ࡱ> OPQRSTUV l \pThe Free Software Foundation B=PF0*8X@"1 Helvetica1Courier1 Courier New1 Courier New1 Helvetica$#,##0_);($#,##0)$#,##0_);[Red]($#,##0)$#,##0.00_);($#,##0.00)$#,##0.00_);[Red]($#,##0.00)-**_($* #,##0_);_($* (#,##0);_($* "-"_);_(@_)*)'_(* #,##0_);_(* (#,##0);_(* "-"_);_(@_)5,2_($* #,##0.00_);_($* (#,##0.00);_($* "-"??_);_(@_)2+/_(* #,##0.00_);_(* (#,##0.00);_(* "-"??_);_(@_)2$#,##0.00;[Red]$#,##0.003$#,##0.00;[Red]($#,##0.00)4$#,##0;[Red]($#,##00)50.00%;[Red](0.00%)6 0%;[Red](0%)7#,##0.00;[Red](#,##0.00)8#,##0;[Red](#,##0)                + ) , *   Ј ~~ ؈ ~~#؈ ~~ ؈ ~~8#܈ ~~9#܈ ~~4#܈ ~~3#܈ ~~7#܈ ~~83ffff̙̙3f3fff3f3f33333f33FORM 10K" FORM 10K (1)2 SIGNATURESL Customers^ Customers (1)nResearch and Development&}Executive Officers of the Regisz Market Prices&"Issuer Purchases of Equity SecuPerformance Graph%Item 6 Selected Financial DataUBusiness Overview&oResults of Operations Fiscal Ye&QResults of Operations Fisca (1)&%Results of Operations Fisca (2)&5Results of Operations Fisca (3)&GResults of Operations Fisca (4)& ZResults of Operations Fisca (5)&#rResults of Operations Fisca (6)&Results of Operations Fisca (7)&Results of Operations Fisca (8)&UResults of Operations Fisca (9)&Liquidity and Capital Resources Cash Flows3Contractual Obligations&?Item 8 Financial Statements and" CONSOLIDATED BALANCE SHEETS&`.CONSOLIDATED STATEMENTS OF INCO&KCONSOLIDATED STATEMENTS OF COMP&nCONSOLIDATED STATEMENTS OF CASH&yCONSOLIDATED STATEMENTS OF SHAR&Goodwill and Other Intangible A$Concentrations of Credit RiskNote 3 Inventories$Note 4 Property and Equipment$N Note 4 Property and Equip (1)Product Warranties+Note 6 Credit Facilities?Severance PlansRSeverance Plans (1)dSeverance Plans (2)IwPerformance SharesNote 9 Income Taxes!Note 9 Income Taxes (1)ޱNote 9 Income Taxes (2)WNote 9 Income Taxes (3)Note 9 Income Taxes (4)&Financial Instruments Recognize&Recurring Fair Value Measuremen&%Recurring Fair Value Measur (1)& :Financial Instruments Not Carri!KForeign Exchange Contracts%cForeign Exchange Contracts (1)%puForeign Exchange Contracts (2)&CSupplemental Employee RetiremenNote 14 Accrued Expenses%ӴNote 15 Geographic Information!Note 16 Earnings Per Share&,Note 17 Accumulated Other Compr&Note 17 Accumulated Other C (1)&Note 18 Quarterly Financial Inf&;0Item 15 Exhibits Financial Stat @J     l  c1  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } } $ } 1      !Kimball Electronics, Inc. 10-K 08/28/2018 FORM 10-K   1 )Securities registered pursuant to Section 12(b) of the Act: Title of each Class 1 )Name of each exchange on which registered" Common Stock, no par value # The NASDAQ Stock Market LLC1)Securities registered pursuant to Section12(g) of the Act: None$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.o|pd@ 5=PF0*8X> @:   l  =D-L  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } y } :} y =     !Kimball Electronics, Inc. 10-K 08/28/2018 SIGNATURES     Page No.   PART I Item 1.Business~ Item 1A. Risk Factors~ "Item 1B.!Unresolved Staff Comments~ JItem 2. Properties~ JItem 3.Legal Proceedings~ JItem 4.Mine Safety Disclosures~ J,$Executive Officers of the Registrant~ NPART IIItem 5..&Market for Registrant?s Common Equity,~ R.&Related Share Owner Matters and Issuer&Purchases of Equity SecuritiesItem 6.Selected Financial Data~ ZItem 7.,$Management?s Discussion and Analysis~ ^80of Financial Condition and Results of OperationsItem 7A.0(Quantitative and Qualitative Disclosures~ About Market RiskDl{oc?z3z<0Jm !"#$%&'()*+,-./0123456789:;< Item 8.. &Financial Statements and Supplementary~ ! !Data"Item 9.5"-Changes in and Disagreements With Accountants~ "#.#&on Accounting and Financial Disclosure$Item 9A.$Controls and Procedures~ $%Item 9B.%Other Information~ %&'PART III()Item 10.3)+Directors, Executive Officers and Corporate~ )** Governance+Item 11.+Executive Compensation~ +,Item 12.0,(Security Ownership of Certain Beneficial~ ,-/-'Owners and Management and Related Share.. Owner Matters/Item 13.7//Certain Relationships and Related Transactions,~ /"0!0and Director Independence1Item 14..1&Principal Accounting Fees and Services~ 1"23PART IV45Item 15./5'Exhibits, Financial Statement Schedules~ 5&6Item 16.6Form 10-K Summary~ 6&7 SIGNATURES~ 7289$:____________________________1;)Created by Morningstar Document Research.0<(http://documentresearch.morningstar.com/>07uiUI4sBn/ =PF0*8X> @J <<;;::7733''  l  n]  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } m}  } $ }  } $ }       !Kimball Electronics, Inc. 10-K 08/28/2018 Customers        Year Ended June 30 ~  ~  ~   Automotive 44%  41%  39% Medical 29%  28%  30% Industrial 20% 22% 22% Public Safety 6% 7% 7% Other 1% 2% 2% Total 100% 100% 100%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2|pdI;wO=PF0*8X> @"  l   n  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES CustomersResearch and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } m)}  } $ }  } $ }       !Kimball Electronics, Inc. 10-K 08/28/2018 Customers        Year Ended June 30 ~  ~  ~  ZF 15%  12%  11% Philips 13%  14%  15%Nexteer Automotive 13% 12% **"* amount is less than 10% of total$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0{|pdQP=PF0*8X> @"  l  }  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $}  } $ }  } $ }       !Kimball Electronics, Inc. 10-K 08/28/2018 Research and Development        Year Ended June 30 (Amounts in Millions)~  ~  ~ & Research and Development Costs~ . ~ * ~ & $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(TymaU =PF0*8X> @"  l  ے  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } I"} $ } } $ } $4      !Kimball Electronics, Inc. 10-K 08/28/2018,$Executive Officers of the Registrant      Name  Age ) !Office and Area of Responsibility Donald D. Charron ~  1 )Chairman of the Board and Chief Executive     Officer Michael K. Sergesketter ~  / 'Vice President, Chief Financial Officer John H. Kahle~ .&Vice President, General Counsel, Chief)!Compliance Officer, and SecretaryChristopher J. Thyen~ %Vice President, New PlatformsJessica L. DeLorenzo~ 'Vice President, Human ResourcesSandy A. Smith~ .&Vice President, Information TechnologyJanusz F. Kasprzyk~ +#Vice President, European OperationsSteven T. Korn~ 1)Vice President, North American Operations$Roger Chang (Chang Shang Yu)~ ( Vice President, Asian OperationsDesiree L. Castillejos~ -%Vice President, Corporate Development+#and M&A, and Chief Strategy OfficerKathy R. Thomson~ 3+Vice President, Global Business Developmentand Design Services$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/B XymaUI 1r5RjwPD8=PF0*8X> @ l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } } $      !Kimball Electronics, Inc. 10-K 08/28/2018 Market Prices                 ~  ~   High  Low  High  Low  First Quarter  6@   (\u1@   (\,@   Gz'@  Second Quarter 33333s6@   p= #2@  ~ N   (\*@  Third Quarter333333@/@ 33333s2@   .@Fourth Quarter333333@/@ fffff2@   /@$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.!xl`lI, =PF0*8X> @                l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market PricesPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $}  '} $ } 0} $                       !Kimball Electronics, Inc. 10-K 08/28/2018-%Issuer Purchases of Equity Securities          Period(  Total Number of Shares Purchased$ Average Price Paid per Share0 (Total Number of Shares Purchased as Part/ 'Maximum Dollar Value of Shares that May     " of Publicly Announced Plan' Yet Be Purchased Under the Plan& April 1, 2018 - April 30, 2018 - $-  -~ o " May 1, 2018 - May 31, 2018~ F/ \(2@ ~ F/~ 4 $June 1, 2018 - June 30, 2018~ *fffff&3@~ *~  Total~ n {G2@~ n $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.xl`TH }=PF0*8X> @j         l  [  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity Secu Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } } $      !Kimball Electronics, Inc. 10-K 08/28/2018Performance Graph                   11/03/2014  06/30/2015  06/30/2016  06/30/2017  06/30/2018! Kimball Electronics, Inc.~   (\Bi@  Gze@ ~   Qo@ " NASDAQ Stock Market (U.S.)