Note 9. Investments

3 Months Ended

Sep. 30, 2013

Investments [Abstract]

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

Investments

Non-marketable Equity Securities:

Kimball currently holds non-marketable equity securities of a privately-held company. The equity securities were valued at $0.1 million at both September 30, 2013 and June 30, 2013, and are included in the Other Assets line of the Condensed Consolidated Balance Sheets. See Note 7 - Fair Value of Notes to Condensed Consolidated Financial Statements for more information on the valuation of these securities. The investment does not rise to the level of a material variable interest or a controlling interest in the privately-held company which would require consolidation.

Supplemental Employee Retirement Plan Investments:

Kimball maintains a self-directed supplemental employee retirement plan (SERP) for executive employees. The SERP utilizes a rabbi trust, and therefore assets in the SERP portfolio are subject to creditor claims in the event of bankruptcy. Kimball recognizes SERP investment assets on the balance sheet at current fair value. A SERP liability of the same amount is recorded on the balance sheet representing an obligation to distribute SERP funds to participants. The SERP investment assets are classified as trading, and accordingly, realized and unrealized gains and losses are recognized in income in the Other Income (Expense) category. Adjustments made to revalue the SERP liability are also recognized in income as selling and administrative expenses and exactly offset valuation adjustments on SERP investment assets. The change in net unrealized holding gains for the three months ended September 30, 2013 and 2012 was, in thousands, $925, and $635, respectively. SERP asset and liability balances were as follows:

(Amounts in Thousands)	September 30, 2013		June 30, 2013
SERP investment - current asset	$	7,744	$	7,031
SERP investment - other long-term asset	12,678		12,569
Total SERP investment	$	20,422	$	19,600
SERP obligation - current liability	$	7,744	$	7,031
SERP obligation - other long-term liability	12,678		12,569
Total SERP obligation	$	20,422	$	19,600