Kimball International (KBAL) 10-Q 4 May 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	9 Months Ended
	Mar. 31, 2017	Apr. 25, 2017
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	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
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		36,960,249

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016
Current Assets:
Cash and cash equivalents	$ 59,977	$ 47,576
Short-term investments	24,492	0
Receivables, net of allowances of $1,961 and $2,145, respectively	42,274	51,710
Inventories	37,784	40,938
Prepaid expenses and other current assets	9,713	10,254
Assets held for sale	217	9,164
Total current assets	174,457	159,642
Property and Equipment, net of accumulated depreciation of $185,121 and $181,500, respectively	82,118	87,086
Intangible Assets, net of accumulated amortization of $34,923 and $35,147, respectively	2,929	3,021
Deferred Tax Assets	13,698	12,790
Other Assets	13,311	11,031
Total Assets	286,513	273,570
Current Liabilities:
Current maturities of long-term debt	30	29
Accounts payable	35,904	41,826
Customer deposits	20,848	18,625
Dividends payable	2,328	2,103
Accrued expenses	44,060	44,292
Total current liabilities	103,170	106,875
Other Liabilities:
Long-term debt, less current maturities	184	212
Other	15,989	16,615
Total other liabilities	16,173	16,827
Common stock-par value $0.05 per share:
Additional paid-in capital	3,577	2,917
Retained earnings	222,453	205,104
Accumulated other comprehensive income	1,428	1,311
Less: Treasury stock, at cost, 5,789,000 shares and 5,512,000 shares, respectively	(62,439)	(61,615)
Total Share Owners’ Equity	167,170	149,868
Total Liabilities and Share Owners’ Equity	286,513	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	Mar. 31, 2017	Jun. 30, 2016
ASSETS
Allowance for Doubtful Accounts, Premiums and Other Receivables	$ 1,961	$ 2,145
Property and Equipment Accumulated Depreciation	185,121	181,500
Intangible Assets Accumulated Amortization	$ 34,923	$ 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	42,739,000	42,733,000
Treasury Stock, Shares	5,789,000	5,512,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Net Sales	$ 153,068	$ 150,038	$ 497,951	$ 470,426
Cost of Sales	102,016	104,219	332,454	320,257
Gross Profit	51,052	45,819	165,497	150,169
Selling and Administrative Expenses	40,106	38,763	126,061	120,170
Restructuring (Gain) Expense	0	2,761	(1,832)	5,961
Operating Income	10,946	4,295	41,268	24,038
Other Income (Expense):
Interest income	136	104	345	220
Interest expense	(5)	(6)	(15)	(17)
Non-operating income (expense), net	361	51	569	(437)
Other income (expense), net	492	149	899	(234)
Income Before Taxes on Income	11,438	4,444	42,167	23,804
Provision for Income Taxes	4,207	1,687	15,221	8,923
Net Income	$ 7,231	$ 2,757	$ 26,946	$ 14,881
Basic Earnings Per Share
Earnings (Loss) Per Share, Basic	$ 0.19	$ 0.07	$ 0.72	$ 0.40
Diluted Earnings Per Share
Earnings (Loss) Per Share, Diluted	0.19	0.07	0.71	0.39
Dividends Per Share of Common Stock
Dividends Per Share of Common Stock, Declared	$ 0.060	$ 0.055	$ 0.180	$ 0.165
Average Number of Shares Outstanding:
Average Number of Shares Outstanding, Basic	37,236	37,439	37,360	37,458
Average Number of Shares Outstanding, Diluted	37,642	37,707	37,860	37,869

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Net income	$ 7,231	$ 2,757	$ 26,946	$ 14,881
Other comprehensive income (loss):
Available-for-sale securities, Pre-tax			(32)	0
Available-for-sale securities, Tax			13	0
Available-for-sale securities, Net of Tax			(19)	0
Postemployment severance actuarial change, Pre-tax	194	185	644	468
Postemployment severance actuarial change, Tax	(75)	(73)	(250)	(183)
Postemployment severance actuarial change, Net of Tax	119	112	394	285
Reclassification to (earnings) loss:
Amortization of actuarial change, Pre-tax	(134)	(112)	(422)	(331)
Amortization of actuarial change, Tax	52	44	164	129
Amortization of actuarial change, Net of Tax	(82)	(68)	(258)	(202)
Other comprehensive income (loss), Pre-tax	60	73	190	137
Other comprehensive income (loss), Tax	(23)	(29)	(73)	(54)
Other comprehensive income (loss), Net of Tax	37	44	117	83
Total comprehensive income	$ 7,268	$ 2,801	$ 27,063	$ 14,964

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows From Operating Activities:
Net income	$ 26,946	$ 14,881
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,754	11,149
(Gain) Loss on sales of assets	(2,090)	121
Restructuring and asset impairment charges	0	99
Deferred income tax and other deferred charges	(1,017)	1,434
Stock-based compensation	4,773	4,177
Excess tax benefits from stock-based compensation	0	(301)
Other, net	(862)	65
Change in operating assets and liabilities:
Receivables	9,383	14,286
Inventories	3,154	(3,083)
Prepaid expenses and other current assets	985	(3,588)
Accounts payable	(4,837)	(2,709)
Customer deposits	2,223	1,116
Accrued expenses	(674)	2,134
Net cash provided by operating activities	49,738	39,781
Cash Flows From Investing Activities:
Capital expenditures	(7,646)	(12,232)
Proceeds from sales of assets	11,734	138
Purchases of capitalized software	(703)	(924)
Purchases of available-for-sale securities	(28,449)	0
Maturities of available-for-sale securities	3,694	0
Other, net	(1,700)	(681)
Net cash used for investing activities	(23,070)	(13,699)
Cash Flows From Financing Activities:
Net change in capital leases and long-term debt	(27)	(25)
Dividends paid to Share Owners	(6,549)	(6,019)
Repurchases of Common Stock	(6,524)	(9,665)
Excess tax benefits from stock-based compensation	0	301
Repurchase of employee shares for tax withholding	(1,167)	(1,487)
Net cash used for financing activities	(14,267)	(16,895)
Net Increase in Cash and Cash Equivalents	12,401	9,187
Cash and Cash Equivalents at Beginning of Period	47,576	34,661
Cash and Cash Equivalents at End of Period	59,977	43,848
Cash paid during the period for:
Income taxes	16,433	6,505
Interest expense	$ 15	$ 17