~   Q[@  p= ףZ@  Qa@  ףp= e@  Peer Group Index~   (\X@  ףp= WY@  ףp= /b@  p= k`@ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hth\"o =PF0*8X> @                 l  X  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance GraphBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } :} $      !Kimball Electronics, Inc. 10-K 08/28/2018( Item 6 - Selected Financial Data                      Year Ended June 308 0 (Amounts in Thousands, Except for Per Share~  ~  ~  ~ ~ ~ z Data)/ 'Consolidated Statements of Income Data:         Net Sales~ nA~ 8~  2e3  ~  Z2~ jB-Net Income (1)~ ~ ~  >\  ~  v~ Earnings Per Share: (2)     Basic)\(?? p= ף?   ?zG?Dilutedףp= ?ףp= ? RQ?   {Gz?zG?    As of June 30# (Amounts in Thousands)~ ~ ~   ~  ~~ z( Consolidated Balance Sheet Data:    Total Assets~ '%~ !~  )  ~  ~~ j/'Long-Term Debt, Less Current Maturities $- $-  $-    $- $-$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@ D}qeYM]3pJoJKfZN&=PF0*8X> @z/                     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial Data!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $} $ } $} $} $ } $} $} $ } $} $                               !Kimball Electronics, Inc. 10-K 08/28/2018Business Overview             Year End Customer Service Years ~  ~  ~  More than 10 Years       % of Net Sales ~  % ~  % ~  %# of Customers~ r~ r~ f  5 to 10 Years% of Net Sales~ r %~  %~   %# of Customers~ J~ Z~ v Less than 5 Years% of Net Sales~ . %~ " %~   %# of Customers~ z~ ~   Total% of Net Sales~  %~  %~   % # of Customers~ 2~ J~ Z $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/> 0th\HSfKWrVJ>=PF0*8X> @:       l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 2} $ } U} $}  $ } U} $} $ } $} $      !Kimball Electronics, Inc. 10-K 08/28/2018OGResults of Operations - Fiscal Year 2018 Compared with Fiscal Year 2017                   At or For the Year Ended    June 30  2 *(Amounts in Millions, Except for Per Share~   as a % of Net Sales ~   as a % of Net Sales  % Change Data) Net Salesfffff@33333@   ~ > % Gross ProfiťU@~ " %fffffR@   333333 @  %~ : %+#Selling and Administrative Expenses33333E@~  %@B@   333333@  %~ R %Other General Income $-~    Operating Incomefffff&E@~  %̌E@   ffffff@  %~  %"Provision for Income Taxes~ r333333$@   ~  % Net Income0@A@   ~ 6 %"Diluted Earnings per Shareףp= ?ףp= ?    Open OrdersQr@j@   ~  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/< VJ>2&ZBiy3~=PF0*8X> @               l  $  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } I"} $ } $} $                          !Kimball Electronics, Inc. 10-K 08/28/2018OGResults of Operations - Fiscal Year 2018 Compared with Fiscal Year 2017           $ Net Sales by Vertical Market For the Year Ended    June 30   (Amounts in Millions)~  ~   % Change  Automotive T}@   33333w@  ~ b %Medical̔s@p@~  Z  % Industrial~ f33333i@~    % Public SafetyfffffN@fffffQ@~    % Otherffffff&@~ R~  R  %Total Net Salesfffff@33333@~  >  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4VJ>2&D vN=PF0*8X> @          l  w4  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } a}  } $ }       !Kimball Electronics, Inc. 10-K 08/28/2018OGResults of Operations - Fiscal Year 2018 Compared with Fiscal Year 2017      Year Ended June 30 ~  ~  ZF 15%  12% Philips 13%  14%Nexteer Automotive 13% 12%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,^|VJ>2&`#=PF0*8X> @"  l  F  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 0} $      !Kimball Electronics, Inc. 10-K 08/28/2018OGResults of Operations - Fiscal Year 2018 Compared with Fiscal Year 2017         Other Income (Expense)  Year Ended  June 30 (Amounts in Thousands)~  ~  Interest Income~ &  ~  Interest Expense~ ~ /'Foreign Currency/Derivative Gain (Loss)~ $~ 0(Gain on Supplemental Employee Retirement~ " ~ Plan Investment,$Bargain Purchase Gain on Acquisition -~ v Other~ ~ #Other Income (Expense), net~ %~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8lVJ>2&o%nlE9-=PF0*8X> @       l  7Y  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $} $ }  } $}  $ } } $      !Kimball Electronics, Inc. 10-K 08/28/2018OGResults of Operations - Fiscal Year 2018 Compared with Fiscal Year 2017                Year Ended June 30, 2018  Year Ended June 30, 2017 (Amounts in Thousands) Income Before Taxes  Effective Tax Rate  Income Before Taxes  Effective Tax Rate  United States~ W   33333t@ % ~    9@ % Foreign~ c   ffffff8@ % ~ r   fffff5@ % Total~ LO@ %~ ~   6@  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,|VJ>2&~^_SG=PF0*8X> @z             l  p  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 2} $ } U} $}  $ } U} $} $ } $} $      !Kimball Electronics, Inc. 10-K 08/28/2018OGResults of Operations - Fiscal Year 2017 Compared with Fiscal Year 2016                   At or For the Year Ended    June 30  2 *(Amounts in Millions, Except for Per Share~   as a % of Net Sales ~   as a % of Net Sales  % Change Data) Net Sales33333@P@   ~ . % Gross ProfitfffffR@333333 @ % P@   @  %~ F %+#Selling and Administrative Expenses@B@333333@ %ffffffA@   @  %~  %Other General Income~  $-   Operating IncoměE@ffffff@ %33333=@    @  %~  % Net IncomeA@L6@   ~  %"Diluted Earnings per Shareףp= ?RQ?    Open Ordersj@~    ~ f %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/: VJ>2&ZBeq3}=PF0*8X> @              l  |  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } I"} $ } $} $                          !Kimball Electronics, Inc. 10-K 08/28/2018OGResults of Operations - Fiscal Year 2017 Compared with Fiscal Year 2016           $ Net Sales by Vertical Market For the Year Ended    June 30   (Amounts in Millions)~  ~   % Change  Automotive 33333w@   33333kt@  ~ B %Medicalp@fffff&o@~    % Industrial33333i@33333Sg@~  *  % Public SafetyfffffQ@̌N@~  >  % Other~ R2@~  "  %Total Net Sales33333@P@~  .  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4VJ>2&D ~rJ=PF0*8X> @          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } m)}  } $ }       !Kimball Electronics, Inc. 10-K 08/28/2018OGResults of Operations - Fiscal Year 2017 Compared with Fiscal Year 2016      Year Ended June 30 ~  ~  Philips 14%  15% ZF 12%  11%Nexteer Automotive 12% **"* amount is less than 10% of total$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0VJ>2&[#[OC=PF0*8X> @"  l  0  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 8} $      !Kimball Electronics, Inc. 10-K 08/28/2018OGResults of Operations - Fiscal Year 2017 Compared with Fiscal Year 2016         Other Income (Expense)  Year Ended  June 30 (Amounts in Thousands)~  ~  Interest Income~   ~ > Interest Expense~ ~ ( Foreign Currency/Derivative Loss~ ~ 7/Gain (Loss) on Supplemental Employee Retirement~ ~ Plan Investment,$Bargain Purchase Gain on Acquisition~ v - Other~ ~ #Other Income (Expense), net~ ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8lVJ>2&o%nlE9-=PF0*8X> @       l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $} $ }  } $}  $ } } $      !Kimball Electronics, Inc. 10-K 08/28/2018OGResults of Operations - Fiscal Year 2017 Compared with Fiscal Year 2016                Year Ended June 30, 2017  Year Ended June 30, 2016 (Amounts in Thousands) Income Before Taxes  Effective Tax Rate  Income Before Taxes  Effective Tax Rate  United States~    9@ % ~    1@ % Foreign~ r   fffff5@ % ~ &   4@ % Total~ ~6@ %~ "   L4@  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,|VJ>2&~^_SG=PF0*8X> @z             l  :  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9) Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } } $ } m} $ } } $ } 0} $ } a} $ } m                       !Kimball Electronics, Inc. 10-K 08/28/2018'Liquidity and Capital Resources              Three Months Ended    June 30, 2018  March 31, 2018  December 31, 2017  September 30, 2017   June 30, 2017 DSO ~  ~  ~  ~  ~  PDSOH ~ " ~   ~   ~  ~  APD~  ~ ~ ~  ~   CCD~ ~ ~ ~  ~  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.~rfZN4sg?=PF0*8X> @"    l  B  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital ResourcesContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 1}  $                      !Kimball Electronics, Inc. 10-K 08/28/2018 Cash Flows                Year Ended June 30 (Amounts in Millions) ~  ~  ~ 1 )Net cash provided by operating activities  D@   ffffffG@   ffffffB@ . &Net cash used for investing activities  333333:   A   LE .&Net cash used for financing activities333333)~   333333 $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,&|{oc"o=PF0*8X> @           l  ~  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash Flows!