Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Sep. 30, 2016 | Oct. 20, 2016 | |
Document Information | ||
Entity Registrant Name | KIMBALL INTERNATIONAL INC | |
Entity Central Index Key | 55,772 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 285,685 | |
Class B Common Stock | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 37,007,635 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 46,861 | $ 47,576 |
Short-term investments | 15,842 | 0 |
Receivables, net of allowances of $2,291 and $2,145, respectively | 52,716 | 51,710 |
Inventories | 41,765 | 40,938 |
Prepaid expenses and other current assets | 5,773 | 10,254 |
Assets held for sale | 0 | 9,164 |
Total current assets | 162,957 | 159,642 |
Property and Equipment, net of accumulated depreciation of $184,339 and $181,500, respectively | 85,657 | 87,086 |
Intangible Assets, net of accumulated amortization of $35,383 and $35,147, respectively | 2,898 | 3,021 |
Deferred Tax Assets | 14,261 | 12,790 |
Other Assets | 12,306 | 11,031 |
Total Assets | 278,079 | 273,570 |
Current Liabilities: | ||
Current maturities of long-term debt | 31 | 29 |
Accounts payable | 44,020 | 41,826 |
Customer deposits | 20,052 | 18,625 |
Dividends payable | 2,316 | 2,103 |
Accrued expenses | 40,352 | 44,292 |
Total current liabilities | 106,771 | 106,875 |
Other Liabilities: | ||
Long-term debt, less current maturities | 188 | 212 |
Other | 16,304 | 16,615 |
Total other liabilities | 16,492 | 16,827 |
Common stock-par value $0.05 per share: | ||
Additional paid-in capital | 1,144 | 2,917 |
Retained earnings | 211,006 | 205,104 |
Accumulated other comprehensive income | 1,357 | 1,311 |
Less: Treasury stock, at cost, 5,641,000 shares and 5,512,000 shares, respectively | (60,842) | (61,615) |
Total Share Owners’ Equity | 154,816 | 149,868 |
Total Liabilities and Share Owners’ Equity | 278,079 | 273,570 |
Class A Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | 14 | 14 |
Class B Common Stock | ||
Common stock-par value $0.05 per share: | ||
Common Stock | $ 2,137 | $ 2,137 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) Parentheticals - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
ASSETS | ||
Allowance for Doubtful Accounts, Premiums and Other Receivables | $ 2,291 | $ 2,145 |
Property and Equipment Accumulated Depreciation | 184,339 | 181,500 |
Intangible Assets Accumulated Amortization | $ 35,383 | $ 35,147 |
Class A Common Stock | ||
Share Owners' Equity | ||
Common Stock, Par or Stated Value Per Share | $ 0.05 | $ 0.05 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 286,000 | 292,000 |
Class B Common Stock | ||
Share Owners' Equity | ||
Common Stock, Par or Stated Value Per Share | $ 0.05 | $ 0.05 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 42,738,000 | 42,733,000 |
Treasury Stock, Shares | 5,641,000 | 5,512,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Net Sales | $ 174,996 | $ 156,569 |
Cost of Sales | 116,309 | 105,487 |
Gross Profit | 58,687 | 51,082 |
Selling and Administrative Expenses | 43,227 | 40,171 |
Restructuring (Gain) Expense | (1,832) | 1,186 |
Operating Income | 17,292 | 9,725 |
Other Income (Expense): | ||
Interest income | 110 | 71 |
Interest expense | (5) | (6) |
Non-operating income (expense), net | 292 | (689) |
Other income (expense), net | 397 | (624) |
Income Before Taxes on Income | 17,689 | 9,101 |
Provision for Income Taxes | 6,691 | 3,479 |
Net Income | $ 10,998 | $ 5,622 |
Basic Earnings Per Share | ||
Earnings (Loss) Per Share, Basic | $ 0.29 | $ 0.15 |
Diluted Earnings Per Share | ||
Earnings (Loss) Per Share, Diluted | 0.29 | 0.15 |
Dividends Per Share of Common Stock | ||
Dividends Per Share of Common Stock, Declared | $ 0.060 | $ 0.055 |
Average Number of Shares Outstanding: | ||
Average Number of Shares Outstanding, Basic | 37,609 | 37,515 |
Average Number of Shares Outstanding, Diluted | 38,008 | 37,827 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 10,998 | $ 5,622 |
Other comprehensive income (loss): | ||
Available-for-sale securities, Pre-tax | (23) | 0 |
Available-for-sale securities, Tax | 9 | 0 |
Available-for-sale securities, Net of Tax | (14) | 0 |
Postemployment severance actuarial change, Pre-tax | 243 | 234 |
Postemployment severance actuarial change, Tax | (94) | (91) |
Postemployment severance actuarial change, Net of Tax | 149 | 143 |
Reclassification to (earnings) loss: | ||
Amortization of actuarial change, Pre-tax | (145) | (114) |
Amortization of actuarial change, Tax | 56 | 44 |
Amortization of actuarial change, Net of Tax | (89) | (70) |
Other comprehensive income (loss), Pre-tax | 75 | 120 |
Other comprehensive income (loss), Tax | (29) | (47) |
Other comprehensive income (loss), Net of Tax | 46 | 73 |
Total comprehensive income | $ 11,044 | $ 5,695 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows From Operating Activities: | ||
Net income | $ 10,998 | $ 5,622 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,935 | 3,633 |
(Gain) Loss on sales of assets | (2,076) | 12 |
Restructuring and asset impairment charges | 0 | 19 |
Deferred income tax and other deferred charges | (1,504) | (397) |
Stock-based compensation | 1,779 | 1,525 |
Excess tax benefits from stock-based compensation | 0 | (301) |
Other, net | (819) | (142) |
Change in operating assets and liabilities: | ||
Receivables | (986) | 4,623 |
Inventories | (827) | (8,460) |
Prepaid expenses and other current assets | 4,478 | 263 |
Accounts payable | 594 | 3,866 |
Customer deposits | 1,427 | 1,427 |
Accrued expenses | (3,987) | (5,366) |
Net cash provided by operating activities | 13,012 | 6,324 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (2,353) | (5,359) |
Proceeds from sales of assets | 11,306 | 34 |
Purchases of capitalized software | (113) | (495) |
Purchases of available-for-sale securities | (15,899) | 0 |
Other, net | (702) | (82) |
Net cash used for investing activities | (7,761) | (5,902) |
Cash Flows From Financing Activities: | ||
Net change in capital leases and long-term debt | (22) | (20) |
Dividends paid to Share Owners | (2,060) | (1,902) |
Repurchases of Common Stock | (2,717) | (9,596) |
Excess tax benefits from stock-based compensation | 0 | 301 |
Repurchase of employee shares for tax withholding | (1,167) | (1,477) |
Net cash used for financing activities | (5,966) | (12,694) |
Net Decrease in Cash and Cash Equivalents | (715) | (12,272) |
Cash and Cash Equivalents at Beginning of Period | 47,576 | 34,661 |
Cash and Cash Equivalents at End of Period | 46,861 | 22,389 |
Cash paid during the period for: | ||
Income taxes | 321 | 236 |
Interest expense | $ 5 | $ 6 |
Note 1. Basis of Presentation
Note 1. Basis of Presentation | 3 Months Ended |
Sep. 30, 2016 | |
Basis of Presentation [Abstract] | |
Business Description and Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Kimball International, Inc. (the “Company,” “Kimball,” “we,” “us,” or “our”) have been prepared in accordance with the instructions to Form 10-Q. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted, although we believe that the disclosures are adequate to make the information presented not misleading. Intercompany transactions and balances have been eliminated. Management believes the financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly the financial statements for the interim periods. The results of operations for the interim periods shown in this report are not necessarily indicative of results for any future interim period or for the entire fiscal year. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in our latest annual report on Form 10-K. |
Note 2. Recent Accounting Prono
Note 2. Recent Accounting Pronouncements and Supplemental Information | 3 Months Ended |
Sep. 30, 2016 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | |
Recent Accounting Pronouncements and Supplemental Information | Recent Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on the measurement of credit losses on financial instruments. Under the guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The guidance is also intended to reduce the complexity by decreasing the number of credit impairment models that entities use to account for debt instruments. The guidance is effective for our first quarter of fiscal year 2021 with early adoption in our fiscal year 2020 permitted. We have not yet determined the effect of this guidance on our consolidated financial statements. In March 2016, the FASB issued guidance on simplifying the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification on the statement of cash flows. The guidance is effective for our first quarter of fiscal year 2018 with early adoption permitted. We have not yet determined the effect of this guidance on our consolidated financial statements. In February 2016, the FASB issued guidance that revises the accounting for leases. The guidance is intended to improve financial reporting of leasing transactions by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. Leases will continue to be classified as either operating or finance leases, with the classification affecting the pattern of expense recognition in the statement of income. The guidance will also require additional disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for our first quarter of fiscal year 2020 with early adoption permitted, and is required to be applied using a modified retrospective approach to each prior reporting period. We have not yet determined the effect of this guidance on our consolidated financial statements. In January 2016, the FASB issued guidance which is intended to improve the recognition and measurement of financial instruments. The guidance revises an entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The guidance also amends certain disclosure requirements associated with the fair value of financial instruments. The guidance is effective prospectively for our first quarter of fiscal year 2019 financial statements with early adoption allowed on certain provisions. We have not yet determined the effect of this guidance on our consolidated financial statements. In November 2015, the FASB issued guidance on simplifying the balance sheet classification of deferred taxes. The guidance requires the classification of deferred tax assets and liabilities as noncurrent in a classified balance sheet. The current requirement that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not affected by this update. The guidance is effective for our first quarter of fiscal year 2018 financial statements with early adoption permitted, and allows for the use of either a prospective or retrospective transition method. We early adopted using the retrospective transition method for our fiscal year ended June 30, 2016, and thus reclassified current deferred tax assets and liabilities to noncurrent in our consolidated balance sheet as presented in our Annual Report on Form 10-K for the fiscal year ended June 30, 2016 . In July 2015, the FASB issued guidance on simplifying the measurement of inventory which applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Inventory within the scope of this update is required to be measured at the lower of cost or net realizable value, which is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The guidance