Note 1. Basis of Presentation

Note 1. Basis of Presentation	9 Months Ended
	Mar. 31, 2017
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	9 Months Ended
	Mar. 31, 2017
Recent Accounting Pronouncements and Supplemental Information [Abstract]
Recent Accounting Pronouncements and Supplemental Information	Recent Accounting Pronouncements: In March 2017, the Financial Accounting Standards Board (“FASB”) issued guidance that will shorten the amortization period for certain callable debt securities held at a premium to the earliest call date. This guidance does not require an accounting change for securities held at a discount. This guidance is to be applied on a modified retrospective basis, with a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The guidance is effective for our first quarter fiscal year 2020 with early adoption permitted. We have not yet determined the effect of this guidance on our consolidated financial statements. In March 2017, the FASB issued guidance that requires employers that present a measure of operating income in their statement of income to include only the service cost component of net periodic benefit cost in operating expenses, which will impact the presentation of our postemployment benefit plan. Employers are required to present all other components of net benefit cost separate from the service costs and disclose the line item in which the components of net benefit cost other than the service cost are included. Retrospective application of the change in the statement of income presentation is required, while the change in capitalization of the service cost is to be applied prospectively. The guidance is effective for our first quarter fiscal year 2019 with early adoption permitted. We have not yet determined the effect of this guidance on our consolidated financial statements. In February 2017, the FASB issued guidance that clarifies the scope of guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. This new guidance is meant to clarify the scope of the original guidance that was issued in connection with the guidance relating to the recognition of revenue from contracts with customers, as defined below, which addresses recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. The guidance is effective for our first quarter fiscal year 2019 with early adoption permitted, and we are required to adopt concurrent with the adoption of the guidance on recognition of revenue from contracts with customers. We have not yet determined the effect of this guidance on our consolidated financial statements. In January 2017, the FASB issued guidance on simplifying the test for goodwill impairment by eliminating the requirement to estimate the implied fair value of a reporting unit from the goodwill impairment test. Under the guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance is effective prospectively for our first quarter of fiscal year 2021 financial statements with early adoption permitted. We do not expect the adoption to have a material effect on our consolidated financial statements as we currently do not have any goodwill. In January 2017, the FASB issued guidance which revises the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The guidance is effective for our first quarter of fiscal year 2019 with early adoption permitted and the amendments can be applied to transactions occurring before the guidance was issued as long as the applicable financial statements have not been issued. We do not expect the adoption to have a material effect on our consolidated financial statements. In November 2016, the FASB issued guidance which requires an entity to include in their cash and cash equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. The guidance is effective for our first quarter of fiscal year 2019 with early adoption permitted, and is required to be applied using a retrospective transition method to each prior reporting period. We do not expect the adoption to have a material effect on our consolidated financial statements. In June 2016, the FASB issued guidance on the measurement of credit losses on financial instruments. Under the guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The guidance is also intended to reduce the complexity by decreasing the number of credit impairment models that entities use to account for debt instruments. 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. The guidance relating to the treatment of excess tax benefits/deficiencies could have a material impact on our tax provision, while the other impacts from the guidance are not expected to have a material effect 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 are currently evaluating the impact of this guidance, but have not yet determined the effect 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 are currently evaluating the impact of this guidance, but have not yet determined the effect on our consolidated financial statements. 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 are in the process of evaluating the new guidance against our existing accounting policies and are identifying areas that will be impacted to determine the effect the guidance will have on our consolidated financial statements, and which transition method will be chosen for adoption. 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 was 36.8% and 36.1% , respectively, for the three and nine months ended March 31, 2017 , as higher taxable income generated a $0.4 million and $0.9 million higher domestic manufacturing deduction than the prior year same periods, respectively. Our effective tax rate was 38.0% and 37.5% , respectively, for the three and nine months ended March 31, 2016 , and neither of the periods 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 Nine Months Ended March 31 March 31 (Amounts in Thousands) 2017 2016 2017 2016 Foreign Currency Gain (Loss) $ (13 ) $ 28 $ (28 ) $ (12 ) Gain (Loss) on Supplemental Employee Retirement Plan Investments 473 108 869 (170 ) Other (99 ) (85 ) (272 ) (255 ) Non-operating income (expense), net $ 361 $ 51 $ 569 $ (437 )

Note 3. Inventories

Note 3. Inventories	9 Months Ended
	Mar. 31, 2017
Inventories [Abstract]
Inventory Disclosure	Inventories Inventory components were as follows: (Amounts in Thousands) March 31, 2017 June 30, Finished products $ 23,969 $ 26,494 Work-in-process 1,205 1,840 Raw materials 24,334 25,070 Total FIFO inventory 49,508 53,404 LIFO reserve (11,724 ) (12,466 ) Total inventory $ 37,784 $ 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 and nine -month periods ended March 31, 2017 and 2016 was immaterial.

Note 4. Accumulated Other Compr

Note 4. Accumulated Other Comprehensive Income	9 Months Ended
	Mar. 31, 2017
Accumulated Other Comprehensive Income [Abstract]
Accumulated Comprehensive Income	Accumulated Other Comprehensive Income During the three months ended March 31, 2017 and 2016 , the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: Accumulated Other Comprehensive Income (Amounts in Thousands) Unrealized Investment Gain (Loss) Postemployment Benefits Net Actuarial Gain (Loss) Accumulated Other Comprehensive Income Balance at December 31, 2016 $ (19 ) $ 1,410 $ 1,391 Other comprehensive income (loss) before reclassifications — 119 119 Reclassification to (earnings) loss — (82 ) (82 ) Net current-period other comprehensive income (loss) — 37 37 Balance at March 31, 2017 $ (19 ) $ 1,447 $ 1,428 Balance at December 31, 2015 $ — $ 1,268 $ 1,268 Other comprehensive income (loss) before reclassifications — 112 112 Reclassification to (earnings) loss — (68 ) (68 ) Net current-period other comprehensive income (loss) — 44 44 Balance at March 31, 2016 $ — $ 1,312 $ 1,312 During the nine months ended March 31, 2017 and 2016 , 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 (19 ) 394 375 Reclassification to (earnings) loss — (258 ) (258 ) Net current-period other comprehensive income (loss) (19 ) 136 117 Balance at March 31, 2017 $ (19 ) $ 1,447 $ 1,428 Balance at June 30, 2015 $ — $ 1,229 $ 1,229 Other comprehensive income (loss) before reclassifications — 285 285 Reclassification to (earnings) loss — (202 ) (202 ) Net current-period other comprehensive income (loss) — 83 83 Balance at March 31, 2016 $ — $ 1,312 $ 1,312 The following reclassifications were made from Accumulated Other Comprehensive Income to the Condensed Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income Three Months Ended Nine Months Ended Affected Line Item in the Condensed Consolidated Statements of Income March 31, March 31, (Amounts in Thousands) 2017 2016 2017 2016 Postemployment Benefits Amortization of Actuarial Gain (1) $ 85 $ 71 $ 268 $ 214 Cost of Sales 49 41 154 117 Selling and Administrative Expenses (52 ) (44 ) (164 ) (129 ) Provision for Income Taxes Total Reclassifications for the Period $ 82 $ 68 $ 258 $ 202 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	9 Months Ended
	Mar. 31, 2017
Commitments and Contingent Liabilities [Abstract]
Commitments and Contingencies Disclosure	Commitments and Contingent Liabilities Guarantees: Standby letters of credit were issued to lessors and insurance institutions and can only be drawn upon in the event of Kimball’s failure to pay its obligations to a beneficiary. As of March 31, 2017 , we had a maximum financial exposure from unused standby letters of credit totaling $1.3 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 a performance bond totaling $0.4 million as of March 31, 2017 . 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 March 31, 2017 with respect to the standby letters of credit or performance bond. Kimball also enters into commercial letters of credit to facilitate payments to vendors and from customers. 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. Changes in the product warranty accrual for the nine months ended March 31, 2017 and 2016 were as follows: Nine Months Ended March 31 (Amounts in Thousands) 2017 2016 Product Warranty Liability at the beginning of the period $ 2,351 $ 2,264 Additions to warranty accrual (including changes in estimates) 437 982 Settlements made (in cash or in kind) (807 ) (785 ) Product Warranty Liability at the end of the period $ 1,981 $ 2,461 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 nine months of fiscal year 2017, sales related to our GSA contracts were approximately 9.0% of total Kimball sales, with one contract accounting for approximately 5.8% of total Kimball sales and the other contract accounting for approximately 3.2% of Kimball sales.

