Kimball International (KBAL) 10-Q 2 Nov 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Sep. 30, 2017	Oct. 20, 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	Sep. 30, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A Common Stock
Document Information
Entity Common Stock, Shares Outstanding		279,533
Class B Common Stock
Document Information
Entity Common Stock, Shares Outstanding		37,197,831

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Current Assets:
Cash and cash equivalents	$ 64,250	$ 62,882
Short-term investments	33,528	35,683
Receivables, net of allowances of $1,664 and $1,626, respectively	54,262	53,909
Inventories	41,320	38,062
Prepaid expenses and other current assets	9,044	8,050
Assets held for sale	193	4,223
Total current assets	202,597	202,809
Property and Equipment, net of accumulated depreciation of $184,245 and $182,803, respectively	81,125	80,069
Intangible Assets, net of accumulated amortization of $35,443 and $35,148, respectively	2,824	2,932
Deferred Tax Assets	16,415	14,487
Other Assets	13,033	13,450
Total Assets	315,994	313,747
Current Liabilities:
Current maturities of long-term debt	26	27
Accounts payable	46,388	44,730
Customer deposits	21,079	20,516
Sale-leaseback financing obligation	3,777	3,752
Dividends payable	2,703	2,296
Accrued expenses	43,654	49,018
Total current liabilities	117,627	120,339
Other Liabilities:
Long-term debt, less current maturities	161	184
Other	16,191	17,020
Total other liabilities	16,352	17,204
Common stock-par value $0.05 per share:
Additional paid-in capital	712	2,971
Retained earnings	234,616	230,763
Accumulated other comprehensive income	1,246	1,115
Less: Treasury stock, at cost, 5,557,000 shares and 5,726,000 shares, respectively	(56,710)	(60,796)
Total Share Owners’ Equity	182,015	176,204
Total Liabilities and Share Owners’ Equity	315,994	313,747
Class A Common Stock
Common stock-par value $0.05 per share:
Common Stock	14	14
Class B Common Stock
Common stock-par value $0.05 per share:
Common Stock	$ 2,137	$ 2,137

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) Parentheticals - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
ASSETS
Allowance for Doubtful Accounts, Premiums and Other Receivables	$ 1,664	$ 1,626
Property and Equipment Accumulated Depreciation	184,245	182,803
Intangible Assets Accumulated Amortization	$ 35,443	$ 35,148
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	280,000	280,000
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	42,745,000	42,744,000
Treasury Stock, Shares	5,557,000	5,726,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Net Sales	$ 169,517	$ 174,996
Cost of Sales	109,928	116,309
Gross Profit	59,589	58,687
Selling and Administrative Expenses	43,632	43,227
Restructuring Gain	0	(1,832)
Operating Income	15,957	17,292
Other Income (Expense):
Interest income	234	110
Interest expense	(31)	(5)
Non-operating income (expense), net	286	292
Other income (expense), net	489	397
Income Before Taxes on Income	16,446	17,689
Provision for Income Taxes	5,489	6,691
Net Income	$ 10,957	$ 10,998
Earnings Per Share of Common Stock:
Basic Earnings Per Share	$ 0.29	$ 0.29
Diluted Earnings Per Share	0.29	0.29
Dividends Per Share of Common Stock
Dividends Per Share of Common Stock	$ 0.07	$ 0.06
Class A and B Common Stock:
Average Number of Shares Outstanding, Basic	37,428	37,609
Average Number of Shares Outstanding, Diluted	37,733	38,024

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Net income	$ 10,957	$ 10,998
Other comprehensive income (loss):
Available-for-sale securities, Pre-tax	14	(23)
Available-for-sale securities, Tax	(5)	9
Available-for-sale securities, Net of Tax	9	(14)
Postemployment severance actuarial change, Pre-tax	267	243
Postemployment severance actuarial change, Tax	(104)	(94)
Postemployment severance actuarial change, Net of Tax	163	149
Reclassification to (earnings) loss:
Amortization of actuarial change, Pre-tax	(67)	(145)
Amortization of actuarial change, Tax	26	56
Amortization of actuarial change, Net of Tax	(41)	(89)
Other comprehensive income (loss), Pre-tax	214	75
Other comprehensive income (loss), Tax	(83)	(29)
Other comprehensive income (loss), Net of Tax	131	46
Total comprehensive income	$ 11,088	$ 11,044

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows From Operating Activities:
Net income	$ 10,957	$ 10,998
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,668	3,935
Gain on sales of assets	(436)	(2,076)
Deferred income tax and other deferred charges	(1,976)	(1,504)
Stock-based compensation	1,536	1,779
Other, net	(100)	(819)
Change in operating assets and liabilities:
Receivables	(385)	(986)
Inventories	(3,258)	(827)
Prepaid expenses and other current assets	480	4,478
Accounts payable	2,794	594
Customer deposits	563	1,427
Accrued expenses	(6,818)	(3,987)
Net cash provided by operating activities	7,025	13,012
Cash Flows From Investing Activities:
Capital expenditures	(6,408)	(2,353)
Proceeds from sales of assets	5,405	11,306
Purchases of capitalized software	(187)	(113)
Purchases of available-for-sale securities	(6,991)	(15,899)
Maturities of available-for-sale securities	8,977	0
Other, net	(48)	(702)
Net cash provided by (used for) investing activities	748	(7,761)
Cash Flows From Financing Activities:
Net change in capital leases and long-term debt	1	(22)
Dividends paid to Share Owners	(2,234)	(2,060)
Repurchases of Common Stock	(1,746)	(2,717)
Repurchase of employee shares for tax withholding	(2,426)	(1,167)
Net cash used for financing activities	(6,405)	(5,966)
Net Increase (Decrease) in Cash and Cash Equivalents	1,368	(715)
Cash and Cash Equivalents at Beginning of Period	62,882	47,576
Cash and Cash Equivalents at End of Period	64,250	46,861
Cash paid during the period for:
Income taxes	938	321
Interest expense	$ 31	$ 5

Note 1. Basis of Presentation

Note 1. Basis of Presentation	3 Months Ended
	Sep. 30, 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 International,” “we,” “us,” or “our”) have been prepared in accordance with the instructions to Form 10-Q. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted, although we believe that the disclosures are adequate to make the information presented not misleading. Intercompany transactions and balances have been eliminated. Management believes the financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly the financial statements for the interim periods. The results of operations for the interim periods shown in this report are not necessarily indicative of results for any future interim period or for the entire fiscal year. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in our latest annual report on Form 10-K.