does not impact inventory measured on a last-in, first-out (“LIFO”) basis. The standards update is effective prospectively for our first quarter fiscal year 2018 financial statements with early adoption permitted. We do not expect the adoption to have a material effect on our consolidated financial statements. In April 2015, the FASB issued guidance that requires debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability and further clarification guidance allows the cost of securing a revolving line of credit to be recorded as a deferred asset regardless of whether a balance is outstanding. We adopted this guidance for our first quarter of fiscal year 2017 financial statements. The adoption did not have a material effect on our consolidated financial statements. In April 2015, the FASB issued guidance on customer’s accounting for cloud computing fees and provided criteria for customers in a cloud computing arrangement to use to determine whether the arrangement includes a license of software. The guidance clarifies that a software license included in a cloud computing arrangement should be accounted for consistent with the acquisition of other software licenses, whereas a cloud computing arrangement that does not include a software license should be accounted for as a service contract. We adopted this guidance beginning in our first quarter of fiscal year 2017 using the prospective transition method. The adoption did not have a material effect on our consolidated financial statements. In June 2014, the FASB provided explicit guidance on how to account for share-based payments granted to employees in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The guidance was effective prospectively in our first quarter of fiscal year 2017. The adoption did not have a material effect on our consolidated financial statements. In May 2014, the FASB issued guidance on the recognition of revenue from contracts with customers. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. To achieve this core principle, the guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance addresses several areas including transfer of control, contracts with multiple performance obligations, and costs to obtain and fulfill contracts. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB decided to defer the effective date for this new revenue standard by one year, which will make the guidance effective for our first quarter fiscal year 2019 financial statements using either of two acceptable adoption methods: (i) retrospective adoption to each prior reporting period presented with the option to elect certain practical expedients; or (ii) adoption with the cumulative effect of initially applying the guidance recognized at the date of initial application and providing certain additional disclosures. In March 2016, the FASB issued additional guidance which further clarifies assessing whether an entity is a principal or an agent in a revenue transaction, and impacts whether an entity reports revenue on a gross or net basis; in April 2016, the FASB issued additional guidance that addresses identifying performance obligations and implementing licensing guidance; and in May 2016, the FASB issued additional guidance that clarifies collectability, noncash consideration, and other transition issues. The amendments have the same effective date and transition requirements as the new revenue standard. We have not yet selected a transition method nor determined the effect of this guidance on our consolidated financial statements. Notes Receivable and Trade Accounts Receivable: Notes receivable and trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. We determine on a case-by-case basis the cessation of accruing interest, the resumption of accruing interest, the method of recording payments received on nonaccrual receivables, and the delinquency status for our limited number of notes receivable. Our policy for estimating the allowance for credit losses on trade accounts receivable and notes receivable includes analysis of such items as aging, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to determine the final allowance for credit losses on the trade accounts receivable and notes receivable. Trade accounts receivable and notes receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Our limited amount of notes receivable allows management to monitor the risks, credit quality indicators, collectability, and probability of impairment on an individual basis. Adjustments to the allowance for credit losses are recorded in selling and administrative expenses. Customary terms require payment within 30 days , with terms beyond 30 days being considered extended. Income Taxes: In determining the quarterly provision for income taxes, we use an estimated annual effective tax rate which is based on expected annual income, statutory tax rates, and available tax planning opportunities in the various jurisdictions in which we operate. Unusual or infrequently occurring items are separately recognized in the quarter in which they occur. Our effective tax rate for the first three months of fiscal years 2017 and 2016 was 37.8% and 38.2% , respectively, and neither period included material unusual items. Non-operating Income (Expense), net: The non-operating income (expense), net line item includes the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, foreign currency rate movements, non-production rent income, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain (loss) on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. Components of the Non-operating income (expense), net line, were: Three Months Ended September 30 (Amounts in Thousands) 2016 2015 Foreign Currency Loss $ (7 ) $ (23 ) Gain (Loss) on Supplemental Employee Retirement Plan Investments 367 (575 ) Other (68 ) (91 ) Non-operating income (expense), net $ 292 $ (689 ) |
Note 3. Inventories
Note 3. Inventories | 3 Months Ended |
Sep. 30, 2016 | |
Inventories [Abstract] | |
Inventory Disclosure | Inventories Inventory components were as follows: (Amounts in Thousands) September 30, 2016 June 30, Finished products $ 27,287 $ 26,494 Work-in-process 1,519 1,840 Raw materials 25,293 25,070 Total FIFO inventory 54,099 53,404 LIFO reserve (12,334 ) (12,466 ) Total inventory $ 41,765 $ 40,938 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 periods ended September 30, 2016 and 2015 was immaterial. |
Note 4. Accumulated Other Compr
Note 4. Accumulated Other Comprehensive Income | 3 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Comprehensive Income | Accumulated Other Comprehensive Income During the three months ended September 30, 2016 and September 30, 2015 the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: Accumulated Other Comprehensive Income (Amounts in Thousands) Unrealized Investment Gain (Loss) Postemployment Benefits Net Actuarial Gain (Loss) Accumulated Other Comprehensive Income Balance at June 30, 2016 $ — $ 1,311 $ 1,311 Other comprehensive income (loss) before reclassifications (14 ) 149 135 Reclassification to (earnings) loss — (89 ) (89 ) Net current-period other comprehensive income (loss) (14 ) 60 46 Balance at September 30, 2016 $ (14 ) $ 1,371 $ 1,357 Balance at June 30, 2015 $ — $ 1,229 $ 1,229 Other comprehensive income (loss) before reclassifications — 143 143 Reclassification to (earnings) loss — (70 ) (70 ) Net current-period other comprehensive income (loss) — 73 73 Balance at September 30, 2015 $ — $ 1,302 $ 1,302 The following reclassifications were made from Accumulated Other Comprehensive Income to the Condensed Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income Three Months Ended Affected Line Item in the Condensed Consolidated Statements of Income September 30, (Amounts in Thousands) 2016 2015 Postemployment Benefits Amortization of Actuarial Gain (1) $ 92 $ 77 Cost of Sales 53 37 Selling and Administrative Expenses (56 ) (44 ) Provision for Income Taxes Total Reclassifications for the Period $ 89 $ 70 Net Income Amounts in parentheses indicate reductions to income. (1) 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, 2016 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingent Liabilities Guarantees: Standby letters of credit are issued to third-party suppliers, lessors, 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, 2016 , we had a maximum financial exposure from unused standby letters of credit totaling $1.2 million . We are periodically required to provide performance bonds in order to conduct business with certain customers. The bonds are required to provide assurances to customers that the products and services they have purchased will be installed and/or provided properly and without damage to their facilities. We are ultimately liable for claims that may occur against the performance bonds. We had a maximum financial exposure from performance bonds totaling $1.9 million as of September 30, 2016 . 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, 2016 with respect to the standby letters of credit or performance bonds. 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 periodically based on changes in historical cost trends and in certain cases where specific warranty issues become known. Product Warranties: Changes in the product warranty accrual for the three months ended September 30, 2016 and 2015 were as follows: Three Months Ended September 30 (Amounts in Thousands) 2016 2015 Product Warranty Liability at the beginning of the period $ 2,351 $ 2,264 Additions to warranty accrual (including changes in estimates) 213 394 Settlements made (in cash or in kind) (306 ) (305 ) Product Warranty Liability at the end of the period $ 2,258 $ 2,353 Other Contingency: The U.S. government, as well as state and local governments, can typically terminate or modify their contracts with us either at their discretion or if we default by failing to perform under the terms of the applicable contract, which could expose us to liability. The failure to comply with regulatory and contractual requirements could subject us to investigations, fines, or other penalties, and violations of certain regulatory and contractual requirements could also result in us being suspended or debarred from future government contracting. In March 2016, in connection with a renewal of one of our contracts, we became aware of noncompliance and inaccuracies in our General Services Administration (“GSA”) subcontractor reporting. Accordingly, we retained outside legal counsel to assist in conducting an internal review of our reporting practices, and we self-reported the matter and the results of the internal review to the GSA. We have promptly responded to inquiries from the GSA since our initial reporting, and we intend to cooperate fully with any further inquiries or investigations. While we are not able to reasonably estimate the future financial impact, if any, of the possible sanctions at this time, any of them could, if imposed, have a material adverse impact on our business, future financial position, results of operations, or cash flows. The timing of the government’s review and determination of any outcome of these matters is uncertain and, therefore, it is unclear as to when and to what extent, if any, our previously issued earnings guidance might be impacted. We have incurred, and will continue to incur, legal and related costs in connection with our internal review and the government’s response to this matter. During the first quarter of fiscal year 2017, sales related to our GSA contracts were approximately 8.8% of total Kimball International, Inc. sales, with one contract accounting for approximately 5.2% of total Kimball International, Inc. sales and the other contract accounting for approximately 3.6% of Kimball International, Inc. sales. |
