ 201,008 $ 177,369 $ 195,570 Gross Profit 65,873 64,989 56,561 67,129 Restructuring (Gain) Expense — — — 937 Net Income 10,876 9,405 7,954 11,109 Basic Earnings Per Share $ 0.29 $ 0.26 $ 0.22 $ 0.30 Diluted Earnings Per Share $ 0.29 $ 0.25 $ 0.22 $ 0.30 Fiscal Year 2018: Net Sales $ 175,360 $ 178,614 $ 160,897 $ 189,683 Gross Profit 64,007 57,420 49,964 64,240 Net Income 10,957 7,378 5,850 10,254 Basic Earnings Per Share $ 0.29 $ 0.20 $ 0.16 $ 0.28 Diluted Earnings Per Share $ 0.29 $ 0.20 $ 0.16 $ 0.28 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | Schedule II. - Valuation and Qualifying Accounts Description Balance at Beginning of Year Additions (Reductions) to Expense Adjustments to Other Accounts Write-offs and Recoveries Balance at End of Year (Amounts in Thousands) Year Ended June 30, 2019 Valuation Allowances: Short-Term Receivables $ 1,317 $ 481 $ (115 ) $ (362 ) $ 1,321 Long-Term Notes Receivable $ 139 $ — $ (32 ) $ (22 ) $ 85 Deferred Tax Asset $ 860 $ — $ 126 $ (117 ) $ 869 Year Ended June 30, 2018 Valuation Allowances: Short-Term Receivables $ 1,626 $ (25 ) $ 204 $ (488 ) $ 1,317 Long-Term Notes Receivable $ 109 $ (3 ) $ 33 $ — $ 139 Deferred Tax Asset $ 643 $ — $ 326 $ (109 ) $ 860 Year Ended June 30, 2017 Valuation Allowances: Short-Term Receivables $ 2,145 $ (206 ) $ 101 $ (414 ) $ 1,626 Long-Term Notes Receivable $ 118 $ (9 ) $ — $ — $ 109 Deferred Tax Asset $ 687 $ — $ — $ (44 ) $ 643 |
Note 1. Summary of Significan_2
Note 1. Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated in the consolidation. |
Prior Period Reclassifications | 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 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. |
Operating Segments | Operating Segments: We sell a portfolio of furniture products and services under three predominant brands: Kimball, National, and Kimball Hospitality. We consider each of the three predominant brands to be operating segments which aggregate into one reportable segment. The brands operate within six market verticals, selling to similar types of customers. Our products and services are similar in nature and utilize similar production and distribution processes. Our three brands share similar long-term economic characteristics. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts included in the consolidated financial statements and related note disclosures. While efforts are made to assure estimates used are reasonably accurate based on management’s knowledge of current events, actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition: 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 the 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. Shipping and handling activities are recognized as fulfillment activities and are expensed at the time revenue is recognized. We recognize sales net of applicable sales taxes and similar revenue-based taxes. We use judgment in estimating the reduction in net sales driven by customer rebate and incentive programs. Judgments primarily include expected sales levels to be achieved and the corresponding rebate and incentive amounts expected to be earned by dealers and salespersons. We also use judgment in estimating a reserve for returns and allowances which is recorded at the time of the sale, based on estimated product returns and price concessions. The reserve for returns and allowances is recorded in Accrued Expenses on the Consolidated Balance Sheets, and the expense is recorded as a reduction of Net Sales in the Consolidated Statements of Income. We perform ongoing credit evaluations of our customers and impair receivable balances by recording specific allowances for bad debts based on judgment using factors such as current trends, the length of time the receivables are past due, and historical collection experience. The allowance for accounts receivable balances that are determined likely to be uncollectible are a reduction in the Receivables line of the Consolidated Balance Sheets, and the expense is recorded in Selling and Administrative Expenses in the Consolidated Statements of Income. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash equivalents consist primarily of highly liquid investments with original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist of bank accounts, money market funds, and commercial paper. Bank accounts are stated at cost, which approximates fair value, and money market funds and commercial paper are stated at fair value. |
Short-Term Investments | Short-Term Investments: Short-term investments consist primarily 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, some of which 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. All investments have maturities exceeding three months and are classified as available-for-sale securities which are recorded at fair value. 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 Shareholders’ Equity. |
Notes Receivable and Trade Accounts Receivable | Notes Receivable and Trade Accounts Receivable: Our notes receivable and trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. We determine on a case-by-case basis the cessation of accruing interest, the resumption of accruing interest, the method of recording payments received on nonaccrual receivables, and the delinquency status for our limited number of notes receivable. Our policy for estimating the allowance for credit losses on trade accounts receivable and notes receivable includes analysis of such items as aging, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to determine the final allowance for credit losses on the trade accounts receivable and notes receivable. Trade accounts receivable and notes receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Our limited amount of notes receivable allows management to monitor the risks, credit quality indicators, collectability, and probability of impairment on an individual basis. Adjustments to the allowance for credit losses are recorded in selling and administrative expenses. Customary terms require payment within 30 days , with terms beyond 30 days being considered extended. |
Inventories | Inventories: Inventories are stated at the lower of cost or market value. Cost includes material, labor, and applicable manufacturing overhead. Costs associated with underutilization of capacity are expensed as incurred. The last-in, first-out (“LIFO”) method was used for approximately 93% and 92% of consolidated inventories at June 30, 2019 and June 30, 2018 , respectively. The remaining inventories were valued using the first-in, first-out (“FIFO”) method and average cost method. Inventories are adjusted for excess and obsolete inventory. Evaluation of excess inventory includes such factors as anticipated usage, inventory turnover, inventory levels, and product demand levels. Factors considered when evaluating obsolescence include the age of on-hand inventory and reduction in value due to damage, use as showroom samples, design changes, or cessation of product lines. |
Property, Equipment, and Depreciation | Property, Equipment, and Depreciation: Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful life of the assets using the straight-line method for financial reporting purposes. Leasehold improvements are amortized on a straight-line basis over the shorter of the useful life of the improvement or the term of the lease. Major maintenance activities and improvements are capitalized; other maintenance, repairs, and minor renewals are expensed. Depreciation and expenses for maintenance, repairs and minor renewals are included in both the Cost of Sales line and the Selling and Administrative Expense line of the Consolidated Statements of Income. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: We perform reviews for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment is recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. When an impairment is identified, the carrying amount of the asset is reduced to its estimated fair value. Assets to be disposed of are recorded at the lower of net book value or fair market value less cost to sell at the date management commits to a plan of disposal. |
Goodwill and Intangible Assets, Goodwill, Policy | 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. |
Impairment or Disposal of Intangible Assets | Intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. |
Other Intangible Assets | 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 reengineering 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. |
Research and Development | Research and Development: The costs of research and development are expensed as incurred. |
Advertising | Advertising: Advertising costs are expensed as incurred. |
Insurance and Self-insurance | Insurance and Self-insurance: We are self-insured for certain employee health benefits including medical, short-term disability, and dental. Our self-insured reserves are estimated based upon a number of factors including known claims, estimated incurred but not reported claims, and other analyses, which are based on historical information along with certain assumptions about future events. We carry medical coverage for our eligible workforce not covered by self-insured plans. Insurance benefits are not provided to retired employees. We also participate, along with other companies, in a group captive insurance company (“Captive”). The Captive insures losses related to worker's compensation, motor vehicle liability, product liability, and general liability. The Captive reinsures catastrophic losses for all participants, including Kimball International, in excess of predetermined amounts. We pay premiums to the Captive which accumulate as a prepaid deposit estimated for losses related to the above coverage. We also maintain a reserve for outstanding unpaid workers’ compensation claims, including an estimate of incurred but not reported claims. Additionally, we purchase insurance coverage for property insurance, director and officer liability insurance, umbrella coverage, and other risks. |
Income Taxes | Income Taxes: Deferred income taxes are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The deferred taxes are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse. We evaluate the recoverability of deferred tax assets each quarter by assessing the likelihood of future taxable income and available tax planning strategies that could be implemented to realize our deferred tax assets. If recovery is not likely, we provide a valuation allowance based on our best estimate of future taxable income in the various taxing jurisdictions and the amount of deferred taxes ultimately realizable. Future events could change management’s assessment. We classify all deferred tax assets and liabilities as noncurrent in our consolidated balance sheets. |
Income Tax Uncertainties | We operate within multiple taxing jurisdictions and are subject to tax audits in these jurisdictions. These audits can involve complex uncertain tax positions, which may require an extended period of time to resolve. A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. We maintain a liability for uncertain income tax and other tax positions, including accrued interest and penalties on those positions. As tax positions are effectively settled, the tax liability is adjusted accordingly. We recognize interest and penalties related to unrecognized tax benefits in the Provision for Income Taxes line of the Consolidated Statements of Income. |
Concentrations of Credit Risk | Concentrations of Credit Risk: Certain business and credit risks are inherent in our business. We currently have notes receivable from independent dealership financing and other miscellaneous notes receivable. |
Off-Balance-Sheet Risk | Off-Balance Sheet Risk: Our off-balance sheet arrangements are limited to standby letters of credit and operating leases entered into in the normal course of business as described in Note 9 - Commitments and Contingent Liabilities of Notes to Consolidated Financial Statements. |
Non-operating Income and Expense | Non-operating Income and Expense: Non-operating income and expense include the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, amortization of actuarial income, foreign currency rate movements, bank charges, investment gain or loss, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain or loss on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. |
