Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended | ||
Sep. 30, 2013 | Oct. 23, 2013 | Oct. 23, 2013 | |
Class A Common Stock | Class B Common Stock | ||
Document Information | ' | ' | ' |
Entity Registrant Name | 'KIMBALL INTERNATIONAL INC | ' | ' |
Entity Central Index Key | '0000055772 | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q1 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 8,272,068 | 30,161,666 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $109,630 | $103,600 |
Receivables, net of allowances of $2,503 and $2,791, respectively | 161,840 | 160,767 |
Inventories | 128,777 | 123,998 |
Prepaid expenses and other current assets | 38,473 | 39,013 |
Assets held for sale | 2,646 | 1,521 |
Total current assets | 441,366 | 428,899 |
Property and Equipment, net of accumulated depreciation of $354,842 and $371,232, respectively | 184,122 | 185,744 |
Goodwill | 2,556 | 2,511 |
Other Intangible Assets, net of accumulated amortization of $61,816 and $62,147, respectively | 4,817 | 5,276 |
Other Assets | 24,632 | 22,089 |
Total Assets | 657,493 | 644,519 |
Current Liabilities: | ' | ' |
Current maturities of long-term debt | 25 | 23 |
Accounts payable | 158,803 | 155,709 |
Dividends payable | 1,880 | 1,863 |
Accrued expenses | 56,598 | 56,856 |
Total current liabilities | 217,306 | 214,451 |
Other Liabilities: | ' | ' |
Long-term debt, less current maturities | 275 | 294 |
Other | 25,179 | 25,268 |
Total other liabilities | 25,454 | 25,562 |
Common stock-par value $0.05 per share: | ' | ' |
Additional paid-in capital | 861 | 4,448 |
Retained earnings | 468,409 | 462,957 |
Accumulated other comprehensive loss | -271 | -3,477 |
Less: Treasury stock, at cost: | ' | ' |
Total Share Owners' Equity | 414,733 | 404,506 |
Total Liabilities and Share Owners' Equity | 657,493 | 644,519 |
Class A Common Stock | ' | ' |
Common stock-par value $0.05 per share: | ' | ' |
Common Stock | 591 | 601 |
Less: Treasury stock, at cost: | ' | ' |
Treasury Stock | -42,198 | -47,152 |
Class B Common Stock | ' | ' |
Common stock-par value $0.05 per share: | ' | ' |
Common Stock | 1,560 | 1,550 |
Less: Treasury stock, at cost: | ' | ' |
Treasury Stock | ($14,219) | ($14,421) |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Parentheticals (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
ASSETS | ' | ' |
Accounts and Notes Receivable Allowances | $2,503 | $2,791 |
Property and Equipment Accumulated Depreciation | 354,842 | 371,232 |
Other Intangible Assets Accumulated Depreciation | $61,816 | $62,147 |
Class A Common Stock | ' | ' |
Share Owners' Equity | ' | ' |
Common Stock, Par Value Per Share | $0.05 | $0.05 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 11,834,000 | 12,025,000 |
Treasury Stock, Shares | 3,505,000 | 3,843,000 |
Class B Common Stock | ' | ' |
Share Owners' Equity | ' | ' |
Common Stock, Par Value Per Share | $0.05 | $0.05 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 31,191,000 | 31,000,000 |
Treasury Stock, Shares | 1,086,000 | 1,101,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Average Number of Shares Outstanding: | ' | ' |
Average Number of Shares Outstanding, Basic | 38,310 | 38,017 |
Average Number of Shares Outstanding, Diluted | 38,596 | 38,256 |
Statement [Line Items] | ' | ' |
Net Sales | $317,439 | $288,190 |
Cost of Sales | 256,115 | 232,985 |
Gross Profit | 61,324 | 55,205 |
Selling and Administrative Expenses | 54,217 | 48,238 |
Other General Income | -5,022 | 0 |
Restructuring Expense | 402 | 60 |
Operating Income | 11,727 | 6,907 |
Other Income (Expense): | ' | ' |
Interest income | 68 | 110 |
Interest expense | -7 | -7 |
Non-operating income (expense), net | 958 | 184 |
Other income (expense), net | 1,019 | 287 |
Income Before Taxes on Income | 12,746 | 7,194 |
Provision for Income Taxes | 3,563 | 2,233 |
Net Income | $9,183 | $4,961 |
Class A Common Stock | ' | ' |
Basic Earnings Per Share: | ' | ' |
Earnings (Loss) Per Share, Basic | $0.24 | $0.12 |
Diluted Earnings Per Share: | ' | ' |
Earnings (Loss) Per Share, Diluted | $0.23 | $0.12 |
Dividends Per Share of Common Stock: | ' | ' |
Dividends Per Share of Common Stock, Declared | $0.05 | $0.05 |
Class B Common Stock | ' | ' |
Basic Earnings Per Share: | ' | ' |
Earnings (Loss) Per Share, Basic | $0.24 | $0.13 |
Diluted Earnings Per Share: | ' | ' |
Earnings (Loss) Per Share, Diluted | $0.24 | $0.13 |
Dividends Per Share of Common Stock: | ' | ' |
Dividends Per Share of Common Stock, Declared | $0.05 | $0.05 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $9,183 | $4,961 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustments, Pre-tax | 3,102 | 1,107 |
Foreign currency translation adjustments, Tax | -174 | -67 |
Foreign currency translation adjustments, Net of Tax | 2,928 | 1,040 |
Postemployment severance actuarial change, Pre-tax | 452 | 414 |
Postemployment severance actuarial change, Tax | -180 | -165 |
Postemployment severance actuarial change, Net of Tax | 272 | 249 |
Derivative gain (loss), Pre-tax | -505 | 1,401 |
Derivative gain (loss), Tax | 115 | -361 |
Derivative gain (loss), Net of Tax | -390 | 1,040 |
Reclassification to (earnings) loss: | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 396 | ' |
Derivatives, Reclassification to (earnings) loss, Pre-tax | 350 | -260 |
Derivatives, Reclassification to (earnings) loss, Tax | -51 | 35 |
Derivatives, Reclassification to (earnings) loss, Net of Tax | 299 | -225 |
Amortization of prior service cost, Pre-tax | 71 | 71 |
Amortization of prior service cost, Tax | -28 | -28 |
Amortization of prior service cost, Net of Tax | 43 | 43 |
Amortization of actuarial change, Pre-tax | 90 | 92 |
Amortization of actuarial change, Tax | -36 | -37 |
Amortization of actuarial change, Net of Tax | 54 | 55 |
Other comprehensive income (loss), Pre-tax | 3,560 | 2,825 |
Other comprehensive income (loss), Tax | -354 | -623 |
Other comprehensive income (loss), Net of Tax | 3,206 | 2,202 |
Total comprehensive income (loss) | 12,389 | 7,163 |
Foreign Exchange Contract | ' | ' |
Other comprehensive income (loss): | ' | ' |
Derivative gain (loss), Pre-tax | -505 | 1,401 |
Accumulated Translation Adjustment | ' | ' |
Reclassification to (earnings) loss: | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | ' |
Postemployment Benefits, Net Actuarial Gain (Loss) | ' | ' |
Reclassification to (earnings) loss: | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 54 | ' |
Derivative Gain (Loss) | ' | ' |
Reclassification to (earnings) loss: | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 299 | ' |
Postemployment Benefits, Prior Service Costs | ' | ' |
Reclassification to (earnings) loss: | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $43 | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows From Operating Activities: | ' | ' |
Net income | $9,183 | $4,961 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 7,804 | 7,469 |
Loss on sales of assets | 60 | 38 |
Restructuring and asset impairment charges | 1,509 | 0 |
Deferred income tax and other deferred charges | -2,233 | 77 |
Stock-based compensation | 1,486 | 717 |
Excess tax benefits from stock-based compensation | -43 | -567 |
Other, net | 53 | 342 |
Change in operating assets and liabilities: | ' | ' |
Receivables | 12 | -1,484 |
Inventories | -3,814 | -7,998 |
Prepaid expenses and other current assets | 1,120 | 4,106 |
Accounts payable | 1,785 | 5,811 |
Accrued expenses | -897 | -3,986 |
Net cash provided by operating activities | 16,025 | 9,486 |
Cash Flows From Investing Activities: | ' | ' |
Capital expenditures | -6,630 | -5,270 |
Proceeds from sales of assets | 191 | 166 |
Purchases of capitalized software | -43 | -182 |
Other, net | 57 | 148 |
Net cash used for investing activities | -6,425 | -5,138 |
Cash Flows From Financing Activities: | ' | ' |
Net change in capital leases and long-term debt | -17 | -14 |
Dividends paid to Share Owners | -1,863 | -1,843 |
Excess tax benefits from stock-based compensation | 43 | 567 |
Repurchase of employee shares for tax withholding | -1,947 | -851 |
Net cash used for financing activities | -3,784 | -2,141 |
Effect of Exchange Rate Change on Cash and Cash Equivalents | 214 | 96 |
Net Increase in Cash and Cash Equivalents | 6,030 | 2,303 |
Cash and Cash Equivalents at Beginning of Period | 103,600 | 75,197 |
Cash and Cash Equivalents at End of Period | 109,630 | 77,500 |
Cash paid during the period for: | ' | ' |
Income taxes | 2,376 | 575 |
Interest expense | $26 | $27 |
Note_1_Summary_of_Significant_
Note 1. Summary of Significant Accounting Policies | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Summary of Significant Accounting Policies [Abstract] | ' | |||||||
Significant Accounting Policies | ' | |||||||
Summary of Significant Accounting Policies | ||||||||
Basis of Presentation: | ||||||||
The accompanying unaudited Condensed Consolidated Financial Statements of Kimball International, Inc. (the "Company," "Kimball," "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. All significant 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. | ||||||||
Notes Receivable and Trade Accounts Receivable: | ||||||||
Kimball's notes receivable and trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. We determine on a case-by-case basis the cessation of accruing interest, the resumption of accruing interest, the method of recording payments received on nonaccrual receivables, and the delinquency status for our limited number of notes receivable. | ||||||||
Our policy for estimating the allowance for credit losses on trade accounts receivable and notes receivable includes analysis of such items as agement, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to determine the final allowance for credit losses on the trade accounts receivable and notes receivable. Trade accounts receivable and notes receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Our limited number 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. | ||||||||
Other General Income: | ||||||||
Other General Income in fiscal year 2014 included pre-tax distributions of $5.0 million related to two class action lawsuits in which Kimball was a class member. The lawsuits alleged that certain suppliers of the Electronic Manufacturing Services (EMS) segment conspired over a number of years to raise and fix the prices of electronic components, resulting in overcharges to purchasers of those components. | ||||||||
Non-operating Income (Expense), net: | ||||||||
The non-operating income (expense), net line item includes the impact of such items as foreign currency rate movements and related derivative gain or loss, fair value adjustments on Supplemental Employee Retirement Plan (SERP) investments, investment gain or loss, non-production rent income, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain on SERP investments is exactly offset by a change in the SERP liability that is recognized in selling and administrative expenses. | ||||||||
Components of Non-operating income (expense), net: | ||||||||
Three Months Ended | ||||||||
September 30 | ||||||||
(Amounts in Thousands) | 2013 | 2012 | ||||||
Foreign Currency/Derivative Gain (Loss) | $ | 118 | $ | (393 | ) | |||
Gain on Supplemental Employee Retirement Plan Investments | 1,051 | 703 | ||||||
Other | (211 | ) | (126 | ) | ||||
Non-operating income (expense), net | $ | 958 | $ | 184 | ||||
Income Taxes: | ||||||||
In determining the quarterly provision for income taxes, Kimball uses an estimated annual effective tax rate which is based on expected annual income, statutory tax rates, and available tax planning opportunities in the various jurisdictions in which we operate. Unusual or infrequently occurring items are separately recognized in the quarter in which they occur. | ||||||||
Our effective tax rate was 28.0% for the three months ended September 30, 2013, as compared to 31.0% for the three months ended September 30, 2012. The effective tax rate for the three months ended September 30, 2013 was favorably impacted by a $0.5 million adjustment to a deferred tax asset valuation allowance. | ||||||||
In September 2013, the United States Treasury Department and the Internal Revenue Service (IRS) issued final regulations effective for our first quarter of fiscal year 2015, that provide guidance on a number of matters with regard to tangible property, including whether expenditures qualify as deductible repairs, the treatment of materials and supplies, capitalization of tangible property, dispositions of property, and related elections. We are currently reviewing the regulations, but we do not expect them to have a material effect on our consolidated financial statements when they are fully adopted. Future transitional guidance in the form of revenue procedures issued by the IRS, and the finalization of other proposed regulations, could impact our current estimates. | ||||||||
New Accounting Standards: | ||||||||
In July 2013, the Financial Accounting Standards Board (FASB) issued guidance to eliminate the diversity in practice related to the financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The guidance is effective prospectively for our first quarter fiscal year 2015 financial statements. We are currently evaluating this guidance, but we do not expect it to have a material effect on our consolidated financial statements. | ||||||||