Note 6. Restructuring
Note 6. Restructuring | 3 Months Ended |
Sep. 30, 2016 | |
Restructuring Expense [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring We recognized pre-tax restructuring gain of $1.8 million in the three months ended September 30, 2016 , and recognized $1.2 million of restructuring expense in the three months ended September 30, 2015 . We utilize available market prices and management estimates to determine the fair value of impaired fixed assets. Restructuring activity is included in the Restructuring (Gain) Expense line item on the Company’s Condensed Consolidated Statements of Income. Capacity Utilization Restructuring Plan: In November 2014, we announced a capacity utilization restructuring plan which included the consolidation of our metal fabrication production from an operation located in Post Falls, Idaho, into existing production facilities in Indiana, and the reduction of our Company plane fleet from two jets to one. The transfer of work from our Idaho facility involved the start-up of metal fabrication capabilities in an existing Company-owned facility, along with the transfer of certain assembly operations into two additional existing Company-owned facilities, all located in southern Indiana. All production was transferred out of the Idaho facility as of March 2016, after which work continued in the Indiana facilities to train employees, ramp up production and eliminate the inefficiencies associated with the start-up of production in these facilities. The improvement of customer delivery, supply chain dynamics, and reduction of transportation costs will generate pre-tax annual savings of approximately $5 million . During our first quarter of fiscal year 2017 savings began to ramp up, and we achieved savings of $0.9 million . We expect to achieve the full quarterly savings level during our quarter ending December 31, 2016. In addition, during the first quarter of fiscal year 2017 , we sold our Post Falls, Idaho facility and land which was classified as held for sale. We recognized a pre-tax gain of $2.1 million as the $12.0 million selling price net of selling costs exceeded the book value of the facility and land. The reduction of our plane fleet from two jets to one reduced our cost structure while aligning the plane fleet size with our needs following the spin-off of Kimball Electronics on October 31, 2014. The sale of the plane resulted in a $0.2 million pre-tax gain in the third quarter of fiscal year 2015 which partially offset the impairment charge of $1.1 million recorded in the second quarter of fiscal year 2015. As a result of the aircraft fleet reduction, our annual pre-tax savings are $0.8 million . The restructuring plan is substantially complete with pre-tax restructuring totaling $10.8 million . Excluding the pre-tax gain from the sale of the Idaho facility of $2.1 million , the restructuring expense consisted of $4.9 million of transition, training, and other employee costs, $6.9 million of plant closure and other exit costs, and $1.1 million of non-cash asset impairment. Approximately 91% of the total restructuring expense was cash expense. Summary of Restructuring Plan: Accrued June 30, 2016 Three Months Ended September 30, 2016 Total Incurred Since Plan Announcement Total Expected Plan Costs (Amounts in Thousands) Amounts Charged / (Gain) Cash Amounts Charged Non-cash Amounts Utilized/ Cash Paid Accrued September 30, 2016 (1) Capacity Realignment and Post Falls, Idaho Exit Transition and Other Employee Costs $ 444 $ (24 ) $ — $ (224 ) $ 196 $ 4,681 $ 4,681 Asset Write-downs — — — — — 284 284 Plant Closure and Other Exit Costs 7 273 — (280 ) — 6,857 6,857 Gain on Sale of Facility — (2,081 ) — 2,081 — (2,081 ) (2,081 ) Total $ 451 $ (1,832 ) $ — $ 1,577 $ 196 $ 9,741 $ 9,741 Plane Fleet Reduction Transition and Other Employee Costs $ — $ — $ — $ — $ — $ 224 $ 224 Asset Write-downs — — — — — 822 822 Total $ — $ — $ — $ — $ — $ 1,046 $ 1,046 Total Restructuring Plan $ 451 $ (1,832 ) $ — $ 1,577 $ 196 $ 10,787 $ 10,787 (1) The accrued restructuring balance at September 30, 2016 is recorded in current liabilities. |
Note 7. Assets Held for Sale (
Note 7. Assets Held for Sale (Notes) | 3 Months Ended |
Sep. 30, 2015 | |
Assets Held for Sale [Abstract] | |
Disclosure of Assets Held For Sale | Assets Held for Sale At September 30, 2016 , no assets were classified as held for sale. During the first quarter of fiscal year 2017 , we sold our Post Falls, Idaho facility and land which was classified as held for sale. We recognized a pre-tax gain of $2.1 million as the $12.0 million selling price exceeded the book value of the facility and land net of selling costs. At June 30, 2016 , assets totaling $9.2 million were classified as held for sale for the facility and land located in Post Falls, Idaho. |
Note 8. Fair Value
Note 8. Fair Value | 3 Months Ended |
Sep. 30, 2016 | |
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, 2016 . 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, 2016 . We hold a total investment of $1.3 million in a privately-held company, consisting of $0.5 million in non-marketable equity securities invested during fiscal year 2016, and $0.8 million in stock warrants invested during the quarter ended September 30, 2016 . The investment in non-marketable equity securities is classified as a level 3 financial asset and is accounted for using the cost method, as explained in the Financial Instruments Not Carried At Fair Value section below. The investment in stock warrants is also classified as a level 3 financial asset and is accounted for as a derivative instrument valued on a recurring basis, as explained in the Financial Instruments Recognized at Fair Value section below. See Note 9 - Investments of Notes to Condensed Consolidated Financial Statements for further information regarding the investment in non-marketable equity securities, and Note 10 - Derivative Instruments of Notes to Condensed Consolidated Financial Statements for further information regarding the investment in stock warrants. No other purchases or sales of level 3 assets occurred during the three months ended September 30, 2016 . Financial Instruments Recognized at Fair Value: The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents: Money market funds 1 Market - Quoted market prices Cash Equivalents: Commercial paper 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Secondary market certificates of deposit 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Municipal bonds 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Derivative Assets: Stock warrants 3 Market - Stock warrants are analyzed for reasonableness on a quarterly basis. The privately-held company is currently in an early stage of start-up. The pricing of recent purchases or sales of the investment are considered, as well as positive and negative qualitative evidence, in the assessment of fair value. Recurring Fair Value Measurements: As of September 30, 2016 and June 30, 2016 , the fair values of financial assets that are measured at fair value on a recurring basis using the market approach were as follows: (Amounts in Thousands) September 30, 2016 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 40,603 $ — $ — $ 40,603 Cash equivalents: Commercial paper — 4,000 — 4,000 Available-for-sale securities: Secondary market certificates of deposit — 9,890 — 9,890 Available-for-sale securities: Municipal bonds — 5,952 — 5,952 Trading Securities: Mutual funds in nonqualified SERP 10,624 — — 10,624 Derivatives: Stock warrants — — 750 750 Total assets at fair value $ 51,227 $ 19,842 $ 750 $ 71,819 (Amounts in Thousands) June 30, 2016 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 45,880 $ — $ — $ 45,880 Trading Securities: Mutual funds in nonqualified SERP 10,001 — — 10,001 Total assets at fair value $ 55,881 $ — $ — $ 55,881 The nonqualified supplemental employee retirement plan (“SERP”) assets consist primarily of equity funds, balanced funds, target date funds, a bond fund, and a money market fund. The SERP investment assets are offset by a SERP liability which represents 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. Financial Instruments Not Carried At Fair Value: Financial instruments that are not reflected in the Condensed Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk 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 The $0.5 million investment in non-marketable equity securities of a privately-held company is accounted for using the cost method. 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 were to occur and was deemed to be other-than-temporary, the fair value of the investment would be estimated, and the amount by which the carrying value of the cost-method investment exceeds its fair value would be recorded as an impairment loss. The carrying value of our cash deposit accounts, trade accounts receivable, trade accounts payable, and dividends payable approximates fair value due to the relatively short maturity and immaterial non-performance risk. |
Note 9. Investments
Note 9. Investments | 3 Months Ended |
Sep. 30, 2016 | |
