(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of | (I.R.S. Employer Identification No.) | |||||||
incorporation or organization) | ||||||||
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code | ||
Not Applicable | ||
Former name, former address and former fiscal year, if changed since last report |
Title of each Class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
The |
Page No. | |||||||||||
PART I FINANCIAL INFORMATION | |||||||||||
PART II OTHER INFORMATION | |||||||||||
(Unaudited) | |||||||||||
December 31, 2020 | June 30, 2020 | ||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Receivables, net of allowances of $ | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Assets held for sale | |||||||||||
Total current assets | |||||||||||
Property and equipment, net of accumulated depreciation of $ | |||||||||||
Right-of-use operating lease assets | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net of accumulated amortization of $ | |||||||||||
Deferred tax assets | |||||||||||
Other assets | |||||||||||
Total Assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Short-term debt | $ | $ | |||||||||
Current maturities of long-term debt | |||||||||||
Accounts payable | |||||||||||
Customer deposits | |||||||||||
Current portion of operating lease liability | |||||||||||
Dividends payable | |||||||||||
Accrued expenses | |||||||||||
Total current liabilities | |||||||||||
Other Liabilities: | |||||||||||
Long-term debt, less current maturities | |||||||||||
Long-term operating lease liability | |||||||||||
Contingent earn-out liability | |||||||||||
Other | |||||||||||
Total other liabilities | |||||||||||
Shareholders’ Equity: | |||||||||||
Common stock-par value $ | |||||||||||
Class A - Shares authorized: Shares issued: | |||||||||||
Class B - Shares authorized: Shares issued: | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income | |||||||||||
Less: Treasury stock, at cost, | ( | ( | |||||||||
Total Shareholders’ Equity | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | $ |
(Unaudited) | (Unaudited) | ||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net Sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of Sales | |||||||||||||||||||||||
Gross Profit | |||||||||||||||||||||||
Selling and Administrative Expenses | |||||||||||||||||||||||
Restructuring Expense | |||||||||||||||||||||||
Operating Income (Loss) | ( | ||||||||||||||||||||||
Other Income (Expense): | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Non-operating income (expense), net | |||||||||||||||||||||||
Other income (expense), net | |||||||||||||||||||||||
Income (Loss) Before Taxes on Income | ( | ||||||||||||||||||||||
Provision for Income Taxes | |||||||||||||||||||||||
Net Income (Loss) | $ | ( | $ | $ | $ | ||||||||||||||||||
Earnings (Loss) Per Share of Common Stock: | |||||||||||||||||||||||
Basic Earnings (Loss) Per Share | $ | ( | $ | $ | $ | ||||||||||||||||||
Diluted Earnings (Loss) Per Share | $ | ( | $ | $ | $ | ||||||||||||||||||
Class A and B Common Stock: | |||||||||||||||||||||||
Average Number of Shares Outstanding - Basic | |||||||||||||||||||||||
Average Number of Shares Outstanding - Diluted |
(Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
(Unaudited) | Pre-tax | Tax | Net of Tax | Pre-tax | Tax | Net of Tax | |||||||||||||||||||||||||||||
Net income (loss) | $ | ( | $ | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
Available-for-sale securities | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||
Postemployment severance actuarial change | ( | ( | |||||||||||||||||||||||||||||||||
Reclassification to (earnings) loss: | |||||||||||||||||||||||||||||||||||
Amortization of actuarial change | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Total comprehensive income (loss) | $ | ( | $ |
(Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
(Unaudited) | Pre-tax | Tax | Net of Tax | Pre-tax | Tax | Net of Tax | |||||||||||||||||||||||||||||
Net income | $ | $ | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
Available-for-sale securities | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||
Postemployment severance actuarial change | ( | ( | |||||||||||||||||||||||||||||||||
Reclassification to (earnings) loss: | |||||||||||||||||||||||||||||||||||
Amortization of actuarial change | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Total comprehensive income | $ | $ |
(Unaudited) | |||||||||||
Six Months Ended | |||||||||||
December 31 | |||||||||||
2020 | 2019 | ||||||||||
Cash Flows From Operating Activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization | |||||||||||
(Gain) loss on sales of assets | ( | ||||||||||
Restructuring and asset impairment charges | |||||||||||
Deferred income tax and other deferred charges | ( | ( | |||||||||
Stock-based compensation | |||||||||||
Other, net | ( | ||||||||||
Change in operating assets and liabilities: | |||||||||||
Receivables | |||||||||||
Inventories | ( | ||||||||||
Prepaid expenses and other current assets | ( | ||||||||||
Accounts payable | ( | ( | |||||||||
Customer deposits | |||||||||||
Accrued expenses | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash Flows From Investing Activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from sales of assets | |||||||||||
Cash paid for acquisition | ( | ||||||||||
Purchases of capitalized software | ( | ( | |||||||||
Purchases of available-for-sale securities | ( | ( | |||||||||
Maturities of available-for-sale securities | |||||||||||
Other, net | ( | ( | |||||||||
Net cash used for investing activities | ( | ( | |||||||||
Cash Flows From Financing Activities: | |||||||||||
Proceeds from short-term debt | |||||||||||
Repayments of long-term debt | ( | ( | |||||||||
Dividends paid to shareholders | ( | ( | |||||||||
Repurchases of Common Stock | ( | ( | |||||||||
Repurchase of employee shares for tax withholding | ( | ( | |||||||||
Net cash provided by (used for) financing activities | ( | ||||||||||
Net Decrease in Cash, Cash Equivalents, and Restricted Cash (1) | ( | ( | |||||||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period (1) | |||||||||||
Cash, Cash Equivalents, and Restricted Cash at End of Period (1) | $ | $ | |||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Non-cash items: | |||||||||||
Contingent earn-out liability for Poppin, Inc. acquisition | $ | $ | |||||||||
Cash paid during the period for: | |||||||||||
Income taxes | $ | $ | |||||||||
Interest expense | $ | $ |
(Amounts in Thousands) | December 31, 2020 | June 30, 2020 | December 31, 2019 | June 30, 2019 | |||||||||||||||||||
Cash and Cash Equivalents | $ | $ | $ | $ | |||||||||||||||||||
Restricted cash included in Other Assets | |||||||||||||||||||||||
Total Cash, Cash Equivalents, and Restricted Cash at end of period | $ | $ | $ | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||
Three months ended December 31, 2020 (Unaudited) | Class A | Class B | |||||||||||||||||||||||||||||||||||||||
Amounts at September 30, 2020 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||
Issuance of non-restricted stock ( | ( | ||||||||||||||||||||||||||||||||||||||||
Conversion of Class A to Class B common stock ( | ( | ||||||||||||||||||||||||||||||||||||||||
Compensation expense related to stock compensation plans | |||||||||||||||||||||||||||||||||||||||||
Repurchase of Common Stock ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Amounts at December 31, 2020 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Three months ended December 31, 2019 (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
Amounts at September 30, 2019 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||
Issuance of non-restricted stock ( | ( | ||||||||||||||||||||||||||||||||||||||||
Conversion of Class A to Class B common stock ( | ( | ||||||||||||||||||||||||||||||||||||||||
Compensation expense related to stock compensation plans | |||||||||||||||||||||||||||||||||||||||||
Repurchase of Common Stock ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Amounts at December 31, 2019 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Six months ended December 31, 2020 (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
Amounts at June 30, 2020 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||
Issuance of non-restricted stock ( | ( | ||||||||||||||||||||||||||||||||||||||||
Conversion of Class A to Class B common stock ( | ( | ||||||||||||||||||||||||||||||||||||||||
Compensation expense related to stock incentive plans | |||||||||||||||||||||||||||||||||||||||||
Restricted stock units issuance ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Relative total shareholder return performance units issuance ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle | |||||||||||||||||||||||||||||||||||||||||
Repurchase of Common Stock ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Amounts at December 31, 2020 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Six months ended December 31, 2019 (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
Amounts at June 30, 2019 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||
Issuance of non-restricted stock ( | ( | ||||||||||||||||||||||||||||||||||||||||
Conversion of Class A to Class B common stock ( | ( | ||||||||||||||||||||||||||||||||||||||||
Compensation expense related to stock incentive plans | |||||||||||||||||||||||||||||||||||||||||
Performance share issuance ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Relative total shareholder return performance units issuance ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Reclassification of equity-classified awards | ( | ( | |||||||||||||||||||||||||||||||||||||||
Repurchase of Common Stock ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||
Amounts at December 31, 2019 | $ | $ | $ | $ | $ | $ | ( | $ |
December 31, 2020 | June 30, 2020 | ||||||||||||||||||||||||||||||||||
(Amounts in Thousands) | Cost | Accumulated Amortization | Net Value | Cost | Accumulated Amortization | Net Value | |||||||||||||||||||||||||||||
Capitalized Software | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Customer Relationships | |||||||||||||||||||||||||||||||||||
Trade Names | |||||||||||||||||||||||||||||||||||
Acquired Technology | |||||||||||||||||||||||||||||||||||
Patents and Trademarks | |||||||||||||||||||||||||||||||||||
Non-Compete Agreements | |||||||||||||||||||||||||||||||||||
Other Intangible Assets | $ | $ | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||
(Amounts in Thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Gain on Supplemental Employee Retirement Plan Investments | $ | $ | $ | $ | |||||||||||||||||||
Other | ( | ( | ( | ||||||||||||||||||||
Non-operating income, net | $ | $ | $ | $ |
Purchase Price Allocation | |||||
(Amounts in Thousands) | |||||
Cash | $ | ||||
Receivables | |||||
Inventories | |||||
Other current assets | |||||
Net property and equipment | |||||
Other intangible assets | |||||
Goodwill | |||||
Right-of-use operating lease assets | |||||
Other long-term assets | |||||
Deferred tax assets | |||||
Total Assets | $ | ||||
Current maturities of long-term debt | |||||
Accounts payable | |||||
Customer deposits | |||||
Current portion of operating lease liability | |||||
Accrued expenses | |||||
Long-term debt, less current maturities | |||||
Long-term operating lease liability | |||||
Other long-term liabilities | |||||
Total Liabilities | $ | ||||
Net Assets | $ |
Consideration | |||||
(Amounts in Thousands) | |||||
Cash | $ | ||||
Contingent earn-out — fair value at acquisition date | |||||
Fair value of total consideration | $ | ||||
Less: Acquired cash | |||||
Total consideration less acquired cash | $ |
(unaudited) | (unaudited) | ||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||
(Amounts in Thousands, Except Per Share Date) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net Sales | $ | $ | $ | $ | |||||||||||||||||||
Net Income (Loss) | ( | ||||||||||||||||||||||
Diluted Earnings (Loss) Per Share of Common Stock | $ | ( | $ | $ | $ |
Three Months Ended | Six Months Ended | Charges Incurred to Date | |||||||||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||||||||
(Amounts in Thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
Cash-related restructuring charges: | |||||||||||||||||||||||||||||
Severance and other employee related costs | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Facility exit costs and other cash charges | |||||||||||||||||||||||||||||
Total cash-related restructuring charges | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Non-cash charges: | |||||||||||||||||||||||||||||
Transition stock compensation | |||||||||||||||||||||||||||||
Impairment of assets and accelerated depreciation | ( | ||||||||||||||||||||||||||||
Other non-cash charges | |||||||||||||||||||||||||||||
Total non-cash charges | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Total charges | $ | $ | $ | $ | $ |
(Amounts in Thousands) | Severance and other employee related costs | Facility exit and other costs | Total | ||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | ||||||||||||||
Additions charged to expense | |||||||||||||||||
Cash payments charged against reserve | ( | ( | ( | ||||||||||||||
Non-cash adjustments | ( | ( | |||||||||||||||
Balance at December 31, 2020 | $ | $ | $ |
Three Months Ended | Six Months Ended | Charges Incurred to Date | |||||||||||||||
December 31 | December 31 | ||||||||||||||||
(Amounts in Thousands) | 2020 | 2020 | |||||||||||||||
Cash-related restructuring charges: | |||||||||||||||||
Severance and other employee related costs | $ | $ | $ | ||||||||||||||
Facility exit costs and other cash charges | |||||||||||||||||
Total cash-related restructuring charges | $ | $ | $ | ||||||||||||||
Non-cash charges: | |||||||||||||||||
Impairment of assets and accelerated depreciation | |||||||||||||||||
Total charges | $ | $ | $ |
(Amounts in Thousands) | Severance and other employee related costs | Facility exit and other costs | Total | ||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | ||||||||||||||
Additions charged to expense | |||||||||||||||||
Cash payments charged against reserve | ( | ( | |||||||||||||||
Non-cash adjustments | ( | ( | |||||||||||||||
Balance at December 31, 2020 | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||
(Amounts in Millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Workplace | $ | $ | $ | $ | |||||||||||||||||||
Health | |||||||||||||||||||||||
Hospitality | |||||||||||||||||||||||
Total Net Sales | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||
(Amounts in Millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Operating lease expense | $ | $ | $ | $ | |||||||||||||||||||
Variable lease expense | |||||||||||||||||||||||
Total lease expense | $ | $ | $ | $ |
Six Months Ended | |||||||||||
December 31 | |||||||||||
(Amounts in Millions) | 2020 | 2019 | |||||||||
Cash flow information: | |||||||||||
Operating lease payments impacting lease liability | $ | $ | |||||||||
Non-cash impact of obtaining new right-of-use assets | $ | $ | |||||||||
As of | |||||||||||
December 31 | |||||||||||
(Amounts in Millions) | 2020 | 2019 | |||||||||
Other information: | |||||||||||
Weighted-average remaining term (in years) | |||||||||||
