EX-11 3 q102ex11.htm KIMBALL INTERNATIONAL, INC. EXHIBIT 11 Exhibit 11

Exhibit 11

KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE

(Unaudited) Three Months Ended
December 31, 2009		   Three Months Ended
December 31, 2008		  
(Amounts in Thousands, Except for Per Share Data) Class A   Class B   Total   Class A   Class B   Total  
Basic Earnings Per Share:                  
    Dividends Declared  $     487     $  1,337     $  1,824     $     1,748     $  4,208     $  5,956   
    Less: Unvested Participating Dividends  (4)    -0-     (4)    (29)    -0-     (29)  
    Dividends to Common Share Owners  483     1,337     1,820     1,719     4,208     5,927   
    Undistributed Earnings          82             2,226   
    Less: Earnings Allocated to Participating Securities          -0-             (11)  
    Undistributed Earnings allocated to Common Share Owners
  23     59     82     650     1,565     2,215   
    Net Income Available to Common Share Owners  $     506     $  1,396     $  1,902     $     2,369     $  5,773     $  8,142   
 
    Average Basic Common Shares Outstanding		  10,631     26,708     37,339     10,883     26,176     37,059   
 
    Basic Earnings Per Share		  $   0.05     $   0.05         $       0.22     $   0.22       
Diluted Earnings Per Share:                  
    Dividends Declared and Assumed Dividends on Dilutive Shares  $     489     $  1,337     $  1,826     $     1,748     $  4,208     $  5,956   
    Less: Unvested Participating Dividends  (4)    -0-     (4)    (29)    -0-     (29)  
    Dividends and Assumed Dividends to Common Share Owners  485     1,337     1,822     1,719     4,208     5,927   
    Undistributed Earnings          80             2,226   
    Less: Earnings Allocated to Participating Securities          -0-             (11)  
    Undistributed Earnings allocated to Common Share Owners
  23     57     80     656     1,559     2,215   
    Net Income Available to Common Share Owners  $     508     $  1,394     $  1,902     $     2,375     $  5,767     $  8,142   
 
    Average Diluted Common Shares Outstanding		  10,770     26,744     37,514     11,062     26,287     37,349   
 
    Diluted Earnings Per Share		  $   0.05     $   0.05         $       0.21     $   0.22       
Reconciliation of Basic and Diluted EPS Calculations:                        
    Net Income Used for Basic EPS Calculation  $     506     $  1,396     $  1,902     $     2,369     $  5,773     $  8,142   
    Assumed Dividends Payable on Dilutive Shares:                      
        Performance shares  2     -0-     2     -0-     -0-     -0-   
    Increase (Reduction) of Undistributed Earnings - allocated based                        
      on Class A and Class B shares  -0-     (2)    (2)    6     (6)    -0-   
    Net Income Used for Diluted EPS Calculation  $     508     $  1,394     $  1,902     $     2,375     $  5,767     $  8,142   
 
    Average Shares Outstanding for Basic
      EPS Calculation		  10,631     26,708     37,339     10,883     26,176     37,059   
    Dilutive Effect of Average Outstanding:                        
        Performance shares  46     3     49     -0-     -0-     -0-   
        Restricted share units  93     33     126     179     111     290   
    Average Shares Outstanding for Diluted
      EPS Calculation		  10,770     26,744     37,514     11,062     26,287     37,349   
Included in dividends declared for the basic and diluted earnings per share computation are dividends computed and accrued on unvested Class A and Class B restricted share units, which will be paid by a conversion to the equivalent value of common shares after a vesting period.  Restricted share units held by retirement-age participants have a nonforfeitable right to dividends and are deducted from the above dividends and undistributed earnings figures allocable to common Share Owners. Previously reported earnings per share calculations for the three months ended December 31, 2008 have been recast as a result of FASB guidance on determining whether instruments granted in share-based payment transactions are participating securities. See Note 1 - Summary of Significant Accounting Policies of Notes to Condensed Consolidated Financial Statements for further discussion.  
All of the 708,000 and 749,000 average outstanding stock options were antidilutive and were excluded from the dilutive calculations for the quarters ended December 31, 2009 and 2008, respectively. In addition, 127,000 performance shares were antidilutive and were excluded from the dilutive calculation for the quarter ended December 31, 2008.  


