Note 9. Income Taxes (Tables)

12 Months Ended

Jun. 30, 2016

Income Taxes [Abstract]

Schedule of Deferred Tax Assets and Liabilities

The components of the deferred tax assets and liabilities as of June 30, 2016 and 2015, were as follows:

(Amounts in Thousands)	2016			2015
Deferred Tax Assets:
Receivables	$	1,254		$	1,137
Inventory	384			528
Employee benefits	485			382
Deferred compensation	11,348			12,810
Other current liabilities	504			134
Warranty reserve	915			881
Tax credit carryforwards	2,492			2,472
Restructuring	176			1,017
Net operating loss carryforward	2,630			2,525
Miscellaneous	2,366			2,055
Valuation Allowance	(687		)	(687		)
Total asset	$	21,867		$	23,254
Deferred Tax Liabilities:
Property and equipment	$	8,483		$	7,353
Capitalized software	31			146
Miscellaneous	563			427
Total liability	$	9,077		$	7,926
Net Deferred Tax Assets	$	12,790		$	15,328

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes from continuing operations is composed of the following items:

	Year Ended June 30
(Amounts in Thousands)	2016		2015		2014
Currently Payable:
Federal	$	7,548	$	4,553	$	6,108
State	1,184		885		1,118
Total current	$	8,732	$	5,438	$	7,226
Deferred Taxes:
Federal	$	3,081	$	616	$	(4,514	)
State	421		482		(1,122		)
Total deferred	$	3,502	$	1,098	$	(5,636	)
Valuation allowance	—		—		(797		)
Total provision for income taxes from continuing operations	$	12,234	$	6,536	$	793

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory U.S. income tax rate from continuing operations to Kimball’s effective income tax rate follows:

	Year Ended June 30
	2016					2015					2014
(Amounts in Thousands)	Amount			%		Amount			%		Amount			%
Tax provision computed at U.S. federal statutory rate	$	11,686		35.0	%	$	6,188		35.0	%	$	1,474		35.0	%
State income taxes, net of federal income tax benefit	1,043			3.1		662			3.7		(45		)	(1.1	)
Valuation allowance	—			—		—			—		(797		)	(18.9	)
Domestic manufacturing deduction	(286		)	(0.9	)	(602		)	(3.4	)	(327		)	(7.8	)
Research credit	(346		)	(1.0	)	(218		)	(1.2	)	(115		)	(2.7	)
Spin-off costs	—			—		784			4.4		422			10.0
Unrecognized tax benefit	—			—		(851		)	(4.8	)	—			—
Other - net	137			0.4		573			3.3		181			4.3
Total provision for income taxes from continuing operations	$	12,234		36.6	%	$	6,536		37.0	%	$	793		18.8	%

Summary of Income Tax Contingencies

Changes in the unrecognized tax benefit, excluding accrued interest and penalties, during fiscal years 2016, 2015, and 2014 were as follows:

(Amounts in Thousands)	2016			2015			2014
Beginning balance - July 1	$	1,920		$	2,692		$	2,752
Tax positions related to prior fiscal years:
Additions	301			351			415
Reductions	(43		)	—			—
Tax positions related to current fiscal year:
Additions	—			—			—
Reductions	—			—			—
Settlements	—			—			—
Lapses in statute of limitations	(101		)	(1,123		)	(475		)
Ending balance - June 30	$	2,077		$	1,920		$	2,692
Portion that, if recognized, would reduce tax expense and effective tax rate	$	1,407		$	1,307		$	2,159

Accrued Interest and Penalties on Unrecognized Tax Benefits

Amounts accrued for interest and penalties were as follows:

	As of June 30
(Amounts in Thousands)	2016		2015		2014
Accrued Interest and Penalties:
Interest	$	102	$	104	$	285
Penalties	$	108	$	105	$	95