Investments [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | Investments Investment Portfolio: During first quarter of fiscal year 2017 we began to invest available cash into an investment portfolio. Our investment portfolio as of September 30, 2016 was comprised of municipal bonds and certificates of deposit purchased in the secondary market. The municipal bonds include general obligation bonds and revenue bonds, some of which are pre-refunded. Our investment policy dictates that municipal bonds must be investment grade quality. Our secondary market certificates of deposit are classified as investment securities, being purchased in the secondary market through a broker and available to be sold in the secondary market. All certificates of deposit are FDIC insured. As of June 30, 2016 , we held no investments. Our investment portfolio is available for use in current operations, therefore investments are recorded within Current Assets in the Condensed Consolidated Balance Sheets. The contractual maturities of the Company’s investment portfolio were as follows: September 30, 2016 (Amounts in Thousands) Certificates of Deposit Municipal Bonds Within one year $ 4,286 $ 2,441 After one year through two years 5,604 3,511 Total Fair Value $ 9,890 $ 5,952 All investments are classified as available-for-sale securities which are recorded at fair value. See Note 8 - Fair Value of Notes to Condensed Consolidated Financial Statements for more information on the fair value of available-for-sale securities. The amortized cost basis reflects the original purchase price, with discounts and premiums amortized over the life of the security. Unrealized losses on municipal bonds and certificates of deposit are recognized in earnings when there is intent to sell or it is likely to be required to sell before recovery of the loss, or when the municipal bonds and certificates of deposit have incurred a credit loss. Otherwise, unrealized gains and losses are recorded net of the tax-related effect as a component of Share Owners’ Equity. September 30, 2016 (Amounts in Thousands) Certificates of Deposit Municipal Bonds Amortized cost basis $ 9,893 $ 5,972 Unrealized holding gains 6 — Unrealized holding losses (9 ) (20 ) Fair Value $ 9,890 $ 5,952 No investments were in a continuous unrealized loss position for greater than 12 months as of September 30, 2016 . There were no realized gains or losses as a result of sales in the three months ended September 30, 2016 . Supplemental Employee Retirement Plan Investments: Kimball maintains a self-directed supplemental employee retirement plan (“SERP”) in which executive employees are eligible to participate. The SERP utilizes a rabbi trust, and therefore assets in the SERP portfolio are subject to creditor claims in the event of bankruptcy. Kimball recognizes SERP investment assets on the Condensed Consolidated Balance Sheets at current fair value. A SERP liability of the same amount is recorded on the Condensed Consolidated Balance Sheets representing an obligation to distribute SERP funds to participants. The SERP investment assets are classified as trading, and accordingly, realized and unrealized gains and losses are recognized in income in the Other Income (Expense) category. Adjustments made to revalue the SERP liability are also recognized in income as selling and administrative expenses and offset valuation adjustments on SERP investment assets. Net unrealized holding losses for the three months ended September 30, 2016 and 2015 were, in thousands, $357 and $598 , respectively. SERP asset and liability balances were as follows: (Amounts in Thousands) September 30, June 30, SERP investments - current asset $ 765 $ 768 SERP investments - other long-term asset 9,859 9,233 Total SERP investments $ 10,624 $ 10,001 SERP obligation - current liability $ 765 $ 768 SERP obligation - other long-term liability 9,859 9,233 Total SERP obligation $ 10,624 $ 10,001 Non-marketable equity securities: We hold a total investment of $1.3 million in a privately-held company, including $0.5 million in non-marketable equity securities purchased during the quarter ended March 31, 2016. The investment in non-marketable equity securities is included in the Other Assets line of the Condensed Consolidated Balance Sheets. See Note 8 - 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. |
Note 10. Derivative Instruments
Note 10. Derivative Instruments | 3 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | Derivative Instruments Stock Warrants: We hold a total investment of $1.3 million in a privately-held company, including $0.8 million in stock warrants purchased during the quarter ended September 30, 2016 . The investment in stock warrants is accounted for as a derivative instrument, and is included in the Other Assets line of the Condensed Consolidated Balance Sheets. The stock warrants are convertible into equity shares of the privately-held company upon achieving certain milestones. The value of the stock warrants will fluctuate primarily in relation to the value of the privately-held company's underlying securities, either providing an appreciation in value or potentially expiring with no value. During the quarter ended September 30, 2016 , no gain or loss on the revaluation of stock warrants was recognized. See Note 8 - Fair Value of Notes to Condensed Consolidated Financial Statements for more information on the valuation of these securities. |
Note 11. Postemployment Benefit
Note 11. Postemployment Benefits | 3 Months Ended |
Sep. 30, 2016 | |
Postemployment Benefits [Abstract] | |
Postemployment Benefits Disclosure | Postemployment Benefits Kimball’s domestic employees participate in severance plans. These plans cover domestic employees and 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) 2016 2015 Service cost $ 119 $ 120 Interest cost 15 19 Amortization of actuarial income (145 ) (114 ) Net periodic benefit cost (income) $ (11 ) $ 25 The benefit cost (income) 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, 2016 | |
Stock Compensation Plan [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments | Stock Compensation Plan During fiscal year 2017 , the following stock compensation was awarded to officers and other key employees and to members of the Board of Directors who are not employees. All awards were granted under the Amended and Restated 2003 Stock Option and Incentive Plan. For more information on stock compensation awards, refer to our Annual Report on Form 10-K for the fiscal year ended June 30, 2016 . Type of Award Quarter Awarded Shares or Units Grant Date Fair Value (5) Annual Performance Shares (1) 1st Quarter 120,795 $11.23 - $11.77 Relative Total Shareholder Return Awards (2) 1st Quarter 39,153 $13.92 Restricted Share Units (3) 1st Quarter 116,136 $11.43 - $11.97 Unrestricted Shares (4) 1st Quarter 16,239 $11.43 (1) Annual performance shares were awarded to officers and other key employees. The number of annual performance shares to be issued will be dependent upon the Company’s return on capital during fiscal year 2017, with a percentage payout ranging from 0% to 200% of the target number set forth above. Annual performance shares vest after one year. (2) Performance units were awarded to key officers under the Company’s Relative Total Shareholder Return program. Vesting occurs at June 30, 2019. Participants will earn from 0% to 200% of the target award depending upon how the compound annual growth rate of Kimball International common stock ranks within the peer group at the end of the performance period. (3) Restricted share units were awarded to officers and key employees. Vesting occurs at June 30, 2017, June 30, 2018, and June 30, 2019. Upon vesting, the outstanding number of restricted share units and the value of dividends accumulated over the vesting period are converted to shares of common stock. (4) Unrestricted shares were awarded to non-employee members of the Board of Directors as compensation for director’s fees which are expensed over the period that directors earn the compensation. Unrestricted shares do not have vesting periods, holding periods, restrictions on sale, or other restrictions. (5) The grant date fair value of annual performance shares is based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding annual performance share awards. The grant date fair value of the Relative Total Shareholder Return awards was calculated using a Monte Carlo simulation. This valuation technique includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. The grant date fair value of the restricted share units and unrestricted shares was based on the stock price at the date of the award. |
Note 13. Variable Interest Enti
Note 13. Variable Interest Entities | 3 Months Ended |
Sep. 30, 2016 | |
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. Our involvement with VIEs consists of an investment in a privately-held company consisting of non-marketable equity securities and stock warrants, a note receivable related to the sale of an Indiana facility, and a note receivable for start-up financing of a new independent dealership. The non-marketable equity securities and stock warrants were valued at $0.5 million and $0.8 million , respectively, at September 30, 2016 and were included in the Other Assets line of the Condensed Consolidated Balance Sheets. As of June 30, 2016 , the non-marketable securities were valued at $0.5 million and were included in the Other Assets line of the Condensed Consolidated Balance Sheets. For more information related to our investment in the privately-held company, see Note 8 - Fair Value of Notes to Condensed Consolidated Financial Statements. The carrying value of the note receivable related to the sale of an Indiana facility, net of a $0.5 million allowance, was $0.8 million as of both September 30, 2016 and June 30, 2016 . For both periods, the carrying value was included on the Receivables line of our Condensed Consolidated Balance Sheets. The carrying value of the note receivable for start-up financing of a new independent dealership was $0.2 million and $0.3 million as of September 30, 2016 and June 30, 2016 , respectively, and was included on the Other Assets line of our Condensed Consolidated Balance Sheets. We have no obligation to provide additional funding to the VIEs, and thus our exposure and risk of loss related to the VIEs is limited to the carrying value of the investment and notes receivable. Financial support provided by Kimball to the VIEs was limited to the items discussed above during the quarter ended September 30, 2016 . |
Note 14. Credit Quality and All
Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable | 3 Months Ended |
Sep. 30, 2016 | |
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. We hold collateral for the note receivable from the sale of an Indiana facility thereby mitigating the risk of loss. Dealer lending represents start-up financing for a new independent dealership. As of September 30, 2016 and June 30, 2016 , Kimball had no material past due outstanding notes receivable. As of September 30, 2016 As of June 30, 2016 (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 $ 1,291 $ 489 $ 802 $ 1,302 $ 489 $ 813 Dealer Lending 247 — 247 250 — 250 Other Notes Receivable 312 137 175 333 139 194 Total $ 1,850 $ 626 $ 1,224 $ 1,885 $ 628 $ 1,257 |
Note 1. Basis of Presentation (
Note 1. Basis of Presentation (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
Basis of Presentation [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. Intercompany transactions and balances have been eliminated. Management believes the financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly the financial statements for the interim periods. The results of operations for the interim periods shown in this report are not necessarily indicative of results for any future interim period or for the entire fiscal year. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in our latest annual report on Form 10-K. |
Note 2. Recent Accounting Pro22