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } -} $      !Kimball Electronics, Inc. 10-K 08/28/2018Contractual Obligations                        / 'Payments Due During Fiscal Years Ending  June 30 (Amounts in Millions) Total ~    2020-2021   2022-2023   Thereafter- %Recorded Contractual Obligations: (a)                 &Long-Term Debt Obligations (b) @ @   $-   $- $-*"Long-Term Income Taxes Payable (c)*@~   @  @ffffff @-%Other Long-Term Liabilities Reflected~ 6?  ffffff@  333333?333333 @on the BalanceSheet (d) (e) (f)+#Unrecorded Contractual Obligations:    Operating Leases (f)?333333?  ?  ?333333? Purchase Obligations (g)H@~@  L8@  333333? - Total33333k@33333@  =@  @fffff0@$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/< znbVB47/=PF0*8X> @B(             l  ,c V   dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual ObligationsCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $4} y ,     !Kimball Electronics, Inc. 10-K 08/28/2018<4Item 8 - Financial Statements and Supplementary Data  3 + INDEX TO CONSOLIDATED FINANCIAL STATEMENTS   Page No.  / 'Management?s Report on Internal Control~  Over Financial Reporting/'Report of Independent Registered Public~ Accounting Firm.&Consolidated Balance Sheets as of June~ 30, 2018 and 2017-%Consolidated Statements of Income for~ 3+Each of the Three Years in the Period Ended June 30, 20180(Consolidated Statements of Comprehensive~ 1)Income for Each of the Three Years in the"Period Ended June 30, 20181)Consolidated Statements of Cash Flows for~ 3+Each of the Three Years in the Period EndedDli]QE9!eA5pd%R, !"#$%&'()*+  June 30, 2018!0"(Consolidated Statements of Share Owners?~ "1#)Equity for Each of the Three Years in the"$Period Ended June 30, 2018%2&*Notes to Consolidated Financial Statements~ &'($)____________________________1*)Created by Morningstar Document Research.0+(http://documentresearch.morningstar.com/d>2=PF0*8X> @++**)) l  :!,  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements and!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } I;} $ :     !Kimball Electronics, Inc. 10-K 08/28/2018#CONSOLIDATED BALANCE SHEETS          June 30,  June 30, ~  ~  ASSETS    Current Assets:   !Cash and cash equivalents~ r~ ..&Receivables, net of allowances of $482~ ޗ ~ \ and $284, respectively Inventories~ M ~ z1)Prepaid expenses and other current assets~ ~ Total current assets~ ~ 2*Property and Equipment, net of accumulated~ _~ 6e.&depreciation of $198,672 and $180,028, respectivelyGoodwill~ `~ `3+Other Intangible Assets, net of accumulated~ ^D~ G91amortization of $27,276 and $26,392, respectively Other Assets~ v~ j  Total Assets~ '%~ !,$LIABILITIES AND SHARE OWNERS? EQUITYCurrent Liabilities:*"Borrowings under credit facilities~ F~ BDz lvj^R~H 2Dn<$Yl< !"#$%&'()*+,-./0123456789 Accounts payable~ 2v   ~ o  !Accrued expenses~ !!!~ !!!"Total current liabilities~ "n ""~ "F) "#Other Liabilities:#####&$Long-term income taxes payable~ $&$$ $-$#%Other long-term liabilities~ %.%%~ %%&Total other liabilities~ &R&&~ &&'Share Owners? Equity:'''''$(Preferred stock-no par value(((((%)Shares authorized: 15,000,000 )-)) )-)*Shares issued: none!+Common stock-no par value+++&,Shares authorized: 150,000,000 ,-,, ,-,!-Shares issued: 29,430,000".Additional paid-in capital~ .^..~ .Nv./Retained earnings~ ///~ / /,0$Accumulated other comprehensive loss~ 0600~ 0r0 1Treasury stock, at cost:11152-Shares: 2,898,000 and 2,592,000, respectively~ 2|22~ 22"3Total Share Owners? Equity~ 333~ 3324*Total Liabilities and Share Owners? Equity~ 4'%44~ 4!456$7____________________________18)Created by Morningstar Document Research.09(http://documentresearch.morningstar.com/8H H V.^9vEi]Q)=PF0*8X> @99988774444333322220000////....,,,,))))&&&&%%%%$$$$""""!!!!       l  (FI  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } -}  $ (                                 !Kimball Electronics, Inc. 10-K 08/28/2018)!CONSOLIDATED STATEMENTS OF INCOME              Year Ended June 30 ~  ~  ~   Net Sales~ nA  ~ 8  ~ 2e3   Cost of Sales~ ,<  ~ ^44  ~ t/  Gross Profit~ B~ .~  j +#Selling and Administrative Expenses~ :~ :~    Other General Income -~ n  - Operating Income~ ~ Ơ~  j Other Income (Expense):  Interest income~ &~ ~  > Interest expense~ ~ ~   Non-operating income~ &4~ >$~   Non-operating expense~ ~ ~  & #Other income (expense), net~ %~ ~   %Income Before Taxes on Income~ ~ ~~  " "Provision for Income Taxes~ ޵~ r~  X  Net Income~ ~ ~  >\  +#Earnings Per Share of Common Stock:  Basic)\(?? p= ף? Dilutedףp= ?ףp= ? RQ?  D l|pdXLDJ71-%z2D ! " # $ % & ' - %Average Number of Shares Outstanding:      !Basic~ !!!~ !V!!~ ! ! "Diluted~ """~ "*""~ " " #$$%____________________________1&)Created by Morningstar Document Research.0'(http://documentresearch.morningstar.com/c=PF0*8X> @='' && %% """""" !!!!!!                      l  k  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 1} #$ $$$$$$$$$$ $ $ $ $ $$$$$$$$$$$$$$$!Kimball Electronics, Inc. 10-K 08/28/20187/CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME                                  ! " #  Year Ended June 30, 2018  Year Ended June 30, 2017  Year Ended June 30, 2016  Pre-tax  Tax   Net of Tax  Pre-tax  Tax   Net of Tax  Pre-tax  Tax  ! Net of Tax  Net Income    ~       ~       ~ !>\ #* "Other Comprehensive Income (Loss):                 !0(Foreign currency translation adjustments~ ^' $-~  ^'  ~  f+ $-~ f+~  $- ~ !#1)Postemployment severance actuarial change~ V~ ~  f  ~  v~ V~ ~ ~  ~ !#Derivative gain (loss)~ N~  ~  N  ~  . ~ ~ .~ .~  ~ !#,$Reclassification to (earnings) loss:    ! Derivatives~ ~ ~    ~  ~ ~~ J~ F7~ ~ ~ !$#+#Amortization of prior service costs - -  -    - - -~ r~  ~ !J#( Amortization of actuarial change~ j~ 2~    ~  ~ ~ ~  ~  ~ !#)!Other Comprehensive Income (Loss)~ v~ ~  b!  ~  6~ ~ 0~ f~  ~ !#"Total Comprehensive Income~  "'   ~ F ~ !"]#$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<nbVJ>f{5ZNB=PF0*8X> @T### !"  !"  !"  !"  !"  !"  !"  !"  !"        !#   # l  =  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } I;}  $ =                                 !Kimball Electronics, Inc. 10-K 08/28/2018-%CONSOLIDATED STATEMENTS OF CASH FLOWS              Year Ended June 30 ~  ~  ~ - %Cash Flows From Operating Activities:       Net income~   ~   ~ >\ .&Adjustments to reconcile net income to  2*net cash provided by operating activities:%Depreciation and amortization~ "~ u~  v6 Gain on sales of assets~ ~ ~~   .&Deferred income tax and other deferred~ ~ 6~   charges( Deferred tax valuation allowance~   -  -  Stock-based compensation~ R~ r6~  :5 91Excess tax benefits from stock-based compensation - -~   Bargain purchase gain -~   -  Other, net~ ~ ~  & 3+Change in operating assets and liabilities:  Receivables~ ~ ~  bp  Inventories~ ~ nz~   1)Prepaid expenses and other current assets~ O~ ~   Accounts payable~ ~ :~  : *"Accrued expenses and taxes payable~ ޫ~ >~   1)Net cash provided by operating activities~ "t~ ~  ? D)lxl`TH@Ww<  ! " # $ % & ' ( ) * + , - . / 0 1 2 3 4 5 6 7 8 9 : ; < - %Cash Flows From Investing Activities:        !Capital expenditures~ !k!!~ !j!!~ ! ! %"Proceeds from sales of assets~ """~ """~ " F" .#&Payments for acquisitions, net of cash #-##~ ###~ # ~# $acquired)%!Purchases of capitalized software~ %%%~ %%%~ % % & Other, net~ &&&~ &N&&~ & & .'&Net cash used for investing activities~ 'jf''~ '''~ ' f' -(%Cash Flows From Financing Activities:((((((( ( ')Proceeds from credit facilities )-))~ )>))~ ) ) %*Payments on credit facilities *-**~ *4**~ * "* 1+)Net change in revolving credit facilities~ +++~ +B++ + -+ 9,1Excess tax benefits from stock-based compensation ,-,, ,-,,~ , ., #-Repurchases of common stock~ -j--~ -.--~ -  ;- /.'Payments related to tax withholding for~ .r..~ ...~ . .  /stock-based compensation.0&Net cash used for financing activities~ 0;00~ 000~ 0 Ҽ0 21*Effect of Exchange Rate Change on Cash and~ 111~ 1 11~ 1 1 2Cash Equivalents03(Net Increase (Decrease) in Cash and Cash~ 3F33~ 3`33~ 3 \3 4 Equivalents.5&Cash and Cash Equivalents at Beginning~ 5.55~ 5JW55~ 5 r5 6of Year07(Cash and Cash Equivalents at End of Year~ 7r77~ 7.77~ 7 JW7 89$:____________________________1;)Created by Morningstar Document Research.0<(http://documentresearch.morningstar.com/>_0oZwY<;(vN=PF0*8X> @:g<< ;; :: 777777 555555 333333 111111 000000 ...... ------ ,,,,,, ++++++ ****** )))))) '''''' &&&&&& %%%%%% ###### """""" !!!!!!                    