Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Entity File Number | 0-3279 | |
Entity Registrant Name | KIMBALL INTERNATIONAL, INC. | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-0514506 | |
City Area Code | 812 | |
Entity Address, Address Line One | 1600 Royal Street | |
Entity Address, City or Town | Jasper | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47546-2256 | |
Local Phone Number | (812) 482-1600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000055772 | |
Current Fiscal Year End Date | --06-30 | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Amendment Flag | false | |
Entity Small Business | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Fiscal Period Focus | Q3 | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 193,162 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 36,641,799 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 76,636 | $ 73,196 |
Short-term investments | 13,658 | 33,071 |
Receivables, net of allowances of $2,531 and $1,321, respectively | 68,934 | 63,120 |
Inventories | 50,710 | 46,812 |
Prepaid expenses and other current assets | 13,855 | 13,105 |
Assets held for sale | 215 | 281 |
Total current assets | 224,008 | 229,585 |
Property and Equipment, net of accumulated depreciation of $192,134 and $185,865, respectively | 93,344 | 90,671 |
Right-of-use operating Lease Assets | 18,219 | 0 |
Goodwill | 11,160 | 11,160 |
Other Intangible Assets, net of accumulated amortization of $39,998 and $38,320, respectively | 13,339 | 12,108 |
Deferred Tax Assets | 9,188 | 8,722 |
Other Assets | 12,184 | 12,420 |
Total Assets | 381,442 | 364,666 |
Current Liabilities: | ||
Current maturities of long-term debt | 27 | 25 |
Accounts payable | 38,675 | 47,916 |
Customer deposits | 27,377 | 24,611 |
Current portion of operating lease liability | 4,820 | 0 |
Dividends payable | 3,493 | 3,038 |
Accrued expenses | 36,912 | 57,494 |
Total current liabilities | 111,304 | 133,084 |
Other Liabilities: | ||
Long-term debt, less current maturities | 109 | 136 |
Long-term operating lease liability | 17,203 | 0 |
Other | 14,576 | 14,956 |
Total other liabilities | 31,888 | 15,092 |
Common stock-par value $0.05 per share: | ||
Additional paid-in capital | 4,311 | 3,570 |
Retained earnings | 299,194 | 277,391 |
Accumulated other comprehensive income | 2,150 | 1,937 |
Less: Treasury stock, at cost, 6,205,000 shares and 6,212,000 shares, respectively | (69,556) | (68,559) |
Total Shareholders’ Equity | 238,250 | 216,490 |
Total Liabilities and Shareholders’ Equity | 381,442 | 364,666 |
Class A Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | $ 10 | $ 12 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Class B Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | $ 2,141 | $ 2,139 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net Sales | $ 178,174 | $ 177,369 | $ 571,790 | $ 572,500 |
Cost of Sales | 117,680 | 120,808 | 375,585 | 385,077 |
Gross Profit | 60,494 | 56,561 | 196,205 | 187,423 |
Selling and Administrative Expenses | 45,606 | 47,508 | 146,239 | 151,178 |
Restructuring Expense | 818 | 0 | 6,564 | 0 |
Operating Income | 14,070 | 9,053 | 43,402 | 36,245 |
Other Income (Expense): | ||||
Interest income | 386 | 492 | 1,482 | 1,339 |
Interest expense | (21) | (40) | (65) | (146) |
Other income expense net | (2,078) | 970 | (1,360) | 71 |
Non-operating income (expense), net | (1,713) | 1,422 | 57 | 1,264 |
Income Before Taxes on Income | 12,357 | 10,475 | 43,459 | 37,509 |
Provision for Income Taxes | 2,906 | 2,521 | 11,585 | 9,274 |
Net Income | $ 9,451 | $ 7,954 | $ 31,874 | $ 28,235 |
Earnings Per Share of Common Stock: | ||||
Basic Earnings Per Share | $ 0.26 | $ 0.22 | $ 0.86 | $ 0.77 |
Diluted Earnings Per Share | $ 0.25 | $ 0.22 | $ 0.86 | $ 0.76 |
Class A and B Common Stock: | ||||
Average Number of Shares Outstanding - Basic | 36,813 | 36,712 | 36,890 | 36,871 |
Average Number of Shares Outstanding - Diluted | 37,089 | 36,909 | 37,234 | 37,260 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net income | $ 9,451 | $ 7,954 | $ 31,874 | $ 28,235 |
Other comprehensive income (loss): | ||||
Available-for-sale securities, Pre-tax | 3 | 27 | (17) | 42 |
Available-for-sale securities, Tax | (1) | (7) | 4 | (11) |
Available-for-sale securities, Net of Tax | 2 | 20 | (13) | 31 |
Postemployment severance actuarial change, Pre-tax | 120 | 100 | 565 | 338 |
Postemployment severance actuarial change, Tax | (31) | (26) | (146) | (87) |
Postemployment severance actuarial change, Net of Tax | 89 | 74 | 419 | 251 |
Derivative gain (loss), Pre-tax | 0 | (11) | ||
Derivative gain (loss), Tax | 0 | 2 | ||
Derivative gain (loss), Net of Tax | 0 | (9) | ||
Reclassification to (earnings) loss: | ||||
Amortization of actuarial change, Pre-tax | (82) | (100) | (260) | (302) |
Amortization of actuarial change, Tax | 21 | 26 | 67 | 78 |
Amortization of actuarial change, Net of Tax | (61) | (74) | (193) | (224) |
Derivatives, Pre-tax | 0 | 21 | ||
Derivatives, Tax | 0 | (5) | ||
Derivatives, Net of Tax | 0 | 16 | ||
Other comprehensive income (loss), Pre-tax | 41 | 27 | 288 | 88 |
Other comprehensive income (loss), Tax | (11) | (7) | (75) | (23) |
Other comprehensive income (loss), Net of Tax | 30 | 20 | 213 | 65 |
Total comprehensive income | $ 9,481 | $ 7,974 | $ 32,087 | $ 28,300 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Cash Flows From Operating Activities: | |||
Net income | $ 31,874 | $ 28,235 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 11,337 | 11,077 | |
Amortization | 1,707 | 1,455 | |
Loss (Gain) on sales of assets | 75 | (1,140) | |
Restructuring and asset impairment charges | 2,954 | 0 | |
Deferred income tax and other deferred charges | (500) | (4,571) | |
Stock-based compensation | 3,850 | 4,749 | |
Other, net | 3,043 | (1,319) | |
Change in operating assets and liabilities: | |||
Receivables | (5,815) | 6,848 | |
Inventories | (3,898) | (2,863) | |
Prepaid expenses and other current assets | (960) | 5,769 | |
Accounts payable | (7,929) | (7,534) | |
Customer deposits | 2,766 | 6,371 | |
Accrued expenses | (21,136) | (4,397) | |
Net cash provided by operating activities | 17,368 | 42,680 | |
Cash Flows From Investing Activities: | |||
Capital expenditures | (16,132) | (15,577) | |
Proceeds from sales of assets | 138 | 1,277 | |
Cash paid for acquisition | 0 | (4,850) | |
Purchases of capitalized software | (3,011) | (805) | |
Purchases of available-for-sale securities | (24,977) | (39,778) | |
Maturities of available-for-sale securities | 44,488 | 32,550 | |
Other, net | (818) | (3) | |
Net cash used for investing activities | (312) | (27,186) | |
Cash Flows From Financing Activities: | |||
Change in long-term debt | (25) | (23) | |
Dividends paid to shareholders | (9,607) | (8,498) | |
Repurchases of Common Stock | (3,004) | (9,132) | |
Repurchase of employee shares for tax withholding | (976) | (1,035) | |
Net cash used for financing activities | (13,612) | (18,688) | |
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash (1) | [1] | 3,444 | (3,194) |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period (1) | [1] | 73,837 | 53,321 |
Cash, Cash Equivalents, and Restricted Cash at End of Period (1) | [1] | 77,281 | 50,127 |
Cash paid during the period for: | |||
Income taxes | 10,406 | 6,758 | |
Interest expense | $ 15 | $ 82 | |
[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. Restricted cash also included customer deposits held due to a foreign entity being classified as a restricted entity by a government agency subsequent to our receipt of the deposit. |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Shareowners' Equity (unaudited) Statement - USD ($) $ in Thousands | Total | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Shareowners’ Equity at Jun. 30, 2018 | $ 193,024 | $ 13 | $ 2,138 | $ 1,881 | $ 249,945 | $ 1,816 | $ (62,769) |
Net income | 28,235 | 28,235 | |||||
Other Comprehensive Income (Loss), Net of Tax | 65 | 65 | |||||
Issuance of non-restricted stock (6,000 shares in Q3'20, 11,000 shares in Q3'19, 21,000 shares YTD in FY'20, 32,000 shares YTD in FY'19) | (12) | (426) | 414 | ||||
Conversion of Class A to Class B common stock (1,000 shares in Q3'20, 0 shares in Q3'19, 58,000 shares YTD in FY'20, 7,000 shares YTD in FY'19) | 0 | 0 | 0 | ||||
Compensation expense related to stock incentive plans | 4,749 | 4,749 | |||||
Performance share issuance (0 shares in Q3'20, 0 shares in Q3'19, 67,000 shares YTD in FY'20, 81,000 shares YTD in FY'19) | (652) | (1,709) | 1,057 | ||||
Restricted share units issuance (15,000 shares in Q3'20, 0 shares in Q3'19, 15,000 shares YTD in FY'20, 15,000 shares YTD in FY'19) | (181) | (382) | 201 | ||||
Relative total shareholder return performance units issuance (0 shares in Q3'20, 0 shares in Q3'19, 48,000 shares YTD in FY'20, 27,000 shares YTD in FY'19) | (173) | (523) | 350 | ||||
Repurchase of Common Stock (81,000 shares in Q3'20, 0 shares in Q3'19, 146,000 shares YTD in FY'20, 567,000 shares YTD in FY'19) | (9,132) | (9,132) | |||||
Dividends declared ($0.09 per share in Q3'20, $0.08 per share in Q3'19, $0.27 per share YTD in FY'20, $0.24 per share YTD in FY'19) | (8,926) | (8,926) | |||||
Shareowners’ Equity at Mar. 31, 2019 | 206,997 | 13 | 2,138 | 3,590 | 269,254 | 1,881 | (69,879) |
Shareowners’ Equity at Dec. 31, 2018 | 200,871 | 13 | 2,138 | 2,607 | 264,267 | 1,861 | (70,015) |
Net income | 7,954 | 7,954 | |||||
Other Comprehensive Income (Loss), Net of Tax | 20 | 20 | |||||
Issuance of non-restricted stock (6,000 shares in Q3'20, 11,000 shares in Q3'19, 21,000 shares YTD in FY'20, 32,000 shares YTD in FY'19) | 0 | (138) | 138 | ||||
Compensation expense related to stock incentive plans | 1,121 | 1,121 | |||||
Repurchase of Common Stock (81,000 shares in Q3'20, 0 shares in Q3'19, 146,000 shares YTD in FY'20, 567,000 shares YTD in FY'19) | (2) | (2) | |||||
Dividends declared ($0.09 per share in Q3'20, $0.08 per share in Q3'19, $0.27 per share YTD in FY'20, $0.24 per share YTD in FY'19) | (2,967) | (2,967) | |||||
Shareowners’ Equity at Mar. 31, 2019 | 206,997 | 13 | 2,138 | 3,590 | 269,254 | 1,881 | (69,879) |
Shareowners’ Equity at Jun. 30, 2019 | 216,490 | 12 | 2,139 | 3,570 | 277,391 | 1,937 | (68,559) |
Net income | 31,874 | 31,874 | |||||
Other Comprehensive Income (Loss), Net of Tax | 213 | 213 | |||||
Issuance of non-restricted stock (6,000 shares in Q3'20, 11,000 shares in Q3'19, 21,000 shares YTD in FY'20, 32,000 shares YTD in FY'19) | 0 | (281) | 281 | ||||
Conversion of Class A to Class B common stock (1,000 shares in Q3'20, 0 shares in Q3'19, 58,000 shares YTD in FY'20, 7,000 shares YTD in FY'19) | 0 | (2) | 2 | (21) | 21 | ||
Compensation expense related to stock incentive plans | 4,395 | 4,395 | |||||
Performance share issuance (0 shares in Q3'20, 0 shares in Q3'19, 67,000 shares YTD in FY'20, 81,000 shares YTD in FY'19) | (512) | (1,391) | 879 | ||||
Restricted share units issuance (15,000 shares in Q3'20, 0 shares in Q3'19, 15,000 shares YTD in FY'20, 15,000 shares YTD in FY'19) | (125) | (327) | 202 | ||||
Relative total shareholder return performance units issuance (0 shares in Q3'20, 0 shares in Q3'19, 48,000 shares YTD in FY'20, 27,000 shares YTD in FY'19) | (330) | (954) | 624 | ||||
Reclassification of equity-classified awards | (680) | (680) | |||||
Repurchase of Common Stock (81,000 shares in Q3'20, 0 shares in Q3'19, 146,000 shares YTD in FY'20, 567,000 shares YTD in FY'19) | (3,004) | (3,004) | |||||
Dividends declared ($0.09 per share in Q3'20, $0.08 per share in Q3'19, $0.27 per share YTD in FY'20, $0.24 per share YTD in FY'19) | (10,071) | (10,071) | |||||
Shareowners’ Equity at Mar. 31, 2020 | 238,250 | 10 | 2,141 | 4,311 | 299,194 | 2,150 | (69,556) |
Shareowners’ Equity at Dec. 31, 2019 | 232,589 | 10 | 2,141 | 3,423 | 293,089 | 2,120 | (68,194) |
Net income | 9,451 | 9,451 | |||||
Other Comprehensive Income (Loss), Net of Tax | 30 | 30 | |||||
Issuance of non-restricted stock (6,000 shares in Q3'20, 11,000 shares in Q3'19, 21,000 shares YTD in FY'20, 32,000 shares YTD in FY'19) | 0 | (79) | 79 | ||||
Conversion of Class A to Class B common stock (1,000 shares in Q3'20, 0 shares in Q3'19, 58,000 shares YTD in FY'20, 7,000 shares YTD in FY'19) | 0 | 0 | 0 | (21) | 21 | ||
Compensation expense related to stock incentive plans | 1,315 | 1,315 | |||||
Restricted share units issuance (15,000 shares in Q3'20, 0 shares in Q3'19, 15,000 shares YTD in FY'20, 15,000 shares YTD in FY'19) | (125) | (327) | 202 | ||||
Repurchase of Common Stock (81,000 shares in Q3'20, 0 shares in Q3'19, 146,000 shares YTD in FY'20, 567,000 shares YTD in FY'19) | (1,664) | (1,664) | |||||
Dividends declared ($0.09 per share in Q3'20, $0.08 per share in Q3'19, $0.27 per share YTD in FY'20, $0.24 per share YTD in FY'19) | (3,346) | (3,346) | |||||
Shareowners’ Equity at Mar. 31, 2020 | $ 238,250 | $ 10 | $ 2,141 | $ 4,311 | $ 299,194 | $ 2,150 | $ (69,556) |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) Parentheticals - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Allowance for Doubtful Accounts, Premiums and Other Receivables | $ 2,531 | $ 1,321 |
Property and Equipment Accumulated Depreciation | 192,134 | 185,865 |
Intangible Assets Accumulated Amortization | $ 39,998 | $ 38,320 |
Class A Common Stock | ||
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 193,000 | 251,000 |
Common Stock, Par or Stated Value Per Share | $ 0.05 | $ 0.05 |
Class B Common Stock | ||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 42,830,000 | 42,773,000 |
Treasury Stock, Shares | 6,205,000 | 6,212,000 |
Common Stock, Par or Stated Value Per Share | $ 0.05 | $ 0.05 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (unaudited) - Cash Reconciliation - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | |
Cash and cash equivalents | $ 76,636 | $ 73,196 | $ 49,489 | $ 52,663 | |
Restricted cash included in Other Assets | 645 | 641 | 638 | 658 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | [1] | $ 77,281 | $ 73,837 | $ 50,127 | $ 53,321 |
[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. Restricted cash also included customer deposits held due to a foreign entity being classified as a restricted entity by a government agency subsequent to our receipt of the deposit. |
Condensed Consolidated Statem_6
Condensed Consolidated Statement of Shareowners' Equity (unaudited) Parentheticals - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Issuance of non-restricted stock, Shares | 6,000 | 11,000 | 21,000 | 32,000 |
Conversion of Class A to Class B common stock, Shares | 1,000 | 58,000 | 7,000 | |
Performance Share Issuance, Shares | 67,000 | 81,000 | ||
Vesting of restricted share units, Shares | 15,000 | 15,000 | 15,000 | |
Relative total shareholder return performance units issuance, Shares | 48,000 | 27,000 | ||
Repurchase of Common Stock, Shares | 81,000 | 100 | 146,000 | 567,000 |
Common Stock, Dividends, Per Share, Declared | $ 0.09 | $ 0.08 | $ 0.27 | $ 0.24 |
Note 1. Basis of Presentation (
Note 1. Basis of Presentation (Notes) | 9 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation [Abstract] | |