In February 2013, the FASB issued guidance on the presentation of comprehensive income. This guidance requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amendments became effective prospectively for our first quarter fiscal year 2014 financial statements. As this guidance only impacted how comprehensive income is disclosed, the adoption did not impact our consolidated financial position, results of operations, or cash flows. |
Note_2_Inventories
Note 2. Inventories | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventories [Abstract] | ' | |||||||
Inventory Disclosure | ' | |||||||
Inventories | ||||||||
Inventory components were as follows: | ||||||||
(Amounts in Thousands) | September 30, 2013 | June 30, | ||||||
2013 | ||||||||
Finished products | $ | 31,719 | $ | 33,956 | ||||
Work-in-process | 12,233 | 12,746 | ||||||
Raw materials | 98,242 | 90,167 | ||||||
Total FIFO inventory | $ | 142,194 | $ | 136,869 | ||||
LIFO reserve | (13,417 | ) | (12,871 | ) | ||||
Total inventory | $ | 128,777 | $ | 123,998 | ||||
For interim reporting, LIFO inventories are computed based on quantities as of the end of the quarter and interim changes in price levels. Changes in quantities and price levels are reflected in the interim financial statements in the period in which they occur, except in cases where LIFO inventory liquidations are expected to be reinstated by fiscal year end. The earnings impact of LIFO inventory liquidations during the three-month period ended September 30, 2013 was immaterial. During the three-month period ended September 30, 2012, there were no LIFO inventory liquidations. |
Note_3_Segment_Information
Note 3. Segment Information | 3 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Segment Information [Abstract] | ' | |||||||||
Segment Reporting Disclosure | ' | |||||||||
Segment Information | ||||||||||
Management organizes Kimball into segments based upon differences in products and services offered in each segment. The EMS segment provides engineering and manufacturing services which utilize common production and support capabilities to a variety of industries globally. The EMS segment focuses on electronic assemblies that have high durability requirements and are sold on a contract basis and produced to customers' specifications. The EMS segment currently sells primarily to customers in the automotive, medical, industrial, and public safety industries. The Furniture segment provides furniture for the office and hospitality industries, sold under the Company's family of brand names. Each segment's product line offerings consist of similar products and services sold within various industries. Intersegment sales were insignificant. | ||||||||||
Unallocated corporate assets include cash and cash equivalents, investments, and other assets not allocated to segments. Unallocated corporate net income consists of income not allocated to segments for purposes of evaluating segment performance and includes income from corporate investments and other non-operational items. The basis of segmentation and accounting policies of the segments are consistent with those disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013. | ||||||||||
Three Months Ended | ||||||||||
September 30 | ||||||||||
(Amounts in Thousands) | 2013 | 2012 | ||||||||
Net Sales: | ||||||||||
Electronic Manufacturing Services | $ | 175,636 | $ | 164,175 | ||||||
Furniture | 141,803 | 124,015 | ||||||||
Consolidated | $ | 317,439 | $ | 288,190 | ||||||
Net Income (Loss): | ||||||||||
Electronic Manufacturing Services | $ | 7,462 | $ | 3,283 | ||||||
Furniture | 2,899 | 1,668 | ||||||||
Unallocated Corporate and Eliminations | (1,178 | ) | 10 | |||||||
Consolidated | $ | 9,183 | -1 | $ | 4,961 | -2 | ||||
-1 | Net Income (Loss) included after-tax restructuring charges, in thousands, of $242 in the three months ended September 30, 2013. In the three months ended September 30, 2013, the EMS segment recorded, in thousands, $44 of after-tax restructuring charges and Unallocated Corporate and Eliminations recorded, in thousands, $198 of after-tax restructuring charges. See Note 6 - Restructuring Expense of Notes to Condensed Consolidated Financial Statements for further discussion. Additionally, the EMS segment recorded in the three months ended September 30, 2013, $3.0 million of after-tax income related to two class action lawsuits in which Kimball was a class member. Also during the three months ended September 30, 2013, we recorded within Unallocated Corporate and Eliminations, in thousands, $720 of after-tax impairment charges for an aircraft that was classified as held for sale during the quarter. | |||||||||
-2 | Net Income (Loss) included an immaterial amount of restructuring charges in the three months ended September 30, 2012. See Note 6 - Restructuring Expense of Notes to Condensed Consolidated Financial Statements for further discussion. | |||||||||
(Amounts in Thousands) | September 30, | June 30, | ||||||||
2013 | 2013 | |||||||||
Total Assets: | ||||||||||
Electronic Manufacturing Services | $ | 357,673 | $ | 353,425 | ||||||
Furniture | 187,461 | 185,925 | ||||||||
Unallocated Corporate and Eliminations | 112,359 | 105,169 | ||||||||
Consolidated | $ | 657,493 | $ | 644,519 | ||||||
Note_4_Accumulated_Other_Compr
Note 4. Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | |||||||||||||||||||
Accumulated Comprehensive Income (Loss) | ' | |||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
During the three months ended September 30, 2013, the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, were as follows: | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Postemployment Benefits | |||||||||||||||||||
(Amounts in Thousands) | Foreign Currency Translation Adjustments | Derivative Gain (Loss) | Prior Service Costs | Net Actuarial Gain (Loss) | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
Balance at June 30, 2013 | $ | 855 | $ | (4,359 | ) | $ | (292 | ) | $ | 319 | $ | (3,477 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 2,928 | (390 | ) | — | 272 | 2,810 | ||||||||||||||
Reclassification to (earnings) loss | — | 299 | 43 | 54 | 396 | |||||||||||||||
Net current-period other comprehensive income (loss) | 2,928 | (91 | ) | 43 | 326 | 3,206 | ||||||||||||||
Balance at September 30, 2013 | $ | 3,783 | $ | (4,450 | ) | $ | (249 | ) | $ | 645 | $ | (271 | ) | |||||||
The following reclassifications were made from accumulated other comprehensive income (loss) to the Condensed Consolidated Statements of Income: | ||||||||||||||||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss) | Three Months Ended | Affected Line Item in the Condensed Consolidated Statements of Income | ||||||||||||||||||
September 30 | ||||||||||||||||||||
(Amounts in Thousands) | 2013 | |||||||||||||||||||
Derivative Gain (Loss) (1) | $ | (171 | ) | Cost of Sales | ||||||||||||||||
(179 | ) | Non-operating income (expense), net | ||||||||||||||||||
51 | Benefit (Provision) for Income Taxes | |||||||||||||||||||
$ | (299 | ) | Net of Tax | |||||||||||||||||
Postemployment Benefits: | ||||||||||||||||||||
Amortization of Prior Service Costs (2) | $ | (49 | ) | Cost of Sales | ||||||||||||||||
(22 | ) | Selling and Administrative Expenses | ||||||||||||||||||
28 | Benefit (Provision) for Income Taxes | |||||||||||||||||||
$ | (43 | ) | Net of Tax | |||||||||||||||||
Amortization of Actuarial Gain (Loss) (2) | $ | (62 | ) | Cost of Sales | ||||||||||||||||
(28 | ) | Selling and Administrative Expenses | ||||||||||||||||||
36 | Benefit (Provision) for Income Taxes | |||||||||||||||||||
$ | (54 | ) | Net of Tax | |||||||||||||||||
Total Reclassifications for the Period | $ | (396 | ) | Net of Tax | ||||||||||||||||
Amounts in parentheses indicate reductions to income. | ||||||||||||||||||||
(1) See Note 8 - Derivative Instruments of Notes to Condensed Consolidated Financial Statements for further information on derivative instruments. | ||||||||||||||||||||
(2) See Note 11 - Postemployment Benefits of Notes to Condensed Consolidated Financial Statements for further information on postemployment benefit plans. |
Note_5_Commitments_and_Conting
Note 5. Commitments and Contingent Liabilities | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingent Liabilities [Abstract] | ' | |||||||
Commitments and Contingencies Disclosure | ' | |||||||
Commitments and Contingent Liabilities | ||||||||
Standby letters of credit are issued to third-party suppliers, lessors, and insurance and financial institutions and can only be drawn upon in the event of Kimball's failure to pay its obligations to a beneficiary. As of September 30, 2013, we had a maximum financial exposure from unused standby letters of credit totaling $3.8 million. We are not aware of circumstances that would require us to perform under any of these arrangements and believe that the resolution of any claims that might arise in the future, either individually or in the aggregate, would not materially affect our consolidated financial statements. Accordingly, no liability has been recorded as of September 30, 2013 with respect to the standby letters of credit. Kimball also enters into commercial letters of credit to facilitate payments to vendors and from customers. | ||||||||
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 in cases where specific warranty issues become known. | ||||||||
Changes in the product warranty accrual for the three months ended September 30, 2013 and 2012 were as follows: | ||||||||
Three Months Ended | ||||||||
September 30 | ||||||||
(Amounts in Thousands) | 2013 | 2012 | ||||||
Product Warranty Liability at the beginning of the period | $ | 2,384 | $ | 2,251 | ||||
Additions to warranty accrual (including changes in estimates) | 900 | 432 | ||||||
Settlements made (in cash or in kind) | (434 | ) | (252 | ) | ||||
Product Warranty Liability at the end of the period | $ | 2,850 | $ | 2,431 | ||||
Note_6_Restructuring_Expense
Note 6. Restructuring Expense | 3 Months Ended |
Sep. 30, 2013 | |
Restructuring Expense [Abstract] | ' |
Restructuring and Related Activities Disclosure | ' |
Restructuring Expense | |
We recognized $0.4 million of pre-tax restructuring charges in the first quarter of fiscal year 2014 primarily related to the sale of a facility and land located in Gaylord, Michigan, which resulted in a $0.3 million pre-tax loss. The remaining charges were related to miscellaneous exit costs from the EMS Fremont and EMS European Consolidation plans. The lease of the EMS Fremont facility expired in August 2013. During the first quarter of fiscal year 2013, we recognized $0.1 million of pre-tax restructuring charges primarily related to EMS Fremont and Gaylord miscellaneous plant closure charges. All restructuring activities related to previously announced restructuring plans are complete. | |
Restructuring charges are included in the Restructuring Expense line item of our Condensed Consolidated Statements of Income. | |
There was no accrued restructuring at September 30, 2013. At June 30, 2013 there was an immaterial amount of accrued restructuring recorded in current liabilities, which was related to the remaining lease payments due for the EMS Fremont facility. | |
For more information on these restructuring plans, refer to our Annual Report on Form 10-K for the fiscal year ended June 30, 2013. |
Note_7_Fair_Value
Note 7. Fair Value | 3 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value [Abstract] | ' | |||||||||||||||
Fair Value Disclosures | ' | |||||||||||||||
Fair Value | ||||||||||||||||
Kimball categorizes assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas level 3 generally requires significant management judgment. The three levels are defined as follows: | ||||||||||||||||
• | Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. | |||||||||||||||
• | Level 2: Observable inputs other than those included in level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. | |||||||||||||||
• | Level 3: Unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability. | |||||||||||||||
Our policy is to recognize transfers between these levels as of the end of each quarterly reporting period. There were no transfers between these levels during the three months ended September 30, 2013. There were also no changes in the inputs or valuation techniques used to measure fair values compared to those disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013. | ||||||||||||||||
Financial Instruments Recognized at Fair Value: | ||||||||||||||||
The following methods and assumptions were used to measure fair value: | ||||||||||||||||
Financial Instrument | Level | Valuation Technique/Inputs Used | ||||||||||||||
Cash Equivalents | 1 | Market - Quoted market prices | ||||||||||||||
Derivative Assets: Foreign exchange contracts | 2 | Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates, considering counterparty credit risk. | ||||||||||||||
Derivative Assets: Stock warrants | 3 | Market - Based on a probability-weighted Black-Scholes option pricing model with the following inputs (level 3 input values indicated in parenthesis): risk-free interest rate (0.09%), historical stock price volatility (98.5%) and weighted average expected term (6 months). Enterprise value was estimated using a discounted cash flow calculation. | ||||||||||||||
Stock warrants are revalued and analyzed for reasonableness on a quarterly basis. The level 3 inputs used are the standard inputs used in the Black-Scholes model. Input values are based on publicly available information (Federal Reserve interest rates) and internally-developed information (historical stock price volatility of comparable investments) and remaining expected term of warrants. | ||||||||||||||||