l  3)  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } I;} #$ 3$$$$$$$$$$ $ $ $ $ $$$$$$$$$$$$$$$$$$$!Kimball Electronics, Inc. 10-K 08/28/20186.CONSOLIDATED STATEMENTS OF SHARE OWNERS EQUITY                     " Additional Paid-In Capital  Retained Earnings . &Accumulated Other Comprehensive Income  Treasury Stock " Total Share Owners? Equity          (Loss) Amounts at June 30, 2015~ 7                  ~ v  ~ @   $-  ~ ! #  Net income  ~ >\      ~ >\ "Other comprehensive income~     ~ ( Issuance of non-restricted stock~   ~  ~  (47,000 shares)-%Compensation expense related to stock~ -   ~ -compensation plans3+Performance share issuance (258,000 shares)~ .   ~ .91Repurchase of employee shares for tax withholding  ~  ~ (78,000 shares)"Repurchase of Common Stock  ~  Z2~ Z2(1,179,000 shares) Amounts at June 30, 2016~ 6h~ ~  A  ~  ,~ F Net income~    ~ "Other comprehensive income~  0   ~ 0( Issuance of non-restricted stock~   ~  ~ (10,000 shares)-%Compensation expense related to stock~ 2   ~ 2compensation plans3+Performance share issuance (136,000 shares)~   ~  z~ "DElocWK?O^J< gIj& $!$"$#$$$%$&$'$($)$*$+$,$-$.$/$0$1$2$" Repurchase of Common Stock      ~   ~  !(1,528,000 shares) "Amounts at June 30, 2017~ "Nv""~ " ""~ " r" " ~ " ""~ ""# Net income##~ #### # # #~ ##"$Other comprehensive income$$$$~ $ b!$ $ $ $~ $b!$%Tax Reform impact%%~ %>%%~ % % % % % %-%(& Issuance of non-restricted stock~ &&&&&& & ~ & j&&~ &n&'(8,000 shares)-(%Compensation expense related to stock~ (JP((((( ( ( (~ (JP()compensation plans3*+Performance share issuance (174,000 shares)~ ****** * ~ * **~ *r*"+Repurchase of Common Stock+++++ + ~ + l++~ +l+,(488,000 shares) -Amounts at June 30, 2018~ -^--~ ---~ - 6- - ~ - |--~ --./$0____________________________11)Created by Morningstar Document Research.02(http://documentresearch.morningstar.com/* hR4^`2@4(=PF0*8X> @ZK221100------ -- --++ ++**** **((((&&&& &&%%%% %%$$ $$####"""""" "" ""                  !"     l  4  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHARConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } U} $      !Kimball Electronics, Inc. 10-K 08/28/2018-%Goodwill and Other Intangible Assets:                           June 30, 2018   June 30, 2017 (Amounts in Thousands) Cost   Accumulated   Net Value  Cost   Accumulated   Net Value       Amortization           Amortization Capitalized Software~ R  ~   ~ C  ~   ~ :  ~ F Customer Relationships~ >~ ~    ~  >~ *~ Other Intangible Assets~ ~ 2~  ^D  ~  ~ b~ G$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/. xl`TH(08>C7+=PF0*8X> @                   l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible ANote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } m)}  } $ } 0} $ }  } $ } 0      !Kimball Electronics, Inc. 10-K 08/28/2018&Concentrations of Credit Risk:          At or For the Year Ended  At or For the Year Ended   June 30, 2018   June 30, 2017   Net Sales  Trade Receivables   Net Sales  Trade Receivables ZF 15%  17%  12%  17%Philips 13% * 14% *Nexteer Automotive 13% 16% 12% 13% Regal Beloit Corporation * 11% * 11%*"* amount is less than 10% of total$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4sg[OECVv=PF0*8X> @:     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $} $      !Kimball Electronics, Inc. 10-K 08/28/2018Note 3 Inventories         (Amounts in Thousands)~  ~  Finished products~ B  ~ '  Work-in-process~    ~    Raw materials~    ~   Total inventory~ M ~ z$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,|sg[TE9-=PF0*8X> @j          l  ?   dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $} $      !Kimball Electronics, Inc. 10-K 08/28/2018%Note 4 Property and Equipment         (Amounts in Thousands)~  ~  Land~ F  ~ Α " Buildings and improvements~ f[  ~   Machinery and equipment~   ~    Construction-in-progress~ s~ r Total~ *~ &b&Less: Accumulated depreciation~ ~ #Property and equipment, net~ _~ 6e$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2nth\PV)n=PF0*8X> @         l  W  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentProduct WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } } 0.      !Kimball Electronics, Inc. 10-K 08/28/2018%Note 4 Property and Equipment    Years" Buildings and improvements 3 to 40 Machinery and equipment 3 to 11 Leasehold improvements. &Lesser of Useful Life or Term of Lease$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hth\P8XL@=PF0*8X> @ l  *  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Note 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $4}  $                        !Kimball Electronics, Inc. 10-K 08/28/2018Product Warranties:             (Amounts in Thousands)~  ~  ~ 3 +Product Warranty Liability at the beginning~ F   ~ v   ~     of the year0 (Additions to warranty accrual (including~ j  ~ ~  ~  changes in estimates)-%Settlements made (in cash or in kind)~ ~ V~  B 0(Product Warranty Liability at the end of~ B ~ F ~  v  the year$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0~rfZf`~=PF0*8X> @           l  =  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } :}  $                         !Kimball Electronics, Inc. 10-K 08/28/2018 Note 6 Credit Facilities             ! Availability to Borrow at ! Borrowings Outstanding at ! Borrowings Outstanding at8 0(Amounts in Millions, in U.S Dollar Equivalents)  June 30, 2018   June 30, 2018   June 30, 2017# Primary credit facility (1) E@  ~   ~ * . &Thailand overdraft credit facility (2) @   -   - +#China revolving credit facility (3)@ -  - -%Netherlands revolving credit facility!@ffffff@  - ~  Totalfffff&O@ @~  * $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2ymaU2h3%f=PF0*8X> @              l  Q  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 6} $      !Kimball Electronics, Inc. 10-K 08/28/2018Severance Plans:          June 30 (Amounts in Thousands)~  ~ 5 -Changes and Components of Benefit Obligation:     / 'Benefit obligation at beginning of year~ B  ~ 6  Service cost~ ~  Interest cost~ ~ %Actuarial gain for the period~ ~  Benefits paid~ ~ .)!Benefit obligation at end of year~ ~ B&Balance in current liabilities~ ~ )!Balance in noncurrent liabilities~ f~ >.&Total benefit obligation recognized in~ ~ B'the Consolidated Balance Sheets$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/:aui]T9bXL$=PF0*8X> @      l  c  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $4} $      !Kimball Electronics, Inc. 10-K 08/28/2018Severance Plans:          June 30 (Amounts in Thousands)~  ~ - %Changes and Components in Accumulated   1 )Other Comprehensive Income (Loss) (before tax):.&Accumulated Other Comprehensive Income~ ~~ #(Loss) at beginning of year3+Net change in unrecognized actuarial (gain)~ F~  loss.&Accumulated Other Comprehensive Income~ ~ ~(Loss) at end of year$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6Kui]? `gF:=PF0*8X> @z      l  "v  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } a/}  $                         !Kimball Electronics, Inc. 10-K 08/28/2018Severance Plans:             (Amounts in Thousands) Year Ended June 30/ 'Components of Net Periodic Benefit Cost~  ~  ~   (before tax):  Service cost~   ~   ~ "  Interest cost~ ~ ~   *"Amortization of prior service cost - -~  r -%Amortization of actuarial (gain) loss~ j~ ~    /'Net periodic benefit cost recognized in~ ~ b~  b -%the Consolidated Statements of Income$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2Zui]p@=PF0*8X> @            l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Note 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 0.}  } $      !Kimball Electronics, Inc. 10-K 08/28/2018Performance Shares:         Number  Weighted Average   of Shares   Grant Date      Fair Value. &Performance shares outstanding at July~ $   Q&@ 1, 2017Granted~ v L2@Vested~ c&@ Forfeited~ Jp= #(@.