Note 2. Recent Accounting Pronouncements and Supplemental Information (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on the measurement of credit losses on financial instruments. Under the guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The guidance is also intended to reduce the complexity by decreasing the number of credit impairment models that entities use to account for debt instruments. The guidance is effective for our first quarter of fiscal year 2021 with early adoption in our fiscal year 2020 permitted. We have not yet determined the effect of this guidance on our consolidated financial statements. In March 2016, the FASB issued guidance on simplifying the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification on the statement of cash flows. The guidance is effective for our first quarter of fiscal year 2018 with early adoption permitted. We have not yet determined the effect of this guidance on our consolidated financial statements. In February 2016, the FASB issued guidance that revises the accounting for leases. The guidance is intended to improve financial reporting of leasing transactions by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. Leases will continue to be classified as either operating or finance leases, with the classification affecting the pattern of expense recognition in the statement of income. The guidance will also require additional disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for our first quarter of fiscal year 2020 with early adoption permitted, and is required to be applied using a modified retrospective approach to each prior reporting period. We have not yet determined the effect of this guidance on our consolidated financial statements. In January 2016, the FASB issued guidance which is intended to improve the recognition and measurement of financial instruments. The guidance revises an entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The guidance also amends certain disclosure requirements associated with the fair value of financial instruments. The guidance is effective prospectively for our first quarter of fiscal year 2019 financial statements with early adoption allowed on certain provisions. We have not yet determined the effect of this guidance on our consolidated financial statements. In November 2015, the FASB issued guidance on simplifying the balance sheet classification of deferred taxes. The guidance requires the classification of deferred tax assets and liabilities as noncurrent in a classified balance sheet. The current requirement that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not affected by this update. The guidance is effective for our first quarter of fiscal year 2018 financial statements with early adoption permitted, and allows for the use of either a prospective or retrospective transition method. We early adopted using the retrospective transition method for our fiscal year ended June 30, 2016, and thus reclassified current deferred tax assets and liabilities to noncurrent in our consolidated balance sheet as presented in our Annual Report on Form 10-K for the fiscal year ended June 30, 2016 . In July 2015, the FASB issued guidance on simplifying the measurement of inventory which applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Inventory within the scope of this update is required to be measured at the lower of cost or net realizable value, which is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The guidance does not impact inventory measured on a last-in, first-out (“LIFO”) basis. The standards update is effective prospectively for our first quarter fiscal year 2018 financial statements with early adoption permitted. We do not expect the adoption to have a material effect on our consolidated financial statements. In April 2015, the FASB issued guidance that requires debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability and further clarification guidance allows the cost of securing a revolving line of credit to be recorded as a deferred asset regardless of whether a balance is outstanding. We adopted this guidance for our first quarter of fiscal year 2017 financial statements. The adoption did not have a material effect on our consolidated financial statements. In April 2015, the FASB issued guidance on customer’s accounting for cloud computing fees and provided criteria for customers in a cloud computing arrangement to use to determine whether the arrangement includes a license of software. The guidance clarifies that a software license included in a cloud computing arrangement should be accounted for consistent with the acquisition of other software licenses, whereas a cloud computing arrangement that does not include a software license should be accounted for as a service contract. We adopted this guidance beginning in our first quarter of fiscal year 2017 using the prospective transition method. The adoption did not have a material effect on our consolidated financial statements. In June 2014, the FASB provided explicit guidance on how to account for share-based payments granted to employees in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The guidance was effective prospectively in our first quarter of fiscal year 2017. The adoption did not have a material effect on our consolidated financial statements. In May 2014, the FASB issued guidance on the recognition of revenue from contracts with customers. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. To achieve this core principle, the guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance addresses several areas including transfer of control, contracts with multiple performance obligations, and costs to obtain and fulfill contracts. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB decided to defer the effective date for this new revenue standard by one year, which will make the guidance effective for our first quarter fiscal year 2019 financial statements using either of two acceptable adoption methods: (i) retrospective adoption to each prior reporting period presented with the option to elect certain practical expedients; or (ii) adoption with the cumulative effect of initially applying the guidance recognized at the date of initial application and providing certain additional disclosures. In March 2016, the FASB issued additional guidance which further clarifies assessing whether an entity is a principal or an agent in a revenue transaction, and impacts whether an entity reports revenue on a gross or net basis; in April 2016, the FASB issued additional guidance that addresses identifying performance obligations and implementing licensing guidance; and in May 2016, the FASB issued additional guidance that clarifies collectability, noncash consideration, and other transition issues. The amendments have the same effective date and transition requirements as the new revenue standard. We have not yet selected a transition method nor determined the effect of this guidance on our consolidated financial statements. |
Notes Receivables and Trade Accounts Receivable | Notes Receivable and Trade Accounts Receivable: Notes receivable and trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. We determine on a case-by-case basis the cessation of accruing interest, the resumption of accruing interest, the method of recording payments received on nonaccrual receivables, and the delinquency status for our limited number of notes receivable. Our policy for estimating the allowance for credit losses on trade accounts receivable and notes receivable includes analysis of such items as aging, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to determine the final allowance for credit losses on the trade accounts receivable and notes receivable. Trade accounts receivable and notes receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Our limited amount of notes receivable allows management to monitor the risks, credit quality indicators, collectability, and probability of impairment on an individual basis. Adjustments to the allowance for credit losses are recorded in selling and administrative expenses. Customary terms require payment within 30 days , with terms beyond 30 days being considered extended. |
Income Taxes | Income Taxes: In determining the quarterly provision for income taxes, we use an estimated annual effective tax rate which is based on expected annual income, statutory tax rates, and available tax planning opportunities in the various jurisdictions in which we operate. Unusual or infrequently occurring items are separately recognized in the quarter in which they occur. |
Non-operating Income and Expense, net | Non-operating Income (Expense), net: The non-operating income (expense), net line item includes the impact of such items as fair value adjustments on Supplemental Employee Retirement Plan (“SERP”) investments, foreign currency rate movements, non-production rent income, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain (loss) on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. |
Note 3. Inventories (Policies)
Note 3. Inventories (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
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 Conti24
Note 5. Commitments and Contingent Liabilities (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingent Liabilities [Abstract] | |
Product Warranties | We estimate product warranty liability at the time of sale based on historical repair or replacement cost trends in conjunction with the length of the warranty offered. Management refines the warranty liability periodically based on changes in historical cost trends and in certain cases where specific warranty issues become known. |
Note 6. Restructuring (Policies
Note 6. Restructuring (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
Restructuring Expense [Abstract] | |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy | We utilize available market prices and management estimates to determine the fair value of impaired fixed assets. Restructuring activity is included in the Restructuring (Gain) Expense line item on the Company’s Condensed Consolidated Statements of Income. |
Note 8. Fair Value (Policies)
Note 8. Fair Value (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
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, 2016 . 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, 2016 . |
Fair Value of Financial Instruments Policy Continued | Financial Instruments Recognized at Fair Value: The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents: Money market funds 1 Market - Quoted market prices Cash Equivalents: Commercial paper 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Secondary market certificates of deposit 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Municipal bonds 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Derivative Assets: Stock warrants 3 Market - Stock warrants are analyzed for reasonableness on a quarterly basis. The privately-held company is currently in an early stage of start-up. The pricing of recent purchases or sales of the investment are considered, as well as positive and negative qualitative evidence, in the assessment of fair value. |
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 Condensed Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk 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 The $0.5 million investment in non-marketable equity securities of a privately-held company is accounted for using the cost method. 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 were to occur and was deemed to be other-than-temporary, the fair value of the investment would be estimated, and the amount by which the carrying value of the cost-method investment exceeds its fair value would be recorded as an impairment loss. |
Note 9. Investments (Policies)
Note 9. Investments (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
Investments [Abstract] | |
Investment, Policy [Policy Text Block] | Our investment policy dictates that municipal bonds must be investment grade quality. |
Note 12. Stock Compensation P28