Weighted-average discount rate | % | % |
Fiscal Year Ended | |||||
(Amounts in Millions) | June 30 (1) | ||||
2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total lease payments | $ | ||||
Less interest | |||||
Present value of lease liabilities | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net Income (Loss) | $ | ( | $ | $ | $ | ||||||||||||||||||
Average Shares Outstanding for Basic EPS Calculation | |||||||||||||||||||||||
Dilutive Effect of Average Outstanding Compensation Awards | |||||||||||||||||||||||
Average Shares Outstanding for Diluted EPS Calculation | |||||||||||||||||||||||
Basic Earnings (Loss) Per Share | $ | ( | $ | $ | $ | ||||||||||||||||||
Diluted Earnings (Loss) Per Share | $ | ( | $ | $ | $ |
(Amounts in Thousands) | December 31, 2020 | June 30, 2020 | |||||||||
Finished products | $ | $ | |||||||||
Work-in-process | |||||||||||
Raw materials | |||||||||||
Total FIFO inventory | |||||||||||
LIFO reserve | ( | ( | |||||||||
Total inventory | $ | $ |
Accumulated Other Comprehensive Income | ||||||||||||||||||||
(Amounts in Thousands) | Unrealized Investment Gain (Loss) | Postemployment Benefits Net Actuarial Gain (Loss) | Accumulated Other Comprehensive Income | |||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | |||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | |||||||||||||||||||
Reclassification to (earnings) loss | ( | ( | ||||||||||||||||||
Net current-period other comprehensive income (loss) | ( | |||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | |||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | |||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | |||||||||||||||||||
Reclassification to (earnings) loss | ( | ( | ||||||||||||||||||
Net current-period other comprehensive income (loss) | ( | |||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ |
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, 2020 | $ | $ | $ | |||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | |||||||||||||||||||
Reclassification to (earnings) loss | ( | ( | ||||||||||||||||||
Net current-period other comprehensive income (loss) | ( | |||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | |||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | |||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | |||||||||||||||||||
Reclassification to (earnings) loss | ( | ( | ||||||||||||||||||
Net current-period other comprehensive income (loss) | ( | |||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | |||||||||||||||||
Reclassifications from Accumulated Other Comprehensive Income | Three Months Ended | Six Months Ended | Affected Line Item in the Condensed Consolidated Statements of Income | |||||||||||||||||||||||||||||
December 31 | December 31 | |||||||||||||||||||||||||||||||
(Amounts in Thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||
Postemployment Benefits Amortization of Actuarial Gain (1) | $ | $ | $ | $ | Non-operating income (expense), net | |||||||||||||||||||||||||||
( | ( | ( | ( | Benefit (Provision) for Income Taxes | ||||||||||||||||||||||||||||
Total Reclassifications for the Period | $ | $ | $ | $ | Net Income |
(Amounts in Thousands) | December 31, 2020 | June 30, 2020 | |||||||||
Short-term debt under credit facility due June 8, 2021; | $ | $ | |||||||||
PPP loan obtained in Poppin acquisition due April 23, 2022; | |||||||||||
Other debt maturing August 12, 2025; | |||||||||||
Total Debt | $ | $ | |||||||||
Six Months Ended | |||||||||||
December 31 | |||||||||||
(Amounts in Thousands) | 2020 | 2019 | |||||||||
Product Warranty Liability at the beginning of the period | $ | $ | |||||||||
Additions to warranty accrual (including changes in estimates) | |||||||||||
Settlements made (in cash or in kind) | ( | ( | |||||||||
Product Warranty Liability at the end of the period | $ | $ |
Contingent Consideration Liability | Fair Value | Valuation Technique | Unobservable Inputs | Range | Selected | |||||||||||||||||||||||||||
Revenue and EBITDA Based Payments | $ | million | Discounted Cash Flow | Revenue Discount Rate | % | |||||||||||||||||||||||||||
EBITDA Volatility | % | |||||||||||||||||||||||||||||||
Revenue Volatility | % |
Financial Instrument | Level | Valuation Technique/Inputs Used | ||||||||||||
Cash Equivalents: Money market funds | 1 | Market - Quoted market prices | ||||||||||||
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. | ||||||||||||
Trading securities: Mutual funds held in nonqualified SERP | 1 | Market - Quoted market prices | ||||||||||||
Derivative Assets: Stock warrants | 3 | Market - The privately-held company is in a start-up phase. The pricing of recent purchases or sales of the investment are considered, if any, as well as positive and negative qualitative evidence, in the assessment of fair value. The value of the stock warrants fluctuates primarily in relation to the value of the privately-held company's underlying securities. | ||||||||||||
Contingent earn-out liability | 3 | Income - Based on a valuation model that measures the present value of the probable cash payments based upon the forecasted operating performance of the acquisition and a discount rate that captures the risk associated with the liability. |
December 31, 2020 | |||||||||||||||||||||||
(Amounts in Thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash equivalents: Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Available-for-sale securities: Secondary market certificates of deposit | |||||||||||||||||||||||
Trading Securities: Mutual funds in nonqualified SERP | |||||||||||||||||||||||
Derivatives: Stock warrants | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Contingent earn-out liability | |||||||||||||||||||||||
Total liabilities at fair value | $ | $ | $ | $ | |||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||
(Amounts in Thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash equivalents: Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Available-for-sale securities: Secondary market certificates of deposit | |||||||||||||||||||||||
Trading Securities: Mutual funds in nonqualified SERP | |||||||||||||||||||||||
Derivatives: Stock warrants | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
Non-recurring Fair Value Adjustment | Level | Valuation Technique/Inputs Used | ||||||||||||
Impairment of Right of Use Lease Assets and Related Asset Groups | 3 | Income - Based on a valuation model that measures the present value of remaining lease payments less estimated sublease income at a discount rate that captures the risk associated with the future cash flows. |
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. | ||||||||||||
Equity securities without readily determinable fair value | 3 | Cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Impairment is assessed qualitatively. | ||||||||||||
December 31, 2020 | |||||
(Amounts in Thousands) | Certificates of Deposit | ||||
Within one year | $ | ||||
After one year through two years | |||||
Total Fair Value | $ |
December 31, 2020 | |||||
(Amounts in Thousands) | Certificates of Deposit | ||||
Amortized cost basis | $ | ||||
Unrealized holding gains | |||||
Unrealized holding losses | |||||
Fair Value | $ | ||||
June 30, 2020 | |||||
(Amounts in Thousands) | Certificates of Deposit | ||||
Amortized cost basis | $ | ||||
Unrealized holding gains | |||||
Unrealized holding losses | |||||
Fair Value | $ |
(Amounts in Thousands) | December 31, 2020 | June 30, 2020 | |||||||||
SERP investments - current asset | $ | $ | |||||||||
SERP investments - other long-term asset | |||||||||||
Total SERP investments | $ | $ | |||||||||
SERP obligation - current liability | $ | $ | |||||||||
SERP obligation - other long-term liability | |||||||||||
Total SERP obligation | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||
(Amounts in Thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Amortization of actuarial income | ( | ( | ( | ( | |||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ |
Type of Award | Quarter Awarded | Targeted Shares or Units | Grant Date Fair Value (4) | |||||||||||||||||||||||
Relative Total Shareholder Return Performance Units (1) | 1st Quarter | $ | ||||||||||||||||||||||||
Relative Total Shareholder Return Performance Units (1) | 2nd Quarter | $ | - | $ | ||||||||||||||||||||||
Restricted Stock Units (2) | 1st Quarter | $ | - | $ | ||||||||||||||||||||||
Restricted Stock Units (2) | 2nd Quarter | $ | - | $ | ||||||||||||||||||||||
Unrestricted Shares (3) | 1st Quarter | $ | ||||||||||||||||||||||||
Unrestricted Shares (3) | 2nd Quarter | $ | - | $ | ||||||||||||||||||||||
At or for the Three Months Ended | For the Six Months Ended | ||||||||||||||||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||||||||||||||
(Amounts in Millions) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||
Net Sales | $ | 136.2 | $ | 192.2 | (29 | %) | $ | 284.1 | $ | 393.6 | (28 | %) | |||||||||||||||||||||||
Organic Net Sales* | 133.5 | 192.2 | (31 | %) | 281.5 | 393.6 | (28 | %) | |||||||||||||||||||||||||||
Gross Profit | 45.5 | 65.3 | (30 | %) | 97.9 | 135.7 | (28 | %) | |||||||||||||||||||||||||||
Selling and Administrative Expenses | 46.0 | 49.7 | (8 | %) | 87.7 | 100.6 | (13 | %) | |||||||||||||||||||||||||||
Restructuring Expense | 1.6 | 1.4 | 5.9 | 5.7 | |||||||||||||||||||||||||||||||
Operating Income (Loss) | (2.0) | 14.2 | (114 | %) | 4.4 | 29.3 | (85 | %) | |||||||||||||||||||||||||||
Operating Income (Loss) % | (1.5 | %) | 7.4 | % | 1.5 | % | 7.5 | % | |||||||||||||||||||||||||||
Adjusted Operating Income * | $ | 4.9 | $ | 16.5 | (70 | %) | $ | 16.5 | $ | 36.2 | (54 | %) | |||||||||||||||||||||||
Adjusted Operating Income % * | 3.6 | % | 8.6 | % | 5.8 | % | 9.2 | % | |||||||||||||||||||||||||||
Net Income (Loss) | $ | (0.8) | $ | 11.0 | (108 | %) | $ | 4.5 | $ | 22.4 | (80 | %) | |||||||||||||||||||||||
Net Income (Loss) as a Percentage of Net Sales | (0.6 | %) | 5.7 | % | 1.6 | % | 5.7 | % | |||||||||||||||||||||||||||
Adjusted Net Income * | $ | 3.3 | $ | 12.2 | (73 | %) | $ | 11.9 | $ | 27.0 | (56 | %) | |||||||||||||||||||||||
Diluted Earnings (Loss) Per Share | $ | (0.02) | $ | 0.30 | (107 | %) | $ | 0.12 | $ | 0.60 | (80 | %) | |||||||||||||||||||||||
Adjusted Diluted Earnings Per Share * | $ | 0.09 | $ | 0.33 | (73 | %) | $ | 0.32 | $ | 0.72 | (56 | %) | |||||||||||||||||||||||
Return on Invested Capital ** | 15.9 | % | 38.4 | % | 12.4 | % | 43.6 | % | |||||||||||||||||||||||||||
Adjusted EBITDA * | $ | 9.1 | $ | 20.9 | (56 | %) | $ | 24.9 | $ | 44.7 | (44 | %) | |||||||||||||||||||||||
Adjusted EBITDA % * | 6.7 | % | 10.9 | % | 8.8 | % | 11.4 | % | |||||||||||||||||||||||||||
Order Backlog ** | $ | 144.9 | $ | 173.2 | (16 | %) |
Net Sales by End Market | |||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||||||||||||||
(Amounts in Millions) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||
Workplace | $ | 87.4 | $ | 114.4 | (24 | %) | $ | 182.7 | $ | 240.1 | (24 | %) | |||||||||||||||||||||||
Health | 27.0 | 28.2 | (4 | %) | 47.6 | 57.1 | (17 | %) | |||||||||||||||||||||||||||
Hospitality | 21.8 | 49.6 | (56 | %) | 53.8 | 96.4 | (44 | %) | |||||||||||||||||||||||||||
Total Net Sales | $ | 136.2 | $ | 192.2 | (29 | %) | $ | 284.1 | $ | 393.6 | (28 | %) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||
(Amounts in Thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Interest Income | $ | 87 | $ | 489 | $ | 189 | $ | 1,096 | |||||||||||||||
Interest Expense | (58) | (21) | (86) | (44) | |||||||||||||||||||
Gain on Supplemental Employee Retirement Plan Investments | 1,381 | 716 | 2,139 | 774 | |||||||||||||||||||
Other | (1) | 1 | (16) | (56) | |||||||||||||||||||
Other Income (Expense), net | $ | 1,409 | $ | 1,185 | $ | 2,226 | $ | 1,770 |
Six Months Ended | ||||||||||||||
December 31 | ||||||||||||||
(Amounts in Thousands) | 2020 | 2019 | ||||||||||||
Net cash provided by operating activities | $ | 24,521 | $ | 13,402 | ||||||||||
Net cash used for investing activities | $ | (105,774) | $ | (6,747) | ||||||||||
Net cash provided by (used for) financing activities | $ | 32,456 | $ | (8,419) |
At or For the Period Ended | Limit As Specified in | |||||||||||||||||||
Covenant | December 31, 2020 | Credit Agreement | Excess | |||||||||||||||||
Adjusted Leverage Ratio | 0.35 | 3.00 | 2.65 | |||||||||||||||||
Interest Coverage Ratio | 546.00 | 3.00 | 543.00 |
Reconciliation of Non-GAAP Financial Measures and Other Key Performance Indicators | |||||||||||
(Amounts in Thousands, Except for Per Share Data) | |||||||||||
Organic Net Sales | Three Months Ended | Six Months Ended | |||||||||
December 31, | December 31, | ||||||||||
2020 | 2020 | ||||||||||
Net Sales, as reported | $ | 136,197 | $ | 284,141 | |||||||
Less: Poppin acquisition net sales | 2,678 | 2,678 | |||||||||
Organic Net Sales | $ | 133,519 | $ | 281,463 | |||||||
Adjusted Operating Income | Three Months Ended | Six Months Ended | |||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Operating Income (Loss), as reported | $ | (2,034) | $ | 14,226 | $ | 4,395 | $ | 29,332 | |||||||||||||||
Add: Pre-tax Restructuring Expense | 1,616 | 1,396 | 5,856 | 5,746 | |||||||||||||||||||
Add: Pre-tax Expense Adjustment to SERP Liability | 1,381 | 716 | 2,139 | 774 | |||||||||||||||||||
Add: Pre-tax CEO Transition Costs | 141 | 175 | 282 | 350 | |||||||||||||||||||
Add: Pre-tax Acquisition-related Amortization | 395 | — | 395 | — | |||||||||||||||||||
Add: Pre-tax Acquisition-related Inventory Valuation Adjustment | 42 | — | 42 | — | |||||||||||||||||||
Add: Pre-tax Costs of Acquisition | 3,388 | — | 3,388 | — | |||||||||||||||||||
Adjusted Operating Income | $ | 4,929 | $ | 16,513 | $ | 16,497 | $ | 36,202 | |||||||||||||||
Net Sales | $ | 136,197 | $ | 192,164 | $ | 284,141 | $ | 393,616 | |||||||||||||||
Adjusted Operating Income % | 3.6 | % | 8.6 | % | 5.8 | % | 9.2 | % | |||||||||||||||
Adjusted Net Income | Three Months Ended | Six Months Ended | |||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net Income (Loss), as reported | $ | (838) | $ | 11,039 | $ | 4,548 | $ | 22,423 | |||||||||||||||
Pre-tax Restructuring Expense | 1,616 | 1,396 | 5,856 | 5,746 | |||||||||||||||||||
Tax on Restructuring Expense | (416) | (359) | (1,508) | (1,479) | |||||||||||||||||||
Add: After-tax Restructuring Expense | 1,200 | 1,037 | 4,348 | 4,267 | |||||||||||||||||||
Pre-tax CEO Transition Costs | 141 | 175 | 282 | 350 | |||||||||||||||||||
Tax on CEO Transition Costs | (36) | (45) | (72) | (90) | |||||||||||||||||||
Add: After-tax CEO Transition Costs | 105 | 130 | 210 | 260 | |||||||||||||||||||
Pre-tax Acquisition-related Amortization | 395 | — | 395 | — | |||||||||||||||||||
Tax on Acquisition-related Amortization | (102) | — | (102) | — | |||||||||||||||||||
Add: After-tax Acquisition-related Amortization | 293 | — | 293 | — | |||||||||||||||||||
Pre-tax Acquisition-related Inventory Valuation Adjustment | 42 | — | 42 | — | |||||||||||||||||||
Tax on Acquisition-related Inventory Valuation Adjustment | (11) | — | (11) | — | |||||||||||||||||||
Add: After-tax Acquisition-related Inventory Adjustment | 31 | — | 31 | — | |||||||||||||||||||
Pre-tax Costs of Acquisition | 3,388 | — | 3,388 | — | |||||||||||||||||||
Tax on Costs of Acquisition | (872) | — | (872) | — | |||||||||||||||||||