Business Description and Basis of Presentation | Basis of PresentationThe accompanying unaudited Condensed Consolidated Financial Statements of Kimball International, Inc. (the “Company,” “Kimball International,” “we,” “us,” or “our”) have been prepared in accordance with the instructions to Form 10-Q. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted, although we believe that the disclosures are adequate to make the information presented not misleading. Intercompany transactions and balances have been eliminated. Management believes the financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly the financial statements for the interim periods. The results of operations for the interim periods shown in this report are not necessarily indicative of results for any future interim period or for the entire fiscal year. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in our latest annual report on Form 10-K. Additionally, based on the duration and severity of the current global situation involving the COVID-19 pandemic, including but not limited to the length of the various government orders requiring temporary suspension of non-essential business operations, duration of limits on travel, and the speed of the recovery of economic conditions globally, the extent to which COVID-19 will impact our business and our consolidated financial results will depend on future developments, which are highly uncertain and cannot be predicted. |
Note 2. Recent Accounting Prono
Note 2. Recent Accounting Pronouncements and Supplemental Information (notes) | 9 Months Ended |
Mar. 31, 2020 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | |
Recent Accounting Pronouncements and Supplemental Information | Recent Accounting Pronouncements and Supplemental Information Recently Adopted Accounting Pronouncements: In March 2017, the Financial Accounting Standards Board (“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. The guidance was effective for our first quarter of fiscal year 2020. The adoption did not have a material effect on our condensed consolidated financial statements. In February 2016, the FASB issued guidance that revises the accounting for leases. The guidance is intended to improve financial reporting of leasing transactions by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. Leases will continue to be classified as either operating or finance leases, with the classification affecting the pattern of expense recognition in the statement of income. The guidance also requires additional disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. In January 2018, the FASB issued additional guidance for land easements which permits entities to forgo the evaluation of existing land easement arrangements to determine if they contain a lease. New land easement arrangements, or modifications to existing arrangements, after the adoption of the lease standard will be evaluated to determine if they meet the definition of a lease. In July 2018, the FASB amended the new standard to clarify certain aspects of the guidance, and they also issued another new standard in July 2018 that allows the option to apply the transition provisions at the adoption date instead of at the earliest comparative period in the condensed consolidated financial statements. In March 2019, the FASB issued clarifying guidance regarding interim transition disclosures. We adopted this lease guidance as of the beginning of our fiscal year 2020. We have assessed our portfolio of leases and compiled a central repository of leases, recording a right-of-use asset and a lease liability for all leases with a lease term of greater than twelve months. All changes required by the new standard, including accounting policies, controls, and disclosures, have been identified and implemented. See Note 6 - Leases in the Notes to Condensed Consolidated Financial Statements for additional information. 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 do not expect the adoption to have a material effect on our condensed consolidated financial statements. In August 2018, the FASB issued guidance which changes the fair value measurement disclosure requirements. The guidance modifies and removes certain disclosures related to the fair value hierarchy, and adds new disclosure requirements such as disclosing the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance is effective for our first quarter of fiscal year 2021 with early adoption permitted and should be applied retrospectively except for certain disclosures. We have not yet determined the effect of this guidance on our condensed consolidated financial statements. In 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. In November 2019, the FASB amended the new standard to extend the disclosure relief for accrued interest receivable balances to additional relevant disclosures involving amortized cost basis. The guidance is effective for our first quarter of fiscal year 2021 with early adoption in our fiscal year 2020 permitted. We have not yet determined the effect of this guidance on our condensed consolidated financial statements. Goodwill and Other Intangible Assets: Our most recently completed goodwill impairment analyses, which was completed during our second quarter of fiscal year 2020, indicated significant excess fair values over carrying values across the different reporting units. We do not currently consider the COVID-19 pandemic to be a triggering event to accelerate our annual goodwill impairment analysis. During the quarter and year-to-date period ended March 31, 2020, no goodwill or intangible asset impairment was recognized. 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. As of March 31, 2020 and June 30, 2019 our goodwill totaled $11.2 million. Other Intangible Assets reported on the Condensed Consolidated Balance Sheets consist of capitalized software, customer relationships, trade names, and non-compete agreements. Intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. A summary of intangible assets subject to amortization is as follows: March 31, 2020 June 30, 2019 (Amounts in Thousands) Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Capitalized Software $ 42,617 $ 37,426 $ 5,191 $ 39,708 $ 36,662 $ 3,046 Customer Relationships 7,050 1,661 5,389 7,050 1,030 6,020 Trade Names 3,570 863 2,707 3,570 595 2,975 Non-Compete Agreements 100 48 52 100 33 67 Other Intangible Assets $ 53,337 $ 39,998 $ 13,339 $ 50,428 $ 38,320 $ 12,108 Amortization expense related to intangible assets was, in thousands, $639 and $1,707 during the quarter and year-to-date period ended March 31, 2020, and $496 and $1,455 during the quarter and year-to-date period ended March 31, 2019. Amortization expense in future periods is expected to be, in thousands, $680 for the remainder of fiscal year 2020, and $2,506, $2,039, $1,637, and $1,404 in the four years ending June 30, 2024, and $5,073 thereafter. The estimated useful life of capitalized software ranges from 2 to 10 years. The amortization period for customer relationship intangible assets is 20 years. The estimated useful life of trade names is 10 years. The estimated useful life of non-compete agreements is 5 years. Capitalized software is stated at cost less accumulated amortization and is amortized using the straight-line method. During the software application development stage, capitalized costs include external consulting costs, cost of software licenses, and internal payroll and payroll-related costs for employees who are directly associated with a software project. Upgrades and enhancements are capitalized if they result in added functionality which enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion, and business process re-engineering costs are expensed in the period in which they are incurred. Trade names and non-compete agreements are amortized on a straight-line basis over their estimated useful lives. Capitalized customer relationships are amortized based on estimated attrition rates of customers. We have no intangible assets with indefinite useful lives which are not subject to amortization. Notes Receivable and Trade Accounts Receivable: Notes receivable and trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. We determine on a case-by-case basis the cessation of accruing interest, the resumption of accruing interest, the method of recording payments received on non accrual receivables, and the delinquency status for our limited number of notes receivable. Our policy for estimating the allowance for credit losses on trade accounts receivable and notes receivable includes analysis of such items as aging, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to determine the final allowance for credit losses on the trade accounts receivable and notes receivable. Trade accounts receivable and notes receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Our limited amount of notes receivable allows management to monitor the risks, credit quality indicators, collectability, and probability of impairment on an individual basis. Adjustments to the allowance for credit losses are recorded in selling and administrative expenses. Customary terms require payment within 30 days, with terms beyond 30 days being considered extended. Non-operating Income (Expense), net: The non-operating income (expense), net line item includes the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, amortization of actuarial income, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain or loss on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. Components of the Non-operating income (expense), net line, were: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands) 2020 2019 2020 2019 Gain (Loss) on SERP Investments $ (1,784) $ 1,032 $ (1,010) $ 306 Other (294) (62) (350) (235) Non-operating income (expense), net $ (2,078) $ 970 $ (1,360) $ 71 |
Note 3. Restructuring (Notes)
Note 3. Restructuring (Notes) | 9 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring 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 by centralizing manufacturing operations. We have ceased operations at a leased seating manufacturing facility in Martinsville, Virginia and will be consolidating the David Edward production facility in Red Lion, Pennsylvania into our Baltimore, Maryland facility near the end of our 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 resulted in the standardization of processes and the elimination of duplication. In addition, we centralized 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 were reallocated to higher-growth markets. We also ceased use of four leased furniture showrooms across our brands during the first quarter of fiscal year 2020 and recognized impairment of the leases and associated leasehold improvements. 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 $9.0 million to $10.0 million. The restructuring charges are expected to consist of approximately $3.7 million to $4.0 million for severance and other employee-related costs, $2.5 million to $3.0 million for facility exit and other costs, and $2.8 million to $3.0 million for 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 Transformation Restructuring Plan is as follows: Three Months Ended Nine Months Ended Charges incurred to date (Amounts in Thousands) March 31, 2020 March 31, 2020 Cash-related restructuring charges: Severance and other employee related costs $ 203 $ 2,194 $ 2,857 Facility exit costs and other cash charges 424 1,416 1,619 Total cash-related restructuring charges $ 627 $ 3,610 $ 4,476 Non-cash charges: Transition stock compensation 9 663 734 Impairment of assets 132 2,190 2,190 Other non-cash charges 50 101 101 Total non-cash charges $ 191 $ 2,954 $ 3,025 Total charges $ 818 $ 6,564 $ 7,501 A summary of the current period activity in accrued restructuring related to the Transformation Restructuring Plan is as follows: (Amounts in Thousands) Severance and other employee related costs Facility exit and other costs Total Balance at June 30, 2019 $ 619 $ 203 $ 822 Additions charged to expense 2,535 379 2,914 Cash payments charged against reserve (2,683) (582) (3,265) Non-cash adjustments (160) — (160) Balance at March 31, 2020 $ 311 $ — $ 311 To date, we have recognized $7.5 million of restructuring costs related to the Transformation Restructuring Plan. We expect this restructuring plan to be complete by June 30, 2020, but this timing may be impacted by the COVID-19 pandemic. It is currently estimated that this plan will incur an additional $1.5 million to $2.5 million of future restructuring charges. |
Note 4. Acquisition (Notes)
Note 4. Acquisition (Notes) | 9 Months Ended |
Mar. 31, 2020 | |
Acquisition [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | AcquisitionOn 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. 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 purchase price allocation did not change from the amounts disclosed in our Annual Report on Form 10-K for 2019 and is final. We will be consolidating the David Edward production facility in Red Lion, Pennsylvania into our Baltimore, Maryland facility near the end of our fiscal year 2020 as part of our Transformation Restructuring Plan. |
Note 5. Revenue (Notes)
Note 5. Revenue (Notes) | 9 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Disaggregation of Revenue The following table provides information about revenue by market: Three Months Ended Nine Months Ended March 31, March 31, (Amounts in Millions) 2020 2019 2020 2019 Institutional $ 63.5 $ 61.3 $ 215.7 $ 202.8 Commercial 71.0 67.8 216.0 224.3 Hospitality 43.7 48.3 140.1 145.4 Total Net Sales $ 178.2 $ 177.4 $ 571.8 $ 572.5 Our Institutional market includes sales to the healthcare, education and government verticals. Our Commercial market includes sales to the commercial and financial verticals. We report revenue under a single aggregated reportable segment consisting of three operating segments which have similar products and services in nature, utilize similar production and distribution processes, and share similar long-term economic characteristics. Contract Balances Receivables in the Condensed Consolidated Balance Sheets represent the amount of consideration to which we are entitled in exchange for the goods or services sold to our customers, net of allowances for doubtful accounts. Receivables are recorded when the right to consideration from the customer becomes unconditional, which is generally upon billing or upon satisfaction of a performance obligation, whichever is earlier. We also receive deposits from certain customers before revenue is recognized, resulting in the recognition of a contract liability reported as Customer Deposits in the Condensed Consolidated Balance Sheets. Customer deposits are typically utilized within a year of the receipt of the deposit. The amount of revenue recognized during the nine months ended March 31, 2020 that was included in the June 30, 2019 customer deposit balance was $24.5 million. |
Note 6. Leases (Notes)