Note 6. Restructuring

Note 6. Restructuring	9 Months Ended
	Mar. 31, 2017
Restructuring Expense [Abstract]
Restructuring and Related Activities Disclosure	Restructuring During the three months ended March 31, 2017 , we recognized no restructuring expense as the restructuring plan is complete. We recognized a pre-tax restructuring gain of $1.8 million in the nine months ended March 31, 2017 , and recognized $2.8 million and $6.0 million of restructuring expense in the three and nine months ended March 31, 2016 , respectively. 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 are expected to generate pre-tax annual savings of approximately $5 million . For our third quarter and year-to-date periods ended March 31, 2017 we achieved savings of approximately $1.3 million and approximately $3.5 million , respectively. 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. Therefore, the year-to-date period ended March 31, 2017 includes a pre-tax gain of $2.1 million as the $12.0 million selling price net of selling costs exceeded the book value of the facility and land. The 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 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 Nine Months Ended March 31, 2017 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 March 31, 2017 (1) Capacity Realignment and Post Falls, Idaho Exit Transition and Other Employee Costs $ 444 $ (24 ) $ — $ (340 ) $ 80 $ 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 ) $ — $ 1,461 $ 80 $ 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 ) $ — $ 1,461 $ 80 $ 10,787 $ 10,787 (1) The accrued restructuring balance at March 31, 2017 is recorded in current liabilities.

Note 7. Assets Held for Sale (

Note 7. Assets Held for Sale (Notes)	9 Months Ended
	Mar. 31, 2017
Assets Held for Sale [Abstract]
Disclosure of Assets Held For Sale	Assets Held for Sale At March 31, 2017 , land located in Jasper, Indiana totaling $0.2 million was classified as held for sale. 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. During the first quarter of fiscal year 2017 , we sold our Post Falls, Idaho facility and land and recognized a pre-tax gain of $2.1 million as the $12.0 million selling price exceeded the book value of the facility and land net of selling costs.

Note 8. Fair Value

Note 8. Fair Value	9 Months Ended
	Mar. 31, 2017
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 nine months ended March 31, 2017 . 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 $2.0 million in a privately-held company, consisting of $0.5 million in non-marketable equity securities invested during fiscal year 2016, and $1.5 million in stock warrants invested during the year-to-date period of fiscal year 2017. 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 and nine months ended March 31, 2017 . Financial Instruments Recognized at Fair Value: The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents: Money market funds 1 Market - Quoted market prices Cash Equivalents: Commercial paper 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Secondary market certificates of deposit 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Municipal bonds 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Government agency securities 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Derivative Assets: Stock warrants 3 Market - The privately-held company is 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 March 31, 2017 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) March 31, 2017 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 37,791 $ — $ — $ 37,791 Cash equivalents: Commercial paper — 19,385 — 19,385 Available-for-sale securities: Secondary market certificates of deposit — 9,889 — 9,889 Available-for-sale securities: Municipal bonds — 13,408 — 13,408 Available-for-sale securities: Government agency securities — 1,195 — 1,195 Trading Securities: Mutual funds in nonqualified SERP 11,099 — — 11,099 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 48,890 $ 43,877 $ 1,500 $ 94,267 (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	9 Months Ended
	Mar. 31, 2017
Investments [Abstract]
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure	Investments Investment Portfolio: During the first quarter of fiscal year 2017 we began to invest available cash into an investment portfolio. Our investment portfolio as of March 31, 2017 was comprised of municipal bonds, certificates of deposit purchased in the secondary market, and government agency securities. Municipal bonds include general obligation bonds and revenue bonds, some of which are pre-refunded. Government agency securities represent callable debt securities of a U.S. government sponsored agency. Our investment policy dictates that municipal bonds and government agency securities must be investment grade quality. Our secondary market certificates of deposit are classified as investment securities, being purchased in the secondary market through a broker and available to be sold in the secondary market. All certificates of deposit are FDIC insured. 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 (maturity dates for municipal bonds are based on pre-refunded dates and maturity dates for government agency securities are based on the first available call date): March 31, 2017 (Amounts in Thousands) Certificates of Deposit Municipal Bonds Government Agency Securities Within one year $ 6,214 $ 5,320 $ 1,195 After one year through two years 3,675 8,088 — Total Fair Value $ 9,889 $ 13,408 $ 1,195 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 available-for-sale securities. Unrealized losses on available-for-sale securities are recognized in earnings when there is intent to sell or it is likely to be required to sell before recovery of the loss, or when the available-for-sale securities have incurred a credit loss. Otherwise, unrealized gains and losses are recorded net of the tax-related effect as a component of Share Owners’ Equity. March 31, 2017 (Amounts in Thousands) Certificates of Deposit Municipal Bonds Government Agency Securities Amortized cost basis $ 9,886 $ 13,438 $ 1,200 Unrealized holding gains 3 — — Unrealized holding losses — (30 ) (5 ) Fair Value $ 9,889 $ 13,408 $ 1,195 No investments were in a continuous unrealized loss position for greater than 12 months as of March 31, 2017 . There were no realized gains or losses as a result of sales in the three and nine months ended March 31, 2017 . 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 gains (losses) for the nine months ended March 31, 2017 and 2016 were, in thousands, $533 and $(550) , respectively. SERP asset and liability balances were as follows: (Amounts in Thousands) March 31, June 30, SERP investments - current asset $ 1,213 $ 768 SERP investments - other long-term asset 9,886 9,233 Total SERP investments $ 11,099 $ 10,001 SERP obligation - current liability $ 1,213 $ 768 SERP obligation - other long-term liability 9,886 9,233 Total SERP obligation $ 11,099 $ 10,001 Non-marketable equity securities: We hold a total investment of $2.0 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. We do not hold a majority voting interest and are not the variable interest primary beneficiary of the privately-held company, thus consolidation is not required.