Add: After-tax Costs of Acquisition | 2,516 | — | 2,516 | — | |||||||||||||||||||
Adjusted Net Income | $ | 3,307 | $ | 12,206 | $ | 11,946 | $ | 26,950 | |||||||||||||||
Adjusted Diluted Earnings Per Share | Three Months Ended | Six Months Ended | |||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Diluted Earnings (Loss) Per Share, as reported | $ | (0.02) | $ | 0.30 | $ | 0.12 | $ | 0.60 | |||||||||||||||
Add: After-tax Restructuring Expense | 0.03 | 0.03 | 0.12 | 0.11 | |||||||||||||||||||
Add: After-tax CEO Transition Costs | 0.00 | 0.00 | 0.00 | 0.01 | |||||||||||||||||||
Add: After-tax Acquisition-related Amortization | 0.01 | 0.00 | 0.01 | 0.00 | |||||||||||||||||||
Add: After-tax Costs of Acquisition | 0.07 | 0.00 | 0.07 | 0.00 | |||||||||||||||||||
Adjusted Diluted Earnings Per Share | $ | 0.09 | $ | 0.33 | $ | 0.32 | $ | 0.72 |
Earnings Before Interest, Taxes, Depreciation, and Amortization excluding Restructuring Expense, CEO Transition Costs, Acquisition-related Inventory Valuation Adjustment, and Costs of Acquisition (“Adjusted EBITDA”) | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
December 31 | December 31 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net Income (Loss) | $ | (838) | $ | 11,039 | $ | 4,548 | $ | 22,423 | |||||||||||||||
Provision for Income Taxes | 213 | 4,372 | 2,073 | 8,679 | |||||||||||||||||||
Income (Loss) Before Taxes on Income | (625) | 15,411 | 6,621 | 31,102 | |||||||||||||||||||
Interest Expense | 58 | 21 | 86 | 44 | |||||||||||||||||||
Interest Income | (87) | (489) | (189) | (1,096) | |||||||||||||||||||
Depreciation | 3,536 | 3,866 | 7,128 | 7,476 | |||||||||||||||||||
Amortization | 1,049 | 547 | 1,702 | 1,068 | |||||||||||||||||||
Pre-tax Restructuring Expense | 1,616 | 1,396 | 5,856 | 5,746 | |||||||||||||||||||
Pre-tax CEO Transition Costs | 141 | 175 | 282 | 350 | |||||||||||||||||||
Pre-tax Acquisition-related Inventory Valuation Adjustment | 42 | — | 42 | — | |||||||||||||||||||
Pre-tax Costs of Acquisition | 3,388 | — | 3,388 | — | |||||||||||||||||||
Adjusted EBITDA | $ | 9,118 | $ | 20,927 | $ | 24,916 | $ | 44,690 | |||||||||||||||
Net Sales | $ | 136,197 | $ | 192,164 | $ | 284,141 | $ | 393,616 | |||||||||||||||
Net Income (Loss) % | (0.6) | % | 5.7 | % | 1.6 | % | 5.7 | % | |||||||||||||||
Adjusted EBITDA % | 6.7 | % | 10.9 | % | 8.8 | % | 11.4 | % |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
Month #1 (October 1-October 31, 2020) | — | $ | — | — | 2,508,185 | |||||||||||||||||||||
Month #2 (November 1-November 30, 2020) | — | $ | — | — | 2,508,185 | |||||||||||||||||||||
Month #3 (December 1-December 31, 2020) | 62,146 | $ | 12.07 | 62,146 | 2,446,039 | |||||||||||||||||||||
Total | 62,146 | $ | 12.07 | 62,146 |
2(a) | |||||
2(b) | |||||
3(a) | |||||
3(b) | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101.INS | Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its Inline XBRL tags are embedded within the Inline XBRL document | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2020, formatted in Inline XBRL and contained in Exhibit 101 |
KIMBALL INTERNATIONAL, INC. | ||||||||
By: | /s/ KRISTINE L. JUSTER | |||||||
Kristine L. Juster Chief Executive Officer | ||||||||
February 8, 2021 | ||||||||
By: | /s/ TIMOTHY J. WOLFE | |||||||
Timothy J. Wolfe Chief Financial Officer | ||||||||
February 8, 2021 |
POPPIN, INC. | |||||
By: | /s/ Randy Nicolau | ||||
Name: Randy Nicolau | |||||
Title: Chief Executive Officer | |||||
FORTIS ADVISORS LLC: | |||||
By: | /s/ Ryan Simkin | ||||
Name: Ryan Simkin | |||||
Title: Managing Director | |||||
KIMBALL INTERNATIONAL, INC. | |||||
By: | /s/ Kristine L. Juster | ||||
Name: Kristine L. Juster | |||||
Title: Chief Executive Officer |
Date: | February 8, 2021 | |||||||
/s/ KRISTINE L. JUSTER | ||||||||
KRISTINE L. JUSTER Chief Executive Officer |
Date: | February 8, 2021 | |||||||
/s/ TIMOTHY J. WOLFE | ||||||||
TIMOTHY J. WOLFE Chief Financial Officer | ||||||||
Date: | February 8, 2021 | |||||||
/s/ KRISTINE L. JUSTER | ||||||||
KRISTINE L. JUSTER Chief Executive Officer |
Date: | February 8, 2021 | |||||||
/s/ TIMOTHY J. WOLFE | ||||||||
TIMOTHY J. WOLFE Chief Financial Officer |
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Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Net Sales | $ 136,197 | $ 192,164 | $ 284,141 | $ 393,616 |
Cost of Sales | 90,648 | 126,823 | 186,236 | 257,905 |
Gross Profit | 45,549 | 65,341 | 97,905 | 135,711 |
Selling and Administrative Expenses | 45,967 | 49,719 | 87,654 | 100,633 |
Restructuring Expense | 1,616 | 1,396 | 5,856 | 5,746 |
Operating Income (Loss) | (2,034) | 14,226 | 4,395 | 29,332 |
Other Income (Expense): | ||||
Interest income | 87 | 489 | 189 | 1,096 |
Interest expense | (58) | (21) | (86) | (44) |
Non-operating income (expense), net | 1,380 | 717 | 2,123 | 718 |
Other income (expense), net | 1,409 | 1,185 | 2,226 | 1,770 |
Income (Loss) Before Taxes on Income | (625) | 15,411 | 6,621 | 31,102 |
Provision for Income Taxes | 213 | 4,372 | 2,073 | 8,679 |
Net Income (Loss) | $ (838) | $ 11,039 | $ 4,548 | $ 22,423 |
Earnings (Loss) Per Share of Common Stock: | ||||
Basic Earnings (Loss) Per Share | $ (0.02) | $ 0.30 | $ 0.12 | $ 0.61 |
Diluted Earnings (Loss) Per Share | $ (0.02) | $ 0.30 | $ 0.12 | $ 0.60 |
Class A and B Common Stock: | ||||
Average Number of Shares Outstanding - Basic | 36,962 | 36,921 | 36,968 | 36,929 |
Average Number of Shares Outstanding - Diluted | 36,962 | 37,221 | 37,465 | 37,274 |
Condensed Consolidated Statement of Shareowners' Equity (unaudited) Statement - USD ($) $ in Thousands |
Total |
Common Stock
Class A Common Stock
|
Common Stock
Class B Common Stock
|
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
---|---|---|---|---|---|---|---|
Shareowners’ Equity at Jun. 30, 2019 | $ 216,490 | $ 12 | $ 2,139 | $ 3,570 | $ 277,391 | $ 1,937 | $ (68,559) |
Net Income (Loss) Attributable to Parent | 22,423 | 22,423 | |||||
Other Comprehensive Income (Loss), Net of Tax | 183 | 183 | |||||
Issuance of non-restricted stock (11,000 shares in Q2'21, 6,000 shares in Q2'20, 24,000 shares YTD in FY'21, 15,000 shares YTD in FY'20) | 0 | (202) | 202 | ||||
Conversion of Class A to Class B common stock (1,000 shares in Q2'21, 55,000 shares in Q2'20, 1,000 shares YTD in FY'21, 57,000 shares YTD in FY'20) | 0 | (2) | 2 | ||||
Compensation expense related to stock incentive plans | 3,080 | 3,080 | |||||
Performance share issuance (0 shares in Q2'21, 0 shares in Q2'20, 0 shares YTD in FY'21, 67,000 shares YTD in FY'20) | (512) | (1,391) | 879 | ||||
Relative total shareholder return performance units issuance (0 shares in Q2'21, 0 shares in Q2'20, 32,000 shares YTD in FY'21, 48,000 shares YTD in FY'20) | (330) | (954) | 624 | ||||
Reclassification of equity-classified awards | (680) | (680) | |||||
Repurchase of Common Stock (62,000 shares in Q2'21, 65,000 shares in Q2'20, 62,000 shares YTD in FY'21, 65,000 shares YTD in FY'20) | (1,340) | (1,340) | |||||
Dividends declared ($0.09 per share in Q2'21, $0.09 per share in Q2'20, $0.18 per share YTD in FY'21, $0.18 per share YTD in FY'20) | (6,725) | (6,725) | |||||
Shareowners’ Equity at Dec. 31, 2019 | 232,589 | 10 | 2,141 | 3,423 | 293,089 | 2,120 | (68,194) |
Shareowners’ Equity at Sep. 30, 2019 | 225,032 | 12 | 2,139 | 2,438 | 285,405 | 1,976 | (66,938) |
Net Income (Loss) Attributable to Parent | 11,039 | 11,039 | |||||
Other Comprehensive Income (Loss), Net of Tax | 144 | 144 | |||||
Issuance of non-restricted stock (11,000 shares in Q2'21, 6,000 shares in Q2'20, 24,000 shares YTD in FY'21, 15,000 shares YTD in FY'20) | 0 | (84) | 84 | ||||
Conversion of Class A to Class B common stock (1,000 shares in Q2'21, 55,000 shares in Q2'20, 1,000 shares YTD in FY'21, 57,000 shares YTD in FY'20) | 0 | (2) | 2 | ||||
Compensation expense related to stock incentive plans | 1,069 | 1,069 | |||||
Repurchase of Common Stock (62,000 shares in Q2'21, 65,000 shares in Q2'20, 62,000 shares YTD in FY'21, 65,000 shares YTD in FY'20) | (1,340) | (1,340) | |||||
Dividends declared ($0.09 per share in Q2'21, $0.09 per share in Q2'20, $0.18 per share YTD in FY'21, $0.18 per share YTD in FY'20) | (3,355) | (3,355) | |||||
Shareowners’ Equity at Dec. 31, 2019 | 232,589 | 10 | 2,141 | 3,423 | 293,089 | 2,120 | (68,194) |
Shareowners’ Equity at Jun. 30, 2020 | 244,796 | 10 | 2,141 | 3,770 | 305,024 | 2,137 | (68,286) |
Net Income (Loss) Attributable to Parent | 4,548 | 4,548 | |||||
Other Comprehensive Income (Loss), Net of Tax | 32 | 32 | |||||
Issuance of non-restricted stock (11,000 shares in Q2'21, 6,000 shares in Q2'20, 24,000 shares YTD in FY'21, 15,000 shares YTD in FY'20) | 0 | (315) | 315 | ||||
Conversion of Class A to Class B common stock (1,000 shares in Q2'21, 55,000 shares in Q2'20, 1,000 shares YTD in FY'21, 57,000 shares YTD in FY'20) | 0 | (1) | 1 | ||||
Compensation expense related to stock incentive plans | 2,258 | 2,258 | |||||
Restricted stock units issuance (0 shares in Q2'21, 0 shares in Q2'20, 15,000 shares YTD in FY'21, 0 shares YTD in FY'20) | (80) | (284) | 204 | ||||
Relative total shareholder return performance units issuance (0 shares in Q2'21, 0 shares in Q2'20, 32,000 shares YTD in FY'21, 48,000 shares YTD in FY'20) | (156) | (586) | 430 | ||||
Cumulative effect of change in accounting principle | 134 | 134 | |||||
Repurchase of Common Stock (62,000 shares in Q2'21, 65,000 shares in Q2'20, 62,000 shares YTD in FY'21, 65,000 shares YTD in FY'20) | (751) | (751) | |||||
Dividends declared ($0.09 per share in Q2'21, $0.09 per share in Q2'20, $0.18 per share YTD in FY'21, $0.18 per share YTD in FY'20) | (6,769) | (6,769) | |||||
Shareowners’ Equity at Dec. 31, 2020 | 244,012 | 9 | 2,142 | 4,843 | 302,937 | 2,169 | (68,088) |
Shareowners’ Equity at Sep. 30, 2020 | 247,693 | 10 | 2,141 | 3,681 | 307,177 | 2,168 | (67,484) |
Net Income (Loss) Attributable to Parent | (838) | (838) | |||||
Other Comprehensive Income (Loss), Net of Tax | 1 | 1 | |||||
Issuance of non-restricted stock (11,000 shares in Q2'21, 6,000 shares in Q2'20, 24,000 shares YTD in FY'21, 15,000 shares YTD in FY'20) | 0 | (147) | 147 | ||||
Conversion of Class A to Class B common stock (1,000 shares in Q2'21, 55,000 shares in Q2'20, 1,000 shares YTD in FY'21, 57,000 shares YTD in FY'20) | 0 | (1) | 1 | ||||
Compensation expense related to stock incentive plans | 1,309 | 1,309 | |||||
Repurchase of Common Stock (62,000 shares in Q2'21, 65,000 shares in Q2'20, 62,000 shares YTD in FY'21, 65,000 shares YTD in FY'20) | (751) | (751) | |||||
Dividends declared ($0.09 per share in Q2'21, $0.09 per share in Q2'20, $0.18 per share YTD in FY'21, $0.18 per share YTD in FY'20) | (3,402) | (3,402) | |||||
Shareowners’ Equity at Dec. 31, 2020 | $ 244,012 | $ 9 | $ 2,142 | $ 4,843 | $ 302,937 | $ 2,169 | $ (68,088) |
Condensed Consolidated Balance Sheets (unaudited) Parentheticals - USD ($) $ in Thousands |
Dec. 31, 2020 |
Jun. 30, 2020 |
---|---|---|
Allowance for Doubtful Accounts, Premiums and Other Receivables | $ 2,780 | $ 2,574 |
Property and Equipment Accumulated Depreciation | 197,261 | 193,641 |
Intangible Assets Accumulated Amortization | $ 37,030 | $ 40,442 |
Class A Common Stock | ||
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 192,000 | 193,000 |
Common Stock, Par or Stated Value Per Share | $ 0.05 | $ 0.05 |
Class B Common Stock | ||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 42,831,000 | 42,830,000 |
Treasury Stock, Shares | 6,101,000 | 6,110,000 |
Common Stock, Par or Stated Value Per Share | $ 0.05 | $ 0.05 |
Condensed Consolidated Statements of Cash Flows (unaudited) - Cash Reconciliation - USD ($) $ in Thousands |
Dec. 31, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
||
---|---|---|---|---|---|---|
Cash and cash equivalents | $ 39,720 | $ 91,798 | $ 71,430 | $ 73,196 | ||
Restricted cash included in Other Assets | 3,927 | 646 | 643 | 641 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | [1] | $ 43,647 | $ 92,444 | $ 72,073 | $ 73,837 | |
|
Condensed Consolidated Statement of Shareowners' Equity (unaudited) Parentheticals - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Issuance of non-restricted stock, Shares | 11,000 | 6,000 | 24,000 | 15,000 |
Conversion of Class A to Class B common stock, Shares | 1,000 | 55,000 | 1,000 | 57,000 |
Performance Share Issuance, Shares | 67,000 | |||
Vesting of restricted stock units, Shares | 15,000 | |||
Relative total shareholder return performance units issuance, Shares | 32,000 | 48,000 | ||
Repurchase of Common Stock | 62,000 | 65,000 | 62,000 | 65,000 |
Common Stock, Dividends, Per Share, Declared | $ 0.09 | $ 0.09 | $ 0.18 | $ 0.18 |
Note 1. Basis of Presentation (Notes) |
6 Months Ended |
---|---|
Dec. 31, 2020 | |
Basis of Presentation [Abstract] | |
Business Description and Basis of Presentation | Basis of PresentationThe 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. Additionally, based on the duration and severity of the current global situation involving the COVID-19 pandemic, including but not limited to the prolonged reduction in travel and the speed of the recovery of economic conditions globally, the extent to which COVID-19 will impact our business and our consolidated financial results will depend on future developments, which are highly uncertain and cannot be predicted. |
Note 2.Recent Accounting Pronouncements and Supplemental Information (Notes) |