Significant increases (decreases) in the historical stock price volatility, expected life, and enterprise value in isolation would result in a significantly higher (lower) fair value measurement. The inputs do not have any interrelationships. | ||||||||||||||||
Trading securities: Mutual funds held by nonqualified supplemental employee retirement plan | 1 | Market - Quoted market prices | ||||||||||||||
Derivative Liabilities: Foreign exchange contracts | 2 | Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates adjusted for Kimball's non-performance risk. | ||||||||||||||
Recurring Fair Value Measurements: | ||||||||||||||||
As of September 30, 2013 and June 30, 2013, the fair values of financial assets and liabilities that are measured at fair value on a recurring basis using the market approach are categorized as follows: | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
(Amounts in Thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 90,723 | $ | — | $ | — | $ | 90,723 | ||||||||
Derivatives: Foreign exchange contracts | — | 145 | — | 145 | ||||||||||||
Derivatives: Stock warrants | — | — | 29 | 29 | ||||||||||||
Trading Securities: Mutual funds held by nonqualified supplemental employee retirement plan | 20,422 | — | — | 20,422 | ||||||||||||
Total assets at fair value | $ | 111,145 | $ | 145 | $ | 29 | $ | 111,319 | ||||||||
Liabilities | ||||||||||||||||
Derivatives: Foreign exchange contracts | $ | — | $ | 1,637 | $ | — | $ | 1,637 | ||||||||
Total liabilities at fair value | $ | — | $ | 1,637 | $ | — | $ | 1,637 | ||||||||
June 30, 2013 | ||||||||||||||||
(Amounts in Thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 83,516 | $ | — | $ | — | $ | 83,516 | ||||||||
Derivatives: Foreign exchange contracts | — | 273 | — | 273 | ||||||||||||
Derivatives: Stock warrants | — | — | 25 | 25 | ||||||||||||
Trading Securities: Mutual funds held by nonqualified supplemental employee retirement plan | 19,600 | — | — | 19,600 | ||||||||||||
Total assets at fair value | $ | 103,116 | $ | 273 | $ | 25 | $ | 103,414 | ||||||||
Liabilities | ||||||||||||||||
Derivatives: Foreign exchange contracts | $ | — | $ | 1,662 | $ | — | $ | 1,662 | ||||||||
Total liabilities at fair value | $ | — | $ | 1,662 | $ | — | $ | 1,662 | ||||||||
The changes in fair value of Level 3 investment assets during the three months ended September 30, 2013 and 2012 were immaterial, and no purchases or sales of Level 3 assets occurred during the periods. | ||||||||||||||||
The nonqualified supplemental employee retirement plan (SERP) assets consist primarily of equity funds, balanced funds, a bond fund, and a money market fund. The SERP investment assets are exactly offset by a SERP liability which represents Kimball's obligation to distribute SERP funds to participants. See Note 9 - 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 long-lived assets (property & equipment) | 3 | Market - Estimated potential net selling price. | ||||||||||||||
During the three months ended September 30, 2013, we classified an aircraft as held for sale and accordingly recognized pre-tax impairment of $1.2 million due to a significant downward shift in the market for private aviation aircraft. | ||||||||||||||||
Financial Instruments Not Carried At Fair Value: | ||||||||||||||||
Financial instruments that are not reflected in the Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: | ||||||||||||||||
Financial Instrument | Level | Valuation Technique/Inputs Used | ||||||||||||||
Notes receivable | 2 | Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer's non-performance risk | ||||||||||||||
Non-marketable equity securities (cost-method investments, which carry shares at cost except in the event of impairment) | 3 | Cost Method, with Impairment Recognized Using a Market-Based Valuation Technique - See the explanation below the table regarding the method used to periodically estimate the fair value of cost-method investments. | ||||||||||||||
Long-term debt (carried at amortized cost) | 3 | Income - Price estimated using a discounted cash flow analysis based on quoted long-term debt market rates, taking into account Kimball's non-performance risk | ||||||||||||||
Investments in non-marketable equity securities are accounted for using the cost method if Kimball does not have the ability to exercise significant influence over the operating and financial policies of the investee. On a periodic basis, but no less frequently than quarterly, these investments are assessed for impairment when there are events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. If a significant adverse effect on the fair value of the investment has occurred and is deemed to be other-than-temporary, the fair value of the investment is estimated, and the amount by which the carrying value of the cost-method investment exceeds its fair value is recorded as an impairment loss. | ||||||||||||||||
The carrying value of our short-term financial instruments, including cash deposit accounts, trade accounts receivable, prepaid and deposit accounts, trade accounts payable, accrued expenses and dividends payable, approximate fair value due to the relatively short maturity and immaterial non-performance risk of such instruments. These financial instruments are categorized as Level 2 financial instruments. |
Note_8_Derivative_Instruments
Note 8. Derivative Instruments | 3 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Derivative Instruments [Abstract] | ' | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure | ' | |||||||||||||||||||
Derivative Instruments | ||||||||||||||||||||
Foreign Exchange Contracts: | ||||||||||||||||||||
We operate internationally and are therefore exposed to foreign currency exchange rate fluctuations in the normal course of business. Our primary means of managing this exposure is to utilize natural hedges, such as aligning currencies used in the supply chain with the sale currency. To the extent natural hedging techniques do not fully offset currency risk, we use derivative instruments with the objective of reducing the residual exposure to certain foreign currency rate movements. Factors considered in the decision to hedge an underlying market exposure include the materiality of the risk, the volatility of the market, the duration of the hedge, the degree to which the underlying exposure is committed to, and the availability, effectiveness, and cost of derivative instruments. Derivative instruments are only utilized for risk management purposes and are not used for speculative or trading purposes. | ||||||||||||||||||||
We use forward contracts designated as cash flow hedges to protect against foreign currency exchange rate risks inherent in forecasted transactions denominated in a foreign currency. Foreign exchange contracts are also used to hedge against foreign currency exchange rate risks related to intercompany balances denominated in currencies other than the functional currencies. As of September 30, 2013, we had outstanding foreign exchange contracts to hedge currencies against the U.S. dollar in the aggregate notional amount of $26.3 million and to hedge currencies against the Euro in the aggregate notional amount of 43.9 million EUR. The notional amounts are indicators of the volume of derivative activities but are not indicators of the potential gain or loss on the derivatives. | ||||||||||||||||||||
In limited cases due to unexpected changes in forecasted transactions, cash flow hedges may cease to meet the criteria to be designated as cash flow hedges. Depending on the type of exposure hedged, we may either purchase a derivative contract in the opposite position of the undesignated hedge or may retain the hedge until it matures if the hedge continues to provide an adequate offset in earnings against the currency revaluation impact of foreign currency denominated liabilities. | ||||||||||||||||||||
The fair value of outstanding derivative instruments is recognized on the balance sheet as a derivative asset or liability. When derivatives are settled with the counterparty, the derivative asset or liability is relieved and cash flow is impacted for the net settlement. For derivative instruments that meet the criteria of hedging instruments under FASB guidance, the effective portions of the gain or loss on the derivative instrument are initially recorded net of related tax effect in Accumulated Other Comprehensive Loss, a component of Share Owners' Equity, and are subsequently reclassified into earnings in the period or periods during which the hedged transaction is recognized in earnings. The ineffective portion of the derivative gain or loss is reported in the Non-operating income (expense), net line item on the Condensed Consolidated Statements of Income immediately. The gain or loss associated with derivative instruments that are not designated as hedging instruments or that cease to meet the criteria for hedging under FASB guidance is also reported in the Non-operating income (expense), net line item on the Condensed Consolidated Statements of Income immediately. | ||||||||||||||||||||
Based on fair values as of September 30, 2013, we estimate that $1.1 million of pre-tax derivative losses deferred in Accumulated Other Comprehensive Loss will be reclassified into earnings, along with the earnings effects of related forecasted transactions, within the next 12 months. Losses on foreign exchange contracts are generally offset by gains in operating income in the income statement when the underlying hedged transaction is recognized in earnings. Because gains or losses on foreign exchange contracts fluctuate partially based on currency spot rates, the future effect on earnings of the cash flow hedges alone is not determinable, but in conjunction with the underlying hedged transactions, the result is expected to be a decline in currency risk. The maximum length of time we had hedged our exposure to the variability in future cash flows was 12 months as of both September 30, 2013 and June 30, 2013. | ||||||||||||||||||||
Stock Warrants: | ||||||||||||||||||||
Kimball holds common stock warrants which provide the right to purchase a privately-held company's equity securities at a specified exercise price. The value of the stock warrants fluctuates 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. The stock warrants expire in June 2017. Gains and losses on the revaluation of stock warrants are recognized in the Non-operating income (expense), net line item on the Condensed Consolidated Statements of Income. | ||||||||||||||||||||
See Note 7 - Fair Value of Notes to Condensed Consolidated Financial Statements for further information regarding the fair value of derivative assets and liabilities and the Condensed Consolidated Statements of Comprehensive Income for the changes in deferred derivative gains and losses. Information on the location and amounts of derivative fair values in the Condensed Consolidated Balance Sheets and derivative gains and losses in the Condensed Consolidated Statements of Income are presented below. | ||||||||||||||||||||
Fair Value of Derivative Instruments on the Condensed Consolidated Balance Sheets | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Fair Value As of | Fair Value As of | |||||||||||||||||||
(Amounts in Thousands) | Balance Sheet Location | September 30, | June 30, | Balance Sheet Location | September 30, | June 30, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | $ | 145 | $ | 265 | Accrued expenses | $ | 1,178 | $ | 1,097 | ||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | — | 8 | Accrued expenses | 459 | 565 | ||||||||||||||
Stock warrants | Other assets (long-term) | 29 | 25 | |||||||||||||||||
Total derivatives | $ | 174 | $ | 298 | $ | 1,637 | $ | 1,662 | ||||||||||||
The Effect of Derivative Instruments on Other Comprehensive Income (Loss) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
September 30 | ||||||||||||||||||||
(Amounts in Thousands) | 2013 | 2012 | ||||||||||||||||||
Amount of Pre-Tax Gain or (Loss) Recognized in Other Comprehensive Income (Loss) (OCI) on Derivatives (Effective Portion): | ||||||||||||||||||||
Foreign exchange contracts | $ | (505 | ) | $ | 1,401 | |||||||||||||||
The Effect of Derivative Instruments on Condensed Consolidated Statements of Income | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(Amounts in Thousands) | September 30 | |||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Location of Gain or (Loss) | 2013 | 2012 | |||||||||||||||||
Amount of Pre-Tax Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion): | ||||||||||||||||||||
Foreign exchange contracts | Cost of Sales | $ | (171 | ) | $ | 355 | ||||||||||||||
Foreign exchange contracts | Non-operating income (expense) | (179 | ) | (92 | ) | |||||||||||||||
Total | $ | (350 | ) | $ | 263 | |||||||||||||||
Amount of Pre-Tax Gain or (Loss) Reclassified from Accumulated OCI into Income (Ineffective Portion): | ||||||||||||||||||||
Foreign exchange contracts | Non-operating income (expense) | $ | — | $ | (3 | ) | ||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||
Amount of Pre-Tax Gain or (Loss) Recognized in Income on Derivatives: | ||||||||||||||||||||
Foreign exchange contracts | Non-operating income (expense) | $ | (544 | ) | $ | (196 | ) | |||||||||||||
Stock warrants | Non-operating income (expense) | 4 | (1 | ) | ||||||||||||||||
Total | $ | (540 | ) | $ | (197 | ) | ||||||||||||||
