Cover page
Cover page - shares | 9 Months Ended | |
Mar. 31, 2021 | Apr. 28, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-3279 | |
Entity Registrant Name | KIMBALL INTERNATIONAL, INC. | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-0514506 | |
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 | |
City Area Code | 812 | |
Local Phone Number | 482-1600 | |
Title of 12(b) Security | Class B Common Stock, par value $0.05 per share | |
Trading Symbol | KBAL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000055772 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2021 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 191,395 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 36,593,367 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 33,451 | $ 91,798 |
Short-term investments | 501 | 5,294 |
Receivables, net of allowances of $2,723 and $2,574, respectively | 47,370 | 68,365 |
Inventories | 58,419 | 49,857 |
Prepaid expenses and other current assets | 19,946 | 16,869 |
Assets held for sale | 0 | 215 |
Total current assets | 159,687 | 232,398 |
Property and equipment, net of accumulated depreciation of $197,856 and $193,641, respectively | 88,244 | 92,041 |
Right-of-use operating lease assets | 16,867 | 16,461 |
Goodwill | 83,133 | 11,160 |
Other intangible assets, net of accumulated amortization of $39,420 and $40,442, respectively | 67,239 | 13,949 |
Deferred tax assets | 12,587 | 7,485 |
Other assets | 18,517 | 12,773 |
Total Assets | 446,274 | 386,267 |
Current Liabilities: | ||
Short-term debt | 40,000 | 0 |
Current maturities of long-term debt | 2,220 | 27 |
Accounts payable | 37,742 | 40,229 |
Customer deposits | 24,330 | 19,649 |
Current portion of operating lease liability | 6,505 | 4,886 |
Dividends payable | 3,647 | 3,454 |
Accrued expenses | 32,385 | 41,076 |
Total current liabilities | 146,829 | 109,321 |
Other Liabilities: | ||
Long-term debt, less current maturities | 392 | 109 |
Long-term operating lease liability | 14,128 | 16,610 |
Contingent earn-out liability | 31,790 | 0 |
Other | 16,676 | 15,431 |
Total other liabilities | 62,986 | 32,150 |
Common stock-par value $0.05 per share: | ||
Additional paid-in capital | 6,437 | 3,770 |
Retained earnings | 295,016 | 305,024 |
Accumulated other comprehensive income | 2,212 | 2,137 |
Less: Treasury stock, at cost, 6,197,000 shares and 6,110,000 shares, respectively | (69,357) | (68,286) |
Total Shareholders’ Equity | 236,459 | 244,796 |
Total Liabilities and Shareholders’ Equity | 446,274 | 386,267 |
Class A Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | 9 | 10 |
Class B Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | $ 2,142 | $ 2,141 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
Net Sales | $ 138,676 | $ 178,174 | $ 422,817 | $ 571,790 |
Cost of Sales | 98,843 | 117,680 | 285,079 | 375,585 |
Gross Profit | 39,833 | 60,494 | 137,738 | 196,205 |
Selling and Administrative Expenses | 44,930 | 45,606 | 132,584 | 146,239 |
Restructuring Expense | 2,617 | 818 | 8,473 | 6,564 |
Operating Income (Loss) | (7,714) | 14,070 | (3,319) | 43,402 |
Other Income (Expense): | ||||
Interest income | 59 | 386 | 248 | 1,482 |
Interest expense | (177) | (21) | (263) | (65) |
Non-operating income (expense), net | 311 | (2,078) | 2,434 | (1,360) |
Other income (expense), net | 193 | (1,713) | 2,419 | 57 |
Income (Loss) Before Taxes on Income | (7,521) | 12,357 | (900) | 43,459 |
Provision (Benefit) for Income Taxes | (2,992) | 2,906 | (919) | 11,585 |
Net Income | $ (4,529) | $ 9,451 | $ 19 | $ 31,874 |
Earnings (Loss) Per Share of Common Stock: | ||||
Basic Earnings (Loss) Per Share (in dollars per share) | $ (0.12) | $ 0.26 | $ 0 | $ 0.86 |
Diluted Earnings (Loss) Per Share (in dollars per share) | $ 0.25 | $ 0 | $ 0.86 | |
Class A and B Common Stock: | ||||
Average Number of Shares Outstanding - Basic (in shares) | 36,860 | 36,813 | 36,932 | 36,890 |
Average Number of Shares Outstanding - Diluted (in shares) | 36,860 | 37,089 | 37,529 | 37,234 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (4,529) | $ 9,451 | $ 19 | $ 31,874 |
Available-for-sale securities | ||||
Available-for-sale securities, Pre-tax | (4) | 3 | (42) | (17) |
Available-for-sale securities, Tax | 1 | (1) | 11 | 4 |
Available-for-sale securities, Net of Tax | (3) | 2 | (31) | (13) |
Postemployment severance actuarial change | ||||
Postemployment severance actuarial change, Pre-tax | 174 | 120 | 476 | 565 |
Postemployment severance actuarial change, Tax | (45) | (31) | (123) | (146) |
Postemployment severance actuarial change, Net of Tax | 129 | 89 | 353 | 419 |
Amortization of actuarial change | ||||
Amortization of actuarial change, Pre-tax | (112) | (82) | (333) | (260) |
Amortization of actuarial change, Tax | 29 | 21 | 86 | 67 |
Amortization of actuarial change, Net of Tax | (83) | (61) | (247) | (193) |
Other comprehensive income (loss) | ||||
Other comprehensive income (loss), Pre-tax | 58 | 41 | 101 | 288 |
Other comprehensive income (loss), Tax | (15) | (11) | (26) | (75) |
Other comprehensive income (loss), Net of Tax | 43 | 30 | 75 | 213 |
Total comprehensive income (loss) | $ (4,486) | $ 9,481 | $ 94 | $ 32,087 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Cash Flows From Operating Activities: | |||
Net income (loss) | $ 19 | $ 31,874 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 10,836 | 11,337 | |
Amortization | 4,212 | 1,707 | |
(Gain) loss on sales of assets | (165) | 75 | |
Restructuring and asset impairment charges | 1,916 | 2,954 | |
Deferred income tax and other deferred charges | (491) | (500) | |
Stock-based compensation | 4,048 | 3,850 | |
Other, net | (1,440) | 3,043 | |
Change in operating assets and liabilities: | |||
Receivables | 24,055 | (5,815) | |
Inventories | 7,057 | (3,898) | |
Prepaid expenses and other current assets | (1,991) | (960) | |
Accounts payable | (9,391) | (7,929) | |
Customer deposits | 2,636 | 2,766 | |
Accrued expenses | (13,971) | (21,136) | |
Net cash provided by operating activities | 27,330 | 17,368 | |
Cash Flows From Investing Activities: | |||
Capital expenditures | (8,968) | (16,132) | |
Proceeds from sales of assets | 498 | 138 | |
Cash paid for acquisition | (101,478) | 0 | |
Purchases of capitalized software | (4,940) | (3,011) | |
Purchases of available-for-sale securities | (10,000) | (24,977) | |
Maturities of available-for-sale securities | 14,750 | 44,488 | |
Other, net | 74 | (818) | |
Net cash used for investing activities | (110,064) | (312) | |
Cash Flows From Financing Activities: | |||
Proceeds from short-term debt | 40,000 | 0 | |
Repayments of long-term debt | (28) | (25) | |
Dividends paid to shareholders | (9,969) | (9,607) | |
Repurchases of Common Stock | (2,077) | (3,004) | |
Repurchase of employee shares for tax withholding | (258) | (976) | |
Net cash provided by (used for) financing activities | 27,668 | (13,612) | |
Net (Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash | [1] | (55,066) | 3,444 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash at Beginning of Period | [1] | 92,444 | 73,837 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash at End of Period | [1] | 37,378 | 77,281 |
Non-cash items: | |||
Contingent earn-out liability for Poppin, Inc. acquisition | 31,790 | 0 | |
Cash paid during the period for: | |||
Income taxes | 6,239 | 10,406 | |
Interest expense | $ 211 | $ 15 | |
[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 and cash held in escrow for repayment of the Payment Protection Program loan that Poppin, Inc. obtained prior to its acquisition. |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Shareowners' Equity (unaudited) Statement - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Balance at the beginning of the period at Jun. 30, 2019 | $ 216,490 | $ 12 | $ 2,139 | $ 3,570 | $ 277,391 | $ 1,937 | $ (68,559) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 31,874 | 31,874 | |||||||
Other comprehensive income (loss) | 213 | 213 | |||||||
Issuance of non-restricted stock (11,000 shares in Q2'21, 6,000 shares in Q2'20, 24,000 shares YTD in FY'21, 15,000 shares YTD in FY'20) | 0 | (281) | 281 | ||||||
Conversion of Class A to Class B common stock (1,000 shares in Q2'21, 55,000 shares in Q2'20, 1,000 shares YTD in FY'21, 57,000 shares YTD in FY'20) | 0 | (2) | 2 | (21) | 21 | ||||
Compensation expense related to stock compensation plans | 4,395 | 4,395 | |||||||
Performance share issuance (0 shares in Q2'21, 0 shares in Q2'20, 0 shares YTD in FY'21, 67,000 shares YTD in FY'20) | (512) | (1,391) | 879 | ||||||
Restricted stock units issuance (0 shares in Q2'21, 0 shares in Q2'20, 15,000 shares YTD in FY'21, 0 shares YTD in FY'20) | (125) | (327) | 202 | ||||||
Relative total shareholder return performance units issuance (0 shares in Q2'21, 0 shares in Q2'20, 32,000 shares YTD in FY'21, 48,000 shares YTD in FY'20) | (330) | (954) | 624 | ||||||
Reclassification of equity-classified awards | (680) | (680) | |||||||
Repurchase of Common Stock (62,000 shares in Q2'21, 65,000 shares in Q2'20, 62,000 shares YTD in FY'21, 65,000 shares YTD in FY'20) | (3,004) | (3,004) | |||||||
Dividends declared ($0.09 per share in Q2'21, $0.09 per share in Q2'20, $0.18 per share YTD in FY'21, $0.18 per share YTD in FY'20) | (10,071) | (10,071) | |||||||
Balance at the end of the period at Mar. 31, 2020 | 238,250 | 10 | 2,141 | 4,311 | 299,194 | 2,150 | (69,556) | ||
Balance at the beginning of the period at Dec. 31, 2019 | 232,589 | 10 | 2,141 | 3,423 | 293,089 | 2,120 | (68,194) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 9,451 | 9,451 | |||||||
Other comprehensive income (loss) | 30 | 30 | |||||||
Issuance of non-restricted stock (11,000 shares in Q2'21, 6,000 shares in Q2'20, 24,000 shares YTD in FY'21, 15,000 shares YTD in FY'20) | 0 | (79) | 79 | ||||||
Conversion of Class A to Class B common stock (1,000 shares in Q2'21, 55,000 shares in Q2'20, 1,000 shares YTD in FY'21, 57,000 shares YTD in FY'20) | 0 | (21) | 21 | ||||||
Compensation expense related to stock compensation plans | 1,315 | 1,315 | |||||||
Restricted stock units issuance (0 shares in Q2'21, 0 shares in Q2'20, 15,000 shares YTD in FY'21, 0 shares YTD in FY'20) | (125) | (327) | 202 | ||||||
Repurchase of Common Stock (62,000 shares in Q2'21, 65,000 shares in Q2'20, 62,000 shares YTD in FY'21, 65,000 shares YTD in FY'20) | (1,664) | (1,664) | |||||||
Dividends declared ($0.09 per share in Q2'21, $0.09 per share in Q2'20, $0.18 per share YTD in FY'21, $0.18 per share YTD in FY'20) | (3,346) | (3,346) | |||||||
Balance at the end of the period at Mar. 31, 2020 | 238,250 | 10 | 2,141 | 4,311 | 299,194 | 2,150 | (69,556) | ||
Balance at the beginning of the period at Jun. 30, 2020 | 244,796 | $ 134 | 10 | 2,141 | 3,770 | 305,024 | $ 134 | 2,137 | (68,286) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 19 | 19 | |||||||
Other comprehensive income (loss) | 75 | 75 | |||||||
Issuance of non-restricted stock (11,000 shares in Q2'21, 6,000 shares in Q2'20, 24,000 shares YTD in FY'21, 15,000 shares YTD in FY'20) | (24) | (511) | 487 | ||||||
Conversion of Class A to Class B common stock (1,000 shares in Q2'21, 55,000 shares in Q2'20, 1,000 shares YTD in FY'21, 57,000 shares YTD in FY'20) | 0 | (1) | 1 | ||||||
Compensation expense related to stock compensation plans | 4,048 | 4,048 | |||||||
Restricted stock units issuance (0 shares in Q2'21, 0 shares in Q2'20, 15,000 shares YTD in FY'21, 0 shares YTD in FY'20) | (80) | (284) | 204 | ||||||
Relative total shareholder return performance units issuance (0 shares in Q2'21, 0 shares in Q2'20, 32,000 shares YTD in FY'21, 48,000 shares YTD in FY'20) | (156) | (586) | 430 | ||||||
Repurchase of Common Stock (62,000 shares in Q2'21, 65,000 shares in Q2'20, 62,000 shares YTD in FY'21, 65,000 shares YTD in FY'20) | (2,192) | (2,192) | |||||||
Dividends declared ($0.09 per share in Q2'21, $0.09 per share in Q2'20, $0.18 per share YTD in FY'21, $0.18 per share YTD in FY'20) | (10,161) | (10,161) | |||||||
Balance at the end of the period at Mar. 31, 2021 | 236,459 | 9 | 2,142 | 6,437 | 295,016 | 2,212 | (69,357) | ||
Balance at the beginning of the period at Dec. 31, 2020 | 244,012 | 9 | 2,142 | 4,843 | 302,937 | 2,169 | (68,088) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (4,529) | (4,529) | |||||||
Other comprehensive income (loss) | 43 | 43 | |||||||
Issuance of non-restricted stock (11,000 shares in Q2'21, 6,000 shares in Q2'20, 24,000 shares YTD in FY'21, 15,000 shares YTD in FY'20) | (24) | (196) | 172 | ||||||
Conversion of Class A to Class B common stock (1,000 shares in Q2'21, 55,000 shares in Q2'20, 1,000 shares YTD in FY'21, 57,000 shares YTD in FY'20) | 0 | ||||||||
Compensation expense related to stock compensation plans | 1,790 | 1,790 | |||||||
Repurchase of Common Stock (62,000 shares in Q2'21, 65,000 shares in Q2'20, 62,000 shares YTD in FY'21, 65,000 shares YTD in FY'20) | (1,441) | (1,441) | |||||||
Dividends declared ($0.09 per share in Q2'21, $0.09 per share in Q2'20, $0.18 per share YTD in FY'21, $0.18 per share YTD in FY'20) | (3,392) | (3,392) | |||||||
Balance at the end of the period at Mar. 31, 2021 | $ 236,459 | $ 9 | $ 2,142 | $ 6,437 | $ 295,016 | $ 2,212 | $ (69,357) |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) Parentheticals - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Receivables allowance | $ 2,723 | $ 2,574 |
Accumulated depreciation | 197,856 | 193,641 |
Accumulated Amortization | $ 39,420 | $ 40,442 |
Treasury stock (in shares) | 6,197,000 | 6,110,000 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 191,000 | 193,000 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 42,832,000 | 42,830,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (unaudited) - Cash Reconciliation - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | |