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Recent Accounting Pronouncements and Supplemental Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements and Supplemental Information | Recent Accounting Pronouncements and Supplemental Information Recently Adopted Accounting Pronouncements: In August 2018, the Financial Accounting Standards Board (“FASB”) issued guidance on a customer’s accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor. Under the new guidance, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. The guidance was adopted during our first quarter of fiscal year 2021 and was applied prospectively. The adoption of this guidance did not have a material effect on our condensed consolidated financial statements. In August 2018, the FASB issued guidance which changes the fair value measurement disclosure requirements. The guidance modifies and removes certain disclosures related to the fair value hierarchy, and adds new disclosure requirements such as disclosing the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance was adopted during our first quarter of fiscal year 2021 and was applied retrospectively. The adoption of this guidance did not have a material effect on our condensed 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. In May 2019, the FASB amended the new standard to allow entities to elect the fair value option on certain financial instruments that were previously recorded at amortized cost. In November 2019, the FASB amended the new standard to extend the disclosure relief for accrued interest receivable balances to additional relevant disclosures involving amortized cost basis. The guidance was adopted during our first quarter of fiscal year 2021 and did not have a material effect on our condensed consolidated financial statements. Goodwill and Other Intangible Assets: Goodwill represents the difference between the purchase price and the related underlying tangible and intangible net asset fair values resulting from business acquisitions. Goodwill is assigned to and the fair value is tested at the reporting unit level. Annually, or if conditions indicate an earlier review is necessary, we may assess qualitative factors to determine if it is more likely than not that the fair value is less than its carrying amount. We also have the option to bypass the qualitative assessment and proceed directly to performing the quantitative goodwill impairment test which compares the carrying value of the reporting unit to the reporting unit’s fair value to identify impairment. Under the quantitative assessment, if the fair value of the reporting unit is less than the carrying value, goodwill is written down to its fair value. The fair value is established primarily using a discounted cash flow analysis and secondarily a market approach utilizing current industry information. The calculation of the fair value of the reporting unit considers current market conditions existing at the assessment date. In connection with our annual impairment test, we assessed goodwill associated with the acquisitions of D’style, Inc., and David Edward Furniture, Inc. for impairment during our second quarter of fiscal year 2021, and no goodwill impairment was recognized. As of December 31, 2020 and June 30, 2020 our goodwill totaled $83.0 million and $11.2 million, respectively. During fiscal year 2021, we recorded $71.8 million and $52.4 million, respectively, in goodwill and other intangible assets from the acquisition of Poppin, Inc. See Note 3 - Acquisition of Notes to Condensed Consolidated Financial Statements for more information on this acquisition. Other Intangible Assets reported on the Condensed Consolidated Balance Sheets consist of capitalized software, customer relationships, trade names, acquired technology, patents, trademarks, and non-compete agreements. Intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. A summary of intangible assets subject to amortization is as follows:
Amortization expense related to intangible assets was, in thousands, $1,049 and $1,702 during the quarter and year-to-date period ended December 31, 2020, and was, in thousands, $547 and $1,068 during the quarter and year-to-date period ended December 31, 2019. Amortization expense in future periods is expected to be, in thousands, $4,918 for the remainder of fiscal year 2021, and $9,182, $8,344, $7,754, and $7,565 in the four years ending June 30, 2025, and $30,278 thereafter. The estimated useful life of capitalized software ranges from 2 to 10 years. The amortization period for customer relationship intangible assets ranges from 10 to 20 years. The estimated useful life of trade names is 10 years. The amortization period for acquired technology is 7 years. The estimated useful life of non-compete agreements is 5 years. The estimated useful life of patents is 14 years and the estimated useful life of trademarks is 15 years. Capitalized software is stated at cost less accumulated amortization and is amortized using the straight-line method. During the software application development stage, capitalized costs include external consulting costs, cost of software licenses, and internal payroll and payroll-related costs for employees who are directly associated with a software project. Upgrades and enhancements are capitalized if they result in added functionality which enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion, and business process re-engineering costs are expensed in the period in which they are incurred. Trade names, non-compete agreements, acquired technology, patents and trademarks are amortized on a straight-line basis over their estimated useful lives. Capitalized customer relationships are amortized based on estimated attrition rates of customers. We have no intangible assets with indefinite useful lives which are not subject to amortization. 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 non accrual 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 considers several factors including historical write-off experience, overall customer credit quality in relation to general economic and market conditions, and specific customer account analyses to estimate the collectability of certain accounts. The specific customer account analyses considers such items as aging, credit worthiness, payment history, and historical bad debt experience. 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. 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, amortization of actuarial 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:
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Note 3. Acquisition (Notes) |
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Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | AcquisitionDuring the second quarter of fiscal year 2021, we acquired Poppin, Inc. (“Poppin”), a tech-enabled, market-leading B2B commercial furniture design company headquartered in New York City, New York. Poppin designs commercial-grade furniture that is made to mix, match, and scale in today’s modern office and work-from-home environments. The acquisition purchase price totaled $110.2 million in initial cash consideration plus additional contingent payments, if all milestones are achieved, of $70 million based on revenue and profitability milestones achieved through June 30, 2024. As of the acquisition date the fair value of the contingent earn-out was $31.8 million. The $110.2 million initial cash consideration is subject to certain post-closing working capital and other customary adjustments. Proforma financial information will be filed on a Current Report on Form 8-K/A in late February. A summary of the preliminary purchase price allocation is as follows:
The operating results of this acquisition are included in our consolidated financial statements beginning on December 9, 2020. For both the quarter and year-to-date periods ended December 31, 2020, net sales and net loss related to Poppin were $2.7 million and $1.0 million, respectively. Direct costs of the acquisition during both the quarter and year-to-date periods ended December 31, 2020, of approximately $3.4 million were expensed as incurred and were included on the Selling and Administrative Expenses line of our Condensed Consolidated Statements of Income. The goodwill is not deductible for tax purposes. Goodwill is primarily attributable to the anticipated supply chain and revenue synergies including cross selling initiatives expected from the operations of the combined company. See Note 2 - Recent Accounting Pronouncements and Supplemental Information of Notes to Condensed Consolidated Financial Statements for more information on goodwill and other intangible assets. The purchase price allocation is provisional pending final valuations and purchase accounting adjustments, which were not final as of December 31, 2020. We utilized management estimates and consultation with an independent third-party valuation firm to assist in the valuation process. Pro Forma Information The following unaudited pro forma financial information summarizes the combined results of operations for Kimball International, Inc. and Poppin, Inc. as if the companies were combined as of the beginning of fiscal year 2020:
This pro forma financial information is based on historical results of operations, adjusted for the allocation of the purchase price and other acquisition accounting adjustments. This pro forma information is not necessarily indicative of what our results would have been had we operated the businesses since the beginning of the periods presented. The pro forma adjustments reflect the income statement effects of amortization of intangibles related to the fair value adjustments of the assets acquired, acquisition-related costs, incremental interest expense, and the related tax effects.
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Note 4. Restructuring (Notes) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure | Restructuring We recognized pre-tax restructuring expense of $1.6 million and $5.9 million in the three and six months ended December 31, 2020, respectively, and recognized $1.4 million and $5.7 million for the three and six months ended December 31, 2019. We utilized available market prices and management estimates to determine the fair value of impaired assets. Restructuring is included in the Restructuring Expense line item on our Condensed Consolidated Statements of Income. Transformation Restructuring Plan Phase 1: In June 2019, we announced a transformation restructuring plan to optimize resources for future growth, improve efficiency, and build capabilities across our organization. We believe phase 1 of our transformation restructuring plan has established a more cost-efficient structure to better align our operations with our long-term strategic goals. The transformation restructuring plan includes the following: •We reviewed our overall manufacturing facility footprint to reduce excess capacity and gain efficiencies by centralizing manufacturing operations. We have ceased operations at a leased seating manufacturing facility in Martinsville, Virginia, and consolidated a David Edward production facility in Red Lion, Pennsylvania into our Baltimore, Maryland facility. •The creation of center-led functions for finance, human resources, information technology and legal functions resulted in the standardization of processes and the elimination of duplication. In addition, we centralized our supply chain efforts to maximize supplier value and plan to drive more efficient practices and operations within our logistics function. •Kimball brand selling resources were reallocated to higher-growth markets. We also ceased use of four leased furniture showrooms across our brands during the first quarter of fiscal year 2020 and recognized impairment of the lease and associated leasehold improvements. Additional impairment was recognized in our fourth quarter of fiscal year 2020 due to degradation of sublease assumptions resulting from the current economic environment. We estimate that the total pre-tax restructuring charges upon completion of the plan will be approximately $11.3 million. The restructuring charges are expected to consist of approximately $3.6 million for severance and other employee-related costs, $3.6 million for facility exit and other costs, and $4.1 million for asset impairment. Approximately 55% of the total cost estimate is expected to be cash expense. A summary of the charges recorded in connection with phase 1 of the transformation restructuring plan is as follows:
A summary of the current period activity in accrued restructuring related to phase 1 of the transformation restructuring plan is as follows:
Transformation Restructuring Plan Phase 2: In August 2020, we announced the next phase of our transformation restructuring plan that will align our business units to a new market-centric orientation and is expected to yield additional cost savings that will aid us in effectively managing through the downturn caused by the COVID-19 pandemic. Phase 2 of the transformation restructuring plan builds on the initial strategy and the transformation restructuring plan announced in June 2019. The following is a summary of the activities we will be undertaking pursuant to phase 2 of the transformation restructuring plan: •As part of the previously announced plan to consolidate manufacturing of all brands into one world-class global operations group, we are streamlining our manufacturing facilities by leveraging production capabilities across all facilities, establishing centers of excellence, and setting up processes to facilitate flexing of product between facilities in response to volume fluctuations. We are also reviewing our overall facility footprint to identify opportunities to reduce capacity and gain efficiencies. •We are streamlining our workforce to align with the new organizational structure and respond to lower volumes created by the COVID-19 pandemic, creating a more efficient organization to deliver on our Connect 2.0 strategy. Phase 2 of the transformation restructuring plan began in the first quarter of our fiscal year 2021, and we expect a substantial majority of the underlying activities of these aforementioned actions to be completed within two years. In addition to the savings already generated from phase 1 of the transformation restructuring plan, the efforts of the phase 2 transformation restructuring plan are expected to generate annualized pre-tax savings of approximately $16.0 million when it is fully implemented. We currently estimate the phase 2 transformation restructuring plan will incur total pre-tax restructuring charges of approximately $15.0 million to $16.0 million, with $10.0 million to $11.0 million expected to be recorded in fiscal year 2021, and the remainder in fiscal year 2022. The restructuring charges are expected to consist of approximately $6.3 million to $6.7 million for severance and other employee-related costs, $3.7 million to $4.1 million for facility costs, and $5.0 million to $5.2 million for lease and other asset impairment. Approximately 70% of the total cost estimate is expected to be cash expense. A summary of the charges recorded in connection with phase 2 of the transformation restructuring plan is as follows:
A summary of the current period activity in accrued restructuring related to phase 2 of the transformation restructuring plan is as follows:
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Note 5. Revenue (Notes) |
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Revenue from Contract with Customer [Text Block] | Revenue Disaggregation of Revenue The following table provides information about revenue by end market:
The Workplace, Health, and Hospitality end markets align with the reorganization which occurred at the beginning of fiscal year 2021. Our Workplace end market includes sales to the commercial, financial, government and education vertical markets. We report revenue under a single aggregated reportable segment consisting of three operating segments which have similar products and services in nature, utilize similar production and distribution processes, and share similar long-term economic characteristics. Contract Balances Receivables in the Condensed Consolidated Balance Sheets represent the amount of consideration to which we are entitled in exchange for the goods or services sold to our customers, net of allowances for doubtful accounts. Receivables are recorded when the right to consideration from the customer becomes unconditional, which is generally upon billing or upon satisfaction of a performance obligation, whichever is earlier. We also receive deposits from certain customers before revenue is recognized, resulting in the recognition of a contract liability reported as Customer Deposits in the Condensed Consolidated Balance Sheets. Customer deposits are typically utilized within a year of the receipt of the deposit. The amount of revenue recognized during the six months ended December 31, 2020 that was included in the June 30, 2020 customer deposit balance was $13.3 million.