Note 2. Recent Accounting Prono

Note 2. Recent Accounting Pronouncements and Supplemental Information	3 Months Ended
	Sep. 30, 2017
Recent Accounting Pronouncements and Supplemental Information [Abstract]
Recent Accounting Pronouncements and Supplemental Information	Recent Accounting Pronouncements: In May 2017, the Financial Accounting Standards Board (“FASB”) issued guidance that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance is effective for our first quarter of fiscal year 2019 with early adoption permitted and will be applied prospectively to an award modified on or after the adoption date. We do not expect the adoption to have a material effect on our consolidated financial statements. In March 2017, the 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 of 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. The guidance also allows only the service cost component to be eligible for capitalization. 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 of 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 of 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 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 guidance was adopted prospectively in our first quarter of fiscal year 2018 and 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 of 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 for the first three months of fiscal year 2018 of 33.4% was favorably impacted by excess tax benefits from stock award vesting. Our effective tax rate for the first three months of fiscal year 2017 was 37.8% and did not include any 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, investment gain or loss, non-production rent income, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain or loss on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses. Components of the Non-operating income (expense), net line, were: Three Months Ended September 30 (Amounts in Thousands) 2017 2016 Foreign Currency Gain (Loss) $ 17 $ (7 ) Gain on Supplemental Employee Retirement Plan Investments 351 367 Other (82 ) (68 ) Non-operating income (expense), net $ 286 $ 292

Note 3. Inventories

Note 3. Inventories	3 Months Ended
	Sep. 30, 2017
Inventories [Abstract]
Inventory Disclosure	Inventories Inventory components were as follows: (Amounts in Thousands) September 30, 2017 June 30, Finished products $ 26,446 $ 24,537 Work-in-process 1,266 1,346 Raw materials 26,953 25,368 Total FIFO inventory 54,665 51,251 LIFO reserve (13,345 ) (13,189 ) Total inventory $ 41,320 $ 38,062 For interim reporting, LIFO inventories are computed based on quantities as of the end of the quarter and interim changes in price levels. Changes in quantities and price levels are reflected in the interim financial statements in the period in which they occur, except in cases where LIFO inventory liquidations are expected to be reinstated by fiscal year end. The earnings impact of LIFO inventory liquidations during the three -month periods ended September 30, 2017 and 2016 was immaterial.

Note 4. Accumulated Other Compr

Note 4. Accumulated Other Comprehensive Income	3 Months Ended
	Sep. 30, 2017
Accumulated Other Comprehensive Income [Abstract]
Accumulated Comprehensive Income	Accumulated Other Comprehensive Income During the three months ended September 30, 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, 2017 $ (21 ) $ 1,136 $ 1,115 Other comprehensive income (loss) before reclassifications 9 163 172 Reclassification to (earnings) loss — (41 ) (41 ) Net current-period other comprehensive income (loss) 9 122 131 Balance at September 30, 2017 $ (12 ) $ 1,258 $ 1,246 Balance at June 30, 2016 $ — $ 1,311 $ 1,311 Other comprehensive income (loss) before reclassifications (14 ) 149 135 Reclassification to (earnings) loss — (89 ) (89 ) Net current-period other comprehensive income (loss) (14 ) 60 46 Balance at September 30, 2016 $ (14 ) $ 1,371 $ 1,357 The following reclassifications were made from Accumulated Other Comprehensive Income to the Condensed Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income Three Months Ended Affected Line Item in the Condensed Consolidated Statements of Income September 30, (Amounts in Thousands) 2017 2016 Postemployment Benefits Amortization of Actuarial Gain (1) $ 44 $ 92 Cost of Sales 23 53 Selling and Administrative Expenses (26 ) (56 ) Provision for Income Taxes Total Reclassifications for the Period $ 41 $ 89 Net Income Amounts in parentheses indicate reductions to income. (1) See Note 11 - Postemployment Benefits of Notes to Condensed Consolidated Financial Statements for further information on postemployment benefit plans.

Note 5. Commitments and Conting

Note 5. Commitments and Contingent Liabilities	3 Months Ended
	Sep. 30, 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 our failure to pay our obligations to a beneficiary. As of September 30, 2017 , we had a maximum financial exposure from unused standby letters of credit totaling $1.2 million . We are not aware of circumstances that would require us to perform under these arrangements and believe that the resolution of any claims that might arise in the future, either individually or in the aggregate, would not materially affect our consolidated financial statements. Accordingly, no liability has been recorded as of September 30, 2017 with respect to the standby letters of credit. We also enter into commercial letters of credit to facilitate payments to vendors and from customers. Product Warranties: We 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 three months ended September 30, 2017 and 2016 were as follows: Three Months Ended September 30 (Amounts in Thousands) 2017 2016 Product Warranty Liability at the beginning of the period $ 1,992 $ 2,351 Additions to warranty accrual (including changes in estimates) 313 213 Settlements made (in cash or in kind) (146 ) (306 ) Product Warranty Liability at the end of the period $ 2,159 $ 2,258 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, have met with government officials as requested on two occasions, and 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. 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 three months of fiscal year 2018, sales related to our GSA contracts were approximately 9.1% of our consolidated sales, with one contract accounting for approximately 6.4% of our consolidated sales and the other contract accounting for approximately 2.7% of our consolidated sales.

Note 6. Restructuring

Note 6. Restructuring	3 Months Ended
	Sep. 30, 2017
Restructuring Expense [Abstract]
Restructuring and Related Activities Disclosure	Restructuring During the quarter ended September 30, 2016, we completed our 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. During the three months ended September 30, 2017 , we recognized no restructuring expense as the restructuring plan was complete, and we recognized a pre-tax restructuring gain of $1.8 million in the three months ended September 30, 2016 which included a gain on the sale of the Post Falls facility. Restructuring activity is included in the Restructuring Gain line item on our Condensed Consolidated Statements of Income.

Note 7. Assets Held for Sale (

Note 7. Assets Held for Sale (Notes)	3 Months Ended
	Sep. 30, 2017
Assets Held for Sale [Abstract]
Disclosure of Assets Held For Sale	Assets Held for Sale At September 30, 2017 , land located in Jasper, Indiana and over-the-road tractors totaling $0.2 million were classified as held for sale. At June 30, 2017 , our fleet of over-the-road tractors and trailers which have been outsourced and a small parcel of land located in Jasper, Indiana totaling $4.2 million were classified as held for sale. During the first quarter of fiscal year 2018 , we sold substantially all of our over-the-road tractors and trailers and the small parcel of land and recognized a pre-tax gain of $0.4 million as the $4.6 million selling price exceeded the book value net of selling costs.