Statement of Cash Flows [Abstract] | |||||
Cash and cash equivalents | $ 33,451 | $ 91,798 | $ 76,636 | $ 73,196 | |
Restricted cash included in Other Assets | 3,927 | 646 | 645 | 641 | |
Total Cash, Cash Equivalents, and Restricted Cash at end of period | [1] | $ 37,378 | $ 92,444 | $ 77,281 | $ 73,837 |
[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 and cash held in escrow for repayment of the Payment Protection Program loan that Poppin, Inc. obtained prior to its acquisition. |
Condensed Consolidated Statem_6
Condensed Consolidated Statement of Shareowners' Equity (unaudited) Parentheticals - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Issuance of non-restricted stock (in shares) | 13,000 | 6,000 | 37,000 | 21,000 |
Conversion of Class A to Class B common stock (in shares) | 1,000 | 1,000 | 2,000 | 58,000 |
Vesting of restricted stock units (in shares) | 15,000 | 15,000 | 15,000 | |
Performance Share Issuance (in shares) | 67,000 | |||
Relative total shareholder return performance units issuance (in shares) | 32,000 | 48,000 | ||
Repurchase of Common Stock (in shares) | 109,000 | 81,000 | 171,000 | 146,000 |
Dividends declared (in dollars per share) | $ 0.09 | $ 0.09 | $ 0.27 | $ 0.27 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 prolonged reduction in 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements and Supplemental Information | 9 Months Ended |
Mar. 31, 2021 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | |
Recent Accounting Pronouncements and Supplemental Information | Recent Accounting Pronouncements and Supplemental Information Recently Adopted Accounting Pronouncements: In August 2018, the Financial Accounting Standards Board (“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 was adopted during our first quarter of fiscal year 2021 and was applied prospectively. The adoption of this guidance did not 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 was adopted during our first quarter of fiscal year 2021 and was applied retrospectively. The adoption of this guidance did not have a material effect 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 was adopted during our first quarter of fiscal year 2021 and did not have a material effect on our Condensed Consolidated Financial Statements. Goodwill and Other Intangible Assets: Goodwill represents the difference between the purchase price and the related underlying tangible and intangible net asset fair values resulting from business acquisitions. Goodwill is assigned to and the fair value is tested at the reporting unit level. Annually, or if conditions indicate an earlier review is necessary, we may assess qualitative factors to determine if it is more likely than not that the fair value is less than its carrying amount. We also have the option to bypass the qualitative assessment and proceed directly to performing the quantitative goodwill impairment test which compares the carrying value of the reporting unit to the reporting unit’s fair value to identify impairment. Under the quantitative assessment, if the fair value of the reporting unit is less than the carrying value, goodwill is written down to its fair value. The fair value is established primarily using a discounted cash flow analysis and secondarily a market approach utilizing current industry information. The calculation of the fair value of the reporting unit considers current market conditions existing at the assessment date. In connection with our annual impairment test, we assessed goodwill at the reporting unit level for impairment during our second quarter of fiscal year 2021, and no goodwill impairment was recognized. As of March 31, 2021 and June 30, 2020 our goodwill totaled $83.1 million and $11.2 million, respectively. During fiscal year 2021, we recorded $72.0 million and $52.4 million, respectively, in goodwill and other intangible assets from the acquisition of Poppin, Inc. See Note 3 - Acquisition of Notes to Condensed Consolidated Financial Statements for more information on this acquisition. Other Intangible Assets reported on the Condensed Consolidated Balance Sheets consist of capitalized software, customer relationships, trade names, acquired technology, patents, trademarks, 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, 2021 June 30, 2020 (Amounts in Thousands) Cost Accumulated Net Value Cost Accumulated Net Value Capitalized Software $ 43,606 $ 33,637 $ 9,969 $ 43,671 $ 37,566 $ 6,105 Customer Relationships 19,050 3,157 15,893 7,050 1,871 5,179 Trade Names 36,570 2,240 34,330 3,570 952 2,618 Acquired Technology 7,000 309 6,691 — — — Patents and Trademarks 333 9 324 — — — Non-Compete Agreements 100 68 32 100 53 47 Other Intangible Assets $ 106,659 $ 39,420 $ 67,239 $ 54,391 $ 40,442 $ 13,949 Amortization expense related to intangible assets was, in thousands, $2,510 and $4,212 during the quarter and year-to-date period ended March 31, 2021, and was, in thousands, $639 and $1,707 during the quarter and year-to-date period ended March 31, 2020. Amortization expense in future periods is expected to be, in thousands, $2,516 for the remainder of fiscal year 2021, and $9,423, $8,585, $7,985, and $7,782 in the four years ending June 30, 2025, and $30,948 thereafter. The estimated useful life of capitalized software ranges from 2 to 10 years. The amortization period for customer relationship intangible assets ranges from 10 to 20 years. The estimated useful life of trade names is 10 years. The amortization period for acquired technology is 7 years. The estimated useful life of non-compete agreements is 5 years. The estimated useful life of patents is 14 years and the estimated useful life of trademarks is 15 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, non-compete agreements, acquired technology, patents and trademarks 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 considers several factors including historical write-off experience, overall customer credit quality in relation to general economic and market conditions, and specific customer account analyses to estimate the collectability of certain accounts. The specific customer account analyses considers such items as aging, credit worthiness, payment history, and historical bad debt experience. 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) 2021 2020 2021 2020 Gain (Loss) on SERP Investments $ 428 $ (1,784) $ 2,567 $ (1,010) Other (117) (294) (133) (350) Non-operating income (expense), net $ 311 $ (2,078) $ 2,434 $ (1,360) |
Acquisition
Acquisition | 9 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisition | AcquisitionOn December 9, 2020, we acquired Poppin, Inc. (“Poppin”), a tech-enabled, market-leading B2B commercial furniture design company headquartered in New York City, New York. Poppin designs commercial-grade furniture that is made to mix, match, and scale in today’s modern office and work-from-home environments. The acquisition purchase price totaled $110.4 million in initial cash consideration plus additional contingent payments, if all milestones are achieved, of $70.0 million based on revenue and profitability milestones achieved through June 30, 2024. As of the acquisition date the fair value of the contingent earn-out was $31.8 million. The $110.4 million cash consideration is subject to certain post-closing working capital and other customary adjustments. A summary of the preliminary purchase price allocation is as follows: Purchase Price Allocation (Amounts in Thousands) Cash $ 5,768 Receivables 2,814 Inventories 15,718 Other current assets 700 Net property and equipment 975 Other intangible assets 52,394 Goodwill 71,973 Right-of-use operating lease assets 5,103 Other long-term assets 4,161 Deferred tax assets 4,664 Total Assets $ 164,270 Current maturities of long-term debt 1,252 Accounts payable 7,715 Customer deposits 2,045 Current portion of operating lease liability 1,937 Accrued expenses 5,260 Long-term debt, less current maturities 1,252 Long-term operating lease liability 2,565 Other long-term liabilities 80 Total Liabilities $ 22,106 Net Assets $ 142,164 Consideration (Amounts in Thousands) Cash $ 110,374 Contingent earn-out — fair value at acquisition date 31,790 Fair value of total consideration $ 142,164 Less: Acquired cash 5,768 Total consideration less acquired cash $ 136,396 The operating results of this acquisition are included in our consolidated financial statements beginning on December 9, 2020. For the quarter ended March 31, 2021, net sales and net loss related to Poppin were $8.9 million and $4.0 million, respectively. For the year-to-date period ended March 31, 2021, net sales and net loss related to Poppin were $11.5 million and $5.0 million, respectively. Direct costs of the acquisition during both the quarter and year-to-date periods ended March 31, 2021, of less than $0.1 million and $3.4 million were expensed as incurred and were included on the Selling and Administrative Expenses line of our Condensed Consolidated Statements of Income. The goodwill is not deductible for tax purposes. Goodwill is primarily attributable to the anticipated supply chain and revenue synergies including cross selling initiatives expected from the operations of the combined company. See Note 2 - Recent Accounting Pronouncements and Supplemental Information of Notes to Condensed Consolidated Financial Statements for more information on goodwill and other intangible assets. The purchase price allocation is provisional pending final valuations and purchase accounting adjustments, which were not final as of March 31, 2021. We utilized management estimates and consultation with an independent third-party valuation firm to assist in the valuation process. The following summarizes our goodwill activity: Goodwill (Amounts in Thousands) Goodwill - at acquisition date $ 71,798 Adjustments to purchase price allocation 175 Goodwill - March 31, 2021 $ 71,973 Pro Forma Information The following unaudited pro forma financial information summarizes the combined results of operations for Kimball International, Inc. and Poppin, Inc. as if the companies were combined as of the beginning of fiscal year 2020: (unaudited) (unaudited) Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands, Except Per Share Date) 2021 2020 2021 2020 Net Sales $ 138,676 $ 199,021 $ 442,966 $ 635,078 Net Income (Loss) (4,529) 5,542 (3,187) 21,894 Diluted Earnings (Loss) Per Share of Common Stock $ (0.12) $ 0.15 $ (0.08) $ 0.59 This pro forma financial information is based on historical results of operations, adjusted for the allocation of the purchase price and other acquisition accounting adjustments. This pro forma information is not necessarily indicative of what our results would have been had we operated the businesses since the beginning of the periods presented. The pro forma adjustments reflect the income statement effects of amortization of intangibles related to the fair value adjustments of the assets acquired, acquisition-related costs, incremental interest expense, and the related tax effects. |
Restructuring
Restructuring | 9 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring We recognized pre-tax restructuring expense of $2.6 million and $8.5 million in the three and nine months ended March 31, 2021, respectively, and recognized $0.8 million and $6.6 million for the three and nine months ended March 31, 2020. 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. Transformation Restructuring Plan Phase 1: In June 2019, we announced a transformation restructuring plan to optimize resources for future growth, improve efficiency, and build capabilities across our organization. We believe phase 1 of our transformation restructuring plan has established a more cost-efficient structure to better align our operations with our long-term strategic goals. The transformation restructuring plan included the following: • We reviewed our overall manufacturing facility footprint 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 consolidated a David Edward production facility in Red Lion, Pennsylvania into our Baltimore, Maryland facility. • 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 lease and associated leasehold improvements. Additional impairment was recognized in our fourth quarter of fiscal year 2020 due to degradation of sublease assumptions resulting from the current economic environment. We estimate that the total pre-tax restructuring charges upon completion of the plan will be approximately $11.3 million. The restructuring charges are expected to consist of approximately $3.6 million for severance and other employee-related costs, $3.6 million for facility exit and other costs, and $4.1 million for asset impairment. Approximately 55% of the total cost estimate is expected to be cash expense. A summary of the charges recorded in connection with phase 1 of the transformation restructuring plan is as follows: Three Months Ended Nine Months Ended Charges Incurred to Date March 31 March 31 (Amounts in Thousands) 2021 2020 2021 2020 Cash-related restructuring charges: Severance and other employee related costs $ — $ 203 $ 62 $ 2,194 $ 2,884 Facility exit costs and other cash charges 148 424 733 1,416 2,773 Total cash-related restructuring charges $ 148 $ 627 $ 795 $ 3,610 $ 5,657 Non-cash charges: Transition stock compensation $ — $ 9 $ — $ 663 $ 725 Impairment of assets and accelerated depreciation — 132 405 2,190 4,095 Other non-cash charges — 50 72 101 221 Total non-cash charges $ — $ 191 $ 477 $ 2,954 $ 5,041 Total charges $ 148 $ 818 $ 1,272 $ 6,564 $ 10,698 A summary of the current period activity in accrued restructuring related to phase 1 of 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, 2020 $ 167 $ 65 $ 232 Additions charged to expense 62 — 62 Cash payments charged against reserve (229) (60) (289) Non-cash adjustments — (5) (5) Balance