Note 6. Leases (Notes) | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases At the beginning of our fiscal year 2020, we adopted new accounting guidance (“ASC 842”) regarding leases on a prospective basis. This guidance requires lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. The effects of the initial application did not result in a cumulative adjustment to retained earnings. We recognize lease liabilities at the lease commencement date based upon the present value of the remaining lease payments. Right-of-use assets are based on the lease liability adjusted for prepaid rent, deferred rent, and tenant allowances received. Lease liabilities are amortized based upon the effective interest method, while right-of-use assets are amortized based upon the straight line expense less interest on the lease liability. Lease expense for lease payments is recognized on a straight-line basis over the lease term, except for impaired leases for which the lease expense is recognized on a declining basis over the remaining lease term. Variable lease expense associated with our leases is dependent upon the occurrence of events, activities, or circumstances in lease agreements, such as warehouse square footage utilized, property taxes assessed, and other non-lease component charges. Variable lease expense is presented as operating expense in our Condensed Consolidated Statements of Income and Comprehensive Income in the same line item as expense arising from fixed lease payments for operating leases. We have operating leases for showrooms, manufacturing facilities, warehouses, certain offices, and other facilities to support our operations in addition to select equipment that expire at various dates through 2028. We have no financing leases. Certain operating lease agreements include rental payments adjusted periodically for inflationary indexes. Additionally, some leases include options to renew or terminate the leases which can be exercised at our discretion. Lease terms include the noncancellable portion of the underlying leases along with any reasonably certain lease periods associated with available renewal periods. Our leases do not contain residual value guarantees or material restrictive covenants. As the rate implicit in our lease contracts cannot be readily determined, we use an estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The estimated incremental borrowing rate represents the estimated rate of interest we would have to pay to borrow an amount equal to the lease payments for a similar period of time on a collateralized basis. The components of our lease expenses are as follows: Three Months Ended Nine Months Ended (Amounts in Millions) March 31, 2020 March 31, 2020 Operating lease expense $ 0.9 $ 2.5 Variable lease expense 0.6 1.8 Total lease expense $ 1.5 $ 4.3 Right-of-use assets for operating leases are tested for impairment in the same manner as long-lived assets used in operations. During the first quarter of fiscal year 2020, we recorded $2.2 million of right-of-use asset and associated leasehold improvement impairment resulting from ceasing use of four furniture showrooms after the implementation of ASC 842 as part of our transformation restructuring plan. The impairment is included in the Restructuring Expense line item on our Condensed Consolidated Statements of Income. Supplemental cash flow and other information related to leases are as follows: Nine Months Ended (Amounts in Millions) March 31, 2020 Cash flow information: Operating lease payments impacting lease liability $ 3.6 Leased assets obtained in exchange for operating lease liabilities $ 2.1 As of (Amounts in Millions) March 31, 2020 Other information: Weighted-average remaining term (in years) 6.1 Weighted-average discount rate 4.7 % The following table summarizes the future minimum lease payments as of March 31, 2020: Fiscal Year Ended (Amounts in Millions) June 30 (1) 2020 $ 1.1 2021 4.9 2022 4.7 2023 4.1 2024 3.4 Thereafter 7.0 Total lease payments $ 25.2 Less interest 3.2 Present value of lease liabilities $ 22.0 (1) Lease payments include options to extend lease terms that are reasonably certain of being exercised. The payments exclude legally binding minimum lease payments for leases signed but not yet commenced. The following table summarizes the future minimum lease payments as of June 30, 2019 before adoption of ASC 842: Fiscal Year Ended (Amounts in Millions) June 30 2020 $ 4.6 2021 4.2 2022 4.1 2023 3.6 2024 2.5 Thereafter 3.8 Total lease payments $ 22.8 Practical Expedients Elected We elected the following practical expedients as a result of adopting ASC 842: • We elected not to separate non-lease components of a contract from the lease components to which they relate for all classes of lease assets. • We elected the package of practical expedients available for transition which allowed us not to reassess (1) whether any expired or existing contracts contain leases, (2) the classification of the leases as operating or finance and (3) the amount of initial direct costs associated with the leases. • We elected that our date of initial application be the beginning of our period of adoption which was July 1, 2019. • We elected not to recognize a right-of-use asset or lease liability for short-term leases that have a lease term of twelve months or less. • We elected not to assess whether land easements that were not previously accounted for as leases are or contain a lease. • We did not elect to use hindsight in determining the lease term and in assessing the likelihood that a lessee purchase option will be exercised. |
Note 7. Earnings Per Share (Not
Note 7. Earnings Per Share (Notes) | 9 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share are based on the weighted average number of shares outstanding during the period. Diluted earnings per share are based on the weighted average number of shares outstanding plus the assumed issuance of common shares for all potentially dilutive securities. Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands, Except for Per Share Data) 2020 2019 2020 2019 Net Income $ 9,451 $ 7,954 $ 31,874 $ 28,235 Average Shares Outstanding for Basic EPS Calculation 36,813 36,712 36,890 36,871 Dilutive Effect of Average Outstanding Compensation Awards 276 197 344 389 Average Shares Outstanding for Diluted EPS Calculation 37,089 36,909 37,234 37,260 Basic Earnings Per Share $ 0.26 $ 0.22 $ 0.86 $ 0.77 Diluted Earnings Per Share $ 0.25 $ 0.22 $ 0.86 $ 0.76 |
Note 8. Income Taxes (Notes)
Note 8. Income Taxes (Notes) | 9 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income TaxesIn determining the quarterly provision for income taxes, we use an estimated annual effective tax rate which is based on expected annual income, statutory tax rates, and available tax planning opportunities in the various jurisdictions in which we operate. Unusual or infrequently occurring items are separately recognized in the quarter in which they occur. Our effective tax rate was 23.5% for the three months ended March 31, 2020, which was less than the combined federal and state statutory tax rate primarily due to the R&D tax credit. Our effective tax rate was 26.7% for the nine months ended March 31, 2020, which approximated the combined federal and state statutory rate. Our effective tax rate was 24.1% and 24.7%, respectively, for the three and nine months ended March 31, 2019, which was less than the combined federal and state statutory rate in part due to the R&D tax credit. |
Note 9. Inventories
Note 9. Inventories | 9 Months Ended |
Mar. 31, 2020 | |
Inventories [Abstract] | |
Inventory Disclosure | Inventories Inventory components were as follows: (Amounts in Thousands) March 31, 2020 June 30, Finished products $ 28,160 $ 26,304 Work-in-process 1,875 2,455 Raw materials 37,007 34,335 Total FIFO inventory 67,042 63,094 LIFO reserve, net (16,332) (16,282) Total inventory $ 50,710 $ 46,812 |
Note 10. Accumulated Other Comp
Note 10. Accumulated Other Comprehensive Income | 9 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Comprehensive Income | Accumulated Other Comprehensive Income During the three months ended March 31, 2020 and 2019, the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: Accumulated Other Comprehensive Income (Amounts in Thousands) Unrealized Investment Gain (Loss) Postemployment Benefits Net Actuarial Gain (Loss) Derivative Gain (Loss) Accumulated Other Comprehensive Income Balance at December 31, 2019 $ 8 $ 2,112 $ — $ 2,120 Other comprehensive income (loss) before reclassifications 2 89 — 91 Reclassification to (earnings) loss — (61) — (61) Net current-period other comprehensive income (loss) 2 28 — 30 Balance at March 31, 2020 $ 10 $ 2,140 $ — $ 2,150 Balance at December 31, 2018 $ (20) $ 1,881 $ — $ 1,861 Other comprehensive income (loss) before reclassifications 20 74 — 94 Reclassification to (earnings) loss — (74) — (74) Net current-period other comprehensive income (loss) 20 — — 20 Balance at March 31, 2019 $ — $ 1,881 $ — $ 1,881 During the nine months ended March 31, 2020 and 2019, the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: Accumulated Other Comprehensive Income (Amounts in Thousands) Unrealized Investment Gain (Loss) Postemployment Benefits Net Actuarial Gain (Loss) Derivative Gain (Loss) Accumulated Other Comprehensive Income Balance at June 30, 2019 $ 23 $ 1,914 $ — $ 1,937 Other comprehensive income (loss) before reclassifications (13) 419 — 406 Reclassification to (earnings) loss — (193) — (193) Net current-period other comprehensive income (loss) (13) 226 — 213 Balance at March 31, 2020 $ 10 $ 2,140 $ — $ 2,150 Balance at June 30, 2018 $ (31) $ 1,854 $ (7) $ 1,816 Other comprehensive income (loss) before reclassifications 31 251 (9) 273 Reclassification to (earnings) loss — (224) 16 (208) Net current-period other comprehensive income (loss) 31 27 7 65 Balance at March 31, 2019 $ — $ 1,881 $ — $ 1,881 The following reclassifications were made from Accumulated Other Comprehensive Income to the Condensed Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income Three Months Ended Nine Months Ended Affected Line Item in the Condensed Consolidated Statements of Income March 31, March 31, (Amounts in Thousands) 2020 2019 2020 2019 Postemployment Benefits Amortization of Actuarial Gain (1) $ 82 $ 100 $ 260 $ 302 Non-operating income (expense), net (21) (26) (67) (78) Benefit (Provision) for Income Taxes $ 61 $ 74 $ 193 $ 224 Net Income Derivative Gain (Loss) $ — $ — $ — $ (21) Non-operating income (expense), net — — — 5 Benefit (Provision) for Income Taxes $ — $ — $ — $ (16) Net Income Total Reclassifications for the Period $ 61 $ 74 $ 193 $ 208 Net Income Amounts in parentheses indicate reductions to income. (1) See Note 15 - Postemployment Benefits |
Note 11. Commitments and Contin
Note 11. Commitments and Contingent Liabilities | 9 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingent Liabilities Guarantees: Standby letters of credit were issued to lessors and insurance institutions and can only be drawn upon in the event of our failure to pay our obligations to a beneficiary. As of March 31, 2020, we had a maximum financial exposure from unused standby letters of credit totaling $1.6 million. We are periodically required to provide performance bonds in order to conduct business with certain customers. The bonds are required to provide assurances to customers that the products and services they have purchased will be installed and/or provided properly and without damage to their facilities. We are ultimately liable for claims that may occur against the performance bonds. We had a maximum financial exposure from performance bonds totaling $5.4 million as of March 31, 2020. We are not aware of circumstances that would require us to perform under these arrangements and believe that the resolution of any claims that might arise in the future, either individually or in the aggregate, would not materially affect our condensed consolidated financial statements. Accordingly, no liability has been recorded as of March 31, 2020 with respect to the standby letters of credit. We also enter into commercial letters of credit to facilitate payments to vendors and from customers. Product Warranties: We provide an assurance-type warranty that guarantees our product complies with agreed-upon specifications. This warranty is not sold separately and does not convey any additional services to the customer. We estimate product warranty liability at the time of sale based on historical repair or replacement cost trends in conjunction with the length of the warranty offered. Management refines the warranty liability periodically based on changes in historical cost trends and in certain cases where specific warranty issues become known. Changes in the product warranty accrual for the nine months ended March 31, 2020 and 2019 were as follows: Nine Months Ended March 31 (Amounts in Thousands) 2020 2019 Product Warranty Liability at the beginning of the period $ 2,238 $ 2,294 Additions to warranty accrual (including changes in estimates) 3,318 420 Settlements made (in cash or in kind) (2,356) (797) Product Warranty Liability at the end of the period $ 3,200 $ 1,917 |
Note 12. Fair Value
Note 12. Fair Value | 9 Months Ended |
Mar. 31, 2020 | |
Fair Value [Abstract] | |
Fair Value Disclosures | Fair Value We categorize assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: • Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. Our policy is to recognize transfers between these levels as of the end of each quarterly reporting period. There were no transfers between these levels during the nine months ended March 31, 2020. There were also no changes in the inputs or valuation techniques used to measure fair values compared to those disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2019. 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 13 - Investments in the Notes to Condensed Consolidated Financial Statements for further information regarding the investment in equity securities without readily determinable fair value, and Note 14 - Derivative Instruments in the Notes to Condensed Consolidated Financial Statements for further information regarding the investment in stock warrants. No purchases or sales of Level 3 assets occurred during the nine months ended March 31, 2020. 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. Contingent earn-out liability 3 Income - Based on a valuation model that measures the present value of the probable cash payments based upon the forecasted operating performance of the acquisition and a discount rate that captures the risk associated with the liability. Recurring Fair Value Measurements: As of March 31, 2020 and June 30, 2019, the fair values of financial assets that are measured at fair value on a recurring basis using the market or income approach are categorized as follows: March 31, 2020 (Amounts in Thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 69,027 $ — $ — $ 69,027 Cash equivalents: Commercial paper — 7,192 — 7,192 Available-for-sale securities: Secondary market certificates of deposit — 6,220 — 6,220 Available-for-sale securities: U.S. Treasury and federal agencies — 7,438 — 7,438 Trading Securities: Mutual funds in nonqualified SERP 10,591 — — 10,591 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 79,618 $ 20,850 $ 1,500 $ 101,968 June 30, 2019 (Amounts in Thousands) 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 The fair value of the contingent earn-out liability as of June 30, 2019 of $0.4 million was paid out during the quarter ended September 30, 2019, relating to fiscal year 2019 performance of D’style, an acquired business. 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 13 - Investments in the Notes to Condensed Consolidated Financial Statements for further information regarding the SERP. Non-Recurring Fair Value Measurements: Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments when events or circumstances indicate a significant adverse effect on the fair value of the asset. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. Non-recurring Fair Value Adjustment Level Valuation Technique/Inputs Used Impairment of Leases 3 Income - Based on a valuation model that measures the present value of remaining lease payments less estimated sublease income at a discount rate that captures the risk associated with the future cash flows. During the first quarter of fiscal year 2020, due to ceasing use of four showrooms related to the Transformation Restructuring Plan, we recognized an impairment loss of $2.2 million to reduce the related asset groups to fair value. The impairment loss is included as a component of the Restructuring Expense line item on our Condensed Consolidated Statements of Income. The asset groups used to calculate impairment included the right-of-use lease assets, leasehold improvements, and lease liabilities. Financial Instruments Not Carried At Fair Value: Financial instruments that are not reflected in the Condensed Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk. Equity securities without readily determinable fair value 3 Cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Impairment is assessed qualitatively. On a periodic basis, but no less frequently than quarterly, the investment in equity securities without readily determinable fair value is qualitatively assessed for impairment when there are events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. If a significant adverse effect on the fair value of the investment were to occur and was deemed to be other-than-temporary, the fair value of the investment would be estimated, and the amount by which the carrying value of the investment exceeds its fair value would be recorded as an impairment loss. See Note 13 - Investments in the Notes to Condensed Consolidated Financial Statements for the carrying amount of this investment. The carrying value of our cash deposit accounts, trade accounts receivable, trade accounts payable, customer deposits, and dividends payable approximates fair value due to the relatively short maturity and immaterial non-performance risk. |