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Note 6. Leases (Notes) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases of Lessee Disclosure [Text Block] | Leases We have operating leases for showrooms, manufacturing facilities, warehouses, certain offices, and other facilities to support our operations in addition to select equipment that expire at various dates through 2027. We have no financing leases. Certain operating lease agreements include rental payments adjusted periodically for inflationary indexes. Additionally, some leases include options to renew or terminate the leases which can be exercised at our discretion. Lease terms include the noncancellable portion of the underlying leases along with any reasonably certain lease periods associated with available renewal periods. Certain leases have terms that are dependent upon the occurrence of events, activities, or circumstances in lease agreements and incur variable lease expense driven by warehouse square footage utilized, property taxes assessed, and other non-lease component charges. Variable lease expense is presented as operating expense in our Condensed Consolidated Statements of Income and Comprehensive Income in the same line item as expense arising from fixed lease payments for operating leases. For all classes of assets, we do not separate non-lease components of a contract from the lease components to which they relate. We do not recognize a right-of-use asset or lease liability for short-term leases that have a lease term of twelve months or less. The components of our lease expenses are as follows:
Right-of-use assets for operating leases are tested for impairment in the same manner as long-lived assets used in operations as explained in Note 13 - Fair Value of Notes to Condensed Consolidated Financial Statements. During the first quarter of fiscal year 2021, we recorded $0.2 million of right-of-use asset and associated leasehold improvement impairment resulting from consolidating a production facility in Red Lion, Pennsylvania into our Baltimore, Maryland facility as part of our transformation restructuring plan. During the first quarter of fiscal year 2020, we recorded $2.2 million of right-of-use asset and associated leasehold improvement impairment resulting from ceasing use of four furniture showrooms as part of our transformation restructuring plan. The impairment charges are included in the Restructuring Expense line item on our Condensed Consolidated Statements of Income. Supplemental cash flow and other information related to leases are as follows:
The following table summarizes the future minimum lease payments as of December 31, 2020:
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Note 7. Earnings Per Share (Notes) |
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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.
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Note 8. Income Taxes (Notes) |
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Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 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 six months ended December 31, 2020 was 31.3%, which was higher than the combined federal and state statutory tax rate due to nondeductible acquisition expenses related to the Poppin, Inc. acquisition and nondeductible officer compensation which was not fully offset by tax credits. Our effective tax rate for the three months ended December 31, 2020 was a negative tax rate of (34.1)%, as nondeductible costs outweighed the tax benefit from the pre-tax loss during the quarter. Our effective tax rate of 28.4% and 27.9%, respectively, for the three and six months ended December 31, 2019, was higher than statutory rates primarily due to nondeductible expenses and a prior year state tax provision adjustment. During the second quarter of fiscal year 2021, we acquired U.S. federal net operating losses (“NOLs”) of approximately $75.7 million in connection with the Poppin, Inc. acquisition, of which an estimated $72.7 million will be available to offset future taxable income during the carryforward period based on limitations under Section 382 of the Internal Revenue Code of 1986, as amended. Approximately $60.1 million of federal NOLs expire between fiscal years 2032 and 2037 and the remaining available federal NOLs can be carried forward indefinitely. We also acquired state NOLs of approximately $91.3 million in connection with the Poppin, Inc. acquisition, of which an estimated $66.7 million will available to offset future taxable income during the carryforward periods. We provided a full valuation allowance against the available state NOLs, as we do not have sufficient positive evidence at this time to conclude that Poppin, Inc. will be able to utilize the NOL carryforwards in the states where the losses were generated, considering state limitations on the utilization of NOLs.
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Note 9. Inventories (Notes) |
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Inventories [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure | Inventories Inventory components were as follows:
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Note 10. Accumulated Other Comprehensive Income (Notes) |
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Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Comprehensive Income | Accumulated Other Comprehensive Income During the three months ended December 31, 2020 and 2019, the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows:
During the six months ended December 31, 2020 and 2019, the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows:
The following reclassifications were made from Accumulated Other Comprehensive Income to the Condensed Consolidated Statements of Income:
Amounts in parentheses indicate reductions to income. (1) See Note 16 - Postemployment Benefits of Notes to Condensed Consolidated Financial Statements for further information on postemployment benefit plans.
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Note 11. Short-Term and Long-Term Debt (Notes) |
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Debt Disclosure | Short-Term and Long-Term Debt Short-term borrowings and long-term debt consisted of the following obligations:
As of December 31, 2020 we had a $125 million credit facility with a maturity date of October 2024 that allowed for both issuances of letters of credit and cash borrowings. We also have an option to request an increase of the amount available for borrowing to $200 million, subject to participating banks’ consent. The loans under the Credit Agreement could consist of, at our election, advances in U.S. dollars or advances in any other currency that was agreed to by the lenders. The proceeds of the loans are to be used for general corporate purposes including acquisitions. A portion of the credit facility, not to exceed $10 million of the principal amount, was available for the issuance of letters of credit. At December 31, 2020, we had $1.6 million in letters of credit outstanding, which reduced our borrowing capacity on the credit facility. Total availability to borrow under the credit facility totaled $83.4 million at December 31, 2020. For the second quarter of fiscal year 2021 and 2020, interest expense incurred and paid was, in thousands, $2 and $0, respectively, and for the year-to date periods of fiscal year 2021 and 2020 was $29 and $14, respectively. The interest rate is dependent on the type of borrowings and will be one of the following two options: •the adjusted London Interbank Offered Rate (“Adjusted LIBO Rate” as defined in the Credit Agreement) in effect two business days prior to the advance (adjusted upwards to reflect bank reserve costs) for such interest period, plus the Eurocurrency Loans margin which can range from 125.0 to 200.0 basis points based on the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA; or •the Alternate Base Rate (the “ABR”) which is defined as the highest of the fluctuating rate per annum equal to the higher of a.prime rate as last quoted by The Wall Street Journal; or b.1% per annum above the Adjusted LIBO rate; or c.0.5% per annum above the Federal Reserve Bank of New York; plus the ABR Loans spread which can range from 25.0 to 100.0 basis points based on the Company's ratio of consolidated total indebtedness to adjusted consolidated EBITDA. We were in compliance with all debt covenants of the credit facility during the six-month period ended December 31, 2020. The most significant financial covenants under the Credit Agreement require: •an adjusted leverage ratio of (a) consolidated total indebtedness minus unencumbered U.S. cash equivalents in excess of $15,000,000 provided that the maximum subtraction shall not exceed $35,000,000 to (b) adjusted consolidated EBITDA, determined as of the end of each of its fiscal quarters for the then most recently ended four fiscal quarters, to not be greater than 3.0 to 1.0, and •an interest coverage ratio, for any period, of (a) Consolidated EBITDA for such period to (b) cash interest expense for such period, calculated on a consolidated basis in accordance with GAAP for the trailing four quarter period then ending, to not be less than 3.00 to 1.00. We acquired Poppin, Inc. subsequent to their borrowing of the Payment Protection Program (“PPP”) loan, and we hold restricted cash in escrow for repayment of the PPP loan. If the PPP loan is forgiven, the proceeds will be paid to the former Poppin, Inc. equityholders per the terms of the agreement and plan of merger.
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Note 12. Commitments and Contingent Liabilities (Notes) |
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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 December 31, 2020, we had a maximum financial exposure from unused standby letters of credit totaling $1.6 million. We are periodically required to provide performance bonds in order to conduct business with certain customers. The bonds are required to provide assurances to customers that the products and services they have purchased will be installed and/or provided properly and without damage to their facilities. We are ultimately liable for claims that may occur against the performance bonds. We had a maximum financial exposure from performance bonds totaling $8.4 million as of December 31, 2020. 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 condensed consolidated financial statements. Accordingly, no liability has been recorded as of December 31, 2020 with respect to the standby letters of credit or performance bonds. We also enter into commercial letters of credit to facilitate payments to vendors and from customers. Product Warranties: We provide an assurance-type warranty that guarantees our product complies with agreed-upon specifications. This warranty is not sold separately and does not convey any additional services to the customer. 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 six months ended December 31, 2020 and 2019 were as follows:
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Note 13. Fair Value (Notes) |
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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. There were 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, 2020. In connection with the acquisition of Poppin, we valued long-lived and intangible assets at their estimated fair values at the acquisition date. The fair value estimates for intangible assets were based upon assumptions related to the future cash flows and discount rates utilizing currently available information, and in some cases, valuation results from independent valuation specialists (Level 3 determination of fair value). Subsequent to the acquisition, we may determine the fair value of our long-lived and intangible assets on a non-recurring basis in connection with our periodic evaluations of such assets for potential impairment and record impairment charges when such fair value estimates are lower than the carrying values of the assets. As part of the acquisition, contingent earn-out payments up to $70.0 million may be paid based on revenue and profitability milestones achieved through June 30, 2024. As of the December 9, 2020 acquisition date, the fair value of the contingent earn-out liability was $31.8 million. The liability is carried at fair value and is classified in Level 3 of the fair value hierarchy. The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs:
We hold a total investment of $2.0 million in a privately-held company, consisting of $0.5 million in equity securities without readily determinable fair value and $1.5 million in stock warrants. The investment in equity securities without readily determinable fair value is classified as a Level 3 financial asset, 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 14 - Investments of Notes to Condensed Consolidated Financial Statements for further information regarding the investment in equity securities without readily determinable fair value, and Note 15 - 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 six months ended December 31, 2020. Financial Instruments Recognized at Fair Value: The following methods and assumptions were used to measure fair value:
Recurring Fair Value Measurements: As of December 31, 2020 and June 30, 2020, the fair values of financial assets that are measured at fair value on a recurring basis using the market or income approach are categorized as follows:
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 14 - Investments of Notes to Condensed Consolidated Financial Statements for further information regarding the SERP. Non-Recurring Fair Value Measurements: Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments when events or circumstances indicate a significant adverse effect on the fair value of the asset. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs.
During the first quarter of fiscal year 2021, we recorded $0.2 million of right-of-use asset and associated leasehold improvement impairment resulting from consolidating a production facility in Red Lion, Pennsylvania into our Baltimore, Maryland facility as part of our transformation restructuring plan. During the first quarter of fiscal year 2020, due to ceasing use of four showrooms related to the Transformation Restructuring Plan, we recognized an impairment loss of $2.2 million to reduce the related asset groups to fair value. The impairment loss is included as a component of the Restructuring Expense line item on our Condensed Consolidated Statements of Income. The asset groups used to calculate impairment included the right-of-use lease assets, leasehold improvements, and lease liabilities. 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:
On a periodic basis, but no less frequently than quarterly, the investment in equity securities without readily determinable fair value is qualitatively 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 investment exceeds its fair value would be recorded as an impairment loss. See Note 14 - Investments of Notes to Condensed Consolidated Financial Statements for the carrying amount of this investment. The carrying value of our cash deposit accounts, trade accounts receivable, trade accounts payable, customer deposits, debt, and dividends payable approximates fair value due to their relatively short maturity and immaterial non-performance risk.
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Note 14. Investments (Notes) |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | Investments Investment Portfolio: Our investment portfolio consists of certificates of deposit purchased in the secondary market. 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:
All investments are classified as available-for-sale securities which are recorded at fair value. See Note 13 - 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 Shareholders’ Equity.
No investments were in a continuous unrealized loss position for greater than twelve months as of December 31, 2020. There were no realized gains or losses as a result of sales in the three and six months ended December 31, 2020 and December 31, 2019. Supplemental Employee Retirement Plan Investments: We maintain a self-directed 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 the Other Income (Expense) section of the Condensed Consolidated Statements of Income. Adjustments made to revalue the SERP liability are also recognized in income or expense as selling and administrative expenses and offset valuation adjustments on SERP investment assets. Net unrealized holding gains for the six months ended December 31, 2020 and 2019 were, in thousands, $1,747 and $418, respectively. SERP asset and liability balances were as follows:
Equity securities without readily determinable fair value: We hold a total investment of $2.0 million in a privately-held company, including $0.5 million in equity securities without readily determinable fair value. The investment in equity securities without readily determinable fair value is included in the Other Assets line of the Condensed Consolidated Balance Sheets. See Note 13 - 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.
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Note 15. Derivative Instruments (Notes) |
6 Months Ended |
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Dec. 31, 2020 | |
Derivative Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | Derivative InstrumentsWe 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 December 31, 2020, the change in fair value of the stock warrants was not significant. See Note 13 - Fair Value of Notes to Condensed Consolidated Financial Statements for more information on the valuation of these securities. |
Note 16. Postemployment Benefits (Notes) |
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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:
The benefit cost in the above table includes only normal recurring levels of severance activity, as estimated using an actuarial method. Unusual or non-recurring severance actions, such as restructuring actions, are not estimable using actuarial methods and are expensed in accordance with the applicable U.S. GAAP.