&Performance shares outstanding at June~ 2!Q8,@30, 2018$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4_~rfZ}7W2=PF0*8X> @j        l  $S  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } %} $ $     !Kimball Electronics, Inc. 10-K 08/28/2018Note 9 Income Taxes         (Amounts in Thousands)~  ~  Deferred Tax Assets:       Receivables~ z  ~    Inventory~   ~  Employee benefits~  ~ Deferred compensation~ e~ !Other current liabilities~  ~ ^  Tax credit carryforwards~ ~  Goodwill~ > ~ 6'Net operating loss carryforward~ "%~ #Net foreign currency losses -~ .Property and equipment -~  Miscellaneous~ j%~ Valuation Allowance~   - Total asset~ V~  !Deferred Tax Liabilities:Property and equipment~  $-"Net foreign currency gains~ 2 $- Miscellaneous~ ~ Total liability~  ~ !Net Deferred Income Taxes~ ~ bD) l~rfZTK!bBD|# !"# $!____________________________1")Created by Morningstar Document Research.0#(http://documentresearch.morningstar.com/ <=PF0*8X> @J)##""!!       l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } *}  $                      !Kimball Electronics, Inc. 10-K 08/28/2018Note 9 Income Taxes              Year Ended June 30 (Amounts in Thousands)~  ~  ~   United States~ W  ~   ~   Foreign~ c  ~ r  ~ & +#Total income before taxes on income~ ~ ~~  " $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,|~rfZ @           l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } '}  $                               !Kimball Electronics, Inc. 10-K 08/28/2018Note 9 Income Taxes              Year Ended June 30 (Amounts in Thousands)~  ~  ~  Current Taxes:         Federal~ 2  ~ "*  ~ b Foreign~ :~  ~  b[  State~ .~ ~    Total payable~ ~ B~  ` Deferred Taxes:  Federal~ ^N~ ~  f Foreign~ ~ &~  .  State~ ~ ~   Valuation allowance~   -  - Total deferred~ J&~ 2~  ^ ( Total provision for income taxes~ ޵~ r~  X $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/> 0~rfZ @*%                 l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $4} $ }  } $}  $ } } $} $ }  } $      !Kimball Electronics, Inc. 10-K 08/28/2018Note 9 Income Taxes                       Year Ended June 30 ~  ~  ~  (Amounts in Thousands) Amount  %  Amount  %  Amount  %. &Tax computed at U.S. federal statutory~    <@ % ~   ~  % ~   ~  % rate1)State income taxes, net of federal income~ ~    ɿ ~ ɿ tax benefit%Foreign tax rate differential~  ~ "   ffffff! ~ *ffffff%3+Impact of foreign exchange rates on foreign~ ?~ n   ffffff ~   @ income taxes)!Foreign subsidiary capitalization - - -    - ~ Valuation allowance~  ffffff? -    -  - -Research credit~ ~     ~ 333333Deemed repatriation~ ~ z -    -  - -.&Revaluation of net deferred tax assets~ Dffffff#@ -    -  - - Other - net~ 333333~     ~ ?( Total provision for income taxes~ ޵LO@ %~ r   6@  %~ XL4@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/Dl~rfZ^4+ |T=PF0*8X> @r.                       l  \  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } U5}  $                              !Kimball Electronics, Inc. 10-K 08/28/2018Note 9 Income Taxes             (Amounts in Thousands)~  ~  ~ " Beginning balance - July 1~   ~    $- 4 ,Tax positions related to prior fiscal years:          Additions~ :  ~   ~   Reductions~  -  - /'Tax positions related to current fiscal   year: Additions - -  -  Reductions - -  -  Settlements - -  - ( Lapses in statute of limitations - -  -  Ending balance - June 30~ ~ ~   1)Portion that, if recognized, would reduce~ &~ V~   *"tax expense and effective tax rate$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<s ~rfZfBK/<#ZN&=PF0*8X> @ !                l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 6} $ } } $ } :      !Kimball Electronics, Inc. 10-K 08/28/20187/Financial Instruments Recognized at Fair Value:      Financial Instrument  Level ' Valuation Technique/Inputs Used Cash Equivalents ~  % Market - Quoted market prices5 -Derivative Assets: Foreign exchange contracts ~   2 *Market - Based on observable market inputs    1 )using standard calculations, such as time2*value, forward interest rate yield curves,80and current spot rates, considering counterparty credit risk-%Trading securities: Mutual funds held~ %Market - Quoted market pricesin SERP0(Derivative Liabilities: Foreign exchange~  2*Market - Based on observable market inputs contracts1)using standard calculations, such as time2*value, forward interest rate yield curves,3+and current spot rates adjusted for Kimball)!Electronics? non-performance risk$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/> 0nbVJ>#)W}UI==PF0*8X> @ l  o$  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } a/}  $                            !Kimball Electronics, Inc. 10-K 08/28/2018*"Recurring Fair Value Measurements:               June 30, 2018 (Amounts in Thousands) Level 1  Level 2  Total Assets      Cash equivalents~ .   $-  ~ . /'Derivatives: foreign exchange contracts -~ ~   -%Trading securities: mutual funds held~  -~   in nonqualified SERP"Total assets at fair value~ 2~ ~    Liabilities /'Derivatives: foreign exchange contracts $-~ .~  . 'Total liabilities at fair value $-~ .~  . $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8{ocWK%U'{(=PF0*8X> @             l  8  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } a/}  $                            !Kimball Electronics, Inc. 10-K 08/28/2018*"Recurring Fair Value Measurements:               June 30, 2017 (Amounts in Thousands) Level 1  Level 2  Total Assets      Cash equivalents~    $-  ~  /'Derivatives: foreign exchange contracts -~ J~  J -%Trading securities: mutual funds held~ v -~  v in nonqualified SERP"Total assets at fair value~ ڇ~ J~  "  Liabilities  /'Derivatives: foreign exchange contracts $-~ -~  - 'Total liabilities at fair value $-~ -~  - $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8{ocWK%U'{k=PF0*8X> @             l  .K  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)Foreign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } m)} $ } } $ } 2      !Kimball Electronics, Inc. 10-K 08/28/201880Financial Instruments Not Carried At Fair Value:      Financial Instrument  Level ' Valuation Technique/Inputs Used Notes receivable ~   0 (Market - Price approximated based on the    0 (assumed collection of receivables in the    . &normal course of business, taking into$account non-performance risk*"Borrowings under credit facilities~  2*Market - Based on observable market rates,0(taking into account Kimball Electronics?non-performance risk$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2maUI=Qo {=PF0*8X> @ l  ob  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not Carri Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } } 1}  $ } $} $      !Kimball Electronics, Inc. 10-K 08/28/2018#Foreign Exchange Contracts:                    - %Fair Values of Derivative Instruments* "on the Consolidated Balance Sheets  Asset Derivatives  Liability Derivatives    Fair Value As of    Fair Value As of(Amounts in Thousands)Balance Sheet LocationJune 30June 30  Balance Sheet Location  June 30June 30~ ~    ~  ~ 6.Derivatives Designated as Hedging Instruments:    "Foreign exchange contracts1)Prepaid expenses and other current assets~  ~ J   Accrued expenses ~  ~ f    -%Derivatives Not Designated as Hedging     Instruments:"Foreign exchange contracts1)Prepaid expenses and other current assets~  -   Accrued expenses ~  *~ ^Total derivatives~ ~ J    ~  .~ -$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<C vj^Rb1-?Jo~V=PF0*8X> @               l  yt  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $} $      !Kimball Electronics, Inc. 10-K 08/28/2018#Foreign Exchange Contracts:               / 'The Effect of Derivative Instruments on) !Other Comprehensive Income (Loss)     June 30 (Amounts in Thousands)   ~  ~  ~ 3+Amount of Pre-Tax Gain or (Loss) Recognized  2*in Other Comprehensive Income (Loss) (OCI)+#on Derivatives (Effective Portion):"Foreign exchange contracts~ N~ .   ~  .$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2Nvj^Rk>s$'=PF0*8X> @           l  '  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 7} $ } $} $ '     !Kimball Electronics, Inc. 10-K 08/28/2018#Foreign Exchange Contracts:               / 'The Effect of Derivative Instruments on      ) !Consolidated Statements of Income          (Amounts in Thousands)    Year Ended June 306.Derivatives in Cash Flow Hedging Relationships"Location of Gain or (Loss)~ ~  ~  5-Amount of Pre-Tax Gain or (Loss) Reclassified  3+from Accumulated OCI into Income (Effective Portion):"Foreign exchange contracts Cost of Sales~ B~ J  ~  "Foreign exchange contracts&Non-operating income (expense)~ ~   ~   Total~ ~ 6  ~    5-Amount of Pre-Tax Gain or (Loss) Reclassified  5-from Accumulated OCI into Income (Ineffective Portion):"Foreign exchange contracts&Non-operating income (expense)~  $-  ~    -%Derivatives Not Designated as Hedging   Instruments3+Amount of Pre-Tax Gain or (Loss) Recognized  !in Income on Derivatives:"Foreign exchange contracts&Non-operating income (expense)~ r ~ Z  ~  DN lvj^R#&l,=L% !"