Note 6. Fair Value (Tables)

6 Months Ended

Dec. 31, 2015

Fair Value Measurements, Recurring, Valuation Techniques

The following methods and assumptions were used to measure fair value:



Financial Instrument	Level	Valuation Technique/Inputs Used
Cash equivalents	1	Market - Quoted market prices
Derivative assets: foreign exchange contracts	2	Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates, considering counterparty credit risk
Trading securities: mutual funds held by nonqualified supplemental employee retirement plan (SERP)	1	Market - Quoted market prices
Derivative liabilities: foreign exchange contracts	2	Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates adjusted for Kimball Electronics’ non-performance risk

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

As of December 31, 2015 and June 30, 2015, the fair values of financial assets and liabilities that are measured at fair value on a recurring basis using the market approach are categorized as follows:



	December 31, 2015
(Amounts in Thousands)	Level 1		Level 2		Total
Assets
Cash equivalents	$	16,986	$	—	$	16,986
Derivatives: foreign exchange contracts	—		711		711
Trading securities: mutual funds held in nonqualified SERP	5,877		—		5,877
Total assets at fair value	$	22,863	$	711	$	23,574
Liabilities
Derivatives: foreign exchange contracts	$	—	$	2,193	$	2,193
Total liabilities at fair value	$	—	$	2,193	$	2,193

	June 30, 2015
(Amounts in Thousands)	Level 1		Level 2		Total
Assets
Cash equivalents	$	28,722	$	—	$	28,722
Derivatives: foreign exchange contracts	—		3,004		3,004
Trading securities: mutual funds held in nonqualified SERP	5,813		—		5,813
Total assets at fair value	$	34,535	$	3,004	$	37,539
Liabilities
Derivatives: foreign exchange contracts	$	—	$	2,318	$	2,318
Total liabilities at fair value	$	—	$	2,318	$	2,318

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

Financial instruments that are not reflected in the Condensed Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following:



Financial Instrument	Level	Valuation Technique/Inputs Used
Notes receivable	2	Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account non-performance risk