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Note 17. Stock Compensation (Notes) |
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Stock Compensation Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments | Stock Compensation Stock-based compensation expense during the quarter and year-to-date period ended December 31, 2020 was $1.3 million and $2.3 million, respectively, and during the quarter and year-to-date period ended December 31, 2019 was $1.1 million and $3.2 million, respectively. The total income tax benefit for stock compensation arrangements during the quarter and year-to-date period ended December 31, 2020 was $0.3 million and $0.6 million, respectively, and during the quarter and year-to-date period ended December 31, 2019 was $0.3 million and $0.8 million, respectively. During fiscal year 2021, 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 2017 Stock 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, 2020.
(1) Performance units were awarded to key officers under the Company’s Relative Total Shareholder Return program. Vesting occurs at June 30, 2021, June 30, 2022, and June 30, 2023. 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 190,664. (2) Restricted stock units were awarded to officers and key employees. Vesting occurs at June 30, 2021, December 31, 2021, June 30, 2022, December 31, 2022, June 30, 2023, and December 31, 2023. Upon vesting, the outstanding number of restricted stock units and the value of dividends accumulated over the vesting period are converted to shares of common stock. (3) 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. (4) 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 stock units that receive dividends and unrestricted shares was based on the stock price at the date of the award.
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Note 18. Variable Interest Entities (Notes) |
6 Months Ended |
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Dec. 31, 2020 | |
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 equity securities without readily determinable fair value and stock warrants and notes receivable related to independent dealership financing. The equity securities without readily determinable fair value and stock warrants were valued at $0.5 million and $1.5 million, respectively, at both December 31, 2020 and June 30, 2020 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 13 - Fair Value of Notes to Condensed Consolidated Financial Statements. The carrying value of the notes receivable for independent dealership financing were $0.6 million at December 31, 2020 and $0.9 million at June 30, 2020 and were included on the Receivables and Other Assets lines 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 December 31, 2020.
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Note 1. Basis of Presentation (Policies) |
6 Months Ended |
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Dec. 31, 2020 | |
Basis of Presentation [Abstract] | |
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 Pronouncements and Supplemental Information (Policies) |
6 Months Ended |
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Dec. 31, 2020 | |
Recent Accounting Pronouncements and Supplemental Information [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements: In August 2018, the Financial Accounting Standards Board (“FASB”) issued guidance on a customer’s accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor. Under the new guidance, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. The guidance was adopted during our first quarter of fiscal year 2021 and was applied prospectively. The adoption of this guidance did not have a material effect on our condensed consolidated financial statements. In August 2018, the FASB issued guidance which changes the fair value measurement disclosure requirements. The guidance modifies and removes certain disclosures related to the fair value hierarchy, and adds new disclosure requirements such as disclosing the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance was adopted during our first quarter of fiscal year 2021 and was applied retrospectively. The adoption of this guidance did not have a material effect on our condensed 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. In May 2019, the FASB amended the new standard to allow entities to elect the fair value option on certain financial instruments that were previously recorded at amortized cost. In November 2019, the FASB amended the new standard to extend the disclosure relief for accrued interest receivable balances to additional relevant disclosures involving amortized cost basis. The guidance was adopted during our first quarter of fiscal year 2021 and did not have a material effect on our condensed consolidated financial statements.
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Goodwill | Goodwill represents the difference between the purchase price and the related underlying tangible and intangible net asset fair values resulting from business acquisitions. Goodwill is assigned to and the fair value is tested at the reporting unit level. Annually, or if conditions indicate an earlier review is necessary, we may assess qualitative factors to determine if it is more likely than not that the fair value is less than its carrying amount. We also have the option to bypass the qualitative assessment and proceed directly to performing the quantitative goodwill impairment test which compares the carrying value of the reporting unit to the reporting unit’s fair value to identify impairment. Under the quantitative assessment, if the fair value of the reporting unit is less than the carrying value, goodwill is written down to its fair value. The fair value is established primarily using a discounted cash flow analysis and secondarily a market approach utilizing current industry information. The calculation of the fair value of the reporting unit considers current market conditions existing at the assessment date. |
Impairment Or Disposal Of Intangible Assets | Intangible assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. |
Intangible Assets | Capitalized software is stated at cost less accumulated amortization and is amortized using the straight-line method. During the software application development stage, capitalized costs include external consulting costs, cost of software licenses, and internal payroll and payroll-related costs for employees who are directly associated with a software project. Upgrades and enhancements are capitalized if they result in added functionality which enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion, and business process re-engineering costs are expensed in the period in which they are incurred. Trade names, non-compete agreements, acquired technology, patents and trademarks are amortized on a straight-line basis over their estimated useful lives. Capitalized customer relationships are amortized based on estimated attrition rates of customers. |
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 non accrual 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 considers several factors including historical write-off experience, overall customer credit quality in relation to general economic and market conditions, and specific customer account analyses to estimate the collectability of certain accounts. The specific customer account analyses considers such items as aging, credit worthiness, payment history, and historical bad debt experience. 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.
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Non-operating Income and 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, amortization of actuarial 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 4. Restructuring (Policies) |
3 Months Ended |
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Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Impairment or Disposal of Long-Lived Assets, Policy | We utilized available market prices and management estimates to determine the fair value of impaired assets. Restructuring is included in the Restructuring Expense line item on our Condensed Consolidated Statements of Income. |
Note 6. Leases (Policies) |
6 Months Ended |
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Dec. 31, 2020 | |
Leases [Abstract] | |
Recognition of Asset and Liability for Lease [Policy Text Block] | Certain leases have terms that are dependent upon the occurrence of events, activities, or circumstances in lease agreements and incur variable lease expense driven by warehouse square footage utilized, property taxes assessed, and other non-lease component charges. Variable lease expense is presented as operating expense in our Condensed Consolidated Statements of Income and Comprehensive Income in the same line item as expense arising from fixed lease payments for operating leases. |
Separation of Lease and Nonlease Components [Policy Text Block] | For all classes of assets, we do not separate non-lease components of a contract from the lease components to which they relate. |
Short-term Leases [Policy Text Block] | We do not recognize a right-of-use asset or lease liability for short-term leases that have a lease term of twelve months or less. |
Note 8. Income Taxes (Policies) |
6 Months Ended |
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Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax, Policy [Policy Text Block] | 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. |
Note 9. Inventories (Policies) |
6 Months Ended |
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Dec. 31, 2020 | |
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 12. Commitments and Contingent Liabilities (Policies) |
6 Months Ended |
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Dec. 31, 2020 | |
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 13. Fair Value (Policies) |
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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. There were 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, 2020.
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Fair Value of Financial Instruments Policy Continued | The following methods and assumptions were used to measure fair value:
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Fair Value Measurement, Non-recurring, Policy [Policy Text Block] | Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments when events or circumstances indicate a significant adverse effect on the fair value of the asset. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs.
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Fair Value of 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:
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Note 17. Stock Compensation (Policies) |
6 Months Ended |
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Dec. 31, 2020 | |
Stock Compensation Plan [Abstract] | |
Share-based Payment Arrangement [Policy Text Block] | 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 stock units that receive dividends and unrestricted shares was based on the stock price at the date of the award. |
Note 2. Recent Accounting Pronouncements and Supplemental Information (Tables) |
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Schedule of Finite-Lived Intangible Assets | A summary of intangible assets subject to amortization is as follows:
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Components of Non-operating income (expense), net | Components of the Non-operating income (expense), net line, were:
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Note 3. Acquisition (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | A summary of the preliminary purchase price allocation is as follows:
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Schedule of Business Acquisitions by Acquisition, Contingent Consideration |
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Business Acquisition, Pro Forma Information | The following unaudited pro forma financial information summarizes the combined results of operations for Kimball International, Inc. and Poppin, Inc. as if the companies were combined as of the beginning of fiscal year 2020:
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Note 4. Restructuring (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs Phase 1 | A summary of the charges recorded in connection with phase 1 of the transformation restructuring plan is as follows:
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Restructuring and Related Costs Phase 2 | A summary of the charges recorded in connection with phase 2 of the transformation restructuring plan is as follows:
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Accrued Restructuring Charges Activity Phase 1 | A summary of the current period activity in accrued restructuring related to phase 1 of the transformation restructuring plan is as follows:
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Accrued Restructuring Charges Activity Phase 2 | A summary of the current period activity in accrued restructuring related to phase 2 of the transformation restructuring plan is as follows:
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Note 5. Revenue (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] | The following table provides information about revenue by end market:
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Note 6. Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost [Table Text Block] | The components of our lease expenses are as follows:
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Supplemental cash flow and other information related to leases [Table Text Block] | Supplemental cash flow and other information related to leases are as follows:
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Future Minimum Lease Payments [Table Text Block] | The following table summarizes the future minimum lease payments as of December 31, 2020:
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Note 7. Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted |
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Note 9. Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | Inventory components were as follows:
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Note 10. Accumulated Other Comprehensive Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income | During the three months ended December 31, 2020 and 2019, the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows:
During the six months ended December 31, 2020 and 2019, the changes in the balances of each component of Accumulated Other Comprehensive Income, net of tax, were as follows:
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Reclassifications from Accumulated Other Comprehensive Income | The following reclassifications were made from Accumulated Other Comprehensive Income to the Condensed Consolidated Statements of Income:
Amounts in parentheses indicate reductions to income. (1) See Note 16 - Postemployment Benefits of Notes to Condensed Consolidated Financial Statements for further information on postemployment benefit plans.
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Note 11. Short-Term and Long-Term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Short-term borrowings and long-term debt consisted of the following obligations:
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Note 12. Commitments and Contingent Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingent Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Liability | Changes in the product warranty accrual for the six months ended December 31, 2020 and 2019 were as follows:
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Note 13. Fair Value (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Recurring, Valuation Techniques | The following methods and assumptions were used to measure fair value:
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | As of December 31, 2020 and June 30, 2020, the fair values of financial assets that are measured at fair value on a recurring basis using the market or income approach are categorized as follows:
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Non-recurring Fair Value Adjustment Technique [Table Text Block] |
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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:
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs:
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Note 14. Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Contractual Maturities on Investments | The contractual maturities of our investment portfolio were as follows:
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Unrealized Gain (Loss) on Investments |
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Trading Securities (and Certain Trading Assets) | SERP asset and liability balances were as follows:
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Note 16. Postemployment Benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Note 17. Stock Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Compensation Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value |
(1) Performance units were awarded to key officers under the Company’s Relative Total Shareholder Return program. Vesting occurs at June 30, 2021, June 30, 2022, and June 30, 2023. 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 190,664. (2) Restricted stock units were awarded to officers and key employees. Vesting occurs at June 30, 2021, December 31, 2021, June 30, 2022, December 31, 2022, June 30, 2023, and December 31, 2023. Upon vesting, the outstanding number of restricted stock units and the value of dividends accumulated over the vesting period are converted to shares of common stock. (3) 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. (4) 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 stock units that receive dividends and unrestricted shares was based on the stock price at the date of the award.
