Fair Value (Tables)

12 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The recurring Level 3 fair value measurements of the contingent earn-out liability include the following significant unobservable inputs:

Contingent Consideration Liability	Fair Value			Valuation Technique	Unobservable Inputs	Range	Selected
Revenue and EBITDA Based Payments	$	3.2	million	Discounted Cash Flow	Revenue Discount Rate	4.5% to 6.5%	5.8	%
					EBITDA Volatility	25.0% to 42.5%	42.5	%
					Revenue Volatility	6.5% to 10.5%	10.5	%

Fair Value Measurement Inputs and Valuation Techniques

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

Financial Instrument	Level	Valuation Technique/Inputs Used
Cash Equivalents: Money market funds	1	Market - Quoted market prices.
Trading securities: Mutual funds held in nonqualified SERP	1	Market - Quoted market prices.
Derivative Assets: Stock warrants	3	Market - The pricing of recent purchases or sales of the investment in the privately-held company 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.
Derivative Assets: Interest Rate Swap	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 International’s non-performance risk.
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.

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

As of June 30, 2022 and June 30, 2021, the fair values of financial assets and liabilities that are measured at fair value on a recurring basis using the market or income approach are categorized as follows:

(Amounts in Thousands)	June 30, 2022
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents: Money market funds	$	5,508	$	—	$	—	$	5,508
Derivatives: Interest rate swap	—		1,986		—		1,986
Trading Securities: Mutual funds in nonqualified SERP	10,517		—		—		10,517
Derivatives: Stock warrants	—		—		1,500		1,500
Total assets at fair value	$	16,025	$	1,986	$	1,500	$	19,511
Liabilities
Contingent earn-out liability	—		—		3,160		3,160
Total liabilities at fair value	$	—	$	—	$	3,160	$	3,160
(Amounts in Thousands)	June 30, 2021
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents: Money market funds	$	18,762	$	—	$	—	$	18,762
Trading Securities: Mutual funds in nonqualified SERP	14,049		—		—		14,049
Derivatives: Stock warrants	—		—		1,500		1,500
Total assets at fair value	$	32,811	$	—	$	1,500	$	34,311
Liabilities
Contingent earn-out liability	—		—		20,190		20,190
Total liabilities at fair value	$	—	$	—	$	20,190	$	20,190

Non-recurring Fair Value Adjustment Technique

Non-recurring Fair Value Adjustment	Level	Valuation Technique/Inputs Used
Impairment of Right of Use Lease Assets and Related Assets 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.
Impairment of Customer Relationship Intangible	3	Income - Based on a valuation model that determines fair value based on estimated discounted future cash flows, requiring the use of significant estimates and assumptions, including revenue growth rates and EBITA margins and future market conditions.
Impairment of Goodwill	3	Income - Based on a valuation model that determines fair value based on estimated discounted future cash flows of each reporting unit, requiring the use of significant estimates and assumptions, including revenue growth rates and EBITDA margins, future market conditions and discount rates that capture the risk associated with future cash flows.

Fair Value of Financial Instruments Not Carried at Fair Value

Financial instruments that are not reflected in the 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 the customer’s non-performance risk.
Equity securities without readily determinable fair value	3	Costs 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.