Note 10. Derivative Instruments

Note 10. Derivative Instruments	9 Months Ended
	Mar. 31, 2017
Derivative Instruments [Abstract]
Derivative Instruments and Hedging Activities Disclosure	Derivative Instruments Stock Warrants: We hold a total investment of $2.0 million in a privately-held company, including $1.5 million in stock warrants purchased during the year-to-date period of fiscal year 2017. The investment in stock warrants is accounted for as a derivative instrument, and is included in the Other Assets line of the Condensed Consolidated Balance Sheets. The stock warrants are convertible into equity shares of the privately-held company upon achieving certain milestones. The value of the stock warrants will fluctuate primarily in relation to the value of the privately-held company's underlying securities, either providing an appreciation in value or potentially expiring with no value. During the quarter ended March 31, 2017 , the change in fair value of the stock warrants was not significant. 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	9 Months Ended
	Mar. 31, 2017
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 Nine Months Ended March 31 March 31 (Amounts in Thousands) 2017 2016 2017 2016 Service cost $ 110 $ 122 $ 342 $ 366 Interest cost 14 19 43 58 Amortization of actuarial income (134 ) (112 ) (422 ) (331 ) Net periodic benefit cost (income) $ (10 ) $ 29 $ (37 ) $ 93 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	9 Months Ended
	Mar. 31, 2017
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 $11.21 - $11.75 Annual Performance Shares (1) 3rd Quarter 334 $16.61 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 Unrestricted Shares (4) 2nd Quarter 12,888 $12.97 Unrestricted Shares (4) 3rd Quarter 9,471 $17.73 (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, 2019, except for a new employee whose award is transitioned over June 30, 2017, June 30, 2018, and June 30, 2019 vesting periods. 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 services 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	9 Months Ended
	Mar. 31, 2017
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 notes receivable related to independent dealership financing. The non-marketable equity securities and stock warrants were recorded at $0.5 million and $1.5 million , respectively, at March 31, 2017 and were included in the Other Assets line of the Condensed Consolidated Balance Sheets. As of June 30, 2016 , the non-marketable securities were recorded 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 March 31, 2017 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 notes receivable for independent dealership financing was $0.5 million as of March 31, 2017 and was included on the Receivables and Other Assets line of our Condensed Consolidated Balance Sheets. As of June 30, 2016 , the note receivable for independent dealership financing was $0.3 million 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 March 31, 2017 .

Note 14. Credit Quality and All

Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable	9 Months Ended
	Mar. 31, 2017
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. As of March 31, 2017 and June 30, 2016 , Kimball had no material past due outstanding notes receivable. As of March 31, 2017 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 $ 1,268 $ 489 $ 779 $ 1,302 $ 489 $ 813 Independent Dealership Financing 487 — 487 250 — 250 Other Notes Receivable 143 128 15 333 139 194 Total $ 1,898 $ 617 $ 1,281 $ 1,885 $ 628 $ 1,257

Note 15. Subsequent Events (Not

Note 15. Subsequent Events (Notes)	9 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Event Subsequent to March 31, 2017, we sold our facility in Jasper, Indiana which housed an education center for dealer and employee training, a research and development center, and a product showroom. Cash proceeds received totaled $3.8 million . In order to allow for transition of those functions to our primary campus also located in Jasper, Indiana, we will lease back portions of the facility for several quarters at a favorable rate. The below-market terms for the leaseback are considered a form of continuing involvement that precludes sale treatment. Therefore we must defer the recognition of the sale for accounting purposes and as a result, in the second quarter of fiscal year 2018 we expect to recognize approximately $1.8 million of pre-tax gain on the sale. We also sold a vacant parcel of land adjacent to the facility for which we will immediately recognize $1.1 million of sales proceeds and approximately $0.9 million of pre-tax gain on the sale in the fourth quarter of fiscal year 2017.

Note 1. Basis of Presentation (

Note 1. Basis of Presentation (Policies)	9 Months Ended
	Mar. 31, 2017
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 Pro23

Note 2. Recent Accounting Pronouncements and Supplemental Information (Policies)	9 Months Ended
	Mar. 31, 2017
Recent Accounting Pronouncements and Supplemental Information [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements: In March 2017, the Financial Accounting Standards Board (“FASB”) issued guidance that will shorten the amortization period for certain callable debt securities held at a premium to the earliest call date. This guidance does not require an accounting change for securities held at a discount. This guidance is to be applied on a modified retrospective basis, with a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The guidance is effective for our first quarter fiscal year 2020 with early adoption permitted. We have not yet determined the effect of this guidance on our consolidated financial statements. In March 2017, the FASB issued guidance that requires employers that present a measure of operating income in their statement of income to include only the service cost component of net periodic benefit cost in operating expenses, which will impact the presentation of our postemployment benefit plan. Employers are required to present all other components of net benefit cost separate from the service costs and disclose the line item in which the components of net benefit cost other than the service cost are included. Retrospective application of the change in the statement of income presentation is required, while the change in capitalization of the service cost is to be applied prospectively. The guidance is effective for our first quarter fiscal year 2019 with early adoption permitted. We have not yet determined the effect of this guidance on our consolidated financial statements. In February 2017, the FASB issued guidance that clarifies the scope of guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. This new guidance is meant to clarify the scope of the original guidance that was issued in connection with the guidance relating to the recognition of revenue from contracts with customers, as defined below, which addresses recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. The guidance is effective for our first quarter fiscal year 2019 with early adoption permitted, and we are required to adopt concurrent with the adoption of the guidance on recognition of revenue from contracts with customers. We have not yet determined the effect of this guidance on our consolidated financial statements. In January 2017, the FASB issued guidance on simplifying the test for goodwill impairment by eliminating the requirement to estimate the implied fair value of a reporting unit from the goodwill impairment test. Under the guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance is effective prospectively for our first quarter of fiscal year 2021 financial statements with early adoption permitted. We do not expect the adoption to have a material effect on our consolidated financial statements as we currently do not have any goodwill. In January 2017, the FASB issued guidance which revises the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The guidance is effective for our first quarter of fiscal year 2019 with early adoption permitted and the amendments can be applied to transactions occurring before the guidance was issued as long as the applicable financial statements have not been issued. We do not expect the adoption to have a material effect on our consolidated financial statements. In November 2016, the FASB issued guidance which requires an entity to include in their cash and cash equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. The guidance is effective for our first quarter of fiscal year 2019 with early adoption permitted, and is required to be applied using a retrospective transition method to each prior reporting period. We do not expect the adoption to have a material effect on our consolidated financial statements. In June 2016, the FASB issued guidance on the measurement of credit losses on financial instruments. Under the guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The guidance is also intended to reduce the complexity by decreasing the number of credit impairment models that entities use to account for debt instruments. 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. The guidance relating to the treatment of excess tax benefits/deficiencies could have a material impact on our tax provision, while the other impacts from the guidance are not expected to have a material effect 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 are currently evaluating the impact of this guidance, but have not yet determined the effect 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 are currently evaluating the impact of this guidance, but have not yet determined the effect on our consolidated financial statements. 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 are in the process of evaluating the new guidance against our existing accounting policies and are identifying areas that will be impacted to determine the effect the guidance will have on our consolidated financial statements, and which transition method will be chosen for adoption.
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)	9 Months Ended
	Mar. 31, 2017
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 Conti25