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Note 2. Recent Accounting Pronouncements and Supplemental Information - Goodwill and Other Intangible Assets Textuals (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 09, 2020 |
Jun. 30, 2020 |
|
Goodwill, Impairment Loss | $ 0 | |||||
Goodwill | 82,958,000 | $ 82,958,000 | $ 11,160,000 | |||
Amortization | 1,049,000 | $ 547,000 | 1,702,000 | $ 1,068,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 4,918,000 | 4,918,000 | ||||
Finite-Lived Intangible Asset, Expected Amortization, Year One | 9,182,000 | 9,182,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 8,344,000 | 8,344,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 7,754,000 | 7,754,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 7,565,000 | 7,565,000 | ||||
Finite Lived Intangible Assets Amortization Expense After Year Four | 30,278,000 | 30,278,000 | ||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 0 | 0 | ||||
Finite-Lived Intangible Assets, Net | 68,041,000 | $ 68,041,000 | 13,949,000 | |||
Software and Software Development Costs | Minimum | ||||||
Finite-Lived Intangible Asset, Useful Life | 2 years | |||||
Software and Software Development Costs | Maximum | ||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||||
Customer Relationships | ||||||
Finite-Lived Intangible Assets, Net | 16,672,000 | $ 16,672,000 | 5,179,000 | |||
Customer Relationships | Minimum | ||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||||
Customer Relationships | Maximum | ||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||||
Trade Names | ||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||||
Finite-Lived Intangible Assets, Net | 35,244,000 | $ 35,244,000 | 2,618,000 | |||
Non-Compete Agreements | ||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||||
Finite-Lived Intangible Assets, Net | 37,000 | $ 37,000 | 47,000 | |||
Patents | ||||||
Finite-Lived Intangible Asset, Useful Life | 14 years | |||||
Trademarks | ||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||||
Technology-Based Intangible Assets | ||||||
Finite-Lived Intangible Asset, Useful Life | 7 years | |||||
Finite-Lived Intangible Assets, Net | $ 6,941,000 | $ 6,941,000 | $ 0 | |||
Poppin, Inc. | ||||||
Goodwill | $ 71,798,000 | |||||
Finite-Lived Intangible Assets, Net | $ 52,400,000 |
Note 2. Recent Accounting Pronouncements and Supplemental Information - Textuals (Details) |
6 Months Ended |
---|---|
Dec. 31, 2020 | |
Accounts Receivable, Customary Payment Terms | 30 days |
Accounts Receivable, Days Beyond Which Terms Are Considered Extended Payment Terms | 30 days |
Note 2. Recent Accounting Pronouncements and Supplemental Information - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Jun. 30, 2020 |
---|---|---|
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Cost | $ 105,071 | $ 54,391 |
Intangible Assets Accumulated Amortization | 37,030 | 40,442 |
Finite-Lived Intangible Assets, Net Value | 68,041 | 13,949 |
Capitalized Software | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Cost | 42,063 | 43,671 |
Intangible Assets Accumulated Amortization | 33,202 | 37,566 |
Finite-Lived Intangible Assets, Net Value | 8,861 | 6,105 |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Cost | 19,050 | 7,050 |
Intangible Assets Accumulated Amortization | 2,378 | 1,871 |
Finite-Lived Intangible Assets, Net Value | 16,672 | 5,179 |
Trade Names | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Cost | 36,570 | 3,570 |
Intangible Assets Accumulated Amortization | 1,326 | 952 |
Finite-Lived Intangible Assets, Net Value | 35,244 | 2,618 |
Patents and Trademarks | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Cost | 288 | 0 |
Intangible Assets Accumulated Amortization | 2 | 0 |
Finite-Lived Intangible Assets, Net Value | 286 | 0 |
Non-Compete Agreements | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Cost | 100 | 100 |
Intangible Assets Accumulated Amortization | 63 | 53 |
Finite-Lived Intangible Assets, Net Value | 37 | 47 |
Technology-Based Intangible Assets | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Cost | 7,000 | 0 |
Intangible Assets Accumulated Amortization | 59 | 0 |
Finite-Lived Intangible Assets, Net Value | $ 6,941 | $ 0 |
Note 2. Recent Accounting Pronouncements and Supplemental Information - Components of Non-operating income (expense), net (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Gain on Supplemental Employee Retirement Plan Investments | $ 1,381 | $ 716 | $ 2,139 | $ 774 |
Other | (1) | 1 | (16) | (56) |
Non-operating income (expense), net | $ 1,380 | $ 717 | $ 2,123 | $ 718 |
Note 3. Acquisition Textuals (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 09, 2020 |
|
Net Sales | $ 136,197 | $ 192,164 | $ 284,141 | $ 393,616 | |
Net Loss | (838) | $ 11,039 | 4,548 | $ 22,423 | |
Selling, General and Administrative Expenses | |||||
Business Acquisition, Transaction Costs | 3,400 | 3,400 | |||
Poppin, Inc. | |||||
Payments to Acquire Businesses, Gross | 110,199 | ||||
Contingent earn-out liability | $ 31,800 | ||||
Net Sales | 2,700 | 2,700 | |||
Net Loss | $ 1,000 | $ 1,000 | |||
Poppin, Inc. | Maximum | |||||
Contingent earn-out liability | $ 70,000 |
Note 3. Acquisition Schedule of Purchase Price Allocation for Acquisition (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 09, 2020 |
Jun. 30, 2020 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 82,958 | $ 11,160 | |
Poppin, Inc. | |||
Business Acquisition [Line Items] | |||
Cash | $ 5,768 | ||
Receivables | 2,814 | ||
Inventories | 15,718 | ||
Other current assets | 700 | ||
Net property and equipment | 975 | ||
Other intangible assets | 52,394 | ||
Goodwill | 71,798 | ||
Right-of-use operating lease assets | 5,103 | ||
Other long-term assets | 4,161 | ||
Deferred tax assets | 4,664 | ||
Total Assets | 164,095 | ||
Current maturities of long-term debt | 1,252 | ||
Accounts payable | 7,715 | ||
Customer deposits | 2,045 | ||
Current portion of operating lease liability | 1,937 | ||
Accrued expenses | 5,260 | ||
Long-term debt, less current maturities | 1,252 | ||
Long-term operating lease liability | 2,565 | ||
Other long-term liabilities | 80 | ||
Total Liabilities | 22,106 | ||
Net Assets | $ 141,989 |
Note 3. Acquisition Schedule of Consideration for Acquisition (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 09, 2020 |
Jun. 30, 2020 |
|
Business Acquisition, Contingent Consideration [Line Items] | |||
Contingent earn-out liability | $ 31,790 | $ 0 | |
Poppin, Inc. | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Payments to Acquire Businesses, Gross | 110,199 | ||
Contingent earn-out liability | 31,800 | $ 31,790 | |
Fair value of total consideration | 141,989 | ||
Cash Acquired from Acquisition | $ 5,768 | ||
Total consideration less acquired cash | $ 136,221 |
Note 3. Acquisition Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Business Acquisition, Pro Forma Revenue | $ 143,500 | $ 214,727 | $ 304,290 | $ 436,057 |
Business Acquisition, Pro Forma Net Income (Loss) | $ (1,640) | $ 7,969 | $ 1,342 | $ 16,352 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ (0.04) | $ 0.21 | $ 0.04 | $ 0.44 |
Note 4. Restructuring - Restructuring Textuals (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | $ 1,616 | $ 1,396 | $ 5,856 | $ 5,746 |
Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 361 | $ 1,396 | 1,124 | $ 5,746 |
Restructuring and Related Cost, Expected Cost | 11,300 | $ 11,300 | ||
Percentage of Restructuring Costs Expected in Cash | 55.00% | |||
Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 1,255 | $ 4,732 | ||
Effect on Future Earnings, Amount | $ 16,000 | |||
Percentage of Restructuring Costs Expected in Cash | 70.00% | |||
Severance and Other Employee Related Costs | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Expected Cost | 3,600 | $ 3,600 | ||
Facility Closing | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Expected Cost | 3,600 | 3,600 | ||
Lease asset impairment | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Expected Cost | 4,100 | 4,100 | ||
Minimum | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Expected Cost | 15,000 | 15,000 | ||
Restructuring and Related Cost Expected Cost, Fiscal 2021 | 10,000 | 10,000 | ||
Minimum | Severance and Other Employee Related Costs | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Expected Cost | 6,300 | 6,300 | ||
Minimum | Facility Closing | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Expected Cost | 3,700 | 3,700 | ||
Minimum | Lease asset impairment | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Expected Cost | 5,000 | 5,000 | ||
Maximum | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Expected Cost | 16,000 | 16,000 | ||
Restructuring and Related Cost Expected Cost, Fiscal 2021 | 11,000 | 11,000 | ||
Maximum | Severance and Other Employee Related Costs | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Expected Cost | 6,700 | 6,700 | ||
Maximum | Facility Closing | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Expected Cost | 4,100 | 4,100 | ||
Maximum | Lease asset impairment | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring and Related Cost, Expected Cost | $ 5,200 | $ 5,200 |
Note 4. Restructuring - Charges related to Transformation Restructuring Plan (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | $ 1,616 | $ 1,396 | $ 5,856 | $ 5,746 |
Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 361 | 1,396 | 1,124 | 5,746 |
Restructuring and Related Cost, Cost Incurred to Date | 10,550 | 10,550 | ||
Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 1,255 | 4,732 | ||
Restructuring and Related Cost, Cost Incurred to Date | 4,732 | 4,732 | ||
Cash Related Restructuring Expense | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 254 | 1,308 | 647 | 2,983 |
Restructuring and Related Cost, Cost Incurred to Date | 5,509 | 5,509 | ||
Cash Related Restructuring Expense | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 730 | 3,747 | ||
Restructuring and Related Cost, Cost Incurred to Date | 3,747 | 3,747 | ||
Cash Related Restructuring Expense | Severance and Other Employee Related Costs | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 0 | 785 | 62 | 1,991 |
Restructuring and Related Cost, Cost Incurred to Date | 2,884 | 2,884 | ||
Cash Related Restructuring Expense | Severance and Other Employee Related Costs | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 621 | 3,511 | ||
Restructuring and Related Cost, Cost Incurred to Date | 3,511 | 3,511 | ||
Cash Related Restructuring Expense | Facility Closing | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 254 | 523 | 585 | 992 |
Restructuring and Related Cost, Cost Incurred to Date | 2,625 | 2,625 | ||
Cash Related Restructuring Expense | Facility Closing | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 109 | 236 | ||
Restructuring and Related Cost, Cost Incurred to Date | 236 | 236 | ||
Non-Cash Related Restructuring Expense | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 107 | 88 | 477 | 2,763 |
Restructuring and Related Cost, Cost Incurred to Date | 5,041 | 5,041 | ||
Non-Cash Related Restructuring Expense | Transition Equity Compensation | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 0 | 184 | 0 | 654 |
Restructuring and Related Cost, Cost Incurred to Date | 725 | 725 | ||
Non-Cash Related Restructuring Expense | Lease asset impairment | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 73 | (147) | 405 | 2,058 |
Restructuring and Related Cost, Cost Incurred to Date | 4,095 | 4,095 | ||
Non-Cash Related Restructuring Expense | Lease asset impairment | Transformation Restructuring Plan Phase 2 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 525 | 985 | ||
Restructuring and Related Cost, Cost Incurred to Date | 985 | 985 | ||
Non-Cash Related Restructuring Expense | Other non-cash charges | Transformation Restructuring Plan Phase 1 | ||||
Restructuring Expense and Other Related Items | ||||
Restructuring Expense | 34 | $ 51 | 72 | $ 51 |
Restructuring and Related Cost, Cost Incurred to Date | $ 221 | $ 221 |
Note 4. Restructuring - Current Period activity in accrued restructuring related to Transformation Restructuring Reserve (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Jun. 30, 2020 |
|
Transformation Restructuring Plan Phase 1 | ||
Restructuring Expense and Other Related Items | ||
Additions charged to expense | $ 62 | |
Cash payments charged against reserve | (284) | |
Non-cash adjustments | (5) | |
Restructuring Reserve, Current | 5 | $ 232 |
Transformation Restructuring Plan Phase 2 | ||
Restructuring Expense and Other Related Items | ||
Additions charged to expense | 3,703 | |
Cash payments charged against reserve | (2,272) | |
Non-cash adjustments | (192) | |
Restructuring Reserve, Current | 1,239 | 0 |
Severance and Other Employee Related Costs | Transformation Restructuring Plan Phase 1 | ||
Restructuring Expense and Other Related Items | ||
Additions charged to expense | 62 | |
Cash payments charged against reserve | (224) | |
Non-cash adjustments | 0 | |
Restructuring Reserve, Current | 5 | 167 |
Severance and Other Employee Related Costs | Transformation Restructuring Plan Phase 2 | ||
Restructuring Expense and Other Related Items | ||
Additions charged to expense | 3,703 | |
Cash payments charged against reserve | (2,272) | |
Non-cash adjustments | (192) | |
Restructuring Reserve, Current | 1,239 | 0 |
Other Charges | Transformation Restructuring Plan Phase 1 | ||
Restructuring Expense and Other Related Items | ||
Additions charged to expense | 0 | |
Cash payments charged against reserve | (60) | |
Non-cash adjustments | (5) | |
Restructuring Reserve, Current | 0 | 65 |
Other Charges | Transformation Restructuring Plan Phase 2 | ||
Restructuring Expense and Other Related Items | ||
Additions charged to expense | 0 | |
Cash payments charged against reserve | 0 | |
Non-cash adjustments | 0 | |
Restructuring Reserve, Current | $ 0 | $ 0 |
Note 5. Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Net Sales | $ 136,197 | $ 192,164 | $ 284,141 | $ 393,616 |
Workplace | ||||
Net Sales | 87,400 | 114,400 | 182,700 | 240,100 |
Health | ||||
Net Sales | 27,000 | 28,200 | 47,600 | 57,100 |
Hospitality | ||||
Net Sales | $ 21,800 | $ 49,600 | $ 53,800 | $ 96,400 |
Note 5. Revenue - Revenue Textuals (Details) $ in Millions |
6 Months Ended |
---|---|
Dec. 31, 2020
USD ($)
| |
Contract with Customer, Liability, Revenue Recognized | $ 13.3 |
Note 6. Leases - Components of Lease Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Operating lease expense | $ 1.0 | $ 0.8 | $ 1.8 | $ 1.6 |
Variable lease expense | 0.6 | 0.6 | 1.3 | 1.3 |
Total lease expense | $ 1.6 | $ 1.4 | $ 3.1 | $ 2.9 |
Note 6. Leases - Supplemental Cash Flow relating to Leases (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Leases [Abstract] | ||
Operating lease payments impacting lease liability | $ 2.5 | $ 2.4 |
Non-cash impact of obtaining new right-of-use assets | $ 5.1 | $ 0.1 |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 7 months 6 days | 6 years |
Operating Lease, Weighted Average Discount Rate, Percent | 4.50% | 4.60% |
Note 6. Leases - Summary of future lease payments (Details) $ in Millions |
Dec. 31, 2020
USD ($)
|
---|---|
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 3.5 |
Lessee, Operating Lease, Liability, to be Paid, Year One | 6.6 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 5.6 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 3.4 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 2.7 |
Lessee, Operating Lease, Liability, Payments, Due after Year Four | 2.6 |
Lessee, Operating Lease, Liability, Payments, Due | 24.4 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 2.3 |
Operating Lease, Liability | $ 22.1 |
Note 6. Leases - Leases Textuals (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2020 |
|
Finance Lease, Liability | $ 0 | ||
Operating Lease, Impairment Loss, Right-of-Use Asset | $ 200,000 | $ 2,200,000 |
Note 7. Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Net Income (Loss) Attributable to Parent | $ (838) | $ 11,039 | $ 4,548 | $ 22,423 |
Average Shares Outstanding for Basic EPS Calculation | 36,962 | 36,921 | 36,968 | 36,929 |
Dilutive Effect of Average Outstanding Compensation Awards | 0 | 300 | 497 | 345 |
Average Shares Outstanding for Diluted EPS Calculation | 36,962 | 37,221 | 37,465 | 37,274 |
Basic Earnings (Loss) Per Share | $ (0.02) | $ 0.30 | $ 0.12 | $ 0.61 |
Diluted Earnings (Loss) Per Share | $ (0.02) | $ 0.30 | $ 0.12 | $ 0.60 |
Note 7. Earnings Per Share Textuals (Details) shares in Thousands |
3 Months Ended |
---|---|
Dec. 31, 2020
shares
| |
Restricted Stock Units (RSUs) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 681 |