Total Derivative Pre-Tax Gain (Loss) Recognized in Income | $ | (890 | ) | $ | 63 | |||||||||||||||
Note_9_Investments
Note 9. Investments | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Investments [Abstract] | ' | |||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | ' | |||||||
Investments | ||||||||
Non-marketable Equity Securities: | ||||||||
Kimball currently holds non-marketable equity securities of a privately-held company. The equity securities were valued at $0.1 million at both September 30, 2013 and June 30, 2013, and are included in the Other Assets line of the Condensed Consolidated Balance Sheets. See Note 7 - Fair Value of Notes to Condensed Consolidated Financial Statements for more information on the valuation of these securities. The investment does not rise to the level of a material variable interest or a controlling interest in the privately-held company which would require consolidation. | ||||||||
Supplemental Employee Retirement Plan Investments: | ||||||||
Kimball maintains a self-directed supplemental employee retirement plan (SERP) for executive employees. The SERP utilizes a rabbi trust, and therefore assets in the SERP portfolio are subject to creditor claims in the event of bankruptcy. Kimball recognizes SERP investment assets on the balance sheet at current fair value. A SERP liability of the same amount is recorded on the balance sheet representing an obligation to distribute SERP funds to participants. The SERP investment assets are classified as trading, and accordingly, realized and unrealized gains and losses are recognized in income in the Other Income (Expense) category. Adjustments made to revalue the SERP liability are also recognized in income as selling and administrative expenses and exactly offset valuation adjustments on SERP investment assets. The change in net unrealized holding gains for the three months ended September 30, 2013 and 2012 was, in thousands, $925, and $635, respectively. SERP asset and liability balances were as follows: | ||||||||
(Amounts in Thousands) | September 30, | June 30, | ||||||
2013 | 2013 | |||||||
SERP investment - current asset | $ | 7,744 | $ | 7,031 | ||||
SERP investment - other long-term asset | 12,678 | 12,569 | ||||||
Total SERP investment | $ | 20,422 | $ | 19,600 | ||||
SERP obligation - current liability | $ | 7,744 | $ | 7,031 | ||||
SERP obligation - other long-term liability | 12,678 | 12,569 | ||||||
Total SERP obligation | $ | 20,422 | $ | 19,600 | ||||
Note_10_Assets_Held_for_Sale
Note 10. Assets Held for Sale | 3 Months Ended |
Sep. 30, 2013 | |
Assets Held for Sale [Abstract] | ' |
Disclosure of Long Lived Assets Held-for-sale | ' |
Assets Held for Sale | |
At September 30, 2013, in thousands, assets totaling $2,646 were classified as held for sale and consisted of $1,121 for an idle Furniture segment manufacturing facility and land located in Jasper, Indiana, and $1,525 for an underutilized aircraft which was reported as an unallocated corporate asset for segment reporting purposes. Due to a reduction in the market value of the aircraft, a pre-tax impairment loss, in thousands, of $1,198 was recorded on the Selling and Administrative Expenses line of the Condensed Consolidated Statements of Income during the first quarter of fiscal year 2014. Also during the first quarter of fiscal year 2014, the Gaylord, Michigan EMS segment facility and land was sold and a pre-tax loss on the sale was recognized, in thousands, of $311 which was included in the Restructuring Expense line of the Condensed Consolidated Statements of Income. The loss on the Gaylord, Michigan facility and land was reported in unallocated corporate for segment reporting purposes. | |
At June 30, 2013, in thousands, assets totaling $1,521 were classified as held for sale and consisted of $400 for the facility and land related to the Gaylord, Michigan exited operation and $1,121 for the idle Furniture segment manufacturing facility and land located in Jasper, Indiana. The Gaylord, Michigan facility and land were reported as unallocated corporate assets for segment reporting purposes. |
Note_11_Postemployment_Benefit
Note 11. Postemployment Benefits | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Postemployment Benefits [Abstract] | ' | |||||||
Postemployment Benefits Disclosure | ' | |||||||
Postemployment Benefits | ||||||||
Kimball maintains severance plans for all domestic employees. These plans provide severance benefits to eligible employees meeting the plans' qualifications, primarily involuntary termination without cause. The components of net periodic postemployment benefit cost applicable to our severance plans were as follows: | ||||||||
Three Months Ended | ||||||||
September 30 | ||||||||
(Amounts in Thousands) | 2013 | 2012 | ||||||
Service cost | $ | 237 | $ | 200 | ||||
Interest cost | 34 | 50 | ||||||
Amortization of prior service costs | 71 | 71 | ||||||
Amortization of actuarial loss | 90 | 92 | ||||||
Net periodic benefit cost | $ | 432 | $ | 413 | ||||
The benefit cost in the above table includes only normal recurring levels of severance activity, as estimated using an actuarial method. Unusual or non-recurring severance actions are not estimable using actuarial methods and are expensed in accordance with the applicable U.S. GAAP. |
Note_12_Stock_Compensation_Pla
Note 12. Stock Compensation Plan | 3 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Stock Compensation Plan [Abstract] | ' | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments | ' | |||||||||
Stock Compensation Plan | ||||||||||
During fiscal year 2014, the following stock compensation was awarded to officers and key employees. All awards were granted under the 2003 Stock Option and Incentive Plan. For more information on similar performance share awards, refer to our Annual Report on Form 10-K for the fiscal year ended June 30, 2013. | ||||||||||
Performance Shares | Quarter Awarded | Shares | Grant Date Fair Value (4) | |||||||
Annual Performance Shares – Class A (1) | 1st Quarter | 229,500 | $11.05 | |||||||
Long-Term Performance Shares – Class A (2) | 1st Quarter | 405,500 | $11.05 | |||||||
Unrestricted Shares | Quarter Awarded | Shares | Grant Date Fair Value (4) | |||||||
Unrestricted Shares (Director Compensation) – Class B (3) | 1st Quarter | 15,017 | $10.09 | |||||||
Unrestricted Shares – Class B (3) | 1st Quarter | 1,000 | $10.01 | |||||||
-1 | Annual performance shares were awarded to officers. Payouts will be based upon the fiscal year 2014 cash incentive payout percentages calculated under Kimball's Profit Sharing Incentive Bonus Plan. The number of shares issued will be less than the maximum potential shares issuable if the maximum cash incentive payout percentages are not achieved. Annual performance shares vest after one year. | |||||||||
-2 | Long-term performance shares were awarded to officers and other key employees. Payouts will be based upon the cash incentive payout percentages calculated under Kimball's Profit Sharing Incentive Bonus Plan. Long-term performance shares are based on five successive annual performance measurement periods, with each annual tranche having a grant date when economic profit tiers are established at the beginning of the applicable fiscal year and a vesting date at the end of each annual period. The number of shares issued will be less than the maximum potential shares issuable if the target cash incentive payout percentages are not achieved. | |||||||||
-3 | Unrestricted shares were awarded to non-employee members of the Board of Directors as compensation for director's fees as a result of directors' elections to receive unrestricted shares in lieu of cash payment. Director's fees are expensed over the period that directors earn the compensation. Other unrestricted shares were awarded to a key employee as consideration for service to the Company. Unrestricted shares do not have vesting periods, holding periods, restrictions on sale, or other restrictions. | |||||||||
-4 | The grant date fair value of performance shares is based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding performance share awards. The grant date fair value shown for long-term performance shares is applicable to the first tranche only. The grant date fair value of the unrestricted shares was based on the stock price at the date of the award. |
Note_13_Variable_Interest_Enti
Note 13. Variable Interest Entities | 3 Months Ended |
Sep. 30, 2013 | |
Variable Interest Entities [Abstract] | ' |
Variable Interest Entities | ' |
Variable Interest Entities | |
Kimball's 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. | |
We are involved with VIEs consisting of an investment in common stock and stock warrants of a privately-held company, a note receivable related to the sale of an Indiana facility, and notes receivable resulting from loans provided to an electronics engineering services firm. Kimball also has a business development cooperation agreement with the electronic engineering services firm. For information related to our investment in the privately-held company, see Note 9 - Investments and Note 8 - Derivative Instruments of Notes to Condensed Consolidated Financial Statements. The combined carrying value of the notes receivable, net of a $0.3 million allowance, was $1.5 million as of September 30, 2013. As of June 30, 2013, the combined carrying value of the notes receivable was $1.5 million, net of a $0.4 million allowance. For both periods, the combined carrying value was included on the Receivables line of our Condensed Consolidated Balance Sheet as the entire balance is classified as short-term. | |
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 investments and notes receivable. Kimball did not provide additional financial support to the VIEs during the quarter ended September 30, 2013. |
Note_14_Credit_Quality_and_All
Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable | 3 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Credit Quality and Allowance for Credit Losses of Notes Receivable [Abstract] | ' | |||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure | ' | |||||||||||||||||||||||
Credit Quality and Allowance for Credit Losses of Notes Receivable | ||||||||||||||||||||||||
Kimball monitors credit quality and associated risks of notes receivable on an individual basis based on criteria such as financial stability of the party and collection experience in conjunction with general economic and market conditions. The allowance on the notes receivable from an electronics engineering services firm was reduced as payments were received during the first quarter of fiscal year 2014. We hold collateral for the note receivable from the sale of an Indiana facility thereby mitigating the risk of loss. As of September 30, 2013 and June 30, 2013, Kimball had no material past due outstanding notes receivable. | ||||||||||||||||||||||||
As of September 30, 2013 | As of June 30, 2013 | |||||||||||||||||||||||
(Amounts in Thousands) | Unpaid Balance | Related Allowance | Receivable Net of Allowance | Unpaid Balance | Related Allowance | Receivable Net of Allowance | ||||||||||||||||||
Note Receivable from Sale of Indiana Facility | $ | 1,409 | $ | — | $ | 1,409 | $ | 1,413 | $ | — | $ | 1,413 | ||||||||||||
Notes Receivable from an Electronics Engineering Services Firm | 338 | 273 | 65 | 521 | 440 | 81 | ||||||||||||||||||
Other Notes Receivable | 76 | 28 | 48 | 127 | 85 | 42 | ||||||||||||||||||
Total | $ | 1,823 | $ | 301 | $ | 1,522 | $ | 2,061 | $ | 525 | $ | 1,536 | ||||||||||||
Note_1_Summary_of_Significant_1
Note 1. Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Summary of Significant Accounting Policies [Abstract] | ' | |||||||
Basis of Presentation | ' | |||||||
Basis of Presentation: | ||||||||
The accompanying unaudited Condensed Consolidated Financial Statements of Kimball International, Inc. (the "Company," "Kimball," "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. All significant 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. | ||||||||
Notes Receivable and Trade Accounts Receivable | ' | |||||||
Notes Receivable and Trade Accounts Receivable: | ||||||||
Kimball's notes receivable and trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. We determine on a case-by-case basis the cessation of accruing interest, the resumption of accruing interest, the method of recording payments received on nonaccrual receivables, and the delinquency status for our limited number of notes receivable. | ||||||||
Our policy for estimating the allowance for credit losses on trade accounts receivable and notes receivable includes analysis of such items as agement, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to determine the final allowance for credit losses on the trade accounts receivable and notes receivable. Trade accounts receivable and notes receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Our limited number 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. | ||||||||
Other General Income | ' | |||||||
Other General Income: | ||||||||
Other General Income in fiscal year 2014 included pre-tax distributions of $5.0 million related to two class action lawsuits in which Kimball was a class member. The lawsuits alleged that certain suppliers of the Electronic Manufacturing Services (EMS) segment conspired over a number of years to raise and fix the prices of electronic components, resulting in overcharges to purchasers of those components. | ||||||||