Note 8. Fair Value

Note 8. Fair Value	3 Months Ended
	Sep. 30, 2017
Fair Value [Abstract]
Fair Value Disclosures	Fair Value We categorize assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas level 3 generally requires significant management judgment. The three levels are defined as follows: • Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2: Observable inputs other than those included in level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. Our policy is to recognize transfers between these levels as of the end of each quarterly reporting period. There were no transfers between these levels during the three months ended September 30, 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, 2017 . We hold a total investment of $2.0 million in a privately-held company, consisting of $0.5 million in non-marketable equity securities and $1.5 million in stock warrants. 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 purchases or sales of level 3 assets occurred during the three months ended September 30, 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 September 30, 2017 and June 30, 2017 , the fair values of financial assets that are measured at fair value on a recurring basis using the market approach are categorized as follows: (Amounts in Thousands) September 30, 2017 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 33,343 $ — $ — $ 33,343 Cash equivalents: Commercial paper — 26,836 — 26,836 Available-for-sale securities: Secondary market certificates of deposit — 11,162 — 11,162 Available-for-sale securities: Municipal bonds — 19,172 — 19,172 Available-for-sale securities: Government agencies — 3,194 — 3,194 Trading Securities: Mutual funds in nonqualified SERP 11,868 — — 11,868 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 45,211 $ 60,364 $ 1,500 $ 107,075 (Amounts in Thousands) June 30, 2017 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 30,383 $ — $ — $ 30,383 Cash equivalents: Commercial paper — 29,102 — 29,102 Available-for-sale securities: Secondary market certificates of deposit — 10,336 — 10,336 Available-for-sale securities: Municipal bonds — 22,154 — 22,154 Available-for-sale securities: Government agencies — 3,193 — 3,193 Trading Securities: Mutual funds in nonqualified SERP 11,194 — — 11,194 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 41,577 $ 64,785 $ 1,500 $ 107,862 The nonqualified supplemental employee retirement plan (“SERP”) assets consist primarily of equity funds, balanced funds, target date funds, a bond fund, and a money market fund. The SERP investment assets are offset by a SERP liability which represents our obligation to distribute SERP funds to participants. See Note 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 International’s non-performance risk The investment in non-marketable equity securities is accounted for using the cost method because we do not have the ability to exercise significant influence over the operating and financial policies of the investee. On a periodic basis, but no less frequently than quarterly, these investments are assessed for impairment when there are events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. If a significant adverse effect on the fair value of the investment were to occur and was deemed to be other-than-temporary, the fair value of the investment would be estimated, and the amount by which the carrying value of the cost-method investment exceeds its fair value would be recorded as an impairment loss. The carrying value of our cash deposit accounts, trade accounts receivable, trade accounts payable, and dividends payable approximates fair value due to the relatively short maturity and immaterial non-performance risk.

Note 9. Investments

Note 9. Investments	3 Months Ended
	Sep. 30, 2017
Investments [Abstract]
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure	Investments Investment Portfolio: Our investment portfolio as of September 30, 2017 and June 30, 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. Our investment portfolio is available for use in current operations, therefore investments are recorded within Current Assets in the Condensed Consolidated Balance Sheets. The contractual maturities of our investment portfolio were as follows (maturity dates for municipal bonds are based on pre-refunded dates and maturity dates for government agency securities are based on the first available call date): September 30, 2017 (Amounts in Thousands) Certificates of Deposit Municipal Bonds Government Agency Securities Within one year $ 9,258 $ 13,573 $ 3,194 After one year through two years 1,904 5,599 — Total Fair Value $ 11,162 $ 19,172 $ 3,194 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. September 30, 2017 (Amounts in Thousands) Certificates of Deposit Municipal Bonds Government Agency Securities Amortized cost basis $ 11,161 $ 19,187 $ 3,200 Unrealized holding gains 1 — — Unrealized holding losses — (15 ) (6 ) Fair Value $ 11,162 $ 19,172 $ 3,194 June 30, 2017 (Amounts in Thousands) Certificates of Deposit Municipal Bonds Government Agency Securities Amortized cost basis $ 10,334 $ 22,183 $ 3,200 Unrealized holding gains 2 — — Unrealized holding losses — (29 ) (7 ) Fair Value $ 10,336 $ 22,154 $ 3,193 An immaterial amount of investments were in a continuous unrealized loss position as of September 30, 2017 . There were no realized gains or losses as a result of sales in the three months ended September 30, 2017 and September 30, 2016 . Supplemental Employee Retirement Plan Investments: We maintain 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. We recognize SERP investment assets on the Condensed Consolidated Balance Sheets at current fair value. A SERP liability of the same amount is recorded on the Condensed Consolidated Balance Sheets representing an obligation to distribute SERP funds to participants. The SERP investment assets are classified as trading, and accordingly, realized and unrealized gains and losses are recognized in 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 three months ended September 30, 2017 and 2016 were, in thousands, $299 and $(357) , respectively. SERP asset and liability balances were as follows: (Amounts in Thousands) September 30, June 30, SERP investments - current asset $ 2,733 $ 1,259 SERP investments - other long-term asset 9,135 9,935 Total SERP investments $ 11,868 $ 11,194 SERP obligation - current liability $ 2,733 $ 1,259 SERP obligation - other long-term liability 9,135 9,935 Total SERP obligation $ 11,868 $ 11,194 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. 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	3 Months Ended
	Sep. 30, 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. The investment in stock warrants is accounted for as a derivative instrument, and is included in the Other Assets line of the Condensed Consolidated Balance Sheets. The stock warrants are convertible into equity shares of the privately-held company upon achieving certain milestones. The value of the stock warrants will fluctuate primarily in relation to the value of the privately-held company's underlying securities, either providing an appreciation in value or potentially expiring with no value. During the quarter ended September 30, 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	3 Months Ended
	Sep. 30, 2017
Postemployment Benefits [Abstract]
Postemployment Benefits Disclosure	Postemployment Benefits Our domestic employees participate in severance plans which provide severance benefits to eligible employees meeting the plans’ qualifications, primarily for involuntary termination without cause. The components of net periodic postemployment benefit cost applicable to our severance plans were as follows: Three Months Ended September 30 (Amounts in Thousands) 2017 2016 Service cost $ 135 $ 119 Interest cost 21 15 Amortization of actuarial income (67 ) (145 ) Net periodic benefit cost (income) $ 89 $ (11 ) The benefit cost (income) in the above table includes only normal recurring levels of severance activity, as estimated using an actuarial method. Unusual or non-recurring severance actions are not estimable using actuarial methods and are expensed in accordance with the applicable U.S. GAAP.