at March 31, 2021 $ — $ — $ — Transformation Restructuring Plan Phase 2: In August 2020, we announced the next phase of our transformation restructuring plan that will align our business units to a new market-centric orientation and is expected to yield additional cost savings that will aid us in effectively managing through the downturn caused by the COVID-19 pandemic. Phase 2 of the transformation restructuring plan builds on the initial strategy and the transformation restructuring plan announced in June 2019. The following is a summary of the activities we will be undertaking pursuant to phase 2 of the transformation restructuring plan: • As part of the previously announced plan to consolidate manufacturing of all brands into one world-class global operations group, we are streamlining our manufacturing facilities by leveraging production capabilities across all facilities, establishing centers of excellence, and setting up processes to facilitate flexing of product between facilities in response to volume fluctuations. We are also reviewing our overall facility footprint to identify opportunities to reduce capacity and gain efficiencies, including the consolidation of our Baltimore, Maryland facility into other manufacturing facilities. • We are streamlining our workforce to align with the new organizational structure and respond to lower volumes created by the COVID-19 pandemic, creating a more efficient organization to deliver on our Connect 2.0 strategy. • In the third quarter of fiscal 2021, we offered two voluntary retirement incentive programs to eligible employees. Employees electing to participate will be paid special termination benefits, including a severance benefit and cash payment that may be used to pay for a period of healthcare coverage or for any other purpose. Phase 2 of the transformation restructuring plan began in the first quarter of our fiscal year 2021, and we expect a substantial majority of the underlying activities of these aforementioned actions to be completed within two years. In addition to the savings already generated from phase 1 of the transformation restructuring plan, the efforts of the phase 2 transformation restructuring plan are expected to generate annualized pre-tax savings of approximately $16.0 million when it is fully implemented. We currently estimate the phase 2 transformation restructuring plan will incur total pre-tax restructuring charges of approximately $15.0 million to $16.0 million, with $9.0 million to $10.0 million expected to be recorded in fiscal year 2021, and the remainder in fiscal year 2022. The restructuring charges are expected to consist of approximately $6.0 million to $6.3 million for severance and other employee-related costs, $3.8 million to $4.4 million for facility costs, and $5.2 million to $5.3 million for lease and other asset impairment. Approximately 70% of the total cost estimate is expected to be cash expense. A summary of the charges recorded in connection with phase 2 of the transformation restructuring plan is as follows: Three Months Ended Nine Months Ended Charges Incurred to Date March 31 March 31 (Amounts in Thousands) 2021 2021 Cash-related restructuring charges: Severance and other employee related costs $ 1,404 $ 4,915 $ 4,915 Facility exit costs and other cash charges 613 849 849 Total cash-related restructuring charges $ 2,017 $ 5,764 $ 5,764 Non-cash charges: Impairment of assets and accelerated depreciation 452 1,437 1,437 Total charges $ 2,469 $ 7,201 $ 7,201 A summary of the current period activity in accrued restructuring related to phase 2 of the transformation restructuring plan is as follows: (Amounts in Thousands) Severance and other employee related costs Balance at June 30, 2020 $ — Additions charged to expense 5,346 Cash payments charged against reserve (2,520) Non-cash adjustments (431) Balance at March 31, 2021 $ 2,395 |
Revenue
Revenue | 9 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The following table provides information about revenue by end market: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Millions) 2021 2020 2021 2020 Workplace $ 78.9 $ 104.3 $ 261.6 $ 344.4 Health 24.6 30.2 72.2 87.3 Hospitality 35.2 43.7 89.0 140.1 Total Net Sales $ 138.7 $ 178.2 $ 422.8 $ 571.8 The Workplace, Health, and Hospitality end markets align with the reorganization which occurred at the beginning of fiscal year 2021. Our Workplace end market includes sales to the commercial, financial, government and education vertical markets and eBusiness. The revenue of the Poppin acquisition is included in eBusiness. 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 upon satisfaction of a performance obligation. 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, 2021 that was included in the June 30, 2020 customer deposit balance was $18.8 million. |
Leases
Leases | 9 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 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 2027. 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. Certain leases have terms that are dependent upon the occurrence of events, activities, or circumstances in lease agreements and incur variable lease expense driven by 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. For all classes of assets, we do not separate non-lease components of a contract from the lease components to which they relate. We do not recognize a right-of-use asset or lease liability for short-term leases that have a lease term of twelve months or less. The components of our lease expenses are as follows: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Millions) 2021 2020 2021 2020 Operating lease expense $ 1.3 $ 0.9 $ 3.1 $ 2.5 Variable lease expense 1.2 0.6 2.5 1.8 Total lease expense $ 2.5 $ 1.5 $ 5.6 $ 4.3 Right-of-use assets for operating leases are tested for impairment in the same manner as long-lived assets used in operations as explained in Note 13 - Fair Value of Notes to Condensed Consolidated Financial Statements. During the first quarter of fiscal year 2021, we recorded $0.2 million of right-of-use asset and associated leasehold improvement impairment resulting from consolidating a production facility in Red Lion, Pennsylvania into our Baltimore, Maryland facility as part of our transformation restructuring plan. 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 as part of our transformation restructuring plan. The impairment charges are included in the Restructuring Expense line item on our Condensed Consolidated Statements of Income. See Note 4 - Restructuring of Notes to Condensed Consolidated Financial Statements for more information on the impairment. Supplemental cash flow and other information related to leases are as follows: Nine Months Ended March 31 (Amounts in Millions) 2021 2020 Cash flow information: Operating lease payments impacting lease liability $ 4.2 $ 3.6 Non-cash impact of obtaining new right-of-use assets $ 5.1 $ 2.1 As of March 31 2021 2020 Other information: Weighted-average remaining term (in years) 4.4 6.1 Weighted-average discount rate 4.5 % 4.7 % The following table summarizes the future minimum lease payments as of March 31, 2021: Fiscal Year Ended (Amounts in Millions) June 30 (1) 2021 $ 1.7 2022 6.6 2023 5.6 2024 3.4 2025 2.7 Thereafter 2.6 Total lease payments $ 22.6 Less interest 2.0 Present value of lease liabilities $ 20.6 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 31, 2021 | |
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) 2021 2020 2021 2020 Net Income (Loss) $ (4,529) $ 9,451 $ 19 $ 31,874 Average Shares Outstanding for Basic EPS Calculation 36,860 36,813 36,932 36,890 Dilutive Effect of Average Outstanding Compensation Awards — 276 597 344 Average Shares Outstanding for Diluted EPS Calculation 36,860 37,089 37,529 37,234 Basic Earnings (Loss) Per Share $ (0.12) $ 0.26 $ 0.00 $ 0.86 Diluted Earnings (Loss) Per Share $ (0.12) $ 0.25 $ 0.00 $ 0.86 |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In determining the quarterly provision for income taxes, we use an estimated annual effective tax rate which is based on expected annual income, statutory tax rates, and available tax planning opportunities in the various jurisdictions in which we operate. Unusual or infrequently occurring items are separately recognized in the quarter in which they occur. Our effective tax rates for the three and nine months ended March 31, 2021 were 39.8% and 102.1%, respectively. These rates were higher than the combined federal and state statutory tax rate primarily due to R&D tax credits, which increased the tax benefit associated with the pre-tax losses during the quarter and year-to-date periods. Our effective tax rate for the three months ended March 31, 2020 was 23.5%, which was less than the combined federal and state statutory tax rate primarily because the R&D tax credit reduced the tax provision on pre-tax income during the quarter. Our effective tax rate was 26.7% for the nine months ended March 31, 2020, which approximated the combined federal and state statutory rate. During the second quarter of fiscal year 2021, we acquired U.S. federal net operating losses (“NOLs”) of approximately $75.7 million in connection with the Poppin, Inc. acquisition, of which an estimated $72.7 million will be available to offset future taxable income during the carryforward period based on limitations under Section 382 of the Internal Revenue Code of 1986, as amended. Approximately $60.1 million of federal NOLs expire between fiscal years 2032 and 2037 and the remaining available federal NOLs can be carried forward indefinitely. We also acquired state NOLs of approximately $91.3 million in connection with the Poppin, Inc. acquisition, of which an estimated $66.7 million will be available to offset future taxable income during the carryforward periods. We provided a full valuation allowance against the available state NOLs, as we do not have sufficient positive evidence at this time to conclude that Poppin, Inc. will be able to utilize the NOL carryforwards in the states where the losses were generated, considering state limitations on the utilization of NOLs. |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory components were as follows: (Amounts in Thousands) March 31, June 30, Finished products $ 41,430 $ 29,081 Work-in-process 1,186 1,648 Raw materials 32,743 35,295 Total FIFO inventory 75,359 66,024 LIFO reserve (16,940) (16,167) Total inventory $ 58,419 $ 49,857 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated Comprehensive Income | Accumulated Other Comprehensive Income During the three months ended March 31, 2021 and 2020, 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) Accumulated Other Comprehensive Income Balance at December 31, 2020 $ 4 $ 2,165 $ 2,169 Other comprehensive income (loss) before reclassifications (3) 129 126 Reclassification to (earnings) loss — (83) (83) Net current-period other comprehensive income (loss) (3) 46 43 Balance at March 31, 2021 $ 1 $ 2,211 $ 2,212 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 During the nine months ended March 31, 2021 and 2020, 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) Accumulated Other Comprehensive Income Balance at June 30, 2020 $ 32 $ 2,105 $ 2,137 Other comprehensive income (loss) before reclassifications (31) 353 322 Reclassification to (earnings) loss — (247) (247) Net current-period other comprehensive income (loss) (31) 106 75 Balance at March 31, 2021 $ 1 $ 2,211 $ 2,212 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 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) 2021 2020 2021 2020 Postemployment Benefits Amortization of Actuarial Gain (1) $ 112 $ 82 $ 333 $ 260 Non-operating income (expense), net (29) (21) (86) (67) Benefit (Provision) for Income Taxes Total Reclassifications for the Period $ 83 $ 61 $ 247 $ 193 Net Income Amounts in parentheses indicate reductions to income. (1) See Note 16 - Postemployment Benefits |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Debt | Short-Term and Long-Term Debt Short-term borrowings and long-term debt consisted of the following obligations: (Amounts in Thousands) March 31, June 30, Short-term debt under credit facility due June 8, 2021; 1.56% $ 40,000 $ — PPP loan obtained in Poppin acquisition due April 23, 2022; 1.00% 2,503 — Other debt maturing August 12, 2025; 9.25% 109 136 Total Debt $ 42,612 $ 136 As of March 31, 2021 we had a $125.0 million credit facility with a maturity date of October 2024 that allowed for both issuances of letters of credit and cash borrowings. We also have an option to request an increase of the amount available for borrowing to $200.0 million, subject to participating banks’ consent. The loans under the Credit Agreement could consist of, at our election, advances in U.S. dollars or advances in any other currency that was agreed to by the lenders. The proceeds of the loans are to be used for general corporate purposes including acquisitions. A portion of the credit facility, not to exceed $10 million of the principal amount, was available for the issuance of letters of credit. At March 31, 2021, we had $1.7 million in letters of credit outstanding, which reduced our borrowing capacity on the credit facility. Total availability to borrow under the credit facility totaled $83.3 million at March 31, 2021. For the third quarter of fiscal year 2021 and 2020, interest expense incurred and paid was, in thousands, $182 and $0, respectively, and for the year-to date periods of fiscal year 2021 and 2020 was $211 and $15, respectively. The interest rate is dependent on the type of borrowings and will be one of the following two options: • the adjusted London Interbank Offered Rate (“Adjusted LIBO Rate” as defined in the Credit Agreement) in effect two business days prior to the advance (adjusted upwards to reflect bank reserve costs) for such interest period, plus the Eurocurrency Loans margin which can range from 125.0 to 200.0 basis points based on the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA; or • the Alternate Base Rate (the “ABR”) which is defined as the highest of the fluctuating rate per annum equal to the higher of a. prime rate as last quoted by The Wall Street Journal; or b. 1% per annum above the Adjusted LIBO rate; or c. 0.5% per annum above the Federal Reserve Bank of New York; plus the ABR Loans spread which can range from 25.0 to 100.0 basis points based on the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA. We were in compliance with all debt covenants of the credit facility during the nine-month period ended March 31, 2021. The most significant financial covenants under the Credit Agreement require: • an adjusted leverage ratio of (a) consolidated total indebtedness minus unencumbered U.S. cash equivalents in excess of $15,000,000 provided that the maximum subtraction shall not exceed $35,000,000 to (b) adjusted consolidated EBITDA, determined as of the end of each of its fiscal quarters for the then most recently ended four fiscal quarters, to not be greater than 3.0 to 1.0, and • an interest coverage ratio, for any period, of (a) Consolidated EBITDA for such period to (b) cash interest expense for such period, calculated on a consolidated basis in accordance with GAAP for the trailing four quarter period then ending, to not be less than 3.00 to 1.00. We acquired Poppin, Inc. subsequent to their borrowing of the Payment Protection Program (“PPP”) loan, and we hold restricted cash in escrow for repayment of the PPP loan. If the PPP loan is forgiven, the proceeds will be paid to the former Poppin, Inc. equity holders per the terms of the agreement and plan of merger. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 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, 2021, we had a maximum financial exposure from unused standby letters of credit totaling $1.7 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 $8.1 million as of March 31, 2021. 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, 2021 with respect to the standby letters of credit or performance bonds. We also enter into commercial letters of credit to facilitate payments to vendors and from customers. Product Warranties: We provide an assurance-type warranty that guarantees our product complies with agreed-upon specifications. This warranty is not sold separately and does not convey any additional services to the customer. We estimate product warranty liability at the time of sale based on historical repair or replacement cost trends in conjunction with the length of the warranty offered. Management refines the warranty liability periodically based on changes in historical cost trends and in certain cases where specific warranty issues become known. Changes in the product warranty accrual for the nine months ended March 31, 2021 and 2020 were as follows: Nine Months Ended March 31 (Amounts in Thousands) 2021 2020 Product Warranty Liability at the beginning of the period $ 3,190 $ 2,238 Additions to warranty accrual (including changes in estimates) 1,256 3,318 Settlements made (in cash or in kind) (1,643) (2,356) Product Warranty Liability at the end of the period $ 2,803 $ 3,200 |
Fair Value
Fair Value | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 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. There were 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, 2020. In connection with the acquisition of Poppin, we valued long-lived and intangible assets at their estimated fair values at the acquisition date. The fair value estimates for intangible assets were based upon assumptions related to the future cash flows and discount rates utilizing currently available information, and in some cases, valuation results from independent valuation specialists (Level 3 determination of fair value). Subsequent to the acquisition, we may determine the fair value of our long-lived and intangible assets on a non-recurring basis in connection with our periodic evaluations of such assets for potential impairment and record impairment charges when such fair value estimates are lower than the carrying values of the assets. As part of the acquisition, contingent earn-out payments up to $70.0 million may be paid based on revenue and profitability milestones achieved through June 30, 2024. As of March 31, 2021, the fair value of the contingent earn-out liability was $31.8 million . The liability is carried at fair value and is classified in Level 3 of the fair value hierarchy. The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs: Contingent Consideration Liability Fair Value Valuation Technique Unobservable Inputs Range Selected Revenue and EBITDA Based Payments $ 31.8 million Discounted Cash Flow Revenue Discount Rate 4% to 6% 5 % EBITDA Volatility 30% to 52.5% 50 % Revenue Volatility 5% to 7% 7 % 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 14 - Investments of Notes to Condensed Consolidated Financial Statements for further information regarding the investment in equity securities without readily determinable fair value, and Note 15 - Derivative Instruments of 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, 2021. 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 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. 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. The value of the stock warrants fluctuates primarily in relation to the value of the privately-held company's underlying securities. 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, 2021 and June 30, 2020, 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, 2021 (Amounts in Thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 27,409 $ — $ — $ 27,409 Available-for-sale securities: Secondary market certificates of deposit — 501 — 501 Trading Securities: Mutual funds in nonqualified SERP 13,586 — — 13,586 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 40,995 $ 501 $ 1,500 $ 42,996 Liabilities Contingent earn-out liability — — 31,790 31,790 Total liabilities at fair value $ — $ — $ 31,790 $ 31,790 June 30, 2020 (Amounts in Thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 91,035 $ — $ — $ 91,035 Available-for-sale securities: Secondary market certificates of deposit — 5,294 — 5,294 Trading Securities: Mutual funds in nonqualified SERP 11,975 — — 11,975 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 103,010 $ 5,294 $ 1,500 $ 109,804 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 14 - Investments of 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 Right of Use Lease Assets and Related Asset Groups 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 2021, we recorded $0.2 million of right-of-use asset and associated leasehold improvement impairment resulting from consolidating a production facility in Red Lion, Pennsylvania into our Baltimore, Maryland facility as part of our transformation restructuring plan. 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 14 - Investments of 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, debt, and dividends payable approximates fair value due to their relatively short maturity and immaterial non-performance risk. |
Investments
Investments | 9 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Investments | Investments Investment Portfolio: Our investment portfolio consists of certificates of deposit purchased in the secondary market. 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: March 31, 2021 (Amounts in Thousands) Certificates of Deposit Within one year $ 501 After one year through two years — Total Fair Value $ 501 All investments are classified as available-for-sale securities which are recorded at fair value. See Note 13 - Fair Value of 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, 2021 (Amounts in Thousands) Certificates of Deposit Amortized cost basis $ 500 Unrealized holding gains 1 Unrealized holding losses — Fair Value $ 501 June 30, 2020 (Amounts in Thousands) Certificates of Deposit Amortized cost basis $ 5,250 Unrealized holding gains 44 Unrealized holding losses — Fair Value $ 5,294 No investments were in a continuous unrealized loss position for greater than twelve months as of March 31, 2021. There were no realized gains or losses as a result of sales in the three and nine months ended March 31, 2021 and March 31, 2020. 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 gains for the nine months ended March 31, 2021 and 2020 were, in thousands, $2,051 and $1,569, respectively. SERP asset and liability balances were as follows: (Amounts in Thousands) March 31, June 30, SERP investments - current asset $ 3,463 $ 3,622 SERP investments - other long-term asset 10,123 8,353 Total SERP investments $ 13,586 $ 11,975 SERP obligation - current liability $ 3,463 $ 3,622 SERP obligation - other long-term liability 10,123 8,353 Total SERP obligation $ 13,586 $ 11,975 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 13 - Fair Value of 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. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative InstrumentsWe 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, 2021, the change in fair value of the stock warrants was not significant. See Note 13 - Fair Value of Notes to Condensed Consolidated Financial Statements for more information on the valuation of these securities. |
Postemployment Benefits
Postemployment Benefits | 9 Months Ended |
Mar. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Postemployment Benefits | 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) 2021 2020 2021 2020 Service cost $ 118 $ 120 $ 361 $ 365 Interest cost 10 19 31 56 Amortization of actuarial income (112) (82) (333) (260) Net periodic benefit cost $ 16 $ 57 $ 59 $ 161 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. |
Stock Compensation
Stock Compensation | 9 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation | Stock Compensation Stock-based compensation expense during the quarter and year-to-date period ended March 31, 2021 was $1.8 million and $4.0 million, respectively, and during the quarter and year-to-date period ended March 31, 2020 was $1.3 million and $4.5 million, respectively. The total income tax benefit for stock compensation arrangements during the quarter and year-to-date period ended March 31, 2021 was $0.5 million and $1.0 million, respectively, and during the quarter and year-to-date period ended March 31, 2020 was $0.4 million and $1.2 million, respectively. During fiscal year 2021, 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, 2020. Type of Award Quarter Awarded Targeted Shares or Units Grant Date Fair Value (4) Relative Total Shareholder Return Performance Units (1) 1st Quarter 82,036 $11.35 Relative Total Shareholder Return Performance Units (1) 2nd Quarter 17,285 $10.68 - $12.63 Restricted Stock Units (2) 1st Quarter 165,529 $10.94 - $11.28 Restricted Stock Units (2) 2nd Quarter 415,513 $11.08 - $12.25 Restricted Stock Units (2) 3rd Quarter 9,366 $12.09 - $12.81 Unrestricted Shares (3) 1st Quarter 12,592 $11.02 Unrestricted Shares (3) 2nd Quarter 11,042 $10.65 - $10.67 Unrestricted Shares (3) 3rd Quarter 13,014 $11.83 - $12.50 (1) Performance units were awarded to key officers under the Company’s Relative Total Shareholder Return program. Vesting occurs at June 30, 2021, June 30, 2022, and June 30, 2023. 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, excluding forfeited awards, is 190,664. (2) Restricted stock units were awarded to officers and key employees. Vesting occurs at June 30, 2021, December 31, 2021, June 30, 2022, December 31, 2022, June 30, 2023, and December 31, 2023. Upon vesting, the outstanding number of restricted stock units and the value of dividends accumulated over the vesting period are converted to shares of common stock. (3) Unrestricted shares were awarded to non-employee members of the Board of Directors and key employees as consideration for service to Kimball International and do not have vesting periods, holding periods, restrictions on sale, or other restrictions. (4) 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. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Mar. 31, 2021 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Variable Interest Entities | Variable Interest Entities Our involvement with variable interest entities (“VIEs”) is limited to situations in which we are not the primary beneficiary as we lack the power to direct the activities that most significantly impact the VIE’s economic performance. Thus, consolidation is not required. Our involvement with VIEs consists of an investment in a privately-held company consisting of equity securities without readily determinable fair value and stock warrants and notes receivable related to independent dealership financing, as described in Note 13 - Fair Value of Notes to Condensed Consolidated Financial Statements. The carrying value of the notes receivable for independent dealership financing were $0.6 million at March 31, 2021 and $0.9 million at June 30, 2020 and were included on the Receivables and Other Assets lines of our Condensed Consolidated Balance Sheets. We have no obligation to provide additional funding to the VIEs, and thus our exposure and risk of loss related to the VIEs is limited to the carrying value of the investment and notes receivable. Financial support provided by Kimball International to the VIEs was limited to the items discussed above during the quarter ended March 31, 2021. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements and Supplemental Information (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Recent Accounting Pronouncements and Supplemental Information [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. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements: In August 2018, the Financial Accounting Standards Board (“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 was adopted during our first quarter of fiscal year 2021 and was applied prospectively. The adoption of this guidance did not 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 was adopted during our first quarter of fiscal year 2021 and was applied retrospectively. The adoption of this guidance did not have a material effect 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 was adopted during our first quarter of fiscal year 2021 and did not have a material effect on our Condensed Consolidated Financial Statements. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets:Goodwill represents the difference between the purchase price and the related underlying tangible and intangible net asset fair values resulting from business acquisitions. Goodwill is assigned to and the fair value is tested at the reporting unit level. Annually, or if conditions indicate an earlier review is necessary, we may assess qualitative factors to determine if it is more likely than not that the fair value is less than its carrying amount. We also have the option to bypass the qualitative assessment and proceed directly to performing the quantitative goodwill impairment test which compares the carrying value of the reporting unit to the reporting unit’s fair value to identify impairment. Under the quantitative assessment, if the fair value of the reporting unit is less than the carrying value, goodwill is written down to its fair value. The fair value is established primarily using a discounted cash flow analysis and secondarily a market approach utilizing current industry information. The calculation of the fair value of the reporting unit considers current market conditions existing at the assessment date. |