Non-operating Income (Expense), net | ' | |||||||
Non-operating Income (Expense), net: | ||||||||
The non-operating income (expense), net line item includes the impact of such items as foreign currency rate movements and related derivative gain or loss, fair value adjustments on Supplemental Employee Retirement Plan (SERP) investments, investment gain or loss, non-production rent income, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain on SERP investments is exactly offset by a change in the SERP liability that is recognized in selling and administrative expenses. | ||||||||
Components of Non-operating income (expense), net: | ||||||||
Three Months Ended | ||||||||
September 30 | ||||||||
(Amounts in Thousands) | 2013 | 2012 | ||||||
Foreign Currency/Derivative Gain (Loss) | $ | 118 | $ | (393 | ) | |||
Gain on Supplemental Employee Retirement Plan Investments | 1,051 | 703 | ||||||
Other | (211 | ) | (126 | ) | ||||
Non-operating income (expense), net | $ | 958 | $ | 184 | ||||
Income Taxes | ' | |||||||
Income Taxes: | ||||||||
In determining the quarterly provision for income taxes, Kimball uses an estimated annual effective tax rate which is based on expected annual income, statutory tax rates, and available tax planning opportunities in the various jurisdictions in which we operate. Unusual or infrequently occurring items are separately recognized in the quarter in which they occur. | ||||||||
Our effective tax rate was 28.0% for the three months ended September 30, 2013, as compared to 31.0% for the three months ended September 30, 2012. The effective tax rate for the three months ended September 30, 2013 was favorably impacted by a $0.5 million adjustment to a deferred tax asset valuation allowance. | ||||||||
In September 2013, the United States Treasury Department and the Internal Revenue Service (IRS) issued final regulations effective for our first quarter of fiscal year 2015, that provide guidance on a number of matters with regard to tangible property, including whether expenditures qualify as deductible repairs, the treatment of materials and supplies, capitalization of tangible property, dispositions of property, and related elections. We are currently reviewing the regulations, but we do not expect them to have a material effect on our consolidated financial statements when they are fully adopted. Future transitional guidance in the form of revenue procedures issued by the IRS, and the finalization of other proposed regulations, could impact our current estimates. | ||||||||
New Accounting Standards | ' | |||||||
New Accounting Standards: | ||||||||
In July 2013, the Financial Accounting Standards Board (FASB) issued guidance to eliminate the diversity in practice related to the financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The guidance is effective prospectively for our first quarter fiscal year 2015 financial statements. We are currently evaluating this guidance, but we do not expect it to have a material effect on our consolidated financial statements. | ||||||||
In February 2013, the FASB issued guidance on the presentation of comprehensive income. This guidance requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amendments became effective prospectively for our first quarter fiscal year 2014 financial statements. As this guidance only impacted how comprehensive income is disclosed, the adoption did not impact our consolidated financial position, results of operations, or cash flows. |
Note_2_Inventories_Policies
Note 2. Inventories (Policies) | 3 Months Ended |
Sep. 30, 2013 | |
Inventories [Abstract] | ' |
Inventory | ' |
For interim reporting, LIFO inventories are computed based on quantities as of the end of the quarter and interim changes in price levels. Changes in quantities and price levels are reflected in the interim financial statements in the period in which they occur, except in cases where LIFO inventory liquidations are expected to be reinstated by fiscal year end. |
Note_5_Commitments_and_Conting1
Note 5. Commitments and Contingent Liabilities (Policies) | 3 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingent Liabilities [Abstract] | ' |
Product Warranties | ' |
We estimate product warranty liability at the time of sale based on historical repair or replacement cost trends in conjunction with the length of the warranty offered. Management refines the warranty liability in cases where specific warranty issues become known. |
Note_7_Fair_Value_Policies
Note 7. Fair Value (Policies) | 3 Months Ended | ||||
Sep. 30, 2013 | |||||
Fair Value [Abstract] | ' | ||||
Fair Value | ' | ||||
Kimball categorizes assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas level 3 generally requires significant management judgment. The three levels are defined as follows: | |||||
• | Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. | ||||
• | Level 2: Observable inputs other than those included in level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. | ||||
• | Level 3: Unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability. | ||||
Our policy is to recognize transfers between these levels as of the end of each quarterly reporting period. There were no transfers between these levels during the three months ended September 30, 2013. There were also no changes in the inputs or valuation techniques used to measure fair values compared to those disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013. | |||||
Financial Instruments Recognized at Fair Value: | |||||
The following methods and assumptions were used to measure fair value: | |||||
Financial Instrument | Level | Valuation Technique/Inputs Used | |||
Cash Equivalents | 1 | Market - Quoted market prices | |||
Derivative Assets: Foreign exchange contracts | 2 | Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates, considering counterparty credit risk. | |||
Derivative Assets: Stock warrants | 3 | Market - Based on a probability-weighted Black-Scholes option pricing model with the following inputs (level 3 input values indicated in parenthesis): risk-free interest rate (0.09%), historical stock price volatility (98.5%) and weighted average expected term (6 months). Enterprise value was estimated using a discounted cash flow calculation. | |||
Stock warrants are revalued and analyzed for reasonableness on a quarterly basis. The level 3 inputs used are the standard inputs used in the Black-Scholes model. Input values are based on publicly available information (Federal Reserve interest rates) and internally-developed information (historical stock price volatility of comparable investments) and remaining expected term of warrants. | |||||
Significant increases (decreases) in the historical stock price volatility, expected life, and enterprise value in isolation would result in a significantly higher (lower) fair value measurement. The inputs do not have any interrelationships. | |||||
Trading securities: Mutual funds held by nonqualified supplemental employee retirement plan | 1 | Market - Quoted market prices | |||
Derivative Liabilities: Foreign exchange contracts | 2 | Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates adjusted for Kimball's non-performance risk. | |||
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy | ' | ||||
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 long-lived assets (property & equipment) | 3 | Market - Estimated potential net selling price. | |||
Fair Value of Financial Instruments Not Carried at Fair Value | ' | ||||
Financial Instruments Not Carried At Fair Value: | |||||
Financial instruments that are not reflected in the Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: | |||||
Financial Instrument | Level | Valuation Technique/Inputs Used | |||
Notes receivable | 2 | Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer's non-performance risk | |||
Non-marketable equity securities (cost-method investments, which carry shares at cost except in the event of impairment) | 3 | Cost Method, with Impairment Recognized Using a Market-Based Valuation Technique - See the explanation below the table regarding the method used to periodically estimate the fair value of cost-method investments. | |||
Long-term debt (carried at amortized cost) | 3 | Income - Price estimated using a discounted cash flow analysis based on quoted long-term debt market rates, taking into account Kimball's non-performance risk | |||
Investments in non-marketable equity securities are accounted for using the cost method if Kimball does not have the ability to exercise significant influence over the operating and financial policies of the investee. On a periodic basis, but no less frequently than quarterly, these investments are assessed for impairment when there are events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. If a significant adverse effect on the fair value of the investment has occurred and is deemed to be other-than-temporary, the fair value of the investment is estimated, and the amount by which the carrying value of the cost-method investment exceeds its fair value is recorded as an impairment loss. | |||||
The carrying value of our short-term financial instruments, including cash deposit accounts, trade accounts receivable, prepaid and deposit accounts, trade accounts payable, accrued expenses and dividends payable, approximate fair value due to the relatively short maturity and immaterial non-performance risk of such instruments. These financial instruments are categorized as Level 2 financial instruments. | |||||
Cost Method Investments | ' | ||||
Investments in non-marketable equity securities are accounted for using the cost method if Kimball does not have the ability to exercise significant influence over the operating and financial policies of the investee. On a periodic basis, but no less frequently than quarterly, these investments are assessed for impairment when there are events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. If a significant adverse effect on the fair value of the investment has occurred and is deemed to be other-than-temporary, the fair value of the investment is estimated, and the amount by which the carrying value of the cost-method investment exceeds its fair value is recorded as an impairment loss. |
Note_8_Derivative_Instruments_
Note 8. Derivative Instruments (Policies) | 3 Months Ended |
Sep. 30, 2013 | |
Derivative Instruments [Abstract] | ' |
Derivatives, Hedge Discontinuances | ' |
In limited cases due to unexpected changes in forecasted transactions, cash flow hedges may cease to meet the criteria to be designated as cash flow hedges. Depending on the type of exposure hedged, we may either purchase a derivative contract in the opposite position of the undesignated hedge or may retain the hedge until it matures if the hedge continues to provide an adequate offset in earnings against the currency revaluation impact of foreign currency denominated liabilities. | |
Derivatives, Reporting of Derivative Activity | ' |
The fair value of outstanding derivative instruments is recognized on the balance sheet as a derivative asset or liability. When derivatives are settled with the counterparty, the derivative asset or liability is relieved and cash flow is impacted for the net settlement. For derivative instruments that meet the criteria of hedging instruments under FASB guidance, the effective portions of the gain or loss on the derivative instrument are initially recorded net of related tax effect in Accumulated Other Comprehensive Loss, a component of Share Owners' Equity, and are subsequently reclassified into earnings in the period or periods during which the hedged transaction is recognized in earnings. The ineffective portion of the derivative gain or loss is reported in the Non-operating income (expense), net line item on the Condensed Consolidated Statements of Income immediately. The gain or loss associated with derivative instruments that are not designated as hedging instruments or that cease to meet the criteria for hedging under FASB guidance is also reported in the Non-operating income (expense), net line item on the Condensed Consolidated Statements of Income immediately. |
Note_1_Summary_of_Significant_2
Note 1. Summary of Significant Accounting Policies (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Summary of Significant Accounting Policies [Abstract] | ' | |||||||
Components of Non-operating income (expense), net | ' | |||||||
Components of Non-operating income (expense), net: | ||||||||
Three Months Ended | ||||||||
September 30 | ||||||||
(Amounts in Thousands) | 2013 | 2012 | ||||||
Foreign Currency/Derivative Gain (Loss) | $ | 118 | $ | (393 | ) | |||
Gain on Supplemental Employee Retirement Plan Investments | 1,051 | 703 | ||||||
Other | (211 | ) | (126 | ) | ||||
Non-operating income (expense), net | $ | 958 | $ | 184 | ||||
Note_2_Inventories_Tables
Note 2. Inventories (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventories [Abstract] | ' | |||||||
Schedule of Inventory, Current | ' | |||||||
Inventory components were as follows: | ||||||||
(Amounts in Thousands) | September 30, 2013 | June 30, | ||||||
2013 | ||||||||
Finished products | $ | 31,719 | $ | 33,956 | ||||
Work-in-process | 12,233 | 12,746 | ||||||
Raw materials | 98,242 | 90,167 | ||||||
Total FIFO inventory | $ | 142,194 | $ | 136,869 | ||||
LIFO reserve | (13,417 | ) | (12,871 | ) | ||||
Total inventory | $ | 128,777 | $ | 123,998 | ||||
Note_3_Segment_Information_Tab