Note 13. Investments
Note 13. Investments | 9 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | Investments Investment Portfolio: Our investment portfolio has consisted of municipal bonds, certificates of deposit purchased in the secondary market, and U.S. Treasury and federal agency securities. Municipal bonds include general obligation bonds and revenue bonds, some of which are pre-refunded. U.S. Treasury securities represent Treasury Bills and Notes of the U.S. government. Federal agency securities represent debt securities of a U.S. government sponsored agency, and certain of these securities are callable. Our investment policy dictates that municipal bonds, U.S. Treasury and federal agency securities must be investment grade quality. Our secondary market certificates of deposit are classified as investment securities, being purchased in the secondary market through a broker and available to be sold in the secondary market. All certificates of deposit are FDIC insured. Our investment portfolio is available for use in current operations; therefore, investments are recorded within Current Assets in the Condensed Consolidated Balance Sheets. The contractual maturities of our investment portfolio were as follows (maturity dates for government agency securities are based on the first available call date, if applicable): March 31, 2020 (Amounts in Thousands) Certificates of Deposit Municipal Bonds U.S. Treasury and Federal Agencies Within one year $ 5,720 $ — $ 7,438 After one year through two years 500 — — Total Fair Value $ 6,220 $ — $ 7,438 All investments are classified as available-for-sale securities which are recorded at fair value. See Note 12 - Fair Value in the Notes to Condensed Consolidated Financial Statements for more information on the fair value of available-for-sale securities. The amortized cost basis reflects the original purchase price, with discounts and premiums amortized over the life of the available-for-sale securities. Unrealized losses on available-for-sale securities are recognized in earnings when there is intent to sell or it is likely to be required to sell before recovery of the loss, or when the available-for-sale securities have incurred a credit loss. Otherwise, unrealized gains and losses are recorded net of the tax-related effect as a component of Shareholders’ Equity. March 31, 2020 (Amounts in Thousands) Certificates of Deposit Municipal Bonds U.S. Treasury and Federal Agencies Amortized cost basis $ 6,220 $ — $ 7,423 Unrealized holding gains — — 15 Unrealized holding losses — — — Fair Value $ 6,220 $ — $ 7,438 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 No investments were in a continuous unrealized loss position for greater than twelve months as of March 31, 2020. There were no realized gains or losses as a result of sales in the three and nine months ended March 31, 2020 and March 31, 2019. Supplemental Employee Retirement Plan Investments: We maintain a self-directed SERP in which executive employees are eligible to participate. The SERP utilizes a rabbi trust, and therefore assets in the SERP portfolio are subject to creditor claims in the event of bankruptcy. We recognize SERP investment assets on the Condensed Consolidated Balance Sheets at current fair value. A SERP liability of the same amount is recorded on the Condensed Consolidated Balance Sheets representing an obligation to distribute SERP funds to participants. The SERP investment assets are classified as trading, and accordingly, realized and unrealized gains and losses are recognized in the Other Income (Expense) section of the Condensed Consolidated Statements of Income. Adjustments made to revalue the SERP liability are also recognized in income or expense as selling and administrative expenses and offset valuation adjustments on SERP investment assets. Net unrealized holding losses for the nine months ended March 31, 2020 and 2019 were, in thousands, $1,569 and $104, respectively. SERP asset and liability balances were as follows: (Amounts in Thousands) March 31, June 30, SERP investments - current asset $ 2,878 $ 3,087 SERP investments - other long-term asset 7,713 8,687 Total SERP investments $ 10,591 $ 11,774 SERP obligation - current liability $ 2,878 $ 3,087 SERP obligation - other long-term liability 7,713 8,687 Total SERP obligation $ 10,591 $ 11,774 Equity securities without readily determinable fair value: We hold a total investment of $2.0 million in a privately-held company, including $0.5 million in equity securities without readily determinable fair value. The investment in equity securities without readily determinable fair value is included in the Other Assets line of the Condensed Consolidated Balance Sheets. See Note 12 - Fair Value in the Notes to Condensed Consolidated Financial Statements for more information on the valuation of these securities. We do not hold a majority voting interest and are not the variable interest primary beneficiary of the privately-held company, thus consolidation is not required. |
Note 14. Derivative Instruments
Note 14. Derivative Instruments | 9 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | Derivative Instruments We hold a total investment of $2.0 million in a privately-held company, including $1.5 million in stock warrants. The investment in stock warrants is accounted for as a derivative instrument and is included in the Other Assets line of the Condensed Consolidated Balance Sheets. The stock warrants are convertible into equity shares of the privately-held company upon achieving certain milestones. The value of the stock warrants will fluctuate primarily in relation to the value of the privately-held company's underlying securities, either providing an appreciation in value or potentially expiring with no value. During the quarter ended March 31, 2020, the change in fair value of the stock warrants was not significant. See Note 12 - Fair Value in the Notes to Condensed Consolidated Financial Statements for more information on the valuation of these securities. |
Note 15. Postemployment Benefit
Note 15. Postemployment Benefits | 9 Months Ended |
Mar. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Postemployment Benefits Disclosure | Postemployment Benefits Our domestic employees participate in severance plans which provide severance benefits to eligible employees meeting the plans’ qualifications, primarily for involuntary termination without cause. The components of net periodic postemployment benefit cost applicable to our severance plans were as follows: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands) 2020 2019 2020 2019 Service cost $ 120 $ 126 $ 365 $ 379 Interest cost 19 23 56 70 Amortization of actuarial income (82) (100) (260) (302) Net periodic benefit cost $ 57 $ 49 $ 161 $ 147 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 restructuring actions, are not estimable using actuarial methods and are expensed in accordance with the applicable U.S. GAAP. |
Note 16. Stock Compensation
Note 16. Stock Compensation | 9 Months Ended |
Mar. 31, 2020 | |
Stock Compensation Plan [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments | Stock CompensationStock-based compensation expense during the quarter and year-to-date period ended March 31, 2020 was $1.3 million and $4.5 million, respectively, and during the quarter and year-to-date period ended March 31, 2019, was $1.1 million and $4.7 million, respectively. The total income tax benefit for stock compensation arrangements during the quarter and year-to-date period ended March 31, 2020, was $0.4 million and $1.2 million, respectively, and during the quarter and year-to-date period ended March 31, 2019, was $0.3 million and $1.2 million, respectively. During fiscal year 2020, the following stock compensation was awarded to officers and other key employees and to members of the Board of Directors who are not employees. All awards were granted under the 2017 Stock Incentive Plan. For more information on stock compensation awards, refer to our Annual Report on Form 10-K for the fiscal year ended June 30, 2019. Type of Award Quarter Awarded Targeted Shares or Units Grant Date Fair Value (5) Annual Performance Shares (1) 1st Quarter 34,305 $16.85 - $16.93 Annual Performance Shares (1) 3rd Quarter 1,085 $18.43 - $20.28 Relative Total Shareholder Return Performance Units (2) 1st Quarter 28,080 $21.25 Relative Total Shareholder Return Performance Units (2) 3rd Quarter 7,190 $18.08 - $19.76 Restricted Stock Units (3) 1st Quarter 188,588 $16.85 - $17.24 Restricted Stock Units (3) 2nd Quarter 2,500 $20.46 Restricted Stock Units (3) 3rd Quarter 22,933 $18.78 - $20.63 Unrestricted Shares (4) 1st Quarter 9,091 $17.19 Unrestricted Shares (4) 2nd Quarter 6,321 $19.18 Unrestricted Shares (4) 3rd Quarter 5,985 $20.66 (1) Annual performance shares were awarded to officers and other key employees. The number of annual performance shares to be issued will be dependent upon the Company’s return on invested capital during fiscal year 2020, with a percentage payout ranging from 0% to 200% of the target number set forth above. The maximum number of shares that can be issued under these awards is 70,780. Annual performance shares vest on June 30, 2020. (2) Performance units were awarded to key officers under the Company’s Relative Total Shareholder Return program. Vesting occurs at June 30, 2021 and June 30, 2022. Participants will earn from 0% to 200% of the target award depending upon how the compound annual growth rate of Kimball International common stock ranks within the peer group at the end of the performance period. The maximum number of units that can be issued under these awards is 70,540. (3) Restricted stock units were awarded to officers and employees. Also, in connection with the redesign of the Company’s annual cash incentive plan certain employees were awarded time-based retention and performance-based transition units. The number of performance-based transition units to be issued will be dependent upon the Company’s EBITDA during fiscal year 2020, with a percentage payout ranging from 0% to 100% of the target. The maximum number of units that can be issued under the performance-based transition awards is 35,598. The Company also awarded performance-based transformation units that will earn from 0% to 100% of the target award depending upon the Company’s reduction of operating costs and EBITDA during fiscal year 2020. The maximum number of units that can be issued under the performance-based transformation award is 2,165. Vesting occurs at June 30, 2020, June 30, 2021, and June 30, 2022. Dividends accumulate over the vesting period for all awards except the time-based retention and performance-based transition awards. (4) Unrestricted shares were awarded to non-employee members of the Board of Directors as consideration for service to Kimball International and do not have vesting periods, holding periods, restrictions on sale, or other restrictions. (5) The grant date fair value of annual performance shares and restricted stock units that do not receive dividends was based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding annual performance share awards or certain restricted stock unit awards. The grant date fair value of the Relative Total Shareholder Return awards was calculated using a Monte Carlo simulation. This valuation technique includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. The grant date fair value of the restricted stock units that receive dividends and unrestricted shares was based on the stock price at the date of the award. |
Note 17. Variable Interest Enti
Note 17. Variable Interest Entities | 9 Months Ended |
Mar. 31, 2020 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest EntitiesOur involvement with variable interest entities (“VIEs”) is limited to situations in which we are not the primary beneficiary as we lack the power to direct the activities that most significantly impact the VIE’s economic performance. Thus, consolidation is not required. Our involvement with VIEs consists of an investment in a privately-held company consisting of equity securities without readily determinable fair value and stock warrants and notes receivable related to independent dealership financing. The equity securities without readily determinable fair value and stock warrants were valued at $0.5 million and $1.5 million, respectively, at both March 31, 2020 and June 30, 2019 and were included in the Other Assets line of the Condensed Consolidated Balance Sheets. For more information related to our investment in the privately-held company, see Note 12 - Fair Value in the Notes to Condensed Consolidated Financial Statements. The carrying value of the notes receivable for independent dealership financing were $0.9 million at March 31, 2020 and $1.0 million at June 30, 2019 and was included on the Receivables and Other Assets lines of our Condensed Consolidated Balance Sheets. We have no obligation to provide additional funding to the VIEs, and thus our exposure and risk of loss related to the VIEs is limited to the carrying value of the investment and notes receivable. Financial support provided by Kimball International to the VIEs was limited to the items discussed above during the quarter ended March 31, 2020. |
Note 18. Credit Quality and All
Note 18. Credit Quality and Allowance for Credit Losses of Notes Receivable | 9 Months Ended |
Mar. 31, 2020 | |
