Note 9. Investments

9 Months Ended

Mar. 31, 2014

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 March 31, 2014 and June 30, 2013, and are included in the Other Assets line of the Condensed Consolidated Balance Sheets. During the three and nine months ended March 31, 2013, we recorded $0.2 million and $0.9 million, respectively, of impairment on the equity securities as a result of certain events and changes in circumstances that had a significant adverse effect on the fair value of this investment. 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) 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. 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 offset valuation adjustments on SERP investment assets. The change in net unrealized holding gains for the nine months ended March 31, 2014 and 2013 was, in thousands, $59 and $1,326, respectively.

SERP asset and liability balances were as follows:

(Amounts in Thousands)	March 31, 2014		June 30, 2013
SERP investments - current asset	$	8,423	$	7,031
SERP investments - other long-term asset	13,712		12,569
Total SERP investments	$	22,135	$	19,600
SERP obligation - current liability	$	8,423	$	7,031
SERP obligation - other long-term liability	13,712		12,569
Total SERP obligation	$	22,135	$	19,600