Note 3. Segment Information (Tables) | 3 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Segment and Geographic area Infomation [Abstract] | ' | |||||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||||
Three Months Ended | ||||||||||
September 30 | ||||||||||
(Amounts in Thousands) | 2013 | 2012 | ||||||||
Net Sales: | ||||||||||
Electronic Manufacturing Services | $ | 175,636 | $ | 164,175 | ||||||
Furniture | 141,803 | 124,015 | ||||||||
Consolidated | $ | 317,439 | $ | 288,190 | ||||||
Net Income (Loss): | ||||||||||
Electronic Manufacturing Services | $ | 7,462 | $ | 3,283 | ||||||
Furniture | 2,899 | 1,668 | ||||||||
Unallocated Corporate and Eliminations | (1,178 | ) | 10 | |||||||
Consolidated | $ | 9,183 | -1 | $ | 4,961 | -2 | ||||
Reconciliation of Assets from Segment to Consolidated | ' | |||||||||
(Amounts in Thousands) | September 30, | June 30, | ||||||||
2013 | 2013 | |||||||||
Total Assets: | ||||||||||
Electronic Manufacturing Services | $ | 357,673 | $ | 353,425 | ||||||
Furniture | 187,461 | 185,925 | ||||||||
Unallocated Corporate and Eliminations | 112,359 | 105,169 | ||||||||
Consolidated | $ | 657,493 | $ | 644,519 | ||||||
Note_4_Accumulated_Other_Compr1
Note 4. Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | |||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
During the three months ended September 30, 2013, the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, were as follows: | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Postemployment Benefits | |||||||||||||||||||
(Amounts in Thousands) | Foreign Currency Translation Adjustments | Derivative Gain (Loss) | Prior Service Costs | Net Actuarial Gain (Loss) | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
Balance at June 30, 2013 | $ | 855 | $ | (4,359 | ) | $ | (292 | ) | $ | 319 | $ | (3,477 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 2,928 | (390 | ) | — | 272 | 2,810 | ||||||||||||||
Reclassification to (earnings) loss | — | 299 | 43 | 54 | 396 | |||||||||||||||
Net current-period other comprehensive income (loss) | 2,928 | (91 | ) | 43 | 326 | 3,206 | ||||||||||||||
Balance at September 30, 2013 | $ | 3,783 | $ | (4,450 | ) | $ | (249 | ) | $ | 645 | $ | (271 | ) | |||||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
The following reclassifications were made from accumulated other comprehensive income (loss) to the Condensed Consolidated Statements of Income: | ||||||||||||||||||||
Reclassifications from Accumulated Other Comprehensive Income (Loss) | Three Months Ended | Affected Line Item in the Condensed Consolidated Statements of Income | ||||||||||||||||||
September 30 | ||||||||||||||||||||
(Amounts in Thousands) | 2013 | |||||||||||||||||||
Derivative Gain (Loss) (1) | $ | (171 | ) | Cost of Sales | ||||||||||||||||
(179 | ) | Non-operating income (expense), net | ||||||||||||||||||
51 | Benefit (Provision) for Income Taxes | |||||||||||||||||||
$ | (299 | ) | Net of Tax | |||||||||||||||||
Postemployment Benefits: | ||||||||||||||||||||
Amortization of Prior Service Costs (2) | $ | (49 | ) | Cost of Sales | ||||||||||||||||
(22 | ) | Selling and Administrative Expenses | ||||||||||||||||||
28 | Benefit (Provision) for Income Taxes | |||||||||||||||||||
$ | (43 | ) | Net of Tax | |||||||||||||||||
Amortization of Actuarial Gain (Loss) (2) | $ | (62 | ) | Cost of Sales | ||||||||||||||||
(28 | ) | Selling and Administrative Expenses | ||||||||||||||||||
36 | Benefit (Provision) for Income Taxes | |||||||||||||||||||
$ | (54 | ) | Net of Tax | |||||||||||||||||
Total Reclassifications for the Period | $ | (396 | ) | Net of Tax | ||||||||||||||||
Amounts in parentheses indicate reductions to income. | ||||||||||||||||||||
(1) See Note 8 - Derivative Instruments of Notes to Condensed Consolidated Financial Statements for further information on derivative instruments. | ||||||||||||||||||||
(2) See Note 11 - Postemployment Benefits of Notes to Condensed Consolidated Financial Statements for further information on postemployment benefit plans. |
Note_5_Commitments_and_Conting2
Note 5. Commitments and Contingent Liabilities (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingent Liabilities [Abstract] | ' | |||||||
Schedule of Product Warranty Liability | ' | |||||||
Changes in the product warranty accrual for the three months ended September 30, 2013 and 2012 were as follows: | ||||||||
Three Months Ended | ||||||||
September 30 | ||||||||
(Amounts in Thousands) | 2013 | 2012 | ||||||
Product Warranty Liability at the beginning of the period | $ | 2,384 | $ | 2,251 | ||||
Additions to warranty accrual (including changes in estimates) | 900 | 432 | ||||||
Settlements made (in cash or in kind) | (434 | ) | (252 | ) | ||||
Product Warranty Liability at the end of the period | $ | 2,850 | $ | 2,431 | ||||
Note_7_Fair_Value_Tables
Note 7. Fair Value (Tables) | 3 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value [Abstract] | ' | |||||||||||||||
Fair Value Measurements, Recurring, Valuation Techniques | ' | |||||||||||||||
The following methods and assumptions were used to measure fair value: | ||||||||||||||||
Financial Instrument | Level | Valuation Technique/Inputs Used | ||||||||||||||
Cash Equivalents | 1 | Market - Quoted market prices | ||||||||||||||
Derivative Assets: Foreign exchange contracts | 2 | Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates, considering counterparty credit risk. | ||||||||||||||
Derivative Assets: Stock warrants | 3 | Market - Based on a probability-weighted Black-Scholes option pricing model with the following inputs (level 3 input values indicated in parenthesis): risk-free interest rate (0.09%), historical stock price volatility (98.5%) and weighted average expected term (6 months). Enterprise value was estimated using a discounted cash flow calculation. | ||||||||||||||
Stock warrants are revalued and analyzed for reasonableness on a quarterly basis. The level 3 inputs used are the standard inputs used in the Black-Scholes model. Input values are based on publicly available information (Federal Reserve interest rates) and internally-developed information (historical stock price volatility of comparable investments) and remaining expected term of warrants. | ||||||||||||||||
Significant increases (decreases) in the historical stock price volatility, expected life, and enterprise value in isolation would result in a significantly higher (lower) fair value measurement. The inputs do not have any interrelationships. | ||||||||||||||||
Trading securities: Mutual funds held by nonqualified supplemental employee retirement plan | 1 | Market - Quoted market prices | ||||||||||||||
Derivative Liabilities: Foreign exchange contracts | 2 | Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates adjusted for Kimball's non-performance risk. | ||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||
As of September 30, 2013 and June 30, 2013, the fair values of financial assets and liabilities that are measured at fair value on a recurring basis using the market approach are categorized as follows: | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
(Amounts in Thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 90,723 | $ | — | $ | — | $ | 90,723 | ||||||||
Derivatives: Foreign exchange contracts | — | 145 | — | 145 | ||||||||||||
Derivatives: Stock warrants | — | — | 29 | 29 | ||||||||||||
Trading Securities: Mutual funds held by nonqualified supplemental employee retirement plan | 20,422 | — | — | 20,422 | ||||||||||||
Total assets at fair value | $ | 111,145 | $ | 145 | $ | 29 | $ | 111,319 | ||||||||
Liabilities | ||||||||||||||||
Derivatives: Foreign exchange contracts | $ | — | $ | 1,637 | $ | — | $ | 1,637 | ||||||||
Total liabilities at fair value | $ | — | $ | 1,637 | $ | — | $ | 1,637 | ||||||||
June 30, 2013 | ||||||||||||||||
(Amounts in Thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 83,516 | $ | — | $ | — | $ | 83,516 | ||||||||
Derivatives: Foreign exchange contracts | — | 273 | — | 273 | ||||||||||||
Derivatives: Stock warrants | — | — | 25 | 25 | ||||||||||||
Trading Securities: Mutual funds held by nonqualified supplemental employee retirement plan | 19,600 | — | — | 19,600 | ||||||||||||
Total assets at fair value | $ | 103,116 | $ | 273 | $ | 25 | $ | 103,414 | ||||||||
Liabilities | ||||||||||||||||
Derivatives: Foreign exchange contracts | $ | — | $ | 1,662 | $ | — | $ | 1,662 | ||||||||
Total liabilities at fair value | $ | — | $ | 1,662 | $ | — | $ | 1,662 | ||||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | ' | |||||||||||||||
Non-recurring fair value adjustment | Level | Valuation Technique/Inputs Used | ||||||||||||||
Impairment of long-lived assets (property & equipment) | 3 | Market - Estimated potential net selling price. | ||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | ' | |||||||||||||||
Financial instruments that are not reflected in the Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: | ||||||||||||||||
Financial Instrument | Level | Valuation Technique/Inputs Used | ||||||||||||||
Notes receivable | 2 | Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer's non-performance risk | ||||||||||||||
Non-marketable equity securities (cost-method investments, which carry shares at cost except in the event of impairment) | 3 | Cost Method, with Impairment Recognized Using a Market-Based Valuation Technique - See the explanation below the table regarding the method used to periodically estimate the fair value of cost-method investments. | ||||||||||||||
Long-term debt (carried at amortized cost) | 3 | Income - Price estimated using a discounted cash flow analysis based on quoted long-term debt market rates, taking into account Kimball's non-performance risk |
Note_8_Derivative_Instruments_1
Note 8. Derivative Instruments (Tables) | 3 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Derivative Instruments [Abstract] | ' | |||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | |||||||||||||||||||
Fair Value of Derivative Instruments on the Condensed Consolidated Balance Sheets | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Fair Value As of | Fair Value As of | |||||||||||||||||||
(Amounts in Thousands) | Balance Sheet Location | September 30, | June 30, | Balance Sheet Location | September 30, | June 30, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | $ | 145 | $ | 265 | Accrued expenses | $ | 1,178 | $ | 1,097 | ||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | — | 8 | Accrued expenses | 459 | 565 | ||||||||||||||
Stock warrants | Other assets (long-term) | 29 | 25 | |||||||||||||||||
Total derivatives | $ | 174 | $ | 298 | $ | 1,637 | $ | 1,662 | ||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
The Effect of Derivative Instruments on Other Comprehensive Income (Loss) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
September 30 | ||||||||||||||||||||
(Amounts in Thousands) | 2013 | 2012 | ||||||||||||||||||
Amount of Pre-Tax Gain or (Loss) Recognized in Other Comprehensive Income (Loss) (OCI) on Derivatives (Effective Portion): | ||||||||||||||||||||
Foreign exchange contracts | $ | (505 | ) | $ | 1,401 | |||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | |||||||||||||||||||
The Effect of Derivative Instruments on Condensed Consolidated Statements of Income | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(Amounts in Thousands) | September 30 | |||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Location of Gain or (Loss) | 2013 | 2012 | |||||||||||||||||
Amount of Pre-Tax Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion): | ||||||||||||||||||||
Foreign exchange contracts | Cost of Sales | $ | (171 | ) | $ | 355 | ||||||||||||||
Foreign exchange contracts | Non-operating income (expense) | (179 | ) | (92 | ) | |||||||||||||||
Total | $ | (350 | ) | $ | 263 | |||||||||||||||
Amount of Pre-Tax Gain or (Loss) Reclassified from Accumulated OCI into Income (Ineffective Portion): | ||||||||||||||||||||
Foreign exchange contracts | Non-operating income (expense) | $ | — | $ | (3 | ) | ||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||
Amount of Pre-Tax Gain or (Loss) Recognized in Income on Derivatives: | ||||||||||||||||||||
Foreign exchange contracts | Non-operating income (expense) | $ | (544 | ) | $ | (196 | ) | |||||||||||||
Stock warrants | Non-operating income (expense) | 4 | (1 | ) | ||||||||||||||||
Total | $ | (540 | ) | $ | (197 | ) | ||||||||||||||
Total Derivative Pre-Tax Gain (Loss) Recognized in Income | $ | (890 | ) | $ | 63 | |||||||||||||||
Note_9_Investments_Tables
Note 9. Investments (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Investments [Abstract] | ' | |||||||
Trading Securities (and Certain Trading Assets) | ' | |||||||
SERP asset and liability balances were as follows: | ||||||||
(Amounts in Thousands) | September 30, | June 30, | ||||||
2013 | 2013 | |||||||
SERP investment - current asset | $ | 7,744 | $ | 7,031 | ||||
SERP investment - other long-term asset | 12,678 | 12,569 | ||||||
Total SERP investment | $ | 20,422 | $ | 19,600 | ||||
SERP obligation - current liability | $ | 7,744 | $ | 7,031 | ||||
SERP obligation - other long-term liability | 12,678 | 12,569 | ||||||
Total SERP obligation | $ | 20,422 | $ | 19,600 | ||||
Note_11_Postemployment_Benefit1
Note 11. Postemployment Benefits (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
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 | ||||||||
September 30 | ||||||||
(Amounts in Thousands) | 2013 | 2012 | ||||||