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, non-compete agreements, acquired technology, patents and trademarks 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 considers several factors including historical write-off experience, overall customer credit quality in relation to general economic and market conditions, and specific customer account analyses to estimate the collectability of certain accounts. The specific customer account analyses considers such items as aging, credit worthiness, payment history, and historical bad debt experience. 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 |
Non-operating Income and Expense, net | Non-operating Income (Expense), net: The non-operating income (expense), net line item includes the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, amortization of actuarial income, 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. |
Impairment or disposal of long-lived assets | 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. |
Recognition of asset and liability for lease | Certain leases have terms that are dependent upon the occurrence of events, activities, or circumstances in lease agreements and incur variable lease expense driven by 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 non-lease components | For all classes of assets, we do not separate non-lease components of a contract from the lease components to which they relate. |
Short-term Leases | We do not recognize a right-of-use asset or lease liability for short-term leases that have a lease term of twelve months or less. |
Income tax policy | 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. |
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. |
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. |
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. There were 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, 2020. 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 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. 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. The value of the stock warrants fluctuates primarily in relation to the value of the privately-held company's underlying securities. Contingent earn-out liability 3 Income - Based on a valuation model that measures the present value of the probable cash payments based upon the forecasted operating performance of the acquisition and a discount rate that captures the risk associated with the liability. |
Fair Value of Financial Instruments 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 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. 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. The value of the stock warrants fluctuates primarily in relation to the value of the privately-held company's underlying securities. 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 | 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 Right of Use Lease Assets and Related Asset Groups 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. |
Share-based Payment Arrangement | 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. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [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. There were 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, 2020. 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 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. 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. The value of the stock warrants fluctuates primarily in relation to the value of the privately-held company's underlying securities. 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. |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements and Supplemental Information (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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, 2021 June 30, 2020 (Amounts in Thousands) Cost Accumulated Net Value Cost Accumulated Net Value Capitalized Software $ 43,606 $ 33,637 $ 9,969 $ 43,671 $ 37,566 $ 6,105 Customer Relationships 19,050 3,157 15,893 7,050 1,871 5,179 Trade Names 36,570 2,240 34,330 3,570 952 2,618 Acquired Technology 7,000 309 6,691 — — — Patents and Trademarks 333 9 324 — — — Non-Compete Agreements 100 68 32 100 53 47 Other Intangible Assets $ 106,659 $ 39,420 $ 67,239 $ 54,391 $ 40,442 $ 13,949 |
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) 2021 2020 2021 2020 Gain (Loss) on SERP Investments $ 428 $ (1,784) $ 2,567 $ (1,010) Other (117) (294) (133) (350) Non-operating income (expense), net $ 311 $ (2,078) $ 2,434 $ (1,360) |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | A summary of the preliminary purchase price allocation is as follows: Purchase Price Allocation (Amounts in Thousands) Cash $ 5,768 Receivables 2,814 Inventories 15,718 Other current assets 700 Net property and equipment 975 Other intangible assets 52,394 Goodwill 71,973 Right-of-use operating lease assets 5,103 Other long-term assets 4,161 Deferred tax assets 4,664 Total Assets $ 164,270 Current maturities of long-term debt 1,252 Accounts payable 7,715 Customer deposits 2,045 Current portion of operating lease liability 1,937 Accrued expenses 5,260 Long-term debt, less current maturities 1,252 Long-term operating lease liability 2,565 Other long-term liabilities 80 Total Liabilities $ 22,106 Net Assets $ 142,164 |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | Consideration (Amounts in Thousands) Cash $ 110,374 Contingent earn-out — fair value at acquisition date 31,790 Fair value of total consideration $ 142,164 Less: Acquired cash 5,768 Total consideration less acquired cash $ 136,396 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma financial information summarizes the combined results of operations for Kimball International, Inc. and Poppin, Inc. as if the companies were combined as of the beginning of fiscal year 2020: (unaudited) (unaudited) Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands, Except Per Share Date) 2021 2020 2021 2020 Net Sales $ 138,676 $ 199,021 $ 442,966 $ 635,078 Net Income (Loss) (4,529) 5,542 (3,187) 21,894 Diluted Earnings (Loss) Per Share of Common Stock $ (0.12) $ 0.15 $ (0.08) $ 0.59 |
Schedule of Goodwill | The following summarizes our goodwill activity: Goodwill (Amounts in Thousands) Goodwill - at acquisition date $ 71,798 Adjustments to purchase price allocation 175 Goodwill - March 31, 2021 $ 71,973 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs Phase 1 | A summary of the charges recorded in connection with phase 1 of the transformation restructuring plan is as follows: Three Months Ended Nine Months Ended Charges Incurred to Date March 31 March 31 (Amounts in Thousands) 2021 2020 2021 2020 Cash-related restructuring charges: Severance and other employee related costs $ — $ 203 $ 62 $ 2,194 $ 2,884 Facility exit costs and other cash charges 148 424 733 1,416 2,773 Total cash-related restructuring charges $ 148 $ 627 $ 795 $ 3,610 $ 5,657 Non-cash charges: Transition stock compensation $ — $ 9 $ — $ 663 $ 725 Impairment of assets and accelerated depreciation — 132 405 2,190 4,095 Other non-cash charges — 50 72 101 221 Total non-cash charges $ — $ 191 $ 477 $ 2,954 $ 5,041 Total charges $ 148 $ 818 $ 1,272 $ 6,564 $ 10,698 |
Accrued Restructuring Charges Activity Phase 1 | A summary of the current period activity in accrued restructuring related to phase 1 of 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, 2020 $ 167 $ 65 $ 232 Additions charged to expense 62 — 62 Cash payments charged against reserve (229) (60) (289) Non-cash adjustments — (5) (5) Balance at March 31, 2021 $ — $ — $ — |
Restructuring and Related Costs Phase 2 | A summary of the charges recorded in connection with phase 2 of the transformation restructuring plan is as follows: Three Months Ended Nine Months Ended Charges Incurred to Date March 31 March 31 (Amounts in Thousands) 2021 2021 Cash-related restructuring charges: Severance and other employee related costs $ 1,404 $ 4,915 $ 4,915 Facility exit costs and other cash charges 613 849 849 Total cash-related restructuring charges $ 2,017 $ 5,764 $ 5,764 Non-cash charges: Impairment of assets and accelerated depreciation 452 1,437 1,437 Total charges $ 2,469 $ 7,201 $ 7,201 |
Accrued Restructuring Charges Activity Phase 2 | A summary of the current period activity in accrued restructuring related to phase 2 of the transformation restructuring plan is as follows: (Amounts in Thousands) Severance and other employee related costs Balance at June 30, 2020 $ — Additions charged to expense 5,346 Cash payments charged against reserve (2,520) Non-cash adjustments (431) Balance at March 31, 2021 $ 2,395 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following table provides information about revenue by end market: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Millions) 2021 2020 2021 2020 Workplace $ 78.9 $ 104.3 $ 261.6 $ 344.4 Health 24.6 30.2 72.2 87.3 Hospitality 35.2 43.7 89.0 140.1 Total Net Sales $ 138.7 $ 178.2 $ 422.8 $ 571.8 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Components of lease expense | The components of our lease expenses are as follows: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Millions) 2021 2020 2021 2020 Operating lease expense $ 1.3 $ 0.9 $ 3.1 $ 2.5 Variable lease expense 1.2 0.6 2.5 1.8 Total lease expense $ 2.5 $ 1.5 $ 5.6 $ 4.3 |
Supplemental cash flow and other information related to leases | Supplemental cash flow and other information related to leases are as follows: Nine Months Ended March 31 (Amounts in Millions) 2021 2020 Cash flow information: Operating lease payments impacting lease liability $ 4.2 $ 3.6 Non-cash impact of obtaining new right-of-use assets $ 5.1 $ 2.1 As of March 31 2021 2020 Other information: Weighted-average remaining term (in years) 4.4 6.1 Weighted-average discount rate 4.5 % 4.7 % |
Future minimum lease payments | The following table summarizes the future minimum lease payments as of March 31, 2021: Fiscal Year Ended (Amounts in Millions) June 30 (1) 2021 $ 1.7 2022 6.6 2023 5.6 2024 3.4 2025 2.7 Thereafter 2.6 Total lease payments $ 22.6 Less interest 2.0 Present value of lease liabilities $ 20.6 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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) 2021 2020 2021 2020 Net Income (Loss) $ (4,529) $ 9,451 $ 19 $ 31,874 Average Shares Outstanding for Basic EPS Calculation 36,860 36,813 36,932 36,890 Dilutive Effect of Average Outstanding Compensation Awards — 276 597 344 Average Shares Outstanding for Diluted EPS Calculation 36,860 37,089 37,529 37,234 Basic Earnings (Loss) Per Share $ (0.12) $ 0.26 $ 0.00 $ 0.86 Diluted Earnings (Loss) Per Share $ (0.12) $ 0.25 $ 0.00 $ 0.86 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventory components were as follows: (Amounts in Thousands) March 31, June 30, Finished products $ 41,430 $ 29,081 Work-in-process 1,186 1,648 Raw materials 32,743 35,295 Total FIFO inventory 75,359 66,024 LIFO reserve (16,940) (16,167) Total inventory $ 58,419 $ 49,857 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | During the three months ended March 31, 2021 and 2020, 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) Accumulated Other Comprehensive Income Balance at December 31, 2020 $ 4 $ 2,165 $ 2,169 Other comprehensive income (loss) before reclassifications (3) 129 126 Reclassification to (earnings) loss — (83) (83) Net current-period other comprehensive income (loss) (3) 46 43 Balance at March 31, 2021 $ 1 $ 2,211 $ 2,212 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 During the nine months ended March 31, 2021 and 2020, 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) Accumulated Other Comprehensive Income Balance at June 30, 2020 $ 32 $ 2,105 $ 2,137 Other comprehensive income (loss) before reclassifications (31) 353 322 Reclassification to (earnings) loss — (247) (247) Net current-period other comprehensive income (loss) (31) 106 75 Balance at March 31, 2021 $ 1 $ 2,211 $ 2,212 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 |