Credit Quality and Allowance for Credit Losses of Notes Receivable [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure | Credit Quality and Allowance for Credit Losses of Notes Receivable We monitor credit quality and associated risks of notes receivable on an individual basis based on criteria such as financial stability of the party and collection experience in conjunction with general economic and market conditions. As of March 31, 2020 and June 30, 2019, we had no material past due outstanding notes receivable. As of March 31, 2020 As of June 30, 2019 (Amounts in Thousands) Unpaid Balance Related Allowance Receivable Net of Allowance Unpaid Balance Related Allowance Receivable Net of Allowance Independent Dealership Financing $ 923 $ — $ 923 $ 1,010 $ — $ 1,010 Other Notes Receivable 363 363 — 122 122 — Total $ 1,286 $ 363 $ 923 $ 1,132 $ 122 $ 1,010 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventImpacts of COVID-19 PandemicSubsequent to March 31, 2020, the COVID-19 pandemic has escalated and is adversely impacting our financial performance thus far for the quarter ended June 30, 2020 and is expected to continue to have an adverse impact as we navigate through this crisis. In addition, the market price of our Class B Common Stock has experienced a significant decline in connection with overall stock market trends related to the global economic impact of the COVID-19 pandemic. The potential impacts from COVID-19 and the decline in our stock price could be considered triggering events that may require us to perform impairment assessments of leases, goodwill and other intangible assets. We will evaluate these considerations in our fourth quarter ending June 30, 2020. |
Note 1. Basis of Presentation_2
Note 1. Basis of Presentation (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements of Kimball International, Inc. (the “Company,” “Kimball International,” “we,” “us,” or “our”) have been prepared in accordance with the instructions to Form 10-Q. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted, although we believe that the disclosures are adequate to make the information presented not misleading. Intercompany transactions and balances have been eliminated. Management believes the financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly the financial statements for the interim periods. The results of operations for the interim periods shown in this report are not necessarily indicative of results for any future interim period or for the entire fiscal year. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in our latest annual report on Form 10-K. |
Note 2. Recent Accounting Pro_2
Note 2. Recent Accounting Pronouncements and Supplemental Information (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements: In March 2017, the Financial Accounting Standards Board (“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. The guidance was effective for our first quarter of fiscal year 2020. The adoption did not have a material effect on our condensed consolidated financial statements. In February 2016, the FASB issued guidance that revises the accounting for leases. The guidance is intended to improve financial reporting of leasing transactions by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. Leases will continue to be classified as either operating or finance leases, with the classification affecting the pattern of expense recognition in the statement of income. The guidance also requires additional disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. In January 2018, the FASB issued additional guidance for land easements which permits entities to forgo the evaluation of existing land easement arrangements to determine if they contain a lease. New land easement arrangements, or modifications to existing arrangements, after the adoption of the lease standard will be evaluated to determine if they meet the definition of a lease. In July 2018, the FASB amended the new standard to clarify certain aspects of the guidance, and they also issued another new standard in July 2018 that allows the option to apply the transition provisions at the adoption date instead of at the earliest comparative period in the condensed consolidated financial statements. In March 2019, the FASB issued clarifying guidance regarding interim transition disclosures. We adopted this lease guidance as of the beginning of our fiscal year 2020. We have assessed our portfolio of leases and compiled a central repository of leases, recording a right-of-use asset and a lease liability for all leases with a lease term of greater than twelve months. All changes required by the new standard, including accounting policies, controls, and disclosures, have been identified and implemented. See Note 6 - Leases in the Notes to Condensed Consolidated Financial Statements for additional information. 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 do not expect the adoption to have a material effect on our condensed consolidated financial statements. In August 2018, the FASB issued guidance which changes the fair value measurement disclosure requirements. The guidance modifies and removes certain disclosures related to the fair value hierarchy, and adds new disclosure requirements such as disclosing the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value |
Goodwill | Goodwill represents the difference between the purchase price and the related underlying tangible and intangible net asset fair values resulting from business acquisitions. Goodwill is assigned to and the fair value is tested at the reporting unit level. Annually, or if conditions indicate an earlier review is necessary, we may assess qualitative factors to determine if it is more likely than not that the fair value is less than its carrying amount. We also have the option to bypass the qualitative assessment and proceed directly to performing the quantitative goodwill impairment test which compares the carrying value of the reporting unit to the reporting unit’s fair value to identify impairment. Under the quantitative assessment, if the fair value of the reporting unit is less than the carrying value, goodwill is written down to its fair value. The fair value is established primarily using a discounted cash flow analysis and secondarily a market approach utilizing current industry information. The calculation of the fair value of the reporting unit considers current market conditions existing at the assessment date. |
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. |
Intangible Assets | Capitalized software is stated at cost less accumulated amortization and is amortized using the straight-line method. During the software application development stage, capitalized costs include external consulting costs, cost of software licenses, and internal payroll and payroll-related costs for employees who are directly associated with a software project. Upgrades and enhancements are capitalized if they result in added functionality which enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion, and business process re-engineering costs are expensed in the period in which they are incurred. Trade names and non-compete agreements are amortized on a straight-line basis over their estimated useful lives. Capitalized customer relationships are amortized based on estimated attrition rates of customers. |
Notes Receivables and Trade Accounts Receivable | Notes Receivable and Trade Accounts Receivable: Notes receivable and trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. We determine on a case-by-case basis the cessation of accruing interest, the resumption of accruing interest, the method of recording payments received on non accrual receivables, and the delinquency status for our limited number of notes receivable. Our policy for estimating the allowance for credit losses on trade accounts receivable and notes receivable includes analysis of such items as aging, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to determine the final allowance for credit losses on the trade accounts receivable and notes receivable. Trade accounts receivable and notes receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Our limited amount of notes receivable allows management to monitor the risks, credit quality indicators, collectability, and probability of impairment on an individual basis. Adjustments to the allowance for credit losses are recorded in selling and administrative expenses. Customary terms require payment within 30 days, with terms beyond 30 days being considered extended. |
Non-operating Income and Expense, net | The non-operating income (expense), net line item includes the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, amortization of actuarial income, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain or loss on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. |
Note 3. Restructuring (Policies
Note 3. Restructuring (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | We utilized available market prices and management estimates to determine the fair value of impaired assets. Restructuring is included in the Restructuring Expense line item on our Condensed Consolidated Statements of Income. |
Note 6. Leases (Policies)
Note 6. Leases (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Recognition of Asset and Liability for Lease [Policy Text Block] | We recognize lease liabilities at the lease commencement date based upon the present value of the remaining lease payments. Right-of-use assets are based on the lease liability adjusted for prepaid rent, deferred rent, and tenant allowances received. Lease liabilities are amortized based upon the effective interest method, while right-of-use assets are amortized based upon the straight line expense less interest on the lease liability. Lease expense for lease payments is recognized on a straight-line basis over the lease term, except for impaired leases for which the lease expense is recognized on a declining basis over the remaining lease term. Variable lease expense associated with our leases is dependent upon the occurrence of events, activities, or circumstances in lease agreements, such as warehouse square footage utilized, property taxes assessed, and other non-lease component charges. Variable lease expense is presented as operating expense in our Condensed Consolidated Statements of Income and Comprehensive Income in the same line item as expense arising from fixed lease payments for operating leases. |
Separation of Lease and Nonlease Components [Policy Text Block] | We elected not to separate non-lease components of a contract from the lease components to which they relate for all classes of lease assets |
Short-term Leases [Policy Text Block] | We elected not to recognize a right-of-use asset or lease liability for short-term leases that have a lease term of twelve months or less. |
Note 8. Income Taxes (Policies)
Note 8. Income Taxes (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax, Policy [Policy Text Block] | In determining the quarterly provision for income taxes, we use an estimated annual effective tax rate which is based on expected annual income, statutory tax rates, and available tax planning opportunities in the various jurisdictions in which we operate. Unusual or infrequently occurring items are separately recognized in the quarter in which they occur. |
Note 9. Inventories (Policies)
Note 9. Inventories (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Inventories [Abstract] | |
Inventory | For interim reporting, LIFO inventories are computed based on quantities as of the end of the quarter and interim changes in price levels. Changes in quantities and price levels are reflected in the interim financial statements in the period in which they occur, except in cases where LIFO inventory liquidations are expected to be reinstated by fiscal year end. |
Note 11. Commitments and Cont_2
Note 11. Commitments and Contingent Liabilities (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingent Liabilities [Abstract] | |
Product Warranties | We estimate product warranty liability at the time of sale based on historical repair or replacement cost trends in conjunction with the length of the warranty offered. Management refines the warranty liability periodically based on changes in historical cost trends and in certain cases where specific warranty issues become known. |
Note 12. Fair Value (Policies)
Note 12. Fair Value (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Fair Value [Abstract] | |
Fair Value | We categorize assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: • Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. Our policy is to recognize transfers between these levels as of the end of each quarterly reporting period. There were no transfers between these levels during the nine months ended March 31, 2020. There were also no changes in the inputs or valuation techniques used to measure fair values compared to those disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2019. |
Fair Value of Financial Instruments Policy Continued | The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents: Money market funds 1 Market - Quoted market prices Cash Equivalents: Commercial paper 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Secondary market certificates of deposit 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Municipal bonds 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: U.S. Treasury and federal agencies 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Derivative Assets: Stock warrants 3 Market - The privately-held company is 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. 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 Measurement, Non-recurring, Policy [Policy Text Block] | Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments when events or circumstances indicate a significant adverse effect on the fair value of the asset. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. Non-recurring Fair Value Adjustment Level Valuation Technique/Inputs Used Impairment of Leases 3 Income - Based on a valuation model that measures the present value of remaining lease payments less estimated sublease income at a discount rate that captures the risk associated with the future cash flows. |
Fair Value of Financial Instruments Not Carried at Fair Value | Financial instruments that are not reflected in the Condensed Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk. Equity securities without readily determinable fair value 3 Cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Impairment is assessed qualitatively. |
Note 13. Investments (Policies)
Note 13. Investments (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Investment, Policy [Policy Text Block] | Our investment policy dictates that municipal bonds, U.S. Treasury and federal agency securities must be investment grade quality. |
Note 16. Stock Compensation (Po
Note 16. Stock Compensation (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Stock Compensation Plan [Abstract] | |
Share-based Payment Arrangement [Policy Text Block] | The grant date fair value of annual performance shares and restricted stock units that do not receive dividends was based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding annual performance share awards or certain restricted stock unit awards. The grant date fair value of the Relative Total Shareholder Return awards was calculated using a Monte Carlo simulation. This valuation technique includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. The grant date fair value of the restricted stock units that receive dividends and unrestricted shares was based on the stock price at the date of the award. |
