v3.26.1
Note 14. Fair Value
 12 Months Ended
Jun. 30, 2026
Fair Value [Abstract]  
Fair Value Disclosures Fair Value
The Company categorizes assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas level 3 generally requires significant management judgment. The three levels are defined as follows:
•Level 1:  Unadjusted quoted prices in active markets for identical assets and liabilities.
•Level 2:  Observable inputs other than those included in level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
•Level 3:  Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.
There were no changes in the inputs or valuation techniques used to measure fair values during fiscal year 2026.
Financial Instruments Recognized at Fair Value:
The following methods and assumptions were used to measure fair value:
Financial InstrumentLevelValuation Technique/Inputs Used
Derivative Assets: Foreign exchange contracts2Market - 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 in SERP1Market - Quoted market prices
Derivative Liabilities: Foreign exchange contracts2Market - 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
Recurring Fair Value Measurements:
As of June 30, 2026 and 2025, 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:
June 30, 2026
(Amounts in Thousands)Level 1Level 2Total
Assets
Derivatives: foreign exchange contracts$— $1,024 $1,024 
Trading securities: mutual funds held in nonqualified SERP4,388 — 4,388 
Total assets at fair value$4,388 $1,024 $5,412 
Liabilities
Derivatives: foreign exchange contracts$— $330 $330 
Total liabilities at fair value$— $330 $330 
June 30, 2025
(Amounts in Thousands)Level 1Level 2Total
Assets
Derivatives: foreign exchange contracts$— $3,017 $3,017 
Trading securities: mutual funds held in nonqualified SERP4,114 — 4,114 
Total assets at fair value$4,114 $3,017 $7,131 
Liabilities
Derivatives: foreign exchange contracts$— $1,910 $1,910 
Total liabilities at fair value$— $1,910 $1,910 
We had no level 3 assets or liabilities as of June 30, 2026 and 2025, or any activity in level 3 assets or liabilities during fiscal years 2026, 2025, and 2024.
The nonqualified supplemental employee retirement plan (“SERP”) assets consist primarily of equity funds, balanced funds, bond funds, and a money market fund. The SERP investment assets are offset by a SERP liability which represents the Company’s obligation to distribute SERP funds to participants. See Note 10 - Employee Benefit Plans for further information regarding the SERP.
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 InstrumentLevelValuation Technique/Inputs Used
Notes receivable2Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account non-performance risk
Borrowings under credit facilities2Market - Based on observable market rates, taking into account Kimball Electronics’ non-performance risk
The carrying values of our cash deposit accounts, trade accounts receivable, and trade accounts payable approximate fair value due to their relatively short maturity and immaterial non-performance risk.