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) 2021 2020 2021 2020 Postemployment Benefits Amortization of Actuarial Gain (1) $ 112 $ 82 $ 333 $ 260 Non-operating income (expense), net (29) (21) (86) (67) Benefit (Provision) for Income Taxes Total Reclassifications for the Period $ 83 $ 61 $ 247 $ 193 Net Income Amounts in parentheses indicate reductions to income. (1) See Note 16 - Postemployment Benefits |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Short-term borrowings and long-term debt consisted of the following obligations: (Amounts in Thousands) March 31, June 30, Short-term debt under credit facility due June 8, 2021; 1.56% $ 40,000 $ — PPP loan obtained in Poppin acquisition due April 23, 2022; 1.00% 2,503 — Other debt maturing August 12, 2025; 9.25% 109 136 Total Debt $ 42,612 $ 136 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Changes in the product warranty accrual for the nine months ended March 31, 2021 and 2020 were as follows: Nine Months Ended March 31 (Amounts in Thousands) 2021 2020 Product Warranty Liability at the beginning of the period $ 3,190 $ 2,238 Additions to warranty accrual (including changes in estimates) 1,256 3,318 Settlements made (in cash or in kind) (1,643) (2,356) Product Warranty Liability at the end of the period $ 2,803 $ 3,200 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs: Contingent Consideration Liability Fair Value Valuation Technique Unobservable Inputs Range Selected Revenue and EBITDA Based Payments $ 31.8 million Discounted Cash Flow Revenue Discount Rate 4% to 6% 5 % EBITDA Volatility 30% to 52.5% 50 % Revenue Volatility 5% to 7% 7 % |
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 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. 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. The value of the stock warrants fluctuates primarily in relation to the value of the privately-held company's underlying securities. 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, 2021 and June 30, 2020, 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, 2021 (Amounts in Thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 27,409 $ — $ — $ 27,409 Available-for-sale securities: Secondary market certificates of deposit — 501 — 501 Trading Securities: Mutual funds in nonqualified SERP 13,586 — — 13,586 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 40,995 $ 501 $ 1,500 $ 42,996 Liabilities Contingent earn-out liability — — 31,790 31,790 Total liabilities at fair value $ — $ — $ 31,790 $ 31,790 June 30, 2020 (Amounts in Thousands) Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 91,035 $ — $ — $ 91,035 Available-for-sale securities: Secondary market certificates of deposit — 5,294 — 5,294 Trading Securities: Mutual funds in nonqualified SERP 11,975 — — 11,975 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 103,010 $ 5,294 $ 1,500 $ 109,804 |
Non-recurring Fair Value Adjustment Technique | Non-recurring Fair Value Adjustment Level Valuation Technique/Inputs Used Impairment of Right of Use Lease Assets and Related Asset Groups 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. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Schedule of Contractual Maturities on Investments | The contractual maturities of our investment portfolio were as follows: March 31, 2021 (Amounts in Thousands) Certificates of Deposit Within one year $ 501 After one year through two years — Total Fair Value $ 501 |
Unrealized Gain (Loss) on Investments | March 31, 2021 (Amounts in Thousands) Certificates of Deposit Amortized cost basis $ 500 Unrealized holding gains 1 Unrealized holding losses — Fair Value $ 501 June 30, 2020 (Amounts in Thousands) Certificates of Deposit Amortized cost basis $ 5,250 Unrealized holding gains 44 Unrealized holding losses — Fair Value $ 5,294 |
Trading Securities (and Certain Trading Assets) | SERP asset and liability balances were as follows: (Amounts in Thousands) March 31, June 30, SERP investments - current asset $ 3,463 $ 3,622 SERP investments - other long-term asset 10,123 8,353 Total SERP investments $ 13,586 $ 11,975 SERP obligation - current liability $ 3,463 $ 3,622 SERP obligation - other long-term liability 10,123 8,353 Total SERP obligation $ 13,586 $ 11,975 |
Postemployment Benefits (Tables
Postemployment Benefits (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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) 2021 2020 2021 2020 Service cost $ 118 $ 120 $ 361 $ 365 Interest cost 10 19 31 56 Amortization of actuarial income (112) (82) (333) (260) Net periodic benefit cost $ 16 $ 57 $ 59 $ 161 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | Type of Award Quarter Awarded Targeted Shares or Units Grant Date Fair Value (4) Relative Total Shareholder Return Performance Units (1) 1st Quarter 82,036 $11.35 Relative Total Shareholder Return Performance Units (1) 2nd Quarter 17,285 $10.68 - $12.63 Restricted Stock Units (2) 1st Quarter 165,529 $10.94 - $11.28 Restricted Stock Units (2) 2nd Quarter 415,513 $11.08 - $12.25 Restricted Stock Units (2) 3rd Quarter 9,366 $12.09 - $12.81 Unrestricted Shares (3) 1st Quarter 12,592 $11.02 Unrestricted Shares (3) 2nd Quarter 11,042 $10.65 - $10.67 Unrestricted Shares (3) 3rd Quarter 13,014 $11.83 - $12.50 (1) Performance units were awarded to key officers under the Company’s Relative Total Shareholder Return program. Vesting occurs at June 30, 2021, June 30, 2022, and June 30, 2023. Participants will earn from 0% to 200% of the target award depending upon how the compound annual growth rate of Kimball International common stock ranks within the peer group at the end of the performance period. The maximum number of units that can be issued under these awards, excluding forfeited awards, is 190,664. (2) Restricted stock units were awarded to officers and key employees. Vesting occurs at June 30, 2021, December 31, 2021, June 30, 2022, December 31, 2022, June 30, 2023, and December 31, 2023. Upon vesting, the outstanding number of restricted stock units and the value of dividends accumulated over the vesting period are converted to shares of common stock. (3) Unrestricted shares were awarded to non-employee members of the Board of Directors and key employees as consideration for service to Kimball International and do not have vesting periods, holding periods, restrictions on sale, or other restrictions. (4) The grant date fair value of the Relative Total Shareholder Return awards was calculated using a Monte Carlo simulation. This valuation technique includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. The grant date fair value of the restricted stock units that receive dividends and unrestricted shares was based on the stock price at the date of the award. |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements and Supplemental Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 09, 2020 | Jun. 30, 2020 | |
Accounting Standards and Supplemental Information [Line Items] | |||||||
Goodwill impairment loss | $ 0 | ||||||
Goodwill | $ 83,133 | $ 83,133 | $ 11,160 | ||||
Net Value | 67,239 | 67,239 | 13,949 | ||||
Amortization | 2,510 | $ 639 | 4,212 | $ 1,707 | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||
Remainder of fiscal year | 2,516 | 2,516 | |||||
Expected amortization expense, year one | 9,423 | 9,423 | |||||
Expected amortization expense, year two | 8,585 | 8,585 | |||||
Expected amortization expense, year three | 7,985 | 7,985 | |||||
Expected amortization expense, year four | 7,782 | 7,782 | |||||
Expected amortization expense, thereafter | 30,948 | 30,948 | |||||
Indefinite-lived intangible assets (excluding goodwill) | 0 | $ 0 | |||||
Customary payment terms | 30 days | ||||||
Days beyond which terms are considered extended payment terms | 30 days | ||||||
Software and Software Development Costs | Minimum | |||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||
Useful life | 2 years | ||||||
Software and Software Development Costs | Maximum | |||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||
Useful life | 10 years | ||||||
Customer Relationships | |||||||
Accounting Standards and Supplemental Information [Line Items] | |||||||
Net Value | 15,893 | $ 15,893 | 5,179 | ||||
Customer Relationships | Minimum | |||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||
Useful life | 10 years | ||||||
Customer Relationships | Maximum | |||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||
Useful life | 20 years | ||||||
Trade Names | |||||||
Accounting Standards and Supplemental Information [Line Items] | |||||||
Net Value | 34,330 | $ 34,330 | 2,618 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||
Useful life | 10 years | ||||||
Non-Compete Agreements | |||||||
Accounting Standards and Supplemental Information [Line Items] | |||||||
Net Value | 32 | $ 32 | 47 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||
Useful life | 5 years | ||||||
Acquired Technology | |||||||
Accounting Standards and Supplemental Information [Line Items] | |||||||
Net Value | 6,691 | $ 6,691 | $ 0 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||
Useful life | 7 years | ||||||
Patents | |||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||
Useful life | 14 years | ||||||
Trademarks | |||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||
Useful life | 15 years | ||||||
Poppin, Inc. | |||||||
Accounting Standards and Supplemental Information [Line Items] | |||||||
Goodwill | 71,973 | $ 71,973 | $ 71,973 | ||||
Net Value | $ 52,400 | $ 52,400 |
Recent Accounting Pronounceme_5
Recent Accounting Pronouncements and Supplemental Information - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Finite-Lived Intangible Assets | ||
Cost | $ 106,659 | $ 54,391 |
Accumulated Amortization | 39,420 | 40,442 |
Net Value | 67,239 | 13,949 |
Capitalized Software | ||
Finite-Lived Intangible Assets | ||
Cost | 43,606 | 43,671 |
Accumulated Amortization | 33,637 | 37,566 |
Net Value | 9,969 | 6,105 |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Cost | 19,050 | 7,050 |
Accumulated Amortization | 3,157 | 1,871 |
Net Value | 15,893 | 5,179 |
Trade Names | ||
Finite-Lived Intangible Assets | ||
Cost | 36,570 | 3,570 |
Accumulated Amortization | 2,240 | 952 |
Net Value | 34,330 | 2,618 |
Acquired Technology | ||
Finite-Lived Intangible Assets | ||
Cost | 7,000 | 0 |
Accumulated Amortization | 309 | 0 |
Net Value | 6,691 | 0 |
Patents and Trademarks | ||
Finite-Lived Intangible Assets | ||
Cost | 333 | 0 |
Accumulated Amortization | 9 | 0 |
Net Value | 324 | 0 |
Non-Compete Agreements | ||
Finite-Lived Intangible Assets | ||
Cost | 100 | 100 |
Accumulated Amortization | 68 | 53 |
Net Value | $ 32 | $ 47 |
Recent Accounting Pronounceme_6
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, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | ||||
Gain (Loss) on SERP Investments | $ 428 | $ (1,784) | $ 2,567 | $ (1,010) |
Other | (117) | (294) | (133) | (350) |
Non-operating income (expense), net | $ 311 | $ (2,078) | $ 2,434 | $ (1,360) |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - USD ($) $ in Thousands | Dec. 09, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Business Acquisition [Line Items] | |||||
Net sales | $ 138,676 | $ 178,174 | $ 422,817 | $ 571,790 | |
Net loss | (4,529) | $ 9,451 | 19 | $ 31,874 | |
Poppin, Inc. | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 110,374 | 110,400 | |||
Contingent earn-out liability | 31,800 | 31,800 | 31,800 | ||
Net sales | 8,900 | 11,500 | |||
Net loss | 4,000 | 5,000 | |||
Poppin, Inc. | Selling, General and Administrative Expenses | |||||
Business Acquisition [Line Items] | |||||
Acquisition related costs | $ 100 | $ 3,400 | |||
Poppin, Inc. | Maximum | |||||
Business Acquisition [Line Items] | |||||
Contingent earn-out liability | $ 70,000 |
Acquisition - Schedule of Purch
Acquisition - Schedule of Purchase Price Allocation for Acquisition (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 09, 2020 | Jun. 30, 2020 |
Assets | |||
Goodwill | $ 83,133 | $ 11,160 | |
Poppin, Inc. | |||
Assets | |||
Cash | $ 5,768 | ||
Receivables | 2,814 | ||
Inventories | 15,718 | ||
Other current assets | 700 | ||
Net property and equipment | 975 | ||
Other intangible assets | 52,394 | ||
Goodwill | $ 71,973 | 71,973 | |
Right-of-use operating lease assets | 5,103 | ||
Other long-term assets | 4,161 | ||
Deferred tax assets | 4,664 | ||
Total Assets | 164,270 | ||
Liabilities | |||
Current maturities of long-term debt | 1,252 | ||
Accounts payable | 7,715 | ||
Customer deposits | 2,045 | ||
Current portion of operating lease liability | 1,937 | ||
Accrued expenses | 5,260 | ||
Long-term debt, less current maturities | 1,252 | ||
Long-term operating lease liability | 2,565 | ||
Other long-term liabilities | 80 | ||
Total Liabilities | 22,106 | ||
Net Assets | $ 142,164 |
Acquisition - Schedule of Consi
Acquisition - Schedule of Consideration for Acquisition (Details) - USD ($) $ in Thousands | Dec. 09, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Business Acquisition, Contingent Consideration [Line Items] | |||
Total consideration less acquired cash | $ 101,478 | $ 0 | |
Poppin, Inc. | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Cash | $ 110,374 | $ 110,400 | |
Contingent earn-out — fair value at acquisition date | 31,790 | ||
Fair value of total consideration | 142,164 | ||
Less: Acquired cash | 5,768 | ||
Total consideration less acquired cash | $ 136,396 |
Acquisition - Goodwill (Details
Acquisition - Goodwill (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill end of the period | $ 83,133 |
Poppin, Inc. | |
Goodwill [Roll Forward] | |
Goodwill - at acquisition date | 71,798 |
Adjustments to purchase price allocation | 175 |