#$%&         7!/Total Derivative Pre-Tax Gain (Loss) Recognized!~ !b!!~ !! ! ~ ! !" in Income#$$____________________________1%)Created by Morningstar Document Research.0&(http://documentresearch.morningstar.com/Wx=PF0*8X> @2&&&%%$$""!!!!!! !!                 l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)Note 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $4} $      !Kimball Electronics, Inc. 10-K 08/28/2018:2Supplemental Employee Retirement Plan Investments:          June 30 (Amounts in Thousands)~  ~ (  SERP investments - current asset~   ~   0 (SERP investments - other long-term asset~ n  ~ r Total SERP investments~ ~ v+#SERP obligation - current liability~ ~  3+SERP obligation - other long-term liability~ n~ rTotal SERP obligation~ ~ v$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2k_SG;r0J=PF0*8X> @        l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee Retiremen Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $} $      !Kimball Electronics, Inc. 10-K 08/28/2018 Note 14 Accrued Expenses          June 30 (Amounts in Thousands)~  ~  Taxes~ +  ~ 2d   Compensation~ b  ~ z  Derivatives~ .~ -Retirement plan~ ~  Insurance~ ~~ JOther expenses~ *g~ XTotal accrued expenses~ ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4iymaU;1 =PF0*8X> @        l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued ExpensesNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } U}  $                                !Kimball Electronics, Inc. 10-K 08/28/2018&Note 15 Geographic Information             (  At or For the Year Ended June 30 (Amounts in Thousands)~  ~  ~   Net Sales:       United States~ Fd  ~ ڥ  ~ j  China~  ~ S ~  )  Mexico~ >)~ ~  N  Other Foreign~ ~ ~  % Total net sales~ nA~ 8~  2e3 Long-Lived Assets:  United States~ ~ #~  rE Poland~ v ~ ~  r  China~ J~ J ~   Romania~  /~ R~  f  Other Foreign~ >r~ ~   Total long-lived assets~ ~ ~  * $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@ Dsg[O#Rcc "=PF0*8X> @B(                  l  #  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic Information!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } :}  $ #                                 !Kimball Electronics, Inc. 10-K 08/28/2018"Note 16 Earnings Per Share            / '(Amounts in thousands, except per share Year Ended June 30 data) ~  ~  ~ - %Basic and Diluted Earnings Per Share:      Net Income~ ~ ~  >\ 3+Less: Net Income allocated to participating~ &~ >  -  securities6. Net Income allocated to common Share Owners~ ~ ~  >\  80Basic weighted average common shares outstanding~ ~ V~   .&Dilutive effect of average outstanding~ ~ ~   performance shares.&Dilutive effect of average outstanding~ ~   - deferred stock units4,Dilutive weighted average shares outstanding~ ~ *~    +#Earnings Per Share of Common Stock:  Basic)\(?? p= ף? Dilutedףp= ?ףp= ? RQ?  D lwk_Sra'uS5~-% ! " $ ____________________________1!)Created by Morningstar Document Research.0"(http://documentresearch.morningstar.com/ (=PF0*8X> @""" !!             l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 0} $      !Kimball Electronics, Inc. 10-K 08/28/2018=5Note 17 Accumulated Other Comprehensive Income (Loss)                 (Amounts in Thousands)0 (Foreign Currency Translation Adjustments  Derivative Gain (Loss)  Postemployment Benefits . &Accumulated Other Comprehensive Income         ! Net Actuarial Gain (Loss)  (Loss) Balance at June 30, 2016~ .i  ~   ~ b   ~ A 0 (Other comprehensive income (loss) before~ f+  ~ .  ~   ~ Z6 reclassifications+#Reclassification to (earnings) loss -~ J~    ~  2.&Net current-period other comprehensive~ f+~ v~    ~  0 income (loss) Balance at June 30, 2017~ ~ r~     ~  r   0(Other comprehensive income (loss) before~ ^'~ N~  f  ~  reclassifications+#Reclassification to (earnings) loss -~ ~    ~  V.&Net current-period other comprehensive~ ^'~  ~    ~  b! income (loss)Tax Reform impact (1) -~ ~     ~   Balance at June 30, 2018~ ~ 6~     ~  6$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/DIlh\PD8x(hK U<=PF0*8X> @1                           l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 0}  $ } +                                !Kimball Electronics, Inc. 10-K 08/28/2018=5Note 17 Accumulated Other Comprehensive Income (Loss)           0 (Reclassifications from Accumulated Other   ! Affected Line Item in the# Comprehensive Income (Loss)  Year Ended June 30 ) !Consolidated Statements of Income (Amounts in Thousands) ~  ~  " Derivative Gain (Loss) (1) ~ B  ~ J    Cost of Sales~ ~  + #Non-operating income (expense), net~ V~  , $Benefit (Provision) for Income Taxes~ F~    Net of Tax Postemployment Benefits:  -%Amortization of Actuarial Gain (Loss)~ "~    Cost of Sales~ ~ z~ " + #Selling and Administrative Expenses~ ~ & , $Benefit (Provision) for Income Taxes~ j~    Net of Tax  .&Total Reclassifications for the Period~ ~    Net of Tax$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@ Dh\PD87K!dVbVJ"=PF0*8X> @         l  .  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $4} $      !Kimball Electronics, Inc. 10-K 08/28/2018;3Note 18 Quarterly Financial Information (Unaudited)                  Three Months Ended3 +(Amounts in Thousands, Except for Per Share  September 30   December 31  March 31  June 30 Data) Fiscal Year 2018:        Net Sales~ Rt~ ~  T  ~   Gross Profit~ 0~ G~  >f  ~  dNet Income (1)~ ~ }~  N  ~  bZ Basic Earnings Per Share{Gz?ףp= ӿ = ףp=?   )\(?"Diluted Earnings Per Shareףp= ?ףp= ӿ ?   )\(?Fiscal Year 2017:    Net Sales~ N ~  ~  7  ~  ҹ Gross Profit~ J~ &A~  z$  ~  J Other General Income (2)~ n -  -    - Net Income~ *~ z~  ~  ~   Basic Earnings Per Share ףp= ?(\? 333333?   333333?"Diluted Earnings Per Share ףp= ?Q? 333333?   333333?$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/B Xj^RF:zP|2r?M)=PF0*8X> @4                           l  -CG  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial InfINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $ } $4} $ -     !Kimball Electronics, Inc. 10-K 08/28/201891Item 15 - Exhibits, Financial Statement Schedules     , $The following consolidated financial 3 +statements of the Company are found in Item " 8 and incorporated herein.    /'Management?s Report on Internal Control~  Over Financial Reporting/'Report of Independent Registered Public~ Accounting Firm.&Consolidated Balance Sheets as of June~ 30, 2018 and 2017-%Consolidated Statements of Income for~ 3+Each of the Three Years in the Period Ended June 30, 20180(Consolidated Statements of Comprehensive~ 1)Income for Each of the Three Years in the"Period Ended June 30, 2018-%Consolidated Statements of Cash Flows~ D ll`TH< [+f RG? !"#$%&'()*+,  1 )for Each of the Three Years in the Period!!!Ended June 30, 2018""""##0#(Consolidated Statements of Share Owners?~ #$$1$)Equity for Each of the Three Years in the%%"%Period Ended June 30, 2018&&&&''2'*Notes to Consolidated Financial Statements~ '()$*____________________________1+)Created by Morningstar Document Research.0,(http://documentresearch.morningstar.com/|Lg7=PF0*8X> @2,,++**    l  ;N\e  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } } $ } I; ;     !Kimball Electronics, Inc. 10-K 08/28/2018INDEX OF EXHIBITS     10.16 (a) / 'Form of Fee Deferral Election Agreement  8 0under the Kimball Electronics, Inc. Non-Employee  - %Directors Stock Compensation Deferral  2 *Plan (Incorporated by reference to Exhibit4,10.2 to the Company?s Form 8-K filed October%25, 2016, File No. 001-36454)ףp= W$@-%Amended and Restated Credit Agreement4,among Kimball Electronics, Inc., the lenders/'party thereto, and JPMorgan Chase Bank,/'National Association, as Administrative91Agent and Bank of America, N.A., as Documentation3+Agent (Incorporated by reference to Exhibit3+10.1 to the Company?s Form 8-K filed August$1, 2018, File No. 001-36454)21 (b)&Subsidiaries of the Registrant23 (b)0(Consent of Independent Registered PublicAccounting Firm24 (b)Power of Attorney31.1 (b).