Service cost | $ | 237 | $ | 200 | ||||
Interest cost | 34 | 50 | ||||||
Amortization of prior service costs | 71 | 71 | ||||||
Amortization of actuarial loss | 90 | 92 | ||||||
Net periodic benefit cost | $ | 432 | $ | 413 | ||||
Note_12_Stock_Compensation_Pla1
Note 12. Stock Compensation Plan (Tables) | 3 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Stock Compensation Plan [Abstract] | ' | |||||||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Grants in Period | ' | |||||||||
Performance Shares | Quarter Awarded | Shares | Grant Date Fair Value (4) | |||||||
Annual Performance Shares – Class A (1) | 1st Quarter | 229,500 | $11.05 | |||||||
Long-Term Performance Shares – Class A (2) | 1st Quarter | 405,500 | $11.05 | |||||||
Unrestricted Shares | Quarter Awarded | Shares | Grant Date Fair Value (4) | |||||||
Unrestricted Shares (Director Compensation) – Class B (3) | 1st Quarter | 15,017 | $10.09 | |||||||
Unrestricted Shares – Class B (3) | 1st Quarter | 1,000 | $10.01 | |||||||
-1 | Annual performance shares were awarded to officers. Payouts will be based upon the fiscal year 2014 cash incentive payout percentages calculated under Kimball's Profit Sharing Incentive Bonus Plan. The number of shares issued will be less than the maximum potential shares issuable if the maximum cash incentive payout percentages are not achieved. Annual performance shares vest after one year. | |||||||||
-2 | Long-term performance shares were awarded to officers and other key employees. Payouts will be based upon the cash incentive payout percentages calculated under Kimball's Profit Sharing Incentive Bonus Plan. Long-term performance shares are based on five successive annual performance measurement periods, with each annual tranche having a grant date when economic profit tiers are established at the beginning of the applicable fiscal year and a vesting date at the end of each annual period. The number of shares issued will be less than the maximum potential shares issuable if the target cash incentive payout percentages are not achieved. | |||||||||
-3 | Unrestricted shares were awarded to non-employee members of the Board of Directors as compensation for director's fees as a result of directors' elections to receive unrestricted shares in lieu of cash payment. Director's fees are expensed over the period that directors earn the compensation. Other unrestricted shares were awarded to a key employee as consideration for service to the Company. Unrestricted shares do not have vesting periods, holding periods, restrictions on sale, or other restrictions. | |||||||||
-4 | The grant date fair value of performance shares is based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding performance share awards. The grant date fair value shown for long-term performance shares is applicable to the first tranche only. The grant date fair value of the unrestricted shares was based on the stock price at the date of the award. |
Note_14_Credit_Quality_and_All1
Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable (Tables) | 3 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Credit Quality and Allowance for Credit Losses of Notes Receivable [Abstract] | ' | |||||||||||||||||||||||
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent | ' | |||||||||||||||||||||||
As of September 30, 2013 | As of June 30, 2013 | |||||||||||||||||||||||
(Amounts in Thousands) | Unpaid Balance | Related Allowance | Receivable Net of Allowance | Unpaid Balance | Related Allowance | Receivable Net of Allowance | ||||||||||||||||||
Note Receivable from Sale of Indiana Facility | $ | 1,409 | $ | — | $ | 1,409 | $ | 1,413 | $ | — | $ | 1,413 | ||||||||||||
Notes Receivable from an Electronics Engineering Services Firm | 338 | 273 | 65 | 521 | 440 | 81 | ||||||||||||||||||
Other Notes Receivable | 76 | 28 | 48 | 127 | 85 | 42 | ||||||||||||||||||
Total | $ | 1,823 | $ | 301 | $ | 1,522 | $ | 2,061 | $ | 525 | $ | 1,536 | ||||||||||||
Note_1_Summary_of_Significant_3
Note 1. Summary of Significant Accounting Policies - Components of Non-operating income (expense), net (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Foreign Currency/Derivative Gain (Loss) | $118 | ($393) |
Gain on Supplemental Employee Retirement Plan Investments | 1,051 | 703 |
Loss on Stock Warrants | -540 | -197 |
Other | -211 | -126 |
Non-operating income (expense), net | 958 | 184 |
Non-Operating Income (Expense) | Stock Warrant | ' | ' |
Loss on Stock Warrants | $4 | ($1) |
Note_1_Summary_of_Significant_4
Note 1. Summary of Significant Accounting Policies - Textuals (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Other General Expense | ($5,022,000) | $0 |
Effective Income Tax Rate | 28.00% | 31.00% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance | 500,000 | ' |
Electronic Manufacturing Services segment | ' | ' |
Other General Expense | ($5,000,000) | ' |
Note_2_Inventories_Inventory_C
Note 2. Inventories - Inventory Components (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Finished products | $31,719 | $33,956 |
Work-in-process | 12,233 | 12,746 |
Raw materials | 98,242 | 90,167 |
Total FIFO inventory | 142,194 | 136,869 |
LIFO reserve | -13,417 | -12,871 |
Total inventory | $128,777 | $123,998 |
Note_2_Inventories_Textuals_De
Note 2. Inventories - Textuals (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2012 |
Effect of LIFO Inventory Liquidation on Income | $0 |
Note_3_Segment_Information_Seg
Note 3. Segment Information - Segment Reporting Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information | ' | ' |
Net Sales: | $317,439 | $288,190 |
Net Income (Loss): | 9,183 | 4,961 |
Electronic Manufacturing Services segment | ' | ' |
Segment Reporting Information | ' | ' |
Net Sales: | 175,636 | 164,175 |
Net Income (Loss): | 7,462 | 3,283 |
Furniture segment | ' | ' |
Segment Reporting Information | ' | ' |
Net Sales: | 141,803 | 124,015 |
Net Income (Loss): | 2,899 | 1,668 |
Unallocated Corporate and Eliminations | ' | ' |
Segment Reporting Information | ' | ' |
Net Income (Loss): | ($1,178) | $10 |
Note_3_Segment_Information_Res
Note 3. Segment Information - Restructuring Charges and Nonrecurring Items Included in Net Income (Loss) Textuals (Details) (USD $) | 3 Months Ended |
Sep. 30, 2013 | |
Segment Reporting Information | ' |
Restructuring Charges, Net of Tax | $242,000 |
Electronic Manufacturing Services segment | ' |
Segment Reporting Information | ' |
Restructuring Charges, Net of Tax | 44,000 |
Other General Expense, After-Tax | -3,000,000 |
Unallocated Corporate and Eliminations | ' |
Segment Reporting Information | ' |
Restructuring Charges, Net of Tax | 198,000 |
Impairment of Long-Lived Assets to be Disposed of, After-Tax | $720,000 |
Note_3_Segment_Information_Seg1
Note 3. Segment Information - Segment Assets (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Assets | ' | ' |
Assets | $657,493 | $644,519 |
Electronic Manufacturing Services segment | ' | ' |
Segment Reporting, Assets | ' | ' |
Assets | 357,673 | 353,425 |
Furniture segment | ' | ' |
Segment Reporting, Assets | ' | ' |
Assets | 187,461 | 185,925 |
Unallocated Corporate and Eliminations | ' | ' |
Segment Reporting, Assets | ' | ' |
Assets | $112,359 | $105,169 |
Note_4_Accumulated_Other_Compr2
Note 4. Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' |
Accumulated Other Comprehensive Income (Loss) | ($3,477) |
Other comprehensive income (loss), before reclassifications | 2,810 |
Reclassification to (earnings) loss | 396 |
Net current-period other comprehensive income (loss) | 3,206 |
Accumulated Other Comprehensive Income (Loss) | -271 |
Foreign Currency Translation Adjustments | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' |
Accumulated Other Comprehensive Income (Loss) | 855 |
Other comprehensive income (loss), before reclassifications | 2,928 |
Reclassification to (earnings) loss | 0 |
Net current-period other comprehensive income (loss) | 2,928 |
Accumulated Other Comprehensive Income (Loss) | 3,783 |
Derivative Gain (Loss) | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' |
Accumulated Other Comprehensive Income (Loss) | -4,359 |
Other comprehensive income (loss), before reclassifications | -390 |
Reclassification to (earnings) loss | 299 |
Net current-period other comprehensive income (loss) | -91 |
Accumulated Other Comprehensive Income (Loss) | -4,450 |
Postemployment Benefits, Prior Service Costs | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' |
Accumulated Other Comprehensive Income (Loss) | -292 |
Other comprehensive income (loss), before reclassifications | 0 |
Reclassification to (earnings) loss | 43 |
Net current-period other comprehensive income (loss) | 43 |
Accumulated Other Comprehensive Income (Loss) | -249 |
Postemployment Benefits, Net Actuarial Gain (Loss) | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' |
Accumulated Other Comprehensive Income (Loss) | 319 |
Other comprehensive income (loss), before reclassifications | 272 |
Reclassification to (earnings) loss | 54 |
Net current-period other comprehensive income (loss) | 326 |
Accumulated Other Comprehensive Income (Loss) | $645 |
Note_4_Accumulated_Other_Compr3
Note 4. Accumulated Other Comprehensive Income (Loss) - Reclassifications from Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ' | ' | |
Amortization of Prior Service Costs | $71 | $71 | |
Amortization of Actuarial Gain (Loss) | -90 | -92 | |
Net Income (Loss): | 9,183 | 4,961 | |
Cost of Sales | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ' | ' | |
Amortization of Prior Service Costs | -49 | [1] | ' |
Amortization of Actuarial Gain (Loss) | -62 | [1] | ' |
Selling and Administrative Expenses | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ' | ' | |
Amortization of Prior Service Costs | -22 | [1] | ' |
Amortization of Actuarial Gain (Loss) | -28 | [1] | ' |
Benefit (Provision) for Income Taxes | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ' | ' | |
Amortization of Prior Service Costs | 28 | ' | |
Amortization of Actuarial Gain (Loss) | 36 | ' | |
Net of Tax | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ' | ' | |
Amortization of Prior Service Costs | -43 | ' | |
Amortization of Actuarial Gain (Loss) | -54 | ' | |
Net Income (Loss): | -396 | ' | |
Cash Flow Hedging | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ' | ' | |
Derivative Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | -350 | 263 | |
Foreign Exchange Contract | Cash Flow Hedging | Cost of Sales | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ' | ' | |
Derivative Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | -171 | [2] | 355 |
Foreign Exchange Contract | Cash Flow Hedging | Non-Operating Income (Expense) | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ' | ' | |
Derivative Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | -179 | [2] | -92 |
Foreign Exchange Contract | Cash Flow Hedging | Benefit (Provision) for Income Taxes | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ' | ' | |
Derivative Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 51 | ' | |
Foreign Exchange Contract | Cash Flow Hedging | Net of Tax | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ' | ' | |
Derivative Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | ($299) | ' | |
[1] | See Note 11 - Postemployment Benefits of Notes to Condensed Consolidated Financial Statements for further information on postemployment benefit plans. | ||
[2] | See Note 8 - Derivative Instruments of Notes to Condensed Consolidated Financial Statements for further information on derivative instruments. |
Note_5_Commitments_and_Conting3
Note 5. Commitments and Contingent Liabilities - Commitments and Contingent Liabilities Textuals (Details) (Financial Standby Letter of Credit, USD $) | Sep. 30, 2013 |
Financial Standby Letter of Credit | ' |
Guarantor Obligations | ' |
Unused Standby Letters of Credit | $3,800,000 |
Loss Contingency Accrual, at Carrying Value | $0 |
Note_5_Commitments_and_Conting4
Note 5. Commitments and Contingent Liabilities - Product Warranty (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Product Warranty Liability at the beginning of the period | $2,384 | $2,251 |
Additions to warranty accrual (including changes in estimates) | 900 | 432 |
Settlements made (in cash or in kind) | -434 | -252 |
Product Warranty Liability at the end of the period | $2,850 | $2,431 |
Note_6_Restructuring_Expense_T
Note 6. Restructuring Expense -Textuals (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Restructuring Expense and Other Related Items | ' | ' |
Restructuring Charges | $402,000 | $60,000 |
Loss on sale of asset | -60,000 | -38,000 |
Accrued Restructuring | 0 | ' |
Held for Sale Facilty and Land Related to the Gaylord, Michigan Exited Operation | Other Restructuring Plans | Unallocated Corporate and Eliminations | ' | ' |
Restructuring Expense and Other Related Items | ' | ' |
Loss on sale of asset | $311,000 | ' |
Note_7_Fair_Value_Recurring_Fa
Note 7. Fair Value - Recurring Fair Value Measurments (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Recurring Fair Value Measurements: | ' | ' |
Derivative Asset | $174 | $298 |
Derivative Liability | 1,637 | 1,662 |
Fair Value, Measurements, Recurring | ' | ' |
Recurring Fair Value Measurements: | ' | ' |
Cash Equivalents | 90,723 | 83,516 |
Trading Securities: Mutual funds held by nonqualified supplemental employee retirement plan | 20,422 | 19,600 |
Total assets at fair value | 111,319 | 103,414 |
Total liabilities at fair value | 1,637 | 1,662 |