Note 5. Commitments and Contingent Liabilities (Policies)	9 Months Ended
	Mar. 31, 2017
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)	9 Months Ended
	Mar. 31, 2017
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)	9 Months Ended
	Mar. 31, 2017
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 nine months ended March 31, 2017 . 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. Available-for-sale securities: Government agency securities 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Derivative Assets: Stock warrants 3 Market - The privately-held company is 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)	9 Months Ended
	Mar. 31, 2017
Investments [Abstract]
Investment, Policy [Policy Text Block]	Our investment policy dictates that municipal bonds and government agency securities must be investment grade quality.

Note 12. Stock Compensation P29

Note 12. Stock Compensation Plan (Policies)	9 Months Ended
	Mar. 31, 2017
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 Pro30

Note 2. Recent Accounting Pronouncements and Supplemental Information (Tables)	9 Months Ended
	Mar. 31, 2017
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 Nine Months Ended March 31 March 31 (Amounts in Thousands) 2017 2016 2017 2016 Foreign Currency Gain (Loss) $ (13 ) $ 28 $ (28 ) $ (12 ) Gain (Loss) on Supplemental Employee Retirement Plan Investments 473 108 869 (170 ) Other (99 ) (85 ) (272 ) (255 ) Non-operating income (expense), net $ 361 $ 51 $ 569 $ (437 )

Note 3. Inventories (Tables)

Note 3. Inventories (Tables)	9 Months Ended
	Mar. 31, 2017
Inventories [Abstract]
Schedule of Inventory, Current	Inventory components were as follows: (Amounts in Thousands) March 31, 2017 June 30, Finished products $ 23,969 $ 26,494 Work-in-process 1,205 1,840 Raw materials 24,334 25,070 Total FIFO inventory 49,508 53,404 LIFO reserve (11,724 ) (12,466 ) Total inventory $ 37,784 $ 40,938

Note 4. Accumulated Other Com32

Note 4. Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Mar. 31, 2017
Accumulated Other Comprehensive Income [Abstract]
Schedule of Accumulated Other Comprehensive Income	During the three months ended March 31, 2017 and 2016 , the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows: Accumulated Other Comprehensive Income (Amounts in Thousands) Unrealized Investment Gain (Loss) Postemployment Benefits Net Actuarial Gain (Loss) Accumulated Other Comprehensive Income Balance at December 31, 2016 $ (19 ) $ 1,410 $ 1,391 Other comprehensive income (loss) before reclassifications — 119 119 Reclassification to (earnings) loss — (82 ) (82 ) Net current-period other comprehensive income (loss) — 37 37 Balance at March 31, 2017 $ (19 ) $ 1,447 $ 1,428 Balance at December 31, 2015 $ — $ 1,268 $ 1,268 Other comprehensive income (loss) before reclassifications — 112 112 Reclassification to (earnings) loss — (68 ) (68 ) Net current-period other comprehensive income (loss) — 44 44 Balance at March 31, 2016 $ — $ 1,312 $ 1,312 During the nine months ended March 31, 2017 and 2016 , 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 (19 ) 394 375 Reclassification to (earnings) loss — (258 ) (258 ) Net current-period other comprehensive income (loss) (19 ) 136 117 Balance at March 31, 2017 $ (19 ) $ 1,447 $ 1,428 Balance at June 30, 2015 $ — $ 1,229 $ 1,229 Other comprehensive income (loss) before reclassifications — 285 285 Reclassification to (earnings) loss — (202 ) (202 ) Net current-period other comprehensive income (loss) — 83 83 Balance at March 31, 2016 $ — $ 1,312 $ 1,312
Reclassifications from Accumulated Other Comprehensive Income	The following reclassifications were made from Accumulated Other Comprehensive Income to the Condensed Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income Three Months Ended Nine Months Ended Affected Line Item in the Condensed Consolidated Statements of Income March 31, March 31, (Amounts in Thousands) 2017 2016 2017 2016 Postemployment Benefits Amortization of Actuarial Gain (1) $ 85 $ 71 $ 268 $ 214 Cost of Sales 49 41 154 117 Selling and Administrative Expenses (52 ) (44 ) (164 ) (129 ) Provision for Income Taxes Total Reclassifications for the Period $ 82 $ 68 $ 258 $ 202 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 Conti33

Note 5. Commitments and Contingent Liabilities (Tables)	9 Months Ended
	Mar. 31, 2017
Commitments and Contingent Liabilities [Abstract]
Schedule of Product Warranty Liability	Changes in the product warranty accrual for the nine months ended March 31, 2017 and 2016 were as follows: Nine Months Ended March 31 (Amounts in Thousands) 2017 2016 Product Warranty Liability at the beginning of the period $ 2,351 $ 2,264 Additions to warranty accrual (including changes in estimates) 437 982 Settlements made (in cash or in kind) (807 ) (785 ) Product Warranty Liability at the end of the period $ 1,981 $ 2,461

Note 6. Restructuring (Tables)

Note 6. Restructuring (Tables)	9 Months Ended
	Mar. 31, 2017
Restructuring Expense [Abstract]
Restructuring and Related Costs [Table Text Block]	Summary of Restructuring Plan: Accrued June 30, 2016 Nine Months Ended March 31, 2017 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 March 31, 2017 (1) Capacity Realignment and Post Falls, Idaho Exit Transition and Other Employee Costs $ 444 $ (24 ) $ — $ (340 ) $ 80 $ 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 ) $ — $ 1,461 $ 80 $ 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 ) $ — $ 1,461 $ 80 $ 10,787 $ 10,787 (1) The accrued restructuring balance at March 31, 2017 is recorded in current liabilities.