&Certification filed by Chief Executive5-Officer pursuant to Rule 13a-14(a)/15d-14(a),1)as adopted pursuant to Section 302 of the"Sarbanes-Oxley Act of 2002D lth\8Gh~3@f3U !"#$%&'()*+,-./0123456789: 31.2 (b) . &Certification filed by Chief Financial!!5!-Officer pursuant to Rule 13a-14(a)/15d-14(a),""1")as adopted pursuant to Section 302 of the##"#Sarbanes-Oxley Act of 2002$ 32.1 (b)(c)$6$.Certification furnished by the Chief Executive%%3%+Officer pursuant to 18 U.S.C. Section 1350,&&1&)as adopted pursuant to Section 906 of the''"'Sarbanes-Oxley Act of 2002( 32.2 (b)(c)(6(.Certification furnished by the Chief Financial))3)+Officer pursuant to 18 U.S.C. Section 1350,**1*)as adopted pursuant to Section 906 of the++"+Sarbanes-Oxley Act of 2002, 101.INS (b),,XBRL Instance Document- 101.SCH (b)-/-'XBRL Taxonomy Extension Schema Document. 101.CAL (b).4.,XBRL Taxonomy Extension Calculation Linkbase///Document0 101.DEF (b)030+XBRL Taxonomy Extension Definition Linkbase111Document2 101.LAB (b)2.2&XBRL Taxonomy Extension Label Linkbase333Document4 101.PRE (b)4,4$XBRL Taxonomy Extension Presentation555Linkbase Document67$8____________________________19)Created by Morningstar Document Research.0:(http://documentresearch.morningstar.com/: ]u&>dnBg;s=PF0*8X> @::9988 l  xw  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITS!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } U} $ } U      !Kimball Electronics, Inc. 10-K 08/28/2018 SIGNATURES     Signature   Signature    GREGORY J. LAMPERT *  COLLEEN C. REPPLIER * Gregory J. Lampert  Colleen C. RepplierDirectorDirectorGEOFFREY L. STRINGER *GREGORY A. THAXTON *Geoffrey L. StringerGregory A. ThaxtonDirectorDirectorTHOMAS J. TISCHHAUSER *CHRISTINE M. VUJOVICH *Thomas J. TischhauserChristine M. VujovichDirectorDirector$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>0{oc? O_+g3=PF0*8X> @ l  {  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)TABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $} $      !Kimball Electronics, Inc. 10-K 08/28/201880Schedule II. - Valuation and Qualifying Accounts                           Description  Balance at  Additions (Reductions)  Adjustments to Other  Write-offs and   Balance at   Beginning   to Expense  Accounts   Recoveries  End of  of Year                 Year (Amounts in Thousands)               Year Ended June 30, 2018   ! Valuation Allowances:   & Short-Term Receivables~ r~    ~  6~ ~ " Deferred Tax Asset $-~       $- $-~   Year Ended June 30, 2017   ! Valuation Allowances:   & Short-Term Receivables~ ~    ~  n $-~ r Year Ended June 30, 2016   ! Valuation Allowances:   & Short-Term Receivables~ ~    ~  ~ ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>.0maUI=BM5!Up=PF0*8X> @#                 l  /F  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $} U} 0.} } $ /     !Kimball Electronics, Inc. 10-K 08/28/2018TABLE OF CONTENTS        TABLE OF CONTENTS Page ~  DEFINITIONS AND USAGE~    ?  Definitions~    333333? Additional Definitions~ * ? Usage~ 6~  ,$SALE AND TRANSFER OF ASSETS; CLOSING~ 6@Assets to be Sold~ 6@Excluded Assets~ :ffffff@ Consideration~ >333333@ Liabilities~ B@ Allocation~ J@Closing~ R@Closing Deliveries~ Vffffff@Adjustment Procedure~ ^333333@Escrow of Escrow Amount~ f@Third Party Consents~ f~ 1)REPRESENTATIONS AND WARRANTIES OF SELLERS~ f@&Organization and Good Standing~ f @.&Enforceability; Authority; No Conflict~ jffffff @Ownership of Sellers~ j333333 @Financial Statements~ n @Books and Records~ nD lth\ 7 @2..--,,  l  2  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $}  } a/} } $ 2     !Kimball Electronics, Inc. 10-K 08/28/2018TABLE OF CONTENTS        TABLE OF CONTENTS Page     (Continued)  333333 @" No Material Adverse Effect~ ~   HzG @ Employee Benefits~ ~ \(\ @Compliance With Laws~ q= ףp @Legal Proceedings~ Q @-%Absence of Certain Changes and Events~  @Contracts; No Defaults~ Gz @ Insurance~ (\ @Environmental Matters~ ףp= @ Employees~ Q @"Labor Disputes; Compliance~  @$Intellectual Property Assets~ Gz @ No Options~ )\( @Certain Payments~ = ףp= @Customers and Suppliers~ RQ @*"Relationships with Related Persons~ ffffff @Brokers or Finders~ ~ /'REPRESENTATIONS AND WARRANTIES OF BUYER~ ffffff@&Organization and Good Standing~ @Authority; No Conflict~ 333333@Certain Proceedings~ D lth\ B@}0,~*iV !"#$%&'()*+,-./01  @ Brokers or Finders~  ~ !!PRE-CLOSING COVENANTS~ !!""ffffff@(" Pre-Closing Covenants of Sellers~ ""##@&#Pre-Closing Covenants of Buyer~ ##~ $$CONDITIONS TO CLOSE~ $$%%ffffff@/%'Conditions Precedent to the Obligations~ %%&&&of the Sellers''@/''Conditions Precedent to the Obligations~ ''(((of Buyer))333333@/)'Conditions Precedent to the Obligations~ ))***of Buyer and Sellers~ ++ADDITIONAL COVENANTS~ ++,,ffffff@, Employees~ ,,-.$/____________________________10)Created by Morningstar Document Research.01(http://documentresearch.morningstar.com/()TaTL }5=PF0*8X> @:1100//++$$!! l  5x  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $} U} =} } $ 5     !Kimball Electronics, Inc. 10-K 08/28/2018TABLE OF CONTENTS        TABLE OF CONTENTS Page     (Continued)  @ Taxes~    333333@- %Payment of Other Retained Liabilities~  @,$Restrictions on Sellers? Dissolution~ and Distributions@ Removing Excluded Assets~ ffffff@!Assistance in Proceedings~ @;3Non-competition, Nonsolicitation, Non-disparagement~ and Confidentiality333333@1)Customer and Other Business Relationships~ @Change of Name~ ffffff@ Bulk Sales~ q= ףp@)!Collection of Accounts Receivable~ {Gz@Further Assurances~ Q@)!Transfer of Environmental Permits~ (\@4,Local County Purchase Agreements; Transition~ Services Agreement~ "!INDEMNIFICATION; REMEDIES~ 333333 @Survival~ ffffff @,$Indemnification and Reimbursement by~ SellersD lth\ WQ!}+x"M~ !"#$%&'()*+,-./01234   @, $Indemnification and Reimbursement by~  !! !Buyer"" @'"Limitations on Amount - Sellers~ ""##!@%#Limitations on Amount - Buyer~ ##$$333333!@$Time Limitations~ $$%%ffffff!@%Third-Party Claims~ %%&&!@$&Procedures for Direct Claims~ &&''!@6'.Calculation of Damages; Treatment of Indemnity~ ''(((Payments))333333 @)No Double Recovery~ ))**Q8 @#*Exclusion of Other Remedies~ **~ +&+ TERMINATION~ ++,,333333"@,Termination Events~ ,,--ffffff"@-Effect of Termination~ --~ .*.GENERAL PROVISIONS~ ..//333333$@/Expenses~ //01$2____________________________13)Created by Morningstar Document Research.04(http://documentresearch.morningstar.com/.o W/N`=PF0*8X> @2443322..++ l  ,  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } U}  } 2} } $ ,     !Kimball Electronics, Inc. 10-K 08/28/2018TABLE OF CONTENTS        TABLE OF CONTENTS Page     (Continued)      ffffff$@Public Announcements~ $@Notices~ $@ Enforcement of Agreement~ %@#Waiver; Remedies Cumulative~ 333333%@Entire Agreement~ ffffff%@2*Assignments, Successors and No Third-Party~ Rights%@ Severability~ %@ Construction~ 333333$@Time of Essence~ Q8$@ Governing Law~ = ףp=$@&Alternative Dispute Resolution~ (\B$@Exhibits and Schedules~ HzG$@Amendments and Waivers~ L$@ Time Periods~ RQ$@Execution of Agreement~ ףp= W$@.&Appointment of Sellers? Representative~ ~ .CONFIDENTIALITY~ D# lth\ |XY8nhd  !"#$%&'()*+  333333&@. &Definition of Confidential Information~  !!ffffff&@2!*Restricted Use of Confidential Information~ ! !""&@" Exceptions~ " "##&@#Legal Proceedings~ ##$$'@-$%Return or Destruction of Confidential~ $$%%% Information&&333333'@!&Attorney-Client Privilege~ &&'($)____________________________1*)Created by Morningstar Document Research.0+(http://documentresearch.morningstar.com/ (xP=PF0*8X> @"++**)) l  f  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 0} $      !Kimball Electronics, Inc. 10-K 08/28/2018Additional Definitions   Term Section ?Acquired Assets? @  ?Agreement? Introductory Paragraph  ?Allocation? 2.5(a)$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*h{ocW?~rJ=PF0*8X> @ l  9#*  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } $4} $ 9     !Kimball Electronics, Inc. 10-K 08/28/2018Additional Definitions   Term Section ?Assumed Liabilities? 2.4(a) ?Balance Sheet? 333333 @ ?Base Purchase Price? ffffff@3+?Bill of Sale and Assignment and Assumption 2.7(a)(i) Agreement? ?Business?Recitals?Buyer Contact?11.2(a)!?Buyer Closing Documents?4.2(a) ?Buyer Group?5.1(a)#?Buyer Indemnified Persons?8.2(a)?Buyer?s Tax Contest?7.2(c)?Buyer?Introductory Paragraph ?Buyer Plan?7.1(e) ?Cap? @ ?Closing?