Goodwill end of the period | $ 71,973 |
Acquisition - Pro Forma Informa
Acquisition - Pro Forma Information (Details) - Poppin, Inc. - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Net Sales | $ 138,676 | $ 199,021 | $ 442,966 | $ 635,078 |
Net Income (Loss) | $ (4,529) | $ 5,542 | $ (3,187) | $ 21,894 |
Diluted Earnings (Loss) Per Share of Common Stock | $ (0.12) | $ 0.15 | $ (0.08) | $ 0.59 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2021USD ($) | Sep. 30, 2020 | Mar. 31, 2020USD ($) | Sep. 30, 2019showroom | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Restructuring Expense and Other Related Items | ||||||
Restructuring expense | $ 2,617 | $ 818 | $ 8,473 | $ 6,564 | ||
Number of closed showrooms | showroom | 4 | |||||
Restructuring period (in years) | 2 years | |||||
Transformation Restructuring Plan Phase 1 | ||||||
Restructuring Expense and Other Related Items | ||||||
Restructuring expense | 148 | $ 818 | 1,272 | $ 6,564 | ||
Restructuring and related expected costs | 11,300 | $ 11,300 | ||||
Percentage of restructuring costs expected in cash | 55.00% | |||||
Transformation Restructuring Plan Phase 2 | ||||||
Restructuring Expense and Other Related Items | ||||||
Restructuring expense | 2,469 | $ 7,201 | ||||
Percentage of restructuring costs expected in cash | 70.00% | |||||
Effect on future earnings, amount | $ 16,000 | |||||
Severance and other employee related costs | Transformation Restructuring Plan Phase 1 | ||||||
Restructuring Expense and Other Related Items | ||||||
Restructuring and related expected costs | 3,600 | 3,600 | ||||
Facility exit costs and other cash charges | Transformation Restructuring Plan Phase 1 | ||||||
Restructuring Expense and Other Related Items | ||||||
Restructuring and related expected costs | 3,600 | 3,600 | ||||
Impairment of assets and accelerated depreciation | Transformation Restructuring Plan Phase 1 | ||||||
Restructuring Expense and Other Related Items | ||||||
Restructuring and related expected costs | 4,100 | 4,100 | ||||
Minimum | Transformation Restructuring Plan Phase 2 | ||||||
Restructuring Expense and Other Related Items | ||||||
Restructuring and related expected costs | 15,000 | 15,000 | ||||
Restructuring and related cost expected cost, fiscal 2021 | 9,000 | 9,000 | ||||
Minimum | Severance and other employee related costs | Transformation Restructuring Plan Phase 2 | ||||||
Restructuring Expense and Other Related Items | ||||||
Restructuring and related expected costs | 6,000 | 6,000 | ||||
Minimum | Facility exit costs and other cash charges | Transformation Restructuring Plan Phase 2 | ||||||
Restructuring Expense and Other Related Items | ||||||
Restructuring and related expected costs | 3,800 | 3,800 | ||||
Minimum | Impairment of assets and accelerated depreciation | Transformation Restructuring Plan Phase 2 | ||||||
Restructuring Expense and Other Related Items | ||||||
Restructuring and related expected costs | 5,200 | 5,200 | ||||
Maximum | Transformation Restructuring Plan Phase 2 | ||||||
Restructuring Expense and Other Related Items | ||||||
Restructuring and related expected costs | 16,000 | 16,000 | ||||
Restructuring and related cost expected cost, fiscal 2021 | 10,000 | 10,000 | ||||
Maximum | Severance and other employee related costs | Transformation Restructuring Plan Phase 2 | ||||||
Restructuring Expense and Other Related Items | ||||||
Restructuring and related expected costs | 6,300 | 6,300 | ||||
Maximum | Facility exit costs and other cash charges | Transformation Restructuring Plan Phase 2 | ||||||
Restructuring Expense and Other Related Items | ||||||
Restructuring and related expected costs | 4,400 | 4,400 | ||||
Maximum | Impairment of assets and accelerated depreciation | Transformation Restructuring Plan Phase 2 | ||||||
Restructuring Expense and Other Related Items | ||||||
Restructuring and related expected costs | $ 5,300 | $ 5,300 |
Restructuring - Charges related
Restructuring - Charges related to Transformation Restructuring Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Expense and Other Related Items | ||||
Restructuring expense | $ 2,617 | $ 818 | $ 8,473 | $ 6,564 |
Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring expense | 148 | 818 | 1,272 | 6,564 |
Charges Incurred to Date | 10,698 | 10,698 | ||
Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring expense | 2,469 | 7,201 | ||
Charges Incurred to Date | 7,201 | 7,201 | ||
Cash-related restructuring charges: | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring expense | 148 | 627 | 795 | 3,610 |
Charges Incurred to Date | 5,657 | 5,657 | ||
Cash-related restructuring charges: | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring expense | 2,017 | 5,764 | ||
Charges Incurred to Date | 5,764 | 5,764 | ||
Cash-related restructuring charges: | Severance and other employee related costs | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring expense | 0 | 203 | 62 | 2,194 |
Charges Incurred to Date | 2,884 | 2,884 | ||
Cash-related restructuring charges: | Severance and other employee related costs | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring expense | 1,404 | 4,915 | ||
Charges Incurred to Date | 4,915 | 4,915 | ||
Cash-related restructuring charges: | Facility exit costs and other cash charges | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring expense | 148 | 424 | 733 | 1,416 |
Charges Incurred to Date | 2,773 | 2,773 | ||
Cash-related restructuring charges: | Facility exit costs and other cash charges | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring expense | 613 | 849 | ||
Charges Incurred to Date | 849 | 849 | ||
Non-cash charges: | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring expense | 0 | 191 | 477 | 2,954 |
Charges Incurred to Date | 5,041 | 5,041 | ||
Non-cash charges: | Transition stock compensation | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring expense | 0 | 9 | 0 | 663 |
Charges Incurred to Date | 725 | 725 | ||
Non-cash charges: | Impairment of assets and accelerated depreciation | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring expense | 0 | 132 | 405 | 2,190 |
Charges Incurred to Date | 4,095 | 4,095 | ||
Non-cash charges: | Impairment of assets and accelerated depreciation | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring expense | 452 | 1,437 | ||
Charges Incurred to Date | 1,437 | 1,437 | ||
Non-cash charges: | Other non-cash charges | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring expense | 0 | $ 50 | 72 | $ 101 |
Charges Incurred to Date | $ 221 | $ 221 |
Restructuring - Current Period
Restructuring - Current Period activity in accrued restructuring related to Transformation Restructuring Reserve (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2021USD ($) | |
Transformation Restructuring Plan Phase 1 | |
Restructuring Reserve [Roll Forward] | |
Balance at the beginning of the period | $ 232 |
Additions charged to expense | 62 |
Cash payments charged against reserve | (289) |
Non-cash adjustments | (5) |
Balance at the end of the period | 0 |
Severance and other employee related costs | Transformation Restructuring Plan Phase 1 | |
Restructuring Reserve [Roll Forward] | |
Balance at the beginning of the period | 167 |
Additions charged to expense | 62 |
Cash payments charged against reserve | (229) |
Non-cash adjustments | 0 |
Balance at the end of the period | 0 |
Severance and other employee related costs | Transformation Restructuring Plan Phase 2 | |
Restructuring Reserve [Roll Forward] | |
Balance at the beginning of the period | 0 |
Additions charged to expense | 5,346 |
Cash payments charged against reserve | (2,520) |
Non-cash adjustments | (431) |
Balance at the end of the period | 2,395 |
Facility exit and other costs | Transformation Restructuring Plan Phase 1 | |
Restructuring Reserve [Roll Forward] | |
Balance at the beginning of the period | 65 |
Additions charged to expense | 0 |
Cash payments charged against reserve | (60) |
Non-cash adjustments | (5) |
Balance at the end of the period | $ 0 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 138,676 | $ 178,174 | $ 422,817 | $ 571,790 |
Workplace | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 78,900 | 104,300 | 261,600 | 344,400 |
Health | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 24,600 | 30,200 | 72,200 | 87,300 |
Hospitality | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 35,200 | $ 43,700 | $ 89,000 | $ 140,100 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2021USD ($)segment | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Number of operating segments | segment | 3 |
Customer deposit balance | $ | $ 18.8 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||||
Operating lease expense | $ 1.3 | $ 0.9 | $ 3.1 | $ 2.5 |
Variable lease expense | 1.2 | 0.6 | 2.5 | 1.8 |
Total lease expense | $ 2.5 | $ 1.5 | $ 5.6 | $ 4.3 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow relating to Leases (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease payments impacting lease liability | $ 4.2 | $ 3.6 |
Non-cash impact of obtaining new right-of-use assets | $ 5.1 | $ 2.1 |
Weighted-average remaining term (in years) | 4 years 4 months 24 days | 6 years 1 month 6 days |
Weighted-average discount rate | 4.50% | 4.70% |
Leases - Summary of Future Leas
Leases - Summary of Future Lease Payments (Details) $ in Millions | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 1.7 |
2022 | 6.6 |
2023 | 5.6 |
2024 | 3.4 |
2025 | 2.7 |
Thereafter | 2.6 |
Total lease payments | 22.6 |
Less interest | 2 |
Present value of lease liabilities | $ 20.6 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($)showroom | Mar. 31, 2021USD ($) | |
Leases [Abstract] | |||
Finance lease liability | $ 0 | ||
Right-of-use asset | $ 0.2 | $ 2.2 | |
Number of closed showrooms | showroom | 4 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of EPS Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (4,529) | $ 9,451 | $ 19 | $ 31,874 |
Average Number of Shares Outstanding - Basic (in shares) | 36,860 | 36,813 | 36,932 | 36,890 |
Dilutive Effect of Average Outstanding Compensation Awards (in shares) | 0 | 276 | 597 | 344 |
Average Number of Shares Outstanding - Diluted (in shares) | 36,860 | 37,089 | 37,529 | 37,234 |
Basic Earnings (Loss) Per Share (in dollars per share) | $ (0.12) | $ 0.26 | $ 0 | $ 0.86 |
Diluted Earnings (Loss) Per Share (in dollars per share) | $ 0.25 | $ 0 | $ 0.86 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2021shares | |
Restricted Stock Units (RSUs) | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 752 |
Relative Total Shareholder Return | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 166 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||||
Effective income tax rate reconciliation percent | 39.80% | 23.50% | 102.10% | 26.70% | |
Poppin, Inc. | Domestic Tax Authority | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards | $ 72.7 | ||||
Operating loss carryforwards before tax limitation | 75.7 | ||||
Operating losses expiring after carryforward period | $ 60.1 | $ 60.1 | |||
Poppin, Inc. | State and Local Jurisdiction | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards | $ 66.7 | $ 66.7 | |||
Operating loss carryforwards before tax limitation | $ 91.3 |
Inventories - Inventory Compone
Inventories - Inventory Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |||
Finished products | $ 41,430 | $ 41,430 | $ 29,081 |
Work-in-process | 1,186 | 1,186 | 1,648 |
Raw materials | 32,743 | 32,743 | 35,295 |
Total FIFO inventory | 75,359 | 75,359 | 66,024 |
LIFO reserve | (16,940) | (16,940) | (16,167) |
Total inventory | 58,419 | 58,419 | $ 49,857 |
Earnings impact of LIFO inventory liquidations | $ 432 | $ 605 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income- Schedule of Balances of Each Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income | ||||
Balance at the beginning of the period | $ 244,012 | $ 232,589 | $ 244,796 | $ 216,490 |
Other comprehensive income (loss) before reclassifications | 126 | 91 | 322 | 406 |
Reclassification to (earnings) loss | (83) | (61) | (247) | (193) |
Net current-period other comprehensive income (loss) | 43 | 30 | 75 | 213 |
Balance at the end of the period | 236,459 | 238,250 | 236,459 | 238,250 |
Unrealized Investment Gain (Loss) | ||||
Accumulated Other Comprehensive Income | ||||
Balance at the beginning of the period | 4 | 8 | 32 | 23 |
Other comprehensive income (loss) before reclassifications | (3) | 2 | (31) | (13) |
Reclassification to (earnings) loss | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | (3) | 2 | (31) | (13) |
Balance at the end of the period | 1 | 10 | 1 | 10 |
Postemployment Benefits Net Actuarial Gain (Loss) | ||||
Accumulated Other Comprehensive Income | ||||
Balance at the beginning of the period | 2,165 | 2,112 | 2,105 | 1,914 |
Other comprehensive income (loss) before reclassifications | 129 | 89 | 353 | 419 |
Reclassification to (earnings) loss | (83) | (61) | (247) | (193) |
Net current-period other comprehensive income (loss) | 46 | 28 | 106 | 226 |
Balance at the end of the period | 2,211 | 2,140 | 2,211 | 2,140 |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income | ||||
Balance at the beginning of the period | 2,169 | 2,120 | 2,137 | 1,937 |
Balance at the end of the period | $ 2,212 | $ 2,150 | $ 2,212 | $ 2,150 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassifications from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Non-operating income (expense), net | $ 311 | $ (2,078) | $ 2,434 | $ (1,360) |
Provision (Benefit) for Income Taxes | 2,992 | (2,906) | 919 | (11,585) |
Net Income | (4,529) | 9,451 | 19 | 31,874 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Net Income | 83 | 61 | 247 | 193 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest | ||||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Non-operating income (expense), net | 112 | 82 | 333 | 260 |