Foreign Currency Translation | Foreign Currency Translation: Our foreign operations use the U.S. Dollar as their functional currency. Foreign currency assets and liabilities are remeasured into functional currencies at end-of-period exchange rates, except for nonmonetary assets and equity, which are remeasured at historical exchange rates. Revenue and expenses are remeasured at the weighted average exchange rate during the fiscal year, except for expenses related to nonmonetary assets, which are remeasured at historical exchange rates. Gains and losses from foreign currency remeasurement are reported in the Non-operating income or expense line item on the Consolidated Statements of Income. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities: Derivative financial instruments are recognized on the balance sheet as assets and liabilities and are measured at fair value. Changes in the fair value of derivatives are recorded each period in earnings or accumulated other comprehensive income, depending on whether a derivative is designated and effective as part of a hedge transaction, and if it is, the type of hedge transaction. Hedge accounting is utilized when a derivative is expected to be highly effective upon execution and continues to be highly effective over the duration of the hedge transaction. Hedge accounting permits gains and losses on derivative instruments to be deferred in accumulated other comprehensive income and subsequently included in earnings in the periods in which earnings are affected by the hedged item, or when the derivative is determined to be ineffective. We have used derivatives primarily for forward purchases of foreign currency to manage exposure to the variability of cash flows, primarily related to the foreign exchange rate risks inherent in forecasted transactions denominated in foreign currency. |
Stock-Based Compensation | Stock-Based Compensation: As described in Note 12 - Stock Compensation Plans of Notes to Consolidated Financial Statements, we maintain a stock-based compensation plan which allows for the issuance of stock unit awards, restricted stock awards, stock options, stock appreciation rights, and other stock-based awards, each of which may include performance-based conditions, to certain employees, non-employee directors, consultants, and advisors. We recognize the cost resulting from share-based payment transactions using a fair-value-based method. The estimated fair value of outstanding performance shares and restricted share units is based on the stock price at the date of the grant. For performance shares, the price is reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding performance share awards. The estimated fair value of outstanding relative total shareholder return performance units (“RTSR”) is based on the grant date fair value of RTSR awards using a Monte Carlo simulation which includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. Stock-based compensation expense is recognized for the portion of the awards that are ultimately expected to vest. Forfeitures are recognized as they occur. |
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 adoption did not have a material effect on our consolidated financial statements. In August 2018, the Financial Accounting Standards Board (“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 early adopted the guidance in our fourth quarter of fiscal year 2019. The adoption did not have a material effect on our consolidated financial statements. In June 2018, the 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 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 a modification. 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 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 impacts 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 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 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 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 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 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 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 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 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. In May 2019, the FASB amended the new standard to allow entities to elect the fair value option on certain financial instruments that were previously recorded at amortized cost. The guidance is effective for our first quarter of fiscal year 2021 with early adoption in our fiscal year 2020 permitted. We have not yet determined the effect of this guidance on our consolidated financial statements. In 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 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. 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 record a right-of-use asset and a lease liability for all leases with a lease term of greater than twelve months. Upon implementation, we expect to record lease liabilities of approximately $25 million . 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. |
Note 3. Restructuring Expense (
Note 3. Restructuring Expense (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Restructuring Expense [Abstract] | |
Impairment of Long-Lived Assets | We utilized available market prices and management estimates to determine the fair value of impaired fixed assets. |
Note 4. Revenue (Policies)
Note 4. Revenue (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [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. |
Revenue, Transaction Price Measurement, Tax Exclusion | 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. |
Shipping and Handling Cost, Policy | 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 Consolidated Statements of Income. |
Note 9. Commitments and Conti_2
Note 9. Commitments and Contingent Liabilities (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [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 11. Employee Benefit Pla_2
Note 11. Employee Benefit Plans (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Postemployment Benefit Plans | The actuarial gain is amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits under the plans. |
Note 13. Fair Value (Policies)
Note 13. Fair Value (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Business Combinations Policy | In connection with the acquisition of D’style, we valued long-lived and intangible assets at their estimated fair values at the acquisition date. The fair value estimates for intangible assets were based upon assumptions related to the future cash flows and discount rates utilizing currently available information, and in some cases, valuation results from independent valuation specialists (Level 3 determination of fair value). Subsequent to the acquisition, we may 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 | 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 fiscal years 2019 and 2018 . |
Fair Value of Financial Instruments Policy Continued | Financial Instruments Recognized at Fair Value: The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents: 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 in a start-up phase. 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. |
Fair Value of Financial Instruments Not Carried at Fair Value | Financial Instruments Not Carried At Fair Value: Financial instruments that are not reflected in the Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk Equity securities without readily determinable fair value 3 Costs 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 15 - Investments of Notes to 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 15. Investments Investment
Note 15. Investments Investment (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Schedule of Investments [Abstract] | |
Investment, Policy | Our investment policy dictates that municipal bonds, U.S. Treasury and federal agency securities must be investment grade quality. |
Note 1. Summary of Significan_3
Note 1. Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Other Intangible Assets | A summary of intangible assets subject to amortization is as follows: June 30, 2019 June 30, 2018 (Amounts in Thousands) Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Capitalized Software $ 39,708 $ 36,662 $ 3,046 $ 38,482 $ 35,922 $ 2,560 Product Rights — — — 162 162 — Customer Relationships 7,050 1,030 6,020 7,050 422 6,628 Trade Names 3,570 595 2,975 3,570 238 3,332 Non-Compete Agreements 100 33 67 100 13 87 Other Intangible Assets $ 50,428 $ 38,320 $ 12,108 $ 49,364 $ 36,757 $ 12,607 |
Note 2. Acquisitions (Tables)
Note 2. Acquisitions (Tables) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Jun. 30, 2019 | |
Business Acquisition [Line Items] | ||
Schedule of Goodwill | The following summarizes our goodwill activity: Goodwill (Amounts in Thousands) Goodwill - June 30, 2017 $ — Goodwill - D’style, at acquisition date 8,559 Adjustments to purchase price allocation - D’style 265 Goodwill - June 30, 2018 $ 8,824 Goodwill - David Edward, at acquisition date 1,960 Adjustments to purchase price allocation - David Edward 151 Adjustments to purchase price allocation - D’style 225 Goodwill - June 30, 2019 $ 11,160 | |
David Edward | ||
Business Acquisition [Line Items] | ||
Schedule of Business Acquisitions, by Acquisition | A summary of the preliminary purchase price allocation is as follows: Purchase Price Allocation - David Edward (Amounts in Thousands) Assets: Receivables $ 542 Inventories 2,798 Prepaid expenses and other current assets 254 Net property and equipment 934 Goodwill 2,111 $ 6,639 Liabilities: Accounts payable $ 1,326 Customer deposits 878 Accrued expenses 147 $ 2,351 $ 4,288 | |
D'Style | ||
Business Acquisition [Line Items] | ||
Schedule of Business Acquisitions, by Acquisition | A summary of the purchase price allocation is as follows: Purchase Price Allocation - D’style (Amounts in Thousands) Assets: Receivables $ 1,242 Inventories 1,455 Prepaid expenses and other current assets 1,120 Net property and equipment 184 Goodwill 9,049 Other intangible assets 10,720 Deferred tax assets 302 $ 24,072 Liabilities: Accounts payable $ 774 Customer deposits 3,084 Accrued expenses 333 $ 4,191 $ 19,881 | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | Consideration (Amounts in Thousands) Cash $ 18,201 Contingent earn-out — fair value at acquisition date 1,680 Fair value of total consideration $ 19,881 |
Note 3. Restructuring Expense C
Note 3. Restructuring Expense Charges connected to 2019 Transformation Restructuring Plan (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | A summary of the charges recorded in connection with the fiscal year 2019 Transformation Restructuring Plan is as follows: Year Ended (Amounts in Thousands) June 30, 2019 Cash-related restructuring charges: Severance and other employee related costs $ 663 Other cash charges 203 Total cash-related restructuring charges $ 866 Non-cash charges: Transition stock compensation 71 Total non-cash charges $ 71 Total charges $ 937 |
Note 3. Restructuring Expense_2
Note 3. Restructuring Expense Current Period Activity in accrued restructuring related to 2019 Transformation Restructuring Plan (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Accrued Restructuring Charges Activity [Table Text Block] | A summary of the current period activity in accrued restructuring related to the fiscal year 2019 Transformation Restructuring Plan is as follows: (Amounts in Thousands) Severance and other employee related costs Other costs Total Balance at June 30, 2018 $ — $ — $ — Additions charged to expense 663 203 866 Cash payments charged against reserve (44 ) — (44 ) Non-cash adjustments — — — Balance at June 30, 2019 $ 619 $ 203 $ 822 |
Note 4. Revenue (Tables)
Note 4. Revenue (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following tables present the effects of the adoption of the new standard on prior period financial statements: Impact to Consolidated Statements of Income Year Ended June 30, 2018 (Amounts in Thousands) As Originally Reported Adoption of New Revenue Standard As Adjusted Net Sales $ 685,600 $ 18,954 $ 704,554 Cost of Sales 464,154 4,769 468,923 Gross Profit 221,446 14,185 235,631 Selling and Administrative Expenses 170,383 14,185 184,568 Operating Income 51,063 — 51,063 Operating Income as of Percent of Net Sales 7.4 % 7.2 % Year Ended June 30, 2017 (Amounts in Thousands) As Originally Reported Adoption of New Revenue Standard As Adjusted Net Sales $ 669,934 $ 23,033 $ 692,967 Cost of Sales 446,629 8,477 455,106 Gross Profit 223,305 14,556 237,861 Selling and Administrative Expenses 168,474 14,556 183,030 Restructuring (Gain) Expense (1,832 ) — (1,832 ) Operating Income 56,663 — 56,663 Operating Income as of Percent of Net Sales 8.5 % 8.2 % |
Schedule Of New Accounting Pronouncements And Changes In Accounting Principles2 [Table Text Block] | Impact to 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: Year Ended June 30 (Amounts in Millions) 2019 2018 2017 Commercial $ 226.1 $ 205.9 $ 203.2 Education 92.1 86.3 81.4 Finance 69.8 67.6 69.3 Government 74.7 89.5 87.1 Healthcare 110.4 88.6 98.2 Hospitality 195.0 166.7 153.8 Total Net Sales $ 768.1 $ 704.6 $ 693.0 |
Contract with Customer, Asset and Liability [Table Text Block] | Changes in the customer deposits during the year ended June 30, 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 116.6 Revenue recognized (113.3 ) Balance as of June 30, 2019 $ 24.6 |
Note 5. Earnings Per Share (Tab
Note 5. Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Year Ended June 30 (Amounts in Thousands, Except for Per Share Data) 2019 2018 2017 Net Income $ 39,344 $ 34,439 $ 37,506 Average Shares Outstanding for Basic EPS Calculation 36,842 37,314 37,334 Dilutive Effect of Average Outstanding Compensation Awards 222 180 499 Average Shares Outstanding for Diluted EPS Calculation 37,064 37,494 37,833 Basic Earnings Per Share $ 1.07 $ 0.92 $ 1.00 Diluted Earnings Per Share $ 1.06 $ 0.92 $ 0.99 |