Note 12. Stock Compensation Plan (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
Stock Compensation Plan [Abstract] | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | The grant date fair value of annual performance shares is based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding annual performance share awards. The grant date fair value of the Relative Total Shareholder Return awards was calculated using a Monte Carlo simulation. This valuation technique includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. The grant date fair value of the restricted share units and unrestricted shares was based on the stock price at the date of the award. |
Note 2. Recent Accounting Pro29
Note 2. Recent Accounting Pronouncements and Supplemental Information (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | |
Components of Non-operating income (expense), net | Components of the Non-operating income (expense), net line, were: Three Months Ended September 30 (Amounts in Thousands) 2016 2015 Foreign Currency Loss $ (7 ) $ (23 ) Gain (Loss) on Supplemental Employee Retirement Plan Investments 367 (575 ) Other (68 ) (91 ) Non-operating income (expense), net $ 292 $ (689 ) |
Note 3. Inventories (Tables)
Note 3. Inventories (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Inventories [Abstract] | |
Schedule of Inventory, Current | Inventory components were as follows: (Amounts in Thousands) September 30, 2016 June 30, Finished products $ 27,287 $ 26,494 Work-in-process 1,519 1,840 Raw materials 25,293 25,070 Total FIFO inventory 54,099 53,404 LIFO reserve (12,334 ) (12,466 ) Total inventory $ 41,765 $ 40,938 |
Note 4. Accumulated Other Com31
Note 4. Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | During the three months ended September 30, 2016 and September 30, 2015 the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: Accumulated Other Comprehensive Income (Amounts in Thousands) Unrealized Investment Gain (Loss) Postemployment Benefits Net Actuarial Gain (Loss) Accumulated Other Comprehensive Income Balance at June 30, 2016 $ — $ 1,311 $ 1,311 Other comprehensive income (loss) before reclassifications (14 ) 149 135 Reclassification to (earnings) loss — (89 ) (89 ) Net current-period other comprehensive income (loss) (14 ) 60 46 Balance at September 30, 2016 $ (14 ) $ 1,371 $ 1,357 Balance at June 30, 2015 $ — $ 1,229 $ 1,229 Other comprehensive income (loss) before reclassifications — 143 143 Reclassification to (earnings) loss — (70 ) (70 ) Net current-period other comprehensive income (loss) — 73 73 Balance at September 30, 2015 $ — $ 1,302 $ 1,302 |
Reclassifications from Accumulated Other Comprehensive Income | The following reclassifications were made from Accumulated Other Comprehensive Income to the Condensed Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income Three Months Ended Affected Line Item in the Condensed Consolidated Statements of Income September 30, (Amounts in Thousands) 2016 2015 Postemployment Benefits Amortization of Actuarial Gain (1) $ 92 $ 77 Cost of Sales 53 37 Selling and Administrative Expenses (56 ) (44 ) Provision for Income Taxes Total Reclassifications for the Period $ 89 $ 70 Net Income Amounts in parentheses indicate reductions to income. (1) See Note 11 - Postemployment Benefits of Notes to Condensed Consolidated Financial Statements for further information on postemployment benefit plans. |
Note 5. Commitments and Conti32
Note 5. Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingent Liabilities [Abstract] | |
Schedule of Product Warranty Liability | Changes in the product warranty accrual for the three months ended September 30, 2016 and 2015 were as follows: Three Months Ended September 30 (Amounts in Thousands) 2016 2015 Product Warranty Liability at the beginning of the period $ 2,351 $ 2,264 Additions to warranty accrual (including changes in estimates) 213 394 Settlements made (in cash or in kind) (306 ) (305 ) Product Warranty Liability at the end of the period $ 2,258 $ 2,353 |
Note 6. Restructuring (Tables)
Note 6. Restructuring (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Restructuring Expense [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Summary of Restructuring Plan: Accrued June 30, 2016 Three Months Ended September 30, 2016 Total Incurred Since Plan Announcement Total Expected Plan Costs (Amounts in Thousands) Amounts Charged / (Gain) Cash Amounts Charged Non-cash Amounts Utilized/ Cash Paid Accrued September 30, 2016 (1) Capacity Realignment and Post Falls, Idaho Exit Transition and Other Employee Costs $ 444 $ (24 ) $ — $ (224 ) $ 196 $ 4,681 $ 4,681 Asset Write-downs — — — — — 284 284 Plant Closure and Other Exit Costs 7 273 — (280 ) — 6,857 6,857 Gain on Sale of Facility — (2,081 ) — 2,081 — (2,081 ) (2,081 ) Total $ 451 $ (1,832 ) $ — $ 1,577 $ 196 $ 9,741 $ 9,741 Plane Fleet Reduction Transition and Other Employee Costs $ — $ — $ — $ — $ — $ 224 $ 224 Asset Write-downs — — — — — 822 822 Total $ — $ — $ — $ — $ — $ 1,046 $ 1,046 Total Restructuring Plan $ 451 $ (1,832 ) $ — $ 1,577 $ 196 $ 10,787 $ 10,787 (1) The accrued restructuring balance at September 30, 2016 is recorded in current liabilities. |
Note 8. Fair Value (Tables)
Note 8. Fair Value (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Fair Value [Abstract] | |
Fair Value Measurements, Recurring, Valuation Techniques | The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents: Money market funds 1 Market - Quoted market prices Cash Equivalents: Commercial paper 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Secondary market certificates of deposit 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Municipal bonds 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Derivative Assets: Stock warrants 3 Market - Stock warrants are analyzed for reasonableness on a quarterly basis. The privately-held company is currently in an early stage of start-up. The pricing of recent purchases or sales of the investment are considered, as well as positive and negative qualitative evidence, in the assessment of fair value. |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | As of September 30, 2016 and June 30, 2016 , the fair values of financial assets that are measured at fair value on a recurring basis using the market approach were as follows: (Amounts in Thousands) September 30, 2016 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 40,603 $ — $ — $ 40,603 Cash equivalents: Commercial paper — 4,000 — 4,000 Available-for-sale securities: Secondary market certificates of deposit — 9,890 — 9,890 Available-for-sale securities: Municipal bonds — 5,952 — 5,952 Trading Securities: Mutual funds in nonqualified SERP 10,624 — — 10,624 Derivatives: Stock warrants — — 750 750 Total assets at fair value $ 51,227 $ 19,842 $ 750 $ 71,819 (Amounts in Thousands) June 30, 2016 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 45,880 $ — $ — $ 45,880 Trading Securities: Mutual funds in nonqualified SERP 10,001 — — 10,001 Total assets at fair value $ 55,881 $ — $ — $ 55,881 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | Financial instruments that are not reflected in the Condensed Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk 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 9. Investments (Tables)
Note 9. Investments (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Investments [Abstract] | |
Schedule of Contractual Maturities on Investments | The contractual maturities of the Company’s investment portfolio were as follows: September 30, 2016 (Amounts in Thousands) Certificates of Deposit Municipal Bonds Within one year $ 4,286 $ 2,441 After one year through two years 5,604 3,511 Total Fair Value $ 9,890 $ 5,952 |
Unrealized Gain (Loss) on Investments | September 30, 2016 (Amounts in Thousands) Certificates of Deposit Municipal Bonds Amortized cost basis $ 9,893 $ 5,972 Unrealized holding gains 6 — Unrealized holding losses (9 ) (20 ) Fair Value $ 9,890 $ 5,952 |
Trading Securities (and Certain Trading Assets) | SERP asset and liability balances were as follows: (Amounts in Thousands) September 30, June 30, SERP investments - current asset $ 765 $ 768 SERP investments - other long-term asset 9,859 9,233 Total SERP investments $ 10,624 $ 10,001 SERP obligation - current liability $ 765 $ 768 SERP obligation - other long-term liability 9,859 9,233 Total SERP obligation $ 10,624 $ 10,001 |
Note 11. Postemployment Benef36
Note 11. Postemployment Benefits (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
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) 2016 2015 Service cost $ 119 $ 120 Interest cost 15 19 Amortization of actuarial income (145 ) (114 ) Net periodic benefit cost (income) $ (11 ) $ 25 |
Note 12. Stock Compensation P37
Note 12. Stock Compensation Plan (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Stock Compensation Plan [Abstract] | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Grants in Period | Type of Award Quarter Awarded Shares or Units Grant Date Fair Value (5) Annual Performance Shares (1) 1st Quarter 120,795 $11.23 - $11.77 Relative Total Shareholder Return Awards (2) 1st Quarter 39,153 $13.92 Restricted Share Units (3) 1st Quarter 116,136 $11.43 - $11.97 Unrestricted Shares (4) 1st Quarter 16,239 $11.43 (1) Annual performance shares were awarded to officers and other key employees. The number of annual performance shares to be issued will be dependent upon the Company’s return on capital during fiscal year 2017, with a percentage payout ranging from 0% to 200% of the target number set forth above. Annual performance shares vest after one year. (2) Performance units were awarded to key officers under the Company’s Relative Total Shareholder Return program. Vesting occurs at June 30, 2019. Participants will earn from 0% to 200% of the target award depending upon how the compound annual growth rate of Kimball International common stock ranks within the peer group at the end of the performance period. (3) Restricted share units were awarded to officers and key employees. Vesting occurs at June 30, 2017, June 30, 2018, and June 30, 2019. Upon vesting, the outstanding number of restricted share units and the value of dividends accumulated over the vesting period are converted to shares of common stock. (4) Unrestricted shares were awarded to non-employee members of the Board of Directors as compensation for director’s fees which are expensed over the period that directors earn the compensation. Unrestricted shares do not have vesting periods, holding periods, restrictions on sale, or other restrictions. (5) The grant date fair value of annual performance shares is based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding annual performance share awards. The grant date fair value of the Relative Total Shareholder Return awards was calculated using a Monte Carlo simulation. This valuation technique includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. The grant date fair value of the restricted share units and unrestricted shares was based on the stock price at the date of the award. |
Note 14. Credit Quality and A38
Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