Note 8. Fair Value (Tables)

Note 8. Fair Value (Tables)	9 Months Ended
	Mar. 31, 2017
Fair Value [Abstract]
Fair Value Measurements, Recurring, Valuation Techniques	The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Cash Equivalents: Money market funds 1 Market - Quoted market prices Cash Equivalents: Commercial paper 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Secondary market certificates of deposit 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Municipal bonds 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Available-for-sale securities: Government agency securities 2 Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information. Trading securities: Mutual funds held in nonqualified SERP 1 Market - Quoted market prices Derivative Assets: Stock warrants 3 Market - The privately-held company is 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 March 31, 2017 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) March 31, 2017 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 37,791 $ — $ — $ 37,791 Cash equivalents: Commercial paper — 19,385 — 19,385 Available-for-sale securities: Secondary market certificates of deposit — 9,889 — 9,889 Available-for-sale securities: Municipal bonds — 13,408 — 13,408 Available-for-sale securities: Government agency securities — 1,195 — 1,195 Trading Securities: Mutual funds in nonqualified SERP 11,099 — — 11,099 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 48,890 $ 43,877 $ 1,500 $ 94,267 (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)	9 Months Ended
	Mar. 31, 2017
Investments [Abstract]
Schedule of Contractual Maturities on Investments	The contractual maturities of the Company’s investment portfolio were as follows (maturity dates for municipal bonds are based on pre-refunded dates and maturity dates for government agency securities are based on the first available call date): March 31, 2017 (Amounts in Thousands) Certificates of Deposit Municipal Bonds Government Agency Securities Within one year $ 6,214 $ 5,320 $ 1,195 After one year through two years 3,675 8,088 — Total Fair Value $ 9,889 $ 13,408 $ 1,195
Unrealized Gain (Loss) on Investments	March 31, 2017 (Amounts in Thousands) Certificates of Deposit Municipal Bonds Government Agency Securities Amortized cost basis $ 9,886 $ 13,438 $ 1,200 Unrealized holding gains 3 — — Unrealized holding losses — (30 ) (5 ) Fair Value $ 9,889 $ 13,408 $ 1,195
Trading Securities (and Certain Trading Assets)	SERP asset and liability balances were as follows: (Amounts in Thousands) March 31, June 30, SERP investments - current asset $ 1,213 $ 768 SERP investments - other long-term asset 9,886 9,233 Total SERP investments $ 11,099 $ 10,001 SERP obligation - current liability $ 1,213 $ 768 SERP obligation - other long-term liability 9,886 9,233 Total SERP obligation $ 11,099 $ 10,001

Note 11. Postemployment Benef37

Note 11. Postemployment Benefits (Tables)	9 Months Ended
	Mar. 31, 2017
Postemployment Benefits [Abstract]
Schedule of Changes in Projected Benefit Obligations	The components of net periodic postemployment benefit cost applicable to our severance plans were as follows: Three Months Ended Nine Months Ended March 31 March 31 (Amounts in Thousands) 2017 2016 2017 2016 Service cost $ 110 $ 122 $ 342 $ 366 Interest cost 14 19 43 58 Amortization of actuarial income (134 ) (112 ) (422 ) (331 ) Net periodic benefit cost (income) $ (10 ) $ 29 $ (37 ) $ 93

Note 12. Stock Compensation P38

Note 12. Stock Compensation Plan (Tables)	9 Months Ended
	Mar. 31, 2017
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 $11.21 - $11.75 Annual Performance Shares (1) 3rd Quarter 334 $16.61 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 Unrestricted Shares (4) 2nd Quarter 12,888 $12.97 Unrestricted Shares (4) 3rd Quarter 9,471 $17.73 (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, 2019, except for a new employee whose award is transitioned over June 30, 2017, June 30, 2018, and June 30, 2019 vesting periods. 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 services 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 A39

Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable (Tables)	9 Months Ended
	Mar. 31, 2017
Credit Quality and Allowance for Credit Losses of Notes Receivable [Abstract]
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent	As of March 31, 2017 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 $ 1,268 $ 489 $ 779 $ 1,302 $ 489 $ 813 Independent Dealership Financing 487 — 487 250 — 250 Other Notes Receivable 143 128 15 333 139 194 Total $ 1,898 $ 617 $ 1,281 $ 1,885 $ 628 $ 1,257

Note 2. Recent Accounting Pro40

Note 2. Recent Accounting Pronouncements and Supplemental Information - Textuals (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
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	36.80%	38.00%	36.10%	37.50%
Income Tax Reconciliation Tax Credit Domestic Manufacturing Deduction	$ 0.4		$ 0.9

Note 2. Recent Accounting Pro41

Note 2. Recent Accounting Pronouncements and Supplemental Information - Components of Non-operating income (expense), net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Foreign Currency Gain (Loss)	$ (13)	$ 28	$ (28)	$ (12)
Gain (Loss) on Supplemental Employee Retirement Plan Investments	473	108	869	(170)
Other	(99)	(85)	(272)	(255)
Non-operating income (expense), net	$ 361	$ 51	$ 569	$ (437)

Note 3. Inventories - Inventory

Note 3. Inventories - Inventory Components (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016
Finished products	$ 23,969	$ 26,494
Work-in-process	1,205	1,840
Raw materials	24,334	25,070
Total FIFO inventory	49,508	53,404
LIFO reserve	(11,724)	(12,466)
Total inventory	$ 37,784	$ 40,938

Note 4. Accumulated Other Com43

Note 4. Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income at beginning of period	$ 1,391	$ 1,268	$ 1,311	$ 1,229
Other Comprehensive Income (Loss) before Reclassifications	119	112	375	285
Reclassification to (earnings) loss	(82)	(68)	(258)	(202)
Net current-period other comprehensive income (loss)	37	44	117	83
Accumulated Other Comprehensive Income at end of period	1,428	1,312	1,428	1,312
Unrealized Investment Gain (Loss)
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income at beginning of period	(19)	0	0	0
Other Comprehensive Income (Loss) before Reclassifications	0	0	(19)	0
Reclassification to (earnings) loss	0	0	0	0
Net current-period other comprehensive income (loss)	0	0	(19)	0
Accumulated Other Comprehensive Income at end of period	(19)	0	(19)	0
Postemployment Benefits, Net Actuarial Gain (Loss)
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income at beginning of period	1,410	1,268	1,311	1,229
Other Comprehensive Income (Loss) before Reclassifications	119	112	394	285
Reclassification to (earnings) loss	(82)	(68)	(258)	(202)
Net current-period other comprehensive income (loss)	37	44	136	83
Accumulated Other Comprehensive Income at end of period	$ 1,447	$ 1,312	$ 1,447	$ 1,312

Note 4. Accumulated Other Com44

Note 4. Accumulated Other Comprehensive Income - Reclassifications from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Reclassification Adjustment from Accumulated Other Comprehensive Income
Postemployment Benefits, Amortization of Actuarial Gain	$ 134	$ 112	$ 422	$ 331
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(82)	(68)	(258)	(202)
Cost of Sales
Reclassification Adjustment from Accumulated Other Comprehensive Income
Postemployment Benefits, Amortization of Actuarial Gain	85	71	268	214
Selling and Administrative Expenses
Reclassification Adjustment from Accumulated Other Comprehensive Income
Postemployment Benefits, Amortization of Actuarial Gain	49	41	154	117
Provision for Income Taxes
Reclassification Adjustment from Accumulated Other Comprehensive Income
Postemployment Benefits, Amortization of Actuarial Gain	(52)	(44)	(164)	(129)
Net Income
Reclassification Adjustment from Accumulated Other Comprehensive Income
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	$ 82	$ 68	$ 258	$ 202