Note 12. Stock Compensation Pla

Note 12. Stock Compensation Plan	3 Months Ended
	Sep. 30, 2017
Stock Compensation Plan [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments	Stock Compensation Plan Stock-based compensation expense for the three months ended September 30, 2017 and 2016 was $1.5 million and $1.8 million , respectively. The total income tax benefit for stock compensation arrangements was $1.3 million for the three months ended September 30, 2017 , which included $0.7 million of excess tax benefits from stock award vesting, and $0.7 million for the three months ended September 30, 2016 . During fiscal year 2018 , 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, 2017 . Type of Award Quarter Awarded Shares or Units Grant Date Fair Value (5) Annual Performance Shares (1) 1st Quarter 55,839 $16.52 Relative Total Shareholder Return Awards (2) 1st Quarter 26,167 $21.21 Restricted Share Units (3) 1st Quarter 51,211 $16.76 Unrestricted Shares (4) 1st Quarter 10,055 $16.97 (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 equity during fiscal year 2018, with a percentage payout ranging from 0% to 200% of the target number set forth above. The maximum number of shares that can be issued under these awards is 111,678 . Annual performance shares vest on June 30, 2018. (2) Performance units were awarded to key officers under the Company’s Relative Total Shareholder Return program. Vesting occurs at June 30, 2020. Participants will earn from 0% to 200% of the target award depending upon how the compound annual growth rate of Kimball International common stock ranks within the peer group at the end of the performance period. The maximum number of units that can be issued under these awards is 52,334 . (3) Restricted share units were awarded to officers and key employees. Vesting occurs at June 30, 2020. 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 consideration for service to Kimball International and do not have vesting periods, holding periods, restrictions on sale, or other restrictions. (5) The grant date fair value of annual performance shares is based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding annual performance share awards. The grant date fair value of the Relative Total Shareholder Return awards was calculated using a Monte Carlo simulation. This valuation technique includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends. The grant date fair value of the restricted share units and unrestricted shares was based on the stock price at the date of the award.

Note 13. Variable Interest Enti

Note 13. Variable Interest Entities	3 Months Ended
	Sep. 30, 2017
Variable Interest Entities [Abstract]
Variable Interest Entities	Variable Interest Entities Our involvement with variable interest entities (“VIEs”) is limited to situations in which we are not the primary beneficiary as we lack the power to direct the activities that most significantly impact the VIE’s economic performance. Thus, consolidation is not required. Our involvement with VIEs consists of an investment in a privately-held company consisting of non-marketable equity securities and stock warrants, and notes receivable related to independent dealership financing. The non-marketable equity securities and stock warrants were valued at $0.5 million and $1.5 million , respectively, at both September 30, 2017 and June 30, 2017 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 notes receivable for independent dealership financing were $0.8 million and $0.4 million as of September 30, 2017 and June 30, 2017 , respectively, and were included on the Receivables and 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 International to the VIEs was limited to the items discussed above during the quarter ended September 30, 2017 .

Note 14. Credit Quality and All

Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable	3 Months Ended
	Sep. 30, 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 We monitor credit quality and associated risks of notes receivable on an individual basis based on criteria such as financial stability of the party and collection experience in conjunction with general economic and market conditions. As of September 30, 2017 and June 30, 2017 , we had no material past due outstanding notes receivable. As of September 30, 2017 As of June 30, 2017 (Amounts in Thousands) Unpaid Balance Related Allowance Receivable Net of Allowance Unpaid Balance Related Allowance Receivable Net of Allowance Independent Dealership Financing $ 751 $ — $ 751 $ 433 $ — $ 433 Other Notes Receivable 135 126 9 138 126 12 Total $ 886 $ 126 $ 760 $ 571 $ 126 $ 445

Note 15. Earnings Per Share (No

Note 15. Earnings Per Share (Notes)	3 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share are based on the weighted average number of shares outstanding during the period. Diluted earnings per share are based on the weighted average number of shares outstanding plus the assumed issuance of common shares for all potentially dilutive securities. Three Months Ended September 30 (Amounts in Thousands, Except for Per Share Data) 2017 2016 Net Income $ 10,957 $ 10,998 Average Shares Outstanding for Basic EPS Calculation 37,428 37,609 Dilutive Effect of Average Outstanding Compensation Awards 305 415 Average Shares Outstanding for Diluted EPS Calculation 37,733 38,024 Basic Earnings Per Share $ 0.29 $ 0.29 Diluted Earnings Per Share $ 0.29 $ 0.29

Note 1. Basis of Presentation (

Note 1. Basis of Presentation (Policies)	3 Months Ended
	Sep. 30, 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 International,” “we,” “us,” or “our”) have been prepared in accordance with the instructions to Form 10-Q. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted, although we believe that the disclosures are adequate to make the information presented not misleading. Intercompany transactions and balances have been eliminated. Management believes the financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly the financial statements for the interim periods. The results of operations for the interim periods shown in this report are not necessarily indicative of results for any future interim period or for the entire fiscal year. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in our latest annual report on Form 10-K.

Note 2. Recent Accounting Pro23

Note 2. Recent Accounting Pronouncements and Supplemental Information (Policies)	3 Months Ended
	Sep. 30, 2017
Recent Accounting Pronouncements and Supplemental Information [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements: In May 2017, the Financial Accounting Standards Board (“FASB”) issued guidance that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance is effective for our first quarter of fiscal year 2019 with early adoption permitted and will be applied prospectively to an award modified on or after the adoption date. We do not expect the adoption to have a material effect on our consolidated financial statements. In March 2017, the 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 of 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. The guidance also allows only the service cost component to be eligible for capitalization. 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 of 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 of 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 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 guidance was adopted prospectively in our first quarter of fiscal year 2018 and 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 of 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, investment gain or loss, non-production rent income, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain or loss on SERP investments is offset by a change in the SERP liability that is recognized in selling and administrative expenses.