Relative Total Shareholder Return | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 164 |
Note 8. Income Taxes - Textuals (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Effective Income Tax Rate Reconciliation, Percent | (34.10%) | 28.40% | 31.30% | 27.90% |
Poppin, Inc. | Domestic Tax Authority | ||||
Operating Loss Carryforwards | $ 72,700 | $ 72,700 | ||
Operating Loss Carryforwards Before Tax Limitation | 75,700 | 75,700 | ||
Operating Losses Expiring After Carryforward Period | 60,100 | 60,100 | ||
Poppin, Inc. | State and Local Jurisdiction | ||||
Operating Loss Carryforwards | 66,700 | 66,700 | ||
Operating Loss Carryforwards Before Tax Limitation | $ 91,300 | $ 91,300 |
Note 9. Inventories - Inventory Components (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Jun. 30, 2020 |
---|---|---|
Finished products | $ 44,164 | $ 29,081 |
Work-in-process | 1,145 | 1,648 |
Raw materials | 31,526 | 35,295 |
Total FIFO inventory | 76,835 | 66,024 |
LIFO reserve | (16,636) | (16,167) |
Total inventory | $ 60,199 | $ 49,857 |
Note 10. Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income at beginning of period | $ 2,168 | $ 1,976 | $ 2,137 | $ 1,937 |
Other Comprehensive Income (Loss) before Reclassifications | 82 | 211 | 196 | 315 |
Reclassification to (earnings) loss | (81) | (67) | (164) | (132) |
Net current-period other comprehensive income (loss) | 1 | 144 | 32 | 183 |
Accumulated Other Comprehensive Income at end of period | 2,169 | 2,120 | 2,169 | 2,120 |
Unrealized Investment Gain (Loss) | ||||
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income at beginning of period | 14 | 17 | 32 | 23 |
Other Comprehensive Income (Loss) before Reclassifications | (10) | (9) | (28) | (15) |
Reclassification to (earnings) loss | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | (10) | (9) | (28) | (15) |
Accumulated Other Comprehensive Income at end of period | 4 | 8 | 4 | 8 |
Postemployment Benefits, Net Actuarial Gain (Loss) | ||||
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income at beginning of period | 2,154 | 1,959 | 2,105 | 1,914 |
Other Comprehensive Income (Loss) before Reclassifications | 92 | 220 | 224 | 330 |
Reclassification to (earnings) loss | (81) | (67) | (164) | (132) |
Net current-period other comprehensive income (loss) | 11 | 153 | 60 | 198 |
Accumulated Other Comprehensive Income at end of period | $ 2,165 | $ 2,112 | $ 2,165 | $ 2,112 |
Note 10. Accumulated Other Comprehensive Income - Reclassifications from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | $ (28) | $ (23) | $ (57) | $ (46) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (109) | (90) | (221) | (178) |
Total Reclassification for the Period from AOCI | 81 | 67 | 164 | 132 |
Non-operating income (expense), net | ||||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 109 | 90 | 221 | 178 |
Benefit (Provision) for Income Taxes | ||||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | (28) | (23) | (57) | (46) |
Net Income | ||||
Reclassification Adjustment from Accumulated Other Comprehensive Income | ||||
Total Reclassification for the Period from AOCI | $ 81 | $ 67 | $ 164 | $ 132 |
Note 11. Short-Term and Long-Term Debt (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Jun. 30, 2020 |
---|---|---|
Short-term Debt | $ 40,000 | $ 0 |
Total Debt | 42,613 | 136 |
Revolving Credit Facility | ||
Short-term Debt | $ 40,000 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 1.56% | |
PPP Loan | ||
Other Debt | $ 2,504 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |
Other Debt | ||
Other Debt | $ 109 | $ 136 |
Debt Instrument, Interest Rate, Stated Percentage | 9.25% |
Note 11. Short-Term and Long-Term Debt Textuals (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Line of Credit Facility, Maximum Borrowing Capacity | $ 125,000,000 | $ 125,000,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity Upon Request | 200,000,000 | 200,000,000 | ||
Line of Credit Facility, Amount Available for Letters of Credit | 10,000,000 | 10,000,000 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 83,400,000 | 83,400,000 | ||
Interest Paid on Borrowings | 2,000 | $ 0 | 29,000 | $ 14,000 |
Adjusted Leverage Ratio, Indebtedness Reduction For Excess Cash | $ 15,000,000 | $ 15,000,000 | ||
Adjusted Leverage Ratio Covenant | 3.0 | 3.0 | ||
Interest Coverage Ratio Covenant | 3.00 | 3.00 | ||
London Interbank Offered Rate (LIBOR) | Primary Revolving Credit Facility | ||||
Interest Rate Charged Over Index Rate | 1.00% | |||
Federal Funds Rate | ||||
Interest Rate Charged Over Index Rate | 0.50% | |||
Minimum | Eurocurrency Loans Margin | ||||
Line of Credit Facility, Interest Rate Basis Points | 125.0 | |||
Minimum | Alternate Base Rate Loans Spread | ||||
Line of Credit Facility, Interest Rate Basis Points | 25.0 | |||
Maximum | ||||
Adjusted Leverage Ratio, Indebtedness Reduction For Excess Cash | $ 35,000,000 | $ 35,000,000 | ||
Maximum | Eurocurrency Loans Margin | ||||
Line of Credit Facility, Interest Rate Basis Points | 200.0 | |||
Maximum | Alternate Base Rate Loans Spread | ||||
Line of Credit Facility, Interest Rate Basis Points | 100.0 | |||
Financial Standby Letter of Credit | ||||
Letters of Credit, Amount | $ 1,600,000 | $ 1,600,000 |
Note 12. Commitments and Contingent Liabilities - Commitments and Contingent Liabilities Textuals (Details) $ in Thousands |
Dec. 31, 2020
USD ($)
|
---|---|
Financial Standby Letter of Credit | |
Guarantor Obligations | |
Letters of Credit, Amount | $ 1,600 |
Standby Letters of Credit | |
Guarantor Obligations | |
Loss Contingency Accrual, at Carrying Value | 0 |
Performance Guarantee | |
Guarantor Obligations | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 8,400 |
Note 12. Commitments and Contingent Liabilities - Product Warranty (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Product Warranty Liability at the beginning of the period | $ 3,190 | $ 2,238 |
Additions to warranty accrual (including changes in estimates) | 867 | 285 |
Settlements made (in cash or in kind) | (1,025) | (422) |
Product Warranty Liability at the end of the period | $ 3,032 | $ 2,101 |
Note 13. Fair Value - Textuals (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2020 |
Dec. 09, 2020 |
Jun. 30, 2020 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | ||||
Fair Value, Transfers Between Levels, Amount | 0 | ||||
Operating Lease, Impairment Loss | $ 200,000 | $ 2,200,000 | |||
Investment Owned, at Cost | 2,000,000.0 | ||||
Fair Value, Purchases of Level 3 Assets | 0 | ||||
Fair Value, Sales of Level 3 Assets | 0 | ||||
Contingent earn-out liability | 31,790,000 | $ 0 | |||
Poppin, Inc. | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Contingent earn-out liability | 31,800,000 | $ 31,790,000 | |||
Contingent earn-out liability | 31,800,000 | ||||
Poppin, Inc. | Maximum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Contingent earn-out liability | $ 70,000,000.0 | ||||
Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Contingent earn-out liability | 31,790,000 | ||||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Contingent earn-out liability | 0 | ||||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Contingent earn-out liability | 0 | ||||
Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Cost Method Investments | 500,000 | ||||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Contingent earn-out liability | 31,790,000 | ||||
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 | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |||
Warrant | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |||
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 | |||
Not Designated as Hedging Instrument | Other Assets | 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 |
Note 13. Fair Value - Recurring Fair Value Measurements, Unobservable Input Reconciliation (Details) $ in Thousands |
Dec. 31, 2020
USD ($)
|
Dec. 09, 2020
USD ($)
|
Jun. 30, 2020
USD ($)
|
---|---|---|---|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Contingent earn-out liability | $ 31,790 | $ 0 | |
Revenue Discount Rate | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.05 | ||
Revenue Discount Rate | Minimum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.04 | ||
Revenue Discount Rate | Maximum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.06 | ||
EBITDA Volatility | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.50 | ||
EBITDA Volatility | Minimum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.30 | ||
EBITDA Volatility | Maximum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.525 | ||
Revenue Volatility | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.07 | ||
Revenue Volatility | Minimum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.05 | ||
Revenue Volatility | Maximum | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.07 | ||
Poppin, Inc. | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Contingent earn-out liability | $ 31,800 | $ 31,790 |
Note 13. Fair Value - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Jun. 30, 2020 |
---|---|---|
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | $ 13,452 | $ 11,975 |
Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 50,202 | 109,804 |
Contingent earn-out liability | 31,790 | |
Total liabilities at fair value | 31,790 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 47,197 | 103,010 |
Contingent earn-out liability | 0 | |
Total liabilities at fair value | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 1,505 | 5,294 |
Contingent earn-out liability | 0 | |
Total liabilities at fair value | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Total assets at fair value | 1,500 | 1,500 |
Contingent earn-out liability | 31,790 | |
Total liabilities at fair value | 31,790 | |
Warrant | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Derivatives: Stock Warrants | 1,500 | 1,500 |
Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Derivatives: Stock Warrants | 0 | 0 |
Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Recurring Fair Value Measurements: | ||
Derivatives: Stock Warrants | 0 | 0 |
Warrant | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Derivatives: Stock Warrants | 1,500 | 1,500 |
Money Market Funds | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 33,745 | 91,035 |
Money Market Funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Cash equivalents | 33,745 | 91,035 |
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 |
Certificates of Deposit | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 1,505 | 5,294 |
Certificates of Deposit | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 1,505 | 5,294 |
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 2 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 1,505 | 5,294 |
Certificates of Deposit | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Recurring Fair Value Measurements: | ||
Available-for-sale Securities | 0 | 0 |
Mutual Fund | Fair Value, Measurements, Recurring | ||
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | 13,452 | 11,975 |
Mutual Fund | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Recurring Fair Value Measurements: | ||
Trading Securities: Mutual funds in nonqualified SERP | 13,452 | 11,975 |
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 |
Note 14. Investments - Schedule of Contractual Maturities on Investments (Details) - Certificates of Deposit - USD ($) $ in Thousands |
Dec. 31, 2020 |
Jun. 30, 2020 |
---|---|---|
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | $ 1,505 | |
Available-for-sale Securities, Debt Maturities, Rolling Year Two | 0 | |
Available-for-sale Securities | $ 1,505 | $ 5,294 |
Note 14. Investments - Unrealized Gain (Loss) on Investments (Details) - Certificates of Deposit - USD ($) $ in Thousands |
Dec. 31, 2020 |
Jun. 30, 2020 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 1,500 | $ 5,250 |
Available-for-sale Securities, Unrealized holding gains | 5 | 44 |
Available-for-sale Securities, Unrealized holding losses | 0 | 0 |
Fair Value, Available-for-sale Securities | $ 1,505 | $ 5,294 |
Note 14. Investments - Supplemental Employee Retirement Investments Textuals (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Schedule of Trading Securities and Other Trading Assets | ||
Trading Securities, Change in net unrealized holding gains (losses) | $ 1,747 | $ 418 |
Note 14. Investments - Supplemental Employee Retirement Plan Investments (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Jun. 30, 2020 |
---|---|---|
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | $ 13,452 | $ 11,975 |
SERP obligation | 13,452 | 11,975 |
Short-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | 3,284 | 3,622 |
SERP obligation | 3,284 | 3,622 |
Other Long-term Investments | ||
Schedule of Trading Securities and Other Trading Assets | ||
SERP investments | 10,168 | 8,353 |
SERP obligation | $ 10,168 | $ 8,353 |
Note 14. Investments - Investments - Equity securities without readily determinable fair value Textuals (Details) |
3 Months Ended | 6 Months Ended |
---|---|---|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 0 | $ 0 |
Trading Securities, Realized Gain (Loss) | 0 | 0 |
Investment Owned, at Cost | 2,000,000.0 | 2,000,000.0 |
Other Assets | Preferred Stock | ||
Equity securities without readily determinable fair value | $ 500,000 | $ 500,000 |
Note 15. Derivative Instruments - Textuals (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Jun. 30, 2020 |
---|---|---|
Derivative [Line Items] | ||
Investment Owned, at Cost | $ 2,000 | |
Fair Value, Measurements, Recurring | Warrant | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,500 | $ 1,500 |
Fair Value, Measurements, Recurring | Not Designated as Hedging Instrument | Other Assets | Warrant | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,500 |
Note 16. Postemployment Benefits (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Components of Net Periodic Benefit Cost (before tax): | ||||
Service cost | $ 121 | $ 119 | $ 243 | $ 245 |
Interest cost | 10 | 18 | 21 | 37 |
Amortization of actuarial income | (109) | (90) | (221) | (178) |
Net periodic benefit cost | $ 22 | $ 47 | $ 43 | $ 104 |
Note 17. Stock Compensation - Stock Compensation Textuals (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Share-based Payment Arrangement, Expense | $ 1.3 | $ 1.1 | $ 2.3 | $ 3.2 |
Share-based Payment Arrangement, Expense, Tax Benefit | $ 0.3 | $ 0.3 | $ 0.6 | $ 0.8 |
Relative Total Shareholder Return | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Payout Percentage | 0.00% | 0.00% | ||
Relative Total Shareholder Return | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 190,664 | 190,664 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Payout Percentage | 200.00% | 200.00% |
Note 17. Stock Compensation - Stock Compensation Awards (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Sep. 30, 2020 |
|
Relative Total Shareholder Return | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Shares Awarded | 17,285 | 82,036 |
Stock Compensation, Grant Date Fair Value | $ 11.35 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Shares Awarded | 415,513 | 165,529 |
Unrestricted Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Shares Awarded | 11,042 | 12,592 |
Stock Compensation, Grant Date Fair Value | $ 11.02 | |
Minimum | Relative Total Shareholder Return | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Grant Date Fair Value | $ 10.68 | |
Minimum | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Grant Date Fair Value | 11.08 | 10.94 |
Minimum | Unrestricted Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Grant Date Fair Value | 10.65 | |
Maximum | Relative Total Shareholder Return | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Grant Date Fair Value | $ 12.63 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 190,664 | |
Maximum | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Grant Date Fair Value | $ 12.25 | $ 11.28 |
Maximum | Unrestricted Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock Compensation, Grant Date Fair Value | $ 10.67 |
Note 18. Variable Interest Entities -Textuals (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Jun. 30, 2020 |
|
Variable Interest Entity | ||
Variable Interest Entity, Obligation to Provide Additional Funding, Amount | $ 0 | |
Other Assets | ||
Variable Interest Entity | ||
Equity securities not readily marketable | 500 | $ 500 |
Receivables and Other Assets | Independent Dealership Financing | Notes Receivable | ||
Variable Interest Entity | ||
Notes Receivable, Net of Allowance | 600 | 900 |
Warrant | Other Assets | ||
Variable Interest Entity | ||
Derivative Asset, Fair Value, Gross Asset | $ 1,500 | $ 1,500 |
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