Note 2. Recent Accounting Pro_3
Note 2. Recent Accounting Pronouncements and Supplemental Information (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | |
Schedule of Finite-Lived Intangible Assets | A summary of intangible assets subject to amortization is as follows: March 31, 2020 June 30, 2019 (Amounts in Thousands) Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Capitalized Software $ 42,617 $ 37,426 $ 5,191 $ 39,708 $ 36,662 $ 3,046 Customer Relationships 7,050 1,661 5,389 7,050 1,030 6,020 Trade Names 3,570 863 2,707 3,570 595 2,975 Non-Compete Agreements 100 48 52 100 33 67 Other Intangible Assets $ 53,337 $ 39,998 $ 13,339 $ 50,428 $ 38,320 $ 12,108 |
Components of Non-operating income (expense), net | Components of the Non-operating income (expense), net line, were: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands) 2020 2019 2020 2019 Gain (Loss) on SERP Investments $ (1,784) $ 1,032 $ (1,010) $ 306 Other (294) (62) (350) (235) Non-operating income (expense), net $ (2,078) $ 970 $ (1,360) $ 71 |
Note 3. Restructuring (Tables)
Note 3. Restructuring (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | A summary of the charges recorded in connection with the Transformation Restructuring Plan is as follows: Three Months Ended Nine Months Ended Charges incurred to date (Amounts in Thousands) March 31, 2020 March 31, 2020 Cash-related restructuring charges: Severance and other employee related costs $ 203 $ 2,194 $ 2,857 Facility exit costs and other cash charges 424 1,416 1,619 Total cash-related restructuring charges $ 627 $ 3,610 $ 4,476 Non-cash charges: Transition stock compensation 9 663 734 Impairment of assets 132 2,190 2,190 Other non-cash charges 50 101 101 Total non-cash charges $ 191 $ 2,954 $ 3,025 Total charges $ 818 $ 6,564 $ 7,501 |
Accrued Restructuring Charges Activity [Table Text Block] | A summary of the current period activity in accrued restructuring related to the Transformation Restructuring Plan is as follows: (Amounts in Thousands) Severance and other employee related costs Facility exit and other costs Total Balance at June 30, 2019 $ 619 $ 203 $ 822 Additions charged to expense 2,535 379 2,914 Cash payments charged against reserve (2,683) (582) (3,265) Non-cash adjustments (160) — (160) Balance at March 31, 2020 $ 311 $ — $ 311 |
Note 5. Revenue (Tables)
Note 5. Revenue (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table provides information about revenue by market: Three Months Ended Nine Months Ended March 31, March 31, (Amounts in Millions) 2020 2019 2020 2019 Institutional $ 63.5 $ 61.3 $ 215.7 $ 202.8 Commercial 71.0 67.8 216.0 224.3 Hospitality 43.7 48.3 140.1 145.4 Total Net Sales $ 178.2 $ 177.4 $ 571.8 $ 572.5 |
Note 6. Leases (Tables)
Note 6. Leases (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of our lease expenses are as follows: Three Months Ended Nine Months Ended (Amounts in Millions) March 31, 2020 March 31, 2020 Operating lease expense $ 0.9 $ 2.5 Variable lease expense 0.6 1.8 Total lease expense $ 1.5 $ 4.3 |
Supplemental cash flow and other information related to leases [Table Text Block] | Supplemental cash flow and other information related to leases are as follows: Nine Months Ended (Amounts in Millions) March 31, 2020 Cash flow information: Operating lease payments impacting lease liability $ 3.6 Leased assets obtained in exchange for operating lease liabilities $ 2.1 As of (Amounts in Millions) March 31, 2020 Other information: Weighted-average remaining term (in years) 6.1 Weighted-average discount rate 4.7 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table summarizes the future minimum lease payments as of March 31, 2020: Fiscal Year Ended (Amounts in Millions) June 30 (1) 2020 $ 1.1 2021 4.9 2022 4.7 2023 4.1 2024 3.4 Thereafter 7.0 Total lease payments $ 25.2 Less interest 3.2 Present value of lease liabilities $ 22.0 |
Lessee, Operating Lease, Disclosure [Table Text Block] | The following table summarizes the future minimum lease payments as of June 30, 2019 before adoption of ASC 842: Fiscal Year Ended (Amounts in Millions) June 30 2020 $ 4.6 2021 4.2 2022 4.1 2023 3.6 2024 2.5 Thereafter 3.8 Total lease payments $ 22.8 |
Note 7. Earnings Per Share (Tab
Note 7. Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands, Except for Per Share Data) 2020 2019 2020 2019 Net Income $ 9,451 $ 7,954 $ 31,874 $ 28,235 Average Shares Outstanding for Basic EPS Calculation 36,813 36,712 36,890 36,871 Dilutive Effect of Average Outstanding Compensation Awards 276 197 344 389 Average Shares Outstanding for Diluted EPS Calculation 37,089 36,909 37,234 37,260 Basic Earnings Per Share $ 0.26 $ 0.22 $ 0.86 $ 0.77 Diluted Earnings Per Share $ 0.25 $ 0.22 $ 0.86 $ 0.76 |
Note 9. Inventories (Tables)
Note 9. Inventories (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Inventories [Abstract] | |
Schedule of Inventory, Current | Inventory components were as follows: (Amounts in Thousands) March 31, 2020 June 30, Finished products $ 28,160 $ 26,304 Work-in-process 1,875 2,455 Raw materials 37,007 34,335 Total FIFO inventory 67,042 63,094 LIFO reserve, net (16,332) (16,282) Total inventory $ 50,710 $ 46,812 |
Note 10. Accumulated Other Co_2
Note 10. Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | During the three months ended March 31, 2020 and 2019, the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: Accumulated Other Comprehensive Income (Amounts in Thousands) Unrealized Investment Gain (Loss) Postemployment Benefits Net Actuarial Gain (Loss) Derivative Gain (Loss) Accumulated Other Comprehensive Income Balance at December 31, 2019 $ 8 $ 2,112 $ — $ 2,120 Other comprehensive income (loss) before reclassifications 2 89 — 91 Reclassification to (earnings) loss — (61) — (61) Net current-period other comprehensive income (loss) 2 28 — 30 Balance at March 31, 2020 $ 10 $ 2,140 $ — $ 2,150 Balance at December 31, 2018 $ (20) $ 1,881 $ — $ 1,861 Other comprehensive income (loss) before reclassifications 20 74 — 94 Reclassification to (earnings) loss — (74) — (74) Net current-period other comprehensive income (loss) 20 — — 20 Balance at March 31, 2019 $ — $ 1,881 $ — $ 1,881 During the nine months ended March 31, 2020 and 2019, the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: Accumulated Other Comprehensive Income (Amounts in Thousands) Unrealized Investment Gain (Loss) Postemployment Benefits Net Actuarial Gain (Loss) Derivative Gain (Loss) Accumulated Other Comprehensive Income Balance at June 30, 2019 $ 23 $ 1,914 $ — $ 1,937 Other comprehensive income (loss) before reclassifications (13) 419 — 406 Reclassification to (earnings) loss — (193) — (193) Net current-period other comprehensive income (loss) (13) 226 — 213 Balance at March 31, 2020 $ 10 $ 2,140 $ — $ 2,150 Balance at June 30, 2018 $ (31) $ 1,854 $ (7) $ 1,816 Other comprehensive income (loss) before reclassifications 31 251 (9) 273 Reclassification to (earnings) loss — (224) 16 (208) Net current-period other comprehensive income (loss) 31 27 7 65 Balance at March 31, 2019 $ — $ 1,881 $ — $ 1,881 |
Reclassifications from Accumulated Other Comprehensive Income | The following reclassifications were made from Accumulated Other Comprehensive Income to the Condensed Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income Three Months Ended Nine Months Ended Affected Line Item in the Condensed Consolidated Statements of Income March 31, March 31, (Amounts in Thousands) 2020 2019 2020 2019 Postemployment Benefits Amortization of Actuarial Gain (1) $ 82 $ 100 $ 260 $ 302 Non-operating income (expense), net (21) (26) (67) (78) Benefit (Provision) for Income Taxes $ 61 $ 74 $ 193 $ 224 Net Income Derivative Gain (Loss) $ — $ — $ — $ (21) Non-operating income (expense), net — — — 5 Benefit (Provision) for Income Taxes $ — $ — $ — $ (16) Net Income Total Reclassifications for the Period $ 61 $ 74 $ 193 $ 208 Net Income Amounts in parentheses indicate reductions to income. (1) See Note 15 - Postemployment Benefits |
Note 11. Commitments and Cont_3
Note 11. Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingent Liabilities [Abstract] | |
Schedule of Product Warranty Liability | Changes in the product warranty accrual for the nine months ended March 31, 2020 and 2019 were as follows: Nine Months Ended March 31 (Amounts in Thousands) 2020 2019 Product Warranty Liability at the beginning of the period $ 2,238 $ 2,294 Additions to warranty accrual (including changes in estimates) 3,318 420 Settlements made (in cash or in kind) (2,356) (797) Product Warranty Liability at the end of the period $ 3,200 $ 1,917 |
Note 12. Fair Value (Tables)
Note 12. Fair Value (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Fair Value [Abstract] | |
Fair Value Measurements, Recurring, Valuation Techniques | The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents: Money market funds 1 Market - Quoted market prices Cash Equivalents: Commercial paper 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Secondary market certificates of deposit 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Municipal bonds 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: U.S. Treasury and federal agencies 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Derivative Assets: Stock warrants 3 Market - The privately-held company is 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. Contingent earn-out liability 3 Income - Based on a valuation model that measures the present value of the probable cash payments based upon the forecasted operating performance of the acquisition and a discount rate that captures the risk associated with the liability. |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | As of March 31, 2020 and June 30, 2019, the fair values of financial assets that are measured at fair value on a recurring basis using the market or income approach are categorized as follows: March 31, 2020 (Amounts in Thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 69,027 $ — $ — $ 69,027 Cash equivalents: Commercial paper — 7,192 — 7,192 Available-for-sale securities: Secondary market certificates of deposit — 6,220 — 6,220 Available-for-sale securities: U.S. Treasury and federal agencies — 7,438 — 7,438 Trading Securities: Mutual funds in nonqualified SERP 10,591 — — 10,591 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 79,618 $ 20,850 $ 1,500 $ 101,968 June 30, 2019 (Amounts in Thousands) 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 |
Non-recurring Fair Value Adjustment Technique [Table Text Block] | Non-recurring Fair Value Adjustment Level Valuation Technique/Inputs Used Impairment of Leases 3 Income - Based on a valuation model that measures the present value of remaining lease payments less estimated sublease income at a discount rate that captures the risk associated with the future cash flows. |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | Financial instruments that are not reflected in the Condensed Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk. Equity securities without readily determinable fair value 3 Cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Impairment is assessed qualitatively. |
Note 13. Investments (Tables)
Note 13. Investments (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Schedule of Contractual Maturities on Investments | The contractual maturities of our investment portfolio were as follows (maturity dates for government agency securities are based on the first available call date, if applicable): March 31, 2020 (Amounts in Thousands) Certificates of Deposit Municipal Bonds U.S. Treasury and Federal Agencies Within one year $ 5,720 $ — $ 7,438 After one year through two years 500 — — Total Fair Value $ 6,220 $ — $ 7,438 |
Unrealized Gain (Loss) on Investments | March 31, 2020 (Amounts in Thousands) Certificates of Deposit Municipal Bonds U.S. Treasury and Federal Agencies Amortized cost basis $ 6,220 $ — $ 7,423 Unrealized holding gains — — 15 Unrealized holding losses — — — Fair Value $ 6,220 $ — $ 7,438 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 |
Trading Securities (and Certain Trading Assets) | SERP asset and liability balances were as follows: (Amounts in Thousands) March 31, June 30, SERP investments - current asset $ 2,878 $ 3,087 SERP investments - other long-term asset 7,713 8,687 Total SERP investments $ 10,591 $ 11,774 SERP obligation - current liability $ 2,878 $ 3,087 SERP obligation - other long-term liability 7,713 8,687 Total SERP obligation $ 10,591 $ 11,774 |
Note 15. Postemployment Benef_2
Note 15. Postemployment Benefits (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The components of net periodic postemployment benefit cost applicable to our severance plans were as follows: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands) 2020 2019 2020 2019 Service cost $ 120 $ 126 $ 365 $ 379 Interest cost 19 23 56 70 Amortization of actuarial income (82) (100) (260) (302) Net periodic benefit cost $ 57 $ 49 $ 161 $ 147 |
Note 16. Stock Compensation (Ta
Note 16. Stock Compensation (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Stock Compensation Plan [Abstract] | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Grants in Period | Type of Award Quarter Awarded Targeted Shares or Units Grant Date Fair Value (5) Annual Performance Shares (1) 1st Quarter 34,305 $16.85 - $16.93 Annual Performance Shares (1) 3rd Quarter 1,085 $18.43 - $20.28 Relative Total Shareholder Return Performance Units (2) 1st Quarter 28,080 $21.25 Relative Total Shareholder Return Performance Units (2) 3rd Quarter 7,190 $18.08 - $19.76 Restricted Stock Units (3) 1st Quarter 188,588 $16.85 - $17.24 Restricted Stock Units (3) 2nd Quarter 2,500 $20.46 Restricted Stock Units (3) 3rd Quarter 22,933 $18.78 - $20.63 Unrestricted Shares (4) 1st Quarter 9,091 $17.19 Unrestricted Shares (4) 2nd Quarter 6,321 $19.18 Unrestricted Shares (4) 3rd Quarter 5,985 $20.66 (1) Annual performance shares were awarded to officers and other key employees. The number of annual performance shares to be issued will be dependent upon the Company’s return on invested capital during fiscal year 2020, with a percentage payout ranging from 0% to 200% of the target number set forth above. The maximum number of shares that can be issued under these awards is 70,780. Annual performance shares vest on June 30, 2020. (2) Performance units were awarded to key officers under the Company’s Relative Total Shareholder Return program. Vesting occurs at June 30, 2021 and June 30, 2022. Participants will earn from 0% to 200% of the target award depending upon how the compound annual growth rate of Kimball International common stock ranks within the peer group at the end of the performance period. The maximum number of units that can be issued under these awards is 70,540. (3) Restricted stock units were awarded to officers and employees. Also, in connection with the redesign of the Company’s annual cash incentive plan certain employees were awarded time-based retention and performance-based transition units. The number of performance-based transition units to be issued will be dependent upon the Company’s EBITDA during fiscal year 2020, with a percentage payout ranging from 0% to 100% of the target. The maximum number of units that can be issued under the performance-based transition awards is 35,598. The Company also awarded performance-based transformation units that will earn from 0% to 100% of the target award depending upon the Company’s reduction of operating costs and EBITDA during fiscal year 2020. The maximum number of units that can be issued under the performance-based transformation award is 2,165. Vesting occurs at June 30, 2020, June 30, 2021, and June 30, 2022. Dividends accumulate over the vesting period for all awards except the time-based retention and performance-based transition awards. (4) Unrestricted shares were awarded to non-employee members of the Board of Directors as consideration for service to Kimball International and do not have vesting periods, holding periods, restrictions on sale, or other restrictions. (5) The grant date fair value of annual performance shares and restricted stock units that do not receive dividends was based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding annual performance share awards or certain restricted stock unit awards. The grant date fair value of the Relative Total Shareholder Return awards was calculated using a Monte Carlo simulation. This valuation technique includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. The grant date fair value of the restricted stock units that receive dividends and unrestricted shares was based on the stock price at the date of the award. |