Note 3. Inventories (Policies)

Note 3. Inventories (Policies)	3 Months Ended
	Sep. 30, 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)	3 Months Ended
	Sep. 30, 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 8. Fair Value (Policies)

Note 8. Fair Value (Policies)	3 Months Ended
	Sep. 30, 2017
Fair Value [Abstract]
Fair Value	We categorize assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas level 3 generally requires significant management judgment. The three levels are defined as follows: • Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2: Observable inputs other than those included in level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. Our policy is to recognize transfers between these levels as of the end of each quarterly reporting period. There were no transfers between these levels during the three months ended September 30, 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, 2017 .
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 International’s non-performance risk The investment in non-marketable equity securities is accounted for using the cost method because we do not have the ability to exercise significant influence over the operating and financial policies of the investee. On a periodic basis, but no less frequently than quarterly, these investments are assessed for impairment when there are events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. If a significant adverse effect on the fair value of the investment were to occur and was deemed to be other-than-temporary, the fair value of the investment would be estimated, and the amount by which the carrying value of the cost-method investment exceeds its fair value would be recorded as an impairment loss.

Note 9. Investments (Policies)

Note 9. Investments (Policies)	3 Months Ended
	Sep. 30, 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 P28

Note 12. Stock Compensation Plan (Policies)	3 Months Ended
	Sep. 30, 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 Pro29

Note 2. Recent Accounting Pronouncements and Supplemental Information (Tables)	3 Months Ended
	Sep. 30, 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 September 30 (Amounts in Thousands) 2017 2016 Foreign Currency Gain (Loss) $ 17 $ (7 ) Gain on Supplemental Employee Retirement Plan Investments 351 367 Other (82 ) (68 ) Non-operating income (expense), net $ 286 $ 292

Note 3. Inventories (Tables)

Note 3. Inventories (Tables)	3 Months Ended
	Sep. 30, 2017
Inventories [Abstract]
Schedule of Inventory, Current	Inventory components were as follows: (Amounts in Thousands) September 30, 2017 June 30, Finished products $ 26,446 $ 24,537 Work-in-process 1,266 1,346 Raw materials 26,953 25,368 Total FIFO inventory 54,665 51,251 LIFO reserve (13,345 ) (13,189 ) Total inventory $ 41,320 $ 38,062

Note 4. Accumulated Other Com31

Note 4. Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Sep. 30, 2017
Accumulated Other Comprehensive Income [Abstract]
Schedule of Accumulated Other Comprehensive Income	During the three months ended September 30, 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, 2017 $ (21 ) $ 1,136 $ 1,115 Other comprehensive income (loss) before reclassifications 9 163 172 Reclassification to (earnings) loss — (41 ) (41 ) Net current-period other comprehensive income (loss) 9 122 131 Balance at September 30, 2017 $ (12 ) $ 1,258 $ 1,246 Balance at June 30, 2016 $ — $ 1,311 $ 1,311 Other comprehensive income (loss) before reclassifications (14 ) 149 135 Reclassification to (earnings) loss — (89 ) (89 ) Net current-period other comprehensive income (loss) (14 ) 60 46 Balance at September 30, 2016 $ (14 ) $ 1,371 $ 1,357
Reclassifications from Accumulated Other Comprehensive Income	The following reclassifications were made from Accumulated Other Comprehensive Income to the Condensed Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income Three Months Ended Affected Line Item in the Condensed Consolidated Statements of Income September 30, (Amounts in Thousands) 2017 2016 Postemployment Benefits Amortization of Actuarial Gain (1) $ 44 $ 92 Cost of Sales 23 53 Selling and Administrative Expenses (26 ) (56 ) Provision for Income Taxes Total Reclassifications for the Period $ 41 $ 89 Net Income Amounts in parentheses indicate reductions to income. (1) See Note 11 - Postemployment Benefits of Notes to Condensed Consolidated Financial Statements for further information on postemployment benefit plans.

Note 5. Commitments and Conti32

Note 5. Commitments and Contingent Liabilities (Tables)	3 Months Ended
	Sep. 30, 2017
Commitments and Contingent Liabilities [Abstract]
Schedule of Product Warranty Liability	Changes in the product warranty accrual for the three months ended September 30, 2017 and 2016 were as follows: Three Months Ended September 30 (Amounts in Thousands) 2017 2016 Product Warranty Liability at the beginning of the period $ 1,992 $ 2,351 Additions to warranty accrual (including changes in estimates) 313 213 Settlements made (in cash or in kind) (146 ) (306 ) Product Warranty Liability at the end of the period $ 2,159 $ 2,258

Note 8. Fair Value (Tables)

Note 8. Fair Value (Tables)	3 Months Ended
	Sep. 30, 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 September 30, 2017 and June 30, 2017 , the fair values of financial assets that are measured at fair value on a recurring basis using the market approach are categorized as follows: (Amounts in Thousands) September 30, 2017 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 33,343 $ — $ — $ 33,343 Cash equivalents: Commercial paper — 26,836 — 26,836 Available-for-sale securities: Secondary market certificates of deposit — 11,162 — 11,162 Available-for-sale securities: Municipal bonds — 19,172 — 19,172 Available-for-sale securities: Government agencies — 3,194 — 3,194 Trading Securities: Mutual funds in nonqualified SERP 11,868 — — 11,868 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 45,211 $ 60,364 $ 1,500 $ 107,075 (Amounts in Thousands) June 30, 2017 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 30,383 $ — $ — $ 30,383 Cash equivalents: Commercial paper — 29,102 — 29,102 Available-for-sale securities: Secondary market certificates of deposit — 10,336 — 10,336 Available-for-sale securities: Municipal bonds — 22,154 — 22,154 Available-for-sale securities: Government agencies — 3,193 — 3,193 Trading Securities: Mutual funds in nonqualified SERP 11,194 — — 11,194 Derivatives: Stock warrants — — 1,500 1,500 Total assets at fair value $ 41,577 $ 64,785 $ 1,500 $ 107,862
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 International’s non-performance risk

Note 9. Investments (Tables)