(Unaudited) Six Months Ended
December 31, 2009		   Six Months Ended
December 31, 2008
(Amounts in Thousands, Except for Per Share Data) Class A   Class B   Total   Class A   Class B   Total
Basic Earnings Per Share:                
    Dividends Declared  $     979     $  2,664     $  3,643     $  3,627     $  8,280     $ 11,907 
    Less: Unvested Participating Dividends  (9)    -0-     (9)    (59)    -0-     (59)
    Dividends to Common Share Owners  970     2,664     3,634     3,568     8,280     11,848 
    Undistributed Earnings (Loss)          37             (1,541)
    Less: Earnings (Loss) Allocated to Participating Securities          -0-             8 
    Undistributed Earnings (Loss) allocated to Common                      
      Share Owners  11     26     37     (468)    (1,065)    (1,533)
    Net Income Available to Common Share Owners  $     981     $  2,690     $  3,671     $  3,100     $  7,215     $ 10,315 
 
    Average Basic Common Shares Outstanding		  10,681     26,645     37,326     11,298     25,738     37,036 
 
    Basic Earnings Per Share		  $   0.09     $   0.10         $   0.27     $   0.28     
Diluted Earnings Per Share:                
    Dividends Declared and Assumed Dividends on Dilutive Shares  $     986     $  2,664     $  3,650     $  3,647     $  8,281     $ 11,928 
    Less: Unvested Participating Dividends  (9)    -0-     (9)    (59)    -0-     (59)
    Dividends and Assumed Dividends to Common Share Owners  977     2,664     3,641     3,588     8,281     11,869 
    Undistributed Earnings (Loss)          30             (1,562)
    Less: Earnings (Loss) Allocated to Participating Securities          -0-             8 
    Undistributed Earnings (Loss) allocated to Common                      
      Share Owners  9     21     30     (479)    (1,075)    (1,554)
    Net Income Available to Common Share Owners  $     986     $  2,685     $  3,671     $  3,109     $  7,206     $ 10,315 
 
    Average Diluted Common Shares Outstanding		  10,847     26,680     37,527     11,516     25,846     37,362 
 
    Diluted Earnings Per Share		  $   0.09     $   0.10         $   0.27     $   0.28     
Reconciliation of Basic and Diluted EPS Calculations:                      
    Net Income Used for Basic EPS Calculation  $     981     $  2,690     $  3,671     $  3,100     $  7,215     $ 10,315 
    Assumed Dividends Payable on Dilutive Shares:                    
        Performance shares  7     -0-     7     20     1     21 
    Increase (Reduction) of Undistributed Earnings (Loss) -                       
      allocated based on Class A and Class B shares  (2)    (5)    (7)    (11)    (10)    (21)
    Net Income Used for Diluted EPS Calculation  $     986     $  2,685     $  3,671     $  3,109     $  7,206     $ 10,315 
 
    Average Shares Outstanding for Basic
      EPS Calculation		  10,681     26,645     37,326     11,298     25,738     37,036 
    Dilutive Effect of Average Outstanding:                      
        Performance shares  79     2     81     63     3     66 
        Restricted share units  87     33     120     155     105     260 
    Average Shares Outstanding for Diluted
      EPS Calculation		  10,847     26,680     37,527     11,516     25,846     37,362 
Included in dividends declared for the basic and diluted earnings per share computation are dividends computed and accrued on unvested Class A and Class B restricted share units, which will be paid by a conversion to the equivalent value of common shares after a vesting period.  Restricted share units held by retirement-age participants have a nonforfeitable right to dividends and are deducted from the above dividends and undistributed earnings (loss) figures allocable to common Share Owners. Previously reported earnings per share calculations for the six months ended December 31, 2008 have been recast as a result of FASB guidance on determining whether instruments granted in share-based payment transactions are participating securities. See Note 1 - Summary of Significant Accounting Policies of Notes to Condensed Consolidated Financial Statements for further discussion.
All of the 721,000 and 759,000 average outstanding stock options were antidilutive and were excluded from the dilutive calculations for the six months ended December 31, 2009 and 2008, respectively.