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, 2016 As of June 30, 2016 (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 $ 1,291 $ 489 $ 802 $ 1,302 $ 489 $ 813 Dealer Lending 247 — 247 250 — 250 Other Notes Receivable 312 137 175 333 139 194 Total $ 1,850 $ 626 $ 1,224 $ 1,885 $ 628 $ 1,257 |
Note 2. Recent Accounting Pro39
Note 2. Recent Accounting Pronouncements and Supplemental Information - Textuals (Details) | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Accounts Receivable, Customary Payment Terms | 30 days | |
Accounts Receivable, Days Beyond Which Terms Are Considered Extended Payment Terms | 30 days | |
Effective Income Tax Rate Reconciliation, Percent | 37.80% | 38.20% |
Note 2. Recent Accounting Pro40
Note 2. Recent Accounting Pronouncements and Supplemental Information - Components of Non-operating income (expense), net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Foreign Currency Loss | $ (7) | $ (23) |
Gain (Loss) on Supplemental Employee Retirement Plan Investments | 367 | (575) |
Other | (68) | (91) |
Non-operating income (expense), net | $ 292 | $ (689) |
Note 3. Inventories - Inventory
Note 3. Inventories - Inventory Components (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Finished products | $ 27,287 | $ 26,494 |
Work-in-process | 1,519 | 1,840 |
Raw materials | 25,293 | 25,070 |
Total FIFO inventory | 54,099 | 53,404 |
LIFO reserve | (12,334) | (12,466) |
Total inventory | $ 41,765 | $ 40,938 |
Note 4. Accumulated Other Com42
Note 4. Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income at beginning of period | $ 1,311 | $ 1,229 |
Other Comprehensive Income (Loss) before Reclassifications | 135 | 143 |
Reclassification to (earnings) loss | (89) | (70) |
Net current-period other comprehensive income (loss) | 46 | 73 |
Accumulated Other Comprehensive Income at end of period | 1,357 | 1,302 |
Unrealized Investment Gain (Loss) | ||
Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income at beginning of period | 0 | 0 |
Other Comprehensive Income (Loss) before Reclassifications | (14) | 0 |
Reclassification to (earnings) loss | 0 | 0 |
Net current-period other comprehensive income (loss) | (14) | 0 |
Accumulated Other Comprehensive Income at end of period | (14) | 0 |
Postemployment Benefits, Net Actuarial Gain (Loss) | ||
Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income at beginning of period | 1,311 | 1,229 |
Other Comprehensive Income (Loss) before Reclassifications | 149 | 143 |
Reclassification to (earnings) loss | (89) | (70) |
Net current-period other comprehensive income (loss) | 60 | 73 |
Accumulated Other Comprehensive Income at end of period | $ 1,371 | $ 1,302 |
Note 4. Accumulated Other Com43
Note 4. Accumulated Other Comprehensive Income - Reclassifications from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||
Postemployment Benefits, Amortization of Actuarial Gain (Loss) | $ 145 | $ 114 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (89) | (70) |
Cost of Sales | ||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||
Postemployment Benefits, Amortization of Actuarial Gain (Loss) | 92 | 77 |
Selling and Administrative Expenses | ||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||
Postemployment Benefits, Amortization of Actuarial Gain (Loss) | 53 | 37 |
Provision for Income Taxes | ||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||
Postemployment Benefits, Amortization of Actuarial Gain (Loss) | (56) | (44) |
Net Income | ||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 89 | $ 70 |
Note 5. Commitments and Conti44
Note 5. Commitments and Contingent Liabilities - Commitments and Contingent Liabilities Textuals (Details) | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Financial Standby Letter of Credit | |
Guarantor Obligations | |
Letters of Credit, Amount | $ 1,200,000 |
Loss Contingency Accrual, at Carrying Value | 0 |
Performance Guarantee | |
Guarantor Obligations | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 1,900,000 |
Government Contracts Concentration Risk | |
Guarantor Obligations | |
Concentration Risk, Percentage | 8.80% |
GSA Contract A | |
Guarantor Obligations | |
Concentration Risk, Percentage | 5.20% |
GSA Contract B | |
Guarantor Obligations | |
Concentration Risk, Percentage | 3.60% |
Note 5. Commitments and Conti45
Note 5. Commitments and Contingent Liabilities - Product Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Product Warranty Liability at the beginning of the period | $ 2,351 | $ 2,264 |
Additions to warranty accrual (including changes in estimates) | 213 | 394 |
Settlements made (in cash or in kind) | (306) | (305) |
Product Warranty Liability at the end of the period | $ 2,258 | $ 2,353 |
Note 6. Restructuring -Textuals
Note 6. Restructuring -Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Restructuring Expense and Other Related Items | ||||
Restructuring (Gain) Expense | $ (1,832) | $ 1,186 | ||
Gain (Loss) on Disposition of Property Plant Equipment | (2,076) | $ 12 | ||
Proceeds from Sale of Buildings | 12,000 | |||
Restructuring and Related Cost, Cost Incurred to Date | $ 10,787 | |||
Percentage of Restructuring Costs Expected in Cash | 91.00% | |||
FY 2015 Post Falls Restructuring Plan | ||||
Restructuring Expense and Other Related Items | ||||
Effect on Future Earnings, Amount | $ 5,000 | |||
Achieved Annual Pre-tax Operating Income Savings | 900 | |||
Restructuring and Related Cost, Cost Incurred to Date | 9,741 | |||
FY 2015 Plane Fleet Reduction | ||||
Restructuring Expense and Other Related Items | ||||
Achieved Annual Pre-tax Operating Income Savings | 800 | |||
Restructuring and Related Cost, Cost Incurred to Date | 1,046 | |||
Transition and Other Employee Costs | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Cost Incurred to Date | 4,900 | |||
Transition and Other Employee Costs | FY 2015 Post Falls Restructuring Plan | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Cost Incurred to Date | 4,681 | |||
Transition and Other Employee Costs | FY 2015 Plane Fleet Reduction | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Cost Incurred to Date | 224 | |||
Plant Closure and Other Exit Costs | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Cost Incurred to Date | 6,900 | |||
Plant Closure and Other Exit Costs | FY 2015 Post Falls Restructuring Plan | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Cost Incurred to Date | 6,857 | |||
Asset Write-Downs | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Cost Incurred to Date | 1,100 | |||
Asset Write-Downs | FY 2015 Post Falls Restructuring Plan | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Cost Incurred to Date | 284 | |||
Asset Write-Downs | FY 2015 Plane Fleet Reduction | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Cost Incurred to Date | 822 | |||
Post Falls Land and Facility | ||||
Restructuring Expense and Other Related Items | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 2,100 | |||
Property, Plant and Equipment, Other Types | ||||
Restructuring Expense and Other Related Items | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 200 | |||
Fair Value, Measurements, Nonrecurring | Property, Plant and Equipment, Other Types | ||||
Restructuring Expense and Other Related Items | ||||
Impairment of Long-Lived Assets to be Disposed of | $ 1,100 |
Note 6. Restructuring - Restruc
Note 6. Restructuring - Restructuring Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Jun. 30, 2016 | |
Restructuring Expense and Other Related Items | ||
Restructuring Reserve | $ 196 | $ 451 |
Restructuring Reserve, Period Expense/(Income), Cash | (1,832) | |
Restructuring Reserve, Period Expense, Non-Cash | 0 | |
Restructuring Reserve, Amounts Utilized or Cash Paid | 1,577 | |
Restructuring and Related Cost, Cost Incurred to Date | 10,787 | |
Restructuring and Related Cost, Expected Cost | 10,787 | |
FY 2015 Post Falls Restructuring Plan | ||
Restructuring Expense and Other Related Items | ||
Restructuring Reserve | 196 | 451 |
Restructuring Reserve, Period Expense/(Income), Cash | (1,832) | |
Restructuring Reserve, Period Expense, Non-Cash | 0 | |
Restructuring Reserve, Amounts Utilized or Cash Paid | 1,577 | |
Restructuring and Related Cost, Cost Incurred to Date | 9,741 | |
Restructuring and Related Cost, Expected Cost | 9,741 | |
FY 2015 Plane Fleet Reduction | ||
Restructuring Expense and Other Related Items | ||
Restructuring Reserve | 0 | 0 |
Restructuring Reserve, Period Expense/(Income), Cash | 0 | |
Restructuring Reserve, Period Expense, Non-Cash | 0 | |
Restructuring Reserve, Amounts Utilized or Cash Paid | 0 | |
Restructuring and Related Cost, Cost Incurred to Date | 1,046 | |
Restructuring and Related Cost, Expected Cost | 1,046 | |
Transition and Other Employee Costs | ||
Restructuring Expense and Other Related Items | ||
Restructuring and Related Cost, Cost Incurred to Date | 4,900 | |
Transition and Other Employee Costs | FY 2015 Post Falls Restructuring Plan | ||
Restructuring Expense and Other Related Items | ||
Restructuring Reserve | 196 | 444 |
Restructuring Reserve, Period Expense/(Income), Cash | (24) | |
Restructuring Reserve, Period Expense, Non-Cash | 0 | |
Restructuring Reserve, Amounts Utilized or Cash Paid | (224) | |
Restructuring and Related Cost, Cost Incurred to Date | 4,681 | |
Restructuring and Related Cost, Expected Cost | 4,681 | |
Transition and Other Employee Costs | FY 2015 Plane Fleet Reduction | ||
Restructuring Expense and Other Related Items | ||
Restructuring Reserve | 0 | 0 |
Restructuring Reserve, Period Expense/(Income), Cash | 0 | |
Restructuring Reserve, Period Expense, Non-Cash | 0 | |
Restructuring Reserve, Amounts Utilized or Cash Paid | 0 | |
Restructuring and Related Cost, Cost Incurred to Date | 224 | |
Restructuring and Related Cost, Expected Cost | 224 | |
Asset Write-Downs | ||
Restructuring Expense and Other Related Items | ||
Restructuring and Related Cost, Cost Incurred to Date | 1,100 | |
Asset Write-Downs | FY 2015 Post Falls Restructuring Plan | ||
Restructuring Expense and Other Related Items | ||
Restructuring Reserve | 0 | 0 |
Restructuring Reserve, Period Expense/(Income), Cash | 0 | |
Restructuring Reserve, Period Expense, Non-Cash | 0 | |
Restructuring Reserve, Amounts Utilized or Cash Paid | 0 | |
Restructuring and Related Cost, Cost Incurred to Date | 284 | |
Restructuring and Related Cost, Expected Cost | 284 | |
Asset Write-Downs | FY 2015 Plane Fleet Reduction | ||
Restructuring Expense and Other Related Items | ||
Restructuring Reserve | 0 | 0 |
Restructuring Reserve, Period Expense/(Income), Cash | 0 | |
Restructuring Reserve, Period Expense, Non-Cash | 0 | |
Restructuring Reserve, Amounts Utilized or Cash Paid | 0 | |
Restructuring and Related Cost, Cost Incurred to Date | 822 | |
Restructuring and Related Cost, Expected Cost | 822 | |
Plant Closure and Other Exit Costs | ||
Restructuring Expense and Other Related Items | ||
Restructuring and Related Cost, Cost Incurred to Date | 6,900 | |
Plant Closure and Other Exit Costs | FY 2015 Post Falls Restructuring Plan | ||
Restructuring Expense and Other Related Items | ||
Restructuring Reserve | 0 | 7 |
Restructuring Reserve, Period Expense/(Income), Cash | 273 | |
Restructuring Reserve, Period Expense, Non-Cash | 0 | |
Restructuring Reserve, Amounts Utilized or Cash Paid | (280) | |
Restructuring and Related Cost, Cost Incurred to Date | 6,857 | |