Fair Value, Measurements, Recurring | Foreign Exchange Contract | ' | ' |
Recurring Fair Value Measurements: | ' | ' |
Derivative Asset | 145 | 273 |
Derivative Liability | 1,637 | 1,662 |
Fair Value, Measurements, Recurring | Stock Warrant | ' | ' |
Recurring Fair Value Measurements: | ' | ' |
Derivative Asset | 29 | 25 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ' | ' |
Recurring Fair Value Measurements: | ' | ' |
Cash Equivalents | 90,723 | 83,516 |
Trading Securities: Mutual funds held by nonqualified supplemental employee retirement plan | 20,422 | 19,600 |
Total assets at fair value | 111,145 | 103,116 |
Total liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Foreign Exchange Contract | ' | ' |
Recurring Fair Value Measurements: | ' | ' |
Derivative Asset | ' | ' |
Derivative Liability | ' | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Stock Warrant | ' | ' |
Recurring Fair Value Measurements: | ' | ' |
Derivative Asset | ' | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ' | ' |
Recurring Fair Value Measurements: | ' | ' |
Cash Equivalents | ' | ' |
Trading Securities: Mutual funds held by nonqualified supplemental employee retirement plan | ' | ' |
Total assets at fair value | 145 | 273 |
Total liabilities at fair value | 1,637 | 1,662 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Foreign Exchange Contract | ' | ' |
Recurring Fair Value Measurements: | ' | ' |
Derivative Asset | 145 | 273 |
Derivative Liability | 1,637 | 1,662 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Stock Warrant | ' | ' |
Recurring Fair Value Measurements: | ' | ' |
Derivative Asset | ' | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ' | ' |
Recurring Fair Value Measurements: | ' | ' |
Cash Equivalents | ' | ' |
Trading Securities: Mutual funds held by nonqualified supplemental employee retirement plan | ' | ' |
Total assets at fair value | 29 | 25 |
Total liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Foreign Exchange Contract | ' | ' |
Recurring Fair Value Measurements: | ' | ' |
Derivative Asset | ' | ' |
Derivative Liability | ' | ' |
Other Assets, Long Term | Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Stock Warrant | ' | ' |
Recurring Fair Value Measurements: | ' | ' |
Derivative Asset | $29 | $25 |
Note_7_Fair_Value_Textuals_Det
Note 7. Fair Value - Textuals (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Derivatives Not Designated as Hedging Instruments, Pre-Tax Gain (Loss) Recognized in Income | ($540) | ($197) |
Fair Value, Purchases and Sales of Level 3 Assets | 0 | 0 |
Fair Value, Transfers Between Levels, Amount | 0 | ' |
Unallocated Corporate and Eliminations | Property, Plant and Equipment, Other Types | Fair Value, Measurements, Nonrecurring | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Impairment of Long-Lived Assets to be Disposed of | $1,198 | ' |
Stock Warrant | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Fair Value Assumptions, Risk Free Interest Rate | 0.09% | ' |
Fair Value Assumptions, Expected Volatility Rate | 98.50% | ' |
Fair Value Assumptions, Expected Term | '6 months | ' |
Note_8_Derivative_Instruments_2
Note 8. Derivative Instruments - Textuals (Details) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
USD ($) | USD ($) | Foreign Exchange Contract | Foreign Exchange Contract | Foreign Exchange Contract | Non-Operating Income (Expense) | Non-Operating Income (Expense) | Non-Operating Income (Expense) | Non-Operating Income (Expense) | |
USD ($) | EUR (€) | Foreign Exchange Contract | Foreign Exchange Contract | Stock Warrant | Stock Warrant | ||||
USD ($) | USD ($) | USD ($) | USD ($) | ||||||
Derivatives, Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | ' | $26,300,000 | ' | € 43,900,000 | ' | ' | ' | ' |
Derivatives, Gain (Loss) Deferred in Accumulated OCI, Estimated Net Amount to be Transferred to Income, pre-tax | ' | ' | -1,100,000 | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | ' | ' | '12 months | '12 months | ' | ' | ' | ' | ' |
Derivatives Not Designated as Hedging Instruments, Pre-Tax Gain (Loss) Recognized in Income | ($540,000) | ($197,000) | ' | ' | ' | ($544,000) | ($196,000) | $4,000 | ($1,000) |
Note_8_Derivative_Instruments_3
Note 8. Derivative Instruments - Fair Values of Derivative Instruments on the Consolidated Balance Sheet (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value | ' | ' |
Derivative Asset | $174 | $298 |
Derivative Liability | 1,637 | 1,662 |
Foreign Exchange Contract | Fair Value, Measurements, Recurring | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Asset | 145 | 273 |
Derivative Liability | 1,637 | 1,662 |
Foreign Exchange Contract | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Asset | ' | ' |
Derivative Liability | ' | ' |
Stock Warrant | Fair Value, Measurements, Recurring | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Asset | 29 | 25 |
Designated as Hedging Instrument | Foreign Exchange Contract | Prepaid Expenses and Other Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Asset | 145 | 265 |
Designated as Hedging Instrument | Foreign Exchange Contract | Accrued Expenses | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Liability | 1,178 | 1,097 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Prepaid Expenses and Other Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Asset | 0 | 8 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Accrued Expenses | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Liability | 459 | 565 |
Not Designated as Hedging Instrument | Stock Warrant | Other Assets, Long Term | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Asset | $29 | $25 |
Note_8_Derivative_Instruments_4
Note 8. Derivative Instruments - The Effect of Derivative Instruments on Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments, Gain (Loss) | ' | ' |
Derivative Instruments, Pre-Tax Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion | ($505) | $1,401 |
Foreign Exchange Contract | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Derivative Instruments, Pre-Tax Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion | ($505) | $1,401 |
Note_8_Derivative_Instruments_5
Note 8. Derivative Instruments - The Effect of Derivative Instruments on Consolidated Statements of Income (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
Derivative Instruments, Gain (Loss) | ' | ' | |
Total Derivative Pre-Tax Gain (Loss) Recognized in Income | ($890) | $63 | |
Derivatives Not Designated as Hedging Instruments, Pre-Tax Gain (Loss) Recognized in Income | -540 | -197 | |
Foreign Exchange Contract | Non-Operating Income (Expense) | ' | ' | |
Derivative Instruments, Gain (Loss) | ' | ' | |
Derivatives Not Designated as Hedging Instruments, Pre-Tax Gain (Loss) Recognized in Income | -544 | -196 | |
Stock Warrant | Non-Operating Income (Expense) | ' | ' | |
Derivative Instruments, Gain (Loss) | ' | ' | |
Derivatives Not Designated as Hedging Instruments, Pre-Tax Gain (Loss) Recognized in Income | 4 | -1 | |
Cash Flow Hedging | ' | ' | |
Derivative Instruments, Gain (Loss) | ' | ' | |
Derivatives, Pre-Tax Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion | -350 | 263 | |
Cash Flow Hedging | Foreign Exchange Contract | Cost of Sales | ' | ' | |
Derivative Instruments, Gain (Loss) | ' | ' | |
Derivatives, Pre-Tax Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion | -171 | [1] | 355 |
Cash Flow Hedging | Foreign Exchange Contract | Non-Operating Income (Expense) | ' | ' | |
Derivative Instruments, Gain (Loss) | ' | ' | |
Derivatives, Pre-Tax Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion | -179 | [1] | -92 |
Derivatives, Pre-Tax Gain (Loss) Reclassified from Accumulated OCI into Income, Ineffective Portion | $0 | ($3) | |
[1] | See Note 8 - Derivative Instruments of Notes to Condensed Consolidated Financial Statements for further information on derivative instruments. |
Note_9_Investments_NonMarketab
Note 9. Investments - Non-Marketable Equity Securities Textuals (Details) (Common Stock, Common Stock, USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Common Stock | Common Stock | ' | ' |
Schedule of Securities | ' | ' |
Non-marketable Securities, carrying value | $0.10 | $0.10 |
Note_9_Investments_Supplementa
Note 9. Investments - Supplemental Employee Retirement Investments Textuals (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Trading Securities and Other Trading Assets | ' | ' |
Trading Securities, Change in net unrealized holding gains (losses) | $925 | $635 |
Note_9_Investments_Supplementa1
Note 9. Investments - Supplemental Employee Retirement Plan Investments (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Trading Securities and Other Trading Assets | ' | ' |
SERP investment - current asset | $7,744 | $7,031 |
SERP investment - other long-term asset | 12,678 | 12,569 |
Total SERP investment | 20,422 | 19,600 |
SERP obligation - current liability | 7,744 | 7,031 |
SERP obligation - other long-term liability | 12,678 | 12,569 |
Total SERP obligation | $20,422 | $19,600 |
Note_10_Assets_Held_for_Sale_T
Note 10. Assets Held for Sale - Textuals (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 |
Assets held for sale | $2,646 | ' | $1,521 |
Loss on sale of asset | -60 | -38 | ' |
Unallocated Corporate and Eliminations | Held for Sale Facilty and Land Related to the Gaylord, Michigan Exited Operation | ' | ' | ' |
Assets held for sale | ' | ' | 400 |
Unallocated Corporate and Eliminations | Property, Plant and Equipment, Other Types | ' | ' | ' |
Assets held for sale | 1,525 | ' | ' |
Furniture segment | Idle Furniture segment manufacturing facility and land located in Jasper, Indiana | ' | ' | ' |
Assets held for sale | 1,121 | ' | 1,121 |
Other Restructuring Plans | Unallocated Corporate and Eliminations | Held for Sale Facilty and Land Related to the Gaylord, Michigan Exited Operation | ' | ' | ' |
Loss on sale of asset | 311 | ' | ' |
Fair Value, Measurements, Nonrecurring | Unallocated Corporate and Eliminations | Property, Plant and Equipment, Other Types | ' | ' | ' |
Impairment of Long-Lived Assets to be Disposed of | $1,198 | ' | ' |
Note_11_Postemployment_Benefit2
Note 11. Postemployment Benefits (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Components of Net Periodic Benefit Cost (before tax): | ' | ' |
Service cost | $237 | $200 |
Interest cost | 34 | 50 |
Amortization of prior service costs | 71 | 71 |
Amortization of actuarial loss | 90 | 92 |
Net periodic benefit cost | $432 | $413 |
Note_12_Stock_Compensation_Pla2
Note 12. Stock Compensation Plan - Stock Compensation Awards (Details) (USD $) | 3 Months Ended |
Sep. 30, 2013 | |
Annual Performance Shares | Class A Common Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Stock Compensation, Shares Awarded | 229,500 |
Stock Compensation, Grant Date Fair Value | $11.05 |
Long-Term Performance Shares | Class A Common Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Stock Compensation, Shares Awarded | 405,500 |
Stock Compensation, Grant Date Fair Value | $11.05 |
Unrestricted Shares Director Compensation | Class B Common Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Stock Compensation, Shares Awarded | 15,017 |
Stock Compensation, Grant Date Fair Value | $10.09 |
Unrestricted Shares | Class B Common Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Stock Compensation, Shares Awarded | 1,000 |
Stock Compensation, Grant Date Fair Value | $10.01 |
Note_12_Stock_Compensation_Pla3
Note 12. Stock Compensation Plan - Textuals (Details) | 3 Months Ended |
Sep. 30, 2013 | |
Annual Performance Shares | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '1 year |
Long-Term Performance Shares | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Successive Annual Performance Measurement Periods | 5 |
Note_13_Variable_Interest_Enti1
Note 13. Variable Interest Entities -Textuals (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | |||
Notes Receivable | Notes Receivable | ||||
Variable Interest Entity | ' | ' | ' | ' | ' |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | ' | ' | ' | $1,500,000 | $1,500,000 |
Variable Interest Entity, Nonconsolidated, Related Allowance | 301,000 | 525,000 | ' | 300,000 | 400,000 |
Variable Interest Entity, Obligation to Provide Additional Funding, Amount | ' | ' | $0 | ' | ' |
Note_14_Credit_Quality_and_All2
Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable - Credit Quality and Allowance for Credit Losses (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
Notes Receivable | ' | ' |
Notes Receivable, Unpaid Balance | $1,823,000 | $2,061,000 |
Notes Receivable, Related Allowance | 301,000 | 525,000 |
Notes Receivable, Net of Allowance | 1,522,000 | 1,536,000 |
Notes Receivable | Note Receivable From Sale of Indiana Facility | ' | ' |
Notes Receivable | ' | ' |
Notes Receivable, Unpaid Balance | 1,409,000 | 1,413,000 |
Notes Receivable, Related Allowance | 0 | 0 |
Notes Receivable, Net of Allowance | 1,409,000 | 1,413,000 |
Notes Receivable | Notes Receivable from an Electronics Engineering Services Firm | ' | ' |
Notes Receivable | ' | ' |
Notes Receivable, Unpaid Balance | 338,000 | 521,000 |
Notes Receivable, Related Allowance | 273,000 | 440,000 |
Notes Receivable, Net of Allowance | 65,000 | 81,000 |
Notes Receivable | Other Notes Receivable | ' | ' |
Notes Receivable | ' | ' |
Notes Receivable, Unpaid Balance | 76,000 | 127,000 |
Notes Receivable, Related Allowance | 28,000 | 85,000 |
Notes Receivable, Net of Allowance | $48,000 | $42,000 |