Note 18. Credit Quality and A_2
Note 18. Credit Quality and Allowance for Credit Losses of Notes Receivable (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Credit Quality and Allowance for Credit Losses of Notes Receivable [Abstract] | |
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent | As of March 31, 2020 As of June 30, 2019 (Amounts in Thousands) Unpaid Balance Related Allowance Receivable Net of Allowance Unpaid Balance Related Allowance Receivable Net of Allowance Independent Dealership Financing $ 923 $ — $ 923 $ 1,010 $ — $ 1,010 Other Notes Receivable 363 363 — 122 122 — Total $ 1,286 $ 363 $ 923 $ 1,132 $ 122 $ 1,010 |
Note 2. Recent Accounting Pro_4
Note 2. Recent Accounting Pronouncements and Supplemental Information - Goodwill and Other Intangible Assets Textuals (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
Goodwill, Impairment Loss | $ 0 | $ 0 | |||
Impairment of Intangible Assets, Finite-lived | 0 | 0 | |||
Goodwill | 11,160,000 | 11,160,000 | $ 11,160,000 | ||
Amortization | 639,000 | $ 496,000 | 1,707,000 | $ 1,455,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 680,000 | 680,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 2,506,000 | 2,506,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2,039,000 | 2,039,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,637,000 | 1,637,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,404,000 | 1,404,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 5,073,000 | 5,073,000 | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 0 | $ 0 | |||
Software and Software Development Costs | Minimum | |||||
Finite-Lived Intangible Asset, Useful Life | 2 years | ||||
Software and Software Development Costs | Maximum | |||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||
Customer Relationships | |||||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||||
Trade Names | |||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||
Non-Compete Agreements | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years |
Note 2. Recent Accounting Pro_5
Note 2. Recent Accounting Pronouncements and Supplemental Information - Textuals (Details) | 9 Months Ended |
Mar. 31, 2020 | |
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation [true false] | true |
Accounts Receivable, Customary Payment Terms | 30 days |
Accounts Receivable, Days Beyond Which Terms Are Considered Extended Payment Terms | 30 days |
Note 2. Recent Accounting Pro_6
Note 2. Recent Accounting Pronouncements and Supplemental Information - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Cost | $ 53,337 | $ 50,428 |
Intangible Assets Accumulated Amortization | 39,998 | 38,320 |
Finite-Lived Intangible Assets, Net Value | 13,339 | 12,108 |
Capitalized Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Cost | 42,617 | 39,708 |
Intangible Assets Accumulated Amortization | 37,426 | 36,662 |
Finite-Lived Intangible Assets, Net Value | 5,191 | 3,046 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Cost | 7,050 | 7,050 |
Intangible Assets Accumulated Amortization | 1,661 | 1,030 |
Finite-Lived Intangible Assets, Net Value | 5,389 | 6,020 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Cost | 3,570 | 3,570 |
Intangible Assets Accumulated Amortization | 863 | 595 |
Finite-Lived Intangible Assets, Net Value | 2,707 | 2,975 |
Non-Compete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Cost | 100 | 100 |
Intangible Assets Accumulated Amortization | 48 | 33 |
Finite-Lived Intangible Assets, Net Value | $ 52 | $ 67 |
Note 2. Recent Accounting Pro_7
Note 2. Recent Accounting Pronouncements and Supplemental Information - Components of Non-operating income (expense), net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Gain (Loss) on SERP Investments | $ (1,784) | $ 1,032 | $ (1,010) | $ 306 |
Other | (294) | (62) | (350) | (235) |
Other income expense net | $ (2,078) | $ 970 | $ (1,360) | $ 71 |
Note 3. Restructuring - Restruc
Note 3. Restructuring - Restructuring Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Expense | $ 818 | $ 0 | $ 6,564 | $ 0 |
Percentage of Restructuring Costs Expected in Cash | 65.00% | |||
Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Cost Incurred to Date | 7,501 | $ 7,501 | ||
Restructuring Expense | 818 | 6,564 | ||
Effect on Future Earnings, Amount | 10,000 | |||
Minimum | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | 9,000 | 9,000 | ||
Restructuring and Related Cost, Expected Cost Remaining | 1,500 | 1,500 | ||
Minimum | Severance and Other Employee Related Costs | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | 3,700 | 3,700 | ||
Minimum | Facility Closing | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | 2,500 | 2,500 | ||
Minimum | Lease asset impairment | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | 2,800 | 2,800 | ||
Maximum | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | 10,000 | 10,000 | ||
Restructuring and Related Cost, Expected Cost Remaining | 2,500 | 2,500 | ||
Maximum | Severance and Other Employee Related Costs | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | 4,000 | 4,000 | ||
Maximum | Facility Closing | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | 3,000 | 3,000 | ||
Maximum | Lease asset impairment | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | $ 3,000 | $ 3,000 |
Note 3. Restructuring - Charges
Note 3. Restructuring - Charges related to Transformation Restructuring Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Expense | $ 818 | $ 0 | $ 6,564 | $ 0 |
Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Expense | 818 | 6,564 | ||
Restructuring and Related Cost, Cost Incurred to Date | 7,501 | 7,501 | ||
Non-Cash Related Restructuring Expense | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Expense | 191 | 2,954 | ||
Restructuring and Related Cost, Cost Incurred to Date | 3,025 | 3,025 | ||
Non-Cash Related Restructuring Expense | Transition Equity Compensation | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Expense | 9 | 663 | ||
Restructuring and Related Cost, Cost Incurred to Date | 734 | 734 | ||
Non-Cash Related Restructuring Expense | Lease asset impairment | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Expense | 132 | 2,190 | ||
Restructuring and Related Cost, Cost Incurred to Date | 2,190 | 2,190 | ||
Non-Cash Related Restructuring Expense | Other non-cash charges | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Expense | 50 | 101 | ||
Restructuring and Related Cost, Cost Incurred to Date | 101 | 101 | ||
Cash Related Restructuring Expense | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Expense | 627 | 3,610 | ||
Restructuring and Related Cost, Cost Incurred to Date | 4,476 | 4,476 | ||
Cash Related Restructuring Expense | Severance and Other Employee Related Costs | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Expense | 203 | 2,194 | ||
Restructuring and Related Cost, Cost Incurred to Date | 2,857 | 2,857 | ||
Cash Related Restructuring Expense | Facility Closing | Transformation Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Expense | 424 | 1,416 | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 1,619 | $ 1,619 |
Note 3. Restructuring - Current
Note 3. Restructuring - Current Period activity in accrued restructuring related to Transformation Restructuring Reserve (Details) - Transformation Restructuring Plan - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Additions charged to expense | $ 2,914 | |
Cash payments charged against reserve | (3,265) | |
Non-cash adjustments | (160) | |
Restructuring Reserve, Current | 311 | $ 822 |
Severance and Other Employee Related Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Additions charged to expense | 2,535 | |
Cash payments charged against reserve | (2,683) | |
Non-cash adjustments | (160) | |
Restructuring Reserve, Current | 311 | 619 |
Other Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Additions charged to expense | 379 | |
Cash payments charged against reserve | (582) | |
Non-cash adjustments | 0 | |
Restructuring Reserve, Current | $ 0 | $ 203 |
Note 5. Revenue - Disaggregatio
Note 5. Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net Sales | $ 178,174 | $ 177,369 | $ 571,790 | $ 572,500 |
Institutional | ||||
Net Sales | 63,500 | 61,300 | 215,700 | 202,800 |
Commercial | ||||
Net Sales | 71,000 | 67,800 | 216,000 | 224,300 |
Hospitality | ||||
Net Sales | $ 43,700 | $ 48,300 | $ 140,100 | $ 145,400 |
Note 5. Revenue - Revenue Textu
Note 5. Revenue - Revenue Textuals (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2020USD ($) | |
Contract with Customer, Liability, Revenue Recognized | $ 24.5 |
Note 6. Leases - Components of
Note 6. Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Operating lease expense | $ 0.9 | $ 2.5 |
Variable lease expense | 0.6 | 1.8 |
Total lease expense | $ 1.5 | $ 4.3 |
Note 6. Leases - Supplemental C
Note 6. Leases - Supplemental Cash Flow relating to Leases (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating lease payments impacting lease liability | $ 3.6 |
Leased assets obtained in exchange for operating lease liabilities | $ 2.1 |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 1 month 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4.70% |
Note 6. Leases - Summary of fut
Note 6. Leases - Summary of future lease payments (Details) $ in Millions | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 1.1 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 4.9 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 4.7 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 4.1 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 3.4 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 7 |
Lessee, Operating Lease, Liability, Payments, Due | 25.2 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 3.2 |
Operating Lease, Liability | $ 22 |
Note 6. Leases - Summary of f_2
Note 6. Leases - Summary of future lease payments before adoption of ASC842 (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | $ 4.6 |
Operating Leases, Future Minimum Payments, Due in Two Years | 4.2 |
Operating Leases, Future Minimum Payments, Due in Three Years | 4.1 |
Operating Leases, Future Minimum Payments, Due in Four Years | 3.6 |
Operating Leases, Future Minimum Payments, Due in Five Years | 2.5 |
Operating Leases, Future Minimum Payments, Due Thereafter | 3.8 |
Operating Leases, Future Minimum Payments Due | $ 22.8 |
Note 6. Leases - Leases Textual
Note 6. Leases - Leases Textuals (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2019 | |
Finance Lease, Liability | $ 0 | |
Operating Lease, Impairment Loss, Right-of-Use Asset | $ 2,200,000 | |
Lease, Practical Expedient, Use of Hindsight [true false] | false | |
Lease, Practical Expedients, Package [true false] | true | |
Lease, Practical Expedient, Land Easement [true false] | false |
Note 7. Earnings Per Share Earn
Note 7. Earnings Per Share Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net income | $ 9,451 | $ 7,954 | $ 31,874 | $ 28,235 |
Average Shares Outstanding for Basic EPS Calculation | 36,813 | 36,712 | 36,890 | 36,871 |
Dilutive Effect of Average Outstanding Compensation Awards | 276 | 197 | 344 | 389 |
Average Shares Outstanding for Diluted EPS Calculation | 37,089 | 36,909 | 37,234 | 37,260 |
Basic Earnings Per Share | $ 0.26 | $ 0.22 | $ 0.86 | $ 0.77 |
Diluted Earnings Per Share | $ 0.25 | $ 0.22 | $ 0.86 | $ 0.76 |
Note 8. Income Taxes - Textuals
Note 8. Income Taxes - Textuals (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Percent | 23.50% | 24.10% | 26.70% | 24.70% |
Note 9. Inventories - Inventory
Note 9. Inventories - Inventory Components (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Finished products | $ 28,160 | $ 26,304 |
Work-in-process | 1,875 | 2,455 |
Raw materials | 37,007 | 34,335 |
Total FIFO inventory | 67,042 | 63,094 |
LIFO reserve, net | (16,332) | (16,282) |
Total inventory | $ 50,710 | $ 46,812 |
Note 10. Accumulated Other Co_3
Note 10. Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income at beginning of period | $ 2,120 | $ 1,861 | $ 1,937 | $ 1,816 |
Other Comprehensive Income (Loss) before Reclassifications | 91 | 94 | 406 | 273 |
Reclassification to (earnings) loss | (61) | (74) | (193) | (208) |
Net current-period other comprehensive income (loss) | 30 | 20 | 213 | 65 |
Accumulated Other Comprehensive Income at end of period | 2,150 | 1,881 | 2,150 | 1,881 |
Unrealized Investment Gain (Loss) | ||||
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income at beginning of period | 8 | (20) | 23 | (31) |
Other Comprehensive Income (Loss) before Reclassifications | 2 | 20 | (13) | 31 |
Reclassification to (earnings) loss | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | 2 | 20 | (13) | 31 |
Accumulated Other Comprehensive Income at end of period | 10 | 0 | 10 | 0 |
Postemployment Benefits, Net Actuarial Gain (Loss) | ||||
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income at beginning of period | 2,112 | 1,881 | 1,914 | 1,854 |
Other Comprehensive Income (Loss) before Reclassifications | 89 | 74 | 419 | 251 |
Reclassification to (earnings) loss | (61) | (74) | (193) | (224) |
Net current-period other comprehensive income (loss) | 28 | 0 | 226 | 27 |
Accumulated Other Comprehensive Income at end of period | 2,140 | 1,881 | 2,140 | 1,881 |
Derivative Gain (Loss) | ||||
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income at beginning of period | 0 | 0 | 0 | (7) |
Other Comprehensive Income (Loss) before Reclassifications | 0 | 0 | 0 | (9) |
Reclassification to (earnings) loss | 0 | 0 | 0 | 16 |
Net current-period other comprehensive income (loss) | 0 | 0 | 0 | 7 |
Accumulated Other Comprehensive Income at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Note 10. Accumulated Other Co_4
Note 10. Accumulated Other Comprehensive Income - Reclassifications from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | $ (21) | $ (26) | $ (67) | $ (78) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | 61 | 74 | 193 | 224 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (82) | (100) | (260) | (302) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 0 | (5) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | 16 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 0 | 21 | ||