Restructuring and Related Cost, Expected Cost | 6,857 | |
Gain on Sale of Facility | FY 2015 Post Falls Restructuring Plan | ||
Restructuring Expense and Other Related Items | ||
Restructuring Reserve | 0 | $ 0 |
Restructuring Reserve, Period Expense/(Income), Cash | (2,081) | |
Restructuring Reserve, Period Expense, Non-Cash | 0 | |
Restructuring Reserve, Amounts Utilized or Cash Paid | 2,081 | |
Restructuring and Related Cost, Cost Incurred to Date | (2,081) | |
Restructuring and Related Cost, Expected Cost | $ (2,081) |
Note 7. Assets Held for Sale T
Note 7. Assets Held for Sale Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | |
Long Lived Assets Held-for-sale [Line Items] | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ (2,076) | $ 12 | |
Proceeds from sales of assets | 11,306 | $ 34 | |
Assets held for sale | 0 | $ 9,164 | |
Post Falls Land and Facility | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Gain (Loss) on Disposition of Property Plant Equipment | 2,100 | ||
Proceeds from sales of assets | $ 12,000 |
Note 8. Fair Value - Recurring
Note 8. Fair Value - Recurring Fair Value Measurements (Details) - USD ($) | Sep. 30, 2016 | Jun. 30, 2016 |
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | $ 0 | |
Trading Securities: Mutual funds in nonqualified SERP | $ 10,624,000 | 10,001,000 |
Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 71,819,000 | 55,881,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 51,227,000 | 55,881,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 19,842,000 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 750,000 | 0 |
Warrant | ||
Recurring Fair Value Measurements: | ||
Derivative Asset, Fair Value, Gross Asset | 800,000 | |
Mutual Fund | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | 10,624,000 | 10,001,000 |
Mutual Fund | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | 10,624,000 | 10,001,000 |
Money Market Funds | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 40,603,000 | 45,880,000 |
Money Market Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 40,603,000 | $ 45,880,000 |
Commercial Paper | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 4,000,000 | |
Commercial Paper | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 4,000,000 | |
Certificates of Deposit | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 9,890,000 | |
Certificates of Deposit | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 9,890,000 | |
Certificates of Deposit | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 9,890,000 | |
Municipal Bonds | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 5,952,000 | |
Municipal Bonds | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 5,952,000 | |
Municipal Bonds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 5,952,000 | |
Warrant | ||
Recurring Fair Value Measurements: | ||
Derivative Asset, Fair Value, Gross Asset | 750,000 | |
Warrant | Not Designated as Hedging Instrument | Other Assets, Long Term | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Derivative Asset, Fair Value, Gross Asset | $ 750,000 |
Note 8. Fair Value - Textuals (
Note 8. Fair Value - Textuals (Details) | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Fair Value, Transfers Between Levels, Amount | $ 0 |
Investment Owned, at Cost | 1,300,000 |
Cost Method Investments | 500,000 |
Fair Value, Purchases of Level 3 Assets | 0 |
Warrant | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Derivative Asset, Fair Value, Gross Asset | $ 800,000 |
Note 9. Investments - Schedule
Note 9. Investments - Schedule of Contractual Maturities on Investments (Details) - USD ($) | Sep. 30, 2016 | Jun. 30, 2016 |
Schedule of Investments [Line Items] | ||
Available-for-sale Securities | $ 0 | |
Certificates of Deposit | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | $ 4,286,000 | |
Available-for-sale Securities, Debt Maturities, Rolling Year Two | 5,604,000 | |
Available-for-sale Securities | 9,890,000 | |
Municipal Bonds | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 2,441,000 | |
Available-for-sale Securities, Debt Maturities, Rolling Year Two | 3,511,000 | |
Available-for-sale Securities | $ 5,952,000 |
Note 9. Investments - Unrealize
Note 9. Investments - Unrealized Gain (Loss) on Investments (Details) - USD ($) | Sep. 30, 2016 | Jun. 30, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | $ 0 | |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 9,893,000 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 6,000 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (9,000) | |
Available-for-sale Securities | 9,890,000 | |
Municipal Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 5,972,000 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (20,000) | |
Available-for-sale Securities | $ 5,952,000 |
Note 9. Investments - Investmen
Note 9. Investments - Investment Portfolio Textuals (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2016 | Jun. 30, 2016 | |
Investments [Abstract] | ||
Available-for-sale Securities | $ 0 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Investment Owned, at Cost | $ 1,300,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | |
Available-for-sale Securities, Gross Realized Gain (Loss) | $ 0 |
Note 9. Investments - Supplemen
Note 9. Investments - Supplemental Employee Retirement Investments Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Trading Securities and Other Trading Assets | ||
Trading Securities, Change in net unrealized holding gains (losses) | $ (357) | $ (598) |
Note 9. Investments - Supplem55
Note 9. Investments - Supplemental Employee Retirement Plan Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | $ 10,624 | $ 10,001 |
SERP obligation | 10,624 | 10,001 |
Short-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | 765 | 768 |
SERP obligation | 765 | 768 |
Other Long-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | 9,859 | 9,233 |
SERP obligation | $ 9,859 | $ 9,233 |
Note 9. Investments - Investm56
Note 9. Investments - Investments - Non-Marketable Equity Securities Textuals (Details) $ in Millions | Sep. 30, 2016USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Investment Owned, at Cost | $ 1.3 |
Cost Method Investments | $ 0.5 |
Note 10. Derivative Instrumen57
Note 10. Derivative Instruments - Textuals (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Derivative [Line Items] | |
Investment Owned, at Cost | $ 1,300 |
Derivative, Gain (Loss) on Derivative, Net | 0 |
Warrant | |
Derivative [Line Items] | |
Derivative Asset, Fair Value, Gross Asset | $ 800 |
Note 11. Postemployment Benef58
Note 11. Postemployment Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Components of Net Periodic Benefit Cost (before tax): | ||
Service cost | $ 119 | $ 120 |
Interest cost | 15 | 19 |
Amortization of actuarial (income) loss | (145) | (114) |
Net periodic benefit cost — Total cost | $ (11) | $ 25 |
Note 12. Stock Compensation P59
Note 12. Stock Compensation Plan - Stock Compensation Awards (Details) | 3 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Annual Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock Compensation, Shares Awarded | shares | 120,795 |
Relative Total Shareholder Return | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock Compensation, Shares Awarded | shares | 39,153 |
Stock Compensation, Grant Date Fair Value | $ 13.92 |
Restricted Share Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock Compensation, Shares Awarded | shares | 116,136 |
Unrestricted Shares Director Compensation | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock Compensation, Shares Awarded | shares | 16,239 |
Stock Compensation, Grant Date Fair Value | $ 11.43 |
Minimum | Annual Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock Compensation, Grant Date Fair Value | 11.23 |
Minimum | Restricted Share Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock Compensation, Grant Date Fair Value | 11.43 |
Maximum | Annual Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock Compensation, Grant Date Fair Value | 11.77 |
Maximum | Restricted Share Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock Compensation, Grant Date Fair Value | $ 11.97 |
Note 12. Stock Compensation P60
Note 12. Stock Compensation Plan - Stock Compensation Plans Textuals (Details) | Sep. 30, 2016 |
Annual Performance Shares, Minimum Payout Percent | 0.00% |
Annual Performance Shares Maximum Payout Percent | 200.00% |
Minimum | |
Relative Total Shareholder Return, Earned Percentage, Target | 0.00% |
Maximum | |
Relative Total Shareholder Return, Earned Percentage, Target | 200.00% |
Note 13. Variable Interest En61
Note 13. Variable Interest Entities -Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Jun. 30, 2016 | |
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Related Allowance | $ 626 | $ 628 |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | ||
Variable Interest Entity | ||
Variable Interest Entity, Obligation to Provide Additional Funding, Amount | 0 | |
Note Receivable From Sale of Indiana Facility | Notes Receivable | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Related Allowance | 489 | 489 |
Notes Receivable From Dealer Lending | Notes Receivable | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Related Allowance | 0 | 0 |
Receivables | Note Receivable From Sale of Indiana Facility | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | Notes Receivable | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 800 | 800 |
Variable Interest Entity, Nonconsolidated, Related Allowance | 500 | 500 |
Other Assets | Cost-method Investments | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 500 | 500 |
Other Assets | Stock Warrant | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 800 | |
Other Assets | Notes Receivable From Dealer Lending | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | Notes Receivable | ||
Variable Interest Entity | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | $ 200 | $ 300 |
Note 14. Credit Quality and A62
Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable - Textuals (Details) - USD ($) | Sep. 30, 2016 | Jun. 30, 2016 |
Notes Receivable | ||
Notes Receivable | ||
Financing Receivable, Recorded Investment, Past Due | $ 0 | $ 0 |
Note 14. Credit Quality and A63
Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable - Credit Quality and Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Notes Receivable | ||
Notes Receivable, Unpaid Balance | $ 1,850 | $ 1,885 |
Notes Receivable, Related Allowance | 626 | 628 |
Notes Receivable, Net of Allowance | 1,224 | 1,257 |
Notes Receivable | Note Receivable From Sale of Indiana Facility | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 1,291 | 1,302 |
Notes Receivable, Related Allowance | 489 | 489 |
Notes Receivable, Net of Allowance | 802 | 813 |
Notes Receivable | Notes Receivable From Dealer Lending | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 247 | 250 |
Notes Receivable, Related Allowance | 0 | 0 |
Notes Receivable, Net of Allowance | 247 | 250 |
Notes Receivable | Other Notes Receivable | ||
Notes Receivable | ||
Notes Receivable, Unpaid Balance | 312 | 333 |
Notes Receivable, Related Allowance | 137 | 139 |
Notes Receivable, Net of Allowance | $ 175 | $ 194 |