Note 9. Investments (Tables)	3 Months Ended
	Sep. 30, 2017
Investments [Abstract]
Schedule of Contractual Maturities on Investments	The contractual maturities of our 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): September 30, 2017 (Amounts in Thousands) Certificates of Deposit Municipal Bonds Government Agency Securities Within one year $ 9,258 $ 13,573 $ 3,194 After one year through two years 1,904 5,599 — Total Fair Value $ 11,162 $ 19,172 $ 3,194
Unrealized Gain (Loss) on Investments	September 30, 2017 (Amounts in Thousands) Certificates of Deposit Municipal Bonds Government Agency Securities Amortized cost basis $ 11,161 $ 19,187 $ 3,200 Unrealized holding gains 1 — — Unrealized holding losses — (15 ) (6 ) Fair Value $ 11,162 $ 19,172 $ 3,194 June 30, 2017 (Amounts in Thousands) Certificates of Deposit Municipal Bonds Government Agency Securities Amortized cost basis $ 10,334 $ 22,183 $ 3,200 Unrealized holding gains 2 — — Unrealized holding losses — (29 ) (7 ) Fair Value $ 10,336 $ 22,154 $ 3,193
Trading Securities (and Certain Trading Assets)	SERP asset and liability balances were as follows: (Amounts in Thousands) September 30, June 30, SERP investments - current asset $ 2,733 $ 1,259 SERP investments - other long-term asset 9,135 9,935 Total SERP investments $ 11,868 $ 11,194 SERP obligation - current liability $ 2,733 $ 1,259 SERP obligation - other long-term liability 9,135 9,935 Total SERP obligation $ 11,868 $ 11,194

Note 11. Postemployment Benef35

Note 11. Postemployment Benefits (Tables)	3 Months Ended
	Sep. 30, 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 September 30 (Amounts in Thousands) 2017 2016 Service cost $ 135 $ 119 Interest cost 21 15 Amortization of actuarial income (67 ) (145 ) Net periodic benefit cost (income) $ 89 $ (11 )

Note 12. Stock Compensation P36

Note 12. Stock Compensation Plan (Tables)	3 Months Ended
	Sep. 30, 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 55,839 $16.52 Relative Total Shareholder Return Awards (2) 1st Quarter 26,167 $21.21 Restricted Share Units (3) 1st Quarter 51,211 $16.76 Unrestricted Shares (4) 1st Quarter 10,055 $16.97 (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 equity during fiscal year 2018, with a percentage payout ranging from 0% to 200% of the target number set forth above. The maximum number of shares that can be issued under these awards is 111,678 . Annual performance shares vest on June 30, 2018. (2) Performance units were awarded to key officers under the Company’s Relative Total Shareholder Return program. Vesting occurs at June 30, 2020. Participants will earn from 0% to 200% of the target award depending upon how the compound annual growth rate of Kimball International common stock ranks within the peer group at the end of the performance period. The maximum number of units that can be issued under these awards is 52,334 . (3) Restricted share units were awarded to officers and key employees. Vesting occurs at June 30, 2020. 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 consideration for service to Kimball International and do not have vesting periods, holding periods, restrictions on sale, or other restrictions. (5) The grant date fair value of annual performance shares 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 A37

Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable (Tables)	3 Months Ended
	Sep. 30, 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 September 30, 2017 As of June 30, 2017 (Amounts in Thousands) Unpaid Balance Related Allowance Receivable Net of Allowance Unpaid Balance Related Allowance Receivable Net of Allowance Independent Dealership Financing $ 751 $ — $ 751 $ 433 $ — $ 433 Other Notes Receivable 135 126 9 138 126 12 Total $ 886 $ 126 $ 760 $ 571 $ 126 $ 445

Note 15. Earnings Per Share (Ta

Note 15. Earnings Per Share (Tables)	3 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Three Months Ended September 30 (Amounts in Thousands, Except for Per Share Data) 2017 2016 Net Income $ 10,957 $ 10,998 Average Shares Outstanding for Basic EPS Calculation 37,428 37,609 Dilutive Effect of Average Outstanding Compensation Awards 305 415 Average Shares Outstanding for Diluted EPS Calculation 37,733 38,024 Basic Earnings Per Share $ 0.29 $ 0.29 Diluted Earnings Per Share $ 0.29 $ 0.29

Note 2. Recent Accounting Pro39

Note 2. Recent Accounting Pronouncements and Supplemental Information - Textuals (Details)	3 Months Ended
	Sep. 30, 2017	Sep. 30, 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	33.40%	37.80%

Note 2. Recent Accounting Pro40

Note 2. Recent Accounting Pronouncements and Supplemental Information - Components of Non-operating income (expense), net (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Foreign Currency Gain (Loss)	$ 17	$ (7)
Gain on Supplemental Employee Retirement Plan Investments	351	367
Other	(82)	(68)
Non-operating income (expense), net	$ 286	$ 292

Note 3. Inventories - Inventory

Note 3. Inventories - Inventory Components (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Finished products	$ 26,446	$ 24,537
Work-in-process	1,266	1,346
Raw materials	26,953	25,368
Total FIFO inventory	54,665	51,251
LIFO reserve	(13,345)	(13,189)
Total inventory	$ 41,320	$ 38,062

Note 4. Accumulated Other Com42

Note 4. Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income at beginning of period	$ 1,115	$ 1,311
Other Comprehensive Income (Loss) before Reclassifications	172	135
Reclassification to (earnings) loss	(41)	(89)
Net current-period other comprehensive income (loss)	131	46
Accumulated Other Comprehensive Income at end of period	1,246	1,357
Unrealized Investment Gain (Loss)
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income at beginning of period	(21)	0
Other Comprehensive Income (Loss) before Reclassifications	9	(14)
Reclassification to (earnings) loss	0	0
Net current-period other comprehensive income (loss)	9	(14)
Accumulated Other Comprehensive Income at end of period	(12)	(14)
Postemployment Benefits, Net Actuarial Gain (Loss)
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income at beginning of period	1,136	1,311
Other Comprehensive Income (Loss) before Reclassifications	163	149
Reclassification to (earnings) loss	(41)	(89)
Net current-period other comprehensive income (loss)	122	60
Accumulated Other Comprehensive Income at end of period	$ 1,258	$ 1,371

Note 4. Accumulated Other Com43

Note 4. Accumulated Other Comprehensive Income - Reclassifications from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Reclassification Adjustment from Accumulated Other Comprehensive Income
Postemployment Benefits, Amortization of Actuarial Gain	$ 67	$ 145
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(41)	(89)
Cost of Sales
Reclassification Adjustment from Accumulated Other Comprehensive Income
Postemployment Benefits, Amortization of Actuarial Gain	44	92
Selling and Administrative Expenses
Reclassification Adjustment from Accumulated Other Comprehensive Income
Postemployment Benefits, Amortization of Actuarial Gain	23	53
Provision for Income Taxes
Reclassification Adjustment from Accumulated Other Comprehensive Income
Postemployment Benefits, Amortization of Actuarial Gain	(26)	(56)
Net Income
Reclassification Adjustment from Accumulated Other Comprehensive Income
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	$ 41	$ 89

Note 5. Commitments and Conti44

Note 5. Commitments and Contingent Liabilities - Commitments and Contingent Liabilities Textuals (Details)	3 Months Ended
	Sep. 30, 2017USD ($)
Government Contracts Concentration Risk
Guarantor Obligations
Concentration Risk, Percentage	9.10%
GSA Contract A
Guarantor Obligations
Concentration Risk, Percentage	6.40%
GSA Contract B
Guarantor Obligations
Concentration Risk, Percentage	2.70%
Financial Standby Letter of Credit
Guarantor Obligations
Letters of Credit, Amount	$ 1,200,000
Loss Contingency Accrual, at Carrying Value	$ 0

Note 5. Commitments and Conti45

Note 5. Commitments and Contingent Liabilities - Product Warranty (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Product Warranty Liability at the beginning of the period	$ 1,992	$ 2,351
Additions to warranty accrual (including changes in estimates)	313	213
Settlements made (in cash or in kind)	(146)	(306)
Product Warranty Liability at the end of the period	$ 2,159	$ 2,258

Note 6. Restructuring -Textuals

Note 6. Restructuring -Textuals (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Restructuring Expense [Abstract]
Restructuring Gain	$ 0	$ (1,832)

Note 7. Assets Held for Sale T

Note 7. Assets Held for Sale Textuals (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017
Long Lived Assets Held-for-sale [Line Items]
Assets held for sale	$ 193		$ 4,223
Gain (Loss) on Disposition of Property Plant Equipment	(436)	$ (2,076)
Proceeds from sales of assets	5,405	$ 11,306
Held for Sale over-the-road tractors, trailers, and land
Long Lived Assets Held-for-sale [Line Items]
Proceeds from sales of assets	$ 4,600

Note 8. Fair Value - Recurring

Note 8. Fair Value - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Recurring Fair Value Measurements:
Trading Securities: Mutual funds in nonqualified SERP	$ 11,868	$ 11,194
Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Total assets at fair value	107,075	107,862
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Recurring Fair Value Measurements:
Total assets at fair value	45,211	41,577
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Recurring Fair Value Measurements:
Total assets at fair value	60,364	64,785
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Recurring Fair Value Measurements:
Total assets at fair value	1,500	1,500
Certificates of Deposit | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Recurring Fair Value Measurements:
Available-for-sale Securities	11,162	10,336
Warrant | Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Derivative Asset, Fair Value, Gross Asset	1,500	1,500
Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Recurring Fair Value Measurements:
Derivative Asset, Fair Value, Gross Asset	0	0
Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Recurring Fair Value Measurements:
Derivative Asset, Fair Value, Gross Asset	0	0
Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Recurring Fair Value Measurements:
Derivative Asset, Fair Value, Gross Asset	1,500	1,500
Mutual Fund | Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Trading Securities: Mutual funds in nonqualified SERP	11,868	11,194
Mutual Fund | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Recurring Fair Value Measurements:
Trading Securities: Mutual funds in nonqualified SERP	11,868	11,194
Mutual Fund | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Recurring Fair Value Measurements:
Trading Securities: Mutual funds in nonqualified SERP	0	0
Mutual Fund | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Recurring Fair Value Measurements:
Trading Securities: Mutual funds in nonqualified SERP	0	0
Money Market Funds | Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Cash equivalents	33,343	30,383
Money Market Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Recurring Fair Value Measurements:
Cash equivalents	33,343	30,383
Money Market Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Recurring Fair Value Measurements:
Cash equivalents	0	0
Money Market Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Recurring Fair Value Measurements:
Cash equivalents	0	0
Commercial Paper | Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Cash equivalents	26,836	29,102
Commercial Paper | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Recurring Fair Value Measurements:
Cash equivalents	0	0
Commercial Paper | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Recurring Fair Value Measurements:
Cash equivalents	26,836	29,102
Commercial Paper | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Recurring Fair Value Measurements:
Cash equivalents	0	0
Certificates of Deposit
Recurring Fair Value Measurements:
Available-for-sale Securities	11,162	10,336
Certificates of Deposit | Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Available-for-sale Securities	11,162	10,336
Certificates of Deposit | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Recurring Fair Value Measurements:
Available-for-sale Securities	0	0
Certificates of Deposit | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Recurring Fair Value Measurements:
Available-for-sale Securities	0	0
Municipal Bonds
Recurring Fair Value Measurements:
Available-for-sale Securities	19,172	22,154
Municipal Bonds | Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Available-for-sale Securities	19,172	22,154
Municipal Bonds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Recurring Fair Value Measurements:
Available-for-sale Securities	0	0
Municipal Bonds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Recurring Fair Value Measurements:
Available-for-sale Securities	19,172	22,154
Municipal Bonds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Recurring Fair Value Measurements:
Available-for-sale Securities	0	0
Government Agencies
Recurring Fair Value Measurements:
Available-for-sale Securities	3,194	3,193
Government Agencies | Fair Value, Measurements, Recurring
Recurring Fair Value Measurements:
Available-for-sale Securities	3,194	3,193
Government Agencies | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1
Recurring Fair Value Measurements:
Available-for-sale Securities	0	0
Government Agencies | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Recurring Fair Value Measurements:
Available-for-sale Securities	3,194	3,193
Government Agencies | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Recurring Fair Value Measurements:
Available-for-sale Securities	$ 0	$ 0

Note 8. Fair Value - Textuals (

Note 8. Fair Value - Textuals (Details) - USD ($)	3 Months Ended
	Sep. 30, 2017	Jun. 30, 2017
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
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Cost Method Investments	500,000
Warrant | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative Asset, Fair Value, Gross Asset	1,500,000	$ 1,500,000
Warrant | Other Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative Asset, Fair Value, Gross Asset	1,500,000
Warrant | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative Asset, Fair Value, Gross Asset	$ 1,500,000	$ 1,500,000

Note 9. Investments - Schedule

Note 9. Investments - Schedule of Contractual Maturities on Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Certificates of Deposit
Schedule of Investments [Line Items]
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	$ 9,258
Available-for-sale Securities, Debt Maturities, Rolling Year Two	1,904
Available-for-sale Securities	11,162	$ 10,336
Municipal Bonds
Schedule of Investments [Line Items]
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	13,573
Available-for-sale Securities, Debt Maturities, Rolling Year Two	5,599
Available-for-sale Securities	19,172	22,154
US Government Agency Securities
Schedule of Investments [Line Items]
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	3,194
Available-for-sale Securities, Debt Maturities, Rolling Year Two	0
Available-for-sale Securities	$ 3,194	$ 3,193

Note 9. Investments - Unrealize

Note 9. Investments - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Certificates of Deposit
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	$ 11,161	$ 10,334
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	1	2
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	0	0
Available-for-sale Securities	11,162	10,336
Municipal Bonds
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	19,187	22,183
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(15)	(29)
Available-for-sale Securities	19,172	22,154
US Government Agency Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	3,200	3,200
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(6)	(7)
Available-for-sale Securities	$ 3,194	$ 3,193

Note 9. Investments - Investmen

Note 9. Investments - Investment Portfolio Textuals (Details) - USD ($)	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Schedule of Available-for-sale Securities [Line Items]
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	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Schedule of Trading Securities and Other Trading Assets
Trading Securities, Change in net unrealized holding gains (losses)	$ 299	$ (357)

Note 9. Investments - Supplem54

Note 9. Investments - Supplemental Employee Retirement Plan Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Schedule of Trading Securities and Other Trading Assets
SERP investments	$ 11,868	$ 11,194
SERP obligation	11,868	11,194
Short-term Investments
Schedule of Trading Securities and Other Trading Assets
SERP investments	2,733	1,259
SERP obligation	2,733	1,259
Other Long-term Investments
Schedule of Trading Securities and Other Trading Assets
SERP investments	9,135	9,935
SERP obligation	$ 9,135	$ 9,935

Note 9. Investments - Investm55

Note 9. Investments - Investments - Non-Marketable Equity Securities Textuals (Details) $ in Millions	Sep. 30, 2017USD ($)
Investments, Debt and Equity Securities [Abstract]
Investment Owned, at Cost	$ 2
Cost Method Investments	$ 0.5

Note 10. Derivative Instrumen56

Note 10. Derivative Instruments - Textuals (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Derivative [Line Items]
Investment Owned, at Cost	$ 2,000
Other Assets | Warrant
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	1,500
Fair Value, Measurements, Recurring | Warrant
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 1,500	$ 1,500

Note 11. Postemployment Benef57

Note 11. Postemployment Benefits (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Components of Net Periodic Benefit Cost (before tax):
Service cost	$ 135	$ 119
Interest cost	21	15
Amortization of actuarial income	(67)	(145)
Net periodic benefit cost (income)	$ 89	$ (11)

Note 12. Stock Compensation P58

Note 12. Stock Compensation Plan - Stock Compensation Awards (Details)	3 Months Ended
	Sep. 30, 2017$ / sharesshares
Annual Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award
Stock Compensation, Shares Awarded	55,839
Stock Compensation, Grant Date Fair Value | $ / shares	$ 16.52
Relative Total Shareholder Return
Share-based Compensation Arrangement by Share-based Payment Award
Stock Compensation, Shares Awarded	26,167
Stock Compensation, Grant Date Fair Value | $ / shares	$ 21.21
Restricted Share Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award
Stock Compensation, Shares Awarded	51,211
Stock Compensation, Grant Date Fair Value | $ / shares	$ 16.76
Unrestricted Shares Director Compensation
Share-based Compensation Arrangement by Share-based Payment Award
Stock Compensation, Shares Awarded	10,055
Stock Compensation, Grant Date Fair Value | $ / shares	$ 16.97
Maximum | Annual Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award
Stock Compensation, Shares Awarded	111,678
Maximum | Relative Total Shareholder Return
Share-based Compensation Arrangement by Share-based Payment Award
Stock Compensation, Shares Awarded	52,334

Note 12. Stock Compensation P59

Note 12. Stock Compensation Plan - Stock Compensation Plans Textuals (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Allocated Share-based Compensation Expense	$ 1.5	$ 1.8
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	1.3	$ 0.7
Excess tax benefits from stock award vesting	$ 0.7
Minimum
Annual Performance Shares, Earned Percentage	0.00%
Relative Total Shareholder Return, Earned Percentage	0.00%
Maximum
Annual Performance Shares, Earned Percentage	200.00%
Relative Total Shareholder Return, Earned Percentage	200.00%
Annual Performance Shares
Stock Compensation, Shares Awarded	55,839
Annual Performance Shares | Maximum
Stock Compensation, Shares Awarded	111,678
Relative Total Shareholder Return
Stock Compensation, Shares Awarded	26,167
Relative Total Shareholder Return | Maximum
Stock Compensation, Shares Awarded	52,334

Note 13. Variable Interest En60

Note 13. Variable Interest Entities -Textuals (Details) - Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Jun. 30, 2017
Variable Interest Entity
Variable Interest Entity, Obligation to Provide Additional Funding, Amount	$ 0
Receivables and Other Assets | Independent Dealership Financing | Notes Receivable
Variable Interest Entity
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets	800	$ 400
Other Assets | Cost-method Investments
Variable Interest Entity
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets	500	500
Other Assets | Stock Warrant
Variable Interest Entity
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets	$ 1,500	$ 1,500

Note 14. Credit Quality and A61

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

Note 14. Credit Quality and A62

Note 14. Credit Quality and Allowance for Credit Losses of Notes Receivable - Credit Quality and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Notes Receivable
Notes Receivable, Unpaid Balance	$ 886	$ 571
Notes Receivable, Related Allowance	126	126
Notes Receivable, Net of Allowance	760	445
Notes Receivable | Independent Dealership Financing
Notes Receivable
Notes Receivable, Unpaid Balance	751	433
Notes Receivable, Related Allowance	0	0
Notes Receivable, Net of Allowance	751	433
Notes Receivable | Other Notes Receivable
Notes Receivable
Notes Receivable, Unpaid Balance	135	138
Notes Receivable, Related Allowance	126	126
Notes Receivable, Net of Allowance	$ 9	$ 12

Note 15. Earnings Per Share Ear

Note 15. Earnings Per Share Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Net Income	$ 10,957	$ 10,998
Average Number of Shares Outstanding, Basic	37,428	37,609
Dilutive Effect of Average Outstanding Compensation Awards	305	415
Average Number of Shares Outstanding, Diluted	37,733	38,024
Basic Earnings Per Share	$ 0.29	$ 0.29
Diluted Earnings Per Share	$ 0.29	$ 0.29