Note 6. Income Taxes (Tables)
Note 6. Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | The components of the deferred tax assets and liabilities as of June 30, 2019 and 2018 , were as follows: (Amounts in Thousands) 2019 2018 Deferred Tax Assets: Receivables $ 698 $ 708 Inventory 275 428 Employee benefits 224 161 Deferred compensation 7,582 4,061 Other current liabilities 700 70 Warranty reserve 576 591 Tax credit carryforwards 2,463 2,168 Restructuring 211 — Goodwill 96 98 Net operating loss carryforward 1,740 2,179 Miscellaneous 1,902 2,135 Valuation Allowance (869 ) (860 ) Total asset $ 15,598 $ 11,739 Deferred Tax Liabilities: Property and equipment $ 6,152 $ 6,062 Miscellaneous 724 761 Total liability $ 6,876 $ 6,823 Net Deferred Tax Assets $ 8,722 $ 4,916 |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes is composed of the following items: Year Ended June 30 (Amounts in Thousands) 2019 2018 2017 Currently Payable: Federal $ 13,458 $ 6,592 $ 19,780 State 2,677 1,636 2,318 Total current $ 16,135 $ 8,228 $ 22,098 Deferred Taxes: Federal $ (3,270 ) $ 8,236 $ (1,761 ) State (539 ) 1,422 175 Total deferred $ (3,809 ) $ 9,658 $ (1,586 ) Total provision for income taxes $ 12,326 $ 17,886 $ 20,512 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. income tax rate to Kimball International’s effective income tax rate follows: Year Ended June 30 2019 2018 2017 (Amounts in Thousands) Amount % Amount % Amount % Tax provision computed at U.S. federal statutory rate $ 10,851 21.0 % $ 14,703 28.1 % $ 20,306 35.0 % State income taxes, net of federal income tax benefit 1,689 3.3 2,198 4.2 1,620 2.8 Domestic manufacturing deduction — — (617 ) (1.2 ) (1,495 ) (2.6 ) Research credit (300 ) (0.6 ) (180 ) (0.3 ) (218 ) (0.4 ) Remeasurement of tax assets and liabilities related to the Tax Act — — 1,839 3.5 — — Other - net 86 0.2 (57 ) (0.1 ) 299 0.6 Total provision for income taxes $ 12,326 23.9 % $ 17,886 34.2 % $ 20,512 35.4 % |
Summary of Income Tax Contingencies | Changes in the unrecognized tax benefit, excluding accrued interest and penalties, during fiscal years 2019 , 2018 , and 2017 were as follows: (Amounts in Thousands) 2019 2018 2017 Beginning balance - July 1 $ 989 $ 1,888 $ 2,077 Tax positions related to prior fiscal years: Additions 80 222 213 Reductions (222 ) (1,030 ) (581 ) Tax positions related to current fiscal year: Additions — — 391 Reductions — — — Settlements — — — Lapses in statute of limitations (94 ) (91 ) (212 ) Ending balance - June 30 $ 753 $ 989 $ 1,888 Portion that, if recognized, would reduce tax expense and effective tax rate $ 643 $ 832 $ 1,377 |
Accrued Interest and Penalties on Unrecognized Tax Benefits | Amounts accrued for interest and penalties were as follows: As of June 30 (Amounts in Thousands) 2019 2018 2017 Accrued Interest and Penalties: Interest $ 90 $ 70 $ 84 Penalties $ 101 $ 98 $ 102 |
Note 7. Inventories (Tables)
Note 7. Inventories (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventory components at June 30 were as follows: (Amounts in Thousands) 2019 2018 Finished products $ 26,304 $ 23,756 Work-in-process 2,455 1,378 Raw materials 34,335 29,158 Total FIFO inventory $ 63,094 $ 54,292 LIFO reserve, net (16,282 ) (14,783 ) Total inventory $ 46,812 $ 39,509 |
Note 8. Property and Equipment
Note 8. Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Major classes of property and equipment at June 30 consist of the following: (Amounts in Thousands) 2019 2018 Land $ 2,219 $ 2,219 Buildings and improvements 104,601 105,372 Machinery and equipment 157,575 152,653 Construction-in-progress 12,141 4,302 Total $ 276,536 $ 264,546 Less: Accumulated depreciation (185,865 ) (180,059 ) Property and equipment, net $ 90,671 $ 84,487 |
Useful Lives of Property and Equipment [Table Text Block] | The useful lives used in computing depreciation are based on estimated service lives for classes of property, as follows: Years Buildings and improvements 5 to 40 Machinery and equipment 2 to 20 Leasehold improvements Lesser of Useful Life or Term of Lease |
Note 9. Commitments and Conti_3
Note 9. Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Changes in the product warranty accrual during fiscal years 2019 , 2018 , and 2017 were as follows: (Amounts in Thousands) 2019 2018 2017 Product Warranty Liability at the beginning of the year $ 2,294 $ 1,992 $ 2,351 Additions to warranty accrual (including changes in estimates) 886 1,307 562 Settlements made (in cash or in kind) (942 ) (1,005 ) (921 ) Product Warranty Liability at the end of the year $ 2,238 $ 2,294 $ 1,992 |
Note 11. Employee Benefit Pla_3
Note 11. Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The components and changes in the Benefit Obligation, Accumulated Other Comprehensive Income (Loss), and Net Periodic Benefit Cost are as follows: June 30 (Amounts in Thousands) 2019 2018 Changes and Components of Benefit Obligation: Benefit obligation at beginning of year $ 2,719 $ 3,083 Service cost 506 521 Interest cost 89 85 Actuarial (gain) loss for the period (484 ) (895 ) Benefits paid (46 ) (75 ) Benefit obligation at end of year $ 2,784 $ 2,719 Balance in current liabilities $ 506 $ 494 Balance in noncurrent liabilities 2,278 2,225 Total benefit obligation recognized in the Consolidated Balance Sheets $ 2,784 $ 2,719 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | June 30 (Amounts in Thousands) 2019 2018 Changes and Components in Accumulated Other Comprehensive Income (Loss) (before tax): Accumulated Other Comprehensive Income (Loss) at beginning of year $ 2,494 $ 1,859 Net change in unrecognized actuarial gain (loss) 80 635 Accumulated Other Comprehensive Income (Loss) at end of year $ 2,574 $ 2,494 |
Schedule of Net Benefit Costs | (Amounts in Thousands) Year Ended June 30 Components of Net Periodic Benefit Cost (before tax): 2019 2018 2017 Service cost $ 506 $ 521 $ 482 Interest cost 89 85 65 Amortization of actuarial (gain) loss (404 ) (260 ) (473 ) Net periodic benefit cost — Total cost $ 191 $ 346 $ 74 |
Severance Plan Assumptions, Year End [Table Text Block] | Assumptions used to determine fiscal year end benefit obligations are as follows: 2019 2018 Discount Rate 2.8% 3.4% Rate of Compensation Increase 3.0% 3.0% |
Severance Plan Assumptions, Weighted Average | Weighted average assumptions used to determine fiscal year net periodic benefit costs are as follows: 2019 2018 2017 Discount Rate 3.2% 3.0% 2.4% Rate of Compensation Increase 3.0% 3.0% 3.0% |
Note 12. Stock Compensation P_2
Note 12. Stock Compensation Plans (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Stock Compensation Plans [Abstract] | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest | A summary of performance share activity during fiscal year 2019 is presented below: Number of Shares (1) Weighted Average Grant Date Fair Value Performance Shares outstanding at July 1, 2018 104,223 $16.52 Granted 116,598 $16.13 Vested (143,543 ) $16.33 Forfeited (49,555 ) $16.13 Performance Shares outstanding at June 30, 2019 27,723 $16.12 (1) The shares granted include the maximum number of shares that may vest under performance share awards; however, the actual number of shares which vest is determined based on the satisfaction of performance conditions, and therefore may be significantly lower. The shares vested include the earned number of shares to be issued based on performance conditions, while shares forfeited include shares that will not be issued as a result of not fully attaining the maximum performance conditions. |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Relative Total Shareholder Return Performance Units, Vested and Expected to Vest | A summary of RTSR activity during fiscal year 2019 is presented below: Number of Shares (1) Weighted Average Grant Date Fair Value RTSRs outstanding at July 1, 2018 130,640 $18.94 Granted 140,914 $21.43 Vested (67,130 ) $17.23 Forfeited (29,512 ) $20.18 RTSRs outstanding at June 30, 2019 174,912 $21.31 (1) The shares granted include the maximum number of shares that may vest under RTSR awards; however, the actual number of shares which vest is determined based on the satisfaction of performance conditions, and therefore may be significantly lower. The shares vested include the earned number of shares to be issued based on performance conditions, while shares forfeited include shares that will not be issued as a result of not fully attaining the maximum performance conditions. |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of RSU activity during fiscal year 2019 is presented below: Number of Shares Weighted Average Grant Date Fair Value RSUs outstanding at July 1, 2018 201,826 $15.10 Granted 318,822 $16.38 Vested (149,323 ) $14.61 Forfeited (47,298 ) $15.43 RSUs outstanding at June 30, 2019 324,027 $16.54 |
Note 13. Fair Value (Tables)
Note 13. Fair Value (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents: 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 in a start-up phase. 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 June 30, 2019 and June 30, 2018 , the fair values of financial assets and liabilities that are measured at fair value on a recurring basis using the market or income approach are categorized as follows: (Amounts in Thousands) June 30, 2019 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 40,016 $ — $ — $ 40,016 Cash equivalents: Commercial paper — 29,408 — 29,408 Available-for-sale securities: Secondary market certificates of deposit — 11,230 — 11,230 Available-for-sale securities: Municipal bonds — 1,922 — 1,922 Available-for-sale securities: U.S. Treasury and federal agencies — 19,919 — 19,919 Trading Securities: Mutual funds in nonqualified SERP 11,774 — — 11,774 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 51,790 $ 62,479 $ 1,500 $ 115,769 Liabilities Contingent earn-out liability — — 360 360 Total liabilities at fair value $ — $ — $ 360 $ 360 (Amounts in Thousands) June 30, 2018 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 of Financial Instruments Not Carried at Fair Value [Text Block] | Financial instruments that are not reflected in the Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk Equity securities without readily determinable fair value 3 Costs 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 14. Derivative Instrumen_2
Note 14. Derivative Instruments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Fair Values of Derivative Instruments on the Consolidated Balance Sheets Asset Derivatives Liability Derivatives Fair Value As of Fair Value As of (Amounts in Thousands) Balance Sheet Location June 30 June 30 Balance Sheet Location June 30 June 30 Derivatives designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets $ — $ — 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 15. Investments (Tables)
Note 15. Investments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Investments Classified by Contractual Maturity Date | 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): June 30, 2019 (Amounts in Thousands) Certificates of Deposit Municipal Bonds U.S. Treasury and Federal Agencies Within one year $ 6,735 $ 1,922 $ 19,919 After one year through two years 4,495 — — Total Fair Value $ 11,230 $ 1,922 $ 19,919 |
Unrealized Gain (Loss) on Investments | June 30, 2019 (Amounts in Thousands) Certificates of Deposit Municipal Bonds U.S. Treasury and Federal Agencies Amortized cost basis $ 11,230 $ 1,921 $ 19,888 Unrealized holding gains — 1 31 Unrealized holding losses — — — Fair Value $ 11,230 $ 1,922 $ 19,919 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: June 30 (Amounts in Thousands) 2019 2018 SERP investments - current asset $ 3,087 $ 3,868 SERP investments - other long-term asset 8,687 8,246 Total SERP investments $ 11,774 $ 12,114 SERP obligation - current liability $ 3,087 $ 3,868 SERP obligation - other long-term liability 8,687 8,246 Total SERP obligation $ 11,774 $ 12,114 |
Note 16. Accrued Expenses (Tabl
Note 16. Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses consisted of: June 30 (Amounts in Thousands) 2019 2018 Compensation $ 24,582 $ 22,045 Selling 8,148 7,134 Employer retirement contribution 7,032 5,605 Taxes 4,115 3,598 Insurance 3,821 4,210 Restructuring 822 — Rent 3,163 2,997 Other expenses 5,811 4,997 Total accrued expenses $ 57,494 $ 50,586 |
Note 17. Geographic Informati_2
Note 17. Geographic Information (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Geographic Areas, Revenues from External Customers [Abstract] | |
Schedule of Revenue from External Customers, by Geographical Areas | The following geographic area data includes net sales based on the location where title transfers. Year Ended June 30 (Amounts in Thousands) 2019 2018 2017 Net Sales: United States $ 755,878 $ 691,766 $ 681,484 Foreign 12,192 12,788 11,483 Total Net Sales $ 768,070 $ 704,554 $ 692,967 |
Note 18. Accumulated Other Co_2
Note 18. Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | During fiscal year 2019 and 2018 , the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: (Amounts in Thousands) Unrealized Investment Gain (Loss) Postemployment Benefits Net Actuarial Gain (Loss) Derivative Gain (Loss) Accumulated Other Comprehensive Income Balance at June 30, 2017 $ (21 ) $ 1,136 $ — $ 1,115 Other comprehensive income (loss) before reclassifications (8 ) 599 (7 ) 584 Reclassification to (earnings) loss 3 (176 ) — (173 ) Net current-period other comprehensive income (loss) (5 ) 423 (7 ) 411 Reclassification of change in enacted income tax rate to retained earnings $ (5 ) $ 295 $ — $ 290 Balance at June 30, 2018 $ (31 ) $ 1,854 $ (7 ) $ 1,816 Other comprehensive income (loss) before reclassifications 54 360 (9 ) 405 Reclassification to (earnings) loss — (300 ) 16 (284 ) Net current-period other comprehensive income (loss) 54 60 7 121 Balance at June 30, 2019 $ 23 $ 1,914 $ — $ 1,937 |
Reclassification out of Accumulated Other Comprehensive Income | The following reclassifications were made from Accumulated Other Comprehensive Income to the Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income Fiscal Year Ended Affected Line Item in the Consolidated Statements of Income June 30, (Amounts in Thousands) 2019 2018 Realized Investment Gain (Loss) on available-for-sale securities (1) $ — $ (4 ) Non-operating income (expense), net — 1 Benefit (Provision) for Income Taxes $ — $ (3 ) Net Income Postemployment Benefits Amortization of Actuarial Gain (2) $ — $ 168 Cost of Sales — 92 Selling and Administrative Expenses 404 — Non-operating income (expense), net (104 ) (84 ) Benefit (Provision) for Income Taxes $ 300 $ 176 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 $ 284 $ 173 Net Income Amounts in parentheses indicate reductions to income. (1) See Note 15 - Investments of Notes to Consolidated Financial Statements for further information on available-for-sale securities. (2) See Note 11 - Employee Benefit Plans of Notes to Consolidated Financial Statements for further information on postemployment benefit plans. (3) See Note 14 - Derivative Instruments of Notes to Consolidated Financial Statements for further information on derivative instruments. |
Note 20. Credit Quality and A_2
Note 20. Credit Quality and Allowance for Credit Losses of Notes Receivable (Tables) | 12 Months Ended |
Jun. 30, 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 June 30, 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 $ 1,010 $ — $ 1,010 $ 666 $ 50 $ 616 Other Notes Receivable 122 122 — 183 183 — Total $ 1,132 $ 122 $ 1,010 $ 849 $ 233 $ 616 |
Note 21. Quarterly Financial _2
Note 21. Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Three Months Ended (Amounts in Thousands, Except for Per Share Data) September 30 December 31 March 31 June 30 Fiscal Year 2019: Net Sales $ 194,123 $ 201,008 $ 177,369 $ 195,570 Gross Profit 65,873 64,989 56,561 67,129 Restructuring (Gain) Expense — — — 937 Net Income 10,876 9,405 7,954 11,109 Basic Earnings Per Share $ 0.29 $ 0.26 $ 0.22 $ 0.30 Diluted Earnings Per Share $ 0.29 $ 0.25 $ 0.22 $ 0.30 Fiscal Year 2018: Net Sales $ 175,360 $ 178,614 $ 160,897 $ 189,683 Gross Profit 64,007 57,420 49,964 64,240 Net Income 10,957 7,378 5,850 10,254 Basic Earnings Per Share $ 0.29 $ 0.20 $ 0.16 $ 0.28 Diluted Earnings Per Share $ 0.29 $ 0.20 $ 0.16 $ 0.28 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Schedule II. - Valuation and Qualifying Accounts Description Balance at Beginning of Year Additions (Reductions) to Expense Adjustments to Other Accounts Write-offs and Recoveries Balance at End of Year (Amounts in Thousands) Year Ended June 30, 2019 Valuation Allowances: Short-Term Receivables $ 1,317 $ 481 $ (115 ) $ (362 ) $ 1,321 Long-Term Notes Receivable $ 139 $ — $ (32 ) $ (22 ) $ 85 Deferred Tax Asset $ 860 $ — $ 126 $ (117 ) $ 869 Year Ended June 30, 2018 Valuation Allowances: Short-Term Receivables $ 1,626 $ (25 ) $ 204 $ (488 ) $ 1,317 Long-Term Notes Receivable $ 109 $ (3 ) $ 33 $ — $ 139 Deferred Tax Asset $ 643 $ — $ 326 $ (109 ) $ 860 Year Ended June 30, 2017 Valuation Allowances: Short-Term Receivables $ 2,145 $ (206 ) $ 101 $ (414 ) $ 1,626 Long-Term Notes Receivable $ 118 $ (9 ) $ — $ — $ 109 Deferred Tax Asset $ 687 $ — $ — $ (44 ) $ 643 |
Note 1. Summary of Significan_4
Note 1. Summary of Significant Accounting Policies - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Other Intangible Assets | ||
Other Intangible Assets, Cost | $ 50,428 | $ 49,364 |
Other Intangible Assets, Accumulated Amortization | 38,320 | 36,757 |
Other Intangible Assets, Net Value | 12,108 | 12,607 |
Capitalized Software | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 39,708 | 38,482 |
Other Intangible Assets, Accumulated Amortization | 36,662 | 35,922 |
Other Intangible Assets, Net Value | 3,046 | 2,560 |
Product Rights | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 0 | 162 |
Other Intangible Assets, Accumulated Amortization | 0 | 162 |
Other Intangible Assets, Net Value | 0 | 0 |
Customer Relationships | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 7,050 | 7,050 |
Other Intangible Assets, Accumulated Amortization | 1,030 | 422 |
Other Intangible Assets, Net Value | 6,020 | 6,628 |
Trade Names | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 3,570 | 3,570 |
Other Intangible Assets, Accumulated Amortization | 595 | 238 |
Other Intangible Assets, Net Value | 2,975 | 3,332 |
Noncompete Agreements | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 100 | 100 |
Other Intangible Assets, Accumulated Amortization | 33 | 13 |
Other Intangible Assets, Net Value | $ 67 | $ 87 |
Note 1. Summary of Significan_5
Note 1. Summary of Significant Accounting Policies - Textuals (Details) - USD ($) | 12 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2019 | Oct. 26, 2018 | Nov. 06, 2017 | |
Goodwill | $ 11,160,000 | $ 8,824,000 | $ 0 | |||
Investment Owned, at Cost | 2,000,000 | |||||
Goodwill, Impairment Loss | $ 0 | $ 0 | ||||
Accounts Receivable, Customary Payment Terms | 30 days | |||||
Accounts Receivable, Days Beyond Which Terms Are Considered Extended Payment Terms | 30 days | |||||
LIFO Inventory as a Percentage of Consolidated Inventory | 93.00% | 92.00% | ||||
Amortization | $ 1,777,000 | $ 1,769,000 | 1,071,000 | |||
Other Intangible Assets, Future Amortization Expense, Year One | 2,091,000 | |||||
Other Intangible Assets, Future Amortization Expense, Year Two | 1,843,000 | |||||
Other Intangible Assets, Future Amortization Expense, Year Three | 1,504,000 | |||||
Other Intangible Assets, Future Amortization Expense, Year Four | 1,264,000 | |||||
Other Intangible Assets, Future Amortization Expense, Year Five | 1,108,000 | |||||
Other Intangible Assets, Future Amortization Expense, after Year Five | 4,298,000 | |||||
Indefinite-Lived Intangible Assets | 0 | |||||
Research and Development Costs | 6,000,000 | 7,000,000 | 7,000,000 | |||
Advertising Costs | 4,900,000 | 5,800,000 | $ 4,300,000 | |||
Notes Receivable, Unpaid Balance | 1,132,000 | 849,000 | ||||
Derivative Asset, Fair Value, Gross Asset | $ 1,500,000 | 1,500,000 | ||||
Capitalized Software | Minimum | ||||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||||
Capitalized Software | 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 | |||||
Noncompete Agreements | ||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||||
Fair Value, Measurements, Recurring | Stock Warrant | ||||||
Derivative Asset, Fair Value, Gross Asset | $ 1,500,000 | 1,500,000 | ||||
Fair Value, Measurements, Recurring | Not Designated as Hedging Instrument | Other Assets | Stock Warrant | ||||||
Derivative Asset, Fair Value, Gross Asset | 1,500,000 | 1,500,000 | ||||
David Edward | ||||||
Goodwill | 2,111,000 | $ 1,960,000 | ||||
D'Style | ||||||
Goodwill | 9,049,000 | 8,800,000 | $ 8,559,000 | |||
Goodwill, Other Increase (Decrease) | $ 200,000 | |||||
Intangible Assets, Gross (Excluding Goodwill) | $ 10,700,000 | |||||
Forecast | ||||||
Operating Lease, Liability | $ 25,000,000 |
Note 2. Acquisitions Acquisitio
Note 2. Acquisitions Acquisition Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Nov. 06, 2017 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 600 | |||||||||||
Contingent earn-out — fair value at acquisition date | $ 1,100 | 1,100 | $ 1,700 | |||||||||
Net Sales | $ 195,570 | $ 177,369 | $ 201,008 | $ 194,123 | 189,683 | $ 160,897 | $ 178,614 | $ 175,360 | $ 768,070 | 704,554 | $ 692,967 | |
Net Income | (11,109) | $ (7,954) | $ (9,405) | $ (10,876) | (10,254) | $ (5,850) | $ (7,378) | $ (10,957) | $ (39,344) | (34,439) | $ (37,506) | |
Goodwill tax amortization period | 15 years | |||||||||||
David Edward | ||||||||||||
Acquisition Purchase Price | $ 4,300 | |||||||||||
Net Sales | 9,400 | |||||||||||
Net Income | (1,700) | |||||||||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | 500 | |||||||||||
D'Style | ||||||||||||
Acquisition Purchase Price | 18,200 | |||||||||||
Business Combination, Contingent Consideration Arrangements, Payment | 400 | |||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 600 | |||||||||||
Contingent earn-out — fair value at acquisition date | $ 400 | $ 1,100 | 400 | 1,100 | 1,680 | |||||||
Net Sales | 20,200 | 13,000 | ||||||||||
Net Income | 700 | 800 | ||||||||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | 800 | |||||||||||
Selling and Administrative Expenses | ||||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 800 | |||||||||||
Selling and Administrative Expenses | D'Style | ||||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 300 | 800 | ||||||||||
Interest Expense | ||||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (200) | |||||||||||
Interest Expense | D'Style | ||||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 200 | |||||||||||
Maximum | ||||||||||||
Contingent earn-out — fair value at acquisition date | 2,200 | |||||||||||
Maximum | D'Style | ||||||||||||
Contingent earn-out — fair value at acquisition date | $ 2,200 |
Note 2. Acquisitions Schedule o
Note 2. Acquisitions Schedule of Purchase Price Allocation, David Edward (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Oct. 26, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
ASSETS | ||||
Goodwill | $ 11,160 | $ 8,824 | $ 0 | |
David Edward | ||||
ASSETS | ||||
Receivables | 542 | |||
Inventories | 2,798 | |||
Prepaid expenses and other current assets | 254 | |||
Net property and equipment | 934 | |||
Goodwill | 2,111 | $ 1,960 | ||
Acquisition, Assets Acquired | 6,639 | |||
Liabilities | ||||
Accounts payable | 1,326 | |||
Customer deposits | 878 | |||
Accrued expenses | 147 | |||
Acquisition, Liabilities Acquired | 2,351 | |||
Total Consideration Paid | $ 4,288 |
Note 2. Acquisitions Schedule_2
Note 2. Acquisitions Schedule of Purchase Price Allocation, D'style (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Nov. 06, 2017 | Jun. 30, 2017 |
ASSETS | ||||
Goodwill | $ 11,160 | $ 8,824 | $ 0 | |
D'Style | ||||
ASSETS | ||||
Receivables | 1,242 | |||
Inventories | 1,455 | |||
Prepaid expenses and other current assets | 1,120 | |||
Net property and equipment | 184 | |||
Goodwill | 9,049 | $ 8,800 | $ 8,559 | |
Other intangible assets | 10,720 | |||
Deferred Tax Assets | 302 | |||
Acquisition, Assets Acquired | 24,072 | |||
Liabilities | ||||
Accounts payable | 774 | |||
Customer deposits | 3,084 | |||
Accrued expenses | 333 | |||
Acquisition, Liabilities Acquired | 4,191 | |||
Total Consideration Paid | $ 19,881 | $ 19,881 |
Note 2. Acquisitions Schedule_3
Note 2. Acquisitions Schedule of Consideration for Acquisition (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Nov. 06, 2017 | |
Business Acquisition, Contingent Consideration [Line Items] | ||||
Cash | $ 4,288 | $ 18,201 | $ 0 | |
Contingent earn-out — fair value at acquisition date | 1,100 | $ 1,700 | ||
D'Style | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Cash | 18,201 | |||
Contingent earn-out — fair value at acquisition date | 400 | $ 1,100 | 1,680 | |
Total Consideration Paid | $ 19,881 | $ 19,881 |
Note 2. Acquisitions Schedule_4
Note 2. Acquisitions Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Oct. 26, 2018 | Nov. 06, 2017 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 11,160 | $ 8,824 | $ 0 | ||
David Edward | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 2,111 | $ 1,960 | |||
Adjustments to purchase price allocation | 151 | ||||
D'Style | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 9,049 | 8,800 | $ 8,559 | ||
Adjustments to purchase price allocation | $ 225 | $ 265 |
Note 3. Restructuring Expense -
Note 3. Restructuring Expense - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Expense and Other Related Items | |||||||
Restructuring (Gain) Expense | $ 937 | $ 0 | $ 0 | $ 0 | $ 937 | $ 0 | $ (1,832) |
Restructuring Reserve, Current | 822 | 822 | 0 | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 1,117 | 2,050 | $ 3,148 | ||||
Percentage of Restructuring Costs Expected in Cash | 65.00% | 91.00% | |||||
Severance and other employee related costs | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring and Related Cost, Cost Incurred to Date | $ 4,900 | ||||||
Plant Closure and Other Exit Costs | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring and Related Cost, Cost Incurred to Date | 6,900 | ||||||