Note 5. Commitments and Conti45

Note 5. Commitments and Contingent Liabilities - Commitments and Contingent Liabilities Textuals (Details)	9 Months Ended
	Mar. 31, 2017USD ($)
Financial Standby Letter of Credit
Guarantor Obligations
Letters of Credit, Amount	$ 1,300,000
Loss Contingency Accrual, at Carrying Value	0
Performance Bond
Guarantor Obligations
Loss Contingency Accrual, at Carrying Value	0
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 400,000
Government Contracts Concentration Risk
Guarantor Obligations
Concentration Risk, Percentage	9.00%
GSA Contract A
Guarantor Obligations
Concentration Risk, Percentage	5.80%
GSA Contract B
Guarantor Obligations
Concentration Risk, Percentage	3.20%

Note 5. Commitments and Conti46

Note 5. Commitments and Contingent Liabilities - Product Warranty (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Product Warranty Liability at the beginning of the period	$ 2,351	$ 2,264
Additions to warranty accrual (including changes in estimates)	437	982
Settlements made (in cash or in kind)	(807)	(785)
Product Warranty Liability at the end of the period	$ 1,981	$ 2,461

Note 6. Restructuring -Textuals

Note 6. Restructuring -Textuals (Details) - USD ($) $ in Thousands	3 Months Ended					9 Months Ended
	Mar. 31, 2017	Sep. 30, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2017	Mar. 31, 2016
Restructuring Expense and Other Related Items
Restructuring (Gain) Expense	$ 0		$ 2,761			$ (1,832)	$ 5,961
Achieved Annual Pre-tax Operating Income Savings	1,300					3,500
Gain (Loss) on Disposition of Property Plant Equipment						(2,090)	$ 121
Proceeds from Sale of Buildings						12,000
Restructuring and Related Cost, Cost Incurred to Date	10,787					$ 10,787
Percentage of Restructuring Costs Expected in Cash						91.00%
FY 2015 Post Falls Restructuring Plan
Restructuring Expense and Other Related Items
Anticipated Annual Pre-tax Operating Income Savings						$ 5,000
Restructuring and Related Cost, Cost Incurred to Date	9,741					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					1,046
Transition and Other Employee Costs
Restructuring Expense and Other Related Items
Restructuring and Related Cost, Cost Incurred to Date	4,900					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					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					224
Plant Closure and Other Exit Costs
Restructuring Expense and Other Related Items
Restructuring and Related Cost, Cost Incurred to Date	6,900					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					6,857
Asset Write-Downs
Restructuring Expense and Other Related Items
Restructuring and Related Cost, Cost Incurred to Date	1,100					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					284
Asset Write-Downs | FY 2015 Plane Fleet Reduction
Restructuring Expense and Other Related Items
Restructuring and Related Cost, Cost Incurred to Date	$ 822					822
Post Falls Land and Facility
Restructuring Expense and Other Related Items
Gain (Loss) on Disposition of Property Plant Equipment		$ 2,100				$ 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	9 Months Ended
	Mar. 31, 2017	Jun. 30, 2016
Restructuring Expense and Other Related Items
Restructuring Reserve	$ 80	$ 451
Restructuring Reserve, Period Expense/(Income), Cash	(1,832)
Restructuring Reserve, Period Expense, Non-Cash	0
Restructuring Reserve, Amounts Utilized or Cash Paid	1,461
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	80	451
Restructuring Reserve, Period Expense/(Income), Cash	(1,832)
Restructuring Reserve, Period Expense, Non-Cash	0
Restructuring Reserve, Amounts Utilized or Cash Paid	1,461
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	80	444
Restructuring Reserve, Period Expense/(Income), Cash	(24)
Restructuring Reserve, Period Expense, Non-Cash	0
Restructuring Reserve, Amounts Utilized or Cash Paid	(340)
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	9 Months Ended
	Sep. 30, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016
Long Lived Assets Held-for-sale [Line Items]
Gain (Loss) on Disposition of Property Plant Equipment		$ (2,090)	$ 121
Proceeds from sales of assets		11,734	$ 138
Assets held for sale		217		$ 9,164
Jasper, Indiana Land
Long Lived Assets Held-for-sale [Line Items]
Assets held for sale		200
Post Falls Land and Facility
Long Lived Assets Held-for-sale [Line Items]
Gain (Loss) on Disposition of Property Plant Equipment	$ 2,100	$ 2,100
Proceeds from sales of assets	$ 12,000
Assets held for sale				$ 9,200

Note 8. Fair Value - Recurring

Note 8. Fair Value - Recurring Fair Value Measurements (Details) - USD ($)	Mar. 31, 2017	Jun. 30, 2016
Recurring Fair Value Measurements:
Available-for-sale Securities		$ 0
Trading Securities: Mutual funds in nonqualified SERP	$ 11,099,000	10,001,000
Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Total assets at fair value	94,267,000	55,881,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Recurring Fair Value Measurements:
Total assets at fair value	48,890,000	55,881,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Recurring Fair Value Measurements:
Total assets at fair value	43,877,000	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Recurring Fair Value Measurements:
Total assets at fair value	1,500,000	0
Warrant
Recurring Fair Value Measurements:
Derivative Asset, Fair Value, Gross Asset	1,500,000
Mutual Fund | Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Trading Securities: Mutual funds in nonqualified SERP	11,099,000	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	11,099,000	10,001,000
Money Market Funds | Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Cash equivalents	37,791,000	45,880,000
Money Market Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Recurring Fair Value Measurements:
Cash equivalents	37,791,000	$ 45,880,000
Commercial Paper | Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Cash equivalents	19,385,000
Commercial Paper | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Recurring Fair Value Measurements:
Cash equivalents	19,385,000
Certificates of Deposit
Recurring Fair Value Measurements:
Available-for-sale Securities	9,889,000
Certificates of Deposit | Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Available-for-sale Securities	9,889,000
Certificates of Deposit | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Recurring Fair Value Measurements:
Available-for-sale Securities	9,889,000
Municipal Bonds
Recurring Fair Value Measurements:
Available-for-sale Securities	13,408,000
Municipal Bonds | Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Available-for-sale Securities	13,408,000
Municipal Bonds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Recurring Fair Value Measurements:
Available-for-sale Securities	13,408,000
Government Agencies
Recurring Fair Value Measurements:
Available-for-sale Securities	1,195,000
Government Agencies | Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Available-for-sale Securities	1,195,000
Government Agencies | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Recurring Fair Value Measurements:
Available-for-sale Securities	1,195,000
Warrant | Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Derivative Asset, Fair Value, Gross Asset	1,500,000
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	$ 1,500,000