Total Reclassification for the Period from AOCI | 61 | 74 | 193 | 208 |
Non-operating income (expense), net | ||||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 82 | 100 | 260 | 302 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 0 | 0 | 0 | (21) |
Benefit (Provision) for Income Taxes | ||||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | (21) | (26) | (67) | (78) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 0 | 0 | 0 | 5 |
Net Income | ||||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | 61 | 74 | 193 | 224 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | 0 | 0 | (16) |
Total Reclassification for the Period from AOCI | $ 61 | $ 74 | $ 193 | $ 208 |
Note 11. Commitments and Cont_4
Note 11. Commitments and Contingent Liabilities - Commitments and Contingent Liabilities Textuals (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Guarantor Obligations | |
Performance Bonds, Maximum Exposure | $ 5,400 |
Financial Standby Letter of Credit | |
Guarantor Obligations | |
Letters of Credit Outstanding, Maximum Exposure | 1,600 |
Standby Letters of Credit | |
Guarantor Obligations | |
Loss Contingency Accrual, at Carrying Value | $ 0 |
Note 11. Commitments and Cont_5
Note 11. Commitments and Contingent Liabilities - Product Warranty (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Product Warranty Liability at the beginning of the period | $ 2,238 | $ 2,294 |
Additions to warranty accrual (including changes in estimates) | 3,318 | 420 |
Settlements made (in cash or in kind) | (2,356) | (797) |
Product Warranty Liability at the end of the period | $ 3,200 | $ 1,917 |
Note 12. Fair Value - Textuals
Note 12. Fair Value - Textuals (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Mar. 31, 2020 | Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Operating Lease, Impairment Loss | $ 2,200,000 | ||
Fair Value, Transfers Between Levels, Amount | $ 0 | ||
Investment Owned, at Cost | 2,000,000 | ||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | ||
Fair Value, Purchases of Level 3 Assets | 0 | ||
Fair Value, Sales of Level 3 Assets | 0 | ||
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Contingent earn-out liability | $ 360,000 | ||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Contingent earn-out liability | 0 | ||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Contingent earn-out liability | 0 | ||
Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Cost Method Investments | 500,000 | ||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Contingent earn-out liability | 360,000 | ||
Warrant | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative Asset, Fair Value, Gross Asset | 1,500,000 | 1,500,000 | |
Warrant | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |
Warrant | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |
Warrant | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative Asset, Fair Value, Gross Asset | 1,500,000 | 1,500,000 | |
Not Designated as Hedging Instrument | Other Assets | Warrant | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative Asset, Fair Value, Gross Asset | $ 1,500,000 | ||
D'Style | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Contingent earn-out liability | $ 400,000 |
Note 12. Fair Value - Recurring
Note 12. Fair Value - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | $ 10,591 | $ 11,774 |
Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 101,968 | 115,769 |
Contingent earn-out liability | 360 | |
Total liabilities at fair value | 360 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 79,618 | 51,790 |
Contingent earn-out liability | 0 | |
Total liabilities at fair value | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 20,850 | 62,479 |
Contingent earn-out liability | 0 | |
Total liabilities at fair value | 0 | |
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 | |
Total liabilities at fair value | 360 | |
Warrant | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Derivatives: Stock Warrants | 1,500 | 1,500 |
Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Derivatives: Stock Warrants | 0 | 0 |
Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Derivatives: Stock Warrants | 0 | 0 |
Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Derivatives: Stock Warrants | 1,500 | 1,500 |
Money Market Funds | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 69,027 | 40,016 |
Money Market Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 69,027 | 40,016 |
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 | 7,192 | 29,408 |
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 | 7,192 | 29,408 |
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 | 6,220 | 11,230 |
Certificates of Deposit | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 6,220 | 11,230 |
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 | 6,220 | 11,230 |
Certificates of Deposit | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 0 | 0 |
Municipal Bonds | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 0 | 1,922 |
Municipal Bonds | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 1,922 | |
Municipal Bonds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 0 | |
Municipal Bonds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 1,922 | |
Municipal Bonds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 0 | |
US Treasury and Federal Agencies | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 7,438 | 19,919 |
US Treasury and Federal Agencies | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 7,438 | 19,919 |
US Treasury and Federal Agencies | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 0 | 0 |
US Treasury and Federal Agencies | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 7,438 | 19,919 |
US Treasury and Federal Agencies | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 0 | 0 |
Mutual Fund | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | 10,591 | 11,774 |
Mutual Fund | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | 10,591 | 11,774 |
Mutual Fund | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | 0 | 0 |
Mutual Fund | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | $ 0 | $ 0 |
Note 13. Investments - Schedule
Note 13. Investments - Schedule of Contractual Maturities on Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Certificates of Deposit | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | $ 5,720 | |
Available-for-sale Securities, Debt Maturities, Rolling Year Two | 500 | |
Available-for-sale Securities | 6,220 | $ 11,230 |
Municipal Bonds | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 0 | |
Available-for-sale Securities, Debt Maturities, Rolling Year Two | 0 | |
Available-for-sale Securities | 0 | 1,922 |
US Treasury and Federal Agency Securities | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 7,438 | |
Available-for-sale Securities, Debt Maturities, Rolling Year Two | 0 | |
Available-for-sale Securities | $ 7,438 | $ 19,919 |
Note 13. Investments - Unrealiz
Note 13. Investments - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Certificates of Deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 6,220 | $ 11,230 |
Available-for-sale Securities, Unrealized holding gains | 0 | 0 |
Available-for-sale Securities, Unrealized holding losses | 0 | 0 |
Fair Value, Available-for-sale Securities | 6,220 | 11,230 |
Municipal Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 0 | 1,921 |
Available-for-sale Securities, Unrealized holding gains | 0 | 1 |
Available-for-sale Securities, Unrealized holding losses | 0 | 0 |
Fair Value, Available-for-sale Securities | 0 | 1,922 |
US Treasury and Federal Agency Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 7,423 | 19,888 |
Available-for-sale Securities, Unrealized holding gains | 15 | 31 |
Available-for-sale Securities, Unrealized holding losses | 0 | 0 |
Fair Value, Available-for-sale Securities | $ 7,438 | $ 19,919 |
Note 13. Investments - Suppleme
Note 13. Investments - Supplemental Employee Retirement Investments Textuals (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of Trading Securities and Other Trading Assets | ||
Trading Securities, Change in net unrealized holding gains (losses) | $ (1,569) | $ (104) |
Note 13. Investments - Supple_2
Note 13. Investments - Supplemental Employee Retirement Plan Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | $ 10,591 | $ 11,774 |
SERP obligation | 10,591 | 11,774 |
Short-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | 2,878 | 3,087 |
SERP obligation | 2,878 | 3,087 |
Other Long-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | 7,713 | 8,687 |
SERP obligation | $ 7,713 | $ 8,687 |
Note 13. Investments - Investme
Note 13. Investments - Investments - Equity securities without readily determinable fair value Textuals (Details) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 0 | $ 0 |
Trading Securities, Realized Gain (Loss) | 0 | 0 |
Investment Owned, at Cost | 2,000,000 | 2,000,000 |
Other Assets | Preferred Stock | ||
Equity securities without readily determinable fair value | $ 500,000 | $ 500,000 |
Note 14. Derivative Instrumen_2
Note 14. Derivative Instruments - Textuals (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Derivative [Line Items] | ||
Investment Owned, at Cost | $ 2,000 | |
Fair Value, Measurements, Recurring | Warrant | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,500 | $ 1,500 |
Fair Value, Measurements, Recurring | Not Designated as Hedging Instrument | Other Assets | Warrant | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,500 |
Note 15. Postemployment Benef_3
Note 15. Postemployment Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Components of Net Periodic Benefit Cost (before tax): | ||||
Service cost | $ 120 | $ 126 | $ 365 | $ 379 |
Interest cost | 19 | 23 | 56 | 70 |
Amortization of actuarial income | (82) | (100) | (260) | (302) |
Net periodic benefit cost | $ 57 | $ 49 | $ 161 | $ 147 |
Note 16. Stock Compensation - S
Note 16. Stock Compensation - Stock Compensation Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement, Expense | $ 1.3 | $ 1.1 | $ 4.5 | $ 4.7 | ||
Share-based Payment Arrangement, Expense, Tax Benefit | $ 0.4 | $ 0.3 | $ 1.2 | $ 1.2 | ||
Annual Performance Shares | ||||||
Stock Compensation, Shares Awarded | 1,085 | 34,305 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Stock Compensation, Shares Awarded | 1,085 | 34,305 | ||||
Annual Performance Shares | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Payout Percentage | 0.00% | 0.00% | ||||
Annual Performance Shares | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 70,780 | 70,780 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Payout Percentage | 200.00% | 200.00% | ||||
Relative Total Shareholder Return | ||||||
Stock Compensation, Shares Awarded | 7,190 | 28,080 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Stock Compensation, Shares Awarded | 7,190 | 28,080 | ||||
Relative Total Shareholder Return | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Payout Percentage | 0.00% | 0.00% | ||||
Relative Total Shareholder Return | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 70,540 | 70,540 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Payout Percentage | 200.00% | 200.00% | ||||
Restricted Stock Units (RSUs) | ||||||
Stock Compensation, Shares Awarded | 22,933 | 2,500 | 188,588 | |||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Stock Compensation, Shares Awarded | 22,933 | 2,500 | 188,588 | |||
Restricted Stock Units (RSUs) | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Payout Percentage | 0.00% | 0.00% | ||||
Restricted Stock Units (RSUs) | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 35,598 | 35,598 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Payout Percentage | 100.00% | 100.00% | ||||
Transformation Units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Payout Percentage | 0.00% | 0.00% | ||||
Transformation Units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,165 | 2,165 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Payout Percentage | 100.00% | 100.00% |
Note 16. Stock Compensation -_2
Note 16. Stock Compensation - Stock Compensation Awards (Details) - $ / shares | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Annual Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Shares Awarded | 1,085 | 34,305 | |
Relative Total Shareholder Return | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Shares Awarded | 7,190 | 28,080 | |
Stock Compensation, Grant Date Fair Value | $ 21.25 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Shares Awarded | 22,933 | 2,500 | 188,588 |
Stock Compensation, Grant Date Fair Value | $ 20.46 | ||
Unrestricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Shares Awarded | 5,985 | 6,321 | 9,091 |
Stock Compensation, Grant Date Fair Value | $ 20.66 | $ 19.18 | $ 17.19 |
Minimum | Annual Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Grant Date Fair Value | 18.43 | 16.85 | |
Minimum | Relative Total Shareholder Return | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Grant Date Fair Value | 18.08 | ||
Minimum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Grant Date Fair Value | 18.78 | 16.85 | |
Maximum | Annual Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Grant Date Fair Value | 20.28 | 16.93 | |
Maximum | Relative Total Shareholder Return | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Grant Date Fair Value | 19.76 | ||
Maximum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Compensation, Grant Date Fair Value | $ 20.63 | $ 17.24 |
Note 17. Variable Interest En_2
Note 17. Variable Interest Entities -Textuals (Details) - Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2019 | |
Variable Interest Entity | ||
Variable Interest Entity, Obligation to Provide Additional Funding, Amount | $ 0 | |
Other Assets | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 500 | $ 500 |
Receivables and Other Assets | Independent Dealership Financing | Notes Receivable | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 900 | 1,000 |
Warrant | Other Assets | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | $ 1,500 | $ 1,500 |
Note 18. Credit Quality and A_3
Note 18. Credit Quality and Allowance for Credit Losses of Notes Receivable - Textuals (Details) - Notes Receivable - USD ($) | Mar. 31, 2020 | Jun. 30, 2019 |
Notes Receivable | ||
Financing Receivable, Past Due | $ 0 | $ 0 |
Financing Receivable, Past Due | $ 0 | $ 0 |
Note 18. Credit Quality and A_4
Note 18. Credit Quality and Allowance for Credit Losses of Notes Receivable - Credit Quality and Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Notes Receivable | ||
Notes Receivable, Unpaid Balance | $ 1,286 | $ 1,132 |
Notes Receivable, Related Allowance | 363 | 122 |
Notes Receivable, Net of Allowance | 923 | 1,010 |
Notes Receivable | Independent Dealership Financing | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 923 | 1,010 |
Notes Receivable, Related Allowance | 0 | 0 |
Notes Receivable, Net of Allowance | 923 | 1,010 |
Notes Receivable | Other Notes Receivable | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 363 | 122 |
Notes Receivable, Related Allowance | 363 | 122 |
Notes Receivable, Net of Allowance | $ 0 | $ 0 |