Asset Write-Downs | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring and Related Cost, Cost Incurred to Date | 1,100 | ||||||
Fiscal 2019 Transformation Restructuring Plan | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring (Gain) Expense | $ 937 | ||||||
Restructuring Reserve, Current | 822 | 822 | 0 | ||||
Annual Pre-tax Operating Income Savings | 10,000 | ||||||
Fiscal 2019 Transformation Restructuring Plan | Severance and other employee related costs | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring Reserve, Current | 619 | 619 | 0 | ||||
Fiscal 2019 Transformation Restructuring Plan | Plant Closure and Other Exit Costs | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring Reserve, Current | 203 | 203 | $ 0 | ||||
FY 2015 Post Falls Restructuring Plan | |||||||
Restructuring Expense and Other Related Items | |||||||
Annual Pre-tax Operating Income Savings | 5,000 | ||||||
Post Falls Land and Facility | |||||||
Restructuring Expense and Other Related Items | |||||||
Gain (Loss) on Disposition of Property Plant Equipment | 2,100 | ||||||
Post Falls Land and Facility | |||||||
Restructuring Expense and Other Related Items | |||||||
Proceeds from Sale of Buildings | 12,000 | ||||||
Restructuring (Gain) Expense | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring and Related Cost, Cost Incurred to Date | $ 10,800 | ||||||
Minimum | Fiscal 2019 Transformation Restructuring Plan | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring and Related Cost, Expected Cost | 8,000 | 8,000 | |||||
Minimum | Fiscal 2019 Transformation Restructuring Plan | Severance and other employee related costs | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring and Related Cost, Expected Cost | 3,500 | 3,500 | |||||
Minimum | Fiscal 2019 Transformation Restructuring Plan | Facility exit and other costs | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring and Related Cost, Expected Cost | 2,000 | 2,000 | |||||
Minimum | Fiscal 2019 Transformation Restructuring Plan | Lease asset impairment | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring and Related Cost, Expected Cost | 2,500 | 2,500 | |||||
Maximum | Fiscal 2019 Transformation Restructuring Plan | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring and Related Cost, Expected Cost | 9,000 | 9,000 | |||||
Maximum | Fiscal 2019 Transformation Restructuring Plan | Severance and other employee related costs | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring and Related Cost, Expected Cost | 3,800 | 3,800 | |||||
Maximum | Fiscal 2019 Transformation Restructuring Plan | Facility exit and other costs | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring and Related Cost, Expected Cost | 2,500 | 2,500 | |||||
Maximum | Fiscal 2019 Transformation Restructuring Plan | Lease asset impairment | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring and Related Cost, Expected Cost | $ 2,700 | $ 2,700 |
Note 3. Restructuring Expense_3
Note 3. Restructuring Expense - Fiscal 2019 Transformation Restructuring Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Expense and Other Related Items | |||||||
Restructuring (Gain) Expense | $ 937 | $ 0 | $ 0 | $ 0 | $ 937 | $ 0 | $ (1,832) |
Fiscal 2019 Transformation Restructuring Plan | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring (Gain) Expense | 937 | ||||||
Cash-related restructuring charges | Fiscal 2019 Transformation Restructuring Plan | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring (Gain) Expense | 866 | ||||||
Cash-related restructuring charges | Severance and other employee related costs | Fiscal 2019 Transformation Restructuring Plan | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring (Gain) Expense | 663 | ||||||
Cash-related restructuring charges | Other Charges | Fiscal 2019 Transformation Restructuring Plan | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring (Gain) Expense | 203 | ||||||
Non-cash related restructuring charges | Fiscal 2019 Transformation Restructuring Plan | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring (Gain) Expense | 71 | ||||||
Non-cash related restructuring charges | Transition stock compensation | Fiscal 2019 Transformation Restructuring Plan | |||||||
Restructuring Expense and Other Related Items | |||||||
Restructuring (Gain) Expense | $ 71 |
Note 3. Restructuring Expense_4
Note 3. Restructuring Expense - Fiscal 2019 Transformation Restructuring Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring Cost and Reserve | ||
Restructuring Reserve, Current | $ 822 | $ 0 |
Fiscal 2019 Transformation Restructuring Plan | ||
Restructuring Cost and Reserve | ||
Restructuring Reserve, Current | 822 | 0 |
Restructuring Expense, additions charged to expense | 866 | |
Cash payments charged against reserve | (44) | |
Non-cash adjustments | 0 | |
Severance and other employee related costs | Fiscal 2019 Transformation Restructuring Plan | ||
Restructuring Cost and Reserve | ||
Restructuring Reserve, Current | 619 | 0 |
Restructuring Expense, additions charged to expense | 663 | |
Cash payments charged against reserve | (44) | |
Non-cash adjustments | 0 | |
Other Charges | Fiscal 2019 Transformation Restructuring Plan | ||
Restructuring Cost and Reserve | ||
Restructuring Reserve, Current | 203 | $ 0 |
Restructuring Expense, additions charged to expense | 203 | |
Cash payments charged against reserve | 0 | |
Non-cash adjustments | $ 0 |
Note 4. Revenue -Revenue Textua
Note 4. Revenue -Revenue Textuals (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Accounts Receivable, Customary Payment Terms | 30 days | |||
Accounts Receivable, Credit Loss Expense (Reversal) | $ 500,000 | $ 0 | $ 300,000 | |
Contract with Customer, Liability, Revenue Recognized | $ 20,900,000 | 20,400,000 | ||
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] | true | |||
Revenue, Practical Expedient, Financing Component [true false] | true | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0 | |||
Selling and Administrative Expenses | ||||
Capitalized Contract Cost, Amortization | $ 400,000 | 300,000 | $ 100,000 | |
Other Noncurrent Assets | ||||
Capitalized Contract Cost, Net | 200,000 | 300,000 | ||
Prepaid Expenses and Other Current Assets | ||||
Capitalized Contract Cost, Net | $ 200,000 | $ 300,000 |
Note 4. Revenue -Impact to Cons
Note 4. Revenue -Impact to Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Sales | $ 195,570 | $ 177,369 | $ 201,008 | $ 194,123 | $ 189,683 | $ 160,897 | $ 178,614 | $ 175,360 | $ 768,070 | $ 704,554 | $ 692,967 |
Cost of Sales | 513,518 | 468,923 | 455,106 | ||||||||
Gross Profit | 67,129 | 56,561 | 64,989 | 65,873 | $ 64,240 | $ 49,964 | $ 57,420 | $ 64,007 | 254,552 | 235,631 | 237,861 |
Selling and Administrative Expenses | 204,140 | 184,568 | 183,030 | ||||||||
Restructuring (Gain) Expense | $ 937 | $ 0 | $ 0 | $ 0 | 937 | 0 | (1,832) | ||||
Operating Income | $ 49,475 | $ 51,063 | $ 56,663 | ||||||||
Operating Income as Percent of Sales | 7.20% | 8.20% | |||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Net Sales | $ 685,600 | $ 669,934 | |||||||||
Cost of Sales | 464,154 | 446,629 | |||||||||
Gross Profit | 221,446 | 223,305 | |||||||||
Selling and Administrative Expenses | 170,383 | 168,474 | |||||||||
Restructuring (Gain) Expense | (1,832) | ||||||||||
Operating Income | $ 51,063 | $ 56,663 | |||||||||
Operating Income as Percent of Sales | 7.40% | 8.50% | |||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
Net Sales | $ 18,954 | $ 23,033 | |||||||||
Cost of Sales | 4,769 | 8,477 | |||||||||
Gross Profit | 14,185 | 14,556 | |||||||||
Selling and Administrative Expenses | 14,185 | 14,556 | |||||||||
Restructuring (Gain) Expense | 0 | ||||||||||
Operating Income | $ 0 | $ 0 |
Note 4. Revenue -Impact to Co_2
Note 4. Revenue -Impact to Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Receivables, net of allowances of $1,321 and $1,317, respectively | $ 63,120 | $ 62,276 |
Accrued expenses | $ 57,494 | 50,586 |
Calculated under Revenue Guidance in Effect before Topic 606 | ||
Receivables, net of allowances of $1,321 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 $1,321 and $1,317, respectively | 1,292 | |
Accrued expenses | $ 1,292 |
Note 4. Revenue -Disaggregation
Note 4. Revenue -Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Sales | $ 195,570 | $ 177,369 | $ 201,008 | $ 194,123 | $ 189,683 | $ 160,897 | $ 178,614 | $ 175,360 | $ 768,070 | $ 704,554 | $ 692,967 |
Commercial | |||||||||||
Net Sales | 226,100 | 205,900 | 203,200 | ||||||||
Education | |||||||||||
Net Sales | 92,100 | 86,300 | 81,400 | ||||||||
Finance | |||||||||||
Net Sales | 69,800 | 67,600 | 69,300 | ||||||||
Government | |||||||||||
Net Sales | 74,700 | 89,500 | 87,100 | ||||||||
Healthcare | |||||||||||
Net Sales | 110,400 | 88,600 | 98,200 | ||||||||
Hospitality | |||||||||||
Net Sales | $ 195,000 | $ 166,700 | $ 153,800 |
Note 4. Revenue -Changes in Cus
Note 4. Revenue -Changes in Customer Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Customer deposits | $ 24,611 | $ 21,253 |
Contract with Customer, Liability, Explanation of Change, Increases due to Deposits Received, Net of Other Adjustments | 116,600 | |
Contract with Customer, Liability, Explanation of Change, Reduction due to Revenue Recognized during Period | $ (113,300) |
Note 5. Earnings Per Share - Ea
Note 5. Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Income | $ 11,109 | $ 7,954 | $ 9,405 | $ 10,876 | $ 10,254 | $ 5,850 | $ 7,378 | $ 10,957 | $ 39,344 | $ 34,439 | $ 37,506 |
Average Shares Outstanding for Basic EPS Calculation | 36,842 | 37,314 | 37,334 | ||||||||
Dilutive Effect of Average Outstanding Compensation Awards | 222 | 180 | 499 | ||||||||
Average Shares Outstanding for Diluted EPS Calculation | 37,064 | 37,494 | 37,833 | ||||||||
Basic Earnings Per Share | $ 0.30 | $ 0.22 | $ 0.26 | $ 0.29 | $ 0.28 | $ 0.16 | $ 0.20 | $ 0.29 | $ 1.07 | $ 0.92 | $ 1 |
Diluted Earnings Per Share | $ 0.30 | $ 0.22 | $ 0.25 | $ 0.29 | $ 0.28 | $ 0.16 | $ 0.20 | $ 0.29 | $ 1.06 | $ 0.92 | $ 0.99 |
Note 6. Income Taxes - Textuals
Note 6. Income Taxes - Textuals (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 28.10% | 35.00% |
Tax benefit associated with net operating losses | $ 1,740,000 | ||
Tax Credit Carryforwards | 2,463,000 | ||
Valuation Allowance, Operating Loss Carryforwards | 407,000 | ||
Valuation Allowance, Tax Credit Carryforwards, Foreign | 462,000 | ||
Income Taxes net tax paid (refunded) | 10,225,000 | $ 13,937,000 | $ 20,881,000 |
Unrecognized Tax Benefits, Interest and Penalties income (expense) | 23,000 | $ 11,000 | $ 23,000 |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 0 | ||
Undistributed Earnings of Foreign Subsidiaries | $ 1,300,000 |
Note 6. Income Taxes - Componen
Note 6. Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Deferred Tax Assets: | ||
Deferred Tax Assets, Receivables | $ 698 | $ 708 |
Deferred Tax Assets, Inventory | 275 | 428 |
Deferred Tax Assets, Employee Benefits | 224 | 161 |
Deferred Tax Assets, Deferred Compensation | 7,582 | 4,061 |
Deferred Tax Assets, Other Current Liabilities | 700 | 70 |
Deferred Tax Assets, Warranty Reserves | 576 | 591 |
Deferred Tax Assets, Tax Credit Carryforwards | 2,463 | 2,168 |
Deferred Tax Assets, Restructuring | 211 | 0 |
Deferred Tax Assets, Goodwill | 96 | 98 |
Deferred Tax Assets, Net Operating Loss Carryforwards | 1,740 | 2,179 |
Deferred Tax Assets, Miscellaneous | 1,902 | 2,135 |
Deferred Tax Assets, Valuation Allowance | (869) | (860) |
Deferred Tax Assets | 15,598 | 11,739 |
Deferred Tax Liabilities: | ||
Deferred Tax Liabilities, Property and Equipment | 6,152 | 6,062 |
Deferred Tax Liabilities, Miscellaneous | 724 | 761 |
Deferred Tax Liabilities, Net | 6,876 | 6,823 |
Net Deferred Tax Assets | $ 8,722 | $ 4,916 |
Note 6. Income Taxes - Compon_2
Note 6. Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Currently Payable: | |||
Current Federal Income Tax Expense (Benefit) | $ 13,458 | $ 6,592 | $ 19,780 |
Current State Income Tax Expense (Benefit) | 2,677 | 1,636 | 2,318 |
Current Income Tax Expense (Benefit) | 16,135 | 8,228 | 22,098 |
Deferred Taxes: | |||
Deferred Federal Income Tax Expense (Benefit) | (3,270) | 8,236 | (1,761) |
Deferred State Income Tax Expense (Benefit) | (539) | 1,422 | 175 |
Deferred Income Tax Expense (Benefit) | (3,809) | 9,658 | (1,586) |
Total provision for income taxes | $ 12,326 | $ 17,886 | $ 20,512 |
Note 6. Income Taxes - Reconcil
Note 6. Income Taxes - Reconciliation of Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Tax provision computed at U.S. federal statutory rate | $ 10,851 | $ 14,703 | $ 20,306 |
Tax provision computed at U.S. federal statutory rate, percent | 21.00% | 28.10% | 35.00% |
State income taxes, net of federal income tax benefit | $ 1,689 | $ 2,198 | $ 1,620 |
State income taxes, net of federal income tax benefit, percent | 3.30% | 4.20% | 2.80% |
Domestic manufacturing deduction | $ 0 | $ (617) | $ (1,495) |
Domestic Manufacturing Deduction, percent | (0.00%) | (1.20%) | (2.60%) |
Research credit | $ (300) | $ (180) | $ (218) |
Research Credit, percent | (0.60%) | (0.30%) | (0.40%) |
Remeasurement of tax assets and liabilities related to the Tax Act | $ 0 | $ 1,839 | $ 0 |