Note 8. Fair Value - Textuals (

Note 8. Fair Value - Textuals (Details)	3 Months Ended
	Mar. 31, 2017USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount	$ 0
Fair Value, Transfers Between Levels, Amount	0
Investment Owned, at Cost	2,000,000
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	$ 1,500,000

Note 9. Investments - Schedule

Note 9. Investments - Schedule of Contractual Maturities on Investments (Details) - USD ($)	Mar. 31, 2017	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	$ 6,214,000
Available-for-sale Securities, Debt Maturities, Rolling Year Two	3,675,000
Available-for-sale Securities	9,889,000
Municipal Bonds
Schedule of Investments [Line Items]
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	5,320,000
Available-for-sale Securities, Debt Maturities, Rolling Year Two	8,088,000
Available-for-sale Securities	13,408,000
US Government Agency Securities
Schedule of Investments [Line Items]
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	1,195,000
Available-for-sale Securities, Debt Maturities, Rolling Year Two	0
Available-for-sale Securities	$ 1,195,000

Note 9. Investments - Unrealize

Note 9. Investments - Unrealized Gain (Loss) on Investments (Details) - USD ($)	Mar. 31, 2017	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	$ 9,886,000
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	3,000
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	0
Available-for-sale Securities	9,889,000
Municipal Bonds
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	13,438,000
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(30,000)
Available-for-sale Securities	13,408,000
US Government Agency Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	1,200,000
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(5,000)
Available-for-sale Securities	$ 1,195,000

Note 9. Investments - Investmen

Note 9. Investments - Investment Portfolio Textuals (Details) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2017	Jun. 30, 2016
Investments [Abstract]
Available-for-sale Securities			$ 0
Schedule of Available-for-sale Securities [Line Items]
Investment Owned, at Cost	$ 2,000,000	$ 2,000,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	0
Available-for-sale Securities, Gross Realized Gain (Loss)	$ 0	$ 0

Note 9. Investments - Supplemen

Note 9. Investments - Supplemental Employee Retirement Investments Textuals (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Schedule of Trading Securities and Other Trading Assets
Trading Securities, Change in net unrealized holding gains (losses)	$ 533	$ (550)

Note 9. Investments - Supplem56

Note 9. Investments - Supplemental Employee Retirement Plan Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016
Schedule of Trading Securities and Other Trading Assets
SERP investments	$ 11,099	$ 10,001
SERP obligation	11,099	10,001
Short-term Investments
Schedule of Trading Securities and Other Trading Assets
SERP investments	1,213	768
SERP obligation	1,213	768
Other Long-term Investments
Schedule of Trading Securities and Other Trading Assets
SERP investments	9,886	9,233
SERP obligation	$ 9,886	$ 9,233

Note 9. Investments - Investm57

Note 9. Investments - Investments - Non-Marketable Equity Securities Textuals (Details) $ in Millions	Mar. 31, 2017USD ($)
Investments, Debt and Equity Securities [Abstract]
Investment Owned, at Cost	$ 2
Cost Method Investments	$ 0.5

Note 10. Derivative Instrumen58

Note 10. Derivative Instruments - Textuals (Details) $ in Millions	Mar. 31, 2017USD ($)
Derivative [Line Items]
Investment Owned, at Cost	$ 2
Warrant
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 1.5

Note 11. Postemployment Benef59

Note 11. Postemployment Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Components of Net Periodic Benefit Cost (before tax):
Service cost	$ 110	$ 122	$ 342	$ 366
Interest cost	14	19	43	58
Amortization of actuarial (income) loss	(134)	(112)	(422)	(331)
Net periodic benefit cost — Total cost	$ (10)	$ 29	$ (37)	$ 93

Note 12. Stock Compensation P60

Note 12. Stock Compensation Plan - Stock Compensation Awards (Details) - $ / shares	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016
Annual Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award
Stock Compensation, Shares Awarded	334		120,795
Stock Compensation, Grant Date Fair Value	$ 16.61
Relative Total Shareholder Return
Share-based Compensation Arrangement by Share-based Payment Award
Stock Compensation, Shares Awarded			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			116,136
Unrestricted Shares Director Compensation
Share-based Compensation Arrangement by Share-based Payment Award
Stock Compensation, Shares Awarded	9,471	12,888	16,239
Stock Compensation, Grant Date Fair Value	$ 17.73	$ 12.97	$ 11.43
Minimum | Annual Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award
Stock Compensation, Grant Date Fair Value			11.21
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			11.75
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 P61

Note 12. Stock Compensation Plan - Stock Compensation Plans Textuals (Details)	Mar. 31, 2017
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 En62

Note 13. Variable Interest Entities -Textuals (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2017	Jun. 30, 2016
Variable Interest Entity
Variable Interest Entity, Nonconsolidated, Related Allowance	$ 617	$ 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
Independent Dealership Financing | 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
Receivables and Other Assets | Independent Dealership Financing | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | Notes Receivable
Variable Interest Entity
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets	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	$ 1,500
Other Assets | Independent Dealership Financing | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | Notes Receivable
Variable Interest Entity
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets		$ 300

Note 14. Credit Quality and A63

Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable - Textuals (Details) - USD ($)	Mar. 31, 2017	Jun. 30, 2016
Notes Receivable
Notes Receivable
Financing Receivable, Recorded Investment, Past Due	$ 0	$ 0

Note 14. Credit Quality and A64

Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable - Credit Quality and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016
Notes Receivable
Notes Receivable, Unpaid Balance	$ 1,898	$ 1,885
Notes Receivable, Related Allowance	617	628
Notes Receivable, Net of Allowance	1,281	1,257
Notes Receivable | Note Receivable From Sale of Indiana Facility
Notes Receivable
Notes Receivable, Unpaid Balance	1,268	1,302
Notes Receivable, Related Allowance	489	489
Notes Receivable, Net of Allowance	779	813
Notes Receivable | Independent Dealership Financing
Notes Receivable
Notes Receivable, Unpaid Balance	487	250
Notes Receivable, Related Allowance	0	0
Notes Receivable, Net of Allowance	487	250
Notes Receivable | Other Notes Receivable
Notes Receivable
Notes Receivable, Unpaid Balance	143	333
Notes Receivable, Related Allowance	128	139
Notes Receivable, Net of Allowance	$ 15	$ 194

Note 15. Subsequent Events Text

Note 15. Subsequent Events Textuals (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Mar. 31, 2016
Subsequent Event [Line Items]
Gain on Disposition of Property Plant Equipment			$ 2,090	$ (121)
Proceeds from sales of assets			$ 11,734	$ 138
Jasper, Indiana Education Center, R&D Center, Product Showroom | Subsequent Event
Subsequent Event [Line Items]
Gain on Disposition of Property Plant Equipment	$ 1,800
Proceeds from sales of assets		$ 3,800
Jasper, Indiana Land | Subsequent Event
Subsequent Event [Line Items]
Gain on Disposition of Property Plant Equipment		900
Proceeds from sales of assets		$ 1,100