@#?Closing Adjustment Amount?2.8(b)?Closing Date?@&?Closing Financial Statements?2.8(b)!?Closing Working Capital?2.8(b)"?Confidential Information?11.1(a)?Control Notice?8.7(b)Dgl{ocW?='m4X !"#$%&'()*+,-./012345678 ?Current Employees? 3.23(a)! ?Damages?!8.2(a)" ?Deductible?" @#?Disclosing Party?#11.1(a)$ ?Dispute?$10.12(a)"%?Earliest Initiation Date?% 2.7(a)(viii)&?Employment Agreements?& 2.7(a)(v)'?Escrow Agreement?' 2.7(a)(vii)-(%?Estimated Closing Adjustment Amount?(2.8(a)0)(?Estimated Closing Financial Statements?)2.8(a)+*#?Estimated Closing Working Capital?*2.8(a)*+"?Excess Vietcom Bank Indebtedness?+ 2.4(a)(vi),?Excluded Assets?,@-?FIRPTA Certificate?- 2.7(a)(vii).?GES Purchase Price?.2.5(a)%/?GES Holdings Purchase Price?/2.5(a)$0?GES Infotek Purchase Price?02.5(a)"1?GES Japan Purchase Price?12.5(a)#2?GES Suzhou Purchase Price?22.5(a)$3?GES Vietnam Purchase Price?32.5(a)45$6____________________________17)Created by Morningstar Document Research.08(http://documentresearch.morningstar.com/6}L#x5j;]%r=PF0*8X> @887766 l  98= D  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1) Base PayCash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } -} $ 9     !Kimball Electronics, Inc. 10-K 08/28/2018Additional Definitions   Term Section ?First Meeting?  2.7(a)(viii)% ?Fundamental Representations? !@ ?Indemnified Person? 8.7(a)?Indemnifying Person?8.7(a)!?Independent Accountants?2.5(b)?Interim Balance Sheet?333333 @?Independent Accounts?333333 @ ?JAMS Rules? 2.7(a)(viii)?Leased Real Property?ffffff@?Loan Payoff Amount? 2.7(a)(vi)-%?Non-Competition and Non-Solicitation 2.7(a)(viii) Agreements??Notice?10.12(a) ?Parties?Introductory Paragraph!?Proprietary Information?7.7(d) ?Pre-Closing Tax Return?7.2(b)?Purchase Price?ffffff@?Real Property Lease?ffffff@?Receiving Party? 2.7(a)(viii)?Restricted Period?7.7(a)?Retained Liabilities?2.4(b)Dl{ocW?|IyEPM !"#$%&'()*+,-./012345678 ?Securities Act? ffffff @!?Seller Contact?! 2.7(a)(viii)" ?Sellers?"Introductory Paragraph##?Sellers Closing Documents?#3.2(a)-$%?Sellers Fundamental Representations?$ @%%?Sellers Indemnified Persons?% @!&?Sellers? Representative?&Introductory Paragraph'?Sellers? Tax Contest?'7.2(c)(?Shared Tax Return?(7.2(b))?Survival Period?)8.6(a)*?Tax Proceeding?*7.2(c)+ ?Tax Grant?+3.14(o),?Tax Purchase Price?,2.5(a)-?Third-Party Claim?-8.7(a).?Transfer Taxes?.7.2(f)/?Transferred Employees?/7.1(a)'0?Transition Services Agreement?0(\@1?Union?13.24(b)2?U.S. Allocation?22.5(b)3 ?WARN Act?37.1(d)45$6____________________________17)Created by Morningstar Document Research.08(http://documentresearch.morningstar.com/6g.i5}KzT%=PF0*8X> @887766 l  T  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2)Cash Incentive CompensationStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 7} $      !Kimball Electronics, Inc. 10-K 08/28/2018Base Pay    1 )Donald D. Charron, Chairman of the Board,~ fC*  Chief Executive Officer. &John H. Kahle, Vice President, General~ G 4 ,Counsel, Chief Compliance Officer, Secretary6.Steven T. Korn, Vice President, North American~ > Operations0(Michael K. Sergesketter, Vice President,~ Chief Financial Officer-%Christopher J. Thyen, Vice President,~  New Platforms$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4}}qe5w?d=PF0*8X> @B   l  e  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayStock CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 7} $      !Kimball Electronics, Inc. 10-K 08/28/2018#Cash Incentive Compensation    1 )Donald D. Charron, Chairman of the Board,~ B,  Chief Executive Officer. &John H. Kahle, Vice President, General~  4 ,Counsel, Chief Compliance Officer, Secretary6.Steven T. Korn, Vice President, North American~   Operations0(Michael K. Sergesketter, Vice President,~  Chief Financial Officer-%Christopher J. Thyen, Vice President,~   New Platforms$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4vj^R"d,tQ=PF0*8X> @B   l  w  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock Compensation (1) SUBSIDIARIES OF THE REGISTRANTU } 7} $ }  } $      !Kimball Electronics, Inc. 10-K 08/28/2018Stock Compensation        LTPS Grant   (Shares Issued) (1)1 )Donald D. Charron, Chairman of the Board, ~   Chief Executive Officer.&John H. Kahle, Vice President, General~ ʢ4,Counsel, Chief Compliance Officer, Secretary6.Steven T. Korn, Vice President, North American~  Operations0(Michael K. Sergesketter, Vice President,~ Chief Financial Officer-%Christopher J. Thyen, Vice President,~  New Platforms6.(1) Shares have not been reduced by the number5-of shares withheld to satisfy tax withholding obligations.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/BoXsg[+kHXBnU1f=PF0*8X> @B   l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock Compensation SUBSIDIARIES OF THE REGISTRANTU } 7} $ }  } $      !Kimball Electronics, Inc. 10-K 08/28/2018Stock Compensation        LTPS Award   (number of shares)1 )Donald D. Charron, Chairman of the Board, ~ r  Chief Executive Officer.&John H. Kahle, Vice President, General~ 4,Counsel, Chief Compliance Officer, Secretary6.Steven T. Korn, Vice President, North American~  Operations0(Michael K. Sergesketter, Vice President,~ Chief Financial Officer-%Christopher J. Thyen, Vice President,~  New Platforms$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8Osg[+lIYCoVJ"=PF0*8X> @*   l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??L FORM 10K FORM 10K (1) SIGNATURES Customers Customers (1)Research and Development!Executive Officers of the Regis Market Prices!Issuer Purchases of Equity SecuPerformance Graph Item 6 Selected Financial DataBusiness Overview!Results of Operations Fiscal Ye!Results of Operations Fisca (1)!Results of Operations Fisca (2)!Results of Operations Fisca (3)!Results of Operations Fisca (4)!Results of Operations Fisca (5)!Results of Operations Fisca (6)!Results of Operations Fisca (7)!Results of Operations Fisca (8)!Results of Operations Fisca (9)!Liquidity and Capital Resources Cash FlowsContractual Obligations!Item 8 Financial Statements andCONSOLIDATED BALANCE SHEETS!CONSOLIDATED STATEMENTS OF INCO!CONSOLIDATED STATEMENTS OF COMP!CONSOLIDATED STATEMENTS OF CASH!CONSOLIDATED STATEMENTS OF SHAR!Goodwill and Other Intangible AConcentrations of Credit RiskNote 3 InventoriesNote 4 Property and EquipmentNote 4 Property and Equip (1)Product WarrantiesNote 6 Credit FacilitiesSeverance PlansSeverance Plans (1)Severance Plans (2)Performance SharesNote 9 Income TaxesNote 9 Income Taxes (1)Note 9 Income Taxes (2)Note 9 Income Taxes (3)Note 9 Income Taxes (4)!Financial Instruments Recognize!Recurring Fair Value Measuremen!Recurring Fair Value Measur (1)!Financial Instruments Not CarriForeign Exchange Contracts Foreign Exchange Contracts (1) Foreign Exchange Contracts (2)!Supplemental Employee RetiremenNote 14 Accrued Expenses Note 15 Geographic InformationNote 16 Earnings Per Share!Note 17 Accumulated Other Compr!Note 17 Accumulated Other C (1)!Note 18 Quarterly Financial Inf!Item 15 Exhibits Financial StatINDEX OF EXHIBITSSIGNATURES (1)!Schedule II Valuation and QualiTABLE OF CONTENTSTABLE OF CONTENTS (1)TABLE OF CONTENTS (2)TABLE OF CONTENTS (3)Additional DefinitionsAdditional Definitions (1)Additional Definitions (2) Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } 1} y#} $ } 8      !Kimball Electronics, Inc. 10-K 08/28/2018&SUBSIDIARIES OF THE REGISTRANT     % Jurisdiction of Incorporation 7 /Percent of Voting Stock Owned By the Registrant& Kimball Electronics Group, LLC Indiana  100%+ #Kimball Electronics (Thailand) Ltd. Thailand  100%- %Kimball Electronics Poland Sp. z o.o. Poland  100%.&Kimball Electronics (Nanjing) Co. Ltd. China 100% (LLC)'Kimball Electronics Tampa, Inc.Florida 100%( Kimball Electronics Mexico, Inc. Texas 100%1)Kimball Electronics - Mexico S.A. de C.V.Mexico 100%,$Kimball Electronics Netherlands B.V. Netherlands 100%*"Kimball Electronics Romania S.R.L.Romania 100%.&Kimball Electronics Indianapolis, Inc.Indiana 100%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/:sg[OJ-iF=PF0*8X> @ Root Entry FBook    !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~      !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~      !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~      !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMN