Note 9. Investments

3 Months Ended

Sep. 30, 2020

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure

Investments

The Company maintains a self-directed supplemental employee retirement plan (“SERP”) for executive and other key employees. The Company SERP utilizes a rabbi trust, and therefore assets in the SERP portfolio are subject to creditor claims in the event of bankruptcy. The Company recognizes SERP investment assets on the balance sheet at current fair value. A SERP liability of the same amount is recorded on the balance sheet representing an obligation to distribute SERP funds to participants. The SERP investment assets are classified as trading, and accordingly, realized and unrealized gains and losses are recognized in income in the Other Income (Expense). 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. The change in net unrealized holding gains for the three months ended September 30, 2020 and 2019 was approximately $0.2 million and $(0.1) million, respectively.

SERP asset and liability balances applicable to Kimball Electronics participants were as follows:


(Amounts in Thousands)	September 30, 2020		June 30, 2020
SERP investments - current asset	$	2,155	$	1,972
SERP investments - other long-term asset	8,912		8,505
Total SERP investments	$	11,067	$	10,477

SERP obligation - current liability	$	2,155	$	1,972
SERP obligation - other long-term liability	8,912		8,505
Total SERP obligation	$	11,067	$	10,477