Remeasurement of tax assets and liabilities related to the Tax Act, percent | 0.00% | 3.50% | 0.00% |
Other - net | $ 86 | $ (57) | $ 299 |
Other-Net, percent | 0.20% | (0.10%) | 0.60% |
Total provision for income taxes | $ 12,326 | $ 17,886 | $ 20,512 |
Total provision for income taxes, percent | 23.90% | 34.20% | 35.40% |
Note 6. Income Taxes - Reconc_2
Note 6. Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized Tax Benefits, Beginning Balance | $ 989 | $ 1,888 | $ 2,077 |
Unrecognized Tax Benefits, Additions Resulting from Prior Period Tax Positions | 80 | 222 | 213 |
Unrecognized Tax Benefits, Reductions Resulting from Prior Period Tax Positions | (222) | (1,030) | (581) |
Unrecognized Tax Benefits, Additions Resulting from Current Period Tax Positions | 0 | 0 | 391 |
Unrecognized Tax Benefits, Reductions Resulting from Current Period Tax Positions | 0 | 0 | 0 |
Unrecognized Tax Benefits, Reductions Resulting from Settlements with Taxing Authorities | 0 | 0 | 0 |
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | (94) | (91) | (212) |
Unrecognized Tax Benefits, Ending Balance | 753 | 989 | 1,888 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 643 | $ 832 | $ 1,377 |
Note 6. Income Taxes - Accrued
Note 6. Income Taxes - Accrued Interest and Penalties Related to Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | |||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 90 | $ 70 | $ 84 |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 101 | $ 98 | $ 102 |
Note 7. Inventories - Inventory
Note 7. Inventories - Inventory Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Percentage of LIFO Inventory | 93.00% | 92.00% | |
Inventory, LIFO Reserve, Effect on Income (Loss), Net | $ 1.1 | $ 1.1 | $ 0.4 |
Note 7. Inventories - Invento_2
Note 7. Inventories - Inventory Components (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Finished products | $ 26,304 | $ 23,756 |
Work-in-process | 2,455 | 1,378 |
Raw materials | 34,335 | 29,158 |
Total FIFO inventory | 63,094 | 54,292 |
LIFO reserve, net | (16,282) | (14,783) |
Total inventory | $ 46,812 | $ 39,509 |
Note 8. Property and Equipmen_2
Note 8. Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Property and Equipment | ||
Total Property and Equipment | $ 276,536 | $ 264,546 |
Less: Accumulated depreciation | (185,865) | (180,059) |
Property and equipment, net | 90,671 | 84,487 |
Land | ||
Property and Equipment | ||
Total Property and Equipment | 2,219 | 2,219 |
Building and Building Improvements | ||
Property and Equipment | ||
Total Property and Equipment | 104,601 | 105,372 |
Machinery and Equipment | ||
Property and Equipment | ||
Total Property and Equipment | 157,575 | 152,653 |
Construction in Progress | ||
Property and Equipment | ||
Total Property and Equipment | $ 12,141 | $ 4,302 |
Note 8. Property and Equipmen_3
Note 8. Property and Equipment - Asset Lives (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Leasehold improvements | Lesser of Useful Life or Term of Lease |
Building and Improvements | Minimum | |
Property, Plant and Equipment, Useful Life | 5 years |
Building and Improvements | Maximum | |
Property, Plant and Equipment, Useful Life | 40 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment, Useful Life | 2 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment, Useful Life | 20 years |
Note 8. Property and Equipmen_4
Note 8. Property and Equipment - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Depreciation | $ 14,800 | $ 13,700 | $ 14,700 |
Assets held for sale | 281 | 281 | |
Gain (Loss) on Disposition of Property Plant Equipment | 1,117 | 2,050 | 3,148 |
Proceeds from sales of assets | $ 1,291 | 5,817 | 13,200 |
Held for Sale over-the-road tractors, trailers, and land | |||
Assets held for sale | 4,200 | ||
Gain (Loss) on Disposition of Property Plant Equipment | 400 | ||
Proceeds from sales of assets | 4,800 | ||
Post Falls Land and Facility | |||
Gain (Loss) on Disposition of Property Plant Equipment | 2,100 | ||
Proceeds from sales of assets | 12,000 | ||
Land | |||
Proceeds from sales of assets | 1,400 | ||
Property, Plant and Equipment, Other Types | Fair Value, Measurements, Nonrecurring | |||
Impairment of Long-Lived Assets to be Disposed of | 200 | ||
Jasper Ed Ctr, R&D Ctr, Showroom building | |||
Proceeds from Sale of Buildings | 3,800 | ||
Post Falls Land and Facility | |||
Proceeds from Sale of Buildings | 12,000 | ||
Restructuring (Gain) Expense | Post Falls Land and Facility | |||
Gain (Loss) on Disposition of Property Plant Equipment | 2,100 | ||
Selling and Administrative Expenses | Land | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ 1,200 | ||
Selling and Administrative Expenses | Jasper Ed Ctr, R&D Ctr, Showroom building | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ 1,700 |
Note 9. Commitments and Conti_4
Note 9. Commitments and Contingent Liabilities - Leases Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Leased Assets | |||
Capital Lease Obligations | $ 0 | $ 0 | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 4,600 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 4,200 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 4,100 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 3,600 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 2,500 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 3,800 | ||
Rental expenses | 6,400 | 5,800 | $ 6,000 |
Contingent lease payments | 1,200 | 1,200 | 1,500 |
Proceeds from sale-leaseback financing obligation | 0 | 0 | 3,752 |
Gain (Loss) on Disposition of Property Plant Equipment | $ 1,117 | 2,050 | 3,148 |
Jasper Ed Ctr, R&D Ctr, Showroom building | |||
Operating Leased Assets | |||
Proceeds from sale-leaseback financing obligation | $ 3,800 | ||
Selling and Administrative Expenses | Jasper Ed Ctr, R&D Ctr, Showroom building | |||
Operating Leased Assets | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ 1,700 |
Note 9. Commitments and Conti_5
Note 9. Commitments and Contingent Liabilities - Guarantees Textuals (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Guarantee Obligations | ||
Contingent Liabilities | ||
Loss Contingency Accrual | $ 0 | $ 0 |
Financial Standby Letter of Credit | ||
Contingent Liabilities | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 1,500,000 | 1,400,000 |
Loss Contingency Accrual | 0 | 0 |
Performance Guarantee | ||
Contingent Liabilities | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 0 | 500,000 |
Loss Contingency Accrual | $ 0 | $ 0 |
Note 9. Commitments and Conti_6
Note 9. Commitments and Contingent Liabilities - Product Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Product Warranty Liability at the beginning of the year | $ 2,294 | $ 1,992 | $ 2,351 |
Additions to warranty accrual (including changes in estimates) | 886 | 1,307 | 562 |
Settlements made (in cash or in kind) | (942) | (1,005) | (921) |
Product Warranty Liability at the end of the year | $ 2,238 | $ 2,294 | $ 1,992 |
Note 10. Long-Term Debt and C_2
Note 10. Long-Term Debt and Credit Facilities - Textuals (Details) | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Long-term debt, less current maturities | $ 136,000 | $ 161,000 | |
Current maturities of long-term debt | $ 25,000 | 23,000 | |
Interest Rate on Long-Term Debt | 9.25% | ||
Maturities of Long-Term Debt in the Next Twelve Months | $ 25,000 | ||
Maturities of Long-term Debt in Year Two | 27,000 | ||
Maturities of Long-term Debt in Year Three | 30,000 | ||
Maturities of Long-term Debt in Year Four | 33,000 | ||
Maturities of Long-term Debt in Year Five | 36,000 | ||
Aggregate Maturities of Long-term Debt after Year Five | 10,000 | ||
Credit Facility, Maximum Borrowing Capacity | 30,000,000 | ||
Credit Facility, Maximum Borrowing Capacity Upon Request | 55,000,000 | ||
Credit Facility, Borrowings Outstanding | 0 | 0 | |
Credit Facility, Availability to Borrow | 28,500,000 | ||
Line of Credit Facility, Amount Available for Letters of Credit | 10,000,000 | ||
Adjusted Leverage Ratio, Indebtedness Reduction For Excess Cash | $ 15,000,000 | ||
Adjusted Leverage Ratio Covenant | 3 | ||
Fixed Charge Coverage Ratio Covenant, Percent of Depreciation | 50.00% | ||
Fixed Charge Coverage Ratio Covenant | 1.10 | ||
Interest Paid on Borrowings | $ 87,000 | $ 70,000 | $ 37,000 |
Minimum | |||
Line of Credit Facility, Commitment Fee Basis Points | 20 | ||
Maximum | |||
Line of Credit Facility, Commitment Fee Basis Points | 25 | ||
Financial Standby Letter of Credit | |||
Letters of Credit, Amount | $ 1,500,000 | ||
Eurocurrency Loans Margin | Minimum | |||
Line of Credit Facility, Interest Rate Basis Points | 125 | ||
Eurocurrency Loans Margin | Maximum | |||
Line of Credit Facility, Interest Rate Basis Points | 175 | ||
London Interbank Offered Rate (LIBOR) | Primary Revolving Credit Facility | |||
Interest Rate Charged Over Index Rate | 1.00% | ||
Federal Funds Rate | |||
Interest Rate Charged Over Index Rate | 0.50% | ||
Alternate Base Rate Loans Spread | Minimum | |||
Line of Credit Facility, Interest Rate Basis Points | 25 | ||
Alternate Base Rate Loans Spread | Maximum | |||
Line of Credit Facility, Interest Rate Basis Points | 75 |
Note 11. Employee Benefit Pla_4
Note 11. Employee Benefit Plans - Retirement Plans Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Domestic Plan | |||
Employer's contribution to retirement plans | $ 7.3 | $ 5.9 | $ 6.4 |
Note 11. Employee Benefit Pla_5
Note 11. Employee Benefit Plans - Severance Plans - Components and Changes of Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Changes and Components of Benefit Obligation: | |||
Benefit obligation at beginning of year | $ 2,719 | $ 3,083 | |
Service cost | 506 | 521 | $ 482 |
Interest cost | 89 | 85 | 65 |
Actuarial (gain) loss for the period | (484) | (895) | |
Benefits paid | (46) | (75) | |
Benefit obligation at end of year | 2,784 | 2,719 | $ 3,083 |
Balance in current liabilities | 506 | 494 | |
Balance in noncurrent liabilities | 2,278 | 2,225 | |
Total benefit obligation recognized in the Consolidated Balance Sheets | $ 2,784 | $ 2,719 |
Note 11. Employee Benefit Pla_6
Note 11. Employee Benefit Plans - Severance Plans - Changes and Components in Accumulated Other Comprehensive Income (Loss) (before tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Changes and Components in Accumulated Other Comprehensive Income (Loss) (before tax): | ||
Accumulated Other Comprehensive Income (Loss) at beginning of year | $ 2,494 | $ 1,859 |
Net change in unrecognized actuarial gain (loss) | 80 | 635 |
Accumulated Other Comprehensive Income (Loss) at end of year | $ 2,574 | $ 2,494 |
Note 11. Employee Benefit Pla_7
Note 11. Employee Benefit Plans - Severance Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure | |||
Service cost | $ 506 | $ 521 | $ 482 |
Interest cost | 89 | 85 | 65 |
Amortization of actuarial (gain) loss | (404) | (260) | (473) |
Net periodic benefit cost - Total cost | $ 191 | $ 346 | $ 74 |
Note 11. Employee Benefit Pla_8
Note 11. Employee Benefit Plans - Severance Plans Textuals (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Defined Benefit Plan Disclosure | |
Assets for Plan Benefits, Defined Benefit Plan | $ 0 |
Note 11. Employee Benefit Pla_9
Note 11. Employee Benefit Plans - Severance Plan Assumptions, Fiscal Year End (Details) | Jun. 30, 2019 | Jun. 30, 2018 |
Fiscal Year End Assumptions: | ||
Discount Rate | 2.80% | 3.40% |
Rate of Compensation Increase | 3.00% | 3.00% |
Note 11. Employee Benefit Pl_10
Note 11. Employee Benefit Plans - Severance Plan Assumptions, Weighted Average (Details) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Weighted Average Fiscal Year Assumptions: | |||
Discount Rate | 3.20% | 3.00% | 2.40% |
Rate of Compensation Increase | 3.00% | 3.00% | 3.00% |
Note 12. Stock Compensation P_3
Note 12. Stock Compensation Plans - Textuals (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Oct. 31, 2017 | |
Share-based Compensation Arrangements | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2.1 | |||
Stock Compensation Plan, Pre-tax Compensation Cost | $ 6.6 | $ 4.2 | $ 6.3 | |
Stock Compensation Plan, Income Tax Benefit from Compensation Cost | 2 | 2.1 | 2.9 | |
Excess tax benefits from stock award vesting | $ 0.3 | $ 0.7 | $ 0.5 |
Note 12. Stock Compensation P_4
Note 12. Stock Compensation Plans - Performance Share Activity (Details) - Performance Shares - $ / shares | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Share-based Compensation Arrangements | |||||
Shares Outstanding, Beginning of Period | 104,223 | ||||
Shares Granted | [1] | 116,598 | |||
Shares Vested | (143,543) | [1] | (401,833) | (294,086) | |
Shares Forfeited | [1] | (49,555) | |||
Shares Outstanding, End of Period | 27,723 | 104,223 | |||
Weighted Average Grant Date Fair Value of Shares Outstanding, Beginning of Period | $ 16.52 | ||||
Weighted Average Grant Date Fair Value of Shares Granted | 16.13 | $ 16.62 | $ 11.26 | ||
Weighted Average Grant Date Fair Value of Shares Vested | 16.33 | ||||
Weighted Average Grant Date Fair Value of Shares Forfeited | 16.13 | ||||
Weighted Average Grant Date Fair Value of Shares Outstanding, End of Period | $ 16.12 | $ 16.52 | |||