Provision (Benefit) for Income Taxes | $ (29) | $ (21) | $ (86) | $ (67) |
Short-Term and Long-Term Debt -
Short-Term and Long-Term Debt - Schedule of Short-term and Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Debt Instrument [Line Items] | ||
Short-term debt | $ 40,000 | $ 0 |
Total Debt | 42,612 | 136 |
Credit Facility | ||
Debt Instrument [Line Items] | ||
Short-term debt | $ 40,000 | 0 |
Interest rate, stated percentage | 1.56% | |
PPP Loan | ||
Debt Instrument [Line Items] | ||
Other Debt | $ 2,503 | 0 |
Interest rate, stated percentage | 1.00% | |
Other Debt | ||
Debt Instrument [Line Items] | ||
Other Debt | $ 109 | $ 136 |
Interest rate, stated percentage | 9.25% |
Short-Term and Long-Term Debt_2
Short-Term and Long-Term Debt - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 125,000,000 | $ 125,000,000 | ||
Maximum borrowing capacity upon request | 200,000,000 | 200,000,000 | ||
Amount available for letters of credit | 10,000,000 | 10,000,000 | ||
Line of credit facility, remaining borrowing capacity | 83,300,000 | 83,300,000 | ||
Interest paid on borrowings | 182,000 | $ 0 | 211,000 | $ 15,000 |
Adjusted leverage ratio, indebtedness reduction for excess cash | $ 15,000,000 | $ 15,000,000 | ||
Adjusted leverage ratio covenant | 3 | 3 | ||
Interest coverage ratio covenant | 3 | 3 | ||
London Interbank Offered Rate (LIBOR) | Primary Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate charged over index rate | 1.00% | |||
Federal Funds Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate charged over index rate | 0.50% | |||
Minimum | Eurocurrency Loans Margin | ||||
Debt Instrument [Line Items] | ||||
Interest rate (basis points) | 0.01250 | |||
Minimum | Alternate Base Rate Loans Spread | ||||
Debt Instrument [Line Items] | ||||
Interest rate (basis points) | 0.00250 | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Adjusted leverage ratio, indebtedness reduction for excess cash | $ 35,000,000 | $ 35,000,000 | ||
Maximum | Eurocurrency Loans Margin | ||||
Debt Instrument [Line Items] | ||||
Interest rate (basis points) | 0.02000 | |||
Maximum | Alternate Base Rate Loans Spread | ||||
Debt Instrument [Line Items] | ||||
Interest rate (basis points) | 0.01000 | |||
Financial Standby Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit, amount | $ 1,700,000 | $ 1,700,000 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Narrative (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Financial Standby Letter of Credit | |
Guarantor Obligations | |
Letters of credit, amount | $ 1,700 |
Standby Letters of Credit | |
Guarantor Obligations | |
Loss Contingency Accrual, at Carrying Value | 0 |
Performance Guarantee | |
Guarantor Obligations | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 8,100 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Product Warranty (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Product Warranty Liability at the beginning of the period | $ 3,190 | $ 2,238 |
Additions to warranty accrual (including changes in estimates) | 1,256 | 3,318 |
Settlements made (in cash or in kind) | (1,643) | (2,356) |
Product Warranty Liability at the end of the period | $ 2,803 | $ 3,200 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($)showroom | Mar. 31, 2021USD ($)showroom | Dec. 09, 2020USD ($) | Jun. 30, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Changes in inputs and valuation techniques | showroom | 0 | ||||
Investment owned, at cost | $ 2,000 | ||||
Purchases of level 3 assets | 0 | ||||
Sales of level 3 assets | 0 | ||||
Impairment loss | $ 200 | $ 2,200 | |||
Number of showrooms consolidated | showroom | 4 | ||||
Poppin, Inc. | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Contingent earn-out liability | 31,800 | $ 31,800 | |||
Poppin, Inc. | Maximum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Contingent earn-out liability | $ 70,000 | ||||
Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Contingent earn-out liability | 31,790 | ||||
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 | |||||
Equity securities not readily marketable | 500 | ||||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Contingent earn-out liability | 31,790 | ||||
Warrant | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Derivative asset, fair value, gross asset | 1,500 | $ 1,500 | |||
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 | $ 1,500 | |||
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 |
Fair Value - Recurring Fair Val
Fair Value - Recurring Fair Value Measurements, Unobservable Input Reconciliation (Details) $ in Thousands | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Contingent earn-out liability | $ 31,790 | $ 0 |
Poppin, Inc. | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Contingent earn-out liability | $ 31,800 | |
Revenue Discount Rate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Measurement input | 0.05 | |
Revenue Discount Rate | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Measurement input | 0.04 | |
Revenue Discount Rate | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Measurement input | 0.06 | |
EBITDA Volatility | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Measurement input | 0.50 | |
EBITDA Volatility | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Measurement input | 0.30 | |
EBITDA Volatility | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Measurement input | 0.525 | |
Revenue Volatility | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Measurement input | 0.07 | |
Revenue Volatility | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Measurement input | 0.05 | |
Revenue Volatility | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Measurement input | 0.07 |
Fair Value - Recurring Fair V_2
Fair Value - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Assets | ||
Trading Securities: Mutual funds in nonqualified SERP | $ 13,586 | $ 11,975 |
Certificates of Deposit | ||
Assets | ||
Available-for-sale securities: Secondary market certificates of deposit | 501 | 5,294 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Total assets at fair value | 42,996 | 109,804 |
Liabilities | ||
Contingent earn-out liability | 31,790 | |
Total liabilities at fair value | 31,790 | |
Fair Value, Measurements, Recurring | Warrant | ||
Assets | ||
Derivatives: Stock warrants | 1,500 | 1,500 |
Fair Value, Measurements, Recurring | Money Market Funds | ||
Assets | ||
Cash equivalents: Money market funds | 27,409 | 91,035 |
Fair Value, Measurements, Recurring | Certificates of Deposit | ||
Assets | ||
Available-for-sale securities: Secondary market certificates of deposit | 501 | 5,294 |
Fair Value, Measurements, Recurring | Mutual Fund | ||
Assets | ||
Trading Securities: Mutual funds in nonqualified SERP | 13,586 | 11,975 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets | ||
Total assets at fair value | 40,995 | 103,010 |
Liabilities | ||
Contingent earn-out liability | 0 | |
Total liabilities at fair value | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Warrant | ||
Assets | ||
Derivatives: Stock warrants | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Money Market Funds | ||
Assets | ||
Cash equivalents: Money market funds | 27,409 | 91,035 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Certificates of Deposit | ||
Assets | ||
Available-for-sale securities: Secondary market certificates of deposit | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Mutual Fund | ||
Assets | ||
Trading Securities: Mutual funds in nonqualified SERP | 13,586 | 11,975 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets | ||
Total assets at fair value | 501 | 5,294 |
Liabilities | ||
Contingent earn-out liability | 0 | |
Total liabilities at fair value | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Warrant | ||
Assets | ||
Derivatives: Stock warrants | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Money Market Funds | ||
Assets | ||
Cash equivalents: Money market funds | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Certificates of Deposit | ||
Assets | ||
Available-for-sale securities: Secondary market certificates of deposit | 501 | 5,294 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Mutual Fund | ||
Assets | ||
Trading Securities: Mutual funds in nonqualified SERP | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets | ||
Total assets at fair value | 1,500 | 1,500 |
Liabilities | ||
Contingent earn-out liability | 31,790 | |
Total liabilities at fair value | 31,790 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Warrant | ||
Assets | ||
Derivatives: Stock warrants | 1,500 | 1,500 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Money Market Funds | ||
Assets | ||
Cash equivalents: Money market funds | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Certificates of Deposit | ||
Assets | ||
Available-for-sale securities: Secondary market certificates of deposit | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Mutual Fund | ||
Assets | ||
Trading Securities: Mutual funds in nonqualified SERP | $ 0 | $ 0 |
Investments - Schedule of Contr
Investments - Schedule of Contractual Maturities on Investments (Details) - Certificates of Deposit - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of Investments [Line Items] | ||
Within one year | $ 501 | |
After one year through two years | 0 | |
Total Fair Value | $ 501 | $ 5,294 |
Investments - Unrealized Gain (
Investments - Unrealized Gain (Loss) on Investments (Details) - Certificates of Deposit - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost basis | $ 500 | $ 5,250 |
Unrealized holding gains | 1 | 44 |
Unrealized holding losses | 0 | 0 |
Fair Value | $ 501 | $ 5,294 |
Investments - Supplemental Empl
Investments - Supplemental Employee Retirement Investments Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investments [Abstract] | ||
Unrealized holding gains | $ 2,051 | $ 1,569 |
Investments - Supplemental Em_2
Investments - Supplemental Employee Retirement Plan Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Schedule of Trading Securities and Other Trading Assets | ||
Total SERP investments | $ 13,586 | $ 11,975 |
Total SERP obligation | 13,586 | 11,975 |
Short-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
Total SERP investments | 3,463 | 3,622 |
Total SERP obligation | 3,463 | 3,622 |
Other Long-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
Total SERP investments | 10,123 | 8,353 |
Total SERP obligation | $ 10,123 | $ 8,353 |
Investments - Investments - Equ
Investments - Investments - Equity securities without readily determinable fair value Textuals (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2021USD ($) | Mar. 31, 2021USD ($) | |
Continuous unrealized loss position, accumulated loss | $ 0 | $ 0 |
Realized gains or losses as a result of sales | 0 | 0 |
Investment owned, at cost | 2 | 2 |
Other Assets | Preferred Stock | ||
Equity securities without readily determinable fair value | $ 0.5 | $ 0.5 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
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 |
Postemployment Benefits (Detail
Postemployment Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Postemployment Benefits [Abstract] | ||||
Service cost | $ 118 | $ 120 | $ 361 | $ 365 |
Interest cost | 10 | 19 | 31 | 56 |
Amortization of actuarial income | (112) | (82) | (333) | (260) |
Net periodic benefit cost | $ 16 | $ 57 | $ 59 | $ 161 |
Stock Compensation - Narrative
Stock Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based compensation expense | $ 1.8 | $ 1.3 | $ 4 | $ 4.5 |
Share-based payment arrangement, expense, tax benefit | $ 0.5 | $ 0.4 | $ 1 | $ 1.2 |
Relative Total Shareholder Return | Minimum | ||||
Payout percentage | 0.00% | 0.00% | ||
Relative Total Shareholder Return | Maximum | ||||
Payout percentage | 200.00% | 200.00% | ||
Number of shares available for grant (in shares) | 190,664 | 190,664 |
Stock Compensation - Schedule o
Stock Compensation - Schedule of Awards (Details) - $ / shares | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
Relative Total Shareholder Return | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Targeted Shares or Units (in shares) | 17,285 | 82,036 | |
Grant Date Fair Value (in dollars per share) | $ 11.35 | ||
Relative Total Shareholder Return | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Grant Date Fair Value (in dollars per share) | $ 10.68 | ||
Relative Total Shareholder Return | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Grant Date Fair Value (in dollars per share) | $ 12.63 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Targeted Shares or Units (in shares) | 9,366 | 415,513 | 165,529 |
Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Grant Date Fair Value (in dollars per share) | $ 12.09 | $ 11.08 | $ 10.94 |
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Grant Date Fair Value (in dollars per share) | $ 12.81 | $ 12.25 | $ 11.28 |
Unrestricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Targeted Shares or Units (in shares) | 13,014 | 11,042 | 12,592 |
Grant Date Fair Value (in dollars per share) | $ 11.02 | ||
Unrestricted Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Grant Date Fair Value (in dollars per share) | $ 11.83 | $ 10.65 | |
Unrestricted Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Grant Date Fair Value (in dollars per share) | $ 12.50 | $ 10.67 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Variable Interest Entity | ||
Obligation to provide additional funding, amount | $ 0 | |
Receivables and Other Assets | Independent Dealership Financing | Notes Receivable | ||
Variable Interest Entity | ||
Notes receivable, net of allowance | $ 0.6 | $ 0.9 |