[1] | The shares granted include the maximum number of shares that may vest under performance share awards; however, the actual number of shares which vest is determined based on the satisfaction of performance conditions, and therefore may be significantly lower. The shares vested include the earned number of shares to be issued based on performance conditions, while shares forfeited include shares that will not be issued as a result of not fully attaining the maximum performance conditions. |
Note 12. Stock Compensation P_5
Note 12. Stock Compensation Plans - Performance Share Textuals (Details) - Performance Shares - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Share-based Compensation Arrangements | ||||
Share Based Compensation Arrangement By Share Based Payment Award Contractual Life | 5 years | |||
Unrecognized Compensation Cost | $ 0.1 | |||
Average Vesting Period for Unrecognized Compensation Cost | 1 month | |||
Weighted Average Grant Date Fair Value of Shares Granted | $ 16.13 | $ 16.62 | $ 11.26 | |
Shares Vested | 143,543 | [1] | 401,833 | 294,086 |
Weighted Average Grant Date Fair Value of Shares Vested, Total Fair Value | $ 2.3 | $ 4.8 | $ 3.6 | |
[1] | The shares granted include the maximum number of shares that may vest under performance share awards; however, the actual number of shares which vest is determined based on the satisfaction of performance conditions, and therefore may be significantly lower. The shares vested include the earned number of shares to be issued based on performance conditions, while shares forfeited include shares that will not be issued as a result of not fully attaining the maximum performance conditions. |
Note 12. Stock Compensation P_6
Note 12. Stock Compensation Plans - Relative Total Shareholder Return Performance Unit Activity (Details) - Relative Total Shareholder Return - $ / shares | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares Outstanding, Beginning of Period | 130,640 | ||||
Shares Granted | [1] | 140,914 | |||
Shares Vested | (67,130) | [1] | (37,535) | (57,375) | |
Shares Forfeited | [1] | (29,512) | |||
Shares Outstanding, End of Period | 174,912 | 130,640 | |||
Weighted Average Grant Date Fair Value of Shares Outstanding, Beginning of Period | $ 18.94 | ||||
Weighted Average Grant Date Fair Value of Shares Granted | 21.43 | $ 20.65 | $ 13.92 | ||
Weighted Average Grant Date Fair Value of Shares Vested | 17.23 | ||||
Weighted Average Grant Date Fair Value of Shares Forfeited | 20.18 | ||||
Weighted Average Grant Date Fair Value of Shares Outstanding, End of Period | $ 21.31 | $ 18.94 | |||
[1] | The shares granted include the maximum number of shares that may vest under RTSR awards; however, the actual number of shares which vest is determined based on the satisfaction of performance conditions, and therefore may be significantly lower. The shares vested include the earned number of shares to be issued based on performance conditions, while shares forfeited include shares that will not be issued as a result of not fully attaining the maximum performance conditions. |
Note 12. Stock Compensation P_7
Note 12. Stock Compensation Plans - Relative Total Shareholder Return Performance Unit Textuals (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Expense | $ 6.6 | $ 4.2 | $ 6.3 | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Relative Total Shareholder Return, Earned Percentage | 0.00% | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Relative Total Shareholder Return, Earned Percentage | 200.00% | |||
Relative Total Shareholder Return | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized Compensation Cost | $ 1.1 | |||
Average Vesting Period for Unrecognized Compensation Cost | 1 year 5 months | |||
Weighted Average Grant Date Fair Value of Shares Granted | $ 21.43 | $ 20.65 | $ 13.92 | |
Shares Vested | 67,130 | [1] | 37,535 | 57,375 |
Weighted Average Grant Date Fair Value of Shares Vested, Total Fair Value | $ 1.2 | $ 0.6 | $ 1 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 174,912 | 130,640 | ||
Relative Total Shareholder Return | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Contractual Life | 3 years | |||
Chief Executive Officer | Relative Total Shareholder Return | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Vested | 39,112 | |||
Weighted Average Grant Date Fair Value of Shares Vested, Total Fair Value | $ 0.7 | |||
Chief Executive Officer | Relative Total Shareholder Return | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 14,668 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 0.3 | |||
[1] | The shares granted include the maximum number of shares that may vest under RTSR awards; however, the actual number of shares which vest is determined based on the satisfaction of performance conditions, and therefore may be significantly lower. The shares vested include the earned number of shares to be issued based on performance conditions, while shares forfeited include shares that will not be issued as a result of not fully attaining the maximum performance conditions. |
Note 12. Stock Compensation P_8
Note 12. Stock Compensation Plans - Restricted Share Unit Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Outstanding, Beginning of Period | 201,826 | ||
Shares Granted | 318,822 | ||
Shares Vested | (149,323) | (79,315) | (86,116) |
Shares Forfeited | (47,298) | ||
Shares Outstanding, End of Period | 324,027 | 201,826 | |
Weighted Average Grant Date Fair Value of Shares Outstanding, Beginning of Period | $ 15.10 | ||
Weighted Average Grant Date Fair Value of Shares Granted | 16.38 | $ 17.14 | $ 11.85 |
Weighted Average Grant Date Fair Value of Shares Vested | 14.61 | ||
Weighted Average Grant Date Fair Value of Shares Forfeited | 15.43 | ||
Weighted Average Grant Date Fair Value of Shares Outstanding, End of Period | $ 16.54 | $ 15.10 |
Note 12. Stock Compensation P_9
Note 12. Stock Compensation Plans - Restricted Share Unit Textuals (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 6.6 | $ 4.2 | $ 6.3 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized Compensation Cost | $ 3.2 | ||
Average Vesting Period for Unrecognized Compensation Cost | 1 year 7 months | ||
Weighted Average Grant Date Fair Value of Shares Granted | $ 16.38 | $ 17.14 | $ 11.85 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 149,323 | 79,315 | 86,116 |
Weighted Average Grant Date Fair Value of Shares Vested, Total Fair Value | $ 2.2 | $ 1 | $ 0.8 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 324,027 | 201,826 | |
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Contractual Life | 3 years | ||
Chief Executive Officer | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 26,397 | ||
Weighted Average Grant Date Fair Value of Shares Vested, Total Fair Value | $ 0.4 |
Note 12. Stock Compensation _10
Note 12. Stock Compensation Plans - Unrestricted Share Grants Textuals (Details) - Unrestricted Shares - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangements | |||
Shares Granted | 42,888 | 38,696 | 48,812 |
Weighted Average Grant Date Fair Value of Shares Granted | $ 15.42 | $ 18.31 | $ 14.12 |
Weighted Average Grant Date Fair Value of Shares Vested, Total Fair Value | $ 661 | $ 709 | $ 689 |
Note 13. Fair Value - Textuals
Note 13. Fair Value - Textuals (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Nov. 06, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value, Transfers Between Levels, Amount | $ 0 | $ 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 0 | |
Derivative Asset, Fair Value, Gross Asset | 1,500,000 | 1,500,000 | |
Contingent earn-out liability | 1,100,000 | $ 1,700,000 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 600,000 | ||
Investment Owned, at Fair Value | 2,000,000 | ||
Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities without Readily Determinable Fair Value, Amount | 500,000 | ||
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent earn-out liability | 360,000 | 1,056,000 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent earn-out liability | 360,000 | 1,056,000 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent earn-out liability | 0 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent earn-out liability | 0 | ||
Stock Warrant | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 1,500,000 | 1,500,000 | |
Stock Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 1,500,000 | 1,500,000 | |
Stock Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |
Stock Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |
Selling and Administrative Expenses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 800,000 | ||
Interest Expense | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (200,000) | ||
Not Designated as Hedging Instrument | Other Assets | Stock Warrant | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | $ 1,500,000 | $ 1,500,000 | |
Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent earn-out liability | $ 2,200,000 |
Note 13. Fair Value - Recurring
Note 13. Fair Value - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Nov. 06, 2017 |
Recurring Fair Value Measurements: | |||
Derivative: Stock Warrants | $ 1,500 | $ 1,500 | |
Derivatives: Foreign exchange contracts | 0 | 10 | |
Contingent earn-out liability | 1,100 | $ 1,700 | |
Fair Value, Measurements, Recurring | |||
Recurring Fair Value Measurements: | |||
Total assets at fair value | 115,769 | 98,546 | |
Contingent earn-out liability | 360 | 1,056 | |
Total liabilities at fair value | 360 | 1,066 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||
Recurring Fair Value Measurements: | |||
Total assets at fair value | 51,790 | 36,521 | |
Contingent earn-out liability | 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 | 62,479 | 60,525 | |
Contingent earn-out liability | 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 | 360 | 1,056 | |
Total liabilities at fair value | 360 | 1,056 | |
Money Market Funds | Fair Value, Measurements, Recurring | |||
Recurring Fair Value Measurements: | |||
Cash equivalents | 40,016 | 24,407 | |
Money Market Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||
Recurring Fair Value Measurements: | |||
Cash equivalents | 40,016 | 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 | 29,408 | 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 | 29,408 | 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 | 11,230 | 11,850 | |
Certificates of Deposit | Fair Value, Measurements, Recurring | |||
Recurring Fair Value Measurements: | |||
Available-for-sale Securities | 11,230 | 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 | 11,230 | 11,850 | |
Certificates of Deposit | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||
Recurring Fair Value Measurements: | |||
Available-for-sale Securities | 0 | 0 | |
US Government Corporations and Agencies Securities | |||
Recurring Fair Value Measurements: | |||
Available-for-sale Securities | 19,919 | 6,249 | |
US Government Corporations and Agencies Securities | Fair Value, Measurements, Recurring | |||
Recurring Fair Value Measurements: | |||
Available-for-sale Securities | 19,919 | 6,249 | |
US Government Corporations and Agencies Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||
Recurring Fair Value Measurements: | |||
Available-for-sale Securities | 0 | 0 | |
US Government Corporations and Agencies Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Recurring Fair Value Measurements: | |||
Available-for-sale Securities | 19,919 | 6,249 | |
US Government Corporations and Agencies Securities | 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 | 1,922 | 16,508 | |
Municipal Bonds | Fair Value, Measurements, Recurring | |||
Recurring Fair Value Measurements: | |||
Available-for-sale Securities | 1,922 | 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 | 1,922 | 16,508 | |
Municipal Bonds | 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 | 11,774 | 12,114 | |
Mutual Fund | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||
Recurring Fair Value Measurements: | |||
Trading Securities: Mutual funds in nonqualified SERP | 11,774 | 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 | |
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 | ||
Stock Warrant | Fair Value, Measurements, Recurring | |||
Recurring Fair Value Measurements: | |||
Derivative: Stock Warrants | 1,500 | 1,500 | |
Stock Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||
Recurring Fair Value Measurements: | |||
Derivative: Stock Warrants | 0 | 0 | |
Stock Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Recurring Fair Value Measurements: | |||
Derivative: Stock Warrants | 0 | 0 | |
Stock Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||
Recurring Fair Value Measurements: | |||
Derivative: Stock Warrants | $ 1,500 | $ 1,500 |
Note 14. Derivative Instrumen_3
Note 14. Derivative Instruments - Textuals (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Derivatives, Fair Value | ||
Investment Owned, at Cost | $ 2,000 | |
Derivative Asset, Fair Value, Gross Asset | 1,500 | $ 1,500 |
Fair Value, Measurements, Recurring | Stock Warrant | ||
Derivatives, Fair Value | ||
Derivative Asset, Fair Value, Gross Asset | 1,500 | 1,500 |
Fair Value, Measurements, Recurring | Other Assets | Not Designated as Hedging Instrument | Stock Warrant | ||
Derivatives, Fair Value | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,500 | $ 1,500 |
Note 14. Derivative Instrumen_4
Note 14. Derivative Instruments - Fair Value of Derivative Instruments on Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Derivatives, Fair Value | ||
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 10 |
Derivative Asset, Fair Value, Gross Asset | 1,500 | 1,500 |
Foreign Exchange Contract | Designated as Hedging Instrument | Accrued Expenses | ||
Derivatives, Fair Value | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 10 |
Foreign Exchange Contract | Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Stock Warrant | Designated as Hedging Instrument | Accrued Expenses | ||
Derivatives, Fair Value | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Derivative Liability, Fair Value, Gross Liability | 10 | |
Fair Value, Measurements, Recurring | Stock Warrant | ||
Derivatives, Fair Value | ||
Derivative Asset, Fair Value, Gross Asset | 1,500 | 1,500 |
Fair Value, Measurements, Recurring | Stock Warrant | Not Designated as Hedging Instrument | Other Assets | ||
Derivatives, Fair Value | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,500 | $ 1,500 |
Note 15. Investments - Schedule
Note 15. Investments - Schedule of Contractual Maturities on Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Certificates of Deposit | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next welve Months, Fair Value | $ 6,735 | |
Available-for-sale Securities, Debt Maturities, Rolling Year Two | 4,495 | |
Available-for-sale Securities | 11,230 | $ 11,850 |
Municipal Bonds | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next welve Months, Fair Value | 1,922 | |
Available-for-sale Securities, Debt Maturities, Rolling Year Two | 0 | |
Available-for-sale Securities | 1,922 | 16,508 |
US Government Corporations and Agencies Securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next welve Months, Fair Value | 19,919 | |
Available-for-sale Securities, Debt Maturities, Rolling Year Two | 0 | |
Available-for-sale Securities | $ 19,919 | $ 6,249 |
Note 15. Investments - Unrealiz
Note 15. Investments - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Certificates of Deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 11,230 | $ 11,850 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Available-for-sale Securities | 11,230 | 11,850 |
Municipal Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 1,921 | 16,532 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | (24) |
Available-for-sale Securities | 1,922 | 16,508 |
US Government Corporations and Agencies Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 19,888 | 6,266 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 31 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | (17) |
Available-for-sale Securities | $ 19,919 | $ 6,249 |
Note 15. Investments - Investme
Note 15. Investments - Investment Portfolio Textuals (Details) | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 |
Available-for-sale Securities, Gross Realized Gain (Loss) | $ 0 |
Note 15. Investments - Invest_2
Note 15. Investments - Investments-Supplemental Employee Retirement Plan Investments Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Trading Securities, Change in Unrealized Holding Gain (Loss) | $ 223 | $ 585 | $ 223 |
Note 15. Investments - Suppleme
Note 15. Investments - Supplemental Employee Retirement Plan Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Schedule of Trading Securities and Other Trading Assets | ||
Total SERP investments | $ 11,774 | $ 12,114 |
Total SERP obligation | 11,774 | 12,114 |
Other Long-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments - current asset | 8,687 | 8,246 |
SERP obligation - other long-term liability | 8,687 | 8,246 |
Short-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments - current asset | 3,087 | 3,868 |
SERP obligation - current liability | $ 3,087 | $ 3,868 |
Note 15. Investments - Non-mark
Note 15. Investments - Non-marketable equity securities (Details) $ in Millions | Jun. 30, 2019USD ($) |
Investment Owned, at Cost | $ 2 |
Fair Value, Inputs, Level 3 | |
Equity Securities without Readily Determinable Fair Value, Amount | $ 0.5 |
Note 16. Accrued Expenses - Acc
Note 16. Accrued Expenses - Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Compensation | $ 24,582 | $ 22,045 |
Selling | 8,148 | 7,134 |
Employer retirement contribution | 7,032 | 5,605 |
Taxes | 4,115 | 3,598 |
Insurance | 3,821 | 4,210 |
Restructuring | 822 | 0 |
Accrued Rent | 3,163 | 2,997 |
Other expenses | 5,811 | 4,997 |
Total accrued expenses | $ 57,494 | $ 50,586 |
Note 17. Geographic Informati_3
Note 17. Geographic Information - Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | $ 195,570 | $ 177,369 | $ 201,008 | $ 194,123 | $ 189,683 | $ 160,897 | $ 178,614 | $ 175,360 | $ 768,070 | $ 704,554 | $ 692,967 |
Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | 12,192 | 12,788 | 11,483 | ||||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net Sales | $ 755,878 | $ 691,766 | $ 681,484 |
Note 18. Accumulated Other Co_3
Note 18. Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income at beginning of period | $ 1,816 | $ 1,115 |
Other Comprehensive Income (Loss) before Reclassifications | 405 | 584 |
Reclassification to (earnings) loss | (284) | (173) |
Net current-period other comprehensive income (loss) | 121 | 411 |
Reclassification of change in enacted income tax rate to retained earnings | 290 | |
Accumulated Other Comprehensive Income at end of period | 1,937 | 1,816 |
Unrealized Investment Gain (Loss) | ||
Accumulated Other Comprehensive Income at beginning of period | (31) | (21) |
Other Comprehensive Income (Loss) before Reclassifications | 54 | (8) |
Reclassification to (earnings) loss | 0 | 3 |
Net current-period other comprehensive income (loss) | 54 | (5) |
Reclassification of change in enacted income tax rate to retained earnings | (5) | |
Accumulated Other Comprehensive Income at end of period | 23 | (31) |
Postemployment Benefits, Net Actuarial Gain (Loss) | ||
Accumulated Other Comprehensive Income at beginning of period | 1,854 | 1,136 |
Other Comprehensive Income (Loss) before Reclassifications | 360 | 599 |
Reclassification to (earnings) loss | (300) | (176) |
Net current-period other comprehensive income (loss) | 60 | 423 |
Reclassification of change in enacted income tax rate to retained earnings | 295 | |
Accumulated Other Comprehensive Income at end of period | 1,914 | 1,854 |
Derivative Gain (Loss) | ||
Accumulated Other Comprehensive Income at beginning of period | (7) | 0 |
Other Comprehensive Income (Loss) before Reclassifications | (9) | (7) |
Reclassification to (earnings) loss | 16 | 0 |
Net current-period other comprehensive income (loss) | 7 | (7) |
Reclassification of change in enacted income tax rate to retained earnings | 0 | |
Accumulated Other Comprehensive Income at end of period | $ 0 | $ (7) |
Note 18. Accumulated Other Co_4
Note 18. Accumulated Other Comprehensive Income - Reclassifications from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Adjustment from Accumulated Other Comprehensive Income | |||
Realized Investment Gain (Loss) on available-for-sale securities, Pre-tax | $ 0 | $ (4) | $ 0 |
Realized Investment Gain (Loss) on available-for-sale securities, Tax | 0 | 1 | 0 |
Realized Investment Gain (Loss) on available-for-sale securities | 0 | (3) | 0 |
Postemployment Benefits Amortization of Actuarial Gain, Pre-tax | (404) | (260) | (473) |
Postemployment Benefits Amortization of Actuarial Gain, Tax | (104) | (84) | (184) |
Postemployment Benefits Amortization of Actuarial Gain | 300 | 176 | 289 |
Derivative Gain (Loss), Pre-tax | 21 | 0 | 0 |
Derivative (Gain) Loss, Tax | (5) | 0 | 0 |
Derivative Gain (Loss) | 16 | 0 | $ 0 |
Reclassification to (earnings) loss | 284 | 173 | |
Cost of Sales | |||
Reclassification Adjustment from Accumulated Other Comprehensive Income | |||
Postemployment Benefits Amortization of Actuarial Gain, Pre-tax | 0 | 168 | |
Selling and Administrative Expenses | |||
Reclassification Adjustment from Accumulated Other Comprehensive Income | |||
Postemployment Benefits Amortization of Actuarial Gain, Pre-tax | 0 | 92 | |
Non-operating Income (Expense), net | |||
Reclassification Adjustment from Accumulated Other Comprehensive Income | |||
Realized Investment Gain (Loss) on available-for-sale securities, Pre-tax | 0 | (4) | |
Postemployment Benefits Amortization of Actuarial Gain, Pre-tax | 404 | 0 | |
Derivative Gain (Loss), Pre-tax | (21) | 0 | |
Benefit (Provision) for Income Taxes | |||
Reclassification Adjustment from Accumulated Other Comprehensive Income | |||
Realized Investment Gain (Loss) on available-for-sale securities, Tax | 0 | 1 | |
Postemployment Benefits Amortization of Actuarial Gain, Tax | (104) | (84) | |
Derivative (Gain) Loss, Tax | 5 | 0 | |
Net Income | |||
Reclassification Adjustment from Accumulated Other Comprehensive Income | |||
Realized Investment Gain (Loss) on available-for-sale securities | 0 | (3) | |
Postemployment Benefits Amortization of Actuarial Gain | 300 | 176 | |
Derivative Gain (Loss) | (16) | 0 | |
Reclassification to (earnings) loss | $ 284 | $ 173 |
Note 19. Variable Interest En_2
Note 19. Variable Interest Entities - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Related Allowance | $ 122 | $ 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 | ||
Variable Interest Entity, Nonconsolidated, Related Allowance | 0 | 50 |
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 |
Variable Interest Entity, Nonconsolidated, Related Allowance | 100 | 100 |
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 |
Note 20. Credit Quality and A_3
Note 20. Credit Quality and Allowance for Credit Losses of Notes Receivable - Textuals (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Notes Receivable | ||
Notes Receivable | ||
Notes Receivable, Past Due | $ 0 | $ 0 |
Note 20. Credit Quality and A_4
Note 20. Credit Quality and Allowance for Credit Losses of Notes Receivable - Credit Quality and Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Notes Receivable | ||
Notes Receivable, Unpaid Balance | $ 1,132 | $ 849 |
Notes Receivable, Related Allowance | 122 | 233 |
Notes Receivable, Net of Allowance | 1,010 | 616 |
Notes Receivable | Independent Dealership Financing | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 1,010 | 666 |
Notes Receivable, Related Allowance | 0 | 50 |
Notes Receivable, Net of Allowance | 1,010 | 616 |
Notes Receivable | Other Notes Receivable | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 122 | 183 |
Notes Receivable, Related Allowance | 122 | 183 |
Notes Receivable, Net of Allowance | $ 0 | $ 0 |
Note 21. Quarterly Financial _3
Note 21. Quarterly Financial Information (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Sales | $ 195,570 | $ 177,369 | $ 201,008 | $ 194,123 | $ 189,683 | $ 160,897 | $ 178,614 | $ 175,360 | $ 768,070 | $ 704,554 | $ 692,967 |
Gross Profit | 67,129 | 56,561 | 64,989 | 65,873 | 64,240 | 49,964 | 57,420 | 64,007 | 254,552 | 235,631 | 237,861 |
Restructuring (Gain) Expense | 937 | 0 | 0 | 0 | 937 | 0 | (1,832) | ||||
Net Income | $ 11,109 | $ 7,954 | $ 9,405 | $ 10,876 | $ 10,254 | $ 5,850 | $ 7,378 | $ 10,957 | $ 39,344 | $ 34,439 | $ 37,506 |
Basic Earnings Per Share | $ 0.30 | $ 0.22 | $ 0.26 | $ 0.29 | $ 0.28 | $ 0.16 | $ 0.20 | $ 0.29 | $ 1.07 | $ 0.92 | $ 1 |
Diluted Earnings Per Share | $ 0.30 | $ 0.22 | $ 0.25 | $ 0.29 | $ 0.28 | $ 0.16 | $ 0.20 | $ 0.29 | $ 1.06 | $ 0.92 | $ 0.99 |
Schedule II Valuation and Qua_3
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Short-Term Receivables | |||
Movement in Valuation Allowances [Roll Forward] | |||
Valuation Allowances, Balance at Beginning of Year | $ 1,317 | $ 1,626 | $ 2,145 |
Valuation Allowances, Additions (Reductions) to Expense | 481 | (25) | (206) |
Valuation Allowances, Adjustments to Other Accounts | (115) | 204 | 101 |
Valuation Allowances, Write-offs and Recoveries | (362) | (488) | (414) |
Valuation Allowances, Balance at End of Year | 1,321 | 1,317 | 1,626 |
Long-Term Notes Receivable | |||
Movement in Valuation Allowances [Roll Forward] | |||
Valuation Allowances, Balance at Beginning of Year | 139 | 109 | 118 |
Valuation Allowances, Additions (Reductions) to Expense | 0 | (3) | (9) |
Valuation Allowances, Adjustments to Other Accounts | (32) | 33 | 0 |
Valuation Allowances, Write-offs and Recoveries | (22) | 0 | 0 |
Valuation Allowances, Balance at End of Year | 85 | 139 | 109 |
Deferred Tax Asset | |||
Movement in Valuation Allowances [Roll Forward] | |||
Valuation Allowances, Balance at Beginning of Year | 860 | 643 | 687 |
Valuation Allowances, Additions (Reductions) to Expense | 0 | 0 | 0 |
Valuation Allowances, Adjustments to Other Accounts | 126 | 326 | 0 |
Valuation Allowances, Write-offs and Recoveries | (117) | (109) | (44) |
Valuation Allowances, Balance at End of Year